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Cooking oil brand management strategy

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  • 1. N T E D EM N G AG E R A A GY R N IN G M A NB A T E M AR K ET M TR A R RA ZA E A ID SS YE D H
  • 2. CORPORATE PROFILEHealth Consortium of Pakistan is established in 2005 by a small group of professionals who felt that the lack of advanced nutritional products in Pakistan are adversely affecting the quality of life of an average Pakistani, who is already facing challenges like mal nutrition, adulteration and substandard products.In the 1 st phase we revived traditional Mustard oil by eliminating it’s shortcomings like smell, colour and stabilizers. It was given a warm welcome by the market and became leading brand in 2008.In 2 nd phase we introduced the concept of a perfect natural oil supplement for heart patients in 2009, an extension was launched in 2010 for general population which was greeted warmly in the central and north region markets.A need was felt from the start for a healthy low price cooking oil in the market and HeartStar@ is an important milestone to fulfil that need.Considering market dynamics , July 2012 is the ideal month for it’s launch.
  • 3. O N TI DUC O TR It is the purest cooking oil F IN available in the market, IE which of fers the best forB R your health and nutrition requirements. Hear tStar@ brings out the natural flavor and aroma of any recipe to the fullest and is introduced in a revolutionar y convenient and hygienic packaging at ver y attractive prices.
  • 4. TARGET MARKET OF HEARTSTAR@General Medical Age: 25 - 40 years  Physicians Wants to look slim and  Fitness Gyms smart  Class 1 Chemists Belonging to SEC A and  Physiotherapists B  Cardiologists Housewives/working women  Slimming Clinics Take great pride in their homes They want their family to be full of life Educated Health conscious
  • 5. MARKET DYNAMICSNATIONAL REGIONAL There are 44 brands  The size of Lahore , available nationally Rawalpindi & The size of Karachi Peshawar combined is market is 10% of approximately 23%. national market. The consumption pattern  It is a predominant Oil has two peaks: pre market with exception Ramadan and period of few outskirts of during Eid-ul-Azha. Lahore & Peshawar The demand for regions. edible oil declines during summer  More receptive to new months. launches comparatively.
  • 6. MARKET DYNAMICS GRAPHICALKARACHI REGIONAL
  • 7. u s uo t in c on g w in 5 . s ho 2 01 an d of d w en no e r th EE n t p l a ye by GH i n a 7 5% to VS m do th up IL e h p r row e acO l a g is rd t o r O i p wa te d u c pe Ex
  • 8. rm te al ng on lo egi g r in by D ED o be n ting a s r ke AN e , r ma B R d de che n i ra s n ON b n nd no ra .N n ha p 3 b VS t d to e y ED a nd y b br uit D e in AN or nt m o is nt cB R t ke m e ar e l m r tisOi dve ds. a ran b
  • 9. MAIN COMPETITORS COMPRISE 55% OFTOTAL REGIONAL MARKET Habib OilSoya Supreme Dalda
  • 10. SITUATION ANALYSIS
  • 11. DOMESTIC POLITICAL SITUATIONLAW & ORDER SITUATION
  • 12. ECONOMIC SITUATIONi. Increasing trade deficitii. High inflationiii. Agricultural sector progress is not satisfactoryiv. Economic policies changes overnightv. Incoming remittance improving the foreign exchange reservesvi. High fuel prices downward effecting the foreign exchange reserves  
  • 13. INDUSTRY SITUATION ii. Existing size of the industry gives more room to playiii. People are shifting from Ghee to Oil which is a good signiv. Price wars shrinking profit marginsv. High fuel cost adversely effecting operating costvi. Quality difference among top brands is unnoticeablevii.Better management of inventory and funds can increase the profit margins  
  • 14. IN E N U T IO S D UA Y E R T A UC PL FL Y L L KE RA HE E T OV G S: ET N A NM O O N S B EE A E A K AR TO A R G R 1) Increase in the number of players in the branded S H M S WINM E T S E K E L LO E AR O segment. 2) Increase in the regional brands strength due to focused  ER M E F TH HE TH marketing activities T O 3) Increase in the price competition due to increase in T number of players 4) In the pouches segment there is high price sensitivity with low loyalties towards the brand 5) There is a slow but upward shift of consumers from tin to pet and pouches 6) Tradition of using a particular brand is followed from generation to generation therefore the brand loyalty is strong for respective brands thus increasing the involvement of the customer. 7) Price war trends have shown a change in the purchasing attitudes of the customers. 8) Constant search for added values are changing the decision-making process of the customers. 
