Dalda

Saffola
*Prepared by the members of Group 6* 

Dalda:

1. Dalda was originally launched in 1936 by Lever Brothers (now, Hindustan Unilever) to sell Vanaspati, which is actually hydrogenated vegetable oil intended for cooking purposes. 2. HLL sold it¶s traditional brand Dalda to the US food giants, Bunge Ltd. In 2003. 
Saffola:

1. Saffola is the second flagship brand of Marico Industries, the 4th largest Indian FMCG company (source: Business World survey) 2. Saffola has been reported to hold 54% volume share(approx.) in the Indian refined edible oil industry in 2009, 4th quarter. (source: AC Nielsen) 

Our research findings based on age ±
80% 70% 60% 50% 40% 30% 20% 10% 0% 15-25 25-35 35-45 45 and above Dalda Saffola Others(Competit ors) 

Dalda is losing it¶s brand equity.  Dalda has been a traditional name in the Indian
market with a very prominent brand recall but after conducting our study among people; it¶s evident that the propensity of Dalda¶s usage is dwindling ± even among the senior people. 

Dalda is clearly losing it¶s market potential among the
present generation; which is definitely not a good news for the brand. 

People aged 4 and above, who are mostly prone to diabetic problems, obesity and heart ailments are consciously choosing cholesterol-free refined oils. Dalda is losing acceptance on this count.  Saffola does really well in all sections , except in the age group of 2 -3 where it is facing tough challenges from it¶s competitors ± Sundrop, Fortune, Nature Fresh being a few of them.

HU BA 6 16 10

(10 )

WIFE (44 ) MOTHER-I -LAW (24 ) O / AUGHTER (6 ) OTHER (16 )

24

44 

Our research findings in the consumer market suggest that the buying decision is primarily influenced by the female members in the household.  Wives, primarily being the homemakers in the households; do have an important say in buying decisions. They would naturally be economic, health ±conscious and concerned with family welfare issues.  Marketing strategies therefore, should be tailored and targeted likewise.

CONS MPTION (approx.)

14% 30%

2% 4% Saffola Sundrop Others Dalda 32% 68% Dalda Others

Domestic market

Commercial market 

Saffola is the leader in domestic market.  Saffola faces a substantial competition from edible oil brands like Sundrop , Fortune,Sweekar etc. with Sundrop being the primary challenger .  Dalda¶s acceptance in the domestic market is rapidly declining.  The scenario in the commercial market however, is almost opposite. Dalda Vanaspati enjoys a commendable commercial market existence.

Research based on income distribution

4 lakhs & above

2. - 4 lakhs

Others Saffola Dalda

1. - 2. lakhs

0%

20%

40%

60%

80% 

Dalda is rapidly losing ground, it is in the decline stage of the PLC.  This decline is notably steep in the domestic market, Dalda still carries a
fair enough commercial market share though. 

Present households give maximum importance to health parameters
compared to factors like price or even taste while buying oils. 

Dalda is known as a premier Vanaspati rand to this date; it¶s rebranding
endeavor has nearly gone unnoticed.  bsence of a good enough SCM may be cited as well. 

Saffola, on the other hand; holds the maximum market share in the
domestic edible oil industry. 

The cholesterol free ³healthy for the heart´ proposition which Saffola
promises, has gone down well with conscious and aware households. 

Saffola has introduced subtle variations for consumers. Saffola
Gold, Saffola ctive, Saffola New etc. - each come with distinct value propositions. 

Saffola has it¶s competitors, mainly in the form of Sundrop ( from gro Tech
Ltd.) 

Dalda : They should change their positioning from ³Vanaspati´ to low fat ³oils´.  Position itself in a manner so that it is perceived by the people, that it contains healthy fats required by a body on a regular basis.  It needs to innovate products with low trans-fat contents.  It can concentrate more on commercial sectors & rural areas.  Dalda¶s image is still that of a Vanaspati brand. Bunge Ltd. needs to diversify it¶s products under some different name & continue promoting Dalda as a Vanaspati Brand only.

Saffola: Saffola being the market leader, needs to keep an ardent watch on it¶s challengers.  Saffola should consolidate, focus & reinforce & keep promoting it¶s USP - ³health of the heart´ and delivering value accordingly.  It can launch some low cost products for the economy conscious urban people and rural markets.
`

It can introduce small pouches/sachets for catering to the differential needs of the mass market.

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