Identifying The Marketing Challenges Faced by Unilever Pak in Wall's Ice Cream

INSTITUTE OF BUSINESS AND TECHNOLOGY Identifying the marketing challenges faced by Unilever Pak in Walls ice cream Prepared
By Gulzaib Ali Khan (BM / 25082) Taha Yaseen (BM / 25093) Course Code : MKT-606
A project in partial fulfillment of the award of
MBA (Marketing) FACULTY OF MANAGEMENT AND SOCIAL SCIENCES SPRING - 2011
Identifying the marketing challenges faced by Unilever in Walls ice cream
CONTENTS
Page No ACKNOWLEDGEMENT............................................................
01
ABSTRACT.. 03 CHAPTER NO. 1 INTRODUCTION

1.1 Introduction. 04 1.2 Purpose of Study 08 1.3 Research objectives.. 08 1.4 Research Methodology. 08
CHAPTER NO.2 LITERATURE REVIEW

2.1 Literature Review 11
CHAPTER NO.3 UNILEVER IN PAKISTAN

3.1 Walls Ice Cream in Pakistan. 15 3.2 Mission. 17 3.3 Vision .. 18 3.4 Objective and Goals.. 18
CHAPTER NO.4 MARKET SEGMENTATION

4.1 Introduction 21 4.2 Target Market 25
Institute of Business and Technology
4.3 Value proposition. 4.4 Positioning 4.5 Slogans. 4.6 Unique Selling Proposition. 4.7 Buying Behavior of Customers.
28 29 31 32 36
CHAPTER NO. 5 COMPETITORS

5.1 Omore 5.2 Hico 37 44
CHAPTER NO. 6 RESEARCH FINDINGS

6.1 Questionnaires & Analysis. 50
CHAPTER NO. 7 CONCLUSION AND RECOMMENDATIONS

7.1 Conclusion 66
7.2 Recommendations 68
REFERENCES
69
ACKNOWLEDGEMENT First of all we would thank Almighty ALLAH who has guided us the way for a bright future. We would like to acknowledgement the help provided by our teacher to make this project a success. Our teacher Dr. Noor Ahmed Memon provided guidance and learning at every step of the project which helped us, a lot in the questioning, data collection and preparation of this report. He always gave full energy and showed willingness in our project. We are also thankful to our parents who accommodated us during those long hours of work in writing Synopsis for Dissertation and all the friends and colleagues who equally encouraged us. We would also like to appreciate the co-operation we got from our classmates at the institute, which boosted our morale and encouraged us to strive for better results.
Mohammad Gulzaib Ali Khan (BM- 25082)
Taha Yaseen (BM-25093)
INSTITUTE OF BUSINESS AND TECHNOLOGY

