Table of Contents

Table of Contents.................................................................................................................2
Acknowledgement..............................................................................................................3
Dalda – History and Overview............................................................................................4
Current Market Situation:....................................................................................................5
Banaspati:........................................................................................................................5
Cooking Oil.....................................................................................................................5
Developments in the “Product Line”...................................................................................6
Competition.........................................................................................................................7
Credit Terms of Dalda and Competitors..............................................................................8
Overall Market Scenario for Oil and Banaspati..................................................................8
Swot Analysis:...................................................................................................................11
Strenghts:.......................................................................................................................11
Weakness:......................................................................................................................11
Opportunities:................................................................................................................11
Threats:..........................................................................................................................12
Current Punch Line............................................................................................................12
Unique Selling Proposition (USP).....................................................................................12
Boston Consultancy Group Matrix (BCG Matrix)............................................................13
Repositioning: Need for Repositioning............................................................................14
Proposed Marketing Strategy............................................................................................16
Line Modernization.......................................................................................................16
Segmentation:................................................................................................................16
Preferences.....................................................................................................................17
Bases for Segmenting Consumer Market..........................................................................18
Geographic Segmentation..............................................................................................18
Demographic Segmentation...........................................................................................18
Psychographic Segmentation.........................................................................................18
Behavioral Segmentation...............................................................................................19
Placement...........................................................................................................................20
Pricing................................................................................................................................21
Current Market Prices....................................................................................................22
Promotion..........................................................................................................................23
Promotion Costing.........................................................................................................24
Dalda – History and Overview

Dalda is a brand of hydrogenated vegetable oil

popular in South Asia. The substance was originally
imported from the Netherlands in the 1930s by the
trading company Dada Limited. When Hindustan
Lever Limited wanted to brand it, the trader, who
still retained a commercial connection with the
product, said it had to be named after his company.

HLL wanted to include the letter 'L' in it for Lever

(of the Unilever group), and thus was born one of
the longest-living brands in India. Dalda, which came to be synonymous with the
Banaspati (hydrogenated vegetable fat) genre, was recently extended to a range of edible
oils. Hindustan Lever has since sold the brand.

In July 2004, Unilever Pakistan accepted the offer of Rs. 1.33 million for the sale of its
"Dalda" brand to Westbury Group in collaboration with Unilever Employee Welfare
Group, who formed a separated company under Dalda Foods (Private) Ltd. Dalda has
now divested into Canola and Olive Oil product variants.

Today, Dalda Foods (Pvt.) Limited deals in Banaspati and cooking oils, Ghee (Banaspati)
and claim to use Virtually Trans Fat (VTF) free technology. With total annual sales
volume exceeding USD 10 Million, Dalda is one of the leading brands available in
Pakistan for over 60 years.

2
Current Market Situation:

The market is highly commodity driven and the consumers are extremely price sensitive.
The final selling price of edible oil and banaspati is highly dependant upon the prevailing
world oil prices. So Dalda has to make sure that it maintains a balance with the
fluctuating world oil prices. This is the reason why Dalda uses replacement cost pricing
rather than stock recovery.

Banaspati:
 Hydrogenated vegetable fat, semi solid granular product with a slip melting point
of 38 degree centigrade.
 Traditional cooking medium, especially for meat curries and sweet meats.
 Mainly consumed in central and northern areas especially by the lower
income/rural consumers.
 Lever Brothers Pakistan Limited pioneered this category in Pakistan, with Dalda.
 Banaspati is perceived to be old fashioned and unhealthy by the upper
income/urban consumers.

Cooking Oil
 Sharply divided into branded and unbranded segments.
 Branded segment s premium priced and relatively a recent development.
 Unbranded segment comprises of unrefined soybean, rapeseed and cottonseed oil
sold loose to rural/lower income consumers.
 Branded oils (mostly soybean), sold mainly in the urban areas especially in the
south.
 Lever Brothers Pakistan Limited with the entire product range of Dalda and
Planta is the largest player, closely followed by Habib.
 Lately sunflower and canola based single oils have aggressively entered the
market.