  • 15. CONSUMPTION & PURCHASE CYCLE1) Heavy buying is usually done in the last week of every month till the end of the 1st week of every month.2) Mainly the purchase decision maker is the women of the house3) Average consumption per household is 1to 1.5 a pack (6.5 ltr.) per month4) Consumption pattern - marked seasonality, with 2 peaks
  • 16. COMPETITOR’S SITUATIONBrands like Habib, Dalda and Seasonhave been in the market for a long timethus enjoy brand loyalty and brandassociation. Regional Brands are alsobecoming active and concentrating onnational platform through aggressivemarketing and brand building strategies
  • 17. HOM(HABIB COOKING OIL)STRENGTHS WEAKNESSES Market leader  Packaging problems  Damages due to Quality products transportation Strong national distribution  Lack of HRM & HRD network  Major market Wide product range segment (premium Strong Brand equity consumer pack) is Financially strong shrinking First ISO certified company  Lack of market in the industry research and product Strong credibility development Price leaders  High managerial High promotion budgets turnover
  • 18. HOM CONTINUED OPPORTUNITIES THREATS Population growth  Price fluctuation Increased standards  Inflation of living  Price wars Health consciousness  Too much import Urbanization reliance  Globalization Prolonged shelf life  Inconsistent Wider communication government policies channels  High operating costs By improving the MIS  Increased fuel and gas company can Improve prices volumes
  • 19. DALDA STRENGTHS WEAKNESSESo Position in the premium Weak after segment disassociation witho Trusted and the oldest name in the industry Unilevero Strong distribution Weak after-sales network serviceo Research and development support Lack of delegation authorityo Good field worko Quality product Lack of prompto Re organization decision making
  • 20. DALDA CONTINUED OPPORTUNITIES THREATSo Population growth o Price fluctuationo Increased o Inflation standards of living o Price warso Health o Too much import reliance consciousness o Globalizationo Urbanization o Inconsistento Prolonged shelf government policies life o High operating costso Wider communication channels
  • 21. SEASONS CANOLA COOKING OIL STRENGTHS WEAKNESSES Enjoys ownership  High staff of Canola turnover Good Quality  Weak Product with distribution effective network packaging  Weak media Enjoys good penetration market reputation Effective BTL support
  • 22. SEASONS CANOLA COOKING OIL CONTINUEDOPPORTUNITIES THREATS Population growth  Price fluctuation  Inflation Increased  Price wars standards of living  Too much import Health reliance consciousness  Globalization  Inconsistent Urbanization government policies Prolonged shelf  High operating costs life   Wider communication channels
  • 23. BR AN D ID E N TITYH e artS tar@ is th e p u re s t cold p re s s e d com b ination cooking oil, wh ich offe rs th e b e s t for you r h e alth and nu trition re qu ire m e nts . It b rings ou t th e natu ral flavor and arom a of any re cip e to th e fu lle s t and com e s in a re volu tionary conve nie nt ,ve rs atile and h ygie nic p ackaging.E xtracte d from th e fine s t oil s e e d s , s e le cte d from arou nd th e world H e artS tar@ is a p rod u ct of a m e ticu lou s re fining p roce s s th at is carrie d ou t on care fu lly s e le cte d oils . It will not s u p p re s s th e flavor and arom a of e ve n th e m os t d e licate ly flavore d d is h e s .H e artS tar@ is p roce s s e d at a s tate -of-th e -art continu ou s re fining p lant u s ing E u rop e an te ch nology, wh ich is as ad vance d as th e te ch nology e m p loye d anywh e re in th e world . Th e p roce s s e ns u re s op tim u m p u rification and th at e ve ry d rop of oil ge ts u niform ly tre ate d , re s u lting in qu ality and cons is te ncy th at s im p ly cannot b e ach ie ve d th rou gh conve ntional p roce s s ing.
  • 24. BRAND IDENTITYH e artS tar@ p rovid e s valu e in all its offe rings . It is targe te d for m ainly h e alth cons ciou s wom e n wh o are ve ry conce rne d ab ou t th e h e alth of th e ir fam ilie s . Its h igh qu ality allows its cu s tom e rs to ge t all th e b e ne fits of h e alth y life . It is a com p le te p ackage as it is p u re , e ns u re s h e alth y life , b rings ou t th e natu ral flavor and arom a of any re cip e to th e fu lle s t, com e s in a h ygie nic and conve nie nt p ackaging and p rovid e s m any b e ne fits to its cu s tom e rs in its com p e titive p rice .A p e rfe ct com b ination of S u nflowe r, C anola & olive oils with s atu rate d fats le s s th an 5% , H e artS tar is th e b e s t for h e alth . Als o contains h igh am ou nts of p olyu ns atu rate d & m onou ns atu rate d fats , wh ich are cons id e re d ve ry good for h e alth .( O m e ga-3 & O m e ga-6). 
  • 25. 9. LE 6, FI 3, ga P RO m e O TH AL N HE O A TI R@ B IN HeartS tar@ is a c ombination of TA CO M S unflower, C anola & S oybean TS IL Oils . AR OHE & In a ratio whic h gives TS HeartS tar@ the bes t FA formulation among all c ooking oils available in Pakis tan. Formulated by top profes s ional of the indus try it provides Omega-3, 6 & 9 in perfec t ratio.
  • 26. 9. F ILE a 3, 6, P RO m eg O TH AL N HE O A TI R@ IN All fats are m ad e of variou s m ixtu re s of B TA s atu rate d and u ns atu rate d M S CO (m onou ns atu rate d and RT IL p olyu ns atu rate d ) fatty acid s . All fatty A O acid s are com p os e d of ch ains ofHE ATS & carb on, hyd roge n, and oxyge n atom s . Fatty acid s are nam e d and F nu m b e re d b as e d on h ow th e ir carb on, hyd roge n, and oxyge n atom s are arrange d . “O m e ga-3”, “O m e ga-6”, and “O m e ga-9” are actu ally ch ains of u ns atu rate d fatty acid s cate gorize d b as e d on wh e re th e d ou b le b ond b e twe e n two carb on atom s occu rs . O m e ga-3, om e ga-6, and om e ga-9 h ave a carb on– carb on d ou b le b ond in th e #3 p os ition, th e #6 p os ition, and th e #9 p os ition of th e ir carb on ch ains , re s p e ctive ly.
  • 27. LE FI P RO TH AL HE R@ S TA 3 A RT AHE E G Omega-3 fatty acids are extremely important to health because they help suppress inflammation, an underlying M cause of many diseases. There are a number of omega-3 fatty acids. They can be categorized according to short O chain or long chain configurations. One important short chain omega-3 fatty acid is alpha linolenic acid (ALA). It is essential to health; however, our bodies cannot make it, so we must get this fatty acid from our diets. It is a nutrient most Americans do not get enough of as relatively few foods are good sources. Canola and soybean oils are two widely available dietary sources of essential ALA so their inclusion in the daily diet is healthful. Longer chain omega-3’s are found in fatty fish, which also have health benefits.