ABSTRACT SUBMITTED BY: Muhammad Gulzaib Ali Khan Taha Yaseen DISCIPLINE: MBA (Marketing)
TITLE OF PROJECT REPORT:
Identifying the marketing challenges faced by Unilever Pak in Walls Ice Cream
MONTH OF SUBMISSION:
April, 2011
NAME OF PROJECT SUPERVISOR: Dr. Noor Ahmed Memon
Abstract:
The Study is about Identifying the marketing challenges faced by Unilever Pakistan in Walls Ice-Cream. There has been a lot of changes in the minds and eyes of the consumer about Walls Ice-cream that it is not an ice-cream rather a dessert, on the mere fact that it is not made up of dairy milk. The local players in the market are taking out the best out of this negative perception of the consumer. Another underlying fact is that the prices charged by Walls have gone up in the previous year and some new local players have entered due to which Walls is facing fierce market challenges. The main focus of this study will be the in-home category since this category not only competes with other ice-cream brands but also local players and other confectioneries that are most common on occasions. Walls in-home category is positioned as the family tradition of Pakistan.
1. INTRODUCTION
1.1 Introduction Walls is the United Kingdom (UK) oriented food brand, covering the both meat products and ice cream products, owned by Unilever. Founded in London in 1786 by Butcher Richard Wall, it was obtained by Unilever in year 1922. To avoid the summer lay offs due to the down turn in its core meat product market. In 1920 the walls launched the range of ice creams. Unilever sold the meat products business and license to use walls brand on such with in the United Kingdom in 1996 to Kerry group. Walls it self now core to Unilevers heart brand global ice cream business, used currently in the China, Hong Kong, India, Indonesia, Jordan, Lebanon, Malaysia, Maldives, Mauritius and Pakistan, Qatar, Saudi Arabia, Singapore, Thailand, United Arab Emirates and Vietnam. History: In 1786, Richard wall opened a butchers stall at St Jamess market London. Selling the meat and other meat products, he soon gained a well reputation for being fine pork butcher in the market. In 1892, Richard received his first royal appointment to George, Prince of Wales as the purveyor of pork continuing to serve him through his later reign as King George III. In the year 1817, Thomas had born followed by daughter Eleanor. In 1824 Richards business has boomed and in 1834 he moved to the new premises as at 113 Jermyn Street, however shortly afterwards Richard wall has died and leaving his widow Ann and 19 years old son Thomas wall to run the business, trading as Ann wall and son. Ann also died shortly after the death of her husband. At the age of 19, the Thomas wall took sole charge of the business, plus the care of his 14 years old sister. After the birth of Thomass son Thomas wall II in 1846, the Thomas wall incorporated the business as Thomas wall and son Ltd. Thomas wall II served his apprenticeship and the joined the company in 1870, and after second son Fredrick had followed the same path, the company name was changed in the year of 1878 to Thomas wall and sons Ltd. Throughout in
this period the business maintained its high level standard and resultant
recognition, obtaining a series of royal appointments from Queen Victoria, King Edward VII, King George IV and King George V. The business had always faced a problem in summer when sales of meat and meat pies and the sausages fell and the company was forced to lay-off its staff. Now led by Thomas wall II he wished-for developing a line of ice cream in 1913 to void the lay offs but the on set of World War I put the plan on hold due to shortages. Thomas wall II has decided to retire and so sold the business in 1920 to Mac Fisheries which itself was acquired 1922 jointly by lever brothers and Margarine Unie the creator company of Unilever. At present beneath the direction of Maxwell Holt ice cream production initiated in 1922 at a industrial unit in Aton London. As ice cream grew in worth. Unilever split the company into 2 T wall and son ice cream Ltd and the T wall and son meat Ltd. In 1959 walls doubled the capacity by opening a reason built ice cream factory in Gloucester England. In 1981 Unilever and T wall merged and son ice cream Ltd with Birds eye foods Ltd to convert in Birds eye walls Ltd. Subsequent a review of production services, the Gloucester factory was exhausted and update and the Acton factory was closed Project Phoenix 1983.
Ice cream History: The commencement of ice cream can be traced back to at least 4th century B.C; early references incorporated the roman emperor Nero A.D 37-67, who ordered ice to be brought from the mountains nd joint with fruit toppings, and King Tang A.D 618-97 of Shang china, who had a technique of creating ice and milk mixtures. Ice cream was likely bought from China back to Europe over time recipes for ices, sherbets and milk ices changed and served in the fashionable Italians and French royal courts. After the dessert was bringing in to the United States, It was served by numerous famous Americans. George Washington and Thomas Jefferson served it to their guests, in 1774, a London
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http://en.wikipedia.org/wiki/Wall's_(company) http://wn.com/Wall's_sausages http://home.planet.nl/~artrako/Historie/Emigranten-EN.html
caterer whos name was Philip Lenzi announce in a new York newspaper that he would offering for sale various confections including ice cream and dolly Madison served it in the 1812.
Unilever pak intro: Unilever Pakistan limited, a subsidiary of the Lever brothers group is operating in Pakistan since 1948, the companys main business lines are soaps, detergents, personal proucts, cooking oils and fats, tea product and ice cream. Unilever has a long list of world fame brands like surf, vim, rin, life boy soap and shampoo, sunlight, lux soap, rexona soap, sun silk shampoo, close-up tooth paste, blue band, dalda, planta, taaza and richbru, Liptons yellow label, brook bonds supreme and Kenya mixture etc. while continuously exploring expansions opportunities in various fields, focus remains on the companys core business of detergents and food & beverages. Alongside these are the results of the companys dynamic approach to meet the needs of the continuously changing market environment. The Unilevers factory at Rahim yar khan was one of the first industrial units to be constructed after the creation of Pakistan. As the customer base expanded over the years and the company entered into new manufactured goods lines like as personal products and margarine. It invested supplementary in the installation of modern manufacturing facilities including a factory at Karachi. Today the company is using latest state-of-the-art technology for the producing high quality products. In 1989, Lipton Pakistan Ltd was the formally merged with lever brothers, which took under its fold Liptons tea business. In 1997, brook bond Pakistan Ltd was also merged with the company. A major importer of tea in Pakistan unilever is actively looking into possibility of growing tea within the country. An experimental tea cultivation station has been set up in Mansehra where clonal was not only grown successfully but is no being planted by farmers in the area with extension services from Levers. It is expected that 600 hectares of farmland will be under tea cultivation in the next 5 years. However, it is worth nothing that the large smuggling of tea poses a threat to such initiatives.
In 1995, the company established a new factory near Lahore to manufacture the walls range of ice cream which has become popular within a short time of period. In 1996, the present group Unilever UK acquired the polka group that produced ice cream, in 1999, Pakistan industrial promoters (Private) Ltd owners of Polka brand of ice cream were merged with Unilever. Unilever name in Pakistan identical with excellence. To remain this position, company remains vigorously involved in enlargement aimed at fulfilling consumer needs with an optimal blend of quality and value, never forgetting the most important elements of business (The customer is king). In line with worldwide placement approach and in order to influence the synergies of Unilevers international brand power, marketplace edge and corporate image. Lever brothers Pakistan Ltd altered its name headed for Unilever Pakistan Ltd in August 2k2. Therefore the present company has come about through the original lever brothers merging with Lipton 1988, brook bond 1997, polka ice cream 1998 and presently they are operationally merged with the best foods since 2k1. 1982 saw the inro of personal products and 1994 setting up of the walls ice cream business which was a green field exercise. About topic: The topic of our project is Identifying the marketing challenges faced by Unilever in walls ice cream. There has been a lot of changes in minds and eyes of the consumer about walls ice cream that it is not an ice cream rather a dessert, on the mere fact that it is not made up of dairy milk. The local players in the market are talking out the best of this negative perception of the consumer. Another underlying fact is that the price charged by walls have gone up in the previous year and some new local players have entered due to which walls is facing fierce market challenges. The main focus of this study will be the in-home category since this category not only competes with other ice cream brands but also Kulfi, Gola ganda and other confectioneries that are most
common on occasions. Walls in-home category is positioned as the family tradition of Pakistan and walls has recently launched the pure punjabi traditional ice cream flavor which is Badami. Its a good sign that walls is changing the perception of consumers by advertise this flavor vastly to acquire the local villagers and as well as literate citizens of Pakistan. 1.2 Purpose of study The purpose of this study is to identifying the marketing challenges which Unilever is facing now a day in walls ice cream and how was it handled gently to make the walls a successful and favorite ice cream brand for the consumers. 1.3 Research objectives Identification and pointing out those challenges which Unilever is facing and after a careful analysis making recommendations and suggesting the ways to tackle the situation with improvement and sustainable growth for the organization. 1.4 Research methodology This research thesis will be a combination of descriptive & exploratory study. The reason behind this is different variables will be identified that are affecting the walls in-home range. This research will also be given a better understanding of the market for ice cream. Variable will not be controlled nor manipulated; no artificial environment will be created for this study.
Key Findings
Research Design Branded Ice Cream
Background & Objectives
Following are the respondents of the research: Consumers of in-home ice-cream (in the three months) o Sample of 100 respondents from Karachi o Sample 40 respondents from Lahore Both Quantitative & Qualitative data will be gathered using different instruments. The data for this investigates is collected through the following instruments: Questionnaires for the consumer. Quantitative but semi-structured open-ended interviews.
Unstructured interviews from organization to understand the market & current scenario.
These are the sources of data collection for our study: Primary Sources Questionnaires for consumers and Interviews from Organization Secondary Sources - Internet, Magazines & Articles.
Data that will be gathered throughout the primary data collection is analyzed in qualitative methods. Simple calculations will be carried out to put the facts & figures into logical sense and then representing it into graphs or charts according to the type of data extracted.
2. LITERATURE REVIEW
2.1 Literature review Wall's is the ice cream auxiliary of Unilever, the consumer products giant whose brands includes Persil detergent and Dove soap. The organizations UK market share in ice cream is so much larger than the anyone else's that all its rivals are struggling. Data gathered for the last Competition Commission investigation into the ice cream sector previous year showed that as of May 1999 Walls held a 71% share of the so called impulse marketplace for an ice cream that is product bought on impulse in news agents and expediency stores rather than tubs and multi-packs in supermarkets. Unilever is the marketplace leader in ice cream in the most of the major European markets such as France, Germany and Italy. The finances of the ice cream industry are such that delivery costs are a primary part of the overheads. These permanent costs denote a company with only small sales will struggle. In the UK, merely Unilever has managed to attain those economies of level. This is not to say that the new competitors cannot make a mark. Birds Eye Wall's has since launched its own "whippy" style ice cream from machines in newsagents and corner shops. Unilever provides this opportunity to ice cream consumers in Britain, but not indefinitely. They have released the limited edition ice cream collection Magnum Seven Deadly Sins, comprising - you guessed it - seven variations of their classic Magnum ice cream: greed, gluttony, lust, vanity, jealousy, revenge, and sloth. Currently the two available flavors are Greed and Gluttony. The Magnum, launched in 1988 (1989 in the UK), is today the best-selling ice cream in Europe, selling in excess of one billion pieces annually. Therefore it is
hardly surprising that Unilever should attempt to expand on its success.
Commercially they have achieved their goals, but in terms of gastronomic experience the design of these novelties is disappointing. The latest marketing campaign by walls features some of the top acts in the Pakistani pop music scene, including, Noori, Junoon, Jal the band and Strings. Moreover, the walls logo can be seen featured in a number of programs on Indus music. With this latest campaign, Walls has gone where none of its competitors have ever gone-associating ice cream with Pakistani pop music. Overall, the campaign gives a fresh new face to Walls and gets in with their existing philosophy to be an essential ingredient in the enjoyment of everyday life for everyone. This philosophy or vision has been the primary driver of its earlier marketing campaigns and applies just as much to the current one. It was an instant success due to their exceptional marketing communications and the products hygienic, high quality ad innovative nature. Feeding on the initial success, five new flavors were launched in the start of 1997, the same year in which Walls merged with Polka. This tradition of product innovation has continued throughout the years with Walls consolidating its market position with new additions and variants in its addition of new concessionaires and satellite towns. Traditionally, the target market of Walls has been, more or less, similar to the target market of Pepsi. Walls target market can be defined as the middle upper middle and upper class; fun loving energetic and vibrant with ages six and above; and single married and married with children. All the previous marketing activities of Walls have distinctly displayed an orientation towards this target market.
