In terms of proposed strategy they have to do a product line modernization which can be done either overhauling the whole range at once or carrying it out in a detail by detail treatment. Some lines such as Lajawab and Crisp n Dry must be scuppered as part of this modernization process.
Better segmentation of consumers must be done giving each portion what they need from the merchandise. The segmentation can be Geographic segmentation or demographic segmentation. It can further be split into Psychographic and behavioural segmentation.
The product needs to be placed accurately so that it attracts the target audience. It should be a mix for high standard products and medium level products. This will likely allow product to get attention of all the targeted consumer segments.
Price of the merchandise is a distinctive selling point as people perceive it as a affordability product but for the line expansion new prices needs to implement which should be predicated on an extensive general market trends analysis.
For promotion a teaser advertising campaign can be utilized and create knowing of brand and in simple fact the re-born brand or product by planning cookery shows and also sponsoring food courts and intense marketing strategies.
Table of Contents
Introduction:
Lever Brothers Pakistan Small (LBPL) was initially integrated in Pakistan in 1948 and work started in the present stock in Rahim Yar Khan. DALDA Banaspati was the first product from that stock accompanied by Lux cleaning soap in 1954.
The present Karachi Edibles Stock was obtained in 1965 from A&B Oil Industries Ltd. Modernization and extension of the factory has been a ongoing process. .
The head office shifted from Rahim Yar Khan to Karachi in 1966.
LBPL moved in to the personal products business in 1981. Further diversification on the meals side of the business enterprise has occurred with the advantages of margarine and food preparation natural oils. They have a seed products business, an professional detergents business, and an glaciers cream business.
DALDA will be the pioneers' in the ghee and petrol industry in Pakistan, have an evergrowing category to cope with over time, factors such as upsurge in population is noticeable to verify that the industry has to increase to meet the needs, DALDA being market dominator has good penetration of 52-55% in the gee and essential oil segment, yearly consumption is 14Kg per capita and has dedicated consumers as company is around for more than 60 years. There are specific rivals in the segment but having their consumer expectation attained each time, they achieve consumer value satisfaction romantic relationship.
Current Marketing Strategy
MARKET:
Lever's Interaction with Its Market
The target market of Lever consists of health, quality and tastes conscious people, hence Lever's commitment to tailor its products according to its customers is obvious from the fact that launching of each and every product goes by through the extensive phases of research & development.
TARGET MARKET:
DALDA Cooking Engine oil, DALDA Banaspati, DALDA Sunflower Petrol, DALDA Lajawab and Planta Baking Oil.
PRODUCT Setting:
DALDA cooking olive oil: The cooking expertise for the whole family.
DALDA Banaspati ghee: Substitute for desi ghee but healthier with the same great taste
DALDA sunflower petrol: very light petrol, providing extra health advantages.
Planta cooking essential oil: Olive oil with the taste of Ghee - a wholesome swap to ghee. DALDA
Lajawab: vegetable olive oil with the style never thought before and having carry through flavour not for normal but for special cooking.
Consumer Markets and Consumer Behaviour
Characteristics Impacting Consumer Behaviour
Culture
Oil and Ghee consumption is definitely very high in the Indo-Pak region. Our ethnical heritage as far as food can be involved consists of spicy and fried food.
Subculture
Educated, health conscious consumers use DALDA Food preparation Petrol more in the urban areas. The reasons are different for the many consumers for example there are specific C class households who use DALDA because it has been used in their families for ages. It really is a heritage carried down the years.
Banaspati on the other palm is more common in Punjab where people prefer the style of Ghee. The more health conscious consumers however choose Planta Cooking Essential oil, which, though Olive oil, provides same great flavour of Ghee.
Social Class
LBPL has divided the classes directly into A to F homes. Class A homes are the top class, high-income organizations. In these household the merchandise is usually bought by the servant (most probably the make meals). Course B households will be the middle-income group. These are the quality conscious, health mindful consumers. This is the class most involved with purchasing the product. Class C homes, though they might not go for DALDA since it is reduced product may, however, buy it because of brand commitment as they have been using the product for a long period. Classes D to F cannot spend the money for premium quality products.
Family
Family takes on an important part. In every the advertisements, whether it be cooking oil or banaspati or margarine, emphasis has been placed on the family. The housewife is shown to be appreciated by everyone including her in-laws, her spouse and her children. By providing them with food that both tastes and smells good, she is victorious the hearts of her family.
The Markeing Mix
The Marketing Mixture is the set of marketing tools that work together to affect the market.
PRODUCT
Product Classification:
The DALDA, brand is a consumer product. It is bought frequently, immediately and with a comparatively small amount of comparison. As such the goods, which fall in to the convenience goods bracket, are usually staple goods which are true for nearly all the products in this brand.
Product Attributes
Product Quality
LBPL promises the best quality for all of its products. As such the ODF products are also made to the highest standards. The steadiness in LBPL's assurances and the provided product please consumers.
Product Features
A product's features can placed it apart from the competition and differentiate it for competitive gain.
DALDA Cooking Essential oil: Ultra-refined cooking food oil, with the best style, and also better steadiness and colouring.
DALDA Banaspati: Reduced cholesterol than desi ghee and better tasting.
DALDA Sunflower Engine oil: Lighter and better than most other natural oils except perhaps Canola petrol.
DALDA Lajawab: Emulsified Vegetable engine oil with rich style for special baking.
Planta Cooking Oil: Cooking petrol which tastes like ghee for those who want the best of both worlds.
The total customer value research helps us to determine what product the consumer is getting in the end. It also helps relatively in the dedication of the main element top features of LBPL's ODF products.
Total Customer value
Product
Services
Personnel
Image
Packs/ Tins of Products
Cookery program
Advisory service
Social and Esteem needs met
Product Design
Design is more than skin area deep, it would go to the heart of the merchandise and a good design contributes to the product's effectiveness. When we speak about ODF products the design element means how the oils and extra fat themselves are formulated and exactly how their compositions effect their market.
DALDA Lajawab:
DALDA Lajawab product is a distinctive product with enriched features. It really is altogether a fresh product, packed in a 1-liter polyjar. Company acquired test marketed this product on 14th September 1998 in Lahore and after 90 days company launched DALDA Lajawab in Karachi, Lahore and Islamabad.
Oil and Ghees:
DALDA C Oil
DALDA B Ghee
DALDA Sunflr
DALDA Lajawab
Cinsistency
Medium
Heavy
Very Light
Light
VITAMINS
A, D, E
A&D
A&D
Packaging:
All ODF products' presentation material is brought in. Even the ink applied to the product packaging is brought in. The presentation is of the best standard, at least in the neighborhood market. The DALDA brand comes in tins, bottles and poly-bags. Planta is available in tins. All plans are clearly and legibly labelled as to contents and ingredients. Best before dates are also fast becoming standard. All deals are easy and safe to use. The packaging for the DALDA brand has keeps the same renewable shade since its advantages 50 years ago.
Branding:
Branding can be an facet of marketing at which LBPL seems to excel especially when we think of the DALDA brand. Since its release so many years ago DALDA has retained the same motherhood and preparing food expert image something which is hard to do for such a long time. There are usually four levels of meaning conveyed by way of a brand name. This particular is an research of what ODF brands convey:
BRANDS
Levels
DALDA
PLANTA
Attributes
Premium quality, high prestige
The oil which tastes like ghee, best of both worlds.
Benefits
Tasty food. Food preparation ease.
Health, nourishment and good food.
Values
Motherly love, tradition
Motherly love, tradition
Personality
Cooking expert, mother
Young educated housewife also young mother
PRICE:
The Composition of the Market
There are an extremely large number of buyers and also a big number of sellers. Soya Supreme offers UHT cared for oil, Nayab sells its ghee in Poly totes LBPL and Habib differentiate them from the entire market on the basis of quality and so on.
Elasticity
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 make a difference demand. That is common to all consumer items in a reasonably competitive market.
TOTAL CUSTOMER COST
Previously we had used the full total Customer Value notion to format what the consumer actually received as the product. This is what the customer in the end compensates to get the product:
Product
Service
Personnel
Image
Total Customer Cost
Price paid to buy LBPL's ODF products
Time spent in finding Blue Band
Energy put in in finding/using DALDA/ Planta/Blue Band
The psychic cost of not buying a international ODF Brand
Pricing Strategy:
LBPL's marketing goal is mostly to tap the upper-middle and higher class segments. Because of this they have to achieve product quality control and in doing this they incur high R&D costs. To cover these costs they use value-based charges and premium costs strategies, counting on consumers' perceptions of the products' prices.
The following grid summarizes these discussion on charges strategy:
Higher Price
Lower Price
Higher Quality
Premium Strategy (Value founded pricing)
Good Value Strategy
Lower Quality
Over charging Strategy
Economy Strategy
PLACE:
Lever Brothers Pakistan believes in synergy, that is a perfect blend of all the the different parts of the marketing combination. Proof is based on it having one of the very most efficient and greatest distribution (systems) systems in our country.
LBPL statements that it requires six weeks for the merchandise to go from the manufacturer to the shelf. The merchandise travels to the principal vendors (one and 1 / 2 weeks), then to the extra distributor (one and one half weeks) and finally to the trade level (three weeks).
These intermediaries play an extremely important role in getting the merchandise to the target consumer. Quick access on a national level to both urban and rural areas is vital if consumption goals should be achieved. By concentrating on its distribution initiatives, it can help LBPL promote its product and gain an advantage over its competitors
CHANNEL LEVELS:
It has no direct interaction with its wholesalers and merchants as such however, operates via a network around 1300 distributors found in 600 areas throughout Pakistan.
Multiple distribution stations are widely-used:
Traditional Channels
FIELD FORCE
The distribution channel functions the functions of:
Providing necessary general market trends and intellect information
Developing and persuading consumers to take a product offer
Finding and communicating with possible buyers
Matching the offer based on the customers need and informing the making concern about it
Reaching an agreement regarding price and conditions of sale offer to accomplish possession
Sales Setup:
COLLECTION PROCESS:
LBPL has a unique system for the assortment of its payments. The machine works in an sorted out manner that is; the distributor at the top office, which instructs the depot or the manufacturing plant for delivery, places an order. At exactly the same time people at the depot make the invoice and frontward it to the top office. The top office then fills in the agreed upon cheque and delivers it to the lender for encashment. Thus your consignment of DALDA, Planta or Blue Group is paid for.
TERMS AND CONDITIONS
No credit conditions 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.
PROMOTION:
The most concentrated promotion techniques used are tv set advertisements. Its advertising are shown on PTV and STN stations. The advertising are re-launched after sometime to maintain interest of the consumer and when the product is changed.
DALDA uses Awareness marketing and Multimedia marketing.
Visibility marketing
DALDA concentrates most on visibility and availability. This consists of print adverts, price cards, posters at vendor's shops, sign boards, buntings, flags etc.
Media Marketing
Lever uses different information papers and magazines to advertise DALDA but the major emphasis is on advertising, shown at the times loving moms are watching television. .
Sales Promotion
It also takes on its role to advertise DALDA by planning different occasions like preparing contests, video games and shows.
Personal Selling
There is not any personal selling in case there is DALDA brand, only business products of ODF group are marketed and sold through this technique. When DALDA come up with consumer promotion it offers the trade off to the retailers.
Other mediums
Print advertisings in periodicals such as Women's' Own, She, etc. and those read by the common but literate housewife. Buntings, posters, trade flags (hung at the stores) inducing consumers to try the latest tastes for DALDA, etc.
DALDA
SWOT Analysis
STRENGHTS:
DALDA'S products have largest market talk about in Pakistan in essential oil and Banaspati market.
DALDA'S products have high customer commitment.
LBPL takes treatment in keeping the best quality of the products it produces.
In the Banaspati category DALDA is the only excessive fat free brand.
WEAKNESSES:
DALDA is a very old brand, there's no change in product packaging since age groups, people believe that the new better packaged brands have better products.
THREATS:
BANASPATI and Essential oil is also sold loose to a huge rural market.
The market is currently inserted by Soya bean canola and sunflower natural oils, these are being bought by health conscience people this will lead to DALDA's and Planta's decrease in market talk about.
The overall market of olive oil and banaspati is declining.
OPPORTUNITIES:
The company can cash on DALDA to introduce new products; they may have a big market share in the central and northern areas of Pakistan.
People in the urban centers are inclined towards branded products.
The extra fat free Banaspati continues to be popular and can be advertised to gain the market in health conscious people.
BOSTON CONSULTANCY GROUP MODEL (BCG MATRIX)
Dalda is a cash cow where by providing Dalda Foods with continuous source of earnings.
Product range only makes up about 80 % success of the firm
Repositioning: Dependence on Repositioning:
Dalda joined Pakistani banaspati market in 1952 and launched Dalda Food preparation Olive oil in 1981. Since then there haven't been much changes in 4 Ps. The only minor changes included a slight taste change of Dalda banaspati in 1993 and the unveiling of Dalda Clean n Dry up and Dalda Lajawab in 1997 and 1998.
Dalda with Lajawab and Crisp n Dry tried the concentric diversification strategy. They forgotten the actual fact that the operating market got strong competition with new entrants picking up market share. At that time it was had a need to simply modernization of the brand without challenging the customer with the addition of similar products.
