LUCY OLIVA A product of Spain History

Olive oil is oil extracted from olive which is a traditional tree crop form Mediterranean region. It is commonly used for cooking, cosmetics, pharmaceuticals, soaps and as fuel in traditional oil lamps. When we extract juice from an orange we get orange juice but when we extract juice from olive it is olive oil reason is because it is so pure that it is oil. In Spain Arabs planted olive trees. Olive in Arabic is Al Jaith. In Spain the use of olive oil became very popular. It was used to light all the street lamps. Even the word for oil which is Aceite Oliva derived from the word al Jaith. Lucy Oliva was originally imported in Bangladesh by various importers located in Mitford (whole sale market for medicine) in the late 70s. Import was originally for medicinal purposes for example after surgery olive oil was applied as a moisturizer which helped in the healing process. In mid 80s olive oil was categorized as cosmetic item for skin care. Lucy Olive oil is a product from Spain. Since mid 80s Mousumi enterprises Ltd. Imports Lucy olive oil for more than two decades now and distributes across Bangladesh. Olive oil comes in two types Extra virgin olive oil is the extract from the first press. It is in the most purest form. There is no use of chemicals in any of the process. This type of oil tends to be sticky and is good for cooking purposes. Pure olive oil is filtered again with no use of chemicals. This kind is less sticky than the pure version and has a longer shelf life. It is more refined therefore it is best as skin care purposes. Everywhere in the world olive oil is used and famous as a food product. Only in Bangladesh and few other countries it is used as a skin care product. Maximum sales are in skin care sector. It has become a household name and the image of the product is almost iconic in Bangladeshi culture. Whenever we think of a mother using oil to moisturize her child we picture the Lucy olive oil bottle.

Product Elasticity/ Price Elasticity

Price elasticity for example if price of diamond falls too much people will stop buying it, on the other hand, if the price of rice goes up too much people will stop buying rice. In case of Olive oil interestingly it works both ways. For instance as a moisturizing oil if the price is too high people will not buy it. But as food oil if the price is too low people will question its quality and would wonder if it is healthy enough to eat. In Bangladesh it is mostly used as a moisturizing product and the profit margin in cosmetics is better than in food sector. Maximum sales are in skin care. Packaging: Tin container which is the most popular. Glass bottle and plastic bottles are also available.

Keeping the price low is better. Glass bottle up to 500 ml is available. Food oil: Glass and plastic bottles are only available. Sizes are 250ml up to 5 liter.

SWOT
Strengths They are the market leader of olive oil. The competing brands local and foreign are far behind in terms of the volume of sale in comparison of Lucy olive oil. It is a well established known brand with loyal customer line of more than two decades. Brand loyalty is one of their biggest strengths which is very hard to establish in todays hyper competitive market. Superior quality due to the origin of the product, Spanish olive oil is world renowned for being the best quality olive oil. Since it is a foreign brand in Bangladesh consumers perceives it to be superior in quality they often have doubts about the quality of local brands. They have a strong well established distribution channel. They highly concentrate of trade offers and sales incentives to keep their distributors happy. They spend most of their effort in trade as oppose to in marketing their product by involving in BTL activities which are below the line activities. Weaknesses There is no emphasis on advertising. There are no TV or radio commercials of their product currently. Due this they run the risk of loosing new markets. There has been no product upgrades. In terms of packaging there have been upgrades periodically but the product itself has not been upgraded. In terms of olive oil itself there are not many options for upgrade since it is in its purest form. This product is highly concentrated on cosmopolitan regions. Price sensitive customers are not able to buy due to high price. In that case local brands are able to capture those markets which in Bangladesh are the bigger portion of the population. The product is Spain based. With many uncontrollable and unpredictable factors keeping price down may become an issue. For example if importing tax increases or tin price increases globally then it will effect the cost of the product. Also if for any instance there is shortage of supply of the product from Spain there will be a gap in the market.

Opportunities
As BD culture is changing more and more people are becoming health conscious. Being the big brother will help. The food market of olive oil is growing as many are facing health issues. Olive oil as a food item has tremendous potential for growth in Bangladesh. In terms of product differentiation they can introduce a line of cosmetics products such as olive enriched lotion, soap cream etc. Since the brand is well established these items may be received well in the market.

Threats
Local Brands are also establishing their market. They are able to keep prices low. Also there are foreign brands that are possible threats. Oli Italia tried to capture the food sector (they failed packaging was not that good) There are also fake The next generation will be not be known to this brand. Product: Olive oil Extra virgin: Selected without seed olives, after wrapping in special cloth enters the processing machine without use of any chemicals. After the first extraction the purest from olive oil is referred as extra virgin oil. Best use is for cooking purposes. Olive oil Pure Selected without seed olives, after wrapping in special cloth enters the processing machine without use of any chemicals. After two extractions one after the other the oil that is produced is referred as pure olive oil. Best used for Skin care purposes. Exporting Country: Spain Package Sizes: 150ml, 250 ml, 300ml, 500ml, 1Liter, 2Liter and 5 Liter. Distributed by: Mousumi Enterprises Ltd (Aman Group) Dhaka Bangladesh Locations: All over Bangladesh 156 outlets through 104 sales employees, in all major cities, in small large markets total 58000 stores carry Lucy olive oil. Use: Cooking, Health benefits, Skin care, food presentations. Benefits: Infants Skin care Children skin care best for delicate skin because it 100% chemical free Children bone strengthening Brightens Skin Make up remover Hair oil Reduces hair fall and strengths hair roots Helps reduce wrinkles and tightens skin Lucy Olive oil for the Health Conscious Health Benefits Protection against Heart Disease Reduces chances of developing Blood clots Prevention of Breast Cancer Prevention of Skin Cancer Helps fight Diabetes Helps reducing High Blood pressure Beneficial effect on Ulcers and Gastritis Reduces unnecessary Fats in the Body Major Competitors

1. Ambassador Olive oil (Mousumi Enterprise ltd.) 2. Meril Olive oil (Square pharmaceuticals) 3. La- Espainol olive oil 4. Olitalia 5. Kirlanzic olive oil 6. RS olive oil Market Share: Yearly approximate: 28 Billion Tk worth olive oil is sold in Bangladesh. Mousumi enterprise ltd sells 13 Billion Tk (Lucy olive oil and Ambassador olive oil combined). Yearly market share is 47%. Lucy olive oil only sells 6 million tk market Share of 20% Ambassador is 7 million Tk 27%. Seasonal Trend Jan Feb Mar Apr 15% 5% 2% 2% May June July Aug Sep Oct Nov Dec Total 2% 2% 3% 8% 10% 15% 20% 20% 100%

Apart from these known Brands every year new Brand names in olive oil come in the market but they are not able to sustain that long and leave the market. Future planning There is more awareness in skin care, increase health consciousness by promoting through doctors recommendations and endorsements, Beauty and skin care research institutes or celebrity endorsements have increased the demand for olive oil in Bangladesh. There is not enough products available in the market that can meet the growing demand of the product. Because of this many olive oil importing companies facing risk of remaining in the market. Compared to other brands Lucy oil has been accepted in the market the most and has been successful due to its strong distribution network and if this is maintained it will remain as the market leader because this is an area where other brands face the most problem which is poor distribution channel. The main producing and consuming countries are: Annual per capita consumption (kg)[43] 0.43 13.62 12.35 23.7 7

Country World Spain Italy Greece Syria

Production in tons (2009)[41] 2,907,985 1,199,200 587,700 332,600 168,163

Production % (2009) 100% 41.2% 20.2% 11.4% 5.8%

Consumption (2005)[42] 100% 20% 30% 9% 3%

Tunisia Turkey Morocco Portugal France United States Others

150,000 143,600 95,300 53,300 6,300 2,700 169,122

5.2% 4.9% 3.3% 1.8% 0.2% 0.1% 5.8%

2% 2% 2% 2% 4% 8% 18%

11.1 1.2 1.8 7.1 1.34 0.56 1.18

Islam
In Islam, olive oil is mentioned in the Quranic verse: "Allah is the light of the Heavens and the Earth. An example of His light is like a lantern inside which there is a torch, the torch is in a glass bulb, the glass bulb is like a bright planet lit by a blessed olive tree, neither Eastern nor Western, its oil almost glows, even without fire touching it, light upon light." The Qur'an also mentions olives as a sacred plant: "By the fig and the olive, and the Mount Sinai, and this secure city."[68] Olive oil is also reported to have been recommended by the Prophet Muhammad in the following terms: "Consume olive oil and anoint it upon your bodies since it is of the blessed tree." GRAPHS

Market Share
1% 2% 11% 6% 18%

L uc y Am ba ssa do r Me ril L a -E spa inol Olita lia

14% 28% 20%

K irla nz ic R S Olive oil Othe rs

Seasonal Trend
25% 20% 15% 10% 5% 0% J an F eb 5% Mar 2% A pr 2% May 2% J une 2% J uly 3% A ug 8% S ep 10% Oct 15% Nov 20% Dec 20%

S eries 1 15%

Worldwide Consuption (Annual) 1%

S pain Tunis ia F ranc e 2% 1% 14% 15% 9% Italy 1% Turkey US A 2% G reec e Moroc c o O thers 17% S yria P ortugal

9% 29%

Last 5 Years sales

3000 2500

S ales in B illions

2000 1500 1000 500 0 2007-08 2008-09 2009-10 2010-11 2011-12 150gm 1004 1339 2491 2182 2550 250ml 1492 1990 1538 2480 2950 300gm 270 360 633 523 400 500ml 283 377 524 721 900 01 L tr 141 188 328 73 400 2 L tr 42 56 96 53 400 5 L tr 112 150 93 163 200

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Next 5 years Sales

12000 10000

S ales in B illions

8000 6000 4000 2000 0 2012-13 2013-14 2014-15 2015-16 2016-17

150gm 3315 4310 5387 7003 8754

250ml 3835 4986 6232 8101 10127

300gm 520 676 845 1099 1373

500ml 1170 1521 1901 2472 3090

01 L tr 520 676 845 1099 1373

2 L tr 520 676 845 1099 1373

5 L tr 260 338 423 549 687

Survey questions
1. Do you carry Lucy Olive oil at your store? 2. Which type of oil sells more? Cosmetic Food 3. Which other brand is most favored by the customers 2nd 3rd 4. Do customers prefer other brands due to price? 5. What is the most preferred packaging Tin Glass Plastic

6. What is the most preferred size? 250ml 500ml 1 Liter 1.5 Liter 2 liter 5 Liter 7. When do you see most volume of sale? 8. Is the product delivery of time? Is it available as per need? 9. Are there any promotional activities?