JAHAN MAMTA WAHAN DALDA…

By:Khawaja Umair Fazal 8968

Rao Aziz 9290Abdul Samad 6751

PREVIEWAD (Dalda) IntroductionExecutive SummaryMARKETING AUDITMarket StructureBrand PerformancePropositionPromotionPlacePricePackProductAD (Olive Oil)AD (Tullo)AD (Dalda ka Dastarkhwan)Market Segment and Product HierarchyGap AnalysisReferences

INTRODUCTION When ever ones hear the name of Dalda, quality and taste comes to

the mind of the person. These has been the traits of Dalda for more than 60 years in Pakistan, One of the pioneers of Banaspati ghee in the country.

Dalda is a brand of hydrogenated vegetable oil producer in Indi and Pakistan (South Asia). The raw materials were originally imported from Netherlands in 1930s by the trading company DALDA Limited. Initially was part of Hindustan Lever Limited which then decided to brand it. Dalda is one of the longest living brands in Indo Pak region.

Dalda has now become the leading Food FMCG company Pakistan beating the sales revenue records of Unilever and P%G, after Unilever Pakistan sold her Dalda brand to Dalda Foods (Private) Limited for Rs. 1.33 in Pakistan and is also leading the local category of Oil and fats. Dalda is the only brand in Pakistan which produces Banaspati Ghee (Hydrogenated Oils) which happens to be VTF (Virtually trans fats free), up to only 1% as compared to other brands that have about 20% that has less adverse affect on Blood lipids and Immune System.

Dalda is the largest selling brand in Pakistan and is marketed all over the country. The Company has two Brand ambassadors namely, Zubaida Tariq and Naheed Ansari.

Dalda Having there own recipe book named as Dalda Cook Book and having prime time television cooking program called Dalda ka Dastarkhwan.

Big Idea: Jahan Mamta wahan Dalda….

EXECUTIVE SUMMARYDalda are the pioneers' in the ghee and oil industry in Pakistan, have a growing category to deal with in the long run, factors such as increase in population is evident to prove that the industry has to increase to meet the demands, Dalda being market dominator has good penetration of 52-55% in the gee and oil segment, yearly consumption is 14Kg per capita and has loyal consumers as company is in existence for more that 60 years. Company provides strong proposal to her customers as compared to her customers and believe in the consumer insight as there premium quality benchmark. There are certain competitors in the segment but having their consumer expectation met each time, they achieve consumer value satisfaction relationship. They have good voice of share and frequently on air ads and have comprehensive integrated communication plan, effectively using TV ads, Radio, Print ads and having there own cooking show. There products are available on every stores in Urban areas which is there main segment. Having there own depots and warehouses, they use Indirect Marketing channel, having wholesalers, retailers and other intermediaries to distribute there products. They have attractive packs for the products that works well for them. They give importance to there basics especially 6 Ps and push and pull strategies. There products are top performers in their respective segments. They have an objective to grow 5 times in coming 5 Years.

MARKETING AUDIT

(DALDA)

MARKET STRUCTUREQ1:What are the Pakistan’s Socio-Demographic movements that affect

the brand?Ans: Pakistan Consists of 17 Million People of which about 35% Lives in Urban areas, of which 35 to 50% are teenagers and grown ups, about 55% Male and 45% Females approx, and with different age bands, unemployment rate households, it is a healthy segment to be captured as Living beings cannot live with out food and they have to cook for which they require gee or oil.

Q2:What are the Market growth indicators for the category your brand is in: give Value & Price.Ans: There is a per capita consumption of 14 Kg Ghee and Oil which is continuously growing that forces Dalda to hold this key Category.

Q3:What are the Market growth drivers for the category your brand is in?Ans: as the consumption of edible oil and ghee will always be there and population is continuously increasing and in addition to this there is a change in the trend of peoples way of living in urban areas people are more willing to eat outside so changes in pattern of living and continuous increase in population are the key growth indicators for the brand.