http://www.independent.co.uk/news/business/analysis-and-features/walls-ice-cream-monopoly-proves-hard-to-meltaway-666507.htm http://www.marketingmaniacs.net/2011_02_01_archive.htm http://www.marketingmaniacs.net/2011/02/hilarious-competitive-advertising-by.html Via: Express Tribune http://officialpakinfo.wordpress.com/2010/07/07/competition-in-ice-cream-world-of-pakistan-walls-igloo-or-omore/ Institute of Business and Technology
The previous campaigns of Walls have displayed a focus on children, teenagers, young, adults and adults-all with their trademark fun loving and vibrant twist. This current campaign appears to be mainly geared towards teenagers and young adults, with secondary focus on children.
There has been a positive reception towards the campaign; it is well liked by the public. The hoardings displayed at key points throughout the city, are very well executed and eyes catching, with a vibrant feel to it. Perhaps the strongest aspect of this campaign is that it fits with the overall brand essence of the product. Though there is a slight shift in their market focus, Walls core values of being energetic, being fun loving and happy, being vibrant, and having a good time are strongly reflected and reinforced in this latest campaign. This latest campaign by Walls was much needed to refresh and energize the brand which faces increasing competition from Igloo, Yummy and Hico. These days public gives the impression to be in an Omore selling bender, after the permanent advertising of Omore at last in Karachi gets to eyewitness the coming of this ice-cream. Despite the fact that the complete product depth isnt accessible, some alternatives do taste good than the rivals. Now that a new rival has inwards in Karachi subsequent to much of a delayed situation and advertisements which did not make logic in the city that did not have this product yet, it now seems to be becoming a warfare situation, something we experiential between Sun silk and Pantene. Who started it? We all know Was nearby a need of it? We all are familiar with about that too Omore is far and wide with its magnificent billboards and the Sea View occasion being on the way, the much anticipated brand seems to be doing a marvelously great deal in terms of customary advertising to recapture the trust of those clients who by no means got to taste their ice cream after being bombarded with TVCs.
connection building, The brand got to be tainted a bit as a result of the issues with its allocation channel but its fairly a good product, a must have. Beneath is an image of their luminous copyrighting and it actually does catch the mostly potential customers sight and attention. Its extraordinary why Walls has launched and is promotion its Mango ice Cream in this season but it appears to be a rival strategy to remind the consumers that Hey look! Your old friends are still here!
3 UNILEVER IN PAKISTAN
3.1 Walls ice cream in Pakistan Unilever is the worlds largest and biggest ice cream business and the home of one of the best known symbols in ice cream The Heart. The heart was launched in 1997 to unite Unilevers ice cream businesses and brands and has grown to become the most recognized logo in the world of ice cream. Their global ice cream business is having worth of 5 billion with a 17% market share. Unilever is selling ice cream in over 40 countries worldwide. The heart represents 3.5 billion of Unilevers sales, Unillever is taking the next step in building the worlds most powerful ice cream brand by putting 20% more investment in the next three years behind marketing and development activities to make the heart a true power brand. The heart is a famous symbol in over the 40 worldwide countries. The ice cream companies united by the heat logo are known by different names in different countries, for example walls in the UK and south East Asia, streets in Australia, kibon in Brazil, algida in Italy, langnese n Germany and ola in the nether land, together they produce brands including Magnum, cornetto, solero and carte dOr. The business mission of walls is two simple words Market Leadership. Walls is the no.1 brand in ice cream market of Pakistan. Polka was once the market leader on the mere basis of its nationally available products and 25 years of experience. But now, after the Walls and Polka merger they together constitute market leadership. The organizations objectives are cleared and well defined. The organization wants walls to be uniquely positioned as a top quality ice cream that comes to the customers doorstep. Initially, it was only the Gola ganda and the kulfi stall
that came to the doorstep and made their presence known with familiar bell
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sounds of jingles. But a top quality hygienically prepared imported ice cream
was a completely new idea that delighted the consumers and made walls a household item. The mobile vendor (600 in Pakistan and nearly 200 in Karachi) with the paddle pop music was an effective marketing strategy that was new to the ice cream market of Pakistan. After the walls and polka merger, the marketing for polka is being done along the same lines as walls Billboards, post signs, signs outside retailers. However, the pricing strategy implemented is economic pricing strategy. The strategic objective behind this is to be broadening the entire price range covered by Unilevers ice cream products with a combination of economy and premium pricing. The range of walls ice cream are distributed in three categories; impulse, inhome and out home. Impulse range constitutes of choc-bars, cornetto, magnum, sundaes, cup ice cream i.e. those for individuals and dont require any planning to get these. In-home category is family oriented ice cream packs and is targeted towards special occasions or those which have been positioned as a substitute to cultural confections, walls selection, tub ice cream and walls dessert. The outhome range are walls kiosks placed at different localities in the city or walls ice cream parlors which are in direct completion with other foreign ice cream brand parlors such as gellato affairs, movempick, mini-melts etc. The technical element reflects the current state of knowledge regarding the production of product services. To overcome this element walls use modern technology for the production of ice cream. They always keep on introducing new technology in ice cream making so that the reason is why their quality of ice cream always exceeds from the quality of their competitors.
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http://unilever.com/innovation/innovationinunilever/Overviewofresearchanddevelopmentinunilever/ http://www.unilever.com.my/brands/foodbrands/walls.aspx
Socio-cultural elements are very important in a companys strategies. As we know that the climate of Pakistan is very hot almost half of the year so people love to eat ice cream especially the teenage. Walls has introduced ice cream ranging from the Rs. 10 to Rs. 20, so that even lower class people can also afford to buy good quality ice cream and enjoy it. Therefore it is very evident that this has become an emerging market with intense competition. In which he cultural confectionaries are threats as well as other ice cream companies. 3.2 Mission Lever brothers will be the leading consumer product company in Pakistan with skin care, ice cream and spread. Already positioned in tea, hair, dental and household care, significantly profitable position in cooking oils and fats our strengths come from Unilever people and from combining the best of its international as well as Pakistan origin. Unilever commitment is to continuously care for the need of its customers, consumers, employees, suppliers, share holders, stake holders and the community in which we live. Unilever is committed to provide its customers the quality products and company has never compromised on quality no matter what is the cost. This maintenance of consistent quality has given lever brothers a competitive edge. As one of the Unilevers leading brands, it has always been walls mission to add vitality to customers/peoples life while being responsible about good nutrition. The very prominent slogan of Unilever is Adding vitality to your life That is why Unilever is constantly adjusting its range to keep up with shifting needs. Calcium augmented products are available to add nutrition and health benefits for the kids and adults, smaller sizes for the smaller appetites and old
favorites for those nostalgia lovers there is something for everyone. Walls
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guaranteed Halal statement we are committed to adding vitality to consumer
and the community in a responsible and locally appropriate manner. 3.3 Vision Unilevers mission is to add vitality to life, we meets everyday needs for the nutrition, hygiene and personal care with brands that helps people good, look good and get more out of life. Art portrays values on a canvas, piecing together elements to from a complete picture. Unilevers mission statement to add vitality to life lends itself to an artists vision of making a better worlds and scalping today for a sustainable tomorrow. Art and vitality are the key elements that represent the coming together of skill, talent and values to produce great ideas.
3.4 Objective and goals Winning with the brand and innovations: brands and innovations are the heart of everything Unilever do. Success means mounting products that keep pace with changes in consumer lifestyle and that appeal to people at all income levels. Unilever is using breakthrough technology as being a multinational company to get bigger and better innovations into the market faster, supported by the best marketing. Superior products: Unilevers aim is to give consumers and unbeatable products experience. They are investing in formulation and constantly evaluating product performance in order to drive consumers preference in branded and unbranded product tests, they are doing this both for our innovation and for existing mixes.
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http://wiki.answers.com/Q/The_vision_and_mission_statement_of_unilever_pakistan http://www.unilever.pk/Images/Unilever%20Pakistan%20Foods%20Limited%20annual%20report-2010_tcm96-260895.pdf
Bigger, better and faster innovation: useful and successful innovation is the life blood of any FMCG company. For a business like as Unilever, success means innovation that work globally rather than just one or two countries. This kind of achievement states with what Unilever call disruptive technology, namely technology that makes a big crash on the market by meeting the consumer needs better than all available alternatives. Sharp consumer insight and R&D is core to delivering on that aim, for example Solid gold from Magnum It is on everyones lips! Magnum gold?!, the first ever golden ice cream on a stick launched in 29 countries all over the world in 2010 with a Hollywood blockbuster of a campaign featuring Academy award winner Ben del Toro. Winning through the continuous improvement: continuous enhancement means doing everything a little better every day. That is a key to sustainable growth. In 2010, Unilever concentrated on improving speed and dexterity in the supply chain, while keeping cost competitive. Providing superior service: on-shelf availability OSA measures Unilevers ability to put right product on the correct shelf at the right time, in order to enhance on time product availability and giving superior services as take on other words, they ensuring shoppers can always find their products in a store. However efficient their supply chain, Unilever products can not sell if they are not on the shelfs properly. So Unilever work with retailers to ensure that their products are readily available when customers come to shopping. Unilever has developed a unique capability for this collaboration with retailers. The top five approaches, which helps to identify inefficiencies with and designs specific solutions. Unilever work alongside customer to improve its system and their system. Quality: Unilever determined that the consumer perceived quality is at the core of all that they do. Unilever intensifying their focus on the quality at every level of
the organization and at every step in the processes from the raw material to presentation on shelfs of retailers. Winning with the peoples: Double the size of the organization presents major HR challenges. Unilever need to have in placed the people and structures necessary to thrive on double the scale. Present year Unilever made a great progress in developing a team capable of delivering growth and in offering the career development possibilities and an environment that makes Unilever an attractive place to work. Closer to the consumer and closer to the customer: performance culture demands excellence from team as well as from individuals. In august, 400 Unilever Germanys employees worked together in outlets of the REWE supermarket network, getting closer to key customer, selling margarines to consumers and raising 100,000 for the world food programmes school meals project in Kenya.
4 MARKET SEGMENTATION
4.1 Introduction Market segmentation is a subgroup of people or organizations sharing one or more characteristics that causing them to have similar product and service needs. During the market research that we have conducted, we learned that their target market is basically all the people who go to shops for purchasing of any age all the kids all the young youth and household as well majorly targeted as portrayed their commercials. In order to formulate an effective marketing and promotional strategy, the target market for the walls ice cream has divided into 4 different segments based on Geographic variables, Demographic variables, Psychographic variables and Behavioral variables.
GEOGRAPHIC Segmentation is done in 4 segments of walls ice cream in Pakistan south, central and north, Karachi to Sadiqabad, Sadiqabad to Gujranwala and from Gujranwala to upside country respectively . Geographic segmentation
World region Country region City Density Climate Asia Pakistan Karachi, Hyderabad, Gujarat. Urban areas All but less in winter.
Multan,
Lahore,
DEMOGRAPHIC Walls caters male and females of all income levels that is Upper, Middle and Lower Middle in come levels their target market mostly age and income based and they have different age group like as Paddle Pop is mostly famous in kids, Cornetto Feast is famous in teenagers and up to the age of 28 years and the commercial packs are popular/famous in families as a whole.
Demographic segmentation
Age Gender Family size Occupation Income Education Religion Nationality Above 5 and below 65 Focus on both Not specific Not specific Rs. 5000 and above Not specific Not specific Not specific
PSYCHOGRAPHIC
Psychographic segmentation is done on basis of taste and health conscious consumers. Walls targeted its market by developing an image of the high quality and hygienic ice cream product. Walls was for anyone, anywhere and at anytime, so this is very explains psychographic characteristics of walls consumers, also relating fun with the ice cream helps depicting the life style of its potential customers.5 Psychographic segmentation
Social class Life style Personality
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Available for upper (elite) class, lower uppers and upper middles. Not specific Not specific
http://www.icmrindia.org/courseware/International Business & International Marketing/Segment-Target-Position.htm http://www.unilever.com.my/brands/foodbrands/walls.asp Institute of Business and Technology
BEHAVIORAL
The behavioral segmentation is done on the 3 different variables that tend to define particular behavior or attitude of a consumer, which are as under
Occasions regular occasions, special occasions
Usage rate thand hai to kya hua!!
Benefits quality, presentation, taste
Behavioral segmentation
Occasion Benefits User status Loyalty status Readiness status Attitude towards product Regular as well as special Quality Potential users, ex-users, and non user Medium aware, informed, occasions first time user
interested,
desirous,
intending to buy Positive and enthusiastic
Walls has embarked on the several engagements to spread the message of fun, excitement and love and friendship. Who can forget the love sparked from the popular reality show cornetto, love perhaps? Segmentation based on the lower sugar content and the extra nutrition: Ice cream can be a part of a healthy balance diet. Heart brand is developing products that are low fat; sugar free, lactose free, and as well as low carbohydrate options and those with more nutritional goodies like as calcium and fruit. Diabetics can be consumed TD without worrying about their sugar level. Based on this choice of consumers, the consumer market firstly was divided into 2 sections Diabetics and non-Diabetics.
4.2 Target market Targeting is how the marketer is capturing the different segments of market. And walls is targeting the 2 kinds of market. o Consumer market o Business market How walls is targeting different segments of consumers market Walls has targeted a wide range of consumers with its wide collection of ice cream products. Target children: walls Paddle pop series of target the children. This product targets children by usage of cartoons and such animated cartoons ads used for its promotion. The packing is in rich and bright colors to attract the children. Walls introduced its Paddle pop Galactica campaign, wherein consumers buy ice cream and collect and redeem the stick would get free toys for the kids. Target teenagers: walls ice creams one of the most popular products is cornetto cones series. Cornetto cones targets teenagers and university students. Advertisement and the promotion material for this particular product capture
young people and show cornettos link with enjoyment. Walls has used famous personalities for their endorsement among the youth to promote the brand. Target adults: Walls Magnum ice cream is an expensive product. This may be not appeal to all age of groups people and consumers, Magnum targets adult and the people who have a taste for strong chocolate and rich ice cream. The advertisement of this product portrays luxury and class people, therefore the high price thus targeting adults. Target families: Walls has offered liter ice cream packs and tubs for the families and for the different in-door occasions. The advertising materials for this particular product shows family and highlights the importance of families and quality time with love ones.
Target market for the walls is not very limited. Its consumer belongs to every age group and any class.
Target business market: except for the targeting different types of consumer walls also targeting the business market, which includes different general stores, shopping malls, tuck shops, petrol pumps, super marts and similarly from food and restaurants to five star hotels. It is placing walls freezers at every above described place to make walls ice cream available where ever the customers require it. Walls has introduces new ultra freezer cabinet for the retail shops to ensure that the walls products are stay in perfect condition right up to the time of buying in spite of power break downs. One of walls ice cream channels i.e. out of home made a contract with PSL. Similarly it has made contracts with food chains likes as Pizza Hut, McDonalds and KFC, these food places are using walls ice cream in all kind of walls ice cream desserts.
Targeted products: For kids
For youngsters or Teenagers
For Adults
4.3 Value proposition Walls ice cream decides that how they will serve to their customers, how they will differentiate and position themselves in the marketplace? Thus, walls promise to deliver the different set of benefits and value to the customers to satisfy their needs. Walls serve customers by delivering its products at doorstep of the consumers and customers. Walls ice cream also has to meet up the inspirational value proposition for its ice cream in smaller towns, which is again very tricky. Walls has also brought the attracting slogan for its ice cream
Ice cream makes you happy This is famous slogan also gives the healthy sign to its consumers.
4.4 Positioning In marketing positioning has come to mean the process by which marketers try to create an image or an identity in the mind of their target market for its product brand or organization. It is the relative competitive comparison of their product occupies in a given market as perceive by the target market. Positioning strategies: walls is positioning its products as an international brand which has very best quality. It has maintained the taste worldwide; it has the same formula of its products worldwide. Walls has successfully positioned its
products at the top of their customers mind due to which loyalty status of their customers is very high and they never wants to switch to any other brand. Below are the strategies adopted by walls ice cream to position its product to the best, It is totally germ proof. It has less air ratio contents that is why it takes more time to melt. It is positioning in relation to a product or class attribute. It is positioning by price and quality It is positioning in relation to target market
How walls is positioning itself in the mind of customers? Walls has come up with few features which is providing to its customers thus positioning its brand at the top level of brain. The features which walls are providing to the customers: Quality: The Heart-brand logo is common worldwide and has come to be identical with quality treats. Walls is providing its customer the best quality product and it is maintaining its quality since 1965. Loyalty: This Heart Brand shows its urge of making its customers loyal by providing them high quality product in order to meet their quality demands etc. Walls has never cheated its customer by providing them the product which is low in quality, poor n taste and which its customer deny to taste or buy thus maintaining high level of loyalty.
Taste: This brand has promised its customers to provide them a wide range of flavors in order to boost their taste and favorites.
Fun & Pleasure: The big red heart logo puts a smile on your face by providing healthier products with a growing range of innovative tastes.
Where walls position itself in the world and in the Pakistan? Worldwide ranking of walls: Walls products are sold in the more than 40 countries all around the world. Walls is ranked as on the number of 24 in Newsweeks list of Asias top brand. Walls ranking in the Pakistan: As walls one of those ice cream companies which is the best capturing and targeting the market as well as the consumers. It has segmented the market in the most appropriate approach. It has the highest spending and highest earnings in Pakistan. Where does the brand lie? In order to see in which stage walls lying, so please have a look at the product life cycle diagram.
Walls product life cycle diagram
Brand ambassadors: The brand ambassadors are those personalities who work in the ads of specific brands. There are lots of brand ambassadors of walls. walls spends a lot on their brand ambassadors for capturing them in the advertisements. Famous brand ambassadors of walls ice cream Ali Azmat Amrita rao Jal band Dafi ( Malaysian singer ) Gita Gutawa.
4.5 Slogans Walls ice cream makes their slogans by findings the unique features of its products to position themselves. Slogan creates positive image in the customers mind and awareness of product. Walls slogans are matched with their product quality & services. Some walls ice cream slogans are as under.
Just one Cornetto, give it to me, delicious ice-cream, of Italy, vanilla and choco dream, Give me a Cornetto, from Wall's ice cream
Stop me and buy one All Hearts All Walls. All Family All Walls
4.6 Unique selling proposition Competitive advantage of walls is brand name of walls ice cream. Walls has built a brand name that means quality products, happiness and services. They make and sell their product according to the place, regional values and norms. They always follow the customers need, want and demand, to make their product more effective and reliable in the customers mind. Walls ice cream through quality and their doorstep services always maximize its market share that is why walls product is unique in all around the world in ice cream area. Walls has succeeded in projecting a quality image and with hand held ice cream that do not melts and drip soon as you tear off the cup rapper. Walls ice cream claims that they are also providing convenience to the consumers. This eating convenience is what ice cream manufacturers are so keen to providing. Walls commonly held view point is that their ice cream should be accessible to consumers everywhere, so to ensure this walls is using 3 channels.
Push carts
Deep freezers Ice cream parlors
Walls has psychological advantage on its competitors of innovating new products which are not only very carefully through out but also very effectively developed. All the other competitors explicitly accept that edge of walls and have no hesitation to confess that their most of products are based on me too approach, instead of venturing the new prospect they like to follow walls innovations. This makes walls an unchallenged market leadership whose products are of the international quality and are backed by walls experience in ice cream marketing which needs no intro.
Wall's branded ice cream freezer - Maxi vision III LED. Sell ice cream on impulse with an eye catching freezer.
4.7 Buying behavior of customers There are certain buying habits of customers, so according to the buying behavior of customers, there are 4 types of buying decision behavior are as under. Complex buying behavior Dissonance reducing buying behavior Habitual buying behavior Variety seeking buying behavior Consumers of walls are different in buying the ice cream. Customers follow the variety seeking buying behavior in buying the ice creams, when buying ice creams they may hold some beliefs, choose a brand without much evaluation then evaluate type of ice cream during consumption but next time she/he may pick another type of ice cream of boredom or simply try something different. Ice cream switching occurs for the sake of taste rather than cause of dissatisfaction. This is the situation characterized by low involvement but perceived ice cream differences. Walls has made a good reputation of its products and services towards their customers. However, as customers attitude of buying is variety seeking behavior. There are many competitors who are also differentiating their ice creams and services to attract customers. Therefore, by this, customers need some changes according to their tastes and those brands, which are giving more offers with ice creams. Those customers who have beliefs on the walls are loyal with them. They are not switching their brand and only trying different ice creams some time. However, who are not loyal with the walls, they will change according to their tastes.
5 COMPETITORS
5.1 Omore ice cream Omore ice cream has recently launched in Karachi and it is a famous ice cream brand of Pakistan, hometown from Lahore by Engro foods Ltd. Engro food is manufacturing this ice cream brand in the Lahore and as well as in Karachi. Engro food is multipurpose national manufacturing company. It was established in 2004 and is mainly involved in the FMCGs manufacturing and marketing of various industrial products and consumer products such as dairy products, fruit juices, rice/agriculture and ice cream produce. Omore is a brand of Engro foods which is the subsidiary of Engro Corporation limited. Engro Corporations portfolio consists of 7 businesses, which includes chemical fertilizers and PVC resin a bulk liquid chemical terminal industrial automation, Foods, power generations and commodity trades. Omore has been very well established since 2009. Omore has fully automatic ice cream manufacturing plant and has a production capacity of producing more than 4.5 million liters of ice cream per year. Omore is marketed in the major cities of province Punjab. Omore ice cream has initially launched to limited cities across the pakistan like Islamabad, Multan, Lahore, Sahiwal and now in Karachi. Now a days Omore ice cream is considered to be the favorite in hometown Lahore. Omore produces a variety of flavors including Chocolate, vanilla, mango, strawberry, orange, kulfi, caramel and many more. Omore is one of the brand in Pakistan that is manufacturing in pure dairy ice cream. After approx 2 years of its launch, Karachi has finally tasted Omore. Engro corp history: Engro Corporation is the leading Pakistani business corporation with stakes in the fertilizers, food, power generation, petrochemicals,
and automation and terminal storage industries. Containing had undergone an

