Group No.

10
Group Members:

1. Usama Bin Asim

2. Ali Hussnain Sajid
3. Usama Rafiq

Subject: Marketing & Agri. Business

Department: Food Science & Technology

Semester: 4th

Submitted to: Sr. Arslan Haider Bukhari

Project Topic: Dalda Food Industry

 TABLE OF CONTENT

 Pakistan Edible Oil Industry Overview

 Why we choice this Brand
 Introduction
 History
 Mission Statement
 Organization Structure
 Manufacturing Facility
 Brand Power
 Types of Product
 Market Share
 Internal Analysis
 Strategic cost Management
 SWOT Analysis
 BCG Matrix
 Problems Faced by Intermediaries
 Problems faced by Brand
 Our Recommendation
 1. PAKISTAN EDIBLE OIL INDUSTRY OVERVIEW

Edible oils and fats are an essential part of the daily needs of a Pakistani family. It is also a
significant part of household expenditure of an average family almost 6% of the household
budget is spent on it.

Branded as well as non-branded products compete in the market. Branded products are
mostly at the high end of the market and non-branded towards the lower end of the market
and mostly selling in loose form.

Edible oils and fats are marketed in variety of packaging formats tin cans, plastic bottles,
plastic pouches, plastic buckets and in loose form.

Ghee and cooking oil industry in Pakistan relies heavily on the imported edible oil and
spends a hefty foreign exchange on the payment of edible oil imports. Currently, Pakistan
spends about $1.0 billion per annum on the import of edible oil.

At present the capacity utilization of ghee or edible oil is about 55 percent. A probable reason
for this underutilization is the existence of unregistered ghee and cooking oil-processing units
in the country.

Edible oils market is a highly fragmented market with many brands and non-branded players.

1.2. Total Consumer Cooking Fats & Oils Market

The Cooking Fats and Oils market in Pakistan is about 1.2 million tons of which Vanaspati
market accounts for 0.875 million tones and edible oils for about 0.325 million tones. Of the
total market of 1.2 million tones, the branded market is about 51.65% and the remaining
48.35% is un-branded.

An analysis of the major players in the branded market reveals that most of this market is
non-premium segment taken by a large number of very small regional brands.

Companies with national presence dominate the premium segment. On the basis of its
market, it is divided into three categories; national, regional and local. National brands are
those popular in the whole country and marketable in the whole cities of Pakistan. Some
examples are Dalda, Habib and Sufi.

Local brands are those, which are present in a particular province like Punjab. Some
examples are Kisan, Meezan, Kashmir or Shan. Regional brands are those which are present
in a particular city like Rawalpindi. Some examples are Latif, Shahbaz etc.

2. WHY WE CHOICE THIS BRAND?

Throughout the years, Dalda has built a meaningful relationship with you by consistently
providing premium quality cooking oils and Banaspati. Its features are distinctive and are
renowned worldwide for its low absorption, zero cholesterol and extra vitamins.

3. DALDA FOODS
3.1. INTRODUCTION
The Dalda brand has a strong heritage in Pakistan. It is synonymous with assured quality,
which is why the business has been able to charge a premium over its competitors year after
year. The Dalda brand is one of the 3 leading top brands in the Country.

Current trademark and license rights in Pakistan only for:

O Dalda Vanaspati

O Dalda Melange

O Dalda Cooking Oil

O Dalda Planta

3.2. HISTORY OF VANASPATI

Dalda brand was first launched in British India in 1938. However, the Company launched
the brand in Pakistan in 1952. The brand was successfully re-launched in 1997 when the
Trans level in formulation was reduced to below 1% making it the healthiest Vanaspati
available in Pakistan. The brand was again re-launched in 2001 with a new flavor
“Irresistible taste with nutrition

3.3. HISTORY OF COOKING OIL

Dalda cooking oil was first launched in 1981 and re-launched in 1997 with the addition of
Vitamin-E to create functional differentiation.
The brand was again re-launched in 2001 on the platform of “Good Health, Great Taste…”

Dalda is an all-purpose Vanaspati used in the preparation of all types of meals and is branded
as a high quality grade in the retail market. Dalda is the most established branded vanaspati
and holds a significant market share of the premium branded vanaspati market (Excluding
Industrial Vanaspati Market).

