Strategic Marketing

Management
Term Report
Dalda Foods
Submitted To:
Mr. Shahnawaz
Submitted By:
Muhammad Hassan - 9659
Sara Muneer 15245
Arsaan !aroo" 251#5
Hareem Shabbir 2$%#2
&ur' (a)ed 12#1#
M Mu'eeb Saah *sran - 2$2$+
T,-M -,./-T: 0ada !oods .a1e 1
Letter of Transmittal
Ma2 1#3 2+14
Mr. Shaha!a"
4ourse *nstru5tor
Strate1i5 Mar6etin1 Mana1ement
*"ra 7ni)ersit2
Sub#ect: Term Report
8e 9ee immense :easure in :resentin1 to 2our 1ood se93 the term
re:ort as :art o9 our 5ourse re"uirement. 8e 9ound this re:ort to be
tru2 5haen1in1 in man2 as:e5ts3 indeed )er2 interestin1 in reation to
the )arious inter:retationa and en1rossin1 e;er5ises. The re:ort
main2 re)o)es around the :ra5ti5es o9 Dalda Foods Mar6etin1
de:artment wor6in1 on Se1mentation3 4.<s3 &randin13 .rodu5ts3
4onsumer &eha)ior and their Mar6etin1 Strate1ies.
8e ha)e tried our e)e best to 5om:ete the re:ort with res:e5t to the
desired re"uirements. Howe)er3 i9 an2 e;:ainin1 is re"uired3 we woud
be honored to obi1e. =ind2 a55e:t this humbe e>ort o9 brin1in1
9orward our resear5h and ?ndin1s on the sub'e5t matter.
Sin5ere23
$ll %roup Members
T,-M -,./-T: 0ada !oods .a1e 2
$&'()L*D%*M*TS
This dissertation 5oud not ha)e been written without un5onditiona
e>ort o9 our 4ourse *nstru5tor Mr. Shahnawaz who not on2 ser)ed as
m2 su:er)isor but as a sour5e o9 ins:iration towards a5hie)in1 our 1oa
o9 :re:arin1 this re:ort.
!urther we a +6 @rou: members are 5ordia2 than69u o9 ea5h other<s
e>orts in 5om:iin1 this re:ort.
And ast but not the east3 we a 1rou: members are dee:2 9ee
esteemed to be a :art o9 *A-A 7B*C,-S*TD3 whi5h has 1i)en us an
o::ortunit2 to 1room ourse)es :ra5ti5a2 E materiaisti5a2 in e)er2
as:e5t o9 our a5ademi5s.
$ll %roup Members
T,-M -,./-T: 0ada !oods .a1e 3
+ntroduction
,istory
Fe)er &rothers .a6istan Fimited GF&.FH was ?rst in5or:orated in
.a6istan in 194# and wor6 started in the :resent 9a5tor2 in -ahim Dar
=han. 0AF0A &anas:ati was the ?rst :rodu5t 9rom that 9a5tor2 9oowed
b2 Fu; soa: in 1954.
The :resent =ara5hi ,dibes !a5tor2 was a5"uired in 1965 9rom AE& /i
*ndustries Ftd. Modernization and e;:ansion o9 the 9a5tor2 has been a
5ontinuin1 :ro5ess..
The head oI5e shi9ted 9rom -ahim Dar =han to =ara5hi in 1966. F&.F
mo)ed into the :ersona :rodu5ts business in 19#1. !urther
di)ersi?5ation on the 9oods side o9 the business has ta6en :a5e with
the introdu5tion o9 mar1arine and 5oo6in1 ois. The2 ha)e a seeds
business3 an industria deter1ents business3 and an i5e 5ream business.
0AF0A are the :ioneersJ in the 1hee and oi industr2 in .a6istan3 ha)e
a 1rowin1 5ate1or2 to dea with in the on1 run3 9a5tors su5h as
in5rease in :o:uation is e)ident to :ro)e that the industr2 has to
in5rease to meet the demands3 0AF0A bein1 mar6et dominator has
1ood :enetration o9 52-55K in the 1ee and oi se1ment3 2ear2
5onsum:tion is 14=1 :er 5a:ita and has o2a 5onsumers as 5om:an2
is in e;isten5e 9or more than 6+ 2ears. There are 5ertain 5om:etitors in
the se1ment but ha)in1 their 5onsumer e;:e5tation met ea5h time3
the2 a5hie)e 5onsumer )aue satis9a5tion reationshi:.
8ithin a short s:an o9 4 2ears 0ada !oods e;:anded its &rand .ort9oio
throu1h the aun5h o9 Man:asandL to meet the needs o9 the )ast
midde-in5ome se1ment. Man:asand &anasa:ti and 4oo6in1 oi was
aun5hed at end-2++5 and has 1rown to be5ome one o9 the most
9ormidabe :a2ers in the industr2.
The aun5h o9 Man:asandL to meet the needs o9 the )ast midde-
in5ome se1ment. Man:asand &anasa:ti and 4oo6in1 oi was aun5hed
at end-2++5 and has 1rown to be5ome one o9 the most 9ormidabe
:a2ers in the industr2.
To seize the o::ortunit2 arisin1 9rom 5han1in1 5onsumer
i9est2es and in5reased heath awarenessL the 5om:an2 entered
the :ure-oi se1ment in ear2 2++%.
*n a bid to e;:and 5a:a5it2 and 9urther stren1then :osition in the
:remium se1ment and enter the ower-in5ome se1mentL 0ada
T,-M -,./-T: 0ada !oods .a1e 4
!oods a5"uired the brand MTuoN E M.rideN 9rom 8azir Ai
*ndustries in (anuar2 2++%.
Toda2 0ada !oods has be5ome one o9 the ar1est 9oods !M4@
or1anizations in .a6istan eadin1 the o5a 5ate1or2 o9 oi and 9ats. *n
.a6istan3 0ada has now di)ersi?ed into 4anoa and /i)e /i :rodu5t
)ariants as we.