Q4:What is the Manufacturer’s current market share?Ans: Currently Dalda is the Market leader in the product category with more than 50% Market share, out of her share 80% is the ghee and 20% is the Cooking Oil ratios.

Q5:Give Detail of Recent launches by the company and its competitors in the category and their performance.Ans: recently launched Dalda Olive oil, also ran sufficient promotional and advertisement campaign of it, on her competitor's new launches Eva and Sufi launched Caped plastic bags of cooking Oil.

BRAND PERFORMANCELast YearQ6:What was the Brand’s market share (value/volume) last year

Ans: They are the Market Dominator and have market share approx 52-54% and have 4.1 million ton sales volume per annum and revenues of Rs. 720 Million last year.

Q7:What was the Brand share by segment (Volume)?

Ans:

Q8:Details of data if any for Penetration and loyalty

Ans: Dalda being a dominator has large number of consumers and are loyal to brand. No Specific data for last was available.

Q9:Detail of Brand share Vs competitors

Ans: 4.1 million ton is brand volume of dalda while its closes competitor Habib is having 1.5 million tons of market volume.

BRAND CATEGORY

MARKET SHARE

PREMIUM 0.3 MILLION TONS

MID 0.9 MILLION TONS

BULK 2.9 MILLION TONS

PROPOSITIONQ10: What is the brand’s “Brand positioning”?

Ans: Jahan Mamta wahan Dalda is there Big Idea and also serves as slogan and they position there products on Quality and taste.

Q11: What are the brand’s Category Drivers (those factors in the category that have potential to Deliver growth for the brand)?

Ans: continuous increase in population and change in trend of people way of living are the key growth indicator as population is continuously increasing and people in urban areas are now preferring more to eat out side which shows that there will always be increasing demand for oil and ghee.

Q12: What Brand Health indicators are used by the company?

Ans: Retail Audit, secondary information in the market, Continuous research, capturing consumer insights and customer visits. They have a customer tracking system that enables them to deliver best product and value to consumer.

Q13: Detail of Communications analysis if any done by the company.

Ans: They have a very comprehensive integrated communications plan, e.g. (Last year, Dalda Launched Olive Oil and its Communication was very well planned through use of effective media and communications channels such as they on aired 40 sec ad and use print media such as newspapers and Cooking Magazines, Radio and Pr Campaign through there Brand Endorsers. They also use another of there Product “Dalda ka Dastarkhwan” to show case their new launch and also advertised through cooking programs.

Q14: Please give data of performance of new innovations by the brand during last 2 years.

Ans: Last year Dalda Pakistan for seeing the potential of Olive Oil launched Dalda Olive Oil in Pakistan, Dalda Cook Book and also reintroduced Dalda Ka Dastarkhwan.

PROMOTIONQ15: Data of Brand Communication Awareness over time?

Ans: dalda frequently remain in touch with its customer through media and make a recall when its sale are declining and also reduces its prices on occasion like Ramadan and eid-ul-azha

Q16: Brand Share of Total Brand Communication Awareness vs. Competitors

Ans: Competitor close to dalda is Habib and they spend approx Rs. 150 Million, though they have more Ad time on air as compared to Dalda.

Q17: Brand’s Advertising Quality & spend

Ans: Dalda allocates Rs. 100 – Rs. 125 Million for the Advertisements, they effectively use TV, Radio, Print media for there brand advertisements.

Q18: Share of Voice ratios for the brand last year

Ans: Not available for 2008-09

PLACEQ19: Data for Retail Shares by Channels like retail/wholesale

Ans : Dalda has it own distribution network and they supply it to the retailers directly and even on a small scale dalda provide loose oil to customers mainly in low class areas which only amounts to 5% of revenue .

Q20: Availability (Distribution Quality) data..

Ans: Figures were not told but channel figure was given, Factory to Dipu to Distributer to Retailer and then finally to consumer.