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Developments in the “Product Line”

1. Dalda Banaspati first launched in British India (1938)

2. Dalda Banaspati launched in Pakistan (1952)
3. Dalda Cooking Oil launched (1981)
4. Lever Brothers Pakistan Limited entered single
oils market with Dalda Sunflower Oil (1991)
5. Dalda Cooking Oil Vitamin E (1994)
6. Planta (1994)
7. Dalda Banaspati re-launched with enriched flavor
(1997)
8. Dalda cooking oil re-launched with addition of
vitamin E (1997)
9. VTF Dalda Banaspati launched (1998)
10. Test market launch of Dalda Lajawab (1998)
11. Dalda Crisp n Dry launched (1999)

4
Competition
Basically the branded market of edible oil and banaspati is dominated by four players
namely; Dalda, Habib, Tullo and Soya Supreme. There are approximately 172 registered
banaspati brands. Besides there is a very large unquantifiable unbranded market selling
banaspati, unrefined soybean, rapeseed and cottonseed oil loosely to the rural and lower
income consumers. Therefore it becomes highly difficult to estimate the market size.

In the banaspati market, Dalda VTF is a sure shot market leader. However, it is a market
challenger in the cooking oil category lending the first place to Habib cooking oil. If
Planta is considered along with Dalda then Lever Brothers Pakistan Limited (LBPL)
accounts for the highest sales volume.

Consumers all over the country have great trust in the brand name of Dalda, which is
considered to be a very traditional brand. The brand awareness and recall is 97%. It
enjoys hard core loyalty in the 35+(female) age bracket. However, Dalda is weak in the
younger segment, here it suffers at the hands of boredom. In this younger segment Tullo
gold and Habib are the “in” brands because their packaging is trendy and the attire which
they portray in their promotional campaigns is very young and energetic.

Another problem is that Unilever International dictates the ingredients and the quality
control terms for the entire product range of Dalda. This increases the final selling price,
making it a premium product. LBPL has no leverage to come up with cheap ingredient
brands. Therefore, they lose out to competitors like Habib who has Habib Nayab and
Habib Handi catering to the lower income segment.

5
Credit Terms of Dalda and Competitors

Dalda 4 Day cheque

Habib 3 day cheque

Soya Supreme 15 day cheque

Imported Oils Cash

Overall Market Scenario for Oil and Banaspati

1st Dalda and Planta 35 %

2nd Habib 28 %

3rd Tullo 17 %

4th Soya Supreme 14%

5th Others 06 %

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 BANASPATI AND OIL STORES

Visibility

DALDA

Low Medium High

KIRIANA

DALDA

Low Medium High

7
 GENERAL STORES

DALDA

Low Medium High

SUPER STORES

DALDA

Low Medium High

8
Swot Analysis:

Strenghts:
 Dalda’s greatest strength is the blind trust of the consumers in the brand.
 The entire product range has extremely high brand awareness.
 The brand recall is as high as 97%.
 The quality of the product is maintained at high standards under the supervision of
Unilever International.
 In the Banaspati category it’s the only Trans fat free brand available.
 Dalda is the largest player, closely followed by Habib.

Weakness:
 The brand suffers with an image problem. It is perceived as an old brand and the
consumers are bored with it.
 In the case of Dalda it poses great difficulties, as it is a regional brand catering to
Pakistani and Indian markets only.
 There has been no innovative packaging change since 1994.

Opportunities:
 Dalda can cash up the banaspati market in Northern and Central areas of Pakistan
where there is a large consumption especially by the rural and lower income groups.
 The branded market has been receiving a warm welcome lately in the metropolitan
areas of Pakistan.
 People are becoming health conscious and are switching to brands offering vitamins
and cholesterol free attributes.
 There is a growing segment of working women in search of modern and convenient
methods of cooking. Therefore, the flavored oils stand a very good chance.

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Threats:
 Fluctuations in the world oil prices.
 Banaspati is perceived to be old fashioned and unhealthy by the upper income/urban
consumers.
 Lately sunflower and Canola based single oils have aggressively entered the market.
 The unbranded segment comprises an enormous 50 % of the edible oil and Banaspati
market. This is sold loose to the rural/lower income consumers.

Current Punch Line

“Jahan Mamta Wahan Dalda”

Unique Selling Proposition (USP)

Its USP is taste and Quality. It aspires to be viewed as a “cooking expert”.

