1

PROJECT NAME

IMPLEMENTATION OF STRATEGIES ON
TWO BRANDS
 NAME OF A
SUPERVISOR

SIR TAHIR MUMTAZ

GROUP MEMBERS
• Saad Shamim
• Naqeeb Ullah
• M.Tatheer
• M.Waqas
• Umair Ahmad
• Hamid Raza
• Yasir Ghafoor
 SYNOPSIS
 Product selected
 Introduction of Unilever
 Product information of Cornatto
 Product information of Magnum
 SWOT
 Financial Analysis
 Strategies of Marketing
 Suggestions
PRODUCT SELECTED FOR THE
PROJECT

• CORNATTO
• MAGNUM
 PRODUCT & COMPANY

• CORNATTO
BRAND OF UNILEVER

• MAGNUM
BRAND OF UNILEVER
 Mission of Unilever

To add vitality to life – shows how

clearly the business understands 21st
century-consumers and their lives.
 Introduction of Unilever
 Formed in 1930
 Unilever is a multi-national corporation, formed
of British and Dutch parentage
• That owns many of the world's consumer
product brands
foods
beverages
cleaning agents
personal care products
• Paul Polman is Group Chief Executive.
Unilever's main competitors
• Procter & Gamble
• Nestlé
• Kraft Foods
• Mars
• Reckitt Benckiser
• Henkel
 OPRATIONS
• Unilever owns more than 400 brands
• The company focuses is on "billion-dollar brands“

13 brands which each achieve annual sales

in excess of €1 billion

Unilever's top 25 brands account for more

than 70% of sales.

• The brands fall almost entirely into two categories

Food and Beverages
Home and Personal Care.
 Global employment at Unilever
2000-2008
• Black represents
employment numbers
in Europe

• Light grey represents

the Americas

• Dark grey represents

Asia, Africa, and
Middle East.
 Introducing Unilever Pakistan Ltd
• Debut in 1948 In Pakistan,
• Two affiliated companies viz
Unilever Pakistan
Unilever Pakistan Foods.
• Employees around 1,500 people on their
payroll and many thousands indirectly.
• Fulfilling the daily needs of 164 million people
• The company had a turnover of Rs. 23.3 bn 
(Euro 309 mn) 
 Cornatto’s Products
• Cornetto Love Chocolate
• Cornetto Strawberry
• Cornetto Classico
• Cornetto Mint
• Cornetto Love Chocolate Multipack
• Cornetto Strawberry Multipack
• Cornetto Classico Multipack
• Cornetto Mini
 Cornatto’s History

Cornetto cones were first produced in

1976
By an Italian ice-cream manufacturer,
Spica
First started to began to in the market of
Europe.
 Magnum
• Celebrate your pleasure with the
tempting Magnum range – combining
thick, cracking chocolate and smooth
delicious ice cream
 Magnum products
• Magnum
• Magnum Classic
• Magnum White
• Magnum Ecuador
• Magnum Temptation Caramel & Almond
• Magnum Temptation Chocolate
• Magnum Impulse
• Magnum Mini pack
 Magnum History
• Magnum was first launched in the UK in 1987
and in Ireland in 1990
• Since then, delicious flavours such as Double
Chocolate (1996), Double Caramel (2000),
Yoghurt Fresh and Magnum Intense (2002).
Magnum Temptation (2009)
• Last year over 31 million Magnum Mini's
were devoured across the UK
• 'Win a Luxury Break Every Day’ promotion used
enough competition sticks to stretch from
London to Paris and back 10 times
 S.W.O.T. Analysis
Strength
• Recognized as a global company
• Strong brand portfolio
• Strong relationship with retailers
• Economies of scale
Opportunities
• Changing consumer preferences
• Increasing need for healthy
products
Weaknesses
• Not connecting with customers
• Inefficient management of brands
• Reduced spending for R & D
• Inability to maximize acquisition
Threats
• Decrease in revenues
• Strong competition
• Increasing store brands
• Tougher business climate
• Exchange rates
 2008 REPORT
 Unilever employed 174,000 people

 worldwide revenue of €40.5 billion

 Operating income €7.16 billion

 Net income €5.28 billion.

 Financial Analysis
€ million € million
2008 2007
• Turnover 14 471 13 418
• Operating profit 1 701 1 711
• Net profit margin 12.4% 9.7%
• Operating margin 17.7% 13.1%
• Net increase in cash &
cash equivalents 2 156 244
• EPS – total 1.79 1.35
• Return On Investment Capital 15.7% 12.7%
 Market Strategies

• Market Scope Strategy

• Deals with coverage of market

• Single entry strategy

• Multi market strategy
• Total market strategy
 Total Market Strategy

• Serves entire market by selling

different products
• Total market strategy is risky, and
highly rewarding as well
• Strong financial position
 PRODUCT STRATEGIES
• The two brands are implementing
standardized product strategy.
• Extending their product lines by adding
different new flavored variants.
• Both brands are focusing on quality
strategy because both brands are striving
for excellence.
 Pricing Factors
Factors of pricing
• Selecting the price objectives
• Determined the demand
• Estimate cost
• Analyze competitors costs
 Pricing objectives
• Profit oriented goals
• Sales oriented goals
 Pricing Strategies
• Uniform delivered pricing strategy
• Freight absorption strategy
• Cash price strategy
• Value pricing strategy
 DISTRIBUTION STRATEGIES
• Cornetto and Magnum have competitive
advantage through extensive distribution.
• Both brands are implementing pull strategy.
• Pakistan is divided into 3 major sections
• North (Islamabad, Peshawar & Northern areas)
• Central ( Lahore & central Punjab )
• South (Sindh & Baluchistan )
 DISTRIBUTION CHANNEL
• Uses indirect distribution channel
PRODUCER
DISTRIBUTOR
RETAILER
CUSTOMER
 CHANNEL SUPPORT
• Both brands give incentives and discounts to the
local distributors and retailers like deep freezer ,
discounts on bulk purchase.
• Giving compensation to retailers for stocking .
• Postponing bills or extending credit (dating)
• Payment for retailer advertising or promotion.
 Promotional Strategies

Promotional strategies of both the brands are

consistent. both spent a lot on advertising and
consumer promotion to build up consumer
demand.
 Promotional Objectives
• Promotional objectives of both brands are as
follows:

• Inform

• Persuade

• Remind
 Promotional Tools
Advertisement
Both uses print and electronic media for advertisement and for that purpose it follows
AIDA model.
Awareness
Interest
Desire
Action
The mediums used by both for advertisement are:
– TV
– Billboards
– Newspapers
– Magazines
– Banners
– Pamphlets
– Stands in shop
Sponsorships of pop stars, actors, models
– Event arrangements
– Bus stop board ads
– Fun carnival carried out in different parks such as Racecourse Parks
– Shop boards
 Sales promotion

Both have going a number of sales promotion activities like the:

Cycling system
Its purpose is for awareness

Discount coupons
Both launches very low price product for the purpose of both market expansion
and sales promotion.

Discount and offering

Both offer 5% discount in off-season.

It provides Retailers

Free freezers to retailers

Investment on each retailer: Rs 22000
Free freezers maintenance
 Public relations
For strengthen itself in relationship market both is not only going for
customer satisfaction but also stressing upon building strong public
relations
It provides Customers to:

Price discounts
Quantity discounts

It provides Street vendors to:

Free Trikes
To strength its relationship with the various public and customers both
sponsors an Art exhibition.
 Suggestions
In my opinion there are some flaws in their implemented strategies

Actual Position Suggestions

• Charging High prices-----
unaffordable for Children & low
Class.
• Extensive demand of two brands
in Market.
• advertising strategy which costs will be
Both brands have dominance in
the market
• Do mass production & cuts the
advertising cost as they have already
high brand equity.
• An opportunity of launch diet ice cream
for the patient of diabetes which will be
a profitable segment in the coming
future.
• They Should implement Cooperative
splitted b/w the retailer and
manufacturer which will be beneficial
for the customers.

• They should charge less than the

competitors (OMORE S& YUMMY ice
cream)
relief to the customers especially
children.