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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.

PREFACE
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DALDA FOODS (pvt) Ltd.

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.

Contents of report:
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DALDA FOODS (pvt) Ltd.

• 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.

Review of Edible Oil Industry of Pakistan


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DALDA FOODS (pvt) Ltd.

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, Pakistan
UAN: 021-111-466-426
Tel: 021-2573605
Fax: 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

UAN: (042) 111-100-786.

SEASONS.
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DALDA FOODS (pvt) Ltd.

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, Pakistan
Phone: 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

Phase-4 Plot-76, industrial Estate,


Hattar, Haripur, NWFP.
Ph: 0995-617075, 617085 Fax: 0995-617358

KISAN.
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DALDA FOODS (pvt) Ltd.

KISAN GHEE & OIL MILLS LIMITED


A-22, S.I.T.E., Karachi, Sindh, Pakistan
Phone: 9221-2561101 / 2561102 / 2561103 / 2561104
Fax: 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

SELECTION OF COMPANY
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DALDA FOODS (pvt) Ltd.

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

• South Africa
Total Annual Sales Volume: US$5 Million - US$10 Million

COMPANY PROFILE.
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DALDA FOODS (pvt) Ltd.

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.

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.

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DALDA FOODS (pvt) Ltd.

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
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.

FINANCIAL BACKGROUND
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DALDA FOODS (pvt) Ltd.

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.

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:

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
o
• 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 substantially in order to acquire this plant and maintain it.
This is Dalda’s humble contribution towards conserving and sustaining this natural
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DALDA FOODS (pvt) Ltd.

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
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difference 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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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 a Market: 300 K


Premium B Market: 900 K
Tons
Tons
DFL’s Brand: Dalda
DFL’s Brand: Manpasand
Premium Segment
Competition: Habib,
Competition: Sufi, Zaiqa & Mid Price
-----------------
Segment
Mid Price B: 400 K Tons Mid Price A: 500 K Tons

DFL’s Brand: Pride ………………………. DFL’s Brand: Tullo

Competition: Shan, Competition: Kissan,


Lateef, Data, Meezan, G.Sun , Sunny &
Dastarkhuan, Handi & Mass 20
Market
DALDA FOODS (pvt) Ltd.

Product Mix Table:


S/No Product Name Dimensions Price (Rs)
1. Dalda Ghee 1 kg x 5 (pouches) 640

2.5 kg tin 335

5 kg tin 643
2. Dalda Cooking Oil 1 liter x 5 (pouches) 625

2.5 liter tin 333

4.5 liter bottle 641

3 liter bottle 395

10 liter bottle 1290


3. Dalda Canola 1 liter x 5 (pouches) 600

2.5 liter tin 350

5 liter tin 649

4.5 liter bottle 595

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DALDA FOODS (pvt) Ltd.

10 liter bottle 1295

16 liter bottle 2095


4. Planta Cooking Oil 1 liter x 5 (pouches) 638

2.5 liter tin 345

4.5 liter bottle 660

3 liter bottle 380


5. Manpasand Ghee .9 kg x 5 (pouches) 225

.9 kg x 16 box 720

2.5 kg tin 252

4.5 kg tin 570

4 kg jar 425

2 kg jar 220

9 kg jar 995
6. Manpasand Cooking .9 liter x 5 (pouches) 600
Oil
2.5 liter tin 345

4.5 liter tin 890


7. Tullo Ghee 1 kg x 5 (pouches) 575

1 kg x 16 Box 1840

2.5 kg tin 295

5 kg tin 595

16 kg tin 1850
8. Tullo Oil 1 liter x 5 (pouches) 595
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DALDA FOODS (pvt) Ltd.

1 liter x 16 Box

2.5 liter tin 1895

5 liter tin 295

16 liter tin 610

1920
9. Pride Ghee 1kg x 16 (pouches) 1640

16 kg tin 1675
10. Dalda Olive Oil 1 litre bottle 360
(pomace)
2 litre bottle 715

5 litre 1775
Dalda Olive Oil (Extra
0.5 litre 290
Version)
1 litre bottle 550

New Products Introduced by Dalda Foods


Manpasand Ghee and Oil
Pride Ghee
Tullo Ghee and Oil

Products Deleted by Dalda Foods


Nil

Traditional Sales Channels

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DALDA FOODS (pvt) Ltd.

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……..

Chart Title
300000

250000

200000

150000
Production in
100000 Tons
NationalSales
50000
Exports
0
2005 - 2006 2006 - 2007 2007 - 2008 2008 - 2009*

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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
80%
PERCENTAGE

60%
40%
20%
0% Banaspati
Punjab Sindh/Balo. NWFP OIL
PROVENCE

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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.
• 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.
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DALDA FOODS (pvt) Ltd.

• 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
• 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.

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DALDA FOODS (pvt) Ltd.

• 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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