DALDA FOODS (pvt) Ltd.

This survey report has been prepared objectively and purposefully by students of MBA (21 B),
International Islamic University Islamabad. The survey report has been compiled in an extremely
professional way. The objective of this report is to analyze the management and market skills of
students on practical grounds.

Report Compiled by:

Faisal majeed
4114
03346994021iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii
Atif javed

4131

03447057860

Junaid sultan

4132

03086959515

Muhammad Azam

4134

03335345212

Date of Compilation:
12th December 2009

Report submitted to:

Mr Bashir Ghuman
Professor Marketing Management
INTERNATIONAL ISLAMIC UNIVERSITY
ISLAMABAD PAKISTAN.

DALDA FOODS (pvt) Ltd.

ACKNOWLEDGEMENT

We thank to Allah Almighty for his guidance and divine support

that this report is finally complete as a result of continuous and
persistent effort.

PREFACE
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DALDA FOODS (pvt) Ltd.

First of all we would like to thank our instructor Mr. Bashir Ghuman for providing us the
opportunity to look into various marketing strategies of Dalda Foods pvt ltd. This project has
given us knowledge and practical experience, which will help us in future. We are also thankful
to
Muhammad Naseer Khan
Regional operation manager
DALDA Foods (pvt.) Ltd
Plot No 395-96, I-9 Islamabad Pakistan
Tel

: 051-4859071-5

Mr Srfraz Akram,
Consumer manager trade (METRO Islamabad)
Tel

: 051-4020067-72

Mr Bilal Arshad
Consumer manager trade (METRO Islamabad)
Tel

: 051-4020067-72

These people shared their experience and knowledge regarding the marketing strategies and sales
of Dalda Foods. Their help has enabled us to prepare this report. We hope that this report will
provide the required information regarding the marketing strategies of Dalda foods (Pvt.) Ltd.

Contents of report:

Selection of industry.
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DALDA FOODS (pvt) Ltd.

Review of industry.

Oil and Ghee companies.

Selection of company.

History of company.

Values of company.

Brand power

Financial Strength.

Organizational chart

Product mix/ pricing table.

Market segmentation.

Extension in product line.

Companies sales in last 4 years.

Sales graph.

Identification of Market leader.

Problems faced by company.

Companies Strategies to overcome these problems.

Problems faced by sales force

Our suggestions to company.

DALDA FOODS (pvt) Ltd.

Review of Edible Oil Industry of Pakistan

In Pakistan, at present, the edible oil industry includes the manufacture of compound cooking
oils (which is a recent development), table or salad oils (this process is still in its infancy)
margarine and refined oils. Important products of this industry are mustard oil, cotton seed oil,
groundnut oil and newly developed sunflower seed oil, safflower seed oil and Soya bean oil. Of
late, a number of modern oil mills have been set up for the production of solvent extraction oils.
5

DALDA FOODS (pvt) Ltd.

At present, major sources of raw materials are cotton seed (about 58 per cent) (rape and mustard
seed about 36 per cent) and others about (6 per cent).

Production:The three production processes that are in vogue in the country have their own limitation. For
instance the bullock-driven village mill (kohlu) with a capacity of one mound (37 kgs.) of seed
per day yields about 8% of the total oil mostly rape and mustard seed oil. Expeller mills produce
80 per cent of the total oil. These mills have varying capacity from 7 to 60 tones of seed per day.
There are also large expeller mills of 200 tones seed per day. Solvent extraction plants have a
daily average capacity of 165 tones each. These plants produce about 11 per cent of edible oil.

List of Companies producing Edible Oil

DALDA FOODS.
Address:

F-33, Hub river road, SITE.

Contact:

+92-21-32579673

Owned By:

Dalda Foods

DALDA FOODS (pvt) Ltd.

NTN:

33-05-2128133

Year Established:

2004

ISO Certification:

YES

SUFI.
Hamza Vegetable Oil refinery and ghee Mills Pvt Ltd.
1B Garden Block Garden Town Lahore.
UAN: (021) 111-466-426

HABIB OIL MILLS.

