Executive Summary

This report focuses on the following

areas:

Target Market and market segments

Product Positioning
Consumer Markets and Consumer Behavior
Competitors
Product Development
And Competition Analysis
The Marketing Mix
Product i.e. all the products under the Dalda
brand of Lever Brothers Pakistan Ltd.
Packaging, Branding and Life cycle stages
have been covered
Price and Pricing Strategies have been
discussed
Distribution system is discussed in detail
and Lever’s Strategies regarding the
promotion of Dalda brand are also covered.
Swot Analysis has also been discussed.
 Preface

This report is an application of the

Marketing concepts used as a business
function by the Oils, Dairies and Fats
Division of Lever Brothers Pakistan Ltd.
(LBPL)for Dalda Brand. The goal of
Marketing is to create customer
satisfaction profitably by building value-
laden relationships with important
customers. It calls on the organization to
think "customer.” and regard him as the
King
we, as students require an in depth insight into
the creative world of marketing. we need to know
how vital role marketing plays in any
organization as they all reach out to satisfy
citizen and customer needs, providing them
value resulting in company profits. our aim was
to objectively analyze these principles as applied
in the business environment in Pakistan.
 Acknowledgements
My heartiest gratitude to everyone who
helped me in carrying out this study.
Special thanks are due to Ms. Sara Khan
for her much needed guidance.
We are deeply thankful to Mr. Chaudhary
Mohammad Basharat (Group Marketing
Manager) and Mr. Shehzad Khan (Product
Manager) for their valuable assistance.

Our heartiest regards to Mr. Naeem Khokar

(ex Business unit Manager ODF).
Unilever’s Philosophy

“Success depends upon providing the

right mix of international and local
brands for the local consumer.”

“International expertise means we

can focus relevant experience and
people on new markets – fast.”

“Research must be consumer focused

and technology driven – a worldwide
commitment.”

“Our international competitive

strength is the depth and quality of
our people and their ability to
network.”
 Unilever’s Corporate Purpose

“Our purpose in Unilever 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 of 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 toward our
employees, consumers and societies and world in
which we live.

“This is Unilever’s road to sustainable, profitable

growth for our business and long-term value creation
for our share-holders and employees.”
 Unilever History
Today, Unilever – the Anglo-Dutch consumer goods business – is one
of the largest companies in the world with sales (1996) over $50
billion.

Lord Lever Hume packaged the first bar soap and named it as
SUNLIGHT thus changing the complexion of a industry that could
have thrived as a cottage industry.

Lever Hume with Sunlight on his bicycle used to go to ladies and tell
them that this yellow color perfumed soap was specially branded for
them. Although there were some resistance in the initial stages of its
launch but the high quality and consumer oriented product was
accepted by the majority of target market. Increasing sales instigated
him to stock and to add outlets and distributors. Lord Lever Hume was
the buying man, manufacturer, production manager, quality assurance
manager, distribution manager, marketing manager and everything of
the company. He soon established soap factories in Europe, North
America, Australia and the Far East, and oil mills at Port Sunlight in
the UK and Balmain, Sydney in Australia. His diligence, hard work
and passion for innovation added different products to the Lever’s
product mix.

The reasons behind the creation of Unilever in 1929, when it was

created by the merger of Margarine Unie and Lever Brothers, were
sound commercial ones. Margarine Unie of the Netherlands and Lever
Brothers Limited of the UK competed for supplies of oils and fats
which they put to different uses, but they were both in the business of
supplying goods for household needs.

After 1917 he moved into the food trade, acquiring fish shops and
canned foods, meat and ice cream businesses.

The rapid post-war economic growth and technical progress provided

great opportunities for Unilever. The company soon recognized that it
must adapt to new markets and new technologies, investing
significantly in its research facilities and expanding through
acquisitions in new geographical and category areas.

The Company moved into chemicals, packaging, market research and

advertising, and the number of these businesses increased through
acquisitions during a period of further diversification in the 1970s. By
1986 the company had sold most of its service and ancillary
businesses, many of which had grown to a considerable size. At the
beginning of the 1990s Unilever’s packaging companies and the major
part of its agribusiness interests were also sold, leaving four core
product groups - home and personal care, foods and specialty
chemicals - which by then (1991) accounted for 96 per cent of sales.

Unilever clearly recognized the need to expand into emerging markets.

An increasing proportion of the Company’s resources has been
invested in emerging economies, growing from 16 per cent of total
Unilever investments in 1985 to 27 per cent in 1996.

Unilever’s designated core categories are now: laundry, personal

wash, prestige, mass skin, hair, oral, deodorants, ice cream, yellow
fats, tea and culinary products. Other categories, including frozen
foods and home care, are regarded as offering much potential in the
more distant future.

World-wide strategy for the core categories is combined with custody

of the so-called “Unilever brands” - those brand names which are
present across several regions and whose central strategic co-
ordination will add significant value. The companies are still free to
innovate when developing brands to suit their particular market place.