(ur Mission
M8e ma6e a :ositi)e di>eren5e in the i)es o9 :eo:e with our :rodu5ts
and ser)i5es.N
-alues
Stron1 businesses are buit on Trust3 A55ountabiit2 and an
,n)ironment that aows their .eo:e to rea5h their 9u :otentia. At
0ada we beie)e and abide b2 the 9oowin1 5om:an2 )aues when
5ondu5tin1 our da2 to da2 business.
.. +ntegrity
8e a5t with honest23 inte1rit2 and hi1hest ethi5a standards. /ur
:eo:e are e;:e5ted to adhere to the aws and re1uations :ertainin1
to their wor6 and 5om:2 with 0ada<s :rin5i:es and :oi5ies.
/. Fairness
8e wor6 with :eo:e in a wa2 that is 9air and 'ust. 8e treat 9air2 our
5ustomers3 su::iers3 sharehoders and the 5ommunities in whi5h we
o:erate.
0. Trust
8e 1i)e our em:o2ees 5om:ete autonom2 and beie)e that a our
em:o2ees adhere to our 5om:an2<s )aues. /ur sta6ehoders 5an be
sure o9 our honest2 when doin1 business with our em:o2ees and
5om:an2.
1. $ccountability
8e are a res:onsibe or1anization and 9ee a55ountabe to a our
sta6ehoders and the so5iet2 at ar1e.
2. 3eople reaching their full potential
T,-M -,./-T: 0ada !oods .a1e 5
8e :ro)ide o::ortunities to our interna and e;terna sta6ehoders 9or
se9-de)eo:ment and 1rowth. 8e en5oura1e entre:reneuria as we as
team s:irit. The 1rowth o9 the 5om:an2 shoud aso in5or:orate the
1rowth o9 the indi)iduas in the 5om:an2.
eeds4 )ants and Demands
7nderstandin1 the needs3 wants and demands o9 the tar1et 5ustomers
:a2s an im:ortant roe in an or1anizations su55ess.
eeds
Beeds are basi5a2 the states o9 9et de:ri)ation.
)ants
8ants are the 9orm human needs ta6e as sha:ed b2 5uture and
indi)idua :ersonait2.
Demands
Human wants that are ba56ed b2 the bu2in1 :ower are 5aed
demands.
Dalda foods 1i)e mu5h im:ortan5e to the needs3 wants and demands
o9 its tar1et 5ustomer<s. />erin1 the :rodu5t in di>erent :ri5e ran1es
5orres:ondin1 to ea5h s:e5i?5 5ass aso 9u?in1 the nutritious needs
o9 its 5ustomers.
T,-M -,./-T: 0ada !oods .a1e 6
&(S5M*R M$R'*TS $D &(S5M*R
B*,$-+(5R
&haracteristics $6ecting &onsumer Beha7iour:
&ulture
/i and @hee usa1e has awa2s been )er2 hi1h in the *ndo-.a6 re1ion.
/ur 5utura herita1e as 9ar as 9ood is 5on5erned 5onsists o9 s:i52 and
9ried 9ood.
Subculture
,du5ated3 heath 5ons5ious 5onsumers use 0AF0A 4oo6in1 /i more in
the urban areas. The reasons di>er 9or the )arious 5onsumers 9or
e;am:e there are 5ertain 4 5ass househods who use 0AF0A be5ause
it has been used in their 9amiies 9or a1es. *t is a herita1e 5arried down
the 1enerations.
&anas:ati on the other hand is more 5ommon in .un'ab where :eo:e
:re9er the taste o9 @hee. The more heath 5ons5ious 5onsumers
howe)er :re9er .anta 4oo6in1 /i3 whi5h3 thou1h /i3 1i)es the same
1reat taste o9 @hee.
Social &lass
F&.F has di)ided the 5asses in to A to ! househods. 4ass A
househods are the u::er 5ass3 hi1h-in5ome 1rou:s. *n these
househod the :rodu5t is usua2 bou1ht b2 the ser)ant Gmost :robab2
the 5oo6H. 4ass & househods are the midde-in5ome 1rou:. These are
the "uait2 5ons5ious3 heath 5ons5ious 5onsumers. This is the 5ass
most in)o)ed in bu2in1 the :rodu5t. 4ass 4 househods3 thou1h the2
woud not 1o 9or 0AF0A be5ause it is a :remium :rodu5t ma23
howe)er3 bu2 it be5ause o9 brand o2at2 as the2 ha)e been usin1 the
:rodu5t 9or a on1 time. 4asses 0 to ! 5annot a>ord the :remium
"uait2 :rodu5ts.
Family
T,-M -,./-T: 0ada !oods .a1e 7
!ami2 :a2s an im:ortant :art. *n a the ad)ertisements3 be it 5oo6in1
oi or banas:ati or mar1arine3 em:hasis has been :a5ed on the 9ami2.
The housewi9e is shown to be a::re5iated b2 the whoe 9ami2
in5udin1 her in-aws3 her husband and her 5hidren. &2 :ro)idin1 them
with 9ood that both tastes and smes 1ood3 she wins the hearts o9 her
9ami2 members.
Market (6ering
Mar6et o>erin1 is some 5ombination o9 :rodu5ts3 ser)i5es3 in9ormation3
or e;:erien5es o>ered to mar6et to satis92 a need or want.
The ma'or o>erin1s o9 0ada 9oods are -anaspati %hee and &ooking
(il. &esides these the 5om:an2 aso o>ers some be)era1es as we.
The ma'or o>erin1s are a)aiabe as a 5om:ete :rodu5t ine 5o)erin1
di>erent :ri5e and "uait2 ran1es.
Marketing Management (rientation
Mar6etin1 Mana1ement wants to desi1n strate1ies that wi buid
:ro?tabe reationshi:s with tar1et 5onsumers. &ut what :hioso:h2
shoud 1uide these mar6etin1 strate1iesO 8hat wei1ht shoud be 1i)en
to the interests o9 5ustomers3 the or1anization and so5iet2O Cer2 /9ten3
these interests 5onPi5t.