6
employee led buy out in 1992 it has expended phenomenal in past 2 decades. Engro fertilizers Ltd Engro foods Ltd Avanceon Ltd Engro power generation Ltd Engro polymers & chemicals Ltd Engro vopak Ltd
As a holding company its subsidiaries include as under.
That was 1957 when in the search for Oil by pak Stanvac, an Esso/Mobil joint venture guide to discovery of the Mari Gas field near the place Daharki Pakistan. Esso proposed the establishment of urea plant in such area which led to fertilizer plant agreementigned in 1964. In subsequent year, Esso Pakistan Fertilizer Company Ltd was incorporated with the 75% of shares owned by Esso and 25% shares by general public. The construction of a urea plant initiated at Daharki place in 1966 and production began in 1968. At us $43 million with an annual production capacity of 17, 3,000 tones, it was the single largest foreign investment by a multinational corporation in Pakistan at the time of Esso to Exxon Ltd. In 1978, it was decided that to change the name of organization from Esso Pakistan Fertilizer company Ltd to Exxon Chemical Pakistan Ltd. In 1991, Exxon decided that to divest its fertilizer business on the global basis. The employees of Exxon chemical Pakistan Ltd, in partnership with leading international and local financial institutions brought out the Exxons 75% equity. That was the time and perhaps still is the most thriving employee buy out in the corporate history of Pakistan. Renamed as Engro chemical Pakistan Ltd, the
6
http://en.wikipedia.org/wiki/Engro_Corporation http://www.engro.com/our-company/our-history/from-esso-to-engro/
company has gone from might to might, reflected in its consistent financial performance, growth of the core fertilizers business and diversification into other businesses. 21st century for engro corporation has thus far proved that to be the most thriving era in the total life of engro, from then onwards engro has only faced accomplishment and never looked back , year 2003 was the year of the establishment of engro EXIMP, after in 2005 engro has decided to diversify their business more by venturing in to the food business by establishing Engro Foods Ltd, which is now experiencing a great success and competing now with the international brands such as Nestle and walls. In the year 2007 engro Asahi polymer divested its share in joint venture with the Mitsubishi and the company renamed as engro polymer and chemicals Ltd. In the year of 2010, keeping in view the immense diversification of engro chemical Pakistan Ltd, it was decided to change the name of company as engro corporation as the holding company. Omore ice cream introduces 2 new flavors iin 1.5 liter family pack. These are strawberry and mango flavors, but these are typical ice cream flavors which we always use to have, so what is the new in such flavors? Well Omore ice cream has put some fruit chunks in it to give a better taste and fruit experience to its consumer in ice cream. So this try seems to be a nice and innovative step in the field of sweet stuff. Flavors of Omore ice cream Chocolate Chocolate Chip Coffee Cookies and Cream
Mango Strawberry
Tutti Fruiti
Vanilla Banana
Ice Lollies
Orange
4Ps of Omore ice cream Product: Product variety a wide range of dairy ice cream and frozen desserts. Quality premium ice cream rich in the calcium which is fresh every time Design includes ice pop, choc bars, dairy ice cream and pop sickle. Features made from fresh milk and cream and high in the nutrations. Product name froze ice pops, nutty/caramel cones, strawberry/mango/vanilla affair, kulfi, lick a flavor, froze cups. Packaging high quality and eye catching packaging. Packaging color ranges from Red, blue, yellow, orange and green. Packaging is colorful in order to attract kids and adults. Sizes sizes include 1liter, 2liter and half liter for the diary ice cream. Chock bars and soft serve ice creams are of different sizes. Service satisfying the dessert needs of population in best possible approach and delivering quality every time to the consumer. Returns only in condition when ice cream is expired and melted.
Price: list of prices varies from the different ice creams. Depending upon Cups = 20 Rs Cones = 30 Rs Ice pop = 10 Rs Soft serve = 10 50 Rs 1 Liter tub = 150 Rs 2 liter tub = 275 Rs Price of its competitor Walls is more or less same and price of liter pack is less than the Walls which is the advantage of Omore. Omore offers a 16% margin to retailers and shop keepers which is slightly below than the Walls, who offers a margin of 20% to its retailers and shop keepers. Omore is new in the market and doesnt have the same relationship with the retailers as walls has. Place: Channels - sells directly to the end users through rretailers and shop keepers. That is the trend in Pakistan followed by most FMCGs firms. Coverage - Omore for the time being is only available in limited areas in Punjab and not available throughout the Pakistan. Company started off its operation in Punjab because it has the largest population in province. Transport ice cream are transported to retailers and shop keepers through private logistic firms e.g. Abu dawood logistics and also through a few trucks owned by the company. This is done because to remove the transportation and vehicle costs. Locations available at large/medium sized and small bakers, grocery stores and pharmacies in Punjab. Sell Omore products directly to doorstep of consumers using pushing cart/cycles. This strategy has been in practiced for many years and is being used by walls and Hico ice cream.
Promotion: Advertising vehicle advertising, outdoor billboards, point of sale display and television ads. Advertisements are usually colorful evocative to their ice cream packaging. When Omore ice cream was initially launched they adopted a rather unique way of advertising. Flyers were thrown in different housing communities using airplanes. Message linked ice cream with joy and happiness so their tagline is Art of happiness. Linked with the consumers and got review of different ice creams using various medium social communities e.g., face book and twitter. Linked their ice cream with other engro food brands like Olpers and Olwell. That strategy promoted their other brands as well, which are also relatively new in the market.
SWOT Analysis Engro Foods (Omore Ice cream) Strengths: Omore is a brand of engro foods which is a well renowned FMCG organization in Pakistan. Engro is also a world renowned organization working iin the fertilizers, It and chemical business. Omore is made froom fresh milk and cream as compared to walls which contained fat. Total sales of 14,9,00 million Rs, which shows positive response and customer satisfaction. Engro food does a lot of research before and after launching their products in the market and they did so with Omore ice cream as well. This resulted in their ice cream being a huge success. Omore has the only plant in Pakistan that is using bactofuge technology to eliminate bacterias and make sure proper hygiene. Providing better ice cream and that too at a lower price than their competitors.
Weaknesses: Omore is a new brand in ice cream market and people in rural
areas and other ad joint areas of Pakistan does not have much idea that this brand is exists. Mostly Omore advertisements have stirred controversy e.g. omore recent advertisement of nutty choc bar does not go along with our cultural and religious values. Engro foods only have few products in their range as we compared to Nestle and Unilever. Although Omore have a good range of ice cream flavors, they are no match for walls who have a huge range of falvors. No rigorous publicity of their products as compared to walls e.g. walls has a huge campaigns when they launched new products.
Opportunities: there are so many opportunities in the ice cream market as there are only a few major players like walls and Igloo. Omore ice cream can always come with the new flavors and new packaging and attract new consumers. Omore ice cream should not limited themselves to departmental stores and groceries. They can open specific Omore ice cream parlors where people could enjoy only brand. Omore introduce diet ice cream in Pakistan for the people who are diabetes patients especially above 50 of age.
Threats: Walls, Igloo and hico have been in the ice cream market for a long time. It may take some time before get to know the brand.
http://en.wikipedia.org/wiki/Hico_Ice_Cream http://wn.com/Hico_Ice_Cream
New brands have been entered in the ice cream market such as gourmet plus private ice cream parlors, melees, hot spot, gelato affairs and yummy ice cream as well. Ice cream is perishable item plus the load shedding and electricity problems now a days cause problems and damage the products. Milk price has increased drastically in the country now a day so it can affects on their products prices. Marketing research: Omore ice cream received an over whelming response when they have introduced their ice cream in Pakistans market. In a few years omore cemented themselves as one of the leaders in the ice cream industry in Pakistan, thus making Omore a household name. omore ice cream are intending to launch diet ice cream first time in Pakistan history but before they go further they wanted to know a market research of whether peoples are willing to accept diet ice cream or not, how successful will it be in the market and who peoples will it consumed i.e. patients, peoples on diet etc.
5.2 Hico ice cream Pakistan
Hico was the first ice cream company in Pakistan which was established in early 50s. It is contrived by Pakistan Fruit Juice Co. (Pvt.) Ltd. As a brief introduction, Pakistan Fruit Juice Co. (Pvt.) Ltd. is family-owned concern. It was documented in 1952 and is mainly involved in the manufacturing and marketing of various business and consumer products including beverages, fruit juices, ice cream, industrial gases and Rice/agriculture produce.
The brand Hico has been well established since 1958. Hico has a fully automatic ice cream manufacturing facility, and has a production capacity capable of producing more than 4.5 million liters of dairy ice cream a year. It is marketed in
major cities of Punjab. Hico Ice Cream has expanded to several cities across Pakistan such as Karachi, Rawalpindi, Islamabad, Multan, Faisalabad, as well as many more. Today, the Hico brand is considered to be the most favorite in its hometown Lahore as well as in Capital Islamabad and Rawalpindi. Hico Ice Cream is one of the few brands in Pakistan which manufacture 100% pure dairy ice cream. This makes for a healthier alternative. Hico Ice Cream produces a variety of flavors including chocolate, vanilla, mango, strawberry, pineapple, apple, and orange. It is also responsible for the production of several other more premium flavors, such as tutti fruity. Perhaps its most respected flavors is praline, a flavor the company is known throughout its hometown Lahore for. The company's strong but small distribution and marketing network guarantees consumer satisfaction and brand loyalty. Though Hico Ice Cream has a small sales network, Hico's ice cream flawless quality challenges big names like Walls or Omore which have a stronger sales network and more publicity. Once someone tastes the quality of Hico ice cream, he/she becomes a loyal fan.
Hico Ice Cream Profile: Hico which stands for Happy Ice-cream Company has its base of operations in Lahore. Hico was established in 1965. It is a division of Pakistan fruit juice Company private limited. RC and Flora juice are other divisions of the same company. Hico has its only ice-cream plant in Lahore and from here they distribute ice-cream to others cites of Pakistan. Initially Hico did not make sales through retail stores and bakeries. People use to come at factory and buy ice-cream. In 1990 Hico introduced the push cart system to target the different areas of Lahore including school, colleges and colonies to increase its reach. In 1995 Hico started home delivery on orders but did not continue it for long as it was not a feasible option if they wanted to target the mass market. They subsequently changed there distribution channel and started to sell icecream through retail stores and bakeries. In 1997 they established proper marketing and sales department to improve its business. They also expanded there business with the entry in to markets of Karachi, Peshawar and Rawalpindi.
Hico is a medium sized business, with limited resources as compared to its major competitor Walls. Hico did not expand its business as large as its competitor because they have a philosophy of internal growth with there own profits. Consumer Positioning Hico Ice Cream: Hico ice-cream is an established brand but its positioning in the minds of consumers is very weak. According to the survey results consumers take Hico ice-creams as a second choice and, in many cases, will not like to make repeat purchase. Moreover, Hico is not readily available in all major retail stores. Hence Hico also has distribution problems. Other than the consumer sector Hico has a strong institutional buyer base. They include; Avari Hotels, Gym Khana and Heera 36. Marketing is critical to its success in consumer sector and future profitability. Hico is also strong in family take away packs. Hico buckets and other family packs are a prime choice among families. The basic market needs are high quality, innovative tastes and easy availability. Hico will only meet these demands with an appropriate marketing plan, execution and control. Target Market: The question of target market is pivotal for any organizations success. Organizations take special care while identifying and defining their target markets. On one end the target markets can provide new horizons and on the other hand a wrong selection can play havoc with companys resources and image. Earlier the management of Hico Company did not define their target market properly and there was no segmentation of customers. Customers use to come to factory and buy the ice-cream. Hico has some what established its marketing department now and they segment there target market.
GEOGRAPHIC At the start the only market Hico served was Lahore. After the year 1997 they expanded there business and entered in other cities as well including Karachi, Rawalpindi, Faisalabad and Peshawar. Hico covers Punjab Cities more strongly because they are closer to its Lahore factory. Hico has near 20% share of Lahore ice-cream market.
DEMOGRAPHIC Hico has ice-cream for nearly all demographic segments. They have Ice Lollies and Creamy Pops for kids. For teenagers they are offering Mega New Bar, Mega Cone and Cups. For the families they have all there flavors in family take away packs. Behavioral segment: Hico is the only company which is offering the Diet icecream for those people who have diabetes problem or are diet conscious. It is a large untapped market segment which Hico is serving.
Swot Analysis Strengths: The key strength of Hico ice-creams is its heritage. According to companies management institutional buyers and general consumers use to queue outside the factory and get there ice-cream. Even today Hico has very good reputation among the bulk quantity buyers and supplier to the business buyers like Gym khana, Avari Hotel, Heera 36, Freddies caf and Pearl Continental. Hico enjoys high customer loyalty among these buyers. Just like Hico has a strong presence at business buyers sector, it is also strong in family take away pack segment. 2, 5 and 10 litter packs are a first choice when ever families want to buy ice-cream for parties or other occasions.
There are people who suffer from obesity, have diabetic problem or are health conscious. Hico offers there diet line for these people. It is strength of Hico icecream that it serves a market segment which is not yet served by its competitors. Another of key strengths is Hicos product with unique flavors like paraline and Oreo cookies. Not only that they are unique flavors, Hico also takes advantage of using co-branding strategy with a very well know brand Oreo. Last but not least, unlike its major competitor Walls, it has dairy ice-creams. All Hico Ice-creams are made of milk and butter. Weaknesses: The primary weakness of Hico ice-creams is its not so strong marketing. This in turn leads to no proper positioning in the minds of consumers. Because of no proper positioning brand equity of Hico is very low. Hico has another disadvantage that its major rival, Walls ice-cream, is a multinational company and uses its international experience and R&D to come with very high quality products and popular tastes. Using there resources they can conduct all the techniques necessary for conducting proper marketing. Techniques like Market research and test marketing requires large resources. As Hico do not match Walls resources, it can not conduct R&D up to the extent of walls icecream and has not yet used the techniques of market research and test marketing. Hico has a very week distribution network. Our consumer survey suggests that Hico ice-creams are at times out of stock even at major retail stores. There trolleys are also not as much present as walls trolleys are. Hico does not raise finances throw public offering of stock hence have to rely on growth internally through there own profits. This is a weakness as its competitor, Walls, have a large availability of finances through public offering of its stock. Hico products are slightly expensive then the competition and our informal consumer interview revealed that Hico has unattractive packaging as well. Furthermore, Hico is primarily serving Lahore market and has very limited availability in Karachi, Islamabad and other major cities of Pakistan.
Opportunities: There are opportunities in the market which can work in Hico icecreams favor. Ice-cream eating culture has already been developed. It has become a favorite dessert for many people. For Hico ice-creams there is large untapped market to grow its business There is a reputation about ice-cream in the minds of consumers that it can cause severe throat aches if taken in winter. A recent campaign from Walls icecream has addressed this concern. Now ice-cream is taken regardless of season. This campaign from walls has presented opportunity to the ice-cream industry. It can now achieve high sales figures even in the winter.
Threats: The major threats that Hico is facing is the introduction of new products and flavors from Walls. Walls have introduced the new Cornetto with sauces and new limited edition Magnum bar. These new flavors have received wide appreciation and Hico is not yet offering these flavors. There is also a threat of new entrant in the market, Nestle Moven pick. Like Walls, Nestle is also a multinational company and its resources easily match or beat Walls. If Nestle enters in Pakistani market, it will further side line Hico ice-creams.
6 RESEARCH FINDINGS
6.1 Questionnaires & Analysis
The samples of the answerers have chosen for the study consisted of those customers who had eaten ice cream in the past 3 months. The respondents were mainly of the age of 18 and above residing in the city areas of Karachi and Lahore belong to sec A E.
Consumers
Karachi 100
1. Do you eat ice-cream? This test question for the sample of the study. Since this survey pertains to the ice-cream customers only, hence those who do not consume ice-cream will be inappropriate to the research.
Consumers
Yes 75
No 25
2. Do you buy ice-cream in bulk packs?
The subsequent question was to drill downward additional to the core answerers i.e. customer of in-home packs.
Yes 68 No 32
Consumers
Consumers
32%
Yes No
68%
The graphical image on top of shows that two third of the sample bought icecream in bulk packs. This proves that the sample chosen for the investigate study was right and which then leads to the rest of the opinion poll. 3. How frequently do you consume ice-cream? This thought at the back ask this problem is to conclude the use pattern of icecream by sample irrespective of the brand.
Weekly Consumers 50 Monthly 34 Quarterly 12 Others 4
Consumers
12%
4%
Weekly
Monthly
50% 34%
Quarterly
Others
The diagram on top of display show that main portion of our sample eat icecream weekly and monthly. Some even eat at a usual basis. This shows that there is a high liking towards ice-cream than it is towards local confections. The next three questions were to recognize the flavor preferences amongst customers. Obtainable to the purpose of the study, it is significant to understand not just the brand first choice, but also the taste for the reason that there is also a huge chunk of unbranded ice-cream customers.
4. Name your 3 much loved ice-cream flavors?
Mango, Vanilla and Pista are the usual flavors; though occurrence for a broad variety of flavors exists. Kulfi is a habitual format that still holds significant value.
5. What other brands can you believe of that make happy your need for an ice-cream?
While Walls and Cornetto are most important but there is gap in usage and responsiveness. 6. Who decides what flavor to obtain?
Yourself Consumers 74 Siblings 10 Spouse 14 Children 8
Consumers
8% 13%
Yourself
Siblings
9%
Spouse
70%
Children
The diagram shows that the majority of the answerers in our sample are the sole choice makers in buying ice-cream flavors. They create purchases according to their likings. 70% answerers create purchase decision themselves and they are the major customers. Kids are the powerful force for elders in purchasing icecream where in addition kids themselves are very loving of buying ice-cream for their siblings.
7. In what pack-size do you generally buy ice-cream? Answerers answer will decide the size of the packs they generally buy when consuming ice-cream. This may be different in those seasons when there is high demand for ice-cream.
1/2 Liter Consumers 14 1 Liter 60 1 1/2 Liter 28 2 Liter 4
Consumers
4% 26%
13%
1/2 Liter
1 Liter 1 1/2 Liter
2 Liter
57%
More than half of our answerers typically purchase 1 Liter packs or 1 Liter packs. This shows that they acquisition ice-cream regularly, also satisfying the result obtained in preceding consumptions related to their purchase pattern. Only a couple of answerers buy 2 Liter packs of ice-cream and that too for the whole month with their journal grocery.
8. If youre looking for a 1 liter pack, what price range do you believe? The thought at the back of this question is to conclude what price range the customer is looking for when deciding to buy 1 Liter pack because Walls focuses more on the liter packs and accumulates the most sales for them. This will find out if the price set by Walls satisfies the customer or not.
Rs. 100 Consumers 150 36 Rs. 150 200 50 Rs. 200 250 8 Rs. 250 Above 6
Consumers
8%
6%
Rs. 100 - 150
36%
Rs. 150 - 200
Rs. 200 - 250
Rs. 250 - Above
50%
The answerers shows that half of the customers are pleased with the price range set by Walls but the further half is still demanding quality ice-cream at lesser price. 9. Do you have a preference choosing your ice cream from a:
Point Display Consumers 57 of Sale Make up your mind from before 43
Consumers
43% 57%
Point of Sale Display
Make up your mind from before
This shows that a lesser percentage of answerers knew what they want from before and are brand loyal. The impact of Point of sale promotions attracts more customers so its not just about the brand and the offering but also appropriate marketing & visibility.
10. What factors do you take into thought when purchasing ice-cream? (Please rank accordingly as 1 being last preferred, 4 being neutral and 7 being most preferred.)
Least ------------------Preference----------------- Most 1 2 3 4 5 6 7 8 6 8 32 18 12 16 Ice0 12 10 2 2 4 4 6 0 14 12 8 0 40 34 24 8 10 14 18 10 14 18 18 80 6 8 24
Price Quality of cream Offering Packaging Brand Name
90 80 70 60 50 40 30 20 10 0 Price Quality of Icecream 1 2 Offering 3 4 5 6 7 Packaging Brand Name
This shows that the ice-cream excellence is the most significant factor that the customers consider before purchasing ice-cream. You can also see that brand name is relative important followed by pricing, offering and packaging at the same reflection set.
On the other hand it is imperative to realize that quality is irrespective to the rest of the factors i.e. an inferior priced brand with a comparatively poor quality may be apparent as a good quality. So Walls have to describe its price according to the excellence they are offering.
11. What do you look for in an ice-cream?

Soft Hard Consumers scooping 10 42
21%
Milk-based Consumers 21
Intrusions
Milk-based
Multi-flavors 15
12
15%
Hard
12% 10%
Soft scooping
Intrusions
42%
Multi-flavours
In terms of what qualities are mainly important in an ice cream, the two key characters are that it supposed to be milk based, and customers usually prefer soft ice cream. Looking at the Walls current in-home range, Walls medley lacks both these qualities i.e. most of their brands are not milk based, or for soft scooping.
12. What kind of promotions appeal to you as a consumer?
Buy 1 get 1 free Consumers 42
Discount offers 26
Extra Offerings 44
Tie- in promotions with other products 6
Consumers
5%
36% 37%
22% Buy 1 get 1 free Discount offers Extra Offerings Tie- in promotions w ith other products
The above chart obviously shows that customers have a preference more amount for what theyre paying. They are requiring more value for money.
13. Which type of promotional advertisements catch your eye?
Billboards Consumers 35
TVC 55
Posters in outlet stores 15
Radio 2
Newspaper/Magazine 8
Consumers
7% 2% 13% 30%
48%
Billboards
TVC
Posters in outlet stores
Radio
New spaper/Magazine
A well shaped message aired on TV would be a right choice. To cool down the consumers recall start of summer is the right time to go on air. Customers are paying attention towards TV commercials and Walls is all ears more towards it and rightly in line with its products.
14. Please rank the characteristics of Walls ice-cream according to your preference:(1 being least preferred and 5 being most preferred)
Least --------------------Preference-----------------Most 1 2 3 4 5
Taste Flavors Product Range Packaging Price Purchasing Convenience
2 0 6 10 6 6
8 2 16 26 12 10
4 26 26 24 26 14
26 30 30 24 38 20
60 42 22 16 18 50
Characteristics of Walls
70 60 50 40 30 20 10 0 Taste Flavours Product Range 1 2 3 Packaging 4 5 Price Purchasing Convenience
As we know that ice-cream excellence is very significant to customers, Walls is addressing well to this which is obvious in the chart above as the scores show. More than half of the IC customers regard taste as the prime feature for its purchase.
15. Are you fond of trying new varieties in Walls product range?
Consumers
Yes 78
No 22
Consumers
22%
Yes No
78%
16.
How happy are you with the product range of Walls?
Consumers
High-----------------------------Extent---------------------Low 1 2 3 4 5 16 54 20 10 0
Consumers
0%
10%
16%
20%
54%
1 2 3 4 5
Customers are not pleased with the current Walls offerings and hope to see more innovation. though Walls is constantly imminent up with innovations, but what we they need to look into is that are they addressing to the consumers needs or is there an issue with their promotion.
17. What improvements would you like to formulate in Walls ice-cream?

Improvements in the quality of ice cream 18 10 Others
More new flavours Consumers 35
Healthier Ice-cream 30
Lower pricing 40
Consumers
More new flavours Healthier Icecream Low er pricing
8% 14% 26%
29%
23%
Improvements in the quality of ice -cream Others
Wall's has maintained their manufactured goods quality over the years, as a greater part of the answerers claimed that they had no issue by means of Wall's quality. though, from the subsequent questions, what Wall's lacks is coming up with innovations in line with consumers' preferences and needs, and a cheaper variety to fight against the many comparatively smaller players that are mostly only popular for the reason that of their pricing which is reasonably priced to the masses.
7. CONCLUSION AND RECOMMEDATIONS

7.1 Conclusion Ice cream brings enjoyment and delight to millions of people all around the world. However, consumers are many and varied and some demand low priced products while others are ready to pay a premium for quality and innovation which has lead to sporadic growth of ice cream manufacturers. The industry is extensive, though highly fragmented, as large number of players in this industry are small sized companies or individuals and are largely concentrated in the unorganized segment. Over and above Ice Cream is functionally defined as A product that has a very good combination of all its ingredients (mainly milk, sugar, cream). The key attribute is that it is cold hence refreshes a lot. A product that will definitely uplift ones image since the product is unique and special. The housewives however are more keen in describing its nutritional value coming from the main ingredient Milk The emotional definition of ice- cream is A product that highly responds on the values of excitement, engagement, entertainment, happiness and pleasure Ice cream is treated very differently from other conventional desserts mainly because of the product nature (light, good taste, convenient, cold) and certain image values (uplifted social image/profile, excitement) Walls has been the market leader in Pakistan ever since it was launched, with acquiring Polka which was, then, the market leader. Throughout the years, no major players have entered the market, until last year when a bakery in Lahore, by the name Gourmet, launched their own ice cream range focusing mainly on the in-home market. Coming in with very low priced offerings, and cashing in on
the nutritional aspect since its dairy based, Gourmet grew drastically and took a lot of share from Walls in Lahore. Since Lahore is the major contributor in Ice Cream consumption (being almost twice of Karachi) Walls started losing share on a National level. With Engro in the pipeline, and expected to launch this year, Walls faces a lot of challenges for even maintaining their market share. This study helps us understand the consumption habits of Ice Cream consumers, aligned with consumer expectations and preferences with respect to ice cream, in order to identify the issues and opportunities that Walls should consider. From this study, along with an understanding from my initial interview with the Consumer & Market insights manager at Unilever, it is quite evident that the major share loss for Walls is coming from the in-home range. Walls is not growing at par with market, hence lost 6% points market share from 80% to 74% (in 2008). Tubs and Carton contributed 3% points each to its loss, mainly in Lahore. Igloo and Hico were able to grow almost at par with market, hence maintained their market shares.
7.2 Recommendations From the above data it has been analyzed that sales are not a concern for Walls rather its market share which is being eroded due to local competitors. This is because consumers are requiring more value for money & innovations in the icecream products. Following are a number of recommendations that may help Walls to keep hold of their market share. They should launch a special low priced range, just for Lahore, to compete against gourmet. They should come up with special promotions like offering more quantity for the same prices e.g. buy 2 get 1 free offer. Better innovations, more aligned with the consumer's expectations. They should re-look at their innovation pipeline, and carry out extensive consumer understanding studies to first understand their consumer better. Once they know what their consumers want, then plan out innovations to meet their consumer's requirements.
REFERENCES
1 Product Information Sources: Mr. Imran-Ur-Rehman (Assistant Manager) Walls ice cream Mr. Kamran (Territory Manager) Walls ice cream Mr. Mujtaba (Territory Manager) Walls ice cream Mr. Syed Hasan Maqsood (Assistant Manager) Supply chain management Unilever Pakistan
2 Internet Sources: Hilarious Competitive Advertising by Omore and how Walls can react By; Hiba Moeen - February 24, 2011
http://officialpakinfo.wordpress.com/2010/07/07/competition-in-ice-creamworld-of-pakistan-walls-igloo-or-omore/
Omore & walls and the start of the ice cream wars by Umair Kazi February 28,011 http://officialpakinfo.wordpress.com/2010/07/07/competition-in-ice-creamworld-of-pakistan-walls-igloo-or-omore/ Wall's ice cream monopoly proves hard to melt away By Nigel Cope, City Editor - 22 August 2001 http://www.independent.co.uk/news/business/analysis-and-features/wallsice-cream-monopoly-proves-hard-to-melt-away-666507.html
http://www.corgi.co.uk/shop/135/morris-ld-van--walls-sausagesdg201013/?from_categories=sale
http://www.cgvhs.org/history/archive/14-optimists-in-a-desertparadise.html http://en.wikipedia.org/wiki/Wall's_(company) http://en.wikipedia.org/wiki/Engro_Corporation http://en.wikipedia.org/wiki/Hico_Ice_Cream http://www.independent.co.uk/news/business/analysis-and-features/wallsice-cream-monopoly-proves-hard-to-melt-away-666507.htm http://www.icmrindia.org/courseware/International Business & International Marketing/Segment-Target-Position.htm http://www.marketingmaniacs.net/2011/02/hilarious-competitiveadvertising-by.html http://www.unilever.com.my/brands/foodbrands/walls.aspx http://unilever.com/innovation/innovationinunilever/Overviewofresearchand developmentinunilever/ http://www.unilever.com.my/brands/foodbrands/walls.asp http://wn.com/Wall's_sausages http://wiki.answers.com/Q/The_vision_and_mission_statement_of_unileve r_pakistan http://wn.com/Hico_Ice_Cream

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INSTITUTE OF BUSINESS AND TECHNOLOGY Identifying the marketing challenges faced by Unilever Pak in Walls ice cream Prepared

A project in partial fulfillment of the award of

MBA (Marketing) FACULTY OF MANAGEMENT AND SOCIAL SCIENCES SPRING - 2011

Identifying the marketing challenges faced by Unilever in Walls ice cream

ABSTRACT.. 03 CHAPTER NO. 1 INTRODUCTION

CHAPTER NO.2 LITERATURE REVIEW

CHAPTER NO.3 UNILEVER IN PAKISTAN

CHAPTER NO.4 MARKET SEGMENTATION

Institute of Business and Technology

Identifying the marketing challenges faced by Unilever in Walls ice cream

CHAPTER NO. 5 COMPETITORS

CHAPTER NO. 6 RESEARCH FINDINGS

CHAPTER NO. 7 CONCLUSION AND RECOMMENDATIONS

Institute of Business and Technology

Identifying the marketing challenges faced by Unilever in Walls ice cream

Mohammad Gulzaib Ali Khan (BM- 25082)

Taha Yaseen (BM-25093)

Institute of Business and Technology

Identifying the marketing challenges faced by Unilever in Walls ice cream

INSTITUTE OF BUSINESS AND TECHNOLOGY

TITLE OF PROJECT REPORT:

NAME OF PROJECT SUPERVISOR: Dr. Noor Ahmed Memon

Institute of Business and Technology

Identifying the marketing challenges faced by Unilever in Walls ice cream

Institute of Business and Technology

Identifying the marketing challenges faced by Unilever in Walls ice cream

http://en.wikipedia.org/wiki/Wall's_(company) http://wn.com/Wall's_sausages http://home.planet.nl/~artrako/Historie/Emigranten-EN.html

Institute of Business and Technology

Identifying the marketing challenges faced by Unilever in Walls ice cream

Identifying the marketing challenges faced by Unilever in Walls ice cream

Identifying the marketing challenges faced by Unilever in Walls ice cream

Institute of Business and Technology

Identifying the marketing challenges faced by Unilever in Walls ice cream

Research Design Branded Ice Cream

Background & Objectives

Identifying the marketing challenges faced by Unilever in Walls ice cream

Institute of Business and Technology

Identifying the marketing challenges faced by Unilever in Walls ice cream

Institute of Business and Technology

Identifying the marketing challenges faced by Unilever in Walls ice cream

hardly surprising that Unilever should attempt to expand on its success.

Identifying the marketing challenges faced by Unilever in Walls ice cream

Institute of Business and Technology

Identifying the marketing challenges faced by Unilever in Walls ice cream

Institute of Business and Technology

Identifying the marketing challenges faced by Unilever in Walls ice cream

Institute of Business and Technology

Identifying the marketing challenges faced by Unilever in Walls ice cream

Institute of Business and Technology

Identifying the marketing challenges faced by Unilever in Walls ice cream

Identifying the marketing challenges faced by Unilever in Walls ice cream

guaranteed Halal statement we are committed to adding vitality to consumer

Institute of Business and Technology

Identifying the marketing challenges faced by Unilever in Walls ice cream

Identifying the marketing challenges faced by Unilever in Walls ice cream

Institute of Business and Technology

Identifying the marketing challenges faced by Unilever in Walls ice cream

Institute of Business and Technology

Identifying the marketing challenges faced by Unilever in Walls ice cream

Institute of Business and Technology

Identifying the marketing challenges faced by Unilever in Walls ice cream

Identifying the marketing challenges faced by Unilever in Walls ice cream