All these moves reflect the needs of a business which is expanding ever
further throughout the world and facing tough competition. Unilever is
now well placed to meet the opportunities in developing and emerging
markets which the twenty-first century will offer.
LEVER BROTHERS IN PAKISTAN
Lever Brothers Pakistan Limited (LBPL) was first incorporated in
Pakistan in 1948 and work started in the present factory in Rahim Yar
Khan. Dalda Banaspati was the first product from that factory
followed by Lux soap in 1954.

LBPL pioneered the business of processed animal and poultry feeds in

Pakistan in 1960. However due to immense difficulties this business
had to be closed down in 1980.

Surf, first of the non-soapy-detergent powders was introduced in 1963.

It was produced by arrangement with Futehally Chemicals (Pvt.) Ltd.

The present Karachi Edibles Factory was acquired in 1965 from A&B
Oil Industries Ltd. Modernization and expansion of the factory has
been a continuing process..

The head office shifted from Rahim Yar Khan to Karachi in 1966.

LBPL moved into the personal products business in 1981. Further

diversification on the foods side of the business has taken place with
the introduction of margarine and cooking oils. They have a seeds
business, an industrial detergents business, and an ice cream business.

Unilever had acquired Lipton’s business worldwide In Pakistan Lipton

was merged with LBPL in 1984. Legal merger became effective in
1989.
Product Lines in Pakistan

Personal Fabrics&ho Personal Oil & dairy Wall’s ice Beverages

wash me care product based crème
products
Hard soaps Fabric wash Hair care Banaspati Lipton\Brook
Bond(Leaf Teas)

Lifebuoy Surf Super Sun silk Dalda Cornetto Yellow Label

Active shampoo
Lifebuoy Micro surf Lifebuoy Feast Supreme
plus shampoo Cooking oil
Lifebuoy Surf excel Harmony Dalda Top Ten Top Star
gold soap cooking oil
Sun light Skin care Dalda Star Cup Richbru
Toilet soaps washing sunflower
powder oil
Lux Sun light Fair & Planta Calippo Taaza
soap lovely skin cooking oil
crème &
lotion
Rexona Dalda Split BB Tips
Wheel Dental care Lajawab
Le Sancy Closeup Fruiti Red Label
Home Care toothpaste Margarines
Lyril Vim Powder Pepsodent Blue Band Paddle Pop Dust Teas

Vim Bar Master Line 3-D Pearl Dust

Industrial Solo Ruby Dust

Fats
Oils and Mini Milk Kenya Mixture
Ghee
Spread Howzat Super Dust

Take Home Red Rose

1 Ltre Pack
Polka
ODF Division – Product Line

This report concentrates on the Dalda brand of ODF Division of Lever Brothers
Pakistan

O D F D iv isio n

Y ello w fats C o o k in g fats & o ils

B an asp ati g h ee C o o k in g o il

The ODF division is catering both to the consumer markets and the business
markets. Under the cooking fats and oils they produce Dalda Banaspati Ghee,
Dalda Cooking Oil, Dalda Sunflower Oil, and Planta. Under yellow fats they have
Blue Band Margarine.

For business customers such as Pizza Hut, LU, and Peek Freans, the special line
of products is called the Masterline.

Dalda’s History
In united India people used to eat ghee derived from milk or animal fats Dada
&co. were the stockiest & distributors of vegetable oils one of the co. brand click
& lever’s interaction with Dada Co. insigned L in Dada and it was called as
“DALDA” the brand of Indo-pak.
 LEVELS OF A PRODUCT

Core Product

Cooking needs fulfilled (all products)

Actual Product

• Dalda cooking oil: good quality cooking oil for the health
conscious consumer with attractive yellow green tin with soya bean
pod symbol, vitamins A, D and E added.

• Dalda Banaspati Ghee: quality ghee in yellow tin packaging with

palm tree symbol.

• Dalda sunflower oil: very light oil for the extra-health conscious
consumer with emphasis on its light nature

• Planta cooking oil: ghee flavored cholesterol-free oil for health

conscious consumers. Has a bright blue yellow and green
packaging in tin

• Dalda Lajawab Its an emulsified vegetable oil for health conscious

and above this taste conscious with 18% of saturates and 60% poly
unsaturated.

Easy to open tins packaging applies to all the oils and ghee products.
Augmented Product

ODF products have little or no augmented features as repeated buying

and short-term use characterize their consumption. However, the
following are available for all the products:

• Easy availability due to an efficient distribution network.

• Warranty assured due to the fact that a company of international

repute with high quality standards makes the product.

• Other than cooking needs other nutrients such as vitamins A, D and

E and mineral calcium are also supplied by these products.
Dalda Cooking Oil: Has vitamins A, D and E, light consistency.

