Marketing Plan for CORNETTO Walls

Presented by: Group C.

Presented to: Sir. Yawar Abbas.

Introduction of Walls
Brought by Macfishries in 1920. International brand of ice cream and most profitable unit of Unilever. Started in Pakistan in 1995 from Lahore. Started operation in Karachi in August 1995.

Customer Moment of value is defined as providing services in the following aspects:

When the customer wants it (Time). Where the customer wants it (Location). How the customer wants it (Form). How the customer access it (Perfect Delivery).

Situation Analysis:
Walls is going to enter in its 13th year of operation. The Walls tricycle with its melodious music and distinctive umbrella has given a new dimension to the ice cream consumption and distribution in Pakistan. Simultaneously, evoking nostalgia for the days of the conventional ice cream

Market Summary Target Markets:

A Class outlets. A Class Locality. A Class People (Disposable Income more than 10,000 per month). Status Conscious People. Teen Agers.

Segmentation Basis:
Geographic:
Japan 125 India 911.6 Bhutan 0.8 South Korea 44.5 China 1,192 Nepal 22.1 Pakistan 126.4 Bangladesh 116.6 Thailand 59.4 Singapore 2.9 Maldives 0.2 Sri Lanka 17.9 Malaysia 19.5 Australia 17.8 Indonesia 199.7 New Zealand 3.5

Taiwan 22

Hong Kong 5.9

Vietnam 73.1 Philippines 68.7 Brunei 0.3 Papua New Guinea 4.0

Segmentation Basis:
Demographic: Adults and Parents: Cornetto, Feast and Polka Children: Fruiti and Top

Segmentation Basis:
Occasions:
Ice creams are also segmented on the basis of occasions or circumstances. Each ice cream has a different type of eat. Certain ice creams are creamier, heavier and last longer because of thirst or for refreshment as opposed to hunger. Similarly, Polka cups are ideal for deserts.

Segmentation Basis:
Psychographic:
Walls have also kept in view basic human wants while targeting its market. People consume ice cream under different psychological patterns, feelings and emotions. In this, the target segment is made by snacking items like Choc bar, Big shell, Big Three, Panda, Pop-Cornetto etc.

Market Needs:

Selection. Accessibility. Customer Design Service. Competitive prices.

Corporate Mission:

Feel good, look good and get more out of life.

To make cleanliness commonplace, To lessen work for women, To foster health and contribute to personal attractiveness, that life may be more enjoyable and rewarding for the people who use our products. Balancing profit with responsible corporate behavior:

Acquisition of POLKA
To make cleanliness commonplace. To lessen work for women. To foster health and contribute to personal attractiveness, that life may be more enjoyable and rewarding for the people who use our products. Balancing profit with responsible corporate behavior:

Market Expected Growth Trend for Cornetto

Current size, growth & profitability:

In Pakistan it is 51-60% of total ice cream market. If we dont count unbranded competitors then Walls has market share of 73%.In the branded ice creams, Walls is at the top and holds a huge market share of 85%. The remaining companies are far behind in this race. Walls has a share of 22% of the intervention ice cream market and in Pakistan it is 40% of total market.

SWOT Analysis

Strengths:
Walls over the year has proved itself as an expert in ice-cream industry and the evidence of their remarkable quality services is
GOLD EXCELLENCE TROPHY

For Dec, 2000 first time in Asia. This has given for high level of safety. This award is mark of parallel performance of Walls ice cream factory, which completed 3 million accident fee man-hours.

Strengths:
The main points that contribute to the strength of Cornetto are: A wider choice. Removing artificial coloring and flavorings. Less saturated fat & sugar.

More fruit.
More choice.

Weaknesses
Walls is facing problems in the following areas: As there are too many distribution channels of Walls so their distribution cost increases from the revenue generated by these outlets. In Pakistan the manager of Walls company is a foreigner so there are communication problems.

Opportunities
Great margin to increase target market. Strategic alliances. Selling products to other markets. Flexible Market.

Rural areas coverage.

Threats:

Unstable market due to poor political situation. Sometimes religious movements against foreigners. Future potential aggressive competition from already existing companies.

Health conscious people can go against the vegetable fats instead of milk fats.

Competition:
Direct: Hico. Yummy. Pearl. Igloo. Smile. Eatmore. Indirect: Haagen-Dazs. Royal treat. Local ice-cream.

Comparison with competitors.

Product Offerings: Goods Classification:

Consumer Goods. Convenience Good as well as Shopping Goods. Non-durable. Package Goods.

The product introduction CORNETTO

Leading premium brand of Walls In start it was status symbol, now it means value of money.

Cornettos products:
Cups:

Cornetto Chocolate Vanilla Cup (Sundae Cup). Cornetto Premium Cup.

Cornettos products:
Cornetto Premium Cup. Cones:
Cornetto Pop Cone. Cornetto Classico. Cornetto Double Chocolate. Cornetto Super Cone Strawberry. Cornetto Super Cone Chocolate.

