Marketing at Dalda: Final Project of Marketing

Download as pdf or txt
Download as pdf or txt
You are on page 1of 36

MARKETING AT DALDA

Final project of Marketing

Submitted to:

Ma’am Tahira

Submitted by:

Haider Nadeem FA17-BBA-011

Kanza Gaba FA17-BBA-215

Ayesha Abdul Kareem Fa17-BBA-188

Ahsan Khalid Fa17-BBA-021


Contents

Acknowledgement.......................................................................................................................................2

Executive Summary.....................................................................................................................................3

LEVER BROTHERS IN PAKISTAN....................................................................................................................4

Dalda’s History.............................................................................................................................................5

Company Marketing Department Hierarchy................................................................................................7

Business Portfolio........................................................................................................................................9

Actual Product.......................................................................................................................................10

Augmented Product...............................................................................................................................10

Product Life-Cycle Stages...........................................................................................................................11

BOSTON CONSULTANCY GROUP MODEL (BCG MATRIX)............................................................................12

SWOT Analysis...........................................................................................................................................12

Strengths:..............................................................................................................................................12

Weaknesses:..........................................................................................................................................13

Opportunities:.......................................................................................................................................14

Threats:..................................................................................................................................................14

Internal and External Factors Effecting The Performance..........................................................................15

Internal Factors:.....................................................................................................................................15

External Factors:....................................................................................................................................16

Customer Driven Marketing Strategy.........................................................................................................17


MARKET SEGMENTATION......................................................................................................................17

TARGET MARKET....................................................................................................................................18

PRODUCT POSITIONING............................................................................................................................20

Marketing Mix...........................................................................................................................................20

PRODUCT...............................................................................................................................................21

Product Classification............................................................................................................................21

Product Quality......................................................................................................................................21

Product Features...................................................................................................................................21

DALDA........................................................................................................................................................24

Pricing Strategy......................................................................................................................................25

FIELD FORCE..............................................................................................................................................28

Conflicts with the Distributor.................................................................................................................30

Levers Distributorship Process...............................................................................................................31

Competitive Analysis and Advantages Over Competitors:.......................................................................31


Acknowledgement
While preparing our project we had to take help from our fellow friends, some marketing
managers of Dalda company and they deserve our deepest and utmost gratitude. Completing this
assignment has given us a lot of pleasure, we would like to show our gratitude to Ma’am Tahira
Umair for teaching us this brilliant subject and the way she had taught us was very great, she
gave us good guidelines for this project and provided us with numerous consultancy. We would
also like to expand our gratitude to all those who have directly and indirectly helped us in
completing this project.

A bunch of retail outlets and malls were visited to check how Dalda has displayed their products
and how they are promoting their products in store, we also saw and evaluated the
advertisements and benefits derived by the customers for the various products that Dalda is
giving out in the market.

We would like to expand our gratitude to Mister. Chaudhry Mohammad Basharat(Group


Marketing Manager) and Mr. Shezad Khan (Brand Manager), with whom appointments were
arranged to gather all the information.

Further research was done by looking at the Marketing concepts provided in our book namely
“Principles of Marketing”.  
Executive Summary

The Report includes and explains about the following things:

1. Dalda being a part of Lever Brothers which is now a part of Uniliver


2. The history of Dalda
3. Companies Business portfolio including Lever brother’s product and Dalda’s Products
4. All about Dalda, including their oil, banaspatti ghee and their tea whitner
5. Dalda’s Marketing Mix, including their price, place, promotion, and product.
6. Explains the internal and external factors that are affecting the brand positioning of Dalda
7. SWOT analysis of Dalda
8. Distribution channels of Dalda
9. Advantages that Dalda has over its competitors
10. Dalda’s Competitors analysis

LEVER BROTHERS IN PAKISTAN

Lever Brothers Pakistan Limited (LBPL) was incorporated in Pakistan in 1948 and work started
in the present factory in Rahim Yar Khan. Dalda Banaspati was the product from that factory
followed by Lux soap in 1954.
LBPL pioneered the business of processed animal and poultry in Pakistan in 1960. However due
to immense difficulties, the business had to be closed down in 1980.

Surf, first of the non-soapy-detergent powder was introduced in 1963. It was produced by
Futehally Chemicals (Pvt.) Ltd.

The present Karachi Edibles Factory was acquired from A&B Oil Industries Ltd. Modernization
of the factory has been a continuing process.

The head office shifted to Karachi in 1966.

LBPL moved into the personal product business in 1981. Further diversification on the foods
side has taken place with the introduction of margarine and cooking oils. They have a seeds
business, an industrial detergent business, and an ice cream business.

Unilever had acquired Lipton’s business worldwide. In Pakistan Lipton merged with LBPL in
1984. Legal merger became effective in 1989.