Dalda Banaspati: Has a low content of trans-fatty acids (0-5%)

and also contains less Poly-unsaturated and is hence healthier.
 MARKET

The set of all actual and potential buyers

of a product or service
Lever’s Interaction with Its Market

The target market of Lever comprises of health, quality and taste

conscious people, hence Lever’s commitment to tailor its products
according to its customers is evident from the fact that launching of
each and every product passes through the extensive stages of research
& development. The most recent example is of Dalda Lajawab that
was test marketed in Lahore and after successful acceptance it is now
available in Karachi and Islamabad.

Lever’s Generic Strategies

Market Penetration

Promotional activities are increased during Ramzan, Winters (wedding

season) and Moharram since more oil/banaspati is consumed during
these months.

Product Development

LBPL adds new features to its products every two years in order to
hold on to the existing customers and win new ones. For example, a
lighter colored, Ultra-refined Dalda was re-launched in November
1997. Apart from new features, LBPL also added a new product,
Sunflower Cooking Oil, to the ODF product line in 1991.

Note: Lever’s R&D has recently come up with Dalda Lajawab which
is elaborated in the Product Section

Market Development

One Litre packs of Dalda cooking oil were added in order to serve the
lower end of the market. Plus Levers is now promoting Blue Band not
only as a spread but also as a product that can be used for cooking,
baking, etceteras, hence targeting a separate market altogether.
 Market Segmentation, Targeting And Positioning

MARKET SEGMENTATION

LBPL segment their market on the following criteria:

Variable Typical Breakdowns

Geographic
Region Country-wise, province-wise, city-wise, etc.

Demographic
Age Under 25, 25 - 45, Over 45
Gender Male, Female
Income A - F Households with Class A households having
the highest income and Class F having the lowest.
Education Uneducated, Primary School, Matriculation,
Intermediate, Bachelors, Masters, PhD.

Psychographic
Social Class A - F Households - A being Upper class and F
being the lower class.

Behavioural
Purchase Occasion Regular occasion, special occasion
Benefits Sought Quality, service, economy
User Status Nonuser, ex-user, potential user, regular user
Loyalty Status None, medium, strong, absolute
TARGET MARKET

Dalda Cooking Oil, Dalda Banaspati, Dalda Sunflower Oil, Dalda

Lajawab and Planta Cooking Oil.

Variable Typical Breakdowns

Geographic
Region Dalda is a nation wide brand. Although its sales
are mainly in urban sind and urban Punjab.
Planta Cooking Oil: Mainly Punjab

Demographic
Age 25 - 45
Gender Traditional female housewife
Income Households A and B*
Households C** (Dalda Cooking Oil)
Education At least Matriculation

Psychographic
Social Class Households A and B*
Lifestyle and Personality Dalda Cooking Oil is mainly targeted at
housewives who are more or less in the 25 - 45
age group. This woman is traditional but
educated (at least completed her matric) and
loves taking care of her family. She is caring and
nurturing and wants the best for her family. She is
quality conscious and health conscious and will
be prepared to pay a premium price for good
quality products. She goes for cooking expertise,
good taste and high quality.

Dalda Banaspati is targeted at the housewife

who though wants the same taste as desi ghee
wants to provide her family with a healthier
alternative - though she is not totally obsessed
with health considerations.

Dalda Sunflower Oil is targeted at housewives

who go for extra health benefits and are extra
cautious about their family's health.
 Planta Cooking Oil is targeted at the housewife
who wants the taste of ghee but without the
harmful effects that can result because of the
consumption of ghee. She is health conscious and
wants to be accepted as a daughter-in-law, as a
wife and as a mother who provides her family
with good tasting food with nutritional value.

Dalda Lajawab is targeted at housewives who

are more Health conscious and also want to win
others by the Taste of food served.

*
The Class A households are the highest income groups and Class B
households are the middle-income groups. These are the household
who are willing to pay a premium price.
** by
introducing 1 Liter Poly Bags, LBPL is now also targeting the
lower end of the market i.e. the Class C Households.
PRODUCT POSITIONING

• Dalda cooking oil: The cooking expertise for the whole family.

• Dalda Banaspati ghee: Substitute for desi ghee but healthier with
the same great taste..

• Dalda sunflower oil: very light oil, providing extra health benefits.

• Planta cooking oil: Oil with the taste of Ghee - a healthy substitute
to ghee.

• Dalda Lajawab: vegetable oil with the taste never felt before and
having carry through flavor not for normal but for special cooking.
 Consumer Markets And Consumer Behavior
Characteristics Affecting Consumer Behavior
Culture

Oil and Ghee usage has always been very high in the Indo-Pak region.
Our cultural heritage as far as food is concerned consists of spicy and
fried food. Hence oil and ghee are important ingredients.

Subculture

Educated, health conscious consumers use Dalda Cooking Oil more in

the urban areas. The reasons differ for the various consumers for
example there are certain C class households who use Dalda because
it has been used in their families for ages - their mothers used it, their
grandmothers used it - it is a heritage carried down the generations.

