Introduction

Dalda Foods (Pvt) Limited, (DFL), is one of the largest

cooking oils and Banaspati manufacturing and marketing
company in Pakistan.
Dalda is one of the brands of DFL. Dalda is a premium
brand, it targets females belonging to upper and upper
middle classes, being the decision makers in the family.
Dalda foods separated from Unilever foods
 Mission
We make a positive difference in the lives of people with our
products and services.

Core values
Integrity
Fairness
Trust
Accountability
People reaching their full potential
 Organogram of DFL Sales Department

Chairman

CEO

Director Director Director Director

HR S&D Marketing Finance

GM HR GSM

RSM

ROM

ASM

Sales
Executive

TSO
 Strategic Business Units (SBU)
Edible Oil and Ghee
Dairy
Snacks and Beverages
 Edible Oil and Ghee
 DAIRY
Cupshup
 Cupshup
The new brand CupShup is a liquid tea whitener to be used as a
substitute for milk.
The category was believed to have great potential for growth with
a whopping compounded annual growth rate (CAGR) of 25%.
CupShup targets SEC C, D and E.
To make tea from tea whiteners is an economical idea, from a RS
20 pack 8 to 10 cups of tea can be made easily.
CupShup initial marketing budget is RS.360 million compared to
Tarang which is having a marketing budget of RS. 600 million.
Among all distributors, 70% of them were hired exclusively for
CupShup and 30% of the distributors are of Dalda, who will also
handle CupShup.
Available at 50,000 small retail stores across Pakistan
Expected to gain a shelf share of 10 percent compared to all the
other tea whiteners available in the market
CupShup Product Line

CupShup has three SKUs.

125ml
200ml
250ml
 Upcoming Brands
They are planning to enter in the snacks and
beverage industry.
TEA WHITENERS IN
PAKISTAN
Tea whitener is a growing category with a lot of potential
(CAGR of 25%).

Tea is a common mans drink. Pakistan is the seventh

largest consumer of tea. According to Aurora, Dawn, 660
million cups of tea are made annually.

According to Dairy Index Consumption by low-income

consumers in developing markets is forecast to increase
from about 70 billion liters in 2011 to almost 80 billion liters
in 2014. The rural market is untapped.
 ROUTE TO
MARKET
STRATEGY

H
DISTRIBUTOR DIRECT
DISTRIBUTION

ACCESSIBILITY

BOP MODELS
SUB-
OUT REACH
DISTRIBUTORS
PROGRAMS
HANDLING
RURAL ENGAGEMENT
PARTNERS
L PROGRAMS
FRANCHISE

POTENTIAL
H L
 STRATEGIES FOR WINNING
DISTRIBUTOR PREFERENCE

Market Power
Low High
Building
Low

Suicide Pull
Distributor Strategy Strategy
Relation
Building

Push Win- Win

High
Strategy Strategy
 Wet Market

Retailer

Customer / Shopper
Sub-
Distributor Wholesaler

Distributor LMT

Key Accounts
MARKET SHARE

Sales

29% Tarang
40% Tea Max
Cup Shup
8% other
23%
 Channels
Distribution 103/6
Sub-Distributors 200/125
LMT ROI Calculating Model
KPI Monitoring
Wholesale
Retail Factory Maga Mandi Raivind
Stocking Point NO
Transit Time 2 days
SERVING MODEL ORDERING PROCESS

Frequency/ Numeric & Weighted

Number of cans
Order booking/ Spot sale
Distribution Structure
SERVING MODEL

Shops per day 50

Average Order Bookers (O.B)
Number of shops per OB 300
Number of shops per distributor 3000
Frequency Once a Week for all channels
1 Van for every two OB
Spot Sale on

Numeric Distribution 60% of

Weighted Distribution 90%
 Effective Coverage
Numeric Coverage 90%
Bill Productivity 75%
SKU per call 2 sku.
Time per production call
Quantity differs according to shop class

ROI Method:
SKU ROI Method
BPR

Started with Retail and then moved to Wholesale and High Potential
Output (HPO) and give them .couldnt understand
Trade Events/ Awareness .
Float activity to create awareness and customer trials
Vigo activity
Launched in August and batch fault accommodation in October
All stock was lifted back and returned to Lahore factory
40% stock was lifted and returned
NOW, Cup Shup is THIRD biggest brand in Pakistan after Tarang and Tea
..
Not only in value but also has brand equity
Last week closed at highest ever Black ..
Distribution

CupShap has direct distributor for urban market whom

they sell directly on a discounted price of 2-3 % from
invoice price. They have around 103 direct distributors. (6
Karachi, 3 Rawalpindi, 7 Lahore, 5 Multan, 5-6 average)
who are responsible to sell CupShap products in urban
market.
Each CupShap distributor covers 3000 outlets on average.
Selection criteria for
Distributors
Financial Strength of Distributor
Efficient Infrastructure
Logistic Fleet
Efficient and Trained Sales Force
Past Experience of Distributor
Market Knowledge
The use of new Technology (IT)
MONITORING ROI

Distributors are the backbone for any company; they take

good care of their distributors, sometimes company pay
extra to the distributors if their ROI is not up to the mark.
TSMs keenly monitor the ROI of the distributor and assist
them, in order to make sure their ROI must be round 1.5
to 2%
Payment procedure:

Three instruments are considered for payment procedures:

1. Remittance plus
2. Demand draft
3. Pay orders

As a result Payment Receipt Report is generated which shows us the

name of all the distributors who made the payments and whether
the payment was sent via remittance plus or demand draft etc and
name of the branches through which the remittance was sent.
After conducting the payment procedures another document is
generated which is known as the Distributors Account Statement
Summary. When distributor sends us the amount it is credited in our
account as it becomes or liability that is because we have not
delivered the stock yet.
Lead Time

Lead time of order placement to order fulfilment: 18-24hrs

Shelf life is 72 days
Whole Sale
Whole sellers are the key factor for any distribution channel, they
buy in bulk and sale to retailers by keeping their margin. But if they
become stronger they create their monopoly because they can shift
to any brand any time which could cause the drastic decline in the
sales.
Engro foods apparently discourage whole sellers by making
following policies
1. Distributor gives only Rs.3 per carton discount to whole sellers
2. Distributor can only sell 35% of its target to Whole seller
3. CupShap can only pay the compensation of those 35% rest can be
paid by distributor itself
On the other hand CupShap runs whole sale loyalty programme in
which they offer 2% rebate to selected wholesalers depending upon
pre-defined targets.
LMT ..
Local modern trade (LMTs) have emerged this market allot and
contributing approx. 20% of the total sales. Imtiaz, chaseup,
Naheed and other stores are considered as the key accounts in
CupShap. Although as per market trend companies sale them
directly being major player of the market while CupShap managed
them through their distributor but offers discount like 3.2%
(including FMR) to LMTs which is highest discount to any partner
by CupShap.
Retail ....
Retail is the point which connects end user to the company, plays
a vital role in the sales of any product. As much
reachability/visibility of your product has that much sales could be
increased.
There are almost 350,000 retail outlets across the Pakistan while
only 200,000 (60%) covered by CupShap remaining either sale
their product through other channel or dont sale their products.
TSMs of every territory have the target to increase at least 15%
outlets means coverage of their product per year.
Sub Distributor:
CupShap follow Sub distributor model in rural market of Pakistan.
They have around 500 sub distributors across the Pakistan which
purchase CupShap products from Handling agent on the same
price as of distributor. CupShap is responsible to deliver the goods
at sub distributors ware house. Sub distributor is then responsible
to sell the CupShap products to retail outlets at rural market.
Sales Cycle
CupShap distribution cycle based on AV model (availability &
Visibility). CupShap focuses on increasing their outlet coverage
they follow ghost outlet program to find out hidden outlets as well
as give trade offers on the basis of score model which relates with
the availability and visibility of their product. The more the outlet
visible their product the more they have chances to get better
trade offers.
The distribution network is in directly link with CupShap by Orange
software. CupShap provides proper PJP to distributor in which all
the data regarding the route and the shop is updated which
ensures the coverage of CupShap in market.
The key indicator for the CupShap sales at distributor end is the
KPI (key performance indicator) sheet which shows the TT (total
target) per SKU and BTA (balance to achieve) per SKU. They
monitor the outlet productivity and call productivity as well.
Order booking
Order booking is mainly used for the A+, A, B class shops. The order booking sales
cycle starts with the morning meeting between TSM and order booker in which they
discuss about the todays target as per KPI sheet, Outlet and call productivity and route
defined by the PJP. After finalizing the todays target and agenda the order booker than
dispatched to the field and visit each outlet as per PJP in order to take order on his
Hand held device (HHD). HDD has built in storage in which all the details of the outlet
and the trade offers if any provided by the CupShap is stored. Order booker record
each outlet order in the HDD and return to office where he connects the HDD with the
system to generate the order. DSR has been generated on the basis of order which was
discussed by the TSM in the De-briefing in evening.
Next day the delivery man directly visits KPO to collect load sheet from him. Load
sheet is made on the basis of orders booked yesterday. It contains all the detail related
to deliveries to be made. The delivery man then goes to warehouse and collect the
product as per load sheet and get it loaded on truck. There may be one delivery man
with one order booker or there may be one delivery man with several order bookers. It
depends upon the sales section they are working in. If the order size is big then one
delivery man with one order booker and in case of smaller order sizes there may be
one delivery man with several order bookers. Delivery man update the stock to KPO if
there is any return order. KPO then recheck the delivered items with the order booking.
Spot Selling

CupShap focused spot selling mainly on C class category outlets.

Spot selling cycle starts with the morning meeting with TSM in
which they discussed targets on the basis of KPI. Spot seller the
load the aggregate load which is given by the company on the
basis of past experience and new focused product plan. Spot
seller than follow the route as per PJP, deliver CupShap products
and give the bill by the hand held printer. On return he updated
the orders in the system by which DSR report is made and
discussed in De-briefing.
If an SKU order is exceeded from the aggregated load, spot seller
than go the warehouse after completing the PJP, load the ordered
no of SKUs and then delivered it to respective shops.
Designing of PJP
Every Order Booker and Delivery Man has a PJP which is called as
permanent journey plan. PJP is basically an area which is assigned
to any of them. All activities are performed as per the PJP plan.
PJP is designed by their territory sales managers, and they
constantly look for new outlets in the area.
They have software called ORANGE (like Unilevers ULTRA),
through which they can easily update their data base.
Mapping of universe and methods for
finding out new outlets
Engro Foods conducted mapping of Universe exercise first in 2008 that was called
IBEX and later in 2013 titled Discovery. In 2008, some 13,000 outlets were
identified in Karachi while 2013 exercise increased that number to 18,000. Still
according to AC Nelson, Engro has only covered 58% of the universe, mapping of
universe is done through their Territory Sales Managers.
All outlets are added into universe through a proper procedure which is explained
below:
1. Order booker or Deliver Men identifies an outlet.
2. Information of outlet is provided to TSO by OB/DM.
3. TSO visits outlet and checks the physical presence of outlet.
4. TSO also introduces his company and products to shop keeper.
5. After TSO verification, location of outlet is discussed with ASM and outlet is associated
to a particular Order Booker.
6. Days of visit, vehicle through which it will be served is also decided here.
7. After all this process, outlet information in provided to be entered in the SnD system.
8. After entrance in SnD system outlet will be available for sales to Order bookers.
Distribution claim

CupShap offer 0.67% of Fixed Market Return (FMR) to their

distributor on each invoice.
Distributions van compensation
model.

Engro Foods generally does not share any cost of operating

distribution vehicles nor does it give any compensation to
distributors for vans. The philosophy of Engro Foods is to cover all
such expenses through distribution margin which is around
3.67%.
However, if the Distributors ROI is below 2%, the company offers
fixed compensation to cover their expenses. This generally
happens in far flung areas under the No Go Areas Project.
CupShap follow compensation model on Ghost outlet program.
Transportation cost of new outlets that were found in ghost outlet
program are being compensated by company till 3 months to
smoothen the coverage on new outlets.
MARKET RETURN POLICY
Serving Model

1 DSR visits 40 shops per day

Shops covered by a DSR = 40 x 6 = 240
Total number of shops per distribution = 1700
Retailers = Wholesalers =
LMT = Key Accounts =

Channel Frequency DSR Salesman No. of Vans Loader

Retail Once a week 6 3 3 3

Wholesale Once a week

LMT

Key Accounts
 ..

By . Distributor -4 million
Average ROI 2%
Average Sale
. Sharing

Aggressive Marketing
Advertisements with good celebrities

TOTAL UNIVERSE
SEGMENTATION
G.S DFL Value 32 billion
Bakery
Mohallah store / MOM/POP
Daily handler/ . Shops Bluebank is totally
manufactured by DFL.
It is also competitive
Key Account Channel
advantage of DFL and a big
CSD reason of entering this
CNM business.
Utility Store
Offices

RECOMMENDATIONS

Building relationships with trade to develop TRUST.

Improve TRUST.
Increase Stocking points as their sales are increasing
Trang has large pack of .. So they should also launch
Trade oriented .. (schemes)
Thank you!!
Q&A