Dalda’s History
On 30 March 2004, Unilever Pakistan accepted the offer of Rs. 1.33 billion for the sale of its
"Dalda" brand and related business of Edible Oil and Fats to newly incorporated company Dalda
Foods (Pvt.) Limited. Its a one-of-its-kind corporate transaction in Pakistan, in which a group of
6 senior Unilever Executives formed a management group and successfully purchased the Dalda
business from Unilever Pakistan. This was achieved under the banner of a newly formed
company DALDA FOODS (PVT.) LIMITED with the support of key financial institutions and
Pakistan's biggest edible oil importer Westbury Group.
Mission and Vision

Shareholding in Dalda Foods (Pvt) Ltd. By virtue of the transfer, DFL Corporation (Pvt) Ltd had
acquired control of Dalda, assets and liabilities of the new group was the same as was before the
reorganization and the shareholders of the Dalda have the same absolute and relative interests in
the net assets of the new group as was before the said reorganization All the shares of DFL
Corporation (Pvt) Ltd are held by its directors. Over the years company has grown at a fast pace
with last year’s revenue over PKR 29 bn. Company’s growth path has combined organic growth
as well as increasing through acquisition and diversifications. Dalda Foods is presently operating
in three foods sectors – edible oils and fats with its iconic brands like Dalda, Planta, Manpasand,
Tullo, Bisco, Cremo, etc.; in the dairy and related sector with its brand Cup Shup in the tea
whitener segment and in the snacks sector through its brands Knock Out, Bash, Nimko, etc.
Further growth and diversification in other related food sectors is also planned. Now Dalda is
going to grow from strength to strength and reaching high peaks in the end of the edible oils and
fats category, the Company launched Manpasand brand in 2006 to accommodate to the needs of
the bulky middle segment of the market. Since then. Until now Manpasand has grown
successfully in Market and improving its position market. Tullo, is also another famous food
brand of the country was added to the portfolio of Company’s edible oils and fats brands when
majority shareholding (86%) of Wazir Ali Industries Limited, a well-known and established
company in the industry was attained in 2007. Tullo has been nurtured back to full health and has
made a successful and dramatic turn around to become one of the fastest growing and strong
brands in the edible oils and fats categories. Wazir Ali Industries Limited continues to operate as
a subsidiary of Dalda as independent entity. After success in other brands and keeping the needs
of the top end of its market and fill a gap in its portfolio of brands, the DALDA Company has
successfully launched Dalda Olive Oil brands in 2007. They are sourced, administered and
packed in Spain to Dalda Food’s demanding requirements with addition of extra vitamin A and
D. Since 2005, the Company is also exporting its Dalda brand edible fats to UK, Canada and
USA to meet the food quality standards of these countries and fulfilling the needs of the
Pakistani living outside the country.

Origin

Dalda Foods was incorporated in July 2004 as a private company in Pakistan to obtain and
manage the businesses linked to Dalda and other food brands which were spun off from Unilever
Pakistan Limited. The office of Dalda Company is situated at F-33, Hub River Road, SITE –
Karachi and it has facilities of manufacturing.

Vision

To create a healthy and a bright future for the generations.

To share our knowledge with people around the globe.

To become consumer’s most trusted brand.

Mission

Deliver satisfaction and quality to our consumers using state of the art technology.

Offer a work environment that inspires trust and loyalty.

Engage in continuous efforts to explore horizons in our business.

Company Marketing Department Hierarchy


Marketing department hierarchy showcases are assorted departments which corporation
incorporates in their system for marketing segmentation of their company. Dalda arranged its
entire marketing staff under these departments by company professionals depending on the
ability, experience and expertise and most importantly on the designation of their staff members.
Marketing department hierarchy of Dalda broadly categorize into five departments.

National Marketing Department

Zonal Marketing Department


State Marketing Department

District Marketing Department

Field Marketing Department

National Marketing Department

This is the top most department in the Marketing department hierarchy. Their duties involved to
distribute and marketed country wide. Their core duties are craft, manage and assign marketing
strategies of the company. Jobs titles for national marketing department include in Dalda.

National Marketing Manager

Marketing President

Chief Marketing Officer (CMO)

Marketing Vice President

Zonal Marketing Department

This is the second department in Dalda marketing hierarchy. They are responsible of the state
marketing teams working beneath them. Their jobs profile includes.

Zonal Marketing Executive

Assistant Zonal Marketing Executive

Marketing Administrator

Marketing Supervisor

Senior Marketing Manager

State Marketing Department

They are the leader of the particular state in the marketing department hierarchy. Zonal
marketing department are their heads. Jobs profile for regional marketing include.