There are ?)e aternati)e 5on5e:ts under whi5h or1anizations desi1n
and 5arr2out their mar6etin1 strate1ies:
The .rodu5tion 4on5e:t
The .rodu5t 4on5e:t
The sein1 4on5e:t
The Mar6etin1 4on5e:t
The So5ieta Mar6etin1 4on5e:t
The Mar6etin1 at 0ada !oods is basi5a2 based on two o9 the abo)e
5on5e:ts: The .rodu5t 4on5e:t and The Mar6etin1 4on5e:t
T,-M -,./-T: 0ada !oods .a1e 8
3roduct &oncept
The idea that 5onsumers wi 9a)or :rodu5ts that o>er the most in
"uait23 :er9orman5e3 and 9eatures and that the or1anization shoud
there9ore de)ote its ener12 to ma6in1 5ontinuous :rodu5t
im:ro)ements.
Marketing &oncept
The mar6etin1 mana1ement :hioso:h2 that hods that a5hie)in1
or1anizationa 1oas de:ends on 6nowin1 the needs and wants tar1et
mar6ets and dei)erin1 the desired satis9a5tions better than
5om:etitors do.
0ada !oods 9oows the abo)e two 5on5e:ts as the2 are deain1 in the
"uait2 :rodu5ts that o>er the best in mar6et e)er sin5e their
estabishment. The2 tr2 to 1i)e new 9eatures in their :rodu5ts e.1. the2
are the ?rst 5om:an2 that introdu5ed -TF G)irtua2 trans9at 9reeH
te5hnoo12 in .a6istan. *nno)ation is their :ride. Aso the2 ha)e a
5om:ete .rodu5t Fine that 9u?s the needs and wants o9 :eo:e o9
e)er2 5ass in .a6istan.
Segmentation:
Mar6et se1mentation at the e)e o9 se1ment mar6etin1 wi be
:ra5ti5ed 9or 0ada in order to in5rease tar1etin1 :re5ision. *t is
re5o1nized that bu2ers di>er in their wants3 :ur5hasin1 :ower3
1eo1ra:hi5 o5ations3 bu2in1 attitudes3 and bu2in1 habits. 0ada wi
tr2 to isoate some broad se1ments that ma6e u: the mar6et 9or
di>erent items on its :rodu5t ine. !or e;am:e3 heath 5ons5ious
5onsumers 9or 0ada 5oo6in1 oi with )itamin ,. Simiar23 modern
wor6in1 women oo6in1 9or 5on)enien5e 9or the 0ada Pa)ored oi
mar6et Gthis ine e;tension wi be dis5ussed ater in detaiH.
%eographic Segmentation:
The mar6et 9or oi and banas:ati is hi1h2 5ommodit2 dri)en. Moreo)er3
the :er5ei)ed di>eren5e between )arious brands is )er2 itte.
There9ore3 0ada has to ensure eas2 a55ess and a)aiabiit2 or ese it
woud ose out to 5om:etitors.
%eographical locations:
=ara5hi3 Fahore3 H2derabad3 !aisaabad3 *samabad and Mutan.
The nei1hborin1 areas o9 these metro:oitan 5ities aso re:ort to the
abo)e mentioned si; bran5hes.
Demographic Segmentation:
The tar1et audien5e wi be :rimari2 9emaes startin1 9rom the a1e o9
2+ to round about 45 2ears o9 a1e.
T,-M -,./-T: 0ada !oods .a1e 9
!or 0ada banas:ati and 5oo6in1 oi the in5ome strata woud be -s.
4+++Q- :us. Howe)er3 the new Pa)oured ois woud be tar1eted at the
u::er strata o9 -s. 1+3+++Q- :us. As the oose oiQbanas:ati 5onsumin1
se1ment 5om:rises around 5+K o9 the mar6et3 there9ore3 0ada 'unior
woud 5ontinue tar1etin1 this se1ment.
3sychographic Segmentation:
The entire :rodu5t ran1e woud be tar1eted at 9emaes eadin1 a
trend2 and modern i9est2e. !a)oured ois woud es:e5ia2 be
mar6eted to wor6in1 women oo6in1 9or 5on)enient and smart re5i:es.
Beha7ioural Segmentation:
8e wi tr2 to in5rease the o55asions o9 oi and banas:ati 5onsum:tion.
Soon a9ter Moharrum the marria1e season wi be1in. This wi be a
1ood o::ortunit2 to 5ash on the seasonait2 e>e5t.
Throu1h the introdu5tion o9 Pa)ored ois3 we wi be indu5in1 new
usa1e :atterns.
&ustomer Relationship Management:
The 5ustomer reationshi: mana1ement is the o)era :ro5ess o9
buidin1 and maintainin1 :ro?tabe 5ustomer reationshi:s b2
dei)erin1 su:erior 5ustomer )aue and satis9a5tion.
The two buidin1 bo56s 9or :ro?tabe reations with 5ustomers are:
4ustomer Caue
4ustomer Satis9a5tion
&ustomer -alue:
A 5ustomer bu2s 9rom the ?rm that o>ers the hi1hest 4ustomer
.er5ei)ed Caue. &ustomer 3ercei7ed -alue is basi5a2 the
di>eren5e between tota 5ustomer )aue and tota 5ustomer 5ost.
&ustomer Satisfaction:
The e;tent to whi5h a :rodu5t<s :er5ei)ed :er9orman5e mat5hes a
bu2er<s e;:e5tations.
0ada !oods maintain stron1 5ustomer reations as the2 o>er the best
in "uait2 and :ri5e and :ro)ide best )aue and satis9a5tion to their
5ustomers. The2 :ro)ide a :rodu5t 5orres:ondin1 to ea5h mar6et
se1ment and satis92 them a55ordin1 to their demands. Sur)e2s are
o9ten 5ondu5ted to identi92 what the a5tua needs and demands o9
5ustomers are.
T,-M -,./-T: 0ada !oods .a1e 10
Market *n7ironment:
There are basi5a2 two 9a5tors that 5an a>e5t an or1anization<s
:er9orman5e in the mar6et it is o:eratin1. These are:
Mi5ro ,n)ironmenta !a5tors
Ma5ro ,n)ironmenta !a5tors
Micro *n7ironmental Factors
The 9a5tors that are 5ose to the 5om:an2 and that a>e5t the abiit2 o9
a 5om:an2 to ser)e its 5ustomers. There are si; di>erent 9a5tors that
are 1enera2 treated as MMi5ro ,n)ironmenta !a5torsN.
The 4om:an2
Su::iers
*ntermediaries
4om:etitors
4onsumer Mar6ets
.ubi5
The &ompany
As it is mentioned in the histor2 :ortion that 0ada !oods was basi5a2
a :ro'e5t o9 unie)er but unie)er de5ided to sae out this brand to
0ada !oods. At that time it was a :ro'e5t o9 4 biion ru:ees. *t were
T,-M -,./-T: 0ada !oods .a1e 11
the de)otion and the 5om:an2 :oi5ies that hed this brand ai)e in the
mar6et and durin1 4 2ears s:an o9 time the 5om:an2 :ro1ressed and
now it is a $1 biion :ro'e5t and aso the se5ond ar1est brand o9
.a6istan a9ter Beste.
+ntermediaries
4om:an2 does its mar6etin1 itse9. The :rodu5t<s ad)ertisement is
done throu1h an ad)ertisement ?rm MMa6an ,ri5sonN. &ut this
ad)ertisement is 'ust 9or :romotiona :ur:ose be5ause the 5om:an2 is
we estabished and aso its not in introdu5tor2 sta1es.
!or the :rodu5t 5ontainment the 5om:an2 in)o)es :h2si5a
distribution ?rms or handin1 distributors. *n Mutan re1ion Aa"ib &ros.
is wor6in1 as handin1 distributors and :ro)ides trans:ortation and
warehouse to su::2 1oods to reseers o9 Mutan re1ion.
This 9a5tor he:s out the 5om:an2 to :ro)ide 1oods to ?na 5onsumers
in a more eI5ient and or1anized manner.
Suppliers
*n mi5ro en)ironmenta 9a5tors we ta6e those su::iers into a55ount
that :ro)ide raw materia 9or the :rodu5t. *n 5ase o9 0ada &anas:ati
1hee the raw materia is M.am /iN that is bein1 trans:orted 9rom
Maa2sia. Another raw materia is the MtinsN in whi5h the ?na :rodu5t
is 5ontained. *t is aso outsour5ed.
.am /i is im:orted throu1h shi:ments and the :remium brands o9
this industr2 i6e MHabeebN and other brands are aso in)o)ed in this
im:ort and other sma brands :ur5hase the raw materia 9rom them.
The 5om:an2 :oi52 is to re)ise the rates a9ter e)er2 three months i9 it
is needed. *9 the :ri5e o9 raw :am oi de5reases in the internationa
mar6et and su::iers de5rease the :ri5e but the 5om:an2 has the
sto56 o9 the :rodu5t that was :ur5hased at hi1h rates then it wi 5reate
a :robem. *n this 5ase 5om:an2 handes it b2 maintainin1 the :ri5es
9or as on1 as the2 5an and then 1radua2 de5rease them.
Su::ies are awa2s a)aiabe in time and in5rease the a)aiabiit2 o9
the :rodu5t in the mar6et.
&ompetitors
There are basi5a2 two t2:es o9 5om:etitors 1ood and bad. @ood
5om:etitors are those that don<t s:oi the mar6et. The2 ma6e wor6 in
5oaboration o9 others. !or e;am:e i9 the2 ha)e to in5rease the rates
the2 ta6e de5ision with the other :remium brands so the2 don<t s:oi
the mar6et o9 other brand. 0ada is one o9 those 5om:etitors.
8hen we ta6 about the bad 5om:etitors these are the ones that s:oi
the mar6et. !or e;am:e the ma'or 5om:etitor o9 0ada &anas:ati 1hee
in Mutan re1ion is MSutan &anas:atiN the2 ta6e su5h de5isions
inde:endent2 and the retaiers ta6e their :rodu5t more be5ause this
earns them more :ro?t aso the2 don<t ha)e sense that 0ada is a
:remium brand whie Sutan is not. Aso when the2 de5rease their rates
T,-M -,./-T: 0ada !oods .a1e 12
the2 ta6e an inde:endent de5ision hen5e s:oiin1 the mar6et o9 our
:rodu5t.
&onsumer Markets
There are three t2:es o9 5onsumer mar6ets that are in)o)ed in the
sae o9 0ada &anas:ati. These are
-eseer Mar6ets
@o)ernment Mar6ets
*nternationa Mar6ets
Reseller Markets
0i>erent distributor ?rms bu2 the :rodu5t 9rom the 5om:an2 and sae
it to the whoesaers as we as retaiers and hen5e in5reasin1 the
:rodu5t<s sae )oume.
%o7ernment Markets
@o)ernment Mar6ets are in)o)ed in the sae o9 0ada &anas:ati e.1. in
the 9orm o9 utiit2 stores. *t aso in5reases the sae o9 the :odu5t.
+nternational Markets
0ada &anas:ati 1hee is sod in se)era sma 9orei1n 5ountries. This
:ro)ides new horizons 9or the sae o9 the :rodu5t.
3ublic
The :rodu5t has not mu5h issues n terms o9 :ubi5. (ust ?nan5ia :ubi5
and media :ubi5 are in)o)ed. &an6s ?nan5e the :rodu5t 9or the
im:ort o9 raw materia and issue the MF4NGFetter o9 4reditH.Media .ubi5
he: in the ad)ertisement and :romotion o9 the :rodu5t e.1. MMa6an
,ri5sonN.
T,-M -,./-T: 0ada !oods .a1e 13
Macro *n7ironmental Factors
These are the ar1e 9a5tors that a>e5t the mi5ro en)ironment.
