History of Dalda

“DALDA FOODS PVT.LTD”

LETTER OF TRANSMITTAL

May 10, 2011

Dr.M.A.k CHISHTYIntructorStrategic ManagmentIQRA UniversityKarachi

Acting in accordance with the received directions, the report on “Strategic Management” as project is submitted hereby.

The report presents a review of the Company current practices. For preparing this report I have gathered information by my friends and my respected teacher. The report also includes researches through internet. I have tried my best to gather best possible information for this report. I believe that this report will not only provide you with all necessary information pertaining to the topic but will also cover all aspects and hopefully meet your expectations. It will be my pleasure to provide you further detail if required.

Regards,

SYEDA SAIRA SAOODRAJA SHAMRAIZ

ACKNOWLEDGEMENT

STRATEGIC MANAGEMENT Page 1


We would like to offer our humble gratitude to Allah Almighty, the most Gracious and the most Merciful, who gave us strength and enabled us to achieve our goals.

The main purpose of the project is to know about the Practical implementation of all the concepts we studied in the Strategic Management course.

All the material that has been included in this report is based on data/information gathered from various sources and is based on certain assumptions. Although, due care and caution has been taken to compile this report but the contained information may vary due to any change in any of the concerned factors, and the actual results may differ substantially from the presented information.

We are heartily thankful to our SM knowledge Bank teacher; Dr M.A.K CHISHTY whose constant guidance and support enabled us to develop an understanding of the subject which ultimately helped us in making of this project.

Dalda History and Overview:

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 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 indepth consumer understanding and maintainence 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. 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

Company Profile

Basic InformationCompany Name: Dalda Foods (Pvt.) Limited

Business Type: Manufacturer

Product/Service

(We Sell):Edible fats

Number of Employees: 101 - 500 People



Total Annual Sales Volume: US$5 Million - US$10 Million

Our Mission:

We make a positive difference in the lives of people with our products and services.

Our Principles:

Strong businesses are built on the principles of Trust,Accountability and an Environment that allows their people to reach their full potential. At Dalda Foods we live by the following principles when conducting our day to day work.

Integrity:

We act with honesty, integrity and highest ethical standards.We adhere to the laws and regulations pertaining to our workand with Dalda Food's principles and policies.

Fairness:

We work with people in a way which is fair and appropriate. We treat fairly our customers, suppliers, shareholders and the communities in which we live and work.

Trust:

People can trust us to fulfill our commitments. At the same time we also trust others to be true to their commitments to us.

Accountability:

Along with trust comes accountability – we believe all of us are uniquely created with the ability to reason, make decisions and be held accountable for our commitments and actions. We hold ourselves accountable for fulfilling our responsibilities and commitments.

People reaching their full potential:



Each one of us is creative, thoughtful, trustworthy, fair, capable of making important decisions and responsible for our actions; however we believe each one of us is also different and has unique potential and talents to make positive contribution to the organization and the world. We strive to work together in a manner so that each one of us can develop in the organization and reach to our full potential.

Dalda's Commitment to Quality:

For over seventy years Dalda's name is synonymous with Quality. Dalda Foods' brands are the only vegetable ghee/banaspati products in Pakistan which are trans-fat free and meet the most stringent of international quality standards. Our products preserve the natural goodness of vegetable oils and are enriched with extra vitamins.

Dalda's commitment to quality, care for environment and social responsibility is evident from the fact that it is the only edible oil and fats/ghee company is Pakistan which has four ISO certifications:

•ISO 9001-2008 for Quality Management System

•ISO 22000-2005 for Food Safety Management System

•ISO 14001-2004 for Environment Management System

•OHSAS 18001-2007 for Occupational Health and Safety Management System


Environmental Care and Sustainability:

Dalda Foods conducts its business in a socially aware and responsible manner taking care of the environment and the communities in which we live and work Dalda Foods commitment to the care for environment, social responsibility and conducting its business in environmentally sustainable matter is evident from the fact that it is the only banaspati and cooking oil company in Pakistan which its own effluent treatment plant at its manufacturing site. The used water is treated and brought to the level of purity where it is reused in meeting the irrigation needs of the factory green belts and gardens.


Sales and Distribution Network:

Dalda Foods is perhaps one of the few companies in Pakistan which has a sales and distribution network covering the length and breadth of the whole country.

Our salesmen call upon more than 100,000 shops every day in the cities, towns and villages of the country. To support this extensive coverage of the retail and wholesale outlets as well as institutional customers Dalda Foods maintains 11 Distribution Centers and a network of over 400 Distributors.

Current Market Situation:

The market is highly commodity driven and the consumers are extremely price sensitive. The final selling price of edible oil and banaspati is highly dependant upon the prevailing world oil prices. So Dalda has to make sure that it maintains a balance with the fluctuating world oil prices. This is the reason why Dalda uses replacement cost pricing rather than stock recovery.

