Marketing Assignment: Federal Urdu University of Arts, Science & Technology

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FEDERAL URDU UNIVERSITY OF ARTS, SCIENCE &

TECHNOLOGY

Marketing aSSignMent
Group member
1-Hafiz Muhammad Waleed
2-Muhammad Usama Nawaz

Product naMe: dalda

BS.com 4th B
Department: Commerce
Subject: Marketing
Background
A man named Qasim Dada used to import vegetable ghee from a Dutch company before
the 1930s, using it as a cheap alternative to desi ghee, which was made from buffalo or cow's
milk. In British India in the colonial days, desi ghee was considered an expensive product and far
from the purchasing power of the common people which made it less used in Indian households.
So, there was a need for a cheaper and cheaper alternative.
In view of this need, Hindustan Manufacturing Company was incorporated in 1931 tomake
artificial vegetable ghee. Vegetable ghee was made by the LEVER BROTHERS in England until the
1930's(Nowadays LEVER BROTHERS are known as UNILEVER).KASSIMDADA and HINDUSTAN
MANUFACTURING COMPANY(now called Hindustan Unilever Limited and Unilever Pakistan)
used to buy ghee from LEVER BROTHERS. Hindustan Vanaspatiwanted to start manufacturing
hydrogenated vegetable oil locally. KASSIM DADA collaborated with LEVER BROTHERS and after
1932 factory was set up and production started. In 1937 the product was ready. Now it was time
to name the brand (product). QASIM DADA was selling his imported products under the name
of Dada Vanaspati. He was asked by the LEVER BROTHERS to co-operate with the company to
add a letter 'L' to the LEVER BROTHERS brand name to make it a DA-L-DA. The new name DALDA
was introduced in 1937, becoming one of the longest running brands in India and Pakistan. After
advertisement of product, UNILEVER announced the strategic decision to sell of the DALDA
brand in both India and Pakistan.

Introduction
Hindustan Manufacturing Company was incorporated in 1931 to make artificial
vegetable ghee. Vegetable ghee was made by the LEVER BROTHERS in England until
the 1930's. Hindustan Vanaspati wanted to start manufacturing hydrogenated
vegetable oil locally. KASSIM DADA collaborated with LEVER BROTHERS and after
1932 factory was set up and production started.
DALDA and vegetable ghee are made from a variety of trees such as PALM TREE
and COCONUT TREE. Most DALDA and vegetable ghee are obtained from PALM TREE
and the oil of the seeds of this tree is first extracted to make ghee. This oil is then
filtered through a machine and sold in a large furnace. It contains color and vitamin
A & B which enhances the taste of ghee and also benefits the body. After cooking
the oil for a few hours, it is cooled to 25-degreeCelsius. After cooling, packing is
started and then it is sold in the market.
Characteristics
Dalda ghee is a popular product among Indian and Pakistani homes. This Vanaspati ghee
is an alternative for the traditional ghee that is made from the milk. The term
“Vanaspati” comes from the fact that the ghee is made using Vegetable oils. As the
traditional ghee has many benefits for health, go through all the factors listed below:
 Consumers Behaviors can be driven by Health Priority.
 When consumers think that it is better to spend on quality rather than on
medicine.
 When customers are loyal to the product and trust it.
 When desire is best combination of quality and economy.
 When financial resources are limited but customers aspire to upgrade towards
healthy and quality lifestyle.
 When customers are willing to stretch a rupee or two for buying a trustworthy and
experimented brand.

Segmentation
Through market segmentation, DALDA Foods has divided large heterogeneous
markets into smaller segments that can be reached more efficiently and effectively with
products that cater to the specific needs of the market. The customers in all segments
want what’s best for their health and for it to be non-processed and natural; hence DALDA
delivers value to its consumers based on different market segmenting including
Demographic, Geographic, Psychographic and Behavioral segments.
 Demographic:
As far as the Age and Life Cycle Stage segmentation is concerned, DALDA is
not restricted to any particular age group as people of all ages consume it. It delivers
value to consumers of all ages as everyone prefers their food to be prepared in
healthy and trustworthy products. They have different products to cater to different
ages too. With the gender segmentation, the DALDA Oil range consisting of Cooking
Oil, Olive Oil, Corn Oil and Manpasand, Banaspati and Cooking Oil are targeted
towards families and people who cook food themselves or use oil for cooking like
hotels and restaurants. This also mainly targeted to be bought by the women of the
family and hence the advertisements also show a woman cooking for her family. In
terms of income segmentation, DALDA targets all socio-economic groups including
the upper-class, middle-class and lower-class by having different varieties and prices
accordingly.
 Geographic:
Since the market for oil and Banaspati is highly commodity driven, the
perceived difference between various brands is very little. Hence, DALDA focuses on
the easy access to its products by ensuring that all markets and cities stock their
products. This is the reason why an individual would find DALDA products at utility
stores all over Pakistan. Thus, DALDA has to ensure quick access and availability in
order to achieve a competitive advantage and not lose out to its competitors. The
Lever Brother Pakistan Ltd. has divided Pakistan into six geographical locations,
keeping in mind the strategic importance of an effective and efficient distribution
network. These locations include Lahore, Karachi, Hyderabad, Faisalabad, Islamabad
and Multan.
 Psychological:
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.
 Behavioral:
We will try to increase the occasions of oil and Banaspati consumption. Soon
after Muharrum 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.

Fact Of Dalda
In contrast to Desi Ghee, the major facts in Dalda are as follows:
 Vegetable Oil:
Unlike the traditional ghee, Dalda ghee contains trans-fat. This trans-fat comes from
the hydrogenated vegetable oil that is used in the making of the ghee. Cow milk is
used in the preparation of Traditional or Desi ghee, whereas companies use Palm oil
in making the DALDA ghee. This type of vegetable oil is hydrogenated. The oils are
further cooled in the refrigerators to crystallize the oil into a grainy structure that
has the same resemblance when it comes to the structure of the ghee. Companies
prefer using the oils that are cheaper as it cuts down the cost of production.
 Chances of Obesity:
As mentioned above, the trans fats in the hydrogenated oils can lead to higher
cholesterol levels, which can also cause Obesity. These types of fats tend to make
you overweight as compared to traditional ghee. This is also one of the reasons why
people food at cheap restaurants or food joints starts gaining weight. A lot of
restaurants use cheap alternatives for oil and ghee, which can lead to a drastic
increase in weight. There are only a few good restaurants in India that make the use
of traditional or desi ghee in their preparations. Consuming food items made in
Dalda ghee can also increase the amount of belly fats in the person.
 Heart Diseases and Hypertension:
Many cuisines all around the world use traditional ghee in their preparation as the
cow’s milk has nutritive qualities. Traditional ghee has short fatty acids that can be
easily digested by our systems and do not cause any problems. Its saturated fats and
trans-fat that cause the problems. Vanaspati ghee reduces the level of High-Density
Lipids (HDL), which is also termed good cholesterol. It increases the
overall cholesterol level, which significantly affects the functioning of the heart and
might lead to cardiovascular diseases. The risk of getting heart disease or
hypertension increases if the consumption of such Vanaspati ghee is higher.

Improvement In Product
To improve Dalda ghee, it should allow a maximum of 5% trans-fat in the food and the
company has also asked the manufacturers to mention all the nutritional values on the
package itself. This process will improve the quality of DALDA ghee and increase its
market value.
Tools For Marketing
 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 are 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 Design & Packaging:
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.
DALDA product is a unique product with enriched features. 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 labelled 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 color since its introduction 50 years ago. It
is altogether a new product, packaged in a 1-liter poly-jar. Company had test
marketed this product on 14th September 1998 in Lahore.

 Product Branding:
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:
 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
 Personality
 Promotions:
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. 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.
Sales Promotion:
It also plays its role in promoting DALDA by arranging different events like
cooking contests, games and shows.

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.
 SWOT Analysis:

 STRENGHTS
o DALDA’S products have the largest market share in Pakistan in oil and
Banaspati market.
o DALDA’S products have very high customer loyalty.
o LBPL takes care in keeping the highest quality of the products it produces.
o In the Banaspati category DALDA is the only fat free brand.