State Marketing Manager

Marketing Commissioner
Marketing Branch Manager

Assistant Marketing Branch Manager

Senior Marketing Consultant

District Marketing Department

These professionals in the company work under the state marketing department. Every state has
district so that they are their district heads. Their jobs profile include.

District Marketing Manager

Marketing Specialist II

Marketing Consultant

Junior Marketing Consultant

Marketing Advisor

Field Marketing department

This is the lowest level department in marketing department hierarchy. They have even minimal
or even zero experience in their field. A particular territory assigned to these professional and
they work accordingly. Their jobs profile include:

Senior Marketing Analyst

Marketing Team Leader

Marketing Mentor

Junior Marketing Analyst

Marketing Associate

Marketing Representative

Business Portfolio
 Banaspati
 Cooking Oil
 olive oil
 Snacks
 Tea Whitener
 Product Classification
 Dalda VTF Banaspati
 Dalda banaspati ghee
 Dalda Cooking Oil
 Planta Cooking Oil
 Dalda Canola oil with Vitamin power
 Dalda olive oil
 Dalda olive oil extra virgin
 Dalda olive oil pure
 Dalda olive oil pomace
 Dalda sunflower oil
 Dalda Lajawab
 Manpasand
 Manpasand banaspati
 Manpasand cooking oil
 Snacks Knock out
 Tea Whitener (Cup Shup)

Brand named with Snacks as knock out with five variants of potato was successfully launched in
2017. Different products include corn based and nimko based variants are also planned to be
introduced in the latter part of 2017.

Dalda Foods successfully launched one of its famous brand of tea creamer in 2015 brand named
Cup Shup. With very short span of time Cup Shup has recognized itself as a fastest growing
brand, already exceeding 6% market share.

Actual Product

Dalda cooking oil: Good quality cooking oil for health conscious consumer with attractive
yellow green tin with soya bean symbol, vitamins A, D and E added.

Dalda Banaspati Ghee: ghee in yellow tin packaging with palm tree symbol.
Dalda sunflower oil: light oil for the extra-health conscious consumer

Planta cooking oil: ghee flavored cholesterol-free oil for health conscious consumers. Has a
bright blue yellow and green packaging

Dalda Lajawab : Its an emulsified vegetable oil for health conscious

Easy to open tins packaging applies to all the oils and ghee products.

Augmented Product

ODF products have little augmented features as repeated buying and short-term use characterize
their consumption. However, the following are available for all the products:

Easy availability due to efficient distribution network.

Warranty assured due to the fact that a company of international repute makes the product.

Other than cooking needs other nutrients such as vitamins A, D and E and mineral calcium are
supplied by these products.

Dalda Cooking Oil: Has vitamins A, D and E, light consistency.


Dalda Banaspati: Has a low content of trans-fatty acids (0-5%) and also contains less Poly-
unsaturated .

Product Life-Cycle Stages

All of the products in the ODF division face different life-cycle stages and understanding where
each product stands is essential for the formulation of correct strategy. These are the standings:

Dalda Banaspati Ghee: Low growth, Mature product, segment may be drying up.

Dalda Cooking Oil: Near maturity, Medium growth. Still viable

Dalda Sunflower Oil: High growth possibilities in a small market. Current situation not
encouraging.

Planta Cooking Oil: Medium growth, still possibility of further growth.

Dalda Lajawab: Introductory stage, possibility of rapid growth.

BOSTON CONSULTANCY GROUP MODEL (BCG MATRIX)

Dalda is a cash cow and the other LBPL brands are milking resources from it.
The entire product range alone accounts for 30 % profitability of the firm.

Dalda Lajawab is a dog .

Planta is a star.

Dalda sunflower oil is a question mark.

SWOT Analysis
Dalda Foods Limited has been one of the oldest and most trusted food brands of the country. It
has been around for over 80 years and the reason for that are taking command of their strengths,
reducing their weaknesses, looking for new arising opportunities and making them their own
strengths and steering clear of their threats to avoid any kind of mishap. We will be discussing
their strength weaknesses, opportunities and weaknesses or in short doing a SWOT analysis.

Strengths:
Pricing Power: Customers will usually stop buying a product and switch to some other product if
they start charging higher prices, but in Dalda’s case they have pricing power, that means that
even if they start charging higher prices for their products, customers will not shift to some other
product. Pricing power has and easily defendable qualitative factor, so competitors will have a
difficult time overcoming it if Dalda decides that they want to charge higher prices.

Supply Chain: Dalda has a very strong supply chain which helps them obtain the right sources
from the suppliers and the right product to customers in a timely manner. They do this by doing
the following things:

Multiple sourcing: Dalda does not rely on a single supplier. It is because of the uncertain
situations in Pakistan that Dalda has more than one supplier and the contribution of work is
between the suppliers, distributed on their available capacity to supply and their performance.
This also keeps the company’s secrets confidential.

