Cover page

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Table of contents

Introduction of product....................................................................................................................2

Proposed target market....................................................................................................................4

Basis for segmentation.....................................................................................................................4

Geographic Segmentation............................................................................................................4

Income Groups.............................................................................................................................5

Demographic Segmentation.........................................................................................................5

Psychographic Segmentation.......................................................................................................5

Behavioral Segmentation.............................................................................................................7

Product strategy for the new market................................................................................................7

Game Theory Concept of Dalda..................................................................................................7

Marketing Strategies........................................................................................................................8

Total Market Strategy..................................................................................................................8

Early Entry Strategy.....................................................................................................................8

Strong Commitment.....................................................................................................................8

Market Dilution Strategy.............................................................................................................9

Product Strategies............................................................................................................................9

Product improvement strategies...................................................................................................9

Product imitation strategy............................................................................................................9

Quality strategy..........................................................................................................................10

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 Customer service strategy..........................................................................................................10

Pricing strategy..............................................................................................................................10

Establishing the product’s price strategy...................................................................................10

Product-Line Pricing Strategy....................................................................................................11

Place/distribution strategy.............................................................................................................11

Single Channel Strategy.............................................................................................................11

Distribution Rights.....................................................................................................................11

Way of promotion......................................................................................................................12

Competition................................................................................................................................12

Communication strategy................................................................................................................13

Line Modernization....................................................................................................................13

Preferences.....................................................................................................................................14

Reference list.................................................................................................................................15

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Introduction of product

The company that is chosen for this project is Dalda. It is a brand that deals in vegetable oil in

the area of South Asia. It operates in markets like India and Pakistan (Rahman, 2016). The

current home market of the product is in favorable conditions since it made a total sale of Rs 27

billion in the financial year of 2015 to 2016. Dalda has been operating in its home market since

1954 which is why it has enjoyed a market monopoly for a long time. The main competitor of

Dalda in its home market is Habib Cooking oil with a market share of 8%, right behind Dalda

with a market share of 10%. Since the population of its home market has been increasing, Dalda

has to come with ways of increasing its product manufacturing in order to meet the demands of

the increasing population. To cater this factor, the management of Dalda plans to sale 25% of its

overall shares to the public with the goal of making the capital of Rs 7 billion so that it can

reinvest it towards to production department to increase the amount of production so that the

population demands can be met. In terms of the International market, Dalda has been the key

player since 1954 because its competitors simply had not entered the market until the early

1990s. This factor is considered to be Dalda’s unique selling point as well as its competitive

advantage in the home market.

Proposed target market

The following key points summarize our findings and Marketing Plan:

 Our target market is adults, aged over 35 years, living in India, with a

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 joint household income greater than INR75,000.

 The target market is interested in buying a boutique quality olive oil

(Samiee et al., 2019).

 The price is below the price our market research suggests Dalda could charge

however we are acknowledging that the buyer power is strong and we need to

acknowledge the fact that we are a new product with no profile and hence need

to be less aggressive in our pricing.

 We will use an indirect distribution channel and sell our Olive Oil through New

World supermarkets as our market research was very supportive of New World

as a favorite shopping destination (Hassan et al., 2016).

Segmenting and targeting is an essential process to reach to the right kind of customers to drive

the most benefits. And it is to be followed by consistency and fast response to their queries if the

brands intend to retain those customers for the long term to build loyalty and a better brand

image (Hassan et al, 2016).

Behavioral Segmentation

Behavioral segmentation is impacted by a number of variables to identify the customer base.

Different roles played in the process include initiator, influence, decider, buyer and user. Factors

impacting the customer behavior include occasions, user status, usage rate, loyalty status etc.

Dalda is a band which deals in premium oils for all of your cooking needs. The products of

Dalda are used all over the world by a wide range of consumers. The wide range of the products

ensures that there is a flavor for each person according to his or her taste preferences (Hult and

Ketchen, 2017).

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Geographic segmentation

The marketing activities of the products of Dalda will begin from the city of Delhi. Currently,

Delhi and Mumbai hold the largest populations in India with 18.98 million and 18.59 million

respectively. Due to its large population, Delhi can potentially become a profitable city for

Dalda.

Psychographic segmentation

Dalda’s psychographic segmentation strategy will be targeted towards the percentage of

housewives in the total population of the city. Since housewives are the managers of the

households in India, they are the potential customers of the product.

Product strategy for the new market

Due to the wide range of the products being offered by the company, it may become difficult for

many to select the desired products. In this regard, it is always better to choose the products

which are most appealing to you. The oil is supreme in quality, however the choice of liking for

consumers may vary from product to product based on your personal preferences. The quality is

the main aspect of the products. The quality being provided to the products is unparalleled and as

a result, the consumer base of the company is continuously growing. Only the very best

ingredients which are organic are used for the purpose of making the products of Dalda. The

effects of the product are a testament to the quality of the product. The prices of the products are

affordable and provide an edge to the company over many of its competitors. The price range is

same for all product lines. The prices may depend upon the selection of the quality among other

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factors. There are multiple products and each of them is made keeping in mind the highest level

of quality and other specification to ensure that the products are superior as compared to its

counterparts (Berger, 2019).