Banaspati on the other hand is more common in Punjab where people

prefer the taste of Ghee. The more health conscious consumers
however prefer Planta Cooking Oil, which, though Oil, gives the same
great taste of Ghee.

Social Class

LBPL has divided the classes in to A to F households. Class A

households are the upper class, high-income groups. In these
household the product is usually bought by the servant (most probably
the cook). Class B households are the middle-income group. These are
the quality conscious, health conscious consumers. This is the class
most involved in buying the product. Class C households, though they
would not go for Dalda because it is a premium product may, however,
buy it because of brand loyalty as they have been using the product for
a long time. Classes D to F cannot afford the premium quality
products.
Social Groups
Family

Family plays an important part. In all the advertisements, be it

cooking oil or banaspati or margarine, emphasis has been placed on
the family. The housewife is shown to be appreciated by the whole
family including her in-laws, her husband and her children. By
providing them with food that both tastes and smells good, she wins
the hearts of her family members.

Role And Status

Being a premium quality product Dalda fulfills the esteem need since
the brand name is very strong and is also associated with a multi-
national company like LBPL.
 Consumer Behavior Roles

Dalda Cooking Oil, Dalda Banaspati, Dalda

Lajawab and Planta Cooking Oil

Initiator: Housewife
Influencer: Family, traditions, advertisements, friends, neighbours
Decider: Housewife
Buyer: Husband, Housewife, servant
User: Whole family

Competitive Position And Competitor Analysis

In Pakistan, LBPL’s main competitors in the foods section are local or

other specialized one-product multinationals. In home and personal
care, LBPL faces similar competition mainly from Procter & Gamble.

Main competitors for oils are Habib and Tullo. Both are local brands
with the former being a Market-Challenger for LBPL. Recently, Habib
has also launched sunflower oil in an attractive plastic can packaging.
LBPL mainly concentrates in keeping market share above Habib’s as
its strong financial backing and predominance in certain areas gives it
great potential to compete with it head-on.

Lever Brothers enjoy a good competitive position in the Pakistani

market. Below is an analysis of its relative standing in the ODF
division.

Competition In Oils And Fats

Lever Brothers have the largest market share in the cooking oils range
followed by Habib and then Tullo. Shama is dominant in the region
from Nawshera to Multan.

Dalda Cooking Oil is a premium priced oil. It provides 30% of Lever

Brother’s turnover and has 76% of the market share of cooking oils. It
is more dominant in Karachi and other southern cities. Habib and
Tullo oils are the main competitors for Dalda Cooking Oil. Habib’s
recent acquisition of the ISO 9002 award is yet another hindrance to
the growth of Dalda cooking oils in the quality conscious market. Soya
Supreme is also a potential competitor for Dalda and is relatively
popular in Karachi and other southern cities.

Dalda Banaspati ghee and Planta face competition from local Shama
(biggest competitor for Banaspati), Shahbaz, and Sufi brands as well
as desi ghee. The former is ghee itself whereas the latter is ghee
flavored oil positioned to lure health conscious people who grew up
using ghee. They are both very popular in Punjab where ghee
consumption is relatively high. Although the size of the market for
ghee is falling, the market share of Lever Brothers in this market is
rising. Right now the demand exceeds the supply.
The pricing of the major players according to direct competition is as
follows:

Brand Packaging Size Retail Price (Rs.)

Palm Cooking Oil Pricing
Dalda (LBPL) 5.50 ltr 345.00
2.50 ltr 180.00

Planta (LBPL) 5.00 ltr 345.00

2.50 ltr 180.00

Soya Supreme 5.00 ltr 332.00

3.00 ltr 206.00

Tullo 5.00 ltr 323.00

2.50 ltr 172.00

Habib 2.50 ltr (tin) 174.00

5.00 ltr (tin) 303.00

Sunflower Cooking Oil Pricing

Dalda (LBPL) 4.50 ltr 330.00
2.25 ltr 173.00

Tullo 4.50 ltr 340.00

2.25 ltr 175.00

Brand Packaging Size Retail Price (Rs.)

Banaspati
Dalda LBPL 5.00 Kg. Rs. 297.00
2.50 Kg. Rs. 180.00

Habib 5.00 Kg. Rs. 333.00

2.50 Kg Rs. 171.00

Tullo 5.00 Kg. Rs. 300.00

2.50 Kg. Rs. 148.00
 The Marketing Mix

The marketing mix is the set of marketing tools that work together to
affect the market. The four elements of the mix are, of course, the
product itself; the price at which it is offered for sale in the market;
the place or how the product is distributed; and promotion which
brings the product to the attention of the customer, arouses his/her
interest, builds up the desire for the product and finally moves him/her
to act/purchase the product.

