TEAM MEMBERS
Ansh Kumar 26347
Fahad Ahmed 26076
Maham Mohsin 26474
Neha Batool 26098
Saad Muhammad Tariq 26370
Complete analysis on The Retail structure in relevance to The Edible Oil
Principles of Marketing (7434)
INdustry
Retail Assignment (Fall 2023)
Introduction
The distribution system remains one of the key elements involved in the marketing decisions for
a product. Retailers are not only important parts of the distribution system, but also act as a
crucial asset for firms to effectively market their products to the intended audience.
This report aims to summarize the findings our group has made on the retail structure that is
currently adopted by companies operating in the edible oil industry of Pakistan. Dalda has been
chosen as the prime company for the basis of this study while Eva and Mezan act as competitors,
giving us a rounded off view of the industry as a whole.
The methodology for this project involved physically approaching retail stores in the categories
of IMT’s, LMT’s, general stores and kiryana stores to keenly analyze the retail structure. Our
group members then collected the relevant information regarding said products from pricing and
availability to placement and merchandising. A survey of questions was also taken from the
shopkeepers or the relevant staff in order to gain a deeper insight of the retailing activities
performed. The report also includes an analysis of several E-Tailors as they have shown recent
growth within the market.
Observation and Analysis
Ambience and store layout
Unsurprisingly, the ambience observed within LMT’s/IMT’s was much better compared to
conventional. These larger stores are able to accomplish this task with the help of a number of
key elements: the stores are kept brightly lit in order to aid the visibility of shoppers,
LMT’s/IMT’s are able to effectively distribute products across their stores due to their large size,
LMT’s/IMT’s employ a larger number of staff helping the store remain fresh and well
maintained.
The main difference between the store layout between conventional stores and larger
LMT’s/IMT’s is observed in how each store is able to display the products. Larger stores such as
Carrefour had much more spacious aisles that allowed customers to move freely and locate
products easily with the help of larger and broader shelves. Most conventional stores tend to
have cramped aisles as they aim to hold the maximum number of goods within the given area of
the shop.
Additionally, LMT’s/IMT’s often hold smaller food courts or cafes like the ones observed in
Metro or Carrefour, this along with the cheery music helps keep customers in a positive mood
which studies show increases the number of sales in a store. General stores mainly rely on the
friendly nature of the shop owner, which tends to attract customers to the store.
Difference in retail structure between conventional stores and LMTs/IMTs
To understand the retail structure of each type of retailer, it is first crucial to analyze the function
of each store in a society. LMT’s/IMT’s primarily focus on fulfilling all the needs of a customer,
as evident by our research, we can observe LMT’s/IMT’s hold the largest variety of SKUs.
LMT’s/IMT’s are visited monthly as the average family buys groceries on a month-by-month
basis. On the contrary, conventional stores act as a convenience to customers by providing SKUs
that are in larger demand rather than providing every unique product. Our research shows that
most conventional stores are likely to hold products such as the 1 liter pouches in higher volume,
these products remain in frequent demand of the customers.
The pricing strategy of these stores is also reflective of this fact. LMT’s/IMT’s compete on the
basis of lower prices as most individuals are likely to do grocery shopping from a store providing
better value, whereas conventional stores tend to charge a higher price than LMT’s/IMT’s as they
provide a better convenience to the customers by being close by and avoiding travel to another
store.
Online vs Offline
Online stores that are more established in the market such as Al-Fatah and Qne or online stores
operated by the retailer themselves such as the Naheed online store provide a comparable catalog
of goods as physical stores. Pricing in some cases is was better online than physical stores but
these prices do not reflect the delivery costs associated with buying goods online.
As for the rest of the E-Tailors such as Pandamart and Kravemart, they acted similar to
conventional store, holding SKUs that are in demand by the general public and having no
availability of larger containers of cooking oil.
Marketing
Point of Purchase strategies
Point-of-purchase techniques encompass the marketing and sales strategies
deployed by stores to influence consumer decisions right at the moment of
sale. Our observations during shopping excursions revealed the effectiveness
of creating visually appealing in-store displays that showcased specific
products or promotions. In terms of the POP strategy, both Dalda and Eva
were strategically positioned near the checkout area, utilizing eye-catching
displays to generate immediate appeal and spur impulsive purchases.