Relationship with suppliers: Dalda has built relationship with their suppliers. Sometimes
suppliers give Dalda extra benefits like long credits, delivery before due date and innovative
ideas.
On time delivery: The relationship with suppliers is so strong that Dalda has never received a
supply that is late.

Technology: Dalda uses oil extraction and oil refinery machinery which is maintained after every
4 months and these machineries are much better then what their competitors use.

Customer loyalty: Dalda’s product have a very high customer loyalty, the customers who have
been using their products have blind faith in the products and they do not like to buy other
products.

Fat free: In their Banaspati category Dalda is the only one in the whole Pakistan that provides Fat
free ghee and oil. It is also the only Pakistani ghee that is accepted in the whole Europe.

Weaknesses:
Packaging: Dalda has not changed its packaging since a long time, customers get bored for
buying the same thing with the same package again and again. Although they did introduce a
new and innovative smart bottle type packaging, they still not remove or replace the old one, so
Dalda should try to improve their packaging.

Customer Service: Dalda does not directly have any relation or contact with their customers, so
they are unable to know what their customers’ complaints are, and this causes them to lose their
customers without even knowing why they are shifting to other competitors.

Lack of R&D: Dalda has been given out the same product for a lot of years now. They do
sometimes introduce a new packaging like their bottle packaging and the fat-free Banaspati, but
their products are still the same for a long time, they need to improve their R&D so they can
produce oils and ghee that satisfy the current customer needs.

Centralized Decision making: Orders come from the head office to adapt what strategies and
which suppliers to ask the material from, sometimes it happens that the suppliers provided by the
head office are not up to the mark or they create trouble for the branch.

Opportunities:
Online marketing: Dalda does not do online marketing yet, they do not have a website from
where their customers can contact them. What Dalda should do is that they should make a
website from where their customers can purchase their products and get a home delivery and
contact with them.

New Products: Dalda should invest in its R&D department to introduce new products in the
market, and the products should be in line with the customer demands like getting low fat
products.

Fat free Banaspati: This product was launched by them but market is still unware of it due to low
advertisement campaigns. This product can get very popular as people are looking for products
that have low fat.

Threats:
Different oils are being sold in the rural market at a low rate, this is causing Dalda to lose in
sales.

The people of Pakistan are moving to a fat-free trend, although Dalda has made a new product
that is fat free but still it is only one product. If they do not do something about this issue, then in
the near future they will start losing even more sales.

The overall market of oils is at a declining rate. This is one of the biggest threats to the market of
Dalda.

The last are Dalda’s competitors like,

Sun cooking oil

Harpal cooking oil

Super Habib cooking oil

Conolive premium canola oil

Sufi cooking oil

External and internal factors affecting the brand positioning


Internal and External Factors Effecting The Performance

Internal Factors:
Operational and organizational factors: Dalda’s operational and administrative department has
kept organized and accurate records. Their supply of products to the markets have always been
on time and they have never been late in getting their items on the shelves of the stores. This is
why the customers see them as reliable and it has never happened, well according to them, it has
never happened that a certain customer comes to buy their oil and they do not get it.

Centralized decision making: Dalda has a centralized decision making system, this makes the
managers at the branch overburdened, the managers are not allowed to exercise their own powers
if they are in anyways conflicting to the decisions of the head office. E.g. The manager told us
that a person was told to be employed in our branch by the head office, he did not work at all but
we had to pay him and we could not fire him because this was a decision made by the head
office.

Innovation: Dalda has invested in their R&D but not enough. They were able to successfully
launch the Fat free Banaspati ghee and it is the only Banaspati ghee from Pakistan that is
accepted in Europe. There is also a problem with their R&D and that is that they have not
changed their packaging since forever. They have kept on the customers the same box packaging
and sometimes the customers get bored of it, and they will shift to some other product if it
catches their eyes. Another problem with their box packaging which has the oil being contained
in the packets is that sometimes they are soaked in oil or leaked, so they should try to be
innovative in this area too.

Customer Relations: The Dalda foods does not have any direct relationship with their customers,
they do give out the recipe books and “Dalda cook book” in their website but they do not have an
option for the customer to contact them on their website, this affects the brand position in the
mind of the customer, they think that they do provide the good quality product but they don’t
want to listen to our ideas if we have for them, or if the retailer is not keeping the packaging of
the Dalda product in a good shape.
External Factors:
Government Regulations: The government of Pakistan will impose higher duties on edible oil
imports to shed more than two billion dollars of import bills and instead encourage the people to
produce more canola and other oil seeds crops to meet local demand. This will cause the prices
of oils to increase especially of the oils in which Dalda uses canola and the other oil seeds. The
increase in prices will cause a shorter demand from the customers which will in turn affect the
overall sales of the Dalda products.