Dalda Melange is a recently developed cooking medium that is typically used in the
preparation of all types of meals. It has been developed as a middle product between
Vanaspati and edible oil primarily to appeal to the health conscious customers

Dalda Cooking Oil is a well-established name in the Edible Oils Market having significant
share of premium branded cooking oil. Launched in 1981, the brand is on top of the recalled
foods brands of Pakistan. It has seen a continuous volume growth over the years and is one
of the most trusted household names.

Planta was launched in 1989 specifically to attract the customers who wanted the health
benefits of oil and taste of Vanaspati. The brand was transferred to the house of Dalda in
June 2000 and the name was reformatted as Dalda Planta. It enjoys very loyal customers’
base taking 4% of the branded edible oil market.

Dalda products are manufactured in a Company-owned plant located at Sindh Industrial &
Trading Estate (S.I.T.E.) Karachi.

The Company’s principal products compete in the categories of • Vanaspati and • Edible
Refined Oils and are distributed primarily through an integrated channel of company
distributors.

4. MISSION STATEMENT OF DALDA

Dalda …. Our Purpose

To supply superior quality food products at competitive price by providing the highest level
of customer services with commitment and dedication

Our purpose in Dalda is to meet the everyday needs of people everywhere – to anticipate the
aspirations of our consumers and customers and to respond creatively and competitively with
branded products and services which raise the quality of life.
Our deep roots in local cultures and markets around the world are our unparalleled
inheritance and the foundation for our future growth. We will bring our wealth of knowledge
and international expertise to the service of local consumers – a truly multi-local,
multinational.

Our long-term success requires a total commitment to exceptional standards of performance

and productivity, to working together effectively and to a willingness to embrace new ideas
and learn continuously.

We believe that to succeed requires the highest standards of corporate behavior towards our
employees, consumers and the societies and world in which we live. This is Dalda’s road to
sustainable, profitable growth for our business and long-term value creation for our
shareholders and employees.”

4.1. MAIN COMPONENTS OF MISSION STATEMENT

1. CUSTOMERS: The purpose of Dalda is to serve consumers in a unique and effective

way.

2. PRODUCTS OR SERVICES: It caters the requirement of everyday namely soap and

detergents for washing and cleaning, tea for drinking and margarine for daily breakfast.

3. CONCERN FOR SURVIVAL: The Economic objectives of Dalda are deep rooted in
local cultures and markets around the world.

4. PHILOSOPHY: The philosophy of the company is to provide highest standard of

corporate behavior towards the employees, consumers and the societies.

5. SELF CONCEPT: Total commitment to exceptional standards of performance and

productivity.

6. CONCERN FOR PUBLIC IMAGE: Profitable growth for the business and long term
value creation for shareholders and employees.

7. CONCERN FOR EMPLOYEES: The Company also focus to look after the employees
and to motivate them to look after the interest of consumers.

5. DALDA FOODS (PVT) LIMITED ORGANIZATION

STRUCTURE
5.1. MANUFACTURING FACILITY

Production facilities are situated at a strategic location at Sindh Industrial & Trading Estate
(S.I.T.E.), Karachi near to the Karachi Sea Port to enable easy access to imported raw
material. The factory has an area of about 9.27 acres.
The oil refinery is highly automated and utilizes advanced technological processes. The
Refinery includes all buildings, land, electrical and mechanical installations, furniture,
fittings, machinery and equipment utilized by the business, including the margarine plant but
excluding the third party packing facilities, which are located within the same vicinity.