Q21: Stocking (Out of stock) in the market during last year

Ans : No there was no stocking out during the last 2 years

PRICEQ22: Detail of Perceived vs. Actual Price of the brand

Ans: Customer has a perception of the price, the quality of Dalda is higher than they actual pay for it because Dalda is a Premium Category Brand . As compared to High International Market prices, Dalda charges less but the quality is at par as any International premium brand. So when ever the customer buys dalda he/she will go extra mile for the Quality Dalda product.

Q23: Detail of Price positioning of the brand in the category

Ans:Dalda falls in the preium category so it charges a bit more than the other because it provide the far supirior quality in term of it price.

Q24: Price segment growth data for brand and competitors

Ans: Not answered

Q25: Percentage of sales made on promotion/incentives during last year

Ans: Not answered

Q26: Price Elasticity's for the brand

Ans: Increase in price by 10% would result in 8-10% decline in sales in term of volume while if price are reduced by 10% the increase volume is 12-15%

PACK

Q27: Details of any Packaging tests etc done over time

Ans: Recently Dalda Foods have repositioned their packaging, for Dalda Cooking Oil there logo is a Soybean and sunflower and for Dalda Cooking oil there is a Date Tree. A strong Tin packaging to ensure the top quality of the product.

Q28: Detail of brand’s Pack attributes vs. Competitors

Ans: mainly dalda has a first mover advantage it normally changes the packaging but Eva was the first to launch the pouch with cap which dalda is also going to introduce in Ramadan while Sufi is to follow.

PRODUCTQ29: Detail of Product/ingredients Performance over time

Ans: Dalda`s main products are;

1. Dalda Cooking Oil

2. Dalda VTF Banspati Ghee

3. Tullo Banspati Ghee

4. Dalda Olive Oil

5. Manpasand Banspati

6. Pride Cooking Oil

7. Bulk Drums of Ghee and Oil

A part from range of cooking oil and Banaspati ghee they also have products such as Dalda Cook book and Dalda ka Dastarkhwan (Cooking Show).

Dalda`s main raw materials are Canola, sunflower seeds, olive oil, Soya bean Oil and Palm oil. With added features of Vitamin A, D and E.

Q30: Detail of product/ingredients comparison vs. competition.

Ans: Dalda is a main player in Karachi and Hyderabad while is easily available around Urban areas in Pakistan, having main competitors in Peshawar named “Shama Oils and Ghee”, Rawalpindi and Islamabad “Lateef Oils and Ghee”, Lahore “Sufi”, Quetta “Hayat”, Faisalabad “ Kashmir” e.t.c

There are two types of Oil; Blended Oil (Mixture of Two or more main ingredients,

e.g. Pride) Pure Oil

For Raw materials, most have the competitors have more or less same suppliers and ingredients such as Canola Oil, Sunflower seeds, cotton seeds Soya bean Oil and Palm oil.

AD TIME

AD TIME

AD TIME

DALDA ka Dastarkhwan

PRODUCT HIREARCHY ACCORDING TO SEGMENTS

PREMIUM

MID

BULK

Note: Previously TULLO was a Premium Segment product,but Dalda decided to tap the Bulk market segment with it.

In Business and Economics, gap analysis is a tool that helps a company to compare its actual performance with its potential performance. At its core are two questions: "Where are we?" and "Where do we want to be?”

Gap Analysis of DALDA.

Dalda is basically the dominator in the premium edible oil and ghee. They want the sustainable growth not only maintaining their position but what to extend it further currently dalda is holding 52% of market of premium edible oil and they are planning to grow 5% *2 in the next two years

Price As dalda falls in premium category of edible oil and ghee and market

price of dalda is relatively a bit high than of its competitor Habib Oil, Eva or Sufi, Dalda need to lower its price by 8% on 2.5 & 5 liter tins and pouches and 4% on all other weighing at least I liter to capture the share of competitors. Because it will not only increase the purchasing capacity of the consumer but would also grab the consumer from customer and this could really increase the revenue and market share. 

Current price: Dalda 5 liter Tin Rs, 720, 2.5 Tin Rs 350 E.t.c.