Changing Tastes: All over the world the dietary habits of the people are changing, the people are
inclining towards using lower fat and a lower cholesterol oils in their meals, and Dalda has been
able to meet this demand by offering their Low fat Banaspati ghee and their calcium locked
cooking oil which is safe for the heart, this means that Dalda has changed themselves with the
changing tastes of the customers.

Seasons: Dalda’s sale are affected by the weather. They said that the sale increase in the winter
whereas in summer they decrease, but the drop in sales in summer are not so much, they are only
about 7%-8%.

Time periods: During the month of Ramzan, Moharram and Eid days promotional activities of
Dalda products are increased due to more consumption.

Customer Base: Dalda has a very huge customer base especially in the rural areas, where the
people are mostly of upper and middle class. Dalda’s cooking oil and their banaspati ghee is
being widely used in these areas as the customers need a product that is a “cooking oil” or
“ghee” and provides fat free or low cholesterol.

Customer Driven Marketing Strategy


MARKET SEGMENTATION
Dalda segment their market on the following criteria:

Variable Typical Breakdowns

Geographic: Region Country-wise, province-wise, city-wise, etc.


Demographic

Age Under 25, 25 – 45, Over 45

GenderMale, Female

Income A – F Households with Class A households having the highest income and Class F
having the lowest.

Education Uneducated, Primary School, Matriculation, Intermediate, Bachelors, Masters,


PhD.

Psychographic

Social Class A – F Households – A being Upper class and F being the lower class.

Behavioural

Purchase Occasion Regular occasion, special occasion

Benefits Sought Quality, service, economy

User Status Nonuser, ex-user, potential user, regular user

Loyalty Status None, medium, strong, absolute

TARGET MARKET

Dalda Cooking Oil, Dalda Banaspati, Dalda Sunflower Oil, Dalda Lajawab and Planta Cooking
Oil.

Variable Typical Breakdowns


Geographic

Region Dalda is a nation wide brand. Although its sales are mainly in urban sind and urban
Punjab.

Planta Cooking Oil: Mainly Punjab

Demographic

Age 25 – 45

GenderTraditional female housewife

Income Households A and B*

Households C** (Dalda Cooking Oil)

Education At least Matriculation

Psychographic

Social Class Households A and B*

Lifestyle and Personality Dalda Cooking Oil is mainly targeted at housewives who are more
or less in the 25 – 45 age group. This woman is traditional but educated (at least completed her
matric) and loves taking care of her family. She is caring and nurturing and wants the best for her
family. She is quality conscious and health conscious and will be prepared to pay a premium
price for good quality products. She goes for cooking expertise, good taste and high quality.

Dalda Banaspati is targeted at the housewife who though wants the same taste as desi ghee wants
to provide her family with a healthier alternative – though she is not totally obsessed with health
considerations.
Dalda Sunflower Oil is targeted at housewives who go for extra health benefits and are extra
cautious about their family’s health.

Planta Cooking Oil is targeted at the housewife who wants the taste of ghee but without the
harmful effects that can result because of the consumption of ghee. She is health conscious and
wants to be accepted as a daughter-in-law, as a wife and as a mother who provides her family
with good tasting food with nutritional value.

Dalda Lajawab is targeted at housewives who are more Health conscious and also want to win
others by the Taste of food served.

* The Class A households are the highest income groups and Class B households are the middle-
income groups. These are the household who are willing to pay a premium price.

** by introducing 1 Liter Poly Bags, LBPL is now also targeting the lower end of the market i.e.
the Class C Households.

PRODUCT POSITIONING

Dalda cooking oil: The cooking expertise for the whole family.

Dalda Banaspati ghee: Substitute for desi ghee but healthier with the same great taste..
Dalda sunflower oil: very light oil, providing extra health benefits.

Planta cooking oil: Oil with the taste of Ghee – a healthy substitute to ghee.

Dalda Lajawab: vegetable oil with the taste never felt before and having carry through flavor not
for normal but for special cooking.

Marketing Mix

The marketing mix is the set of marketing tools that work together to affect the market. The four
elements of the mix are, of course, the product itself; the price at which it is offered for sale in
the market; the place or how the product is distributed; and promotion which brings the product
to the attention of the customer, arouses his/her interest, builds up the desire for the product and
finally moves him/her to act/purchase the product.

The following section of this report will deal with the marketing mix used by LBPL for its Dalda
brand.