6. BRAND POWER

Bureau Verities Quality (BVQI) certification of:

OISO 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 greenl a w n s i r r i g a t e d b y t h e r e c y c l e d w a t e r f r o m t h e i n -
house Effluent Treatment Plant forsustainable use of natural resources.
E n v i r o n m e n t a l P r o t e c t i o n B y l a w s s t a t e t h a t i t i s 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 substantially in order to acquire this plant and maintain
it.T h i s i s D a l d a ’ s h u m b l e c o n t r i b u t i o n t o w a r d s c o n s e r v i n g a n d s u s t a i n i n
g this natural resources.

7. TYPE OF PRODUCTS
7.1. Dalda Range

Dalda Foods offers a complete range of premium quality cooking oils and Banaspati with the
mission to provide its customers with a wholesome and flavorful life.

 VTF Banaspati
 Cooking Oil
 Corn Oil
 Olive Oil
 7.2. VTF BANASPATI

Dalda VTF Banaspati is the healthiest Banaspati of Pakistan because it is “Virtually Trans Fat
Free” and limits the “harmful” fatty acid content to less than 0.1% as per European standards,
while preserving the natural nutrients of Banaspati.
7.3. COOKING OIL

Dalda Cooking Oil is a blend of superior soybean, canola and sunflower oils, refined
to perfection. It contains vitamin A, D and E along with omega 3 and 6 which are
beneficial for a healthy and active life.
 7.4. CORN OIL

GOOD FOR THE HEART

Corn oil is considered as the healthiest oil amongst cooking oils. With its heart friendly
compounds, Dalda corn oil protects your heart and improves your health. It ensures that every
meal of yours is full of nutrition and enables you to live a life of quality. The components of
EVOO contain naturally occurring bioactive compounds like polyphenols. These compounds
have antioxidants, anti-inflammatory effects, and fatty acids rich in oleic acid which are
known to improve gut health.

DEFENDS AGAINST HARMFUL FATS

Whilst being beneficial for your heart health, corn oil also works towards protecting your
heart against harmful fats.

QUALITY OF LIFE
These nutritional benefits of corn oil, combined with Dalda’s international technology and expertise,
turn every meal into a healthy choice – the quality of your life is enhanced and safeguarded
 7.5. OLIVE OIL

FORTIFIED WITH VITAMIN A, D AND E

Dalda olive oil is fortified with additional vitamin A, D and E to provide you with the
nourishment you need and enhance the flavor of your food whilst satisfying your appetite.
FULL OF ANTIOXIDANTS
Our olive oil is extracted from the freshest hand-picked olives from the vast fertile lands of
Spain. The olives are refined to perfection by our international technology and expertise.
Filled with natural vitamins and antioxidants, it helps protect your heart against cardiac
ailments and cancer.

PROTECTS AGAINST LOW DENSITY LIPOPROTEIN

The unsaturated fats in our olive oil can protect you against Low-Density Lipoprotein (LDL),
also known as “bad” cholesterol.

8. Market Share
In a highly fragmented MARKET Dalda is the largest selling single brand. Dalda‘s market
can be broadly divided in two parts.
 Vanaspati market
 Edible oil market.
An analysis of the total market reveals that about 47% of the market are un-branded. Of the
remaining 53% market, premium segment constitutes only about 12% of the total market. In
the branded market however, the premium segment accounts for 23%.
 9. Internal Analysis

9.1. VALUE CHAIN

Human Resource Management

When the Dalda foods got de-merged from Unilever in 2004, 5 departmental heads and a
director straight away joined the new company and apart from them the management of the
new company was given the option of picking the employees working at the plant after they
were given “Golden Hand Shake” by Unilever. This is how Dalda has gotten the advantage of
employing the best skilled workers available in the industry.

Technological Development

Dalda has the plant that manufactures the banaspati which is Virtual Trans-Fat Free (VTF).
Company is providing the best quality product available in the market. Technology which
manufactures VTF is only available with Dalda. Efforts were made in the past by major
competitor like Habib to develop such technology but they could not succeed in developing a
plant that manufactures VTF banaspati.

Marketing & Sales

Dalda’s slogan “Jahan Mamta Wahan Dalda” is still in people’s mind and it is the marketing
of the product which has taken the brand to such new heights. The brand awareness is also
very high and this along with the marketing campaigns has played a major role in bringing
such success to the brand. The sales forces that the company has is well trained and has all
the traits that any sales team would require to perform at highest level.