The following section of this report will deal with the marketing mix
used by LBPL for its Dalda brand.
 PRODUCT

Anything that can be offered to the market

for attention, acquisition, use or consumption
that might satisfy a want or need
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 is true for almost all of the products in
this brand.

Product Attributes
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 Features

A product’s features can set it apart from the competition and

differentiate it for competitive advantage.

Dalda Cooking Oil: Ultra-refined cooking oil, with the best taste,
and also better consistency and coloring.

Dalda Banaspati: Lower in cholesterol than desi ghee and better

tasting.

Dalda Sunflower Oil: Lighter and healthier than most other oils
except perhaps Canola oil.

Dalda Lajawab: Emulsified vegetable oil with rich taste for special
cookings.

Planta Cooking Oil: Cooking oil which tastes like ghee for those
who want the best of both worlds.

The total customer value analysis helps us to determine what product

the consumer is getting in the end. It also helps somewhat in the
determination of the key features of LBPL’s ODF products.
 Product Services Personnel Image

Total Packs/Tins of Cookery Advisory Social and

Customer ODF products Program Service Esteem
Value needs met.

Product Design

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 Lajawab

Philosophy
“Research must be consumer focused and technology driven- a world
wide commitment”

Lever has once again demonstrated its compliance with its customer-
oriented policy by the extension of Dalda Lajawab in its current
product line, that’s a unique product with enriched features. It is
altogether a new product, packaged in a 1-liter polyjar. Company had
test marketed this product on 14th September 1998 in Lahore and after
three months company launched Dalda Lajawab in Karachi, Lahore
and Islamabad.

Oils and Ghees

Dalda C. Oil Dalda B.Ghee Dalda Sunflr. Dalda

Lajawab
Consistency Medium Heavy Very Light Light
Vitamins A, D, E A, D A&D
Packaging

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 labeled 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 colour since its introduction 50 years ago.

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:

BRANDS
LEVELS Dalda Planta
Premium quality, high The oil which tastes like ghee.
Attributes prestige, Best of both worlds.
Tasty food. Cooking ease. Health, nutrition and good
Benefits food.
Motherly love, tradition Motherly love, tradition
Values
Cooking expert, mother Young educated housewife also
Personality young mother
Brand Equity
Brand equity is the amount of power and value a brand name carries
in the market. Firms can capitalize on high brand equity to increase
profits and market share. Brand equity is measured on a three-level
scale i.e. awareness, preference and loyalty. Here’s how LBPL’s ODF
brands stand:

BRANDS
LEVELS Dalda Planta
Awareness High High

Preference Medium Medium

Loyalty High Medium

Dalda is probably the most widely known of all LBPL’s ODF products
and its equity in the market is high. Dalda’s positioning is that of
cooking expert and its equity has built up that image. Those who buy
Dalda remain more or less loyal to it. Some buy it because their
mothers and grandmothers bought it and some because they deem it
the most dependable. In either case the product does not disappoint
the purchaser.

Planta is targeted primarily at province of Punjab and specifically at

the bigger cities of Lahore and Faisalabad. The brand seems to be
doing very well in its target market and is building up its equity. It
derives most of its equity from the Lever name and from being a sister
brand of Dalda. Dalda Sunflower Cooking oil and Dalda cooking oil
have the target market in the Karachi, Lahore and Islamabad. Dalda
Lajawab is targeted towards A and B class people and is showing
repeat purchases.
Brand Strategy

Existing Product Category New Product Category

Line Extension
Existing Brand Name (Dalda Cooking Oil) Brand Extension
(Dalda Sunflower Oil)
Dalda Lajawab)
Multi-Brand New Brand
(Planta Cooking Oil) (Blue Band Margarine)

Product Support Services

Consumable items require little or no support services. They are items,

which do not require any complex instructions to use. As such there
are no support services offered for these products.

However, the Dalda cooking advisory and the TV program Dalda Ka

Dastarkhwan may be looked upon as a kind of support service, which
teach users, how to better use the oil/ghee they have purchased.

Product Life Cycle Stages

All of the products in the ODF division face different life-cycle stages
and understanding where each product stands is essential for the
formulation of correct strategy. These are the standings:

Dalda Banaspati Ghee: Low growth, Mature product, segment may

be drying up.

Dalda Cooking Oil: Near maturity, Medium growth. Still viable

Dalda Sunflower Oil: High growth possibilities in a small market.

Current situation not encouraging.

Planta Cooking Oil: Medium growth, still possibility of further

growth.

Dalda Lajawab: Introductory stage, possibility of rapid growth.

 RECOMMENDATIONS

• “I FEEL THAT DALDA NEEDS TO LAUNCH A

COMPLETE SET OF NEW MODERNIZED
BRANDS TO ATTRACT THE YOUNGER
FEMALE MARKET AS THEY ARE ALARGER
SEGMENT AND DALDA’S OLD STRATEGY AND
SLOGAN OF ‘JAHAN MAMTA WAHAN DALDA’
HAS TO BE CHANGED.”