D-38, S.I.T.E., and Karachi 75700, Pakistan
UAN: 021-111-466-426
Tel: 021-2573605
Fax: 021-2573604

KAUSAR.
Kausar Ghee Mills Pvt Ltd. Morahmanabad GT Road Gugarawala.
Head Office Kausar House 13C New Muslim Town. Lahore.
Phone: 042-5847696-8
UAN: (042) 111-100-786.

SEASONS.
Seasons Canola Oil
Wali Oil Mills 171 Shadmaan II Lahore
Tell. 042-7530535-37

ZAIQA FOODS.
Zaiqa Banaspati and oil Mills
PUNJAB OIL MILLS LTD.
120-A, E/1, Gulberg-III P.O.Box: 1873, Lahore, Punjab, Pakistan
Phone: 9242-5761586 / 5761585.
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DALDA FOODS (pvt) Ltd.

MUJAHID.
Mujahid
Hafiz Iqbal Ghee and Oil Industry (Pvt) Ltd
Hattar, Haripur, NWFP

FAUJI.
Fauji Ghee and Vegetable Oil
Hajji Faqir Muhammad Ghee Industries
7 K.M Multan Road Burawala
Tell. 067-3355596

LATIF.
Latif Ghee Industries Pvt Ltd
Phase-4 Plot-76, industrial Estate,
Hattar, Haripur, NWFP.
Ph: 0995-617075, 617085 Fax: 0995-617358

KISAN.
KISAN GHEE & OIL MILLS LIMITED
A-22, S.I.T.E., Karachi, Sindh, Pakistan
Phone: 9221-2561101 / 2561102 / 2561103 / 2561104
Fax: 9221-2561873

KASHMIR
Kashmir Banaspati Ghee
United Industries limited Pakistan.
101 Regency Arcade 1st Floor The Mall Faisalabad.

GOLDEN SUN:8

DALDA FOODS (pvt) Ltd.

Ifko Pakistan Pvt Ltd. Sharja UAE.
Plot no. OZ/1/P44 Port Qasim Industrial Area Karachi.
Phone: 021- 4525433-46.

MIZAN.
Mizan Banaspati Ghee
Paracha Textile Mills Ltd (Ghee Unit)
A/22 S.I.T.E Mirpur Road, Sher Shah Road, Karachi
Tell: 021-2561101-5

SELECTION OF COMPANY

DALDA FOODS (PVT) LTD.

Deals in vanaspati and cooking oils, Ghee (vanaspati) is VTF virtually trans fat free. Available
and leading brand in Pakistan and India since 60 years.
Brand name DALDA in Tins, Jars, Pouches, Buckets,
Special packing could be arranged as per customer need.
Basic Information
Company Name:

Dalda Foods (Pvt.) Limited

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DALDA FOODS (pvt) Ltd.

Business Type:

Manufacturer

Product/Service:

Edible fats

Number of Employees:

101 - 500 People

Trade & Market

Main Markets:

Pakistan

Afganistan

Bangladesh

Australia

Newzealand

Eygpt

South Africa

Total Annual Sales Volume:

US$5 Million - US$10 Million

COMPANY PROFILE.
When you hear the name Dalda the image of quality conjures up in your mind. Dalda has earned
the trust of its consumers over a period of almost 60 years. In fact Dalda is the pioneer of
vegetable oil and banaspati ghee in the country.
Daldas story begins in early 1930s when Hindustan vanaspati Manufacturing Co (todays
Hindustan Lever Limited) wanted to start manufacturing vanaspati locally. At that time
hydrogenated vegetable oil was imported in India by a Dutch company, Dada & Co. Dada & Co,
insisted that the branded product should reflect their name, hence in a bid to establish their
ownership of the brand Hindustan Lever introduced the letter L for Lever into the name; giving
rise to the name DALDA.
Dalda Banaspati through its promise of superior quality & taste has won the hearts millions of
consumers making it not only a household name in the sub-continent by synonymous with the
genre vanaspati. Dalda, in its quest to meet the changing needs of its consumers; entered the oils
segment through the launch of Dalda Cooking oil.
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DALDA FOODS (pvt) Ltd.