Service

There is “Rabta Advisory Service” which is provided through a toll free number. Through
this service consumer can ask any question regarding the product. Dalda is the only company
in Edible Oil industry which is providing such service to its consumers

9.2. CORE COMPETENCIES

Quality
Dalda is not just meeting the standards which are set by PSQCA but also the more stringent
ones which have been stated by the U.N. It has been learnt that in the recent past the company
has even exported the product to the European countries, which itself is a proof that Dalda
has been able maintain the quality levels which are at par with international standards.

Distribution

Dalda is the only company in Pakistan which has the distribution network spread all over the
country. Most of the brands in the country are either sold in a particular city or in a particular
province and those who have their presence in more than one province either don’t have
presence in all the four provinces and if they have the presence then they are not in every
city. Dalda has the most wide spread and efficient distribution network among its
competitors.

10. STRATEGIC COST MANAGEMENT

10.1. Increased number of Depots

Dalda has increased its depots all over the country. This not only gives them a competitive
advantage but also a cost advantage. Through this large network of depots Dalda is able to
deliver goods to all their distributors quickly and cheaply. They save considerable
distribution/transportation costs, and the distributors stay satisfied with the timely deliveries.

10.2. Acquisition

Dalda recently acquired “TULLO”. This move not only helped Dalda to broaden/increase the
number of customers it had, but also helped the company decrease its cost per unit of
production slightly (economies of scale). Previously during certain seasons Dalda had to
increase production, and since it was working at full capacity it had to outsource some of its
production. Due to this the company was incurring huge costs. However after acquiring
Tullo, the company’s costs were reduced, since it no longer had to outsource its operations
any more.

10.3.Planning to Develop Logistics Network

The company is planning to buy and develop a logistics network, this way delivery of goods
will become more efficient and company can provide this service to other companies as well.

11.SWOT Analysis
11.1. STRENGTHS

• A respectable position in the eyes of the consumers:

The Dalda brand is one of the 3 leading top brands in the Country. This is strength for the
company in the market as it gives a respectable position to Dalda in the eyes of the
consumers and ensures brand loyalty.

• Brand Name:

The name “Dalda” is a great strength for the company as some people buy the product just
because of the name. Dalda has reserved the right for using the name Dalda for itself through
trademark. This prohibits any other company or individual from using the name Dalda for
their products.

Current trademark and license rights in Pakistan only for: 1. Dalda Vanaspati 2. Dalda
Melange 3. Dalda Cooking Oil 4. Dalda Planta

• Dalda’s slogan:

Dalda’s slogan “Jahan Maamta, wahan Dalda” (“Mother’s Love is Dalda”) became a
synonym for purity and quality and has been the platform for the brand for many, many
years. It means that Dalda is as pure as a mother’s love. This is a strong message, which has
given Dalda an edge over the competitors. The company has hold true to the message by
maintaining their quality and standards over the years.
• Market leader – not a follower:

Dalda is the overall market leader in the vanaspati and edible refined oils market in Pakistan
as it has a significant market share position both in the edible oil market and vanaspati
market. This has enabled Dalda to be a leader in the market and not a follower.

• Loyal customers:

Dalda enjoys very loyal customers all over Pakistan.

• Production facilities:

Production facilities are situated at a strategic location at Sindh Industrial & Trading Estate
(S.I.T.E.), Karachi near to the Karachi Sea Port to enable easy access to imported raw
material. This cuts down transportation costs for Dalda.

• Efficient supply chain management system:

The Company has an efficient supply chain management system. There is a dedicated
specialized oil-buying department within the Company catering to all the input needs of
Dalda.

• Pricing:

The pricing of Dalda’s is almost equivalent to the pricing of Habib, which is a major player in
the industry. This has given Dalda a similar platform to compete in the industry.

• Strong sales and distribution network:

The company has a very strong sales and distribution network in Pakistan.