Cornettos products:
Delisted Products:
Cornetto Mint. Cornetto Mango. Cornetto Orange.

Cornettos products:
Delisted Products:
Cornetto Mint. Cornetto Mango. Cornetto Orange.

Market Strategy:

Lever brothers will be the foremost consumer producers company in Pakistan with care, skin, ice cream and spread. Already position in tea, hair, dental and household care, substantially profitable position in cooking oils and fats.

Marketing Objectives:

Maintaining positive growth in each quarter. Achieve a steady increase in market penetration. Decrease customer acquisition cost 5% P.A. To increase sales volume by 10%. To increase market share of CORNETTO from 21% to 32% next year. Add new features of packaging i.e. new packaging style. Increase distribution coverage by opening Walls Ice Cream Parlors in Faisalabad.

Pakistan market share of Walls.

Financial Objectives:

Increase the profit margin by 5% P.A through efficiency and economies of scale. Maintain a significant research and development budget to support future product development. A double to triple growth rate for coming year.

Target Market Strategies:

Target Market A
Children: Age:7-12 Years. Product: Mini Cornetto. Teenagers: Age:13-19 Years. Products: Cornetto Orange.

Cornetto Banana.
Cornetto Mango.

Target Market Strategies:

Target Market B:
X-generation: Age:7-12 Years. Product: Mini Cornetto. Teenagers: Age:20-28Years.

Products: New Super Cornetto (TRIPPLE CHOC).

Positioning Strategy:
Attribute Positioning.

User positioning.
Quality & Price Positioning.

Product Differentiation:
Distinctive.

Superior.
Defensive.

Affordable.
Durable.

Share of Market:

Marketing Mix: Product:

Differentiation Factors:
Consistent quality. Hygiene. Aesthetic sense. Strong distribution channel. Change the concept of ice-cream in consumer mind. Brand loyalty. Advance promotional tools. Taste.

Marketing Mix: Product:

Quality Factors: Walls competitive advantage is consistent quality.

High-tech manufacturing equipment and strict quality control process. Highest standards of cleanliness.

Packaging.

At Walls following factors are considered while packing: Aesthetic sense. Legal requirements. Environmental aspects. Competition.

Product life Cycle

Cornetto Jet Sport, Cups & ChocBar

Tubs & Take2 Polka Products

introduction

Growth

Maturity

Decline

Price:
Pricing Structure:
Walls being the market leader and the major innovator in the industry normally charge higher prices for its products. These high prices are justified by the management that they are due to: High quality standards. Research and development cost. Extensive distribution etc.

Pricing Structure:
SELECT PRICING OBJECTIVE

SELECT METHOD OF DETERMINING THE BASE PRICE: Cost-plus pricing Price based on both demand and costs Price set in relation to market alone

DESIGN APPROPRIATE STRATEGIES: Price vs. nonprice competition Skimming vs. penetration Discounts and allowances Freight payments One price vs. flexible price Psychological pricing Leader pricing Everyday low vs. high-low pricing Resale price maintenance

Pricing Structure:

Markup = 20% = $18

Manufacturers Cost = 80% selling price = $72 = 100% = $72 Wholesalers selling price = 100% = $90

Markup = 40% = $60

Retailers Cost to selling consumer price = $150 = 100% = $150

Cost and profit = 100% = $72

Cost = 60% = $90

MANUFACTURER

WHOLESALER

RETAILER

CONSUMER

Promotion:
Communication Strategy:
The following are the communication strategies adopted by Walls to inform and persuade the people:

Sales Promotion. Advertising. Sales force. Public Relations. Direct Marketing.

Sales Promotion:

Main objectives of sales promotion:

To persuade present customers to buy more.

To combat competition.

Discount & Incentives:

To Customers:
Price Discounts. Quantity Discounts.

Discount & Incentives:

To Distributors:
50% of distributors expenses are paid by company.
Seasonal Discounts up to 5%.

Discount & Incentives:

To Retailers:
Free Freezers. Free Freezer maintenance. Margin up to 16.48%. Damage Policy. Margin up to 8.6%.

Discount & Incentives:

To Street Vendors: Free Trikes.

Advertising:
Media opted for advertisement is: Electronic Media. Outdoors. Print Media. Newspapers. Billboards.

PUSH STRATEGY

Producer Producer

Wholesaler Wholesaler

Retailer Retailer

Consumer Consumer

PULL STRATEGY Producer Producer Wholesaler Wholesaler Retailer Retailer Consumer Consumer

Product flow

Promotion effort

Sales Force:

Sales Force Incentives: Training programs: In-house training: Quarterly training programs. On job training.

Public Relation Management:

Fun Carnivals. Concerts. Toll free number at the back side of every wrapper 0800-13000. www.wallspakistan.com.

Distribution Strategy:

Distribution Channel:

Factory

Distributor

Retailer

Distribution Strategy:
Physical distribution means:
Distribution Vans. Trikes.