GAP ANALYSIS

Place Dalda is a well known brand and most of household consumer and local

restaurants called “Dhabas” are aware of its name and quality and yet Dalda is not easily available in areas like lee market ,liyari ,pahalwan goth, mawach goth and some other regions in Karachi and also Dalda is not yet been marketed in rural areas where most of our population reside and Dalda also need to make it available in northern areas where they are penetrating with there flanker Dalda need to use the service of mobile oil to deliver the oil to customers at there homes. And also introduce the online order purchasing System for customers and consumers.

Promotion

As Ramadan is Approaching and there will rush for pakoras samosas and all this fried stuff so Dalda can easily capture market by introducing economy Ramadan pack with Ramadan promotion of 5+1 on liter pouch or they can associate them selves with and vermicelli and spice and deserts company and they can start giving free chat massala and continue it till Eid-ul-Azha with the Different recopies mix. They can start giving half kg of dates pack to customer purchasing at least 5litre of oil. 

Positioning

Dalda positioning is phenomenal it says “Jahan Mammta wahan dalda” but still positioning of dalda is as premium oil which is expensive and so it need to restate it as “Mother is every where”.

Packaging In urdu there is marketing term called “jo dikhta hai who bikta

hai”.means product first impression is it packaging this is where customer first get exposed to product and if the packaging of the product is good it will delight the customer and in case of dalda packaging need to be changed because all companies in oil industry are following similar packaging introducing oil buckets of plastics for 5 liter or above and they can introduce small pack of ½ liter because dalda is not tapping this market and they introduce the low unit packaging for rural areas because the 65%of population live in village and still only 15% of them are using the branded oil. 

Product

Dalda need to change the smell of its oil in Punjab because over there the population is highly dense and the people eat much more than people in any other province but they like the food cooked in desi ghee or even the smell of desi ghee dalda can introduce the dalda desi ghee to cater that market and the people. Because in Punjab local oil and ghee manufacture are sharing more than 70% of Lahore and Faisalabad market.

Line Stretching

Dalda can introduce the downward stretching by introducing the new product like “Dalda Regular” to capture the market which are still untapped or capture by the other brand because has a credible name and by introducing it people would like to switch to dalda because they see reliability and quality assurance in it and it can easily capture the market of others competitors such as Eva, Kisan, Meezan, Sufi and etc.

 

Acquisitions and Mergers

Dalda was the largest FMCG Company in Pakistan in terms of turn over last year and continuously repeating the same this year up till now. Dalda has resources and also capable of acquiring the small companies that are reaping profits where dalda has not reached yet it can purchase them this will not only add to asset but also increase in profits and market share of volume. Because some time these “chotas” comes up with something great and provide threat to the leader and dominators so in order to eliminate them just dalda can do one thing is to buy them at premium and make it their either the flanker or downward line stretching.

Extended Credit Time.

  The dalda right now is providing the oil only on cash basis and some time on the basis of 2/7 and 10/30 this make the shop keeper a bit reluctant to purchase more of dalda where the competitors are even allowing the month credit which enables a shop keeper to have frequent use of cash to some other purpose and it make the retailer to feel a bit and he buys more of competitors and uses the push strategy on that product just. So dalda should provide at least 20 to 25 days of credit line so that the retailers feel it easy to buy in bulk more then they were previously.

Outsourcing of distribution channel.

Dalda has its own distribution network which is costly as they are using logistics of their own they can save on it by out sourcing it to distributors who are skilled and have knowledge of market because it save cost and time both and this money can lower expenses so they can lower their cost by maintaining the same profit margin and once prices are down the sales will definitely climb.

Diversification

Dalda is also making blue brand margarine for Unilever it can also launch the margarine under its own name as it already has the plant and there will be no additional cost of capital items but need to spend heavily to promote it.

A Typical Gap Analysis Graph

REFERENCE

www.dkd.com.pk www.google.com.pkwww.youtube.comwww.marketingteacher.com

THANK YOU

THE END