Business goals

Dalda must be able to cater to the demands of customers from different income-groups. Dalda

must be able to build its market share. The projected goal for market share in the first 6 months is

4% at an increasing rate.

Market and needs

The market of India is saturated which is why the price based strategy will be used for

penetration. The need of the market is a reliable and trustworthy brand. Dalda can use the

reputation it has in the home market. Dalda will adopt the cultural values of the country to gain a

trustworthy image from the customers.

Key differentiators for the new market

The greatest key differentiator of Dalda will be its price. Another factor which will be used is its

sunflower extract which contains lowest amounts of fats and carbohydrates.

Product needs

Dalda will be launching its edible cooking oil as the first product in the market. The increasing

population of India is something that can largely help Dalda gain a good market share.

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Game Theory Concept of Dalda

The game theory is a popularly used theory to shed light on the integration of the decisions of

different entities. It can be applied on the oil markets of India to analyze the context at hand for

Dalda. Under the light of the game theory, Dalda will need to pay ample focus on every move

that is made by its competitors in the markets of India. It will prove to be an effective way of

catering to the different demands, needs and wants of the Indian customers in the market

(Mathur, 2016).

Marketing Strategies

Total Market Strategy

Dalda can render the use of total market strategy in entering the markets of India as well. There

are various important benefits that it can avail by the use of these strategies in the markets of

India (Menon et al, 2015).

Early Entry Strategy

Dalda is one of the pioneers of oil in India. Dalda first started its operations in 1975. It has been

in the market for many decades now. Hence, the use of this strategy can prove to be highly

helpful for Dalda in this regard (Crawley et al, 2015).

Franchising

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Dalda has chosen the franchising strategy to enter the market of India because it can bring a

rapid market expansion. Dalda has a strong brand recognition which can be used in India. The

franchisee will be chosen on the basis of a strict criteria which will be set by the management of

the company.

Strong Commitment

It is also important for Dalda to fulfill the commitments that it has made to the customers in the

market. It is an important aspect o0f marketing that needs to be catered to by the company at

hand. If it fails to factor in this aspect, it will lead to various issues such as a loss of trust from

the side of the stakeholders of the company in the business markets of India (Mohiuddin, 2019).

Market Dilution Strategy

This strategy can be used as a contingency plan that can be helpful in situations where the actual

results are not at par with the desired results. It is a highly helpful strategy that can be highly for

the company at hand.

Product Strategies

The product strategies are also important for the purpose of catering to the demands of the

consumers in the market. Dalda needs to factor in this aspect as well in its overall marketing

strategy in the markets of India.

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Product improvement strategies

There must be a proactive approach in this regard by Dalda. If it fails to constantly develop its

product in the markets of India, it will not be able to sustain its businesses for a long time. There

must be a trend of constant innovation in the markets of India for Dalda. If it is not able to

sustain this level of innovation, it is highly likely for it to turn myopic in nature. Any such

development will most likely lead to the ultimate demise of the company at hand.

Product imitation strategy

It is also important for Dalda to factor in the moves of its competitors in the market so that it can

stay in the loop. If it fails to do so, it may be highly averse to its overall growth (Morgan et al,

2019).

Quality strategy

This is another highly important strategy that needs to be followed by Dalda in the markets of

India ay all times. If it fails to factor in this aspect of marketing, its quality may fail.

Customer service strategy

The customers need to be catered in the best way possible by Dalda. If not, it may suffer serious

losses from the side of the customers in various forms like fall in the sales. This aspect is known

as CRM or Customer Relationship Management. The scope of CRM is to build and maintain a

long term mutually beneficial relationship between the two parties. Its focus is on deriving value

on the long term bases with all the parties affiliated with the company which customers. It will

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not only focus on the profits of the company itself in the long run but also increasing profits in

the future for all the parties that it works with.

Pricing strategy

The pricing needs to be at par with the market value. However, they must be profitable for the

company as well. It can also provide different kinds of discounts to the customers in the market

every once in a while so that the demand of Dalda in India is kept high. There are various

benefits which can be derived as a result of venturing for an sale. There is a same incremental

effect in the case of the markets of India. The sales can be highly pumped up due to the festive

season and this increment can be further pumped up by offering attractive sales. Another factor

which is mostly ignored by companies and businesses which can prove to be incredibly

beneficial for them is that the already increasing demand can be further pumped up by rendering

the use of a sale. Not only this means more sales, but in case any store or business has an excess

of products at hand, they can be efficiently dealt with. There are also a number of other

important factors that need to be considered here in this case. One of the most important factors

that need to be considered here in this case for Dalda is the prices that are being implemented by

its competitors in the markets of India. this holds up under the Theory of Reasoned Action as

well which is a popular theory of consumer behavior. When an incentive is provided to

consumers to buy, they are more likely to consume that product or service. Same is the case here.

Another reason why it is essential to provide a sale is that the competitors of Dalda would be

providing sales as well which is evident from the past years. If Dalda does not provide a sale, the

competitors would gain an important leverage and benefit over it. Hence, this is another

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important reason why Dalda needs to devise an sale to keep up with the market. Dalda can also

pump up various financial aspects such as revenue generated as a result of this proposed. If it is

not able to compete with the prices of the competitors in the markets of India, it will not be able

to come up with the required level of demand to stay afloat in the market. Hence, it is of

significant importance for Dalda to factor in the element of the competitors price in its market

offerings as well.

Place/distribution strategy

The pricing and distribution strategies are also important when it comes to the area of catering to

the needs, wants and demands of the consumers in the market. Dalda needs to be able to retain

the customers as much as possible to stay afloat in the market. For this, it must be proactive in its

approach towards the place and the distribution strategy of the company at hand. It must make

the utility of the consumers as much high as possible by the use of these areas so that it is able to

maximize the engagement level with the consumers in the market.

Single Channel Strategy

For the purpose of distribution, Dalda needs to follow the single channel strategy. Due to the

context and the nature of the business, this is the most suitable strategy that needs to be followed

by Dalda at all times. As compared to the other strategies that are available at the disposal fo the

company at hand, the use of this strategy can prove to the most suitable in terms of the

idiosyncratic nature of the business at hand (Naz et al, 2018).

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Distribution Rights

It is also important for Dalda to factor in the distribution rights so that it is able to stay

competitive and profitable in the markets of India. There is a prudent level of attention that needs

to be dedicated to this area so that Dalda can perform at an optimal rate in the markets of India.

Way of promotion

Dalda believes in facilitating the experience of the consumers in every way possible. For this

purpose, there are regular discounts which are given out to the consumers. The specific vendor

which is dealing the products of Dalda may also have an influence on the discount rates.

However, if consumers purchase the products online, consumers will find a wide range of

coupons as well as deals which can help in persuading consumers to make a purchase. The

discounts are attractive and ensure that maximum reason is given to the consumers to go for the

products of Dalda (Rahman, 2016).

Competition

It is also of significant importance for Dalda to make sure that it is able to deal with the high

level of growing competition in the markets of India. If it fails to make prudent plans to deal with

the competition, it will not be possible for it to be able to deal with the future requirements.

Dalda can create a blue ocean for itself if it uses the different technologies in its offers. It is

because the competition in Brazil does not have similar technologies (Rao and Agarwal, 2015).

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Communication strategy

For a company like Dalda, it is of significant importance for the company to develop a flawless

communication strategy that is able to cater to the idiosyncratic needs, wants and demands of the

consumers in the market. If it is not able to come up with any such communication plan, it is not

possible to excel in the market for Dalda. This area closely relates with the marketing fo the

brand as a whole. The basic purpose of the customer representative management system is to

attract new customers and retain the old ones. This can help Dalda to gather and retain

information about the already existing customers as well as the potential users, so whenever it's

needed, it’s easily accessible. This information can be in the form of an email address, phone

number, customer name, customer preferences etc. For the consumers who want to reach out to

the company, there are various different means for them to do so. One of the most popular ways

to do so is via email. This email is responsive to the queries as well as other complaints or

suggestions. Another source of reaching out to the company is via the hotline of the company.

This hotline is active at all times and can be used to communicate any concerns to the company

directly (Samiee and Chirapanda, 2019).

Line Modernization

As mentioned before, Dalda believes in facilitating its consumers at each level. Special resources

and efforts are dedicated at Dalda to the area of customer service. This is done so that there is no

area of concern which is not catered to after the purchase of any Dalda product whether online or

in any brick and mortar. The consumers can reach out to the customer service of the company

online as well as via phone.

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Preferences

Dalda has developed over the years its reputation as a first class and a trustworthy brand. The

consumers of Dalda are spread all over the globe and they enjoy quality customer services as

well as supreme quality of the products. The promised health benefits are delivered. The health

benefits are backed by medical research and confirmed by medical professionals. All in all, the

reputation of Dalda is untarnished (Shao and Li, 2019).

Conclusion

Dalda will be planning the marketing of its product line according to the cultural setting of Indi

along with the demographics variables that have been described. Market penetration will be done

based on a pricing strategy which will lead to a rapid penetration into the market of Mumbai,

followed by other cities. As described in the customer strategy, Dalda’s main target will be the

population of housewives and young adult women of the country. A certain part of the total

budget will be allocated to marketing of Dalda which will be conducted through digital media

and print media. a greater proportion of it will be towards digital media (television

advertisements). Once the product gains a significant market share, it will smoothly shift towards

value-based pricing strategy. This sets up Dalda in a favorable place to enter the Indian market

and start building its customer base.

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