PRODUCT
Anything that can be offered to the market for attention, acquisition, use or consumption that
might satisfy a want or need

Product Classification
The Dalda, brand is a consumer product. It is bought frequently, immediately and with a
relatively small amount of comparison. As such the goods, which fall into the convenience goods
bracket, are typically staple goods which is true for almost all of the products in this brand.
Product Quality
LBPL promises the highest quality for all of its products. As such the ODF products are also
manufactured to the highest standards. The consistency in LBPL’s promises and the delivered
product please consumers.

Product Features
A product’s features can set it apart from the competition and differentiate it for competitive
advantage.

Dalda Cooking Oil: Ultra-refined cooking oil, with the best taste, and also better
consistency and coloring.

Dalda Banaspati: Lower in cholesterol than desi ghee and better tasting.

Dalda Sunflower Oil: Lighter and healthier than most other oils except perhaps Canola
oil.

Dalda Lajawab: Emulsified vegetable oil with rich taste for special cooking.

Planta Cooking Oil: Cooking oil which tastes like ghee for those who want the best of
both worlds.

The total customer value analysis helps us to determine what product the consumer is getting in
the end. It also helps somewhat in the determination of the key features of LBPL’s ODF
products.

Product Services Personnel Image

Total

Customer

Value

Packs/Tins of ODF products


Cookery Program

Advisory Service

Social and Esteem needs met.

Product Design

Design is more than skin deep, it goes to the heart of the product and a good design contributes
to the product’s usefulness. When we talk about ODF products the design element means how
the oils and fats themselves are formulated and how their compositions influence their market.

Packaging

All ODF products’ packaging material is imported. Even the ink used on the packaging is
imported. The packaging is of the highest standard, at least in the local market. The Dalda brand
is available in tins, bottles and poly-bags. Planta is available in tins. All packages are clearly and
legibly labeled as to contents and ingredients. Best before dates are also fast becoming standard.
All packages are easy and safe to use. The packaging for the Dalda brand has retains the same
green colour since its introduction 50 years ago.

Place

Lever Brothers Pakistan believes in synergy, that is a perfect blend of all the components of the
marketing mix. Proof lies in it having one of the most efficient and largest distribution
(networks) systems in our country.

LBPL claims that it takes six weeks for the product to move from the factory to the shelf. The
product travels to the primary distributors (one and half weeks), then to the secondary distributor
(one and half weeks) and finally to the trade level (three weeks).
These intermediaries play a highly important role in getting the product to the target consumer.
Easy access on a national level to both urban and rural areas is vital if consumption targets are to
be achieved. By concentrating on its distribution efforts, it helps LBPL promote its product and
gain an advantage over its competitors.

PROMOTION

Element in an organization’s marketing mix that serves to inform, persuade and remind the
market of a product and the organization selling it.

LBPL being a market-oriented and customer-centered company its marketing efforts are
relatively the most.

The most concentrated promotion techniques used are television advertisements. Its ads are
shown on PTV and STN channels. The ads are re-launched after sometime to maintain interest of
the consumer and when the product is modified.

Dalda uses Visibility marketing and Media marketing.

Visibility marketing

Dalda concentrates most on visibility and availability. They pay a lot of attention towards this
form of advertising. This includes print advertisements, price cards, posters at vendor’s shops,
sign boards, buntings, flags etc.

Media Marketing

Lever uses different newspapers and magazines in promoting Dalda but the major emphasis is on
advertisements, shown at the times loving mothers are watching TV The ads also run at different
times of the day specially between 6.30 to 7.30.
DALDA

The punch line has remained the same through the ages, which has turned out to be the identity
of the product and has done wonders for it.

It reads: “Jahan mamta wahan Dalda”

The message concentrates on aroma, taste and a happy cheerful family. The family gives the
mother credit for the great tasting food. The theme was image building. It informs about the
product and persuades the consumers to buy it. Changes are made within four months.

Re-launch: The color of the oil was lightened as sales weren’t picking up especially in Karachi as
buyers here preferred light oil. LBPL had to, due to influx of other foreign brands (competitive
strategy). The message was the same though motherhood, love for the family and health.
Concentration was more on the color change.

Sunflower oil launched in 1991. It gets little support due to strong competition from the likes of
corn oil, canola oil, etc. therefore not much of the advertising budget, rather promotion efforts
are allocated towards it. These ads emphasize lightness of the sunflower oil itself for fitness
conscious consumers. Its stronger markets are Karachi, Lahore and Islamabad. Now Dalda
Lajawab is being advertised heavily towards its target market.

Pricing Strategy

LBPL’s marketing objective is primarily to tap the upper-middle and upper class segments. For
this they need to achieve product quality leadership and in doing so they incur high R&D costs.
To cover these costs they use value-based pricing and premium pricing strategies, relying on
consumers’ perceptions of their products’ values. Needless say that to support an
image/perception of high quality, they have to provide high quality products as well. The
promotion as discussed in the coming section is also targeted mostly at the affluent section of the
market with the advertisements showing well-to-do families. The cookery program is also to
attract affluent housewives away from satellite channel cookery programs to local TV where they
can view LBPL advertisements.