11.2. WEAKNESSES

• More like a family owned business:

Being a family owned business, although a very professional team of expert looks after the
marketing department, the marketing plan and the final budgets comes from the owners of the
business so some times the marketing department faces problems in implementing certain
decisions which have to be taken immediately in the competitive environment.

• Centralized Decision Making

As discussed it’s a family owned business, so most of the decision making is centralized.
• Hugh amount of Import:

The Company imports most of its needs for palm oil from Malaysia whereas most of soya
bean oil is imported from South America. This makes Dalda vulnerable to changes in the
conditions of the countries in which its suppliers are situated.

• Lack of company-owned R&D

11.3. OPPORTUNITIES

• Setting Refineries

Industry players believe the setting up of refineries would encourage crude edible oil import,
which is much cheaper in terms of cost than the refined product.

• Local production of Raw Material

Now the government is taking steps to grow Soya beans and different type of seeds at the
coastal line of thatta.

• Emerging modern trade departmental chains like Macro and Metro

• Institutional Selling

• People are becoming more health conscious

Now the people become more health conscious and they prefer branded products.

• Untapped rural Market

There is a lot of potential to cater untapped market where people still use unbranded/ loose
cooking oil.

• Export potential

There is potential to export in Middle Eastern countries where people prefer strong
established brands like Dalda.

11.4. THREATS

Unbranded edible oils:

One of the threats for Dalda, are the low category brands which price their products at much
low cost then Dalda but they feature their brand in such a way that the people think that the
brand is very hygienic and nutritious.

• New entrants:

Edible oil industry is a growing market and hence many people are entering the market. This
is increasing competition in the industry.

• Lower pricing by competitors:

Sufi is charging a low price for its product. Although Dalda is well established all over the
country it still needs to be careful of Sufi’s action as it can steal some of Dalda’s customers.

• Intense competition in the industry:

There is an intense competition in the industry, due to which Dalda has to keep a close eye on
its competitors.

• Deteriorated law and order situation

• Non-availability of basic utilities power

• Weak Infrastructure of the country

• Political influence is used

• Smuggling of unbranded edible oil from Afghanistan

The edible oil businesses were now facing fierce battle with the combined pressure from
smuggled, unbranded and competitive local ghee and cooking oil brands.
• Reduction in the purchasing power of people due to inflation Consumers might shift to
open packet oil due to rise in prices.

• International brands are entering in the market

12.BCG GROWTH MATRIX

12.1. Star

• Dalda Cooking oil

• Dalda Manpasand
• Dalda Olive Oil

These are products which have a large market share in a fast growing industry. Their sales are
consistent throughout the year. Their cash generation is also high and at the same time has a
high growth potential, therefore require larger investments.

12.2. Question Mark

• Tullo

This product of Dalda’s requires plenty of additional investment. It was acquired only a few
years ago. Right now it has a small market share in a market with a high growth rate. Cash

12.3. Cow

• Dalda Banaspati This product of Dalda has one of the largest market shares in the category
of banaspati. However during recent years there has not been consistent growth in the
industry. And the company has chosen to decrease its additional investments.

12.4. Dog

• Dalda Canola This is a declining market. Dalda’s product has a low market share in this
category. And the company is not considering heavy investment in this product.

13.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.
 Economic instability, 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
 Ongoing security problems in the country, have created problems
i n m a n a g i n g 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, and City Super Markets etc. which has decreased their market
share.

14.Problems faced and Solved by company

 Maintaining Brand image after being separated from renowned company Unilever
Pakistan.D A L D A F o o d s m a i n t a i n e d t h e b r a n d i m a g e b y p r o v i d i n g s a
m e q u a l i t y a n d c u s t o m e r satisfaction as was promised by Unilever Pakistan.
 Has to face retaliation by the consumers and retailers on the
i n t r o d u c t i o n o f 4 . 5 k g 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 worldwide recession. Introduced economy
class products like Manpasand, pride and bought Tullo Brand from Wazir Ali
Industries.
 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 Oils 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.

15.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 farmer’s 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.

 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.

Thank You!