Strategic Management PPT, A class project of SM on Dalda Foods, in included introduction, vision, mission, all matrices, swot analysis and Recommendations

2. Presented By
Ishawar Kumar
Submitted At
IQRA University
STRATEGIC MANAGEMENT

3. • Dalda foods limited (Dalda Foods) traces its legacy to one of the oldest and most trusted food brands of the country.
• Dalda’s name has been synonymous with highest quality and utmost trust of the consumers for over 80 years.
• Dalda have an edge over competitor's year after year because of its premium quality.
• Dalda Foods was incorporated in July 2004 as a private limited company after separating from Unilever Pakistan.
• Over the year’s company has grown at a fast pace with revenue and sales volume doubling in the last five year’s
revenue over Rs 29 bn.
• Company’s growth trajectory has combined organic growth as well as growing through acquisition and
diversifications.
Dalda Foods is presently operating in three foods sectors:
• Edible oils and fats with its iconic brands (Dalda, Planta, Manpasand, Tullo)
• In the dairy sector with its brand Bisco, Cremo, Puff etc; and in the tea whitener segment with its brand Cup Shup.
• In snacks sector through its brand Knock Out, Bash, Nimco.
• An iconic food brand of the country “Tullo“ was added to the portfolio of company when majority shareholding
(86%) of Wazir Ali Industries Limited, a well-known and established company in the industry was acquired in
2007.
• The registered office of the company is at F-33, Hub River Road, SITE, Karachi and it has manufacturing facilities
located at SITE-Karachi, Port Qasim, Karachi and Rawalpindi, Lahore, Principle activities of the Company are
manufacture and sale of edible oils and fats, snacks and tea whiteners.
INTRODUCTION

4. Tag line
Dalda essence encapsulated in its tag line “Jahan Mamta, Wahan Dalda” (“Mother’s Love is Dalda”) became a
synonym for its purity and quality and has been the platform for the brand for many, many years.
VISION and MISSION
“We make a positive difference in the lives of people with our products and services”.
Vision and Mission Description
Deliver satisfaction and quality assurance to our consumers using state of the art technology. Offer a work
environment that inspires trust and loyalty in people. Engage in continuous efforts to explore new horizons in our
business.
Objectives
Dalda have some objectives namely integrity, Fairness, Trust, Accountability and People Reaching their Potential.
• They want to serve consumers in a unique and effective way.
• The want to provide highest standard of corporate behavior towards the employees, consumers and the societies
• Total commitment to exceptional standards of performance and productivity.
• Profitable growth for the business and long term value creation for shareholders and employees.
• The Company also focus to look after the employees and to motivate them to look after the interest of consumers.
• ISO 900-2000 Quality, 14001-2004 Environment, 22000-2005 Food Safety & 18001-1999 OHSAS

5. Dalda Foods Products
Oil & Ghee
• Dalda VTF Banaspati
• Manpasand Banaspati
• Tullo Banaspati
• Dalda Cooking Oil
• Planta cooking oil
• Dalda Canola oil
• Dalda Olive Oil
• Manpasand Cooking Oil
• Tullo Cooking oil

6. Tea Whitener
Cup Shup | Launched in 2015
Snacks
Knock Out | Launched in 2017
Since 2006 the Company has kept growing and had introduced various new products. A
graph on the summary of operational history of Dalda Foods is shown below:
RELATED DIVERSIFICATION

7. Pakistan Edible Oil Industry Overview
• Edible oils and fats are significant part of household expenditure of an average
family - almost 6% of the household budget is spent on it.
• Edible oils and fats are marketed in variety of packaging formats – tin cans, plastic
bottles, plastic pouches, plastic buckets and in loose form.
• Total consumption
 52% Branded
48% Unbranded
• Currently Pakistan spend about $ 1.0 billion per annum on the import of edible Oil.
Market share

8. SWOT ANALYSIS
Strengths
• Blind trust of the consumers in the brand
• The brand recall is as high as 97%
• The quality of the product
• Strong Management
• Strong Management
• Efficient supply chain
• Only Trans-fat free brand
• Organization culture
• Product range
• Economy of scale
• Second largest oil brand
• CSR
Weaknesses
• Huge import
• High cost of production
• Lack of company owned R&D
• Customer perceive as a old brand
• Less promotion activities
• High cost of production
• Less Raw Material Production

9. IFEMATRIX Key Internal Factors Weight Rating WTD Score
Strengths
Blind trust of the consumers in the brand 0.05 4 0.2
The brand recall is as high as 97% 0.06 4 0.24
The quality of the product 0.09 4 0.36
Strong Management 0.06 3 0.18
Financial Performance 0.05 3 0.15
Efficient supply chain 0.06 4 0.24
Only Trans-fat free brand 0.07 4 0.28
Organization culture 0.04 3 0.12
Product range 0.06 3 0.18
Economy of scale 0.04 2 0.08
Second largest oil brand 0.02 2 0.04
CSR 0.05 2 0.1
Weaknesses
High cost of production 0.04 3 0.12
Lack of own R& D 0.05 3 0.15
Low promotion activities 0.07 4 0.28
Customer percieve as a old brand 0.05 3 0.15
Import Cost 0.08 4 0.32
Smaller quantity of raw material production 0.06 2 0.12
Total 1 3.31

10. Analysis
The total weighted score of IFE Matrix is 3.31 which are above the industry average. It
means that company’s internal position is good. Factors like efficient supply chain
management system & sales and distribution network are getting higher weights and
company’s rating to these factors are also very strong. It appears from this analysis that
Dalda is overcoming its weaknesses quite fairly with its strengths. Such as strong
distribution network, production facilities and efficient supply chain management
system. When we analyzed the weaknesses, less promotion activities and huge amount
of import are the weaknesses that need to be overcome.

11. SWOT ANALYSIS
Opportunities
• Good Position in the Market
• Market penetration in rural areas
• Growing middle class
• New products
• New technology
• Pakistan is 4th largest cooking oil market
• Local raw material production
• International expansion
Threats
• Intense Competition
• Government regulation
• Inflation and devaluation of rupee
value
• Increasing cost of transportation
• Imposition of Export Duty
•Imported premium brands
•New entrance

12. EFEMATRIX Key External Factors Weight Rating WTD Score
Oppertunities
People are becoming health conscious 0.11 4 0.44
Market penetration in rural areas 0.07 3 0.21
Growing middle class 0.06 4 0.24
New products 0.07 3 0.21
New technology 0.05 3 0.15
Pakistan is 4th largest cooking oil market 0.05 2 0.1
Local raw material production 0.06 3 0.18
International expansion 0.04 2 0.08
Threats
Intense Competition 0.16 4 0.64
Government regulation 0.07 4 0.28
Inflation and devaluation of rupee value 0.04 3 0.12
Increasing cost of transportation 0.05 3 0.15
Imposition of Export Duty 0.04 3 0.12
Imported premium brands 0.04 2 0.08
New entrance 0.03 2 0.06
Change in taste 0.02 2 0.04
Substitute products 0.02 2 0.04
Political instability 0.02 1 0.02
Total 1 3.16

13. Analysis
The average total weighted score of EFE Matrix is 3.16 which is above industry average. It
appears that Dalda is responding in a good way to existing opportunities and threats in the
industry. The average weighted score shows that Company’s performance is good but not
outstanding in the industry. Local production of Raw Material and growing middle class
carry wieght 0.06, Untapped rural Market and and developing new products carry weight
0.07 . These are the areas where Dalda needs improvement to take advantage of the market
opportunities.
When we analyzed the threats we found that the biggest threat in the industry is intense
competition and company’s rating is 0.16. It shows that competition is the biggest threat for
Dalda (competition from the local as well as from unbranded/ loose edible oil).

14. CPM MATRIX
Analysis
From this Strategic analysis tool (Competitive Profile Matrix), We found that overall rating of Dalda
is better than Habib and Sufi. In CPM Dalda’s rating is higher than the others it doesn’t mean that
Dalda is better in every area. So, we have to take a look as an individual success factors.
As per the given stats: Price, Customer loyalty is better as compare to competitors. And in market
share the company’s position is same as others, but in marketing efforts Sufi’s position is superior
than Dalda and Habib. So, Dalda has to pay more attention in its marketing efforts.
Critical Success Factors Dalda Habib Sufi
Weight Rating WTD score Rating WTD Score Rating WTD score
Price 0.22 4 0.88 4 0.88 3 0.66
Market Share 0.11 3 0.33 3 0.33 3 0.33
Product Quality 0.13 4 0.52 4 0.52 3 0.39
Customer Loyalty 0.07 4 0.28 3 0.21 3 0.21
Product Range 0.12 3 0.36 2 0.24 2 0.24
Brand Reputation 0.2 4 0.8 3 0.6 2 0.4
Marketing 0.15 2 0.3 2 0.3 4 0.6
Tottal 1 3.47 3.08 2.83

15. BCG MATRIX

16. Stars
Question Marks
Cash Cows
Dogs
These are products which have a large market share in a fast growing industry. Their sales
are consistent throughout the year. Their cash generation is also high and at the same time
has a high growth potential, therefore require larger investments
This product of Dalda’s requires plenty of additional investment. It was acquired only a few
years ago. Right now it has a small market share in a market with a high growth rate.
This product of Dalda has one of the largest market shares in the category of banaspati.
However during recent years there has not been consistent growth in the industry. And the
company has chosen to decrease its additional investments.
This is a declining market. Dalda’s product has a low market share in this category. And
the company is not considering heavy investment in this product.

17. IE MARTIX
Analysis
In IE Matrix, Dalda lies in the
region of Hold and Maintain.
Means that Dalda has to maintain
and hold its current position.

18. Grand Strategy Matrix
Dalda is in an excellent strategic
position. Dalda should continue
its current strategies.
• Market development
• Product development
• Horizontal and Backward
integration is good strategy
for Dalda
Analysis

19. Qqf
QSPM MATRIX
Strategy 1 Penetration Strategy 2
Key Internal Factors Weight Rating AS strategy Rating AS strategy
Strengths
Blind trust of the consumers in the brand 0.05 3 0.15 3 0.15
The brand recall is as high as 97% 0.06 3 0.18 3 0.18
The quality of the product 0.09 4 0.36 3 0.27
Strong Management 0.06 2 0.12 2 0.12
Financial Performance 0.05 2 0.1 4 0.2
Efficient supply chain 0.06 4 0.24 1 0.06
Only Trans-fat free brand 0.07 2 0.14 2 0.14
Organization culture 0.04 2 0.08 1 0.04
Product range 0.06 3 0.18 1 0.06
Economy of scale 0.04 2 0.08 2 0.08
Second largest oil brand 0.02 2 0.04 3 0.06
CSR 0.05 1 0.05 2 0.1
Weaknesses
High cost of production 0.04 3 0.12 2 0.08
Lack of own R& D 0.05 1 0.05 2 0.1
Low promotion activities 0.07 4 0.28 1 0.07
Customer percieve as a old brand 0.05 2 0.1 1 0.05
Import Cost 0.08 2 0.16 4 0.32
Smaller quantity of raw material production 0.06 2 0.12 2 0.12
1 2.55 2.2

20. QSPMMATRIXCont....
From the QSPM
Matrix, it is found
that strategy: 1 is
more attractive as
the sum total score
of the strategy: 2is
4.91
Analysis
Key External Factors
Oppertunities
People are becoming health conscious 0.11 3 0.33 3 0.33
Market penetration in rural areas 0.07 4 0.28 1 0.07
Growing middle class 0.06 3 0.18 2 0.12
New products 0.07 2 0.14 3 0.21
New technology 0.05 0 0
Pakistan is 4th largest cooking oil market 0.05 2 0.1 0.1 0.005
Local raw material production 0.06 3 0.18 2 0.12
International expansion 0.04 0 0
Threats 0
Intense Competition 0.16 4 0.64 4 0.64
Government regulation 0.07 2 0.14 3 0.21
Inflation and devaluation of rupee value 0.04 2 0.08 3 0.12
Increasing cost of transportation 0.05 3 0.15 1 0.05
Imposition of Export Duty 0.04 1 0.04 1 0.04
Imported premium brands 0.04 0 0
New entrance 0.03 2 0.06 1 0.03
Change in taste 0.02 0 0
Substitute products 0.02 1 0.02 1 0.02
Political instability 0.02 1 0.02 1 0.02
1 2.36 1.985
Total 4.91 4.185

21. Advantages of Alternative Strategies
Dis-Advantages of Alternative Strategies
Market penetration strategy takes advantage of low prices to increase product demand
and increase market share.
A major joint venture advantage is that it can help your business grow faster, increase
productivity and generate greater profits. Benefits of joint ventures include: access to
new markets and distribution networks. increased capacity.
Market penetration strategy doesn't work for all products, and market leaders frequently use
other strategies.
Flexibility can be restricted and Clash of cultures.