 WEAKNESSES

DALDA is a very old brand, there has no change in packaging since


ages, people feel that the new better packaged brands have better
products.

 OPPORTUNITIES

o The company can cash on DALDA to introduce new products; they have a
large market share in the central and northern areas of Pakistan.
o People in the metropolitan areas are inclined towards branded products.
o The fat free Banaspati is still popular and can be advertised to gain the
market in health-conscious people.

 THREATS

o BANASPATI and OIL is also sold loose to a large rural market.


o The market is now entered by Soya bean canola and sunflower oils, these
are being bought by health conscience people this will lead to DALDA’s
and Planta’s decline in market share.
o The overall market of oil and Banaspati is declining.
 Product Attraction:
The attraction of the product lies in its packaging. Making the packaging unique
makes it more attractive. Along with the packaging, DALDA uses the tagline
'Where Mamta Vahan Dalda'
in its advertisement. was the last repositioning given to this brand which yet again
has its root from the motherly foundation.

What Tools we will use for effective marketing?


After product manufacturing, first the company should inform the customers about the
details of this product (quality, design, packaging, branding), then check its competitors
and accordingly advertise their product. Following are the steps for good marketing:
1.product 2. price 3. Promotion 4. place 5. packaging 6. positioning 7. People
1. Product:
develop the habit of looking at our product as though you were an outside
marketing consultant brought in to help our company decide whether or not it’s in the
right business at this time.
Whenever we’re having difficulty selling as much of our products or services as I’d
like, I need to develop the habit of assessing our business honestly and asking, “Are these
the right products or services for our customers today?”
2. Price:
The main aim of the management of every organization is to maximize profits by
effectively getting the products of the shelf; let’s define and explain this better.
Pricing strategy is a way of finding a competitive price of a product or a service. This
strategy is combined with the other marketing pricing strategies that are the economic
patterns, competition, market demand and finally product characteristic.
3. Promotions:
The third point in marketing and sales is promotion all the time. Promotion includes
all the ways you we tell our customers about our products or services and how I then
market and sell to them. Which include media marketing, sale marketing, etc.
4. Place:
The fourth point is the place where our product or service is actually sold. We need
to develop the habit of reviewing and reflecting upon the exact location where the
customer meets the sales person. Sometimes a change in place can lead to a rapid increase
in sales.
5. Packaging:
We need to develop the habit of standing back and looking at every visual element
in the packaging of our product or service through the eyes of a critical prospect.
Remember, people form their first impression about I within the first 30 seconds of
seeing you or some element of your company. Small improvements in the packaging or
external appearance of our product or service can often lead to completely different
reactions from our customers.
With regard to the packaging of our company, our product or service, I should think
in terms of everything that the customer sees from the first moment of contact with our
company all the way through the purchasing process.
6. Positioning:
I should need to develop the habit of thinking continually about how I am positioned
in the hearts and minds of our customers. How do people think and talk about us when
we’re not present? How do people think and talk about our company? What positioning
do I have in your market, in terms of the specific words people use when they describe I
and our offerings to others? Maintain all these things to make more effective marketing.
7. People:
The last point is people. We will able to develop the habit of thinking in terms of the
people inside and outside of our business who are responsible for every element of our
sales and marketing strategy and activities.
Awareness
Awareness is a general term that describes how we aware consumers are with a brand or
its products. Put simply, brand awareness is the measure of how memorable and
recognizable a brand is to its target audience.
Establishing brand awareness is a powerful marketing strategy that leads consumers to
develop an instinctive preference towards a brand and its products. Making a brand
recognizable and memorable is at the heart of most marketing strategies because it is a
major force behind brand trust, and ultimately, sales generation.

Potential Customers
A person who has the potential to be interested in the services and products that are
offered by the company but has not yet purchased.
Not everyone is a potential customer of my company. The potential customer will be a
person who will naturally have the most chance of interacting with the company. For
example, my DALDA company, the potential customers will be those who need to
purchase a ghee with good quality.
Identifying potential customers is essential because it will allow the company to better
communicate with them and ensure that they become customers.

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