• “CANOLA OIL HAS TO BE LAUNCHED

IMMEDIATELY AS IT IS THE MOST HEALTH
OIL AND IS GAINNG A LOT OF POPULARITY.”
 PRICE

The amount of money charged for a product

or service, or the sum of the values that
consumers exchange for the benefits of
having or using the product or service.
The Price

The chart provided below lists the prices of the various LBPL ODF
products in the market. (These are retail prices because dealers did
not reveal their trade prices).

Products Net Weight Packaging Retail Price

Dalda
Banaspati 5.00 kg Tin Rs. 330.00
2.50 kg Tin Rs. 160.00
Sun Flower 4.50 ltr. Tin Rs. 330.0
2.25 ltr. Tin Rs. 173.0
Cooking oil 5.00 ltr. Tin Rs. 305.00
2.50 ltr. Tin Rs. 160.00
Lajawab 1.00 ltr Poly jar Rs. 180.00
Planta 2.50 kg Tin Rs. 160.00
5.00 kg Tin Rs. 305.00
(Note: For lists of competitors’ prices please refer to the section on Competitive Position and
Competitor Analysis)

The Structure Of The Market

The market for ODF products seems like a monopolistically

competitive market. That means that it is a market in which many
buyers and sellers trade over a range of prices rather than a single
market price. The reason being that sellers can differentiate their
products from each other using quality, features, style and
accompanying services. The ODF market follows these criteria. There
are a very large number of buyers and also a large number of sellers.
Many of the sellers such as Habib, LBPL, Nayab, and Soya Supreme
etc. can differentiate their products from the rest with the different
features they offer. Soya Supreme offers UHT treated oil, Nayab sells
its ghee in Poly bags LBPL and Habib differentiate themselves from
the entire market on the basis of quality and so on.

Elasticity
The price elasticity of demand is the responsiveness of the quantity
demanded of a product to the change in its price. Simply put it shows
how consumers change their spending on goods when their prices go
up or down. ODF consumer products have relatively elastic demand
i.e. the amount of LBPL’s ODF products is relatively responsive to
price where a change of 5-10 rupees can affect demand. This is
 common to all consumer items in a reasonably competitive market.
Currently the pricing issue is a cause for concern at LBPL because the
economy has fallen victim to a prolonged recession and as a result the
rising inflation is taking a substantial bit out of LBPL’s demand curve.
Pricing policy is also being affected by duties being levied on the
import of edible oil. The industry is becoming increasingly competitive
with competitors undercutting prices causing consumers to shift their
spending patterns.

TOTAL CUSTOMER COST

Previously we had used the Total Customer Value concept to outline
what the consumer actually received as the product. Here is what the
customer ultimately pays to get the product:

Product Service Personnel Image

Total Price paid to Time spent in Energy spent in The psychic cost of
Customer buy LBPL’s finding finding/using not buying a foreign
Cost ODF products Dalda/Planta/ Dalda/ Planta/ ODF Brand
Blue Band Blue Band

Pricing Strategy
LBPL’s marketing objective is primarily to tap the upper-middle and
upper class segments. For this they need to achieve product quality
leadership and in doing so they incur high R&D costs. To cover these
costs they use value-based pricing and premium pricing strategies,
relying on consumers’ perceptions of their products’ values. Needless
say that to support an image/perception of high quality, they have to
provide high quality products as well. The promotion as discussed in
the coming section is also targeted mostly at the affluent section of the
market with the advertisements showing well-to-do families. The
cookery program is also to attract affluent housewives away from
satellite channel cookery programs to local TV where they can view
LBPL advertisements.
The following grid summarizes the above discussion on pricing
strategy:

Higher Price Lower Price

Higher Quality Premium Strategy Good-Value Strategy

(Value-based pricing)

Lower Quality Overcharging Strategy Economy Strategy

 RECOMMENDATIONS

• “ WE FEEL THAT DUE TO HIGH COSTS OF

INGREDINTS THE PRICES OF OIL CANNOT BE
CHANGED DRASTICALLY,AS THESE
DECISIONS ARE CONTROLLED BY
UNILEVER”.

• “WE SUGGEST THAT THE COMPANY GOES

WITH COST RECOVERY PRICING.”

• “IT SHOULD ELIMINATE SOME DOG BRANDS

LIKE DALDA CRISP.”

• “THE MARKET AND COMPETITRION SHOULD

BE ANALYZED TO SEE WHETHER
DISCOUNTS SHOULD BE GIVEN OR NOT.”
 PLACE

The set of people and firms involved in the

transfer of the title to a product as the
product moves from producer to ultimate
consumer or business user
Place
Lever Brothers Pakistan believes in synergy, that is a perfect blend of
all the components of the marketing mix. Proof lies in it having one of
the most efficient and largest distribution (networks) systems in our
country.