0emo1ra:hi5 ,n)ironment
,5onomi5 ,n)ironment
Batura ,n)ironment
Te5hnoo1i5a ,n)ironment
.oiti5a ,n)ironment
4utura ,n)ironment
Demographic *n7ironment:
*t<s the stud2 o9 :o:uation in terms o9 size3 o5ation3 a1e3 o55u:ation3
1ender and other statisti5s. The :rodu5t is made 9or :eo:e o9 e)er2
a1e 1rou:3 e)er2 o55u:ation3 1ender and readi2 a)aiabe at an2
o5ation and is bein1 used b2 the :eo:e.
*conomic *n7ironment:
T,-M -,./-T: 0ada !oods .a1e 14
The e5onomi5 en)ironment 5onsists o9 9a5tors that a>e5t 5onsumer
:ur5hasin1 :ower and s:endin1 :atterns. These a>e5t the :rodu5t in
two wa2s
4han1es in in5ome
4han1in1 5onsumer s:endin1 :atterns
As 0ada &ans:ati 1hee is a :remium brand it is maintainin1 the
hi1hest :ri5e in the mar6et this :ri5e is bein1 maintained on the basis
o9 its hi1h "uait2. The 5om:an2 is :a2in1 ?)e thousand :er ton saes
ta; an in5rease o9 thousand ru:ees in this wi 5ause a 5 ru:ee :er 61
in5rease in the :ri5e. The bu2in1 :atterns o9 si1ni?5ant midde 5ass
5ustomers 5han1e immediate2 as this t2:e o9 5han1e o55urs. So the
5om:an2 tries its best to 6ee: the rates 5onstant.
atural *n7ironment:
The natura resour5es that are a)aiabe and are bein1 used as the raw
materia 9or manu9a5turin1 di>erent :rodu5ts :a2 an im:ortant roe.
As the raw materia 9or the 0ada &anas:ati is :am oi that is bein1
im:orted 9rom Maa2sia and is a natura resour5e is a)aiabe in the
9orms o9 ar1e 9orests and it 5an be re1enerated as it is a :ant so its
not a ma'or issue 9or the 5om:an2. /n the other hand the :outin1
en)ironment 5an 5ause serious im:a5ts in 9uture times.
Technological *n7ironment:
The te5hnoo1i5a en)ironment 5han1es ra:id2. A the toda2<s
5ommon :rodu5ts were not a)aiabe 1++ 2ears a1o or e)en $+ 2ears
a1o. The :rodu5t :rodu5tion at 0ada !oods 9oow new te5hnoo1i5a
:rin5i:es atest ma5hiner2 and hen5e 1i)e a :ure3 nutritious and
readi2 a)aiabe :rodu5ts to our 5ustomers.
&ultural *n7ironment
The 5utura en)ironment s made u: o9 institutions and other 9or5es
that a>e5t a so5iet2<s basi5 )aues3 :er5e:tions3 :re9eren5es and
beha)iors.
The 5om:an2 is we in a55ordan5e with the 5utura )aues./ur so1an
is M(ahan Mamta 8ahan 0adaN.A the :rodu5ts used in manu9a5turin1
the :rodu5t are Rhaa< and ha)e no issues with the 5utura )aues and
the :rodu5t is bein1 we a55e:ted b2 the 5ustomers.
T,-M -,./-T: 0ada !oods .a1e 15
&onsumer Markets 8 &onsumer Buying
Beha7ior
&onsumer Market
A the indi)iduas and househods who bu2 or a5"uire 1oods and
ser)i5es 9or :ersona 5onsum:tion. The three 5onsumer mar6ets in
whi5h 0ada 9oods is in)o)ed are des5ribed earier in the mi5ro
en)ironment :ortion.
&onsumer Buying Beha7ior
*t is basi5a2 the bu2in1 beha)ior o9 ?na 5onsumersSindi)iduas and
househods who bu2 1oods and ser)i5es 9or ?na 5onsum:tion.
*n 5ase o9 0ada there are se)era 5hara5teristi5s that a>e5t the
5onsumers bu2in1 beha)ior.
&haracteristics $6ecting &onsumers Beha7ior
T,-M -,./-T: 0ada !oods .a1e 16
4onsumers &eha)iors 5an be dri)en b2 Heath .riorit2.
8hen 5onsumers thin6 that it is better to s:end on "uait2 rather
than on medi5ine.
8hen 5ustomers are o2a to the :rodu5t and trust it.
8hen desire is best 5ombination o9 "uait2 and e5onom2.
8hen ?nan5ia resour5es are imited but 5ustomers as:ire to
u:1rade towards heath2 and "uait2 i9est2e.
8hen 5ustomers are wiin1 to stret5h a ru:ee or two 9or bu2in1 a
trustworth2 and e;:erimented brand.
Business Markets 8 Business Buying Beha7ior
Business Markets
&usiness Mar6ets are hu1e mar6ets that bu2 2our :rodu5t 9or 9urther
:ro5essin1 or resae.
Business Buying Beha7ior
The &u2in1 beha)ior o9 the or1anizations that bu2 1oods and ser)i5es
9or use in the :rodu5tion o9 other :rodu5ts and ser)i5es or 9or the
:ur:ose o9 resein1.
The bu2in1 beha)ior o9 0ada 9oods is dri)en b2 the 1o)ernment
:oi5ies. As the :ri5es o9 the raw materia in the internationa mar6et
rise3 the 5om:an2 5uts short its :ur5hases and waits 9or :ri5es to ower
down. The2 ha)e suI5ient sto56 9or ma6in1 enou1h :rodu5ts to meet
the demand o9 the 5ustomer.
Supplier Relationship:
The or1anization maintains 1ood reationshi:s with its su::iers. The
su::iers awa2s su::2 in time and ha)e a)aiabiit2 o9 raw materia as
demanded b2 the or1anization.
&ustomer Dri7en Marketing strategy:
Market Segmentation:
0i)idin1 a mar6et into smaer 1rou:s o9 bu2ers distin5t needs3
5hara5teristi5s3 or beha)ior who mi1ht re"uire se:arate :rodu5ts or
mar6etin1 mi;es.
