Marketing Report on Omore Ice-cream

Assignment 1
MG 220 - Marketing Management
MBA – 10

October 8, 2010

Submitted By: Qasim Tariq Qureshi

10L-5407

Submitted To: Course Instructor, Mr. M. Talha Salam

 Part 1: Four Ps of Marketing

4Ps of Marketing of Omore:

Product:
- Product Variety: A wide range of dairy ice creams and frozen desserts

- Quality: Premium ice cream rich in calcium which is fresh every time

- Design: Includes ice pop, choc bar, dairy ice cream and pop sickle.

- Features: Made from fresh milk and cream and high in nutrition

- Product Name: Frooze ice pops, Nutty/ Caramel Cones, Strawberry/Mango/Vanilla Affair,
Kulfi, Lick A Flavor, Frooze Cups

- Packaging: High quality and eye catching packaging. Packaging color ranges from red, blue,
yellow, orange and green. Packaging is colourful in order to attract children.

- Sizes: Sizes include 1ltr, 2ltr, and half litre for dairy ice cream. Choc bars & soft serve ice
cream are of different sizes as well

- Service: Satisfying the dessert needs of the

population in the best possible manner and delivering quality every time to the consumer

- Warranty: None what so ever.

- Returns: Only in the case when ice cream is expired.

Price:
List Price: Price varies for different ice creams. Depending upon

- Cups = 20rs
- Cones= 30rs
- Ice Pop: 10rs
- Soft serve ice cream= Rs 10-50
- 1Ltr ice cream Tub= Rs 150
- 2ltr ice cream Tub = Rs 275

- The price of its competitor (Walls) is more or less the same and price of liter ice creams is less
than Walls which is a great strategy

- Omore offers a 16% margin to retail traders and shop keepers which is slightly lower than
Walls, