PRINCIPLES OF MARKETING

RAFHAN CORN OIL

 TABLE OF CONTENTS

Executive Summary……………………………………………………………………………….4

Unilever’s Mission Statement………………...........................................5

Unilever’s Purpose & Principle………………………………………………………………6

Marketing Principles.....................................................................7

Introduction………….……………………………………………………………………………….8

Marketing Positioning and Marketing Segmentation ………………………….9

Marketing Mix……………………………………………………………………………………….10

Product………………………………………………………………………………………………….10

Price……………………………………………………………………………………………………...11

Placement……………………………………………………………………………………………..12

Promotion……………………………………………………………………………………………..13

Conclusion…………………………………………………………………………………………….13
 EXECUTIVE SUMMARY

This report responds to the request of the Dr. M. Azam khan Chishti to
analyze the Marketing Mix of Rafhan Corn Oil in detail
For the purpose of Research data was extracted from Unilever’s
website and valuable information was provided from Unilever food
Solutions Sales Officer and Rafhan Corn Oil brand manager hence
narrowing down our scope of research
 UNILEVER MISSION
STATEMENT

Unilever's mission is to add vitality to life. We

meet everyday needs for nutrition, hygiene,
and personal care with brands that help people
feel good, look good and get more out of life.
 UNILEVER PURPOSE & PRINCIPLES

Our corporate purpose states that to succeed requires

"the highest standards of corporate behavior towards
everyone we work with, the communities we touch, and
the environment on which we have an impact."
 Unilever Global Principles for Food and
Beverage Marketing
Marketing Communications must comply with all relevant laws/regulations in the local country.
In addition, international, national and local self-regulatory organizations (such as national
advertising associations, television network approval guidelines, etc.) which have self regulatory
standards or codes of conduct must be considered.

All food and beverage Marketing Communications must be truthful and not misleading.

General Principles
1. In line with Unilever’s Vitality Mission, we strive to communicate more and more about the
Vitality aspects of our brands and products.

2. Copy, sound, and visual presentation of food products should accurately represent any
material characteristics advertised and should not mislead consumers concerning any of those
characteristics.

3. Nutrition and health benefit claims should have a sound scientific basis.

4. Food and beverage Marketing Communications should not encourage or condone excess
consumption and portion sizes should be appropriate to the setting portrayed and the intended
consumers.

5. I n Marketing Communications representing meals, the foods portrayed should be shown in

the context of a balanced diet.

6. Food and beverage Marketing Communications should not undermine and where possible
should encourage the promotion of healthy, balanced diets.

7. Food and beverage Marketing Communications should not undermine and where possible
should encourage the promotion of a healthy, active lifestyle.

8. Food products not intended to be substitutes for meals should not be represented as such.
 INTRODUCTION TO RAFHAN BEST FOODS
Rafhan Best foods Limited are an affiliate of Bestfoods, USA. One of the largest US food
companies, with a worldwide sale of US $ 8.64 billion and an operating income of US $ 1.33
billion. Bestfoods has operation in more than 60 countries and products marketed in more than
110 countries around the world.

Rafhan Bestfoods Limited, formerly consumer business of CPC Rafhan Limited, came into
decision of the parent company in USA to spin off its corn refining business and rename
consumer business as Bestfoods.

Rafhan Bestfoods Limited has brought high quality, great tasting and convenient foods to
Pakistan that is enjoyed around the world.

Rafhan Maize Products Co. Ltd. started its operations in 1952 as a pioneer maize processing
industry in Pakistan.

Haji Muhammad Shafi (Late) was the founder of the company. Haji Muhammad Shafi was an
innovative person. He derived the company name (Rafhan) very tactfully from his three sons.

The names of his sons are:

Muhammad Rafi

Muhammad Hanif

Muhammad Nisar

Rafi

Hanif

Nisar

Raf

Ha

Rafhan
In 1952 the company was established on very small scale. At that time it was involved in
manufacturing of corn product only. During their work Mr. Shafi researched that the demand of
starch will increase in the future because of no rapid preparation of starch at that time. So Mr.
Haji sharif decided to produce starch from corn. Because of this reason he decided to import
machinery from abroad. And decided to sell its 50% shares to any big company. So an American
firm called CPC took 50% shares of Rafhan. In 1998 best foods took the possession of the rafhan
due to which it become rafhan best foods. And in 2000 best foods was handed over to lever
brothers. Due to which it become rafhan best foods (Unilever Company).

In this way, the popular name of Rafhan was invented. Today brand name Rafhan is very
popular among people.

Overall history
 1952 company started operation as the first major corn processor in the
country.

 1962 rafhan became affiliated with CPC international. CPC acquired 51%
equity.

 1963 corn oil refinery commissioned.

 1976 consumer marketing division formed.

 1985 started using Rafhan as umbrella a brand for consumer products.

 1987 rafhan listed as pubic limited company with 18.5% of equity sold to
public.cpc continues to retain 51%equity.

 1990 purchased land for new consumer factory.

 1991 set up independent consumer food division.

 1992 lunch of first core brand products,knorrbouillion cubes and bag

soups.

 1992 inauguration of perna plant.

 1998 independent consumer products company under new name Rafhan

Bestfoods ltd.

 1999 purchase of Glaxose_D business.

  2000 take over by lever brothers LTD.