Distribution Strategy:
PRODUCERS OF CONSUMER GOODS

Agents

Retailers

ULTIMATE CONSUMERS

Distribution Strategy:
WELLDESIGNED DISTRIBUTION CHANNEL

Specify the role of distribution within the marketing mix

Select type of distribution channel

Determine appropriate intensity of distribution

Choose specific channel members

Action Programs:

Product Plan:
Advertising Plan: TV (Geo ,PTV, ARY Digital) and Radio (FM89,FM- 101). Bill boards. Newspaper (The News, Express, Daily).

Action Programs:
Sales Promotion Plan: Discount & Incentives: To public. To distributors. To Retailers. To street vendors.

Action Programs:
Public Relation Plan: Fun Carnivals. Concerts. Free number at the back side of every wrapper 0800-13000. Website address at the back side of every wrapper.

Marketing Research:

Walls is blessed with good fortune of being the leader of there market having a strong financial position so they can conduct each and every type of research.

Marketing Research:
Financials:
$100,000 90,000 80,000

Breakeven Analysis:
pe 80 t$ n ru it)

Cost, revenue, profit

70,000 60,000 50,000 40,000 30,000 20,000 LOSSES 10,000 0 BREAK-EVEN POINT

re tal o

ve

e nu

(a

PROFITS

s l co T ot a

ts

Total variable costs

Total fixed costs

100 200 300 400 500 600 700 800 900 1000 1100 1200 Quantity in units

Marketing Research:
Financials:
Monthly Units Break-even 2.4 million Monthly Sales Break-even

Breakeven Analysis:

Rs.102 million
Assumptions Average per unit revenue Rs.35 Average Per unit Variable Cost Rs.8 Estimated Monthly Fixed Cost Rs.449000000

Marketing Research: Financials:

Main Heads

Expense Forecast of 2007.

Sub-Heads Budget (RS)
100,00,000 70,00,000 5,00,000 10,00,000

Advertisement Plans TV and Radio Billboards(4 places) News Papers Theme adv.(3 Events)

Marketing Research: Financials:

Main Heads
Sales Promotional Plans

Expense Forecast of 2007.

Sub-Heads
Free Sampling Disc & Incentives
Price Quantity

Budget (RS)
15,00,000 25,00,000 20,00,000 15,00,000

Seasonal Discount special offer 5%.

Marketing Research: Financials:

Main Heads

Expense Forecast of 2007.

Sub-Heads
Free Freezers(200). Street Vendor Tri-cycles(150).

Budget (RS)
24,00,000 15,00,000

Public Relation Plans

Fun Carnivals(3place) Concerts(2)

Total Budget

100,00,000 50,00,000 44900000

Sales Forecast in Year.

Sale 2007 forecast in year Sales in million 2008 2009 2010 2011 2012

Rs.225 Rs.275 Rs.332 Rs.488 Rs.592 Rs.712

Sales Forecast in Year.

800 700 600 500 400 300 200 100 0 2007 2008 2009 2010 2011 2012 sale forecast

Control:
The following will enable us to keep on track . If we fail in any of these areas, we will need to re-evaluate our business model: Gross margins at or above 45. Month-to-month annual comparisons indicate an increase of 20% or greater. Do not depend on the credit line to meet cash requirements. Continue to pay down there debt line at a minimum of Rs.274 million per year.

Implementation:
Milestones Milestone Marketing plan completion Start date
1/1/2007

Plan End date

2/1/2007

Budget Manager Department (Milln) 7.5 A Marketing

Implementation:
Milestones Milestone Website completion Start date
1/1/2007

Plan End date

2/1/2007

Budget Manager Department (Milln) 2.2 B Marketing

Implementation:
Milestones Milestone
Advertising campaign summer

Plan End date

2/1/2007

Start date
1/1/2007

Budget Manager Department (Milln) 8.92 C Marketing

Implementation:
Milestones Milestone
Advertising campaign Winter

Plan End date

2/1/2007

Start date
1/1/2007

Budget Manager Department (Milln) 4.15 D Marketing

Implementation:
Milestones Milestone Start date End date Plan Budget Manager Department (Milln) 10.23 E Marketing

Development 1/1/2007 2/1/2007 Of the Retail channel Total 33.23 Million

Marketing Organization

Marketing manager will be responsible for the marketing activities.

Contingency Plan

Difficulties And Risks: Problem generating visibilities, a function of being an internetbased start-up organization. An entry into the market by an already establishment market ongoing basis.

Contingency Plan

Worst Case Risk Include: Determining that the business cannot support itself on an ongoing basis. Having to liquidate equipment or intellectual capital to cover liabilities.

Environmental Factors:
The external environment also posses great problems and challenges to Walls. The economic environment might cause: Changes in peoples spending patterns. Changes in major economic environment variables such as: Income. Cost of living. Borrowing patterns. Have a large impact on the demand for the products.

Marketing Plan Evaluation

AT IO

PL

AN N

IN

EV

AL U

IM

E LEM P

N TIO NTA