In 1999 Unilever acquired International Technology to evolve Dalda Banaspati to Dalda VTF,
making it the only Virtually Trans-fat Free Bansapati in Pakistan.
In July 2004 Unilever Pakistan sold its "Dalda" brand to Westbury Group in collaboration with
Unilever Employee Welfare Group, who formed a separate company under Dalda Foods
(Private) Ltd.
Dalda Foods (pvt) ltd took Daldas over 60 years of heritage combined with continuous
innovation and in-depth consumer understanding and maintenance of high quality standards has
made it the leading brand in the Cooking Oil and Fats industry.
Within a short span of 4 years Dalda Foods expanded its Brand Portfolio through the launch of
Manpasand; to meet the needs of the vast middle-income segment. Manpasand Banasapti and
Cooking oil was launched at end-2005 and has grown to become one of the most formidable
players in the industry.
The Dalda portfolio was also expanded to seize the opportunity arising from changing consumer
lifestyles and increased health awareness; the company entered the pure-oil segment in early
2007 through the launch of Dalda Canola & subsequently Dalda Olive oil.
In a bid to expand capacity and further strengthen position in the premium segment and enter the
lower-income segment; Dalda Foods acquired the brand Tullo & Pride from Wazir Ali
Industries in January 2007.

VALUES OF COMPANY.
Strong businesses are built on Trust, Accountability and an Environment that allows their People
to reach their full potential. At Dalda we believe and abide by the following company values
when conducting our day to day business:

1. Integrity.
We act with honesty, integrity and highest ethical standards. Our people are expected to adhere to
the laws and regulations pertaining to their work and comply with Daldas principles and
policies.

2. Fairness
We work with people in a way that is fair and just. We treat fairly our customers, suppliers,
shareholders
and
the
communities
in
which
we
operate.

3. Trust
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DALDA FOODS (pvt) Ltd.

We give our employees complete autonomy and believe that all our employees adhere to our
companys values. Our stakeholders can be sure of our honesty when doing business with our
employees and company.

4. Accountability
We are a responsible organization and feel accountable to all our stakeholders and the society at
large.

5. People reaching their full potential.

We provide opportunities to our internal and external stakeholders for self-development and
growth. We encourage entrepreneurial as well as team spirit. The growth of the company should
also incorporate the growth of the individuals in the company.

Organization Chart.

12

DALDA FOODS (pvt) Ltd.

FINANCIAL BACKGROUND
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DALDA FOODS (pvt) Ltd.

AND BANKERS

The company has strong financial background and is considered liquid on all financial
considerations throughout its performances. It is enjoying excellent relations with its Bankers
and is having all needed credit limits and banking facilities at most competitive terms. The
followings are the existing bankers of the company.

Habib Bank Limited

United Bank Limited
Muslim Commercial Bank Limited
ABN AMRO Bank Limited
Askari Commercial Bank Limited
Union Bank Limited
Prime Commercial Bank Limited
Bank Al-Falah Limited

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DALDA FOODS (pvt) Ltd.

BRAND POWER:
Daldas Commitment to Quality.

Daldas commitment to quality, environmental and corporate social responsibility is signified

from the fact that it is the only edible oil and fats brand which has:
Bureau Verities Quality (BVQI) certification of:

o
o

ISO 9001-2000 for Quality

ISO 14001-2004 for Environment

ISO 22000-2005 for Food Safety

OHSAS 18001-1999 for Occupational Health and Safety

HACCP certification for Hazard Analysis and Critical Control Points

Dalda is the only National Brand:

That has a Virtually Trans-fat Free (VTF) Banaspati since 1999

With enhanced vitamins as per UNESCOs recommendation; which necessitates the
addition of more quantity of vitamins, than any other brand in Pakistan

Which is being exported to EU countries because it meets International Quality Standards

When you visit the Dalda Foods factory, you will immediately notice the beautiful green lawns
irrigated by the recycled water from the in-house Effluent Treatment Plant for sustainable use of
natural resources. Environmental Protection Bylaws state that it is mandatory for edible oil and
fats factories in Pakistan to have an effluent treatment plant so that the environment is not
damaged by the effluents from the factory. However Dalda is the only brand to have invested
substantially in order to acquire this plant and maintain it. This is Daldas humble contribution
towards conserving and sustaining this natural resource. The treated effluent water from the
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DALDA FOODS (pvt) Ltd.