Dalda and Eva were also allocated distinctive, standalone shelves in Chase
UP and Chase Plus, accentuated by color-coordinated and thematically
decorated arrangements. The shelves featured transparent pricing and
promotional details, with product discounts prominently highlighted on
banners to attract the attention of passersby. As part of their promotional
efforts, Dalda enticed consumers by offering samples of Shan or Mehran
Bombay biryani masala.
In larger stores such as IMTs and LMTs, products were meticulously arranged
in well-lit displays to enhance visibility. Online retailers like Pandamart, Qne,
and Alfatah provided exclusive discounts on Dalda, while Mezan encouraged
repeat purchases. Furthermore, Dalda's products were showcased as icons in
the edible oil and ghee category, automatically positioning them as the
preferred choice for consumers.
ALT and BLT marketing
In today's marketing landscape, many brands are adopting TTL (Through The Line) Marketing,
which combines both ATL (Above The Line) and BTL (Below The Line) strategies. This
integration is crucial, considering the significant role that social media plays as a source of
entertainment, alongside the continued importance of mass media like television.
For instance, television campaigns highlighting the health benefits of Dalda are synchronized
with in-store promotions and engaging displays, ensuring a consistent message. Eva's emphasis
on quality in ATL materials aligns with BTL efforts such as tasting events or cooking
demonstrations within the supermarkets. Mezan's purity messaging in ATL channels is reinforced
through BTL activities like loyalty programs and exclusive in-store offers.
This integrated approach aims to create a comprehensive brand experience, capturing a broad
audience through ATL while fostering individual connections through BTL strategies within the
specific retail environments of Bin Hasim and Al Jadeed Super Market.
Merchandising/In-store advertising
Merchandising is an essential business practice and process that involves the deliberate and
strategic presentation, promotion, and sale of products to customers. Whether conducted in
digital or physical retail environments, the art of merchandising is employed by retailers to exert
a nuanced influence on customer intent and proficiently attain sales targets.
LMT’s/IMT’s are often given a larger budget for merchandising, thus the presentations of
products is always done to a higher level at larger stores. Dalda and Eva have employed the
tactic of employing sales representatives around the market that help sell the products to
customers on the facility itself. As studies have shown, people are more likely to make a switch
or try a new product if they are approached by a representative of the company. Mezan has
chosen the route of creating a marketing campaign that utilizes cartoon like animation to attract
customers through nostalgia, larger IMT’s such as Carrefour have special shelves set up for
Mezan advertising the same campaign.
The conventional stores are almost given no budget for merchandising and rely on simple posters
or cardboard cut-outs to merchandise.
Promotions and Discounts
Most LMT’s/IMT’s provide discounts on units that are of larger size in order to tempt customers
to spend more as there is a perception of a “better deal”, while some stores such as Naheed have
opted in for bundling Dalda products with other food items such as ketchup by Knorr.
E-tailers often provide discounted rates and due to the current 11.11 sale, they have also had
offers across the board of all grocery products ranging from 5% all the way up to 20%.
Shopkeeper’s comments
Dalda
Dalda remains as one of the most successful companies in the edible oil industry, as people have
placed their trust in Dalda from generation to generation. Although as of recently, shopkeepers
have noticed a slight decline in the popularity of their products. This change is likely due to the
current boycott of Israeli products in Pakistan, despite the fact Dalda is not a part of Unilever.
Owing to the sensitivity of the matter, Dalda cannot make any aggressive changes as of now and
simply has to wait for things to go back to normal.
Eva
Eva products have faced the effects of being an alternative brand to Dalda, as the popularity of
Dalda products has decreased, more and more consumers are moving to Eva as the next best
alternative. This aspect can truly be observed in general stores as they have increased their
stocking of products by Eva.
Mezan
As of now Mezan is trying to penetrate the market by introducing a new product into the market,
this product is called the “Royal Cooking Oil” and is trying to target the upper class of Pakistan’s
society. The packaging of this product is specifically made to stand out as they use an
unconventional color scheme of black and yellow.
Conclusion
In conclusion, it is asserted with confidence that the contemporary edible oil market is
characterized by competitiveness and robust growth. While Dalda has consistently maintained its
leading position, formidable challenges have emerged in the form of strong competition from
brands like Eva and Mezan. The retail landscape of this market exhibits a notable diversity,
varying across different stores and geographic locations.
The enduring success of Dalda in the edible oil market is fundamentally rooted in its long-term
commitment to building and maintaining customer loyalty. Through years of unwavering
dedication to quality and customer satisfaction, Dalda has established a robust rapport with its
consumer base, underscoring its resilience and sustained market leadership.
