Servceli | Strategy. Identity. Growth.

Pakistan edible oil and fats is dynamic market with share of branded and unbranded of 50 to 50. In the branded segment of cooking oil account 30 percent and Banaspati and Ghee account for 70 percent of that market.

Edible oil and fats market major player are dominating with brands of Soya Supreme and Dalda. They have got relatively big portion of market.

Habib Oil Mills (Pvt.) Limited established in 1955, and is the largest FMCG Company exclusively in the vegetable oil & fats sector in Pakistan. The company produces premium brand cooking oils and hydrogenated cooking mediums. It launched its cooking oil with the blend of Canola, Soyabean and Sunflower. After that, they launch came up with positioning that relate to health as oil ingredient as prescribed by doctors healthy. The result is tremendous Habib cooking oil got 38 percent of the market with the increase of 80 percent of revenue of firm. With this competition become tough when the Dalda Soya Supreme and Habib Oil come head to head with each other. Due to this competition increased by consumer promotion which ultimate objective is to prevent consumer from switching to other brands. After long time of competition prices settled and consumer promotion stops with view that consumer do not switch but look for niche for switching.

Basic strategy in the mind of Habib Oil executives and brand manager is to enter in to the segment of Edible oil and fats market that is relatively attractive for the consumer for health point of view. Also that branded oil segment of Edible oil and fats market has potential of more brands. With the innovation of blended oil which really hits the segment of Oil. Improve promotion strategy when competition was at its top and positioning that depicts that product is health will lead health image in the mind of consumers.

In November 1980, Zulfeqar Industries for the manufacturing and marketing of toilet and laundry soaps. Pakistani soap market is most attractive for the MNC’s and local brands and it has been segmented on the basis of price as premium, popular and discounted. There are many brands in the soap segment such as peer and other mainly targeted to premium segment. In 1969 Capri was launched with box packing and yellow colour and targeted in the segment of premium. Capri positioning was luxurious, family soap at that time and hence successful. In 1980s new concept of introduction of natural ingredients in the soap was introduced, this concept was also successful in the market at that time. The communication problem arose due to lack of interest and for that purpose Capri classic was introduced in 1990 with advertisement campaign. In 2000 when they repositioned their brand from previous to over all skin care to and to beauty by targeting young generation. Variants of the brand introduced in 2007 and got second in the premium segment with market share of almost 46 to 50tpercent.In 2008 fierce competition stats among Capri, Lux and other imported brands with make the market grow.

Majority of customer in the soap market are quality conscious they seek the quality first as this is the matter of their beauty. The Zulfeqar Industries and brand manager use different positioning and product innovation strategies for making the Capri brand grow against their competitors. Initially Capri was positioned as a luxury family soap. It was being marketed as a beauty soap which will give benefit to the beauty of the family. After that they have change the product by different variants by seeking continuous change and updates in the customers changing needs.

Detergent market of Pakistan is attractive and battle place for the MNC’s as well as Local brands. The story begins in 1981 when Lever Brothers launched the first ever branded detergent in Pakistan with the name of “Surf”, and was doing very well because of its quality. When Colgate Palmolive saw the detergent market growth and the potential buyers, in 1982 launched “Brite” a detergent with the same quality and price of surf. Initially the results were excellent and the sales were growing but later Brite was not able to create brand loyalty and the sales went flat, but surf was still doing well. Survey regarding the failure of Brite depict that people were satisfied by surf quality but were not happy by the price. This gave an idea to Colgate Palmolive and in 1986 they launched “Express”, a detergent with same quality as surf and Brite but was priced 30% lower than the other two. This step was a turning point for express sale increases and making it market leader in 1988. After that lose Levers launched “Sunlight” in 1991 which was of same price and quality as express but the results were disastrous and sunlight went away from the market in a quick period. When Colgate Palmolive saw that Levers were trying every strategy to break express, they launched “Bonus Tri-Star” in 1992 another detergent by Colgate Palmolive produced for the lower segment. Lever saw surf was not doing well they launched in 1995 “Wheel” a competitor of bonus sunlight .Wheel was of same quality as bonus but was priced even lower. It was a success, and in 1996 wheel got 60% of lower segment market share while bonus decreased at 40%. In After that Brite Tri-star 1999, Bonus tri-star gets at tope by advertisement and marketing activities.

Majority of customer in the detergent market are price conscious they seek the price first and quality second to price. The major strategies seeking in the Bonus story are pricing that directly targeted to low income consumers that was not identified before. They have kept in mind customer needs and constantly adopted the cost reduction strategies