Macro Micro Factors

ON 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

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Organization Dalda Foods (pvt) Ltd. Pakistan

Brief History Dalda Foods (Pvt)Ltd. is one of the best brand b rand of food and beverages bev erages 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. (Pvt)Ltd. . Within a few years years of its inception, 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 Cano la 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 3 1 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 c ompany 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 o f 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 an d 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 b rands 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 independen tly 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 p romotion 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

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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 an d 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 c onsists of factors that affect consumer purchasing power and spending patterns. These affect the product p roduct 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 bu ying 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. con stant.

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 Bana spati 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 chan ges 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 u p of institutions and other forces that affect a society’s  basic values, perceptions, preferences and behaviors. The company is well in accordance acco rdance 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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