dalda foods ltd. complete project iiui
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this is a complete project on dalda foods. abiut products, price ,problems, suggestionsTRANSCRIPT
DALDA FOODS (pvt) Ltd.
This survey report has been prepared objectively and purposefully by students of MBA (21 B), International Islamic University Islamabad. The survey report has been compiled in an extremely professional way. The objective of this report is to analyze the management and market skills of students on practical grounds.
Report Compiled by:
Faisal majeed 4114 03346994021
Atif javed 4131 03447057860
Junaid sultan 4132 03086959515
Muhammad Azam 4134 03335345212
Date of Compilation:
12th December 2009
Report submitted to:
Mr Bashir Ghuman
Professor Marketing Management
INTERNATIONAL ISLAMIC UNIVERSITY
ISLAMABAD PAKISTAN.
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DALDA FOODS (pvt) Ltd.
ACKNOWLEDGEMENT
We thank to Allah Almighty for his guidance and divine support that this report is finally complete as a result of continuous and
persistent effort.
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DALDA FOODS (pvt) Ltd.
PREFACE
First of all we would like to thank our instructor Mr. Bashir Ghuman for providing us the opportunity to look into various marketing strategies of Dalda Foods pvt ltd. This project has given us knowledge and practical experience, which will help us in future. We are also thankful to
Muhammad Naseer Khan
Regional operation manager
DALDA Foods (pvt.) Ltd
Plot No 395-96, I-9 Islamabad Pakistan
Tel : 051-4859071-5
Mr Srfraz Akram,
Consumer manager trade (METRO Islamabad)
Tel : 051-4020067-72
Mr Bilal Arshad
Consumer manager trade (METRO Islamabad)
Tel : 051-4020067-72
These people shared their experience and knowledge regarding the marketing strategies and sales of Dalda Foods. Their help has enabled us to prepare this report. We hope that this report will provide the required information regarding the marketing strategies of Dalda foods (Pvt.) Ltd.
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DALDA FOODS (pvt) Ltd.
Contents of report:
Selection of industry.
Review of industry.
Oil and Ghee companies.
Selection of company.
History of company.
Values of company.
Brand power
Financial Strength.
Organizational chart
Product mix/ pricing table.
Market segmentation.
Extension in product line.
Companies sales in last 4 years.
Sales graph.
Identification of Market leader.
Problems faced by company.
Companies Strategies to overcome these problems.
Problems faced by sales force
Our suggestions to company.
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DALDA FOODS (pvt) Ltd.
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DALDA FOODS (pvt) Ltd.
Review of Edible Oil Industry of Pakistan
In Pakistan, at present, the edible oil industry includes the manufacture of compound cooking oils (which is a recent development), table or salad oils (this process is still in its infancy) margarine and refined oils. Important products of this industry are mustard oil, cotton seed oil, groundnut oil and newly developed sunflower seed oil, safflower seed oil and Soya bean oil. Of late, a number of modern oil mills have been set up for the production of solvent extraction oils. At present, major sources of raw materials are cotton seed (about 58 per cent) (rape and mustard seed about 36 per cent) and others about (6 per cent).
Production:-
The three production processes that are in vogue in the country have their own limitation. For instance the bullock-driven village mill (kohlu) with a capacity of one mound (37 kgs.) of seed per day yields about 8% of the total oil mostly rape and mustard seed oil. Expeller mills produce 80 per cent of the total oil. These mills have varying capacity from 7 to 60 tones of seed per day.
There are also large expeller mills of 200 tones seed per day. Solvent extraction plants have a daily average capacity of 165 tones each. These plants produce about 11 per cent of edible oil.
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DALDA FOODS (pvt) Ltd.
List of Companies producing Edible Oil
DALDA FOODS.
Address: F-33, Hub river road, SITE.
Contact: +92-21-32579673
Owned By: Dalda Foods
NTN: 33-05-2128133
Year Established: 2004
ISO Certification: YES
SUFI.
Hamza Vegetable Oil refinery and ghee Mills Pvt Ltd.
1B Garden Block Garden Town Lahore.
UAN: (021) 111-466-426
HABIB OIL MILL’S.
