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In the end we give full credit to our class teacher Mr Salman Aizaz who
gave full morel support, also his inspiration gave us confidence to
complete this project.
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HISTORY OF ICE CREAM
Once upon a time, hundreds of years ago, Charles I of England hosted a
sumptuous state banquet for many of his friends and family. The meal,
consisting of many delicacies of the day, had been simply superb but the
''coup de grace' was yet to come. After much preparation, the king's
French chief had concocted an apparently new dish. It was cold and
resembled fresh fallen snow but was much creamier and wetter than
any other was after dinner dessert. The guests were delighted, as was
Charles, who summoned the cook and asked him not to divulge the
recipe for his frozen cream. The king wanted the delicacy to be served
only at the Royal table and offered the cook 500 pounds a year to keep it
that way some later, however poor Charles feel in disfavor with his
people and was beheaded in 1649. But by that time, the secret of the
frozen cream remained a secret no more. The cook, named DeMirco,
had not kept his promise.
This story is just one of many of the fascinating tales which surround
the evolution of our country's most popular dessert, ice cream. It is
likely that ice cream was not invented, but rather came to be over years
of similar efforts, Indeed, the Roman Emp=eror Nero laudius Caesar is
said to have sent slaves to the mountains to bring snow and ice to cool
and freeze the fruit drinks he was so fond of Centuries later, the Italian
Marco Polo returned from his famous Joanne to the Far East with a
recipe for making water ices resembling modern day sherbets.
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How Popular Is Ice Cream?
Milkfat: >10%
Milk solids not fat: 9% - 12%
Sucrose: 10% - 14%
Corn syrup solids: 4% - 5%
Stabilizers: 0% - 0.4%
Emulsifiers: 0% - 0.25
Water: 55% - 64%
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HISTORY OF THE COMPANY
Now lever Brothers Pakistan has many branch factories. Their Main
branches are in Karachi, Lahore, Rahim Yar Khan and Rawalpindi.
The Head of each branch is the branch manager.
HISTORY OF PRODUCT
4
C
URRENT MARKET SITUATION
Before Wall's introduce in Pakistan, Polka was the market leader but it
had to face competition with Yummy, and Rocco soon after. Polka
dominated the local market between 1980 - 1990s. These were the only
three ice cream companies in Pakistan during that period. Polka had
almost 80 - 85% share of the market, the rest was shared by Yummy
and Rocco. Due to their heavy investment and sponsorship Polka was
the name that came into one's mind when one though about ice cream.
But that was in the 80s, then came Wall's in 1995 and that was it the
turning point for Polka's Sales.
Wall's had a very different strategy than polka, they projected
themselves as very strong company, plus they had a very strong
marketing Plan, Which removed Polka out of the Market in to no time.
Hence today we see Wall's SPD's on the streets of Pakistan selling all the
variants of ice cream.
Presently Hico has also captured the market, due to the result of there
changed recipe and stronger marketing strategy.
According to the survey conducted by the Lever Brother of Pakistan the
Current Market situation of the market is somewhat like the following.
Market Share
Others
5%
hico
20%
Wall's
Yummy
hico
Others
Yummy
10% Wall's
65%
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Competitors Analysis
There are major steps in an analysis of competitors after identifying the
present and potential close rivals. The analysis consist of examine
objectives strategy performance, strength and weaknesses and than
predicting the feature behavior of each, including the likelihood that
each will change it’s strategy and how it will respond to move make by
other.
Competitor Objective
Competitor Strategy
Competitor Success
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SWOT ANALYSIS OF WALL'S
STRENGTH
Financially Strong.
Wide distribution, due to establish distribution.
High Quality
Good image in the mind of Customer.
Aggressive Promotion scheme's.
WEAKNESS
Pure milk is not used in ice cream
There is no variation in Taste
OPPERTUNITIES
Gap in Mkt. for diet ice cream, which Wall's can cover because they
are more, establish than other's.
Walls proves itself to be quality oriented product and maintain good
taste and standard, than it would be able to create a strong position
in all (Pakistan) for a long period of time.
THREATS
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Hico is also new comer, but rapidly increase in their Market share is
a big threat for Wall's.
OBJECTIVES OF WALL'S
The objective of wall's as under: -
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Walls market Segmentation,
Targeting and
The market
Segments
(A, B, C, D, E, F)
Market targeted
(A, E, F)
Product Positioning
Each target segment
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SEGMENTATION
A market segment consists of a large identifiable group with a market.
Buyers are differ in their wants, purchasing powers, geographical
location, buying attitude and buying habits Walls have segmented
market according to consumer characteristics and consumer response.
Walls take advantage for both these strategies. In identical consumer
characteristics those whose geographical, demographic and
psyhographic characteristics are common and from an other those
customer who give much attention to benefits, occasions and brand.
1. Demographic segmentation.
2. Geographically segmentation.
3. Psychographic segmentation.
4. Behavior to word Product.
The wall's segmented the entire market into such segments, which are
differentiable through:-
Demographically Segmentation
Walls introduce the brands for the younger as well as the children's.
Wall's targeted both high as well as low-income gourds. In simple word
we can say that wall's introduce of all income and all age groups.
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GEOGRAPHIC SEGMENTATION
Behavioral Segmentation
TARGET MARKET
It is the process of evaluating each market segmentents attractiveness
and selecting one or more segments to enter. Some time companies are
able to target every segment, because they are financially strong and
they can arrange a vast product line.
Wall's has been targeted every segment and we can say that wall's has a Fragmented market.
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After realizing the need, potential in market and rapidly increasing
growth and market share of the product. The company launches a
WALL ice cream and expands its product line. Company tries to
position it as an economical, qualities, and variety of features. Which
can be easily sell at any times anywhere in the country. Company
existing position in the market also helps to position it successfully in
Brand C Brand B
Brand A
Brand E
Low Quality High Quality
Low Price
Market Attractiveness
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Wall has identified and described the various segments in given market,
it must determine the attractiveness of each. Relevant factors to
consider here pertain to the market, economic and technology,
competition and the general environment Wall undertaking an
attractiveness analysis would have added and delete factors according to
its own needs.
Market
_ Size
_ Growth including stage in product life cycle
_ Differentiation possibilities
_ Bargaining power of customers
_ Cyclicality and Seasonality
_ Distribution
Investment intensity
Industry capacity
Technology
Barriers to entry and exit
Access to supplies
Competitive
Competitive structure
Competitive groupings
Substitute products
Price
Individual competitor analysis
13
MARKETING MIX
STRATIGIES
PRODUCT
14
Wall's is a consumer product with a very long range of ice cream
brands. Which are shown in the annexed table.
Products Flavors
Cornetto Mango, Classico, Strawberry
Feast Chocolate, Kulfa
Split Mango, Strawberry
Solo Mango, Kola Raspberry
Mini milk Samar, Kulfa
Paddlepop Banana, Rainbow, Chocolate-Fudge
Fruiti -------------------------
Topten -------------------------
Star Cup Vanilla, Mango Slash, Vanilla, Chocolate,
Strawberry
Family Pack (1 liter) Mango, Chocolate
Product Differentiation
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Difference in product features or performances are not the only way a
business can differentiate its offering. The customer services can also
effectively have maintained and advantage over competitor.
FUNCTIONAL PERFORMANCE
DURABILITY
(Related attributes of ice cream)
CONFORMANCE TO SPECFICATION
Absence of defect has been a major focus of the Wall’s. It has been the
primary focus of ice cream’s quality improvement program. Wall’s
relied heavily on broad product line.
Features:
Reliability
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Serviceability
1. Introduction
2. Growth
3. Maturity
4. Decline
A product life cycle consists of the aggregate demand for all brands
comprising a generic product category. A Company's marketing success
can be affected considerably by its ability to understand and manage the
life cycles of its products.
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Management must recognize what part of the life cycle its product is in
an any given time. The competitive environment and resultant
marketing strategy ordinarily will differ depending on the stage.
INTRODUCTION
During the first stage of a product's life cycle, It is launched in to the
market in a full-scale promotion and marketing program. The entire
product may be new, or the basic product may be well known but have
a new feature of accessory that is in the introductory stage. There are a
high percentage of product failures in this stage. Operations in the
introductory period are characterized by high costs, low sales volume,
net losses, and limited distribution. However for really new products,
there is very little direct competition.
Introduction Stage
The introduction stage is very crucial stage, because if the product is not
launched properly it will not be able to survive in the market for long.
In introductory stage the prices are normally high because normally
innovators adopt it and they are not price conscious. Wall's also adopt
this pricing strategies.
GROWTH
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In the growth, both sale and profit rises, often at a rapid rate.
Competitors enter in the market in large number, if the profit out look
is particularly attractive. Number of distribution outlet increases,
pricing may come down a bit. Typically, profits starts to decline near
the end of Growth stage.
MATURITY
During the first part of this period sales continue to increase, but at a
decreasing rate. Marginal producers are forced to drop out of the
market. Price competition intensifies.
DECLINE
Wall's is standing on maturity stage with 65% of total market share and
Wall's is a leader in ice cream market. To survive in the market Wall's
introduce time to time their new flavors and different promotional
schemes.
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Features of Product
Brand Name
A name, term, sign, symbol, design, or a combination of these intended
to identify the goods or services of a one seller or group of sellers and to
differentiate them from those of competitors.
The brand name of product is "Wall's" which can be easily vocalized.
Brand Mark
Brand mark is a part of brand that appears in the form of a symbol,
design, or distinctive coloring or lettering. It is recognized by sight but
may not be expressed when a person pronounces the brand name. The
management of Wall's uses blue color for name, Red, yellow and white
background, which is very attractive.
Packaging
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The activities of designing and producing the container or wrapper for a
product. Packaging serves several safety and utilitarian purpose. It may
be a part of a company's marketing program and it is help full to
identifying product among the competitor. Today, however, the
marketing significance of packaging is fully recognized, and packaging
is truly a major competitive force in the struggle for markets.
As walls is a perishable consumer product so it is carefully packed, so
that it can protect the product in its way to the consumer, provide
protection after the product is purchased, help in acceptance of the
product from middleman and help persuade consumer to by the
product. Packaging of wall's also containing information about the
product.
Labeling
Labeling is another product feature that requires managerial attention.
A label is a part of a product that identifies the product, describes
several things about the product who made it where it was made, when
it was made, its contents, how is to be used and how to use it safely. A
label may be a part of a package, or it may be a tag attached directly to
the product. Obviously there is a close relationship among labeling,
packaging and branding. Finally, the label might promote the product
thought attractive graphic. Descriptive label is used for Wall's as it
contains ingredients, nutritional contents and flavor of the ice cream.
Wall's is using very attractive design and beautiful colors for the
customer attraction. All the wrappers provide some ideas about the
flavor, taste, quality and freshness of the product.
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Pricing Strategies
Introduction:
"Price" is one of the most important "P" of the marketing Mix. Pricing
is important because it is a reward to the company and must be in hand
to complete the other three "P" of the marketing Mix. The pricing of
the goods and services performs a key strategic role in many firms
because of the deregulation intense global competition, Slow growth in
many markets and the opportunities for firms to strengthen market
position. Pricing decision is very important because the survival of a
company in the market depends upon Pricing decision. Pricing stratigy
depends on pricing objectives.
Pricing Objectives
Companies use their price strategies to achieve one or many of the
several objectives. They may price for results (sales, market share, and
profit) for market penetration or positioning. Pricing objectives may be,
Sales volume
Profit
Market growth
Pricing objective of Wall's are market growth, sales volume and also
making profit. To achieve these objectives Wall's oftenly add new
features in the product and also decrease its price.
Wall's has very long range of its line of products. The various product
line of Wall's is as follows:
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Products Flavors Price
Cornetto Mango, Classico, Strawberry
Feast Chocolate, Kulfa
Split Mango, Strawberry
Solo Mango, Kola Raspberry
Mini milk Samar, Kulfa
Paddlepop Banana, Rainbow, Chocolate-Fudge
Fruiti -------------------------
Topten -------------------------
Star Cup Vanilla, Mango Slash, Vanilla, Chocolate,
Strawberry
Family Pack (1 liter) Mango, Chocolate
Wall's uses the same price strategies for all regions. They are giving 5%
discount to their wholesalers and 7% to their retailers. Company
provides off-season quantity discount (3 extra ice cream pieces on the
purchase of a cart on to their dealers.)
Pricing strategies
There are two main strategies for pricing, which the companies
adopt.
Market-Skimming Pricing
Market-Penetration Pricing
Skimming Pricing
Market skimming involves setting a price that is high in the range of
expected prices. This strategy is particularly suitable for new
product because in the early stages of a product life cycle, price is
less important and competition is minimum. Product user is from
high-income group and they are financially strong and they are not
price conscious. Profit margin is high. We can not set this strategy
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for a long period of time because after some time competitor arrives
in the market and competition among them start.
Penetration Pricing
In market penetration pricing, a low initial price is set to reach the
mass market immediately. This strategy can also be employed at a
later stage in the product's life cycle. Some companies adopt this
strategy to puss out the competitor from the market because new
arrival can not survive in the market with low price for a long time.
Placing Strategies
Introduction
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Placing is also a one of important "P" of Marketing Mix. A
product has to be available at its appropriate place. Wrong placing
of product could prove to be very harmful to the company. Placing
dose not mean just the availability of the product, in fact the time at
witch the product is available matter too.
When a product is being advertised in the market, the customer at
once hunt for it and if there is no sign of the product, it creates a
wrong image in the customer's mind.
The approach towards the product for the customer should be easy,
providing inconvenience to the customer should be avoided, as the
customer would at once shift towards the alternative product.
These spots are where people go out for purchasing, for eating
and enjoyment and oftenly makes impulse buying. Through this
Wall's increase its sales.
Distribution Channels
A distribution channel consists of the set of people and firms involved in
the flow of title to a product as it moves from producer to ultimate
consumer or business user. A channel of distribution always includes
both the producer and the final customer for the product in its present
form as well as any middlemen (such as retailers and wholesalers).
Designing and selecting the right distribution channel is very
important task.
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The right distribution channel can help to promote a product a
lot, plus the distribution channel is a very good source of
feedback from the market and from the customer. The most
commonly used distribution channel in the market for tangible
products to ultimate consumer, are:
Producer Consumer
Producer Retailer Consumer
Producer Wholesaler Retailer Consumer
Producer Agent Retailer
Consumer
Producer Dealer Retailer
Consumer
Producer warehouse Retailer
Consumer
Physical Distribution
Physical distribution consists on all the activities concerned with
moving the right amount of product to the right place at right
time. For manufacturer physical distribution includes the flow of
raw material from the source of supply to the production line
and the movement of finished goods form the end of the
production line to the final users location. Ice Cream is very
delicate frozen food, and as they say "Ice Cream is a Game of
Temperature", so it is very important to manage the physical
distribution in a proper manner. We intend to follow the
following steps in this regard:
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• Establish distribution centers all the cities where the Ice-cream to be
supplied, these distribution centres will have a storing facility i-e a
large freezer room for storing the ice-cream, the temperature
maintained in the freezer room will be -50 degrees Centigrade.
These distribution centres will be responsible for the flow of
product. They will take orders from a market, fill them and provide
on time delivery to the retailers. These distribution channels will be
run by the whole salers, they will required to keep a certain level of
inventory to fill the customers orders promptly, completely and
accurately. Each city will have one distribution centre that will cover
the whole city.
• As set earlier that ice cream is a very delicate food and should never
be allowed to rise above -18 C for super market products. Scoop ice-
cream should be stored and transported at -18 C, but may be
dispensed by retailer at -15 C. ice-cream is stored at colder
temperatures than most other frozen food and needs extra special
care. When ice cream is allowed to rise above these temperatures
then this is called "Temperature Abuse". This will lead to "Heat
Shock", where large ice crystals form and the product starts to
shrink. These defects can never be reversed. So it becomes a very
important to transport ice cream in truck with heavy-duty freezers.
The distributor should always take care of trucks and keep them
properly maintained. Smaller trucks are used for deliveries within
the city and big one for the transportation of ice cream from
production plant to the distributors.
Innovation in Placement
Wall's introduced first time in history of Pakistan door to door service
facilities. That is Spot Point Dealer (SPDs), these are the mobile
sellers. That is great achievement of Wall's Ice Cream. Tricycle provides
door to door services that is way Wall's is easily available in every
where city, town, street, market etc. In tricycle the soft music
continuously singing a bell witch is the identification of Wall's. Through
this Wall's also make sales promotion and people oftenly made impulse
buying which increases sales.
Promotion Strategies
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Introduction
The marketing mix activities of a product planning, pricing, and
distribution are performed mainly within the organization or between
the organization and its marketing "partners". However, with
promotional activities, the firm communicates directly with potential
customers.
Promotion is the element in an organization's marketing mix that serves
to inform, persuade, and remind the market of the organization and its
products.
Promotional Methods
The promotional mix is the combination of personal selling, advertising,
sales promotion, publicity, and public relations that helps an
organization to achieves its marketing objectives.
• Personal Selling
Personal selling is the presentation of a product to a prospective
customer by a representative of the selling organization. Across all
business, more money is spending on personal selling then on any other
form of promotion. Its example is "SPDs" which is introduced by
Wall's.
• Advertising
Advertising is the promotion of product or services through wide
variety of messages transmitted through different media.
• Sales Promotion
Sales promotion is designed to supplement advertising. Include
promotion activities as contests for sales people and consumer, trade
shows, in store displays, samples, premiums, and coupons.
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Wall's select to promote its product, personal selling, advertising, and
sales promotion. For personal selling it introduced "SPDs", for
advertising, and sales promotion it used printed and electronic media.
Advertisement of Wall's are eye catching and attractive. Through
advertising it informs the consumer about new brands and flavors.
For sales promotion Wall's introduced different Schemas which are:
• In solo ice cream, one ice cream piece is free in the packet.
• In max-cup the Wall's gives bubble gum free.
• The Wall's launch the scheme for 15% extra in top ten.
• In family pack i-e "Polka Red Top" special discount price scheme.
Recommendation
• There is a gap in the market for Diet Ice Cream. Wall's should
introduce it because they are financially strong company. Through
this they can capture a big market of the people who are health
conscious.
• Wall's should increase its distribution area and should goes in that
area where Wall's is not available.
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