Effluent Treatment Plant at Dalda meets the National Environmental Quality Standards (NEQS)
and is used for irrigation purposes within the factory only.

Product line.
Dalda VTF Banaspati

Daldas journey into the lives of its consumers started almost 60 years ago when Daldas food
scientists pioneered a way of preserving the goodness of vegetable oils in a manner which not
only preserved the taste of desi ghee but was a healthier alternative cooking medium- thus Dalda
Banaspati was born.
Over time keeping in line with the changing consumer needs Dalda Banaspati evolved to become
Dalda VTF Banaspati. Dalda VTF Banaspati is the only banaspati in Pakistan which is virtually
Trans-fats Free.
Any ordinary banaspati brand contains up to 25% of these harmful Trans-fats; however Dalda
using its International Technology and Expertise has reduced the amount of Trans-fats in its
banaspati to less than 1%. This makes Dalda VTF Banaspati the healthiest banaspati available in
Pakistan.

Dalda Cooking Oil

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DALDA FOODS (pvt) Ltd.

Not only was Dalda the pioneer in banaspati but also keeping in mind the changing lifestyle of
its consumers Dalda introduced cooking oil to the market
Dalda Cooking Oil is a premium blend of canola, sunflower and soybean oil, which is then
hygienically refined to perfection using Daldas state of the art plant and International
Technology and Expertise. This process of refining is specially designed to preserve the natural
goodness of each of the individual oils in the blend. Hence the optimum goodness of each
canola, sunflower and soybean reaches the consumers.

Planta Cooking Oil

In its quest for innovation Dalda introduced Planta Cooking Oil for consumers who were
reluctant to shift to cooking oil from desi ghee. Thus Planta Cooking Oil became the only
cooking oil to contain the goodness of oil and the delectable taste of ghee. It is a blend of
soybean, canola and sunflower oil and is 100% cholesterol free. It also contains Vitamins A and
D. This makes food cooked in Planta Cooking Oil tasty as well as very healthy.

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DALDA FOODS (pvt) Ltd.

Dalda Canola Oil with Vitamin Power

Dalda also expanded its product range to include Dalda Canola Oil with Vitamin Power.
Extracted from fresh canola seeds, Dalda Canola Oil with Vitamin Power not only provides the
benefits of Canola oil but also additional nutrients to give consumers extra energy, superior
health and great taste essential for a modern and demanding lifestyle.
It is these properties and the additional Vitamin Power in Dalda Canola Oil which make it a
much superior product and an ideal choice for Canola oil consumers.

Dalda Olive Oil

Another novel product by Dalda is Dalda Olive Oil. Dalda Olive Oil is packaged and imported
from Spain. Using its International Technology and Expertise, Dalda ensures that its olive oil
is extracted from the purest and freshest hand picked olives from the fertile lands of Spain,
which are then refined to perfection using the most advanced International Technology under
stringent quality standards within Spain. Dalda Olive Oil is 100% cholesterol free and enriched
with exceptional Shifa and health benefits of olives, and fortified with additional Vitamin A and
E to provide its consumers life with the smile and sparkle that it deserves.
Dalda Olive Oil is available in three variants Extra Virgin, Pure, and Pomace. The difference
between the variants of Dalda Olive Oil is their acidity level, which affects mostly taste and not
nutritional content.
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DALDA FOODS (pvt) Ltd.

Dalda Olive Oil Extra Virgin
Dalda Olive Oil Extra Virgin is from the first pressing of the olives and has a strong flavor and
aroma with all natural vitamins. It is naturally enriched with vitamins and anti-oxidants which
may help prevent against heart disease and cancer.

Dalda Olive Oil Pure

Dalda Olive Oil Pure is a blend of refined and virgin olive oil. It is refined using Daldas
International Technology. It has a medium flavor and aroma and contains natural vitamins.