Competition:

Basically the branded market of edible oil and banaspati is dominated by four players namely; Dalda, Habib, Tullo and Soya Supreme. There are approximately 172 registered banaspati brands. Besides there is a very large unquantifiable unbranded market selling banaspati, unrefined soybean, rapeseed and cottonseed oil loosely to the rural and lower income consumers. Therefore it becomes highly difficult to estimate the market size.

In the banaspati market, Dalda VTF is a sure shot market leader. However, it is a market challenger in the cooking oil category lending the first place to Habib cooking oil. If Planta is considered along with Dalda then accounts of dalda is the highest for sales volume.

Consumers all over the country have great trust in the brand name of Dalda, which is considered to be a very traditional brand. The brand awareness and recall is 97%. It enjoys hard core loyalty in the 35+(female) age bracket. However, Dalda is weak in the younger segment, here it suffers at the hands of boredom. In this younger segment Tullo gold and Habib are the in brands because their packaging is trendy and the attire which they portray in their promotional campaigns is very young and energetic.



Another problem is that Dalda Foods Pvt Ltd dictates the ingredients and the quality control terms for the entire product range of Dalda. This increases the final selling price, making it a premium product. Dalda Pvt Ltd has no leverage to come up with cheap ingredient brands. Therefore, they lose out to competitors like Habib who has Habib Nayab and Habib Handi catering to the lower income segment. 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.

BRANDS OF DALDA:

DALDA PLANTA MAN PASAND

Planta Cooking Oil



Planta Cooking Oil is a unique offering for consumers who are reluctant to shift to cooking oil from desi ghee. It is the only cooking oil to contain the goodness of oil and the delectable taste of ghee. A blend of soybean, canola and sunflower oil, it is 100% cholesterol free and contains vitamins A & D.

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 & hygiene standards. Enriched with Vitamins A & D, it is a premium blend of Canola, Soybean and Cottonseed Oil and is best suited for all types of cooking.It is economical in use and 100% cholestrol free, helping you provide your family the health and care they deserve.

Manpasand Banaspati

Manpasand Banaspati is produced using the most advanced technology and fully automatated plant under stringent international quality and health standards; a 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.Economical in use and emphasized with Vitamins A & D, Manpasand Banaspati ensures healthy and great tasting food for your family.

Swot Analysis:

Strenghts:

Daldas greatest strength is the blind trust of the consumers in the brand.

The entire product range has extremely high brand awareness.

The brand recall is as high as 97%.

The quality of the product is maintained at high standards.

In the Banaspati category its the only Trans fat free brand available.

Dalda is the largest player, closely followed by Habib.

Weakness:



The brand suffers with an image problem. It is perceived as an old brand and the consumers are bored with it.

In the case of Dalda it poses great difficulties, as it is a regional brand catering to Pakistani and Indian markets only.

There has been no innovative packaging change since 1994.

Opportunities:

Dalda can cash up the banaspati market in Northern and Central areas of Pakistan where there is a large consumption especially by the rural and lower income groups.

The branded market has been receiving a warm welcome lately in the metropolitan Areas of Pakistan.

People are becoming health conscious and are switching to brands offering vitamins and cholesterol free attributes.

There is a growing segment of working women in search of modern and convenient methods of cooking. Therefore, the flavored oils stand a very good chance.

Threats:

Fluctuations in the world oil prices.

Banaspati is perceived to be old fashioned and unhealthy by the upper income/urban consumers.

Lately sunflower and Canola based single oils have aggressively entered the market.

The unbranded segment comprises an enormous 50 % of the edible oil and Banaspati market. This is sold loose to the rural/lower income consumers.

Overall Market Scenario for Oil and Banaspati:

1st Dalda and Planta 28%

2nd Habib 23%


SUPER STORES


3rd Meezan 19%

4th Soya Supreme 16%

5th Tullo 10%

6th Others 04%

Current Punch Line:“Jahan MamtaWahan Dalda”

Unique Selling Proposition (USP): Its USP is taste and Quality. It aspires to be viewed as a ³cooking expert´.

Market Visibility:


LOW MEDIUM HIGH

DALDA


Dalda foods wins best consumer choice award for edible oil, banaspati ghee KARACHI (January 14, 2011) : Maintaining its leadership position for the consecutive 5th year, Dalda Foods Pvt Ltd has earned another accolade for being the best quality Oil and Ghee in Pakistan. Manager Marketing Dalda Pvt Ltd Atif Usman Syed received the prestigious Consumers Choice Award 2010 from Senior Federal Minister Commerce Makhdoo Ameen Faheem, in a ceremony held at a local hotel recently.


GENERAL STORES

DALDA

LOW MEDIUM HIGH

Documents

History of Dalda