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Boston Consultancy Group Matrix (BCG Matrix)

Dalda is a cash cow where by providing Dalda Foods with continuous source of revenue..
The entire product range alone accounts for 80 % profitability of the firm.

High
Market
Growth

Low
Market
Growth

High Market Low Market

Share Share

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Repositioning: Need for Repositioning

The brand Dalda entered the Pakistani banaspati market in 1952 and launched Dalda
Cooking Oil in 1981. Since then there haven’t been much changes in the 4 Ps of Dalda
Cooking oil and Banaspati. The only minor changes included a slight flavor change of
Dalda banaspati in 1993 and the launch of Dalda Crisp n Dry and Dalda Lajawab in 1997
and 1998 respectively. This proves that all through out Lever Brothers Pakistan have
maintained their conservative strategies in marketing Dalda Cooking Oil. Neither
environmental factors nor changes in consumer trends have been taken into consideration
while marketing the brand. One of the reasons for this is the strict policy structure and
dictation of all goals and strategies by Unilever International.

Although consumers all over the country have great faith and trust in the brand name and
quality still its perceived as an old brand. It’s viewed as cooking oil or banaspati used by
older generations and one that does not fit the lifestyles of younger people. This is the
primary reason why Dalda has lost its market share to Habib and Tullo. Habib Cooking
Oil has the youngest image in the mind set of the consumer, as it was the first one to
market cooking oil in trendy, disposable plastic bottles. Soya supreme and Dalda trying
to keep up with competition also introduced plastic bottles. However, only Habib owns
this trait in the mind of the consumer. Foreseeing, this shift towards modernization of this
market Tullo has introduced Tullo Gold in the market. They are using younger models
and lending the line extension- Tullo Gold a very trendy and modern look.

Trying to topple over competition Dalda came up with Dalda Lajawab and Dalda Crisp
n Dry in 1997 and 1998. However, this diversification failed miserably as the consumers
could not differentiate between the taste, quality and purity of ordinary Dalda and
Lajawab or Crisp n Dry! In short the consumer was not getting the Unique Selling
Proposition (USP) of the new extensions which where being promoted and for which he/
she was paying.

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Diversification growth makes sense when good opportunities can be found outside the
present businesses. A good opportunity is one in which the industry is highly attractive
and the company has a mix of business strengths to be successful. Dalda with Lajawab
and Crisp n Dry tried the concentric diversification strategy. They sought new products
that had technological and marketing synergies with the existing product lines, even
though the new products could have appealed to a different consumer group altogether.
They overlooked the fact that the operating market had intense competition with new
entrants picking up market share. At that time what was needed was simply
modernization of the brand without confusing the consumer by adding similar products to
the clutter.

To top it all off the last packaging change was done back in 1994 and that too was not
very different or distinct from other brands. One of our observations is that there is hardly
any difference between the package color or design. All the brands have pretty much the
same look. Moreover when they are kept in the aisles of retail outlets all one can spot is a
bunch of containers with either yellow or green packaging.

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Proposed Marketing Strategy

Line Modernization
Even when the product line length is adequate, the line might need to be modernized. The
issue is whether to overhaul the line, piecemeal or all at once. A piece meal approach
allows the company to see how customers and dealers take to the new style. It is also less
draining on the company’s cash cow. This is the reason why we have planned a
piecemeal approach for repositioning Dalda. In this, we would be continuing the
marketing of Dalda (VTF) banaspati, Dalda cooking oil and will stop manufacturing and
selling Dalda Lajawab and Crisp n Dry.

In rapidly changing product markets, product modernization is carried on continuously.

Companies plan product improvements to encourage customer migration to higher
valued, higher priced items. LBPL will try to do a similar thing with Dalda through the
introduction of flavored oils. This will be a line extension catering to the needs of women
between the ages of 20 and 45 and belonging to the upper income strata of Rs. 10,000/-
plus.

Segmentation:
Market segmentation at the level of “segment marketing” will be practiced for Dalda in
order to increase targeting precision. It is recognized that buyers differ in their wants,
purchasing power, geographic locations, buying attitudes, and buying habits. However, it
is not possible to customize the offer/communication bundle to each individual customer.
Therefore, Dalda will try to isolate some broad segments that make up the market for
different items on its product line. For example, health conscious consumers for Dalda
cooking oil with vitamin E. Similarly, modern working women looking for convenience
for the Dalda flavored oil market (this is a line extension we have proposed in this report
and will be discussed later in greater detail).