  • 28. LE FI P RO TH AL HE R@ S TA 6 RT AHEA G Omega-6 fatty acids are also essential to health and are E nutrients that our bodies cannot make. The most familiar omega-6 fatty acid is called linoleic acid (LA). M Many oils contain omega-6 fatty acids, including O safflower, sunflower, soybean, corn, cottonseed, and peanut oils so it is much easier to get the amount needed through our daily diet. There has been some debate regarding the importance of a balanced ratio of omega-6 to omega-3 fatty acids in the diet, but others feel that it is the absolute amounts of each fatty acid in the diet that matters. The current recommendation for omega-6 fatty acid intake is 5-10% of total calories.
  • 29. TH AL HE R@ TA TS E 9 E AR FIL A Omega-9 fatty acids are found in various vegetableH O G oils and animal fats. Unlike omega-3 and omega-6 P R E fatty acids, they are not essential, but they too are M important to health. Oleic acid is one of the main O omega-9 fatty acids, and emerging evidence is showing that it may be important in metabolism and weight regulation. Oleic acid is the main component of olive oil, as well as, some of the new generation, heat stable oils, including high-oleic canola and sunflower oils. Another term for high- oleic oils is Omega-9 oils. Omega-9 oils refer to a category of oils that have over 70% oleic acid and less than 3% linolenic (ALA).
  • 30. AND B R y) li t D ED s on a er E N IT Y son (P Caring HeartStar@ is a considerate brand for those people X T N T PerE E sa who care for their families. Trustworthy ID nd a People consider it to be a reliable brand a   Br Underdog It is an underdog as it is directly competing with the market leaders like HOM, Dalda etc. It considers only them as its competitors and doesn’t counts other low profile brands like Manpasand etc. as its direct competition.   Competent As HeartStar@ has competitive properties in its offering and is continuously trying to improve its product quality so it wouldn’t be wrong to say that it is competent in whatever it is doing.
  • 31. I TY N T I DE ND . A ct BR d u E D P ro ND s a Attributes and Quality of HearStar@ TE d A •E X an Absolutely pure and completely odorless B r • Does not freeze even at zero degrees • Contains lowest amount of saturated fatty acids in its class • Is light and easily digestible • Is not sticky or greasy • Free from any flavoring additives • Offers less consumption
  • 32. D E M O G R AP H IC SPrimary:M oth e rs , b e twe e n 25 and 40 ye ars , re s id e nts , b e longing to S E C A and B.Th e y are p rim arily h ou s e wive s , wh o take gre at p rid e in th e ir h om e s and e nj cooking for oy th e fam ily th e m s e lve s . Th e y want th e ir fam ily to b e fu ll of life . Th e y are e d u cate d (at le as t M atric) and are aware of th e p re vale nce of ch ole s te rol-re late d d is e as e s and want th e ir fam ilie s to h ave a h e alth fu l life s tyle . Th e y are conce rne d , b u t p ractical m oth e rs and not ove rly s e ntim e ntal. Th e y h ave ch ild re n in th e e arly te e n – p re te e n age grou p  econdary: STh e u s e rs of oth e r b rand s and s witch e rsG e ne ration N e xt:Th e s e are fu tu re p ote ntial b u ye rs wh o h ave a m ind of th e ir own; th e y d on’t care wh at th e ir p are nts h ave b e e n u s ing in th e p as t th e y and th e y want to e xp e rim e nt.
  • 33. PSYCHOGRAPHICS: • H e alth cons ciou s• D oe s n’t com p rom is e qu ality ove r p rice• C aring, and love s cooking• Tru s tworth y• K nowle d ge ab le ab ou t nu tritional facts• D e cis ion m ake r for e d ib le oil b rand• P re fe rs b rand th at is od orle s s , trans p are nt and low in ch ole s te rol• E m otionally inte llige nt• K e e p s s e arch ing for h e alth ie r op tions .• Ad ap tive toward s b e tte r qu ality p rod u cts  
  • 34. S yed Haider Raza