Dalda Olive Oil Pomace

Dalda Olive Oil Pomace is refined and filtered using Daldas International Technology. It has a
light flavor and aroma. It has additional vitamin A as well as natural vitamins.

Manpasand

Manpasand Banaspati
Manpasand Banaspati is produced using the most advanced technology and fully automatic plant
under stringent international quality and health standards. It is manufactured using similar
plant/technology which is used to make Dalda.
Manpasand Banaspati with its granular texture; has a distinguished aroma and taste which
enhances the flavor of the food to an unprecedented level
Manpasand Banaspati is economical in use and enriched with Vitamins A & D to ensure healthy
and great tasting food for your family.

Manpasand Cooking Oil

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DALDA FOODS (pvt) Ltd.

Manpasand Cooking Oil is produced using the worlds best vegetable oils on Pakistans most
advanced plant under stringent international health and hygiene standards.
Manpasand Cooking Oil is a premium blend of Canola, Soybean and Cottonseed Oil.
Manpasand Cooking Oil is best suited for all types of cooking, as it is economical in use and
cholesterol free. It is enriched with Vitamins A and D, which provide your family the health and
care they deserve.

Innovations
Dalda working on its leadership strategy has worked on overcoming its closest competitor. Tullo
an all time famous brand of Wazir Ali Industry is now shining like a precious diamond in
Daldas crown. Dalda has also introduced an Economy class product pride. With the addition
of this product Dalda has got the honor of covering all market segments for edible oil.

Market Segmentation by Dalda:

Premium a Market: 300 K

Tons

Premium B Market: 900 K

Tons
DFLs Brand: Manpasand
Competition: Sufi, Zaiqa &
Mid Price B: 400 K Tons
DFLs Brand: Pride

DFLs Brand: Dalda

Premium Segment
-----------------

Mid Price
.
Segment

Competition: Shan,
Lateef, Data,
Dastarkhuan, Handi &

Competition: Habib,
Mid Price A: 500 K Tons
DFLs Brand: Tullo
Competition: Kissan,
Meezan, G.Sun , Sunny &

Mass
Market

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DALDA FOODS (pvt) Ltd.

Product Mix Table:

S/No Product Name

Dimensions

Price (Rs)

1.

1 kg x 5 (pouches)

640

2.5 kg tin

335

5 kg tin

643

1 liter x 5 (pouches)

625

2.5 liter tin

333

4.5 liter bottle

641

3 liter bottle

395

10 liter bottle

1290

1 liter x 5 (pouches)

600

2.5 liter tin

350

5 liter tin

649

4.5 liter bottle

595

10 liter bottle

1295

16 liter bottle

2095

1 liter x 5 (pouches)

638

2.5 liter tin

345

2.

3.

4.

Dalda Ghee

Dalda Cooking Oil

Dalda Canola

Planta Cooking Oil

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DALDA FOODS (pvt) Ltd.

5.

6.

7.

8.

Manpasand Ghee

Manpasand Cooking
Oil

Tullo Ghee

Tullo Oil

4.5 liter bottle

660

3 liter bottle

380

.9 kg x 5 (pouches)

225

.9 kg x 16 box

720

2.5 kg tin

252

4.5 kg tin

570

4 kg jar

425

2 kg jar

220

9 kg jar

995

.9 liter x 5 (pouches)

600

2.5 liter tin

345

4.5 liter tin

890

1 kg x 5 (pouches)

575

1 kg x 16 Box

1840

2.5 kg tin

295

5 kg tin

595

16 kg tin

1850

1 liter x 5 (pouches)

595

1 liter x 16 Box

1895

2.5 liter tin

295

5 liter tin

610

16 liter tin

1920
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DALDA FOODS (pvt) Ltd.

9.

10.

Pride Ghee

Dalda Olive Oil

(pomace)

Dalda Olive Oil (Extra

Version)

1kg x 16 (pouches)

1640

16 kg tin

1675

1 litre bottle

360

2 litre bottle

715

5 litre

1775

0.5 litre

290

1 litre bottle

550

New Products Introduced by Dalda Foods

Manpasand Ghee and Oil
Pride Ghee
Tullo Ghee and Oil

Products Deleted by Dalda Foods

Nil

Traditional Sales Channels

Factory

Depot

Distributor

Wholesaler

Retailer

Customer
23

DALDA FOODS (pvt) Ltd.

