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Micro and Macro Environmental Factors

Submitted to: Mam Ammara

Submitted by: Muhammad Taha Khan

Roll no: 07-06

BSIT(4th Semester)

Department Of Computer Science

Bahauddin Zakariya University Multan

Marketing
 Organization

Dalda Foods (pvt) Ltd. Pakistan

Brief History

Dalda Foods (Pvt)Ltd. is one of the best brand of food and beverages industry in
Pakistan. At frst it was a brand of Unilever Pakistan and was a project of 4 billion rupees.
In July 2004, Unilever Pakistan accepted the offer of Rs. 1.33 Billion for the sale of its
"Dalda" brand to Dalda Foods (Pvt)Ltd. . Within a few years of its inception, Dalda
Foods has become one of the largest foods FMCG organizations in Pakistan leading the
local category of oil and fats. In Pakistan, Dalda has now divested into Canola and Olive
Oil product variants as well.

Product Selected

Dalda Banaspati Ghee

Micro Environmental Factors

The factors that are close to the company and that affect the ability of a company to serve
its customers. There are six different factors that are generally treated as “Micro
Environmental Factors”. These are

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 • The Company
• Suppliers
• Intermediaries
• Competitors
• Consumer Markets
• Public

The Company

As it is mentioned in the history portion that Dalda Foods was basically a project of
unilever but it but unilever decided to sale out this brand to Dalda Foods. At that time it
was a project of 4 billion rupees. It were the devotion and the company policies that held
this brand alive in the market and during 4 years span of time the company progressed
and now it is a 31 billion project and also the second largest brand of Pakistan after
Nestle.

Intermediaries

Company does its marketing itself. The product’s advertisement is done through an
advertisement firm “Makan Ericson”. But this advertisement is just for promotional
purpose because the company is well established and also its not in introductory stages.
For the product containment the company involves physical distribution firms or
handling distributors. In Multan region Aaqib Bros. is working as handling distributors
and provides transportation and warehouse to supply goods to resellers of Multan region.
This factor helps out the company to provide goods to final consumers in a more
efficient and organized manner.

Suppliers

In micro environmental factors we take those suppliers into account that provide raw
material for the product. In case of Dalda Banaspati ghee the raw material is “Palm Oil”
that is being transported from Malaysia. Another raw material is the “tins” in which the
final product is contained. It is also outsourced.
Palm Oil is imported through shipments and the premium brands of this industry like
“Habeeb” and other brands are also involved in this import and other small brands
purchase the raw material from them. The company policy is to revise the rates after
every three months if it is needed. If the price of raw palm oil decreases in the
international market and suppliers decrease the price but the company has the stock of the
product that was purchased at high rates then it will create a problem. In this case
company handles it by maintaining the prices for as long as they can and then gradually
decrease them.
Supplies are always available in time and increase the availability of the product in the
market.

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Competitors

There are basically two types of competitors good and bad. Good competitors are those
that don’t spoil the market. They make work in collaboration of others. For example if
they have to increase the rates they take decision with the other premium brands so they
don’t spoil the market of other brand. Dalda is one of those competitors.
When we talk about the bad competitors these are the ones that spoil the market. For
example the major competitor of Dalda Banaspati ghee in Multan region is “Sultan
Banaspati” they take such decisions independently and the retailers take their product
more because this earns them more profit also they don’t have sense that Dalda is a
premium brand while Sultan is not. Also when they decrease their rates they take an
independent decisions hence spoiling the market of our product.

Consumer Markets

There are three types of consumer markets that are involved in the sale of Dalda
Banaspati. These are

• Reseller Markets
• Government Markets
• International Markets

Reseller Markets

Different distributor firms buy the product from the company and sale it to the
wholesalers as well as retailers and hence increasing the product’s sale volume.

Government Markets

Government Markets are involved in the sale of Dalda Banaspati e.g. in the form of
utility stores. It also increases the sale of the poduct.

International Markets

Dalda Banaspati ghee is sold in several small foreign countries. This provides new
horizons for the sale of the product.

Public

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The product has not much issues n terms of public. Just financial public and media public
are involved. Banks finance the product for the import of raw material and issue the
“LC”(Letter of Credit).Media Public help in the advertisement and promotion of the
product e.g. “Makan Ericson”.
Macro Environmental Factors

These are the large factors that affect the micro environment. These include
• Demographic Environment
• Economic Environment
• Natural Environment
• Technological Environment
• Political Environment
• Cultural Environment
Few of them are discussed below that affect the product majorly

Demographic Environment

It’s the study of population in terms of size, location, age, occupation, gender and other
statistics. The product is made for people of every age group, every occupation, gender
and readily available at any location and is being used by the people.

Economic Environment

The economic environment consists of factors that affect consumer purchasing power and
spending patterns. These affect the product in two ways
• Changes in income
• Changing consumer spending patterns

As Dalda Banspati ghee is a premium brand it is maintaining the highest price in the
market this price is being maintained on the basis of its high quality. The company is
paying five thousand per ton sales tax an increase of thousand rupees in this will cause a
5 rupee per kg increase in the price. The buying patterns of significant middle class
customers change immediately as this type of change occurs. So the company tries its
best to keep the rates constant.

Natural Environment

The natural resources that are available and are being used as the raw material for
manufacturing different products play an important role.
As the raw material for the Dalda Banaspati is palm oil that is being imported from
Malaysia and is a natural resource is available in the forms of large forests and it can be

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regenerated as it is a plant so its not a major issue for the company. On the other hand the
polluting environment can cause serious impacts in future times.

Technological Environment

The technological environment changes rapidly. All the today’s common products were
not available 100 years ago or even 30 years ago. The product production at Dalda Foods
follow new technological principles latest machinery and hence give a pure, nutritious
and readily available products to our customers.

Cultural Environment

The cultural environment s made up of institutions and other forces that affect a society’s
basic values, perceptions, preferences and behaviors.
The company is well in accordance with the cultural values. Our slogan is “Jahan Mamta
Wahan Dalda”. All the products used in manufacturing the product are ‘halal’ and have
no issues with the cultural values and the product is being well accepted by the
customers.

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