Target Marketing:
The :ro5ess o9 e)auatin1 ea5h mar6et se1ment<s attra5ti)eness and
see5tin1 one or more se1ments to enter.
Market 3ositioning:
T,-M -,./-T: 0ada !oods .a1e 17
Arran1in1 9or a :rodu5t to o55u:2 a 5ear3 distin5ti)e3 and desirabe
:a5e reati)e to 5om:etin1 :rodu5ts in the minds o9 tar1et 5onsumers.
Market Segmentation by Dalda Foods
3remium $ Market:
DFL9s Brand:
3remium B Market:
DFL9s Brand:
Mid 3rice $ Market:
DFL9s Brand:
Mid 3rice B Market:
DFLs Brand:
Throu1h this di)ersi?ed :rodu5t ran1e and e>e5ti)e mar6et
se1mentation 0ada is 5o)erin1 ea5h and e)er2 se1ment o9 the
T,-M -,./-T: 0ada !oods .a1e 18
mar6et. As it is a 9ood item so there is no s:e5i?5 mar6et area that
0ada 9oods is 9o5usin1 rather it is :ro)idin1 heath and nutrition to a
se1ments o9 the mar6et in a>ordabe :ri5es. *t is :ositioned most
e>e5ti)e2 in the mar6et as 5om:ared to its 5om:etitors do.
3roducts
Dalda -TF Banaspati
0ada<s 'ourne2 into the i)es o9 its 5onsumers started amost 6+ 2ears
a1o when 0ada<s 9ood s5ientists :ioneered a wa2 o9 :reser)in1 the
1oodness o9 )e1etabe ois in a manner whi5h not on2 :reser)ed the
T,-M -,./-T: 0ada !oods .a1e 19
taste o9 desi 1hee but was a heathier aternati)e 5oo6in1 medium-
thus 0ada &anas:ati was born.
/)er time 6ee:in1 in ine with the 5han1in1 5onsumer needs 0ada
&anas:ati e)o)ed to be5ome 0ada CT! &anas:ati. 0ada CT!
&anas:ati is the on2 banas:ati in .a6istan whi5h is Cirtua2 Trans-9ats
!ree GCT!H.
Trans-9ats 5ause si1ni?5ant and serious owerin1 o9 H0F G1oodH
5hoestero and a si1ni?5ant and serious in5rease in F0F GbadH
5hoesteroL ma6e the arteries more ri1idL 5ause ma'or 5o11in1 o9
arteriesL 5ause insuin resistan5eL 5ause or 5ontribute to t2:e 2
diabetesL and 5ause or 5ontribute to other serious heath :robems.
This is wh2 a wordwide 5am:ai1n a1ainst Trans-9ats has ed to a ban
on its use in ma'or de)eo:ed 5ountries. Howe)er su5h reaization in
5ountries i6e .a6istan wi ta6e a whie but 0ada 5om:ies with
wordwide "uait2 standards and hen5e 0ada &anas:ati is Cirtua2
Trans-9ats !ree sin5e 1999.
An2 ordinar2 banas:ati brand 5ontains u: to 25K o9 these harm9u
Trans-9atsL howe)er 0ada usin1 its +nternational Technology and
*:pertise has redu5ed the amount o9 Trans-9ats in its banas:ati to ess
than 1K. This ma6es 0ada CT! &anas:ati the heathiest banas:ati
a)aiabe in .a6istan.
Dalda &ooking (il
Bot on2 was 0ada the :ioneer in banas:ati but aso 6ee:in1 in mind
the 5han1in1 i9est2e o9 its 5onsumers 0ada introdu5ed 5oo6in1 oi to
the mar6et.
0ada 4oo6in1 /i is a :remium bend o9 5anoa3 sunPower and
so2bean oi3 whi5h is then h21ieni5a2 re?ned to :er9e5tion usin1
0ada<s state o9 the art :ant and +nternational Technology and
*:pertise. This :ro5ess o9 re?nin1 is s:e5ia2 desi1ned to :reser)e
the natura 1oodness o9 ea5h o9 the indi)idua ois in the bend. Hen5e
the o:timum 1oodness o9 ea5h 5anoa3 sunPower and so2bean rea5hes
the 5onsumers.
0ada 4oo6in1 /i is 1++K 5hoestero 9ree and 5ontains Citamin A and
T,-M -,./-T: 0ada !oods .a1e 20
0 to1ether with Citamin , whi5h :rote5ts 9rom s6in and heart diseases.
*t aso 5ontains essentia 9att2 a5ids3 /me1a $ and 6 and natura
antio;idants that boost the immune s2stem o9 the bod2. Thus 9ood
5oo6ed in 0ada 4oo6in1 /i is not on2 dei5ious but aso e;5e:tiona2
nutritiona.
3lanta &ooking (il
*n its "uest 9or inno)ation 0ada introdu5ed .anta 4oo6in1 /i 9or
5onsumers who were reu5tant to shi9t to 5oo6in1 oi 9rom desi 1hee.
Thus .anta 4oo6in1 /i be5ame the on2 5oo6in1 oi to 5ontain the
1oodness o9 oi and the dee5tabe taste o9 1hee. *t is a bend o9
so2bean3 5anoa and sunPower oi and is 1++K 5hoestero 9ree. *t aso
5ontains Citamins A and 0. This ma6es 9ood 5oo6ed in .anta 4oo6in1
/i tast2 as we as )er2 heath2.
Dalda &anola (il !ith -itamin 3o!er
0ada aso e;:anded its :rodu5t ran1e to in5ude 0ada 4anoa /i with
Citamin .ower. ,;tra5ted 9rom 9resh 5anoa seeds3 0ada 4anoa /i
with Citamin .ower not on2 :ro)ides the bene?ts o9 4anoa oi but aso
additiona nutrients to 1i)e 5onsumers e;tra ener123 su:erior heath
and 1reat taste essentia 9or a modern and demandin1 i9est2e.