Uniliver’s marketing objective is to primarily approach the middle, upper-middle and upper class
segments, for this they need to have the unbeatable quality and they reach this quality by testing
their products again and again this is very costly but they still do it to maintain customer loyalty.

Dalda follows the value-based pricing strategy, they asses the customer’s needs and wants, then
it sets its price on the basis of the customer’s perception of the product. They also look at what
their competitor’s prices are then set the price accordingly so that the price is neither too far off
from the competitors nor is it too near to them.

For their Banaspati category they use Value added pricing, this means that they set the price
based on the added value of their product and charge higher prices for it, and the reason for that
is, that they are the only Pakistani ghee that is Fat-free. That is also the reason why the price of
their Banaspati ghee is higher than all the other ghee, they have a competitors’ edge over them

Branding is an aspect of marketing at which LBPL seems to excel especially when we think of
the Dalda brand. Since its introduction so many years ago Dalda has retained the same
motherhood and cooking expert image something which is hard to do for so long. There are
typically four levels of meaning conveyed by a brand name. The following is an analysis of what
ODF brand names convey:
BRANDS

LEVELS Dalda Planta

Attributes Premium quality, high prestige, The oil which tastes like ghee. Best of both
worlds.

Benefits Tasty food. Cooking ease.

Health, nutrition and good food.

Values Motherly love, tradition

Motherly love, tradition

Personality Cooking expert, mother

Young educated housewife also young mother

Brand Equity

Brand equity is the amount of power and value a brand name carries in the market. Firms can
capitalize on high brand equity to increase profits and market share. Brand equity is measured on
a three-level scale i.e. awareness, preference and loyalty. Here’s how LBPL’s ODF brands stand:

BRANDS
LEVELS Dalda Planta

Awareness High

High

Preference Medium

Medium

Loyalty High

Medium

Dalda is probably the most widely known of all LBPL’s ODF products and its equity in the
market is high. Dalda’s positioning is that of cooking expert and its equity has built up that
image. Those who buy Dalda remain more or less loyal to it. Some buy it because their mothers
and grandmothers bought it and some because they deem it the most dependable. In either case
the product does not disappoint the purchaser.

Planta is targeted primarily at province of Punjab and specifically at the bigger cities of Lahore
and Faisalabad. The brand seems to be doing very well in its target market and is building up its
equity. It derives most of its equity from the Lever name and from being a sister brand of Dalda.
Dalda Sunflower Cooking oil and Dalda cooking oil have the target market in the Karachi,
Lahore and Islamabad. Dalda Lajawab is targeted towards A and B class people and is showing
repeat purchases.

Distribution Channel Levels


LBPL aims to achieve maximum retail coverage and is not selective in its distribution technique.
It has no direct interaction with its wholesalers and retailers as such but nonetheless, operates
through a network of about 1300 distributors located in 600 regions throughout Pakistan.

Multiple distribution channels are used

Traditional Channels

The following channels are used, Factory, Depot, Distributor, Wholesaler, Retailer, Customer

FIELD FORCE

LBPL also has a large field that is engaged in helping it manage the retail outlets and increasing
its sales volume. The brand manager himself goes on surprise visits to see if distribution is being
properly dealt with according to LBPL standards or not.

The distribution channel performs the functions of:

Providing necessary market research and intelligence information

Developing and persuading consumers to take a product offer

Finding and communicating with prospective buyers

Matching the offer according to the customers need and informing the manufacturing concern
about it

Reaching an agreement regarding price and terms of sale offer to facilitate possession.
Sales Setup

Sales Controller

The control of sales goes along the following hierarchy: Branch Managers to Sales Category
Manager to Area Managers to Territory Managers and JMs

COLLECTION PROCESS

LBPL has a unique system for the collection of its payments. The system works in an organized
manner that is; the distributor at the head office, which in turn instructs the depot or the factory
for delivery, places an order. At the same time people at the depot prepare the invoice and
forward it to the head office. The head office then fills in the signed cheque and sends it to the
bank for encashment. Thus your consignment of Dalda, Planta or Blue Band is paid for.

TERMS AND CONDITIONS

There are no credit terms with the distributors

The Head office should always have signed books of the distributor prior to any transaction

The check given to the distributors should not bounce at any point in time.

Conflicts with the Distributor

Conflicts arise when the distributor does not comprehend to the specified standards of
performance. Lack of efficiency on their part could result in commodities not reaching retailers
in smaller, far off areas. The company may lose a portion of the customer this way.