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Preferences
Research indicates that the edible oil and banaspati market has distinct preference
clusters, the natural market segments. Some consumers look for pure banaspati with a
rich taste and smell, there is simply no way that they want to give up on the typical,
cultural taste of their food. Along with them are consumers who are very health
conscious and are not ready to compromise their healthy diet patterns under any
circumstances whatsoever. Then there are nuclear families with working mothers who are
trying to build trendy and convenient eating habits. Thus, the best solution for Dalda is to
have a separate product positioned in each different segment. Dalda banaspati for the first
set of consumers, Dalda cooking oil with vitamin E for the second and Dalda flavored oil
for the working mothers.

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Bases for Segmenting Consumer Market

Geographic Segmentation
The market for oil and banaspati is highly commodity driven. Moreover, the perceived
difference between various brands is very little. Therefore, Dalda has to ensure easy
access and availability or else it would lose out to competitors.

Keeping in mind the strategic importance of a good distribution network, LBPL has
divided Pakistan into six geographical locations. These include Karachi, Lahore,
Hyderabad, Faisalabad, Islamabad and Multan. The neighboring areas of these
metropolitan cities also report to the above mentioned six branches.

Demographic Segmentation
 The target audience will be primarily females starting from the age of 20 to round
about 45 years of age.
 For Dalda banaspati and cooking oil the income strata would be Rs. 4000/- plus.
However, the new flavored oils would be targeted at the upper strata of Rs. 10,000/-
plus. As the loose oil/banaspati consuming segment comprises around 50% of the
market, therefore, Dalda junior would continue targeting this segment.

Psychographic Segmentation
 The entire product range would be targeted at females leading a trendy and modern
lifestyle. Flavored oils would especially be marketed to working women looking for
convenient and smart recipes.

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Behavioral Segmentation
 We will try to increase the occasions of oil and banaspati consumption. Soon after
Moharrum the marriage season will begin. This will be a good opportunity to cash on
the seasonality effect.
 Through the introduction of flavored oils, we will be inducing new usage patterns.
Following are the extra uses for this category:

1. Can be used for grill basting.

2. Can be used in salad dressings, dips, mayonnaise, etc.
3. Can be used as a drizzle in presentations.
4. Can be used in soups and stews.
5. Can be used for shallow, griddle and deep-frying.
6. Can be used for sauntering vegetables, sea foods and meats.
7. Can be used for brushing pizza dough
8. Can be used for adding lemon flavor to curry.
9. Can be used for marinating meat.

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Placement
Edible oil and Banaspati is highly commodity driven. The final selling price is greatly
dependent on the prevailing world oil prices. Besides this the perceived difference
between the various brands ion this price sensitive category is almost negligible therefore
thew placement at retail outlets greatly determines the sales volume.

In order to cash on the shelf space all through out the year LBPL lays great stress on
having a strong distribution system. It has Six Branches one each in the cities of Karachi,
Hyderabad, Multan, Faisalabad, Islamabad and Lahore. Each branch has a branch
manager to whom several Assistant Branch Manager Report. Under each Assistant
Branch Manager are Lever’s Distributor Managers. Each Distributor Manager is
responsible for Five Distributors of Lever Range of Products. The entire inventory leaves
the factory and goes to the depot where each distributor has already submitted the total
week’s requirements.

Bearing this in mind we strongly believe that Dalda is suffering at the hands of growing
competition. To counter this we would improve the current shelf placement of Dalda by
offering higher margins and substantial trade discounts.
Higher margins would be tied with the sales delivered/achieved.

For Example
 Sales exceeding Rs. 100,000/= would entitle the retailer a commission of 5% of the
total Rupee Sales.
 Similarly on the sales of 100 units of the five liters pack the retailer would be given
five extra units free of cost. While on the sales of 100 units of the two and a half liters
pack the retailer would be given two extra units free of cost.