LBPL claims that it takes six weeks for the product to move from the
factory to the shelf. The product travels to the primary distributors
(one and half weeks), then to the secondary distributor (one and half
weeks) and finally to the trade level (three weeks).

These intermediaries play a highly important role in getting the

product to the target consumer. Easy access on a national level to both
urban and rural areas is vital if consumption targets are to be
achieved. By concentrating on its distribution efforts, it helps LBPL
promote its product and gain an advantage over its competitors.

CHANNEL LEVELS
LBPL aims to achieve maximum retail coverage and is not selective in
its distribution technique. It has no direct interaction with its
wholesalers and retailers as such but nonetheless, operates through a
network of about 1300 distributors located in 600 regions throughout
Pakistan.

Multiple distribution channels are used

Traditional Channels

Factory Depot Distributor Wholesaler

Retailer

Customer
FIELD FORCE

LBPL also has a large field that is engaged in helping it manage the
retail outlets and increasing its sales volume. The brand manager
himself goes on surprise visits to see if distribution is being properly
dealt with according to LBPL standards or not.

The distribution channel performs the functions of:

• Providing necessary market research and intelligence

information
• Developing and persuading consumers to take a product
offer
• Finding and communicating with prospective buyers
• Matching the offer according to the customers need and
informing the manufacturing concern about it
• Reaching an agreement regarding price and terms of sale
offer to facilitate possession.

Sales Setup
Sales Controller

GSM TMM

Branch Managers Sales Category

Manager

Area Managers

LDM or Territory Managers and JMs

COLLECTION PROCESS
LBPL has a unique system for the collection of its payments. The
system works in an organized manner that is; the distributor at the
head office, which in turn instructs the depot or the factory for
delivery, places an order. At the same time people at the depot prepare
the invoice and forward it to the head office. The head office then fills
in the signed cheque and sends it to the bank for encashment. Thus
your consignment of Dalda, Planta or Blue Band is paid for.

TERMS AND CONDITIONS

• No credit terms with the distributors
• Head office should have signed books of the distributor prior to
any transaction
• The check should not bounce at any point in time.

Conflicts With the Distributor

Conflicts arise when the distributor does not comprehend to the
specified standards of performance. Lack of efficiency on their part
could result in commodities not reaching retailers in smaller, far off
areas. The company may lose a portion of the customer this way.

Moreover, “hoarding” on the part of the distributor may result in

artificial shortage of the product, excess inventory lying in the
stockrooms resulting in high inventory hold costs.

LBPL does not want its retailers selling old tins of Dalda. They prefer
removing those from the shelf and replacing them with fresher, newer
ones so that the consumer receives the same pure and premium Dalda
oil on every purchase.

LBPL operates through many small distributors. Disagreements arise

when the distributor may insist on providing services to the
competitors as well. This can distribute demand for the LBPL product.

Thus, to safeguard the company against all these and other conflicts,
both the company and the distributor are bound by a legal contract
that specifies the necessary required terms and conditions of the trade.
Levers Distributorship Process

Lever divides the distributor’s territories with respect to population,

per capital income, high schools, middle schools, class, status, and
number of outlets. Lever has a complete idea of merchants,
wholesalers, superstores, and retailers. Forty to sixty outlets make one
section (minimum) in which a van should move. In this way a
distributors total territory is divided into six sections. Distributors in
big cities can have more than hundred sections.

Distributors are given 3% profit on sales plus redistribution cost, Octri

and bonuses.
Direct Dispatches from factory to distributors are made for Karachi
and to the distributors with the requirement of full truck.

Lever Depots are in Turnol, Faisalabad, Lahore and Multan.

 RECOMENDATIONS

• "WE FEEL THAT DALDA AND PLANTA

NEED TO INCREASE THE SHELF SPACE AS
THIS IS WHERE THEY ARE BEING
DEFEATED BY COMPETITION, THIS CAN BE
DONE BY OFFERING SUBSTANTIAL TRADE
DISCOUNTS AND HIGHER MARGINS”
 PROMOTION

Element in an organization’s marketing mix

that serves to inform, persuade and remind
the market of a product and the organization
selling it.
PROMOTION
LBPL being a market-oriented and customer-centered company its
marketing efforts are relatively the most.

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. They pay a lot
of attention towards this form of advertising. This includes print
advertisements, price cards, posters at vendor’s shops, sign boards,
buntings, flags etc.

Media Marketing
Lever uses different news papers and magazines in promoting Dalda
but the major emphasis is on advertisements, shown at the times loving
mothers are watching TV The ads also run at different times of the day
specially between 6.30 to 7.30.

DALDA

The punch line has remained the same through the ages, which has
turned out to be the identity of the product and has done wonders for
it.
It reads: “Jahan mamta wahan Dalda”

The message concentrates on aroma, taste and a happy cheerful

family. The family gives the mother credit for the great tasting food.
The theme was image building. It informs about the product and
persuades the consumers to buy it. Changes are made within four
months.