Moreover, “hoarding” on the part of the distributor may result in artificial shortage of the
product, excess inventory lying in the stockrooms resulting in high inventory hold costs.
LBPL does not want its retailers selling old tins of Dalda. They prefer removing those from the
shelf and replacing them with fresher, newer ones so that the consumer receives the same pure
and premium Dalda oil on every purchase.

LBPL operates through many small distributors. Disagreements arise when the distributor may
insist on providing services to the competitors as well. This can distribute demand for the LBPL
product.

Thus, to safeguard the company against all these and other conflicts, both the company and the
distributor are bound by a legal contract that specifies the necessary required terms and
conditions of the trade.

Levers Distributorship Process

Lever divides the distributor’s territories with respect to population, per capital income, high
schools, middle schools, class, status, and number of outlets. Lever has a complete idea of
merchants, wholesalers, superstores, and retailers. Forty to sixty outlets make one section
(minimum) in which a van should move. In this way a distributors total territory is divided into
six sections. Distributors in big cities can have more than hundred sections.

Distributors are given 3% profit on sales plus redistribution cost, Octri and bonuses.

Direct Dispatches from factory to distributors are made for Karachi and to the distributors with
the requirement of full truck.
Lever Depots are in Turnol, Faisalabad, Lahore and Multan.

Competitive Analysis and Advantages Over Competitors:


Dalda is owned by Uniliver and its main competitors in the foods section are the local products
and the other specialized one-product multinationals. The main competitors of Uniliver are
Procter & Gamble. Its main competitors for the oils are Habib, Tullo, Canolive, Sufi, Soya
supreme etc.
The biggest competitive edge that Dalda has over the other cooking oil is that it has controlled
cholesterol levels in its cooking oil category, which sets it apart from the other oil
manufacturers. In its ghee category it is still the only one which provides the fat-free ghee and is
being sold in the foreign market.
Given below are the different prices of the different competitors of Banaspati Ghee and Dalda
cooking oil.

Product Name Quantity Price

Dalda VTF
1*5kg RS 905.00
Banaspati

Golden Sun
1*5kg RS 760.00
Banaspati Ghee
Habib Banaspati
1*5kg RS 815.00
Ghee

Kisan Banaspati
1*5kg RS 825.00
Ghee

From the table given above we find that DALDA’S Banaspati ghee is the costliest ghee, but it is
still able to have a greater market share then rest of the brands and that is due to the more
competitive edge it has in the rural sector due to being reliable and Fat free.

Given below are the prices of Cooking oils of Dalda and its competitors.

Product Name Quantity Price

Dalda Cooking oil 1*5Ltr RS 820.00


Golden Sun Cooking
1*5Ltr RS 840.00
oil

Habib Cooking oil 1*5Ltr RS 825.00

Soya Supreme
1*5Ltr RS 800.00
Cooking Oil

From the above table we get to know that the price of the cooking oil category of Dalda is
almost the same as all the other brands. Dalda cannot charge highest prices as cooking oil
almost have all the same properties, Dalda cannot say that they have the edge of being an only
cholesterol free cooking oil, because all the other brands are offering the same thing (being
cholesterol free).

Tools Of Promotion Mix

Sales Promotion
It also plays its role in promoting Dalda by arranging different events like cooking contests,
games and shows.

Personal Selling

There is no personal selling in case of Dalda brand, only business products of ODF group are
promoted and sold through this process. When Dalda come up with consumer promotion it give
the trade off to the retailers.

Other mediums

Print ads in magazines such as Women’s’ Own, She, etc. and those read by the average but
literate housewife. Buntings, posters, trade flags (hung at the retailers) inducing consumers to try
the latest taste for Dalda, etc.

Besides this, the cookery program that runs every Tuesday evening is a good promotion tactic as
it shows use of the Dalda oil in a variety of dishes. The viewer will also remember the brand
name through the message “Dalda Ka Dastarkhawn.” A housewife’s best friend in every way.

The symbol and the color of the tin is also a good way to communicate to the consumer who
can’t read but can easily recognize the tin by the palm leaf symbol or the yellow and green color
scheme.

There is an advisory service for the convenience and help of the consumer a cookbook to gift
and keep. A videocassette of the televised cookery show.

Sales promotion are done to increase sales build image of product in the consumers so called
“black-box” and develop a relationship with your consumers.

Premiums are offered during Ramazan or offers like a free chat masala packet, etc. to increase
sales.

Different sizes (poly bag, plastic bottle, 2.5/ 5 Litre tin) are available for convenience of the
consumer and to target all segments of the market. Packaging sent abroad to maintain standards.
Brand positioning used is about benefits of the product itself.

You might also like