D-38, S.I.T.E., and Karachi 75700, PakistanUAN: 021-111-466-426Tel: 021-2573605Fax: 021-2573604
KAUSAR.
Kausar Ghee Mills Pvt Ltd. Morahmanabad GT Road Gugarawala.
Head Office Kausar House 13C New Muslim Town. Lahore.
Phone: 042-5847696-8
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DALDA FOODS (pvt) Ltd.
UAN: (042) 111-100-786.
SEASONS.
Seasons Canola Oil
Wali Oil Mills 171 Shadmaan II Lahore
Tell. 042-7530535-37
ZAIQA FOODS.
Zaiqa Banaspati and oil Mills
PUNJAB OIL MILLS LTD. 120-A, E/1, Gulberg-III P.O.Box: 1873, Lahore, Punjab, PakistanPhone: 9242-5761586 / 5761585.
MUJAHID.
Mujahid
Hafiz Iqbal Ghee and Oil Industry (Pvt) Ltd
Hattar, Haripur, NWFP
FAUJI.
Fauji Ghee and Vegetable Oil
Hajji Faqir Muhammad Ghee Industries
7 K.M Multan Road Burawala
Tell. 067-3355596
LATIF.
Latif Ghee Industries Pvt Ltd
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DALDA FOODS (pvt) Ltd.
Phase-4 Plot-76, industrial Estate, Hattar, Haripur, NWFP.Ph: 0995-617075, 617085 Fax: 0995-617358
KISAN.
KISAN GHEE & OIL MILLS LIMITEDA-22, S.I.T.E., Karachi, Sindh, PakistanPhone: 9221-2561101 / 2561102 / 2561103 / 2561104Fax: 9221-2561873
KASHMIR
Kashmir Banaspati Ghee
United Industries limited Pakistan.
101 Regency Arcade 1st Floor The Mall Faisalabad.
GOLDEN SUN:-
Ifko Pakistan Pvt Ltd. Sharja UAE.
Plot no. OZ/1/P44 Port Qasim Industrial Area Karachi.
Phone: 021- 4525433-46.
MIZAN.
Mizan Banaspati Ghee
Paracha Textile Mills Ltd (Ghee Unit)
A/22 S.I.T.E Mirpur Road, Sher Shah Road, Karachi
Tell: 021-2561101-5
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DALDA FOODS (pvt) Ltd.
SELECTION OF COMPANY
DALDA FOODS (PVT) LTD.
Deals in vanaspati and cooking oils, Ghee (vanaspati) is VTF virtually trans fat free. Available and leading brand in Pakistan and India since 60 years. Brand name DALDA in Tins, Jars, Pouches, Buckets, Special packing could be arranged as per customer need.
Basic Information
Company Name: Dalda Foods (Pvt.) Limited
Business Type: Manufacturer
Product/Service: Edible fats
Number of Employees: 101 - 500 People
Trade & Market
Main Markets:
Pakistan
Afganistan
Bangladesh
Australia
Newzealand
Eygpt
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DALDA FOODS (pvt) Ltd.
South Africa
Total Annual Sales Volume: US$5 Million - US$10 Million
COMPANY PROFILE.
When you hear the name Dalda the image of quality conjures up in your mind. Dalda has earned the trust of its consumers over a period of almost 60 years. In fact Dalda is the pioneer of vegetable oil and banaspati ghee in the country.
Dalda’s story begins in early 1930’s when Hindustan vanaspati Manufacturing Co (today’s Hindustan Lever Limited) wanted to start manufacturing vanaspati locally. At that time hydrogenated vegetable oil was imported in India by a Dutch company, Dada & Co. Dada & Co, insisted that the branded product should reflect their name, hence in a bid to establish their ownership of the brand Hindustan Lever introduced the letter ‘L’ for Lever into the name; giving rise to the name DALDA.
Dalda Banaspati through its promise of superior quality & taste has won the hearts millions of consumers making it not only a household name in the sub-continent by synonymous with the genre vanaspati. Dalda, in its quest to meet the changing needs of its consumers; entered the oils segment through the launch of Dalda Cooking oil.
In 1999 Unilever acquired International Technology to evolve Dalda Banaspati to Dalda VTF, making it the only Virtually Trans-fat Free Bansapati in Pakistan.
In July 2004 Unilever Pakistan sold its "Dalda" brand to Westbury Group in collaboration with Unilever Employee Welfare Group, who formed a separate company under Dalda Foods (Private) Ltd.
Dalda Foods (pvt) ltd took Dalda’s over 60 years of heritage combined with continuous innovation and in-depth consumer understanding and maintenance of high quality standards has made it the leading brand in the Cooking Oil and Fats industry.
Within a short span of 4 years Dalda Foods expanded its Brand Portfolio through the launch of Manpasand; to meet the needs of the vast middle-income segment. Manpasand Banasapti and Cooking oil was launched at end-2005 and has grown to become one of the most formidable players in the industry.
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DALDA FOODS (pvt) Ltd.
The Dalda portfolio was also expanded to seize the opportunity arising from changing consumer lifestyles and increased health awareness; the company entered the pure-oil segment in early 2007 through the launch of Dalda Canola & subsequently Dalda Olive oil.
In a bid to expand capacity and further strengthen position in the premium segment and enter the lower-income segment; Dalda Foods acquired the brand “Tullo” & “Pride” from Wazir Ali Industries in January 2007.
VALUES OF COMPANY.
Strong businesses are built on Trust, Accountability and an Environment that allows their People to reach their full potential. At Dalda we believe and abide by the following company values when conducting our day to day business:
1. Integrity.
We act with honesty, integrity and highest ethical standards. Our people are expected to adhere to the laws and regulations pertaining to their work and comply with Dalda’s principles and policies.
2. Fairness
We work with people in a way that is fair and just. We treat fairly our customers, suppliers, shareholders and the communities in which we operate.
3. Trust
We give our employees complete autonomy and believe that all our employees adhere to our company’s values. Our stakeholders can be sure of our honesty when doing business with our employees and company.
4. Accountability
We are a responsible organization and feel accountable to all our stakeholders and the society at large.
5. People reaching their full potential.
We provide opportunities to our internal and external stakeholders for self-development and
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DALDA FOODS (pvt) Ltd.
growth. We encourage entrepreneurial as well as team spirit. The growth of the company should also incorporate the growth of the individuals in the company.
Organization Chart.
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DALDA FOODS (pvt) Ltd.
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DALDA FOODS (pvt) Ltd.
FINANCIAL BACKGROUND
AND BANKERS
The company has strong financial background and is considered liquid on all financial
considerations throughout its performances. It is enjoying excellent relations with its Bankers
and is having all needed credit limits and banking facilities at most competitive terms. The
followings are the existing bankers of the company.
Habib Bank Limited
United Bank Limited
Muslim Commercial Bank Limited
ABN AMRO Bank Limited
Askari Commercial Bank Limited
Union Bank Limited
Prime Commercial Bank Limited
Bank Al-Falah Limited
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DALDA FOODS (pvt) Ltd.
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DALDA FOODS (pvt) Ltd.
BRAND POWER:
Dalda’s Commitment to Quality.
Dalda’s commitment to quality, environmental and corporate social responsibility is signified from the fact that it is the only edible oil and fats brand which has: Bureau Verities Quality (BVQI) certification of:
o ISO 9001-2000 for Quality o ISO 14001-2004 for Environment
o ISO 22000-2005 for Food Safety
o OHSAS 18001-1999 for Occupational Health and Safety
HACCP certification for Hazard Analysis and Critical Control Points
Dalda is the only National Brand:
That has a Virtually Trans-fat Free (VTF) Banaspati since 1999 With enhanced vitamins as per UNESCO’s recommendation; which necessitates the
addition of more quantity of vitamins, than any other brand in Pakistan
Which is being exported to EU countries because it meets International Quality Standards
When you visit the Dalda Foods factory, you will immediately notice the beautiful green lawns irrigated by the recycled water from the in-house Effluent Treatment Plant for sustainable use of natural resources. Environmental Protection Bylaws state that it is mandatory for edible oil and fats factories in Pakistan to have an effluent treatment plant so that the environment is not damaged by the effluents from the factory. However Dalda is the only brand to have invested
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DALDA FOODS (pvt) Ltd.
substantially in order to acquire this plant and maintain it. This is Dalda’s humble contribution towards conserving and sustaining this natural resource. The treated effluent water from the Effluent Treatment Plant at Dalda meets the National Environmental Quality Standards (NEQS) and is used for irrigation purposes within the factory only.
Product line.
Dalda VTF Banaspati
Dalda’s journey into the lives of its consumers started almost 60 years ago when Dalda’s food scientists pioneered a way of preserving the goodness of vegetable oils in a manner which not only preserved the taste of desi ghee but was a healthier alternative cooking medium- thus Dalda Banaspati was born.
Over time keeping in line with the changing consumer needs Dalda Banaspati evolved to become Dalda VTF Banaspati. Dalda VTF Banaspati is the only banaspati in Pakistan which is virtually Trans-fats Free.
Any ordinary banaspati brand contains up to 25% of these harmful Trans-fats; however Dalda using its International Technology and Expertise has reduced the amount of Trans-fats in its banaspati to less than 1%. This makes Dalda VTF Banaspati the healthiest banaspati available in Pakistan.
Dalda Cooking Oil
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DALDA FOODS (pvt) Ltd.
Not only was Dalda the pioneer in banaspati but also keeping in mind the changing lifestyle of its consumers Dalda introduced cooking oil to the market
Dalda Cooking Oil is a premium blend of canola, sunflower and soybean oil, which is then hygienically refined to perfection using Dalda’s state of the art plant and International Technology and Expertise. This process of refining is specially designed to preserve the natural goodness of each of the individual oils in the blend. Hence the optimum goodness of each canola, sunflower and soybean reaches the consumers.
Planta Cooking Oil
In its quest for innovation Dalda introduced Planta Cooking Oil for consumers who were reluctant to shift to cooking oil from desi ghee. Thus Planta Cooking Oil became the only cooking oil to contain the goodness of oil and the delectable taste of ghee. It is a blend of soybean, canola and sunflower oil and is 100% cholesterol free. It also contains Vitamins A and D. This makes food cooked in Planta Cooking Oil tasty as well as very healthy.
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DALDA FOODS (pvt) Ltd.
Dalda Canola Oil with Vitamin Power
Dalda also expanded its product range to include Dalda Canola Oil with Vitamin Power. Extracted from fresh canola seeds, Dalda Canola Oil with Vitamin Power not only provides the benefits of Canola oil but also additional nutrients to give consumers extra energy, superior health and great taste essential for a modern and demanding lifestyle.
It is these properties and the additional Vitamin Power in Dalda Canola Oil which make it a much superior product and an ideal choice for Canola oil consumers.
Dalda Olive Oil
Another novel product by Dalda is Dalda Olive Oil. Dalda Olive Oil is packaged and imported from Spain. Using its International Technology and Expertise, Dalda ensures that its olive oil is extracted from the purest and freshest hand picked olives from the fertile lands of Spain, which are then refined to perfection using the most advanced International Technology under stringent quality standards within Spain. Dalda Olive Oil is 100% cholesterol free and enriched with exceptional Shifa and health benefits of olives, and fortified with additional Vitamin A and E to provide its consumers’ life with the smile and sparkle that it deserves. Dalda Olive Oil is available in three variants Extra Virgin, Pure, and Pomace. The difference
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DALDA FOODS (pvt) Ltd.
between the variants of Dalda Olive Oil is their acidity level, which affects mostly taste and not nutritional content.
Dalda Olive Oil Extra Virgin
Dalda Olive Oil Extra Virgin is from the first pressing of the olives and has a strong flavor and aroma with all natural vitamins. It is naturally enriched with vitamins and anti-oxidants which may help prevent against heart disease and cancer.
Dalda Olive Oil Pure
Dalda Olive Oil Pure is a blend of refined and virgin olive oil. It is refined using Dalda’s International Technology. It has a medium flavor and aroma and contains natural vitamins.
Dalda Olive Oil Pomace
Dalda Olive Oil Pomace is refined and filtered using Dalda’s International Technology. It has a light flavor and aroma. It has additional vitamin A as well as natural vitamins.
Manpasand
Manpasand Banaspati
Manpasand Banaspati is produced using the most advanced technology and fully automatic plant under stringent international quality and health standards. It is manufactured using similar plant/technology which is used to make Dalda.