MARKETING POSITIONING
Rafhan is considered to be a trusted and premium brand because of its unique health
association Rafhan is positioning their product in the best of their customer health which also
differentiate from their competitors. Over the last 38 years, Rafhan corn oil gained increasing
consumer preference as a result of high and consistent quality meeting the international
standards

MARKET SEGMENTATION
Markets consist of buyers and buyers differ in their wants, resources, location, buying attitudes,
and practices. Through market segmentation companies divide large heterogeneous markets
into smaller segments that can be reached more efficiently and effectively with products and
services that match their unique needs.

Rafhan Corn Oil Market Segmentation

Market segmentation has four major variables: Geographic, Demographic, Psychographic and
Behavioral.

The Rafhan Corn Oil targets the national market of buyers and is not classified for particular
geographical area such as city, province or a region. Also in terms of demographic variables
Rafhan corn Oil is not targeted for a particular age, family, occupation, gender group. Rafhan
Best Foods has differentiated its product through its prestigious brand name as compared to
other local companies. Rafhan’s target market includes, Upper Middle Class and Upper Classes
of the population of Pakistan. Rafhan corn Oil targets psychologically the audience who is
health conscious and is aware hazards of unhealthy life style.

MARKETING MIX
PRODUCT
Marketing Mix planning begins with formulating an offering that brings value to target
customers. At the Core level of Rafhan corn Oil was the discovery that corn was healthy to eat
and also very nutritious. It was extracted from the heart of fresh corn. It is a unique oil to have
properties that helps lowering of blood pressure and cholesterol level because it is enriched
with high density lipids (HDL) and polyunsaturated fatty acids. The balanced combination of
both helps lowering cholesterol level. The company wanted to provide healthy life benefits to
its audience hence Rafhan Corn Oil was actualized.

Benefits of Rafhan Corn Oil

Why Rafhan is good for health?

- Free from harmful fatty acids and helps control blood pressure and cholesterol
- Corn oil is among the top most healthy oil in this world
- Use of RCO increases your immunity towards Heart Diseases because of very natural
presence of LINOLEIC ACID
- Natural presence of vitamin E makes it work as a natural blood thinner and it break up
dangerous blood dots inside the body
- Food cooked in Rafhan Corn Oil retains the original taste and flavor and is easy
digestible

Rafhan offers Value Added Services to its consumers by providing them with toll free helpine to
answer any questions and queries with regard to the product and the company and for taking
comments and critique.

Product Life Cycle Stage

The course of the product sales and profits over its lifetime is called product lifecycle. It involves
five different stages namely product development, introduction, growth, maturity and decline.

If we analyze the time-line of Rafhans corn Oil journey which it started in 1985 as introductory
phase of the product and then went through growth stage when finally in 2000 it was
purchased by Unilever Ltd. After which it entered the maturity phase of its life cycle, which is
still continued, characterized by slowdown in sales growth because the product has achieved
acceptance by most potential buyers.
PRICING
Rafhan uses psychological based pricing to communicate its users the high quality and health
benefits that Rafhan corn Oil has to offer to its customers. Psychological pricing is the pricing
approach that considers the psychology or the consumer’s perception of the product and not
simply the economics.

PLACEMENT
Marketing Channel
Distributors are the institution through which availability of products is possible. Rafhan best
foods have many distributors. And they have a very good relationship with them. And the
important thing is that they must integrate into total marketing mix because of time and money
required to setup an efficient channel.

The main procedure of distribution of distribution is that first it goes to ware house and then to
distributor and at last to ultimate consumer.

Rafhan uses the following multiple channel of distribution.

Company Wholeseller Retailer Consumer

Channel Design: Intensive Distribution Strategy

Rafhan uses a lot of distributors and retailers to supply its products in each market where the
final customer might reasonably look for it. While appointing a distributor for a particular area,
management uses its own judgment to select such a person that has a potential to operate
effectively.
Order Processing

On receipt of order, head office prepares a delivery order and sends to factory, factory office
prepares delivery challan, one copy of the challan is sent along with the truck of luggage. One
copy of delivery challan is sent to head office. On the basis of delivery challan invoice is
prepared and sent to party by the head office.

Markup

It is a company policy; profit should not be less than 40%. They will give 2% extra commission
on company price on meeting their target through claims.

PROMOTION
A company uses promotional strategy for its products in order to create demands for its
products in consumers minds and to educate the customers about the product benefits and
features and to boost its sales through the use of Promotional Mix i.e. through Advertising,
Sales Promotion, Publicity, Personal Selling or Direct Marketing. With respect to Rafhan corn Oil
we will observe that its plants are already working at optimum production level and also it has
made its distinct place among its specific target audience, hence any promotional strategy will
create additional demand which will not be able to met owing to the present limited production
resources therefore promotional tools are unneeded and undesirable.

CONCLUSION
The in-depth analysis of Rafhan Corn Oil leads us to the conclusion that it is a strong brand
which serves Unilever as a cash cow characterized by slow growth in market and high profits
which are used to support other products of the company. Since it is a Research based product
and Corn Oil extraction plants calls for huge investments, Rafhan has competitive advantage of
strong entrance barrier which currently no one is able to break hence monopoly of Rafhan in
Corn Oil industry remains unchallenged. Due to production level limitations, its current demand
cannot be increased hence it also does not requires Promotional measures to be taken.
Unilever hence needs to focus on sustaining the existing level of Sales and making the product
available to the final consumer as and when he needs it.