*t is these :ro:erties and the additiona Citamin .ower in 0ada 4anoa
/i whi5h ma6e it a mu5h su:erior :rodu5t and an idea 5hoi5e 9or
4anoa oi 5onsumers.
T,-M -,./-T: 0ada !oods .a1e 21
Dalda (li7e (il
Another no)e :rodu5t b2 0ada is 0ada /i)e /i. 0ada /i)e /i is
:a56a1ed and im:orted 9rom S:ain. 7sin1 its +nternational
Technology and *:pertise3 0ada ensures that its oi)e oi is
e;tra5ted 9rom the :urest and 9reshest hand :i56ed oi)es 9rom the
9ertie ands o9 S:ain3 whi5h are then re?ned to :er9e5tion usin1 the
most ad)an5ed +nternational Technology under strin1ent "uait2
standards within S:ain. 0ada /i)e /i is 1++K 5hoestero 9ree and
enri5hed with e;5e:tiona Shi9a and heath bene?ts o9 oi)es3 and
9orti?ed with additiona Citamin A and , to :ro)ide its 5onsumers< i9e
with the smie and s:ar6e that it deser)es. !ind out more about the
bene?ts o9 0ada /i)e /i.
0ada /i)e /i is a)aiabe in three )ariants ,;tra Cir1in3 .ure3 and
.oma5e. The di>eren5e between the )ariants o9 0ada /i)e /i is their
a5idit2 e)e3 whi5h a>e5ts most2 taste and not nutritiona 5ontent.
Dalda (li7e (il *:tra -irgin
0ada /i)e /i ,;tra Cir1in is 9rom the ?rst :ressin1 o9 the oi)es and
has a stron1 Pa)or and aroma with a natura )itamins. *t is natura2
enri5hed with )itamins and anti-o;idants whi5h ma2 he: :re)ent
a1ainst heart disease and 5an5er.
Dalda (li7e (il 3ure
0ada /i)e /i .ure is a bend o9 re?ned and )ir1in oi)e oi. *t is
re?ned usin1 0ada<s *nternationa Te5hnoo12. *t has a medium Pa)or
and aroma and 5ontains natura )itamins.
Dalda (li7e (il 3omace
0ada /i)e /i .oma5e is re?ned and ?tered usin1 0ada<s
*nternationa Te5hnoo12. *t has a i1ht Pa)or and aroma. *t has
additiona )itamin A as we as natura )itamins.
3ricing
T,-M -,./-T: 0ada !oods .a1e 22
4om:anies use di>erent :ri5in1 strate1ies to :osition their brand
e>e5ti)e2 in the mar6et. 0ada 9oods ha)e set :ri5es that are easi2
a>ordabe b2 its tar1et 5ustomers.
The Structure of the Market
There are a )er2 ar1e number o9 bu2ers and aso a ar1e number o9
seers. So2a Su:reme o>ers 7HT treated oi3 Ba2ab ses its 1hee in
.o2 ba1s F&.F and Habib di>erentiate them 9rom the entire mar6et on
the basis o9 "uait2 and so on.
*lasticity
/0! 5onsumer :rodu5ts ha)e reati)e2 easti5 demand i.e. the amount
o9 F&.F<s /0! :rodu5ts is reati)e2 res:onsi)e to :ri5e where a 5han1e
o9 5-1+ ru:ees 5an a>e5t demand. This is 5ommon to a 5onsumer
items in a reasonab2 5om:etiti)e mar6et.
3ricing strategy:
F&.F<s mar6etin1 ob'e5ti)e is :rimari2 to ta: the u::er-midde and
u::er 5ass se1ments. !or this the2 need to a5hie)e :rodu5t "uait2
eadershi: and in doin1 so the2 in5ur hi1h -E0 5osts. To 5o)er these
5osts the2 use )aue-based :ri5in1 and :remium :ri5in1 strate1ies3
re2in1 on 5onsumers< :er5e:tions o9 their :rodu5ts< )aues.
The 9oowin1 1rid summarizes the abo)e dis5ussion on :ri5in1
strate12:
3rice ranges in 3remium $ Segment:
.ri5e 9or banas:ati 1hee ran1es 9rom 115-1$+Q61
.ri5e 9or 4oo6in1 /i ran1es 9rom 125-14+Qitre
3rice ranges in 3remium B Segment:
.ri5e 9or banas:ati 1hee ran1es 9rom 1++-115Q61
.ri5e 9or 4oo6in1 /i ran1es 9rom 11+-125Qitre
3rice ranges in Mid 3rice $ Segment:
.ri5e 9or banas:ati 1hee ran1es 9rom 95-1++Q61
.ri5e 9or 4oo6in1 /i ran1es 9rom 1++-11+Qitre
3rice ranges in Mid 3rice B Segment:
.ri5e 9or banas:ati 1hee ran1es 9rom #5-95Q61
T,-M -,./-T: 0ada !oods .a1e 23
.ri5e 9or 4oo6in1 /i ran1es 9rom 9+-1++Qitre
3lacing:
Fe)er &rothers .a6istan beie)es in s2ner123 that is a :er9e5t bend o9
a the 5om:onents o9 the mar6etin1 mi;. .roo9 ies in it ha)in1 one o9
the most eI5ient and ar1est distribution Gnetwor6sH s2stems in our
5ountr2.
F&.F 5aims that it ta6es si; wee6s 9or the :rodu5t to mo)e 9rom the
9a5tor2 to the she9. The :rodu5t tra)es to the :rimar2 distributors Gone
and ha9 wee6sH3 then to the se5ondar2 distributor Gone and ha9 wee6sH
and ?na2 to the trade e)e Gthree wee6sH.
These intermediaries :a2 a hi1h2 im:ortant roe in 1ettin1 the
:rodu5t to the tar1et 5onsumer. ,as2 a55ess on a nationa e)e to both
urban and rura areas is )ita i9 5onsum:tion tar1ets are to be
a5hie)ed. &2 5on5entratin1 on its distribution e>orts3 it he:s F&.F
:romote its :rodu5t and 1ain an ad)anta1e o)er its 5om:etitors.
