This field-based case works as a solid introduction to new product positioning in a nascent market with an opportunity to define the product category. At the start, the brand creates a new category product line with an entry-level cheaper product with plans to later move up the value chain. The position the firm takes in the beginning sets out to change consumer's perceptions of the product's use and convince consumers that the value of olive oil is in cooking. While the market for healthy cooking oils is large, the brand should overcome entrenched consumer beliefs about the best oil to use for cooking, and develop strategies for repeat purchase beyond just trial.
From the humble beginning of his first taste of olive oil in Australia, VN Dalmia, chairman of Dalmia Continental Pvt. Ltd. (DCPL), in New Delhi, India, had created an INR40 crore brand by the end of 2012. As he worked on future directions, Dalmia thought about where the company had been and where he believed it should go. The major issues before the company were how to generate volume by converting the mid-segment consumer, attaining exponential growth, and setting strategy for future distribution to feed this exponential growth. Was the company doing all it could to inform the masses about the benefits of cooking with olive oil? And between its two channels?traditional, unorganized retailers and modern, organized retailers?was it getting its brand message through? Would future direction include adding more olive-based products beyond oil? Or would selling the brand to a more entrenched consumer-products company that could take Leonardo to the next level make sense?