Re-launch: The color of the oil was lightened as sales weren’t picking
up especially in Karachi as buyers here preferred light oil. LBPL had
to, due to influx of other foreign brands (competitive strategy). The
message was the same though motherhood, love for the family and
health. Concentration was more on the color change.
Sunflower oil launched in 1991. It gets little support due to strong
competition from the likes of corn oil, canola oil, etc. therefore not
much of the advertising budget, rather promotion efforts are allocated
towards it. These ads emphasize lightness of the sunflower oil itself for
fitness conscious consumers. Its stronger markets are Karachi, Lahore
and Islamabad. Now Dalda Lajawab is being advertised heavily
towards its target market.

Sales Promotion
It also plays its role in promoting Dalda by arranging different events
like cooking contests, games and shows.

Personal Selling
There is no personal selling in case of Dalda brand, only business
products of ODF group are promoted and sold through this process.
When Dalda come up with consumer promotion it give the trade off to
the retailers.

Other mediums
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.

Besides this, the cookery program that runs every Tuesday evening is a
good promotion tactic as it shows use of the Dalda oil in a variety of
dishes. The viewer will also remember the brand name through the
message “Dalda Ka Dastarkhawn.” A housewife’s best friend in every
way.

The symbol and the color of the tin is also a good way to communicate
to the consumer who can’t read but can easily recognize the tin by the
palm leaf symbol or the yellow and green color scheme.

There is an advisory service for the convenience and help of the

consumer a cookbook to gift and keep. A videocassette of the televised
cookery show.
Sales promotion is done to increase sales build image of product in the
consumers so called “black-box” and develop a relationship with your
consumers.

Premiums are offered during Ramazan or offers like a free chat masala
packet, etc. to increase sales.

Different sizes (poly bag, plastic bottle, 2.5/ 5 Litre tin) are available
for convenience of the consumer and to target all segments of the
market. Packaging sent abroad to maintain standards. Brand
positioning used is about benefits of the product itself.
 RECOMMENDATIONS
• “WE FEEL THAT LBPL SHOULD ADVERTISE
THE ODF PRODUCTS ON SATELITTE AS WELL
AS ON PTV.”

• “WE ALSO FEEL THAT A SEPARATE RACK

SHOULD BE PROVIDED IN ALL RETAIL
STORES FOR DALDA LAJAWAB AS IT IS
FACING A LOT OF PROBLEMS.”

• “DALDA KA DASTAKHAWAN’ SHOULD BE

RELAUNCHED WITH AMORE MODERNIZED
LOOK WITH POPULAR MODELS APPEARIMG
IN IT.”

• “THE NEW MARKETING CAMPAIGN SHOULD

ALSO BE LAUNCHED WITH A NEW LOOK AND
VISION.”

• “THE PRODUCTS SHOULD BE PACKAGED IN

BOTTLES AND OTHER MORE CONVIENIENT
AND TRENDY CONTAINERS TO ATTRACT
CUSTOMERS.THIS WILL INCREASE
CUSTOMER SATISFACTION.”
SWOT ANALYSIS
STRENGHTS

1. DALDA’S products have the largest market share in Pakistan in

oil and banaspati market.

2. DALDA’S products have very high customer loyalty.

3. LBPL takes care in keeping the highest quality of the products it

produces.

4. The product range of the entire ODF division has very brand
awareness.

5. in the banaspati category DALDA is the only fat free brand.

.

WEAKNESSES

1. DALDA is a very old brand their has been very no change in

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

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

2. The market is now being 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.

3. The overall market of oil and banaspati is declining.

OPPORTUNITIES

1. The company can cash on dalda to introduce new products,

they have a large market share in the central and northern
areas of Pakistan.

2. People in the metropolitan areas are inclined towards branded

products.

3. the fat free banaspati is still popular and can be advertised to

gain the market in health conscious people.
BOSTON CONSULTANCY GROUP MODEL (BCG MATRIX)

Dalda is a cash cow and the other LBPL brands are milking resources from
it.
The entire product range alone accounts for 30 % profitability of the firm.
Dalda Lajawab is a dog .
Planta is a star.
Dalda sunflower oil is a question mark.

High
Market
Growth

Low
Market
Growth

High Market Low Market

Share Share
 Procedures and Methodologies

Product Price, Place and Promotion have been discussed.

Numerous retail outlets were visited to observe the visibility of

products in terms of display, print advertisement and also to evaluate

the values and benefits derived by the customers for various products

of Dalda brand.

Appointments with Mr. Chaudhary Mohammad Basharat (Group

Marketing Manager) and Mr. Shehzad Khan (Brand Manager) were

arranged to gather information.

Referring to the books of Marketing did further research about the

main topics.