22. Recommended Strategies
Backward Integration:
Backward integration is like acquiring supplier as the suppliers of Dalda are the raw material providers
and Malaysian refining companies, acquiring supplier is a good strategy because raw material costs
70% of total cost of production. Acquiring suppliers or join venturing with them is a good strategy to
driven out cost and decreasing cost of production.
(EFE, IFE, SPACE, QSPM)
Market Development & Market Penetration:
Untapped rural market is one of the biggest opportunities for Dalda where people still use unbranded or
loose cooking oil. Dalda has to work on the easy availability and distribution of cooking oil in the rural
area/markets.
Also, the demand of Pakistani cooking oil is high in Asian countries like Afghanistan and Middle
Eastern countries like Dubai, where people know Dalda and also having emotional attachment with
Dalda- in these markets there is a high export potential. Dalda should use its efficient distribution
network to increase market
penetration. (EFE, SPACE, IE)
Promotional Activity:
Dalda should increase the frequency of advertisement & enhance promotional activities , to make sure
that the target market gets the exposure. Also Dalda need to keep a track of competitor’s promotional
activities. (CPM, QSPM)

23. Recommended Long Term Objectives
Keeping in view the current standing of Dalda and the edible oil industry in general, we
would advise Dalda to stay in the broad differentiation strategy and continue to differentiate
itself. By following this strategy Dalda not only differentiate itself but also working on cost
reduction.
To plant, grow, cultivate, produce and raise, purchase, re-fill, re-purchase, re-sell, deal in or
turn to account or otherwise dispose of crushed oil seeds, coconuts and all other plants,
grass, trees, crops and natural products of any kind whatsoever or otherwise to cultivate any
land of the company and to transact or carry on such other work or business as may be
thought proper or necessary in connection with the above objects or any of them.

24. Recommendations Comparison With Actual Strategies
• As Dalda is importing raw material in huge amount, we suggest that Dalda should has to
be self sufficient in it. Dalda should enter in joint ventures with raw material producing
and refining companies to get help in cultivating basic raw material like cotton seed,
Soya bean etc. in Pakistan and also refining it
• Currently, Dalda is not taking fully advantage of market opportunities. Dalda needs to
focus on untapped rural areas of Pakistan where people are using loose cooking oil.
Dalda has to work on the easy availability and distribution of cooking oil in the rural
area/markets. Also, demand of Dalda is high in Asian countries like Afghanistan and
Middle Eastern countries like Dubai, where people know Dalda and also having
emotional attachment with Dalda- in these markets there is a high export potential.
• Dalda is not concentrate on their marketing activities for now. Dalda should increase the
frequency of advertisement & enhance promotional activities , to make sure that the
target market gets the exposure.

25. Recommendations Implementation & Results
• Joint ventures with Malaysian companies for the production and refining of raw material,
in this way Dalda can reduce its cost of production, because raw material costs 70% of
total cost of production. Through this strategy Dalda can easily get raw material as the
raw material of cooking oil are cotton seed, Soya beans etc are not easily available in
Pakistan by joint venturing with Malaysian companies for the production and refining of
raw material. Dalda will be to reduce the cost of production and make the prices more
reasonable in the market. In this way Dalda can also increase its market penetration, by
increasing production and lowering the prices.
• Untapped rural market and Asian Countries like Afghanistan & Dubai is one of the
biggest opportunities for Dalda. Dalda has to work on the easy availability and
distribution of cooking oil in such areas to capture heavy market share.
• Dalda should increase the frequency of advertisement & enhance promotional activities ,
to make sure that the target market gets the exposure. As a result, the can easily penetrate
in market and maintain their brand name as well.

26. Thank You !!!