Sales Graph.
Years

Production in Tons

National Sales

Exports

2005 - 2006

65000

50000

14500

2006 - 2007

100000

82450

16000

2007 - 2008

250000

220360

29000

2008 - 2009*

135000

125000

9220

Sales of 2008-2009 are still in progress..

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DALDA FOODS (pvt) Ltd.

Consumption Pattern

AREA

Banaspati

OIL

Punjab

60%

40%

Sindh/Balo.

40%

60%

NWFP

70%

30%

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DALDA FOODS (pvt) Ltd.

Problems Faced by Intermediaries

According to intermediaries major problem faced by the company was when Dalda
Foods purchased the brand name from unilever Pakistan.

Fluctuating petroleum prices raised the transportation charges.

Increased taxes.

Economical unstability, hurting the spending patterns of consumers and retailers.

Increase in inflation has decreased the purchasing power of the consumers. Decrease in
sales has decreased in profit margins.

On going security problems in the country, have created problems in managing supply
chain.

Intermediaries are dealing with general trade only. Now a new type of business known as
Modern trade has been introduced in pakistan like Metro, Cosmo, City Super Markets etc
which has decreased their market share.

Problems faced and Solved by company

Maintaining Brand image after being separated from renowned company Unilever
Pakistan. DALDA Foods maintained the brand image by providing same quality and
customer satisfaction as was promised by Unilever Pakistan.

Has to face retaliation by the consumers and retailers on the introduction of 4.5 kg
packaging of Manpasand Ghee and oil. This was justified by providing a quality product
in shape of Manpasand, which is required in lesser quantity for cooking. The same is
proved, when Manpasand Ghee was declared as the Busiest Brand of Year.

Faced financial crunch due to world wide recession. Introduced economy class products
like Manpasand, pride and bought Tullo Brand from Wazir Ali Industries.
26

DALDA FOODS (pvt) Ltd.

Reduced Sales. Catering the problem by individualized services. Fulfilling the demand of
small customers like retailers by providing a Single Tin of DALDA Ghee and Cooking
Oil as and when requested by the customers.

Less production capacity as compared to demand in the market. Bought the

manufacturing plant of Wazir Ali Industries.

Special Sales representatives have been appointed by Dalda Foods to capture this market
Segment.

Our suggestions to company

The local image of Canola can be cashed upon. As it is produced locally, DALDA foods can use
the slogan of be Pakistani and buy Pakistani. It will encourage the farmers and all the
stakeholders of this industry.

DALDA can adopt backward integration strategy of cultivating palm oil in Malaysia and
Indonesia. The company can hire agricultural land which is suitable for better yield of
palm oil. In this way the company can fulfill its own and the needs of the oil industry. It
will decrease the production costs and increase the profit margin. As a result the prices of
Ghee and oil will be stabilized in the consumer market.

DALDA foods should hire sportsmen as a brand ambassador (especially cricketers). This
will develop a healthy image of their products and will target the youth of the country,
which makes a big chunk of consumer market.

The company can work on diversification strategy, and increase its product line by
entering into new business portfolios. This will increase the shelf space of the Dalda
products. Some suggestions can be:-

1.

Spices and pickle industry

2.

Frozen foods.

3.

Filtered water.

4.

Bakery items (cakes, biscuits)

5.

Desi Ghee

Health tips along with basic information about healthy ways of living should be printed
on the tins/ bottles/ boxes etc.
27

DALDA FOODS (pvt) Ltd.

Free pamphlets containing recipes of different dishes from famous cooking experts like
Zubaida Tariq and Naheed Ansari should be given with the products.

Religious festivals like Eid and Christmas should be cashed upon. Special marketing campaigns
should be launched showing some co-relation between Dalda and sentiments related to them.

Dalda should arrange food festivals with different cooking experts and chefs.

DALDA foods can perform its social responsibility by associating itself with some noble
cause or charity.

28