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Pricing
Edible oil and Banaspati market is extremely price conscious. The entire product range is
perceived to be premium priced. This is mainly because of the margin pressures and the
high quality expensive ingredients. LBPL has no say whatsoever in determing the quality
standards and the ingredients used in the manufacturing process.

The pricing strategy is cost based and we recommend replacement cost pricing for the
repositioned Dalda instead of stock recovery pricing. As the current prices are dependent
upon the prevailing world oil prices the new type of Pricing strategy will ensure that the
spread between cost and selling price is kept to a minimum. This will make the prices of
Dalda more competitive as the fluctuations in the market prices will be absorbed in the
final selling price.

We will maintain the current price of the existing product range. It is given in the
following table. However, Lajawab and Crisp n Dry would be withdrawn from the
market. The price of flavored oils would be as follows:

 Dalda Ginger n Garlic – Rs.130/- for 1.5 liters.

 Dalda Lemon - Rs. 130/- for 1.5 liters.

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Current Market Prices

BRAND Category Package Actual Price Price After

Size Rs./- Discounts
DALDA OIL 2.5 liters 168/- -
OIL 5.0 liters 320/- -
Bottle Oil 1.5 liters 109/- 100/-
Bottle Oil 3.0 liters 197/- 185/-
GHEE 2.5 liters 168/- -
GHEE 5.0 liters 320/- -
Crisp’n’Dry 1.5 liters 109/- 100/-
PLANTA OIL 2.5 liters 160/- -
OIL 5.0 liters 320/- -
HABIB OIL 2.5 liters 169/- 162/-
OIL 5.0 liters 323/- 308/-
Bottle Oil 3.0 liters 330/- -
Bottle Oil 5.0 liters 500/- -
GHEE 2.5 liters 161/- -
TULLO OIL 4.5 liters 330/- -
T. GOLD OIL 2.5 liters 165/- -
OIL 5.0 liters 315/- -
SOYA OIL: 1liters 165/- -
SUPREME
RAFHAN OIL 2.25 liters 190/- -
OIL 4.5 liters 300/- -

20
Promotion
Seeing the current market perception of Dalda, we have decided to change the Brand
personality of Dalda. It has always been seen as a very motherly brand, a brand which has
been used generation after generation. The tag line “Jahan Mamta Wahan Dalda” was the
last repositioning given to this brand which yet again has its root from the motherly
foundation.

We strongly feel that Dalda needs to take a diametric turn around in the message that it
passes on to its consumer.

The following are the steps we have planned.

 A teaser campaign for the new position would be designed. This campaign would be
strictly focused on the novelty of Dalda. The 7-second advertisement would create
brand awareness for the new line extension of flavored oils. This particular variant
would be marketed only to a select group of consumers belonging to the upper strata
of Rs.10, 000/- and above.
 Besides this we will continue marketing Dalda Banaspati (VTF) and Dalda cooking
Oil to not only the present segment of females aged 35+years but also to females
between the ages of 20-34 years. These ads will try to portray a very trendy and
modern setting, care would be taken to choose younger and fresher looking models.
 Dalda Ka Dastarkhan will be re-launched with a completely new look on both FM –
100 and PTV world starting from next quarter onwards i.e. May, June and July.
 A newer aspect of Dalda will be brought into light in the coming year. This will
reflect on the social responsibility effort those LPBL practices on its various brands.
Dalda would be granting 10 students of Home Economics College for Women a
sponsorship worth Rs. 150,000/- each. The scheme would start from January 1, 2001.
Through this effort Dalda will be able to create a good name in its future target
market. Females graduating from the institute formulate a potential consumer
segment.

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Promotion Costing

1. Teaser: A 7- second TV commercial would be aired for one month (June).

40 spots would be aired two to three times a day, in the time slot of 6:45 p.m. to 7:45
p.m. Research has indicated that this time slot gives the highest reach of the target
audience. The total cost of this campaign would come up to Rs. 2.1 million.

2. Dalda Ka Dastarkhan: The total cost of thirteen episodes on TV and a quarter year
running on FM 100 would cost Rs. 15 million.

3. Print And Billboard: Total costing would sum up to Rs. 14-16 million.

4. Scholarship: Ten scholarships starting next year would cumulate a total of Rs. 1.5
million.

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