&hannel le7els:
*t has no dire5t intera5tion with its whoesaers and retaiers as su5h
but nonetheess3 o:erates throu1h a networ6 o9 about 1$++
distributors o5ated in 6++ re1ions throu1hout .a6istan.
Field Force
The distribution 5hanne :er9orms the 9un5tions o9:
.ro)idin1 ne5essar2 mar6et resear5h and intei1en5e in9ormation
0e)eo:in1 and :ersuadin1 5onsumers to ta6e a :rodu5t o>er
!indin1 and 5ommuni5atin1 with :ros:e5ti)e bu2ers
Mat5hin1 the o>er a55ordin1 to the 5ustomers need and in9ormin1
the manu9a5turin1 5on5ern about it
-ea5hin1 an a1reement re1ardin1 :ri5e and terms o9 sae o>er to
9a5iitate :ossession.
0ada 9oods ha)e their own distribution strate12. The2 ha)e di)ided the
sho:6ee:ers into ?)e ma'or 5ate1ories whoesaers3 A3 &3 4 and 0 and
ha)e s:e5i?ed the minimum S=7<s that the2 shoud :osses.
$d7ertisement
The 4om:an2 does its mar6etin1 itse9. The2 don<t ha)e an2
or1anization in)o)ed 9or mar6etin1 5on5erns. The ad)ertisement is
done b2 an ad)ertisement or1anization MMa6an ,ri5sonN.
T,-M -,./-T: 0ada !oods .a1e 24
D$LD$ S)(T $nalysis
Strenghts:
0AF0A<S :rodu5ts ha)e the ar1est mar6et share in .a6istan in oi
and &anas:ati mar6et.
0AF0A<S :rodu5ts ha)e )er2 hi1h 5ustomer o2at2.
F&.F ta6es 5are in 6ee:in1 the hi1hest "uait2 o9 the :rodu5ts it
:rodu5es.
*n the &anas:ati 5ate1or2 0AF0A is the on2 9at 9ree brand.
)eaknesses:
0AF0A is a )er2 od brand3 there has no 5han1e in :a56a1in1 sin5e
a1es3 :eo:e 9ee that the new better :a56a1ed brands ha)e better
:rodu5ts.
Threats:
&ABAS.AT* and /*F is aso sod oose to a ar1e rura mar6et.
The mar6et is now entered b2 So2a bean 5anoa and sunPower ois3
these are bein1 bou1ht b2 heath 5ons5ien5e :eo:e this wi ead to
0AF0A<s and .anta<s de5ine in mar6et share.
The o)era mar6et o9 oi and banas:ati is de5inin1.
(pportunities:
The 5om:an2 5an 5ash on 0AF0A to introdu5e new :rodu5tsL the2
ha)e a ar1e mar6et share in the 5entra and northern areas o9
.a6istan.
.eo:e in the metro:oitan areas are in5ined towards branded
:rodu5ts.
The 9at 9ree &anas:ati is sti :o:uar and 5an be ad)ertised to 1ain
the mar6et in heath 5ons5ious :eo:e.
T,-M -,./-T: 0ada !oods .a1e 25
Distinction
*S/ 5erti?5ations 9or :er9orman5e on matters o9 Auait23 ,n)ironmenta
4are and Heath and Sa9et2 are inPuen5in1 the wa2 5om:anies do
business around the 1obe. *n de)eo:in1 5ountries i6e .a6istan these
are 9re"uent2 used to he: raise standards and im:ro)e
5om:etiti)eness. *n de)eo:ed 5ountries it is 9ast be5omin1 a 6e2
5onsideration in doin1 business to business transa5tions. 0ada<s
o:erations 5an thus be ben5hmar6ed a1ainst or1anizations o9
internationa re:ute.
0ada<s 5ommitment to "uait23 en)ironmenta and 5or:orate so5ia
res:onsibiit2 is si1ni?ed 9rom the 9a5t that it is the on2 edibe oi and
9ats brand whi5h has:

&ureau Ceritas Auait2 G&CA*H 5erti?5ation o9:
o *S/ 9++1-2+++ 9or Auait2
o *S/ 14++1-2++4 9or ,n)ironment
o *S/ 22+++-2++5 9or !ood Sa9et2
o /HSAS 1#++1-1999 9or /55u:ationa Heath and Sa9et2
HA44. 5erti?5ation 9or Hazard Ana2sis and 4riti5a 4ontro .oints
0ada is the on2 Bationa &rand:
That has a Cirtua2 Trans-9at !ree GCT!H &anas:ati sin5e 1999
T,-M -,./-T: 0ada !oods .a1e 26
8ith enhan5ed )itamins as :er 7B,S4/<s re5ommendationL
whi5h ne5essitates the addition o9 more "uantit2 o9 )itamins3
than an2 other brand in .a6istan
8hi5h is bein1 e;:orted to ,7 5ountries be5ause it meets
*nternationa Auait2 Standards
8hen 2ou )isit the 0ada !oods 9a5tor23 2ou wi immediate2 noti5e
the beauti9u 1reen awns irri1ated b2 the re525ed water 9rom the in-
house ,Tuent Treatment .ant 9or sustainabe use o9 natura resour5es.
,n)ironmenta .rote5tion &2aws state that it is mandator2 9or edibe
oi and 9ats 9a5tories in .a6istan to ha)e an eTuent treatment :ant so
that the en)ironment is not dama1ed b2 the eTuents 9rom the 9a5tor2.
Howe)er 0ada is the on2 brand to ha)e in)ested substantia2 in
order to a5"uire this :ant and maintain it. This is 0ada<s humbe
5ontribution towards 5onser)in1 and sustainin1 this natura resour5e.
The treated eTuent water 9rom the ,Tuent Treatment .ant at 0ada
meets the Bationa ,n)ironmenta Auait2 Standards GB,ASH and is
used 9or irri1ation :ur:oses within the 9a5tor2 on2.
T,-M -,./-T: 0ada !oods .a1e 27