Last presentation change was done back 1994 and that too was not very different from other brands. There is hardly any difference between the package colour and design. Additionally when they are held in the aisles of shops all one can position is a couple of storage containers with either yellow or green packaging.
Proposed Marketing Strategy
Line Modernization:
Even when the merchandise line period is ample, the line may need to be modernized. The problem is whether to overhaul the collection, piecemeal or all at once. A piece food approach allows the business to observe how customers and dealers take to the new style. It is also less draining on the business's cash cow. This is why why repositioning Dalda is recommended. In this, we'd be carrying on the marketing of Dalda (VTF) banaspati, Dalda baking oil and will stop making and reselling Dalda Lajawab and Clean n Dry up.
In quickly changing product markets, product modernization is continued regularly. Companies plan product advancements to encourage customer migration to raised valued, more costly items. LBPL will try to execute a similar thing with Dalda through the introduction of flavored natural oils. This will be a line extension catering to the needs of women between the ages of 20 and 45 and belonging to the upper income strata of Rs. 10, 000/- plus.
Segmentation:
Market segmentation at the level of section marketing will be utilized for Dalda to be able to increase concentrating on precision. It really is recognized that customers vary in their wants, purchasing ability, geographic locations, buying behaviour, and buying practices. Dalda will attempt to isolate some wide segments that define the market for different items on its products. For example, health conscious consumers for Dalda preparing food oil with vitamin E. Similarly, modern working women looking for convenience for the Dalda flavored essential oil market (this brand extension will be mentioned later in detail).
Bases for Segmenting Consumer Market
Geographic Segmentation
The market for oil and banaspati is highly commodity driven. In addition, the identified difference between various brands is very little. Therefore, Dalda has to ensure quick access and availability if not it would miss out to opponents.
Geographical locations:
Karachi, Lahore, Hyderabad, Faisalabad, Islamabad and Multan.
The neighbouring areas of these metropolitan metropolitan areas also report to all these six branches.
Demographic Segmentation
The market will be mostly females beginning with the age of 20 to rounded about 45 years of age.
For Dalda banaspati and cooking olive oil the income strata would be Rs. 4000/- plus. However, the new flavoured oils would be directed at top of the strata of Rs. 10, 000/- plus. As the loose engine oil/banaspati consuming segment includes around 50% of the marketplace, therefore, Dalda junior would continue concentrating on this portion.
Psychographic Segmentation
The whole product range would be targeted at females leading a trendy and modern lifestyle. Flavoured oils would especially be sold to working women looking for convenient and smart formulas.
Behavioural Segmentation
We will try to increase the occasions of engine oil and banaspati use. Soon after Moharrum the marriage season will begin. This is a good chance to cash on the seasonality effect.
Through the launch of flavoured oils, we will be inducing new usage patterns.
Following will be the extra uses for this category:
Can be utilized in salad dressings, dips, mayonnaise, etc.
Can be utilized as a drizzle in presentations.
Can be used in soups and stews.
Can be used for shallow, griddle and deep-frying.
Can be used for sauntering fruit and vegetables, sea foods and meats.
Can be utilized for marinating meats.
Placement:
Edible petrol and Banaspati is highly product driven. The ultimate value is greatly dependent on the prevailing world olive oil prices. Besides this the perceived difference between your various brands ion this price hypersensitive category is almost negligible which means placement at shops greatly decides the sales amount.
In order to cash on the shelf space all over summer and winter LBPL lays great stress on having a strong circulation system. Each branch has a branch manager to whom several Assistant Branch Manager Article. Under each Associate Branch Administrator are Lever's Distributor Professionals. Each Distributor Supervisor is in charge of Five Marketers of Lever Range of Products. The entire inventory leaves the manufacturer and goes to the depot where distributor has already submitted the total week's requirements.
Higher margins would be attached with the sales sent/achieved.
For Example:
Sales exceeding Rs. 100, 000/= would entitle the retailer a payment of 5% of the
total Rupee Sales.
Similarly on the sales of 100 systems of the five liters load up the store would get five extra models cost free. While on the sales of 100 products of the two. 5 liters pack the retailer would be given two extra units cost free.
Pricing:
The prices strategy is cost based and we recommend replacement cost costing for the repositioned Dalda rather than stock recovery rates. As the existing prices are based mostly after the prevailing world petrol prices the new type of charges strategy will ensure that the spread between cost and value is kept to the very least. This can make the prices of Dalda more competitive as the fluctuations on the market prices will be assimilated in the final selling price.
We will keep up with the current price of the existing product range. It really is given in the following desk. However, Lajawab and Crisp n Dry out would be withdrawn from the market. The price tag on flavored oils would be as follows:
Dalda Ginger n Garlic ± Rs. 130/- for 1. 5 liters.
Dalda Lemon - Rs. 130/- for 1. 5 liters.
Promotion:
Dalda always been regarded as a very motherly brand, a brand which includes been used era after generation. The tag line 'Jahan Mamta Wahan Dalda was the previous repositioning directed at this brand which just as before has its root from the motherly base.
We strongly believe that Dalda must take a diametric change in the meaning that it moves to its consumer.
The following are the steps we have planned.
A teaser plan for the new position would be designed. This plan would be totally focused on the novelty of Dalda. The ad would create brand consciousness for the new line expansion of flavored oils.
Continue marketing of Dalda Banaspati (VTF) and Dalda cooking food Oil never to only the present segment of females aged 35+years but also to females between age groups of 20-34 years.
Dalda Ka Dastarkhan will be re-launched with a completely new look on both FM ± 100 and PTV world starting from next one fourth onwards i. e. May, June and July.
Critical Representation:
My chosen product or brand I really believe is in drop stage is because it has been around for so a long time and since there are new entrants on the market and have made this brand take their foot of the paddle. It is not the first choice of consumers anymore and consumers also thought that this brand has little or nothing not used to offer to them. Sometime only rebranding the merchandise can itself rejuvenate the whole brand which is what I am hoping to accomplish through my online marketing strategy.
Before this module marketing was just mere Television or print multimedia ads but after this I have already been in a position to understand or relatively got a concept of marketing. Marketing is not simply something proven to us; it has other concealed or very extensive research and examination parts which is not necessarily visible to the end user or the client.
The experience gained from the module was helpful in understanding of the topic at hand, and how to approach the topic. It made the principles of marketing clear and offered understanding that a single product can't be targeted at all the customers or at the people. While devising marketing plan I came across this matter and tried to segment my product for a particular set of potential clients.
The process has further increased my perspective of understanding the product and then need to move forward forward with the marketing plan. The first P in the marketing combine is just concerning this same situation where you need to understand all three degrees of product extensively before any sort of plan can be initiated.
The the different parts of a specialist marketing plan are Executive summary, Situation evaluation, Marketing Objectives, MARKET or Target Marketplaces, Key messages, Implementation Plan, Way of measuring Ideas and Budget.
Executive summary supplies the high-level brief summary of the information which is conveyed through the program. It will work as an overview of the whole marketing plan. The situation research will show where we stand now and research of the surrounding and the market segments. Key market place opportunities require in the rivalling market. Declaration of Marketing Aims will be where we determine our objectives and where we want to be with our marketing strategy. This involves the targets in conditions of revenue, client base etc. Target audience is the section we want to focus on and can aim out marketing strategy or marketing work at these particular set of folks or groups. For each and every target audience or concentrate on group we have to have a specific Key concept to charm them or to catch the attention of them towards the product. Execution plan is the pathway which leads to how the strategic steps are taken to achieve targets of the advertising campaign. Action plan is the real timeline of all actions which can be to carried in order to implement the program and everything the steps are used. Marketing plan do need to have a measurement procedure or measurement process in spot to record and assess every step once is used on and it is finished.
The experience gained from the component was helpful in knowledge of the topic at hand, and how to overcome this issue. It made the ideas of understanding the logic behind how to successfully understand and address consumer perceptions, that they are supervised and altered and how consumers reach towards buying decisions. In addition, it made it clear and gave understanding that a single product can't be aimed at all the customers or at all the people. While devising marketing strategy I ran across this subject and attempted to portion my product for a particular set of potential clients.
The process has further enhanced my point of view of understanding the merchandise and more importantly the prospective consumer of the product. This module has helped me recognize that we need to identify our goal consumer and also his / her behavior before devising any strategy that impacts on the buyer positively.
For every single market or aim for group we need to have a specific Key meaning to appeal them or even to attract them towards the merchandise. Before the module it was not the understanding, when i perceived that marketing promotions contains same communication for everybody but this perception has transformed now.
Initially I misinterpreted and mixed-up some parts of the research which upon an assessment was correctly before the final draft was equipped. I could combine learning and techniques of consumer behaviour with the task in hand and what needs to be addressed. The objective of the record was effectively conversed by utilization of model, ideas and learning materials which also resulted as a contribution to overall learning and grooming.
Overall, this record was a learning and packed with exploration experience which is very different to the info we can remove from the literature and journals. I think that I can now understand the complex and critical field of consumer behavior in a far more organised and efficient manner.