Manpasand Banaspati with its granular texture; has a distinguished aroma and taste which enhances the flavor of the food to an unprecedented level
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Mid Price Segment
Mass Market
DALDA FOODS (pvt) Ltd.
Manpasand Banaspati is economical in use and enriched with Vitamins A & D to ensure healthy and great tasting food for your family.
Manpasand Cooking Oil
Manpasand Cooking Oil is produced using the world’s best vegetable oils on Pakistan’s most advanced plant under stringent international health and hygiene standards.
Manpasand Cooking Oil is a premium blend of Canola, Soybean and Cottonseed Oil. Manpasand Cooking Oil is best suited for all types of cooking, as it is economical in use and cholesterol free. It is enriched with Vitamins A and D, which provide your family the health and care they deserve.
Innovations
Dalda working on its leadership strategy has worked on overcoming its closest competitor. Tullo an all time famous brand of Wazir Ali Industry is now shining like a precious diamond in Dalda’s crown. Dalda has also introduced an Economy class product “pride”. With the addition of this product Dalda has got the honor of covering all market segments for edible oil.
Market Segmentation by Dalda:
Premium Segment
-----------------
……………………….
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Mid Price A: 500 K Tons
DFL’s Brand: Tullo
Competition: Kissan, Meezan, G.Sun , Sunny & Bulk Segment of
Premium B Market: 900 K Tons
DFL’s Brand: Manpasand
Competition: Sufi, Zaiqa & Kashmir
Mid Price B: 400 K Tons
DFL’s Brand: Pride
Competition: Shan, Lateef, Data, Dastarkhuan, Handi & Shama
Premium a Market: 300 K Tons
DFL’s Brand: Dalda
Competition: Habib, Rafhan, Soya Supreme & imported
DALDA FOODS (pvt) Ltd.
Product Mix Table:
S/No Product Name Dimensions Price (Rs)
1. Dalda Ghee 1 kg x 5 (pouches)
2.5 kg tin
5 kg tin
640
335
643
2. Dalda Cooking Oil 1 liter x 5 (pouches)
2.5 liter tin
4.5 liter bottle
3 liter bottle
10 liter bottle
625
333
641
395
1290
3. Dalda Canola 1 liter x 5 (pouches)
2.5 liter tin
5 liter tin
600
350
649
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DALDA FOODS (pvt) Ltd.
4.5 liter bottle
10 liter bottle
16 liter bottle
595
1295
2095
4. Planta Cooking Oil 1 liter x 5 (pouches)
2.5 liter tin
4.5 liter bottle
3 liter bottle
638
345
660
380
5. Manpasand Ghee .9 kg x 5 (pouches)
.9 kg x 16 box
2.5 kg tin
4.5 kg tin
4 kg jar
2 kg jar
9 kg jar
225
720
252
570
425
220
995
6. Manpasand Cooking Oil
.9 liter x 5 (pouches)
2.5 liter tin
4.5 liter tin
600
345
890
7. Tullo Ghee 1 kg x 5 (pouches)
1 kg x 16 Box
2.5 kg tin
575
1840
295
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DALDA FOODS (pvt) Ltd.
5 kg tin
16 kg tin
595
1850
8. Tullo Oil 1 liter x 5 (pouches)
1 liter x 16 Box
2.5 liter tin
5 liter tin
16 liter tin
595
1895
295
610
1920
9. Pride Ghee 1kg x 16 (pouches)
16 kg tin
1640
1675
10. Dalda Olive Oil (pomace)
Dalda Olive Oil (Extra Version)
1 litre bottle
2 litre bottle
5 litre
0.5 litre
1 litre bottle
360
715
1775
290
550
New Products Introduced by Dalda Foods
Manpasand Ghee and OilPride GheeTullo Ghee and Oil
Products Deleted by Dalda Foods
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DALDA FOODS (pvt) Ltd.
Nil
Traditional Sales Channels
Factory Depot Distributor Wholesaler
Retailer
Customer
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DALDA FOODS (pvt) Ltd.
Sales Graph.
Years Production in Tons National Sales Exports
2005 - 2006 65000 50000 14500
2006 - 2007 100000 82450 16000
2007 - 2008 250000 220360 29000
2008 - 2009* 135000 125000 9220
Sales of 2008-2009 are still in progress……..
C hart T itle
0
50000
100000
150000
200000
250000
300000
2005 - 2006 2006 - 2007 2007 - 2008 2008 - 2009*
P roduc tion inTonsNationalS ales
E xports
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DALDA FOODS (pvt) Ltd.
Consumption Pattern
AREA Banaspati OIL
Punjab 60% 40%
Sindh/Balo. 40% 60%
NWFP 70% 30%
CONSUMPTION PATTERN
0%
20%
40%
60%
80%
Punjab Sindh/Balo. NWFP
PROVENCE
PE
RC
EN
TA
GE
Banaspati
OIL
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DALDA FOODS (pvt) Ltd.
Problems Faced by Intermediaries
According to intermediaries major problem faced by the company was when Dalda
Foods purchased the brand name from unilever Pakistan.
Fluctuating petroleum prices raised the transportation charges.
Increased taxes.
Economical unstability, hurting the spending patterns of consumers and retailers.
Increase in inflation has decreased the purchasing power of the consumers. Decrease in
sales has decreased in profit margins.
On going security problems in the country, have created problems in managing supply
chain.
Intermediaries are dealing with general trade only. Now a new type of business known as
Modern trade has been introduced in pakistan like Metro, Cosmo, City Super Markets etc
which has decreased their market share.
Problems faced and Solved by company
Maintaining Brand image after being separated from renowned company Unilever
Pakistan. DALDA Foods maintained the brand image by providing same quality and
customer satisfaction as was promised by Unilever Pakistan.
Has to face retaliation by the consumers and retailers on the introduction of 4.5 kg
packaging of Manpasand Ghee and oil. This was justified by providing a quality product
in shape of Manpasand, which is required in lesser quantity for cooking. The same is
proved, when Manpasand Ghee was declared as the Busiest Brand of Year.
Faced financial crunch due to world wide recession. Introduced economy class products
like Manpasand, pride and bought Tullo Brand from Wazir Ali Industries.29
DALDA FOODS (pvt) Ltd.
Reduced Sales. Catering the problem by individualized services. Fulfilling the demand of
small customers like retailers by providing a Single Tin of DALDA Ghee and Cooking
Oil as and when requested by the customers.
Less production capacity as compared to demand in the market. Bought the
manufacturing plant of Wazir Ali Industries.
Special Sales representatives have been appointed by Dalda Foods to capture this market
Segment.
Our suggestions to company
The local image of Canola can be cashed upon. As it is produced locally, DALDA foods can use
the slogan of “be Pakistani and buy Pakistani”. It will encourage the farmers and all the
stakeholders of this industry.
DALDA can adopt backward integration strategy of cultivating palm oil in Malaysia and
Indonesia. The company can hire agricultural land which is suitable for better yield of
palm oil. In this way the company can fulfill its own and the needs of the oil industry. It
will decrease the production costs and increase the profit margin. As a result the prices of
Ghee and oil will be stabilized in the consumer market.
DALDA foods should hire sportsmen as a brand ambassador (especially cricketers). This
will develop a healthy image of their products and will target the youth of the country,
which makes a big chunk of consumer market.
The company can work on diversification strategy, and increase its product line by
entering into new business portfolios. This will increase the shelf space of the Dalda
products. Some suggestions can be:-
1. Spices and pickle industry
2. Frozen foods.
3. Filtered water.
4. Bakery items (cakes, biscuits)
5. Desi Ghee
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DALDA FOODS (pvt) Ltd.
Health tips along with basic information about healthy ways of living should be printed
on the tins/ bottles/ boxes etc.
Free pamphlets containing recipes of different dishes from famous cooking experts like
Zubaida Tariq and Naheed Ansari should be given with the products.
Religious festivals like Eid and Christmas should be cashed upon. Special marketing campaigns
should be launched showing some co-relation between Dalda and sentiments related to them.
Dalda should arrange food festivals with different cooking experts and chefs.
DALDA foods can perform its social responsibility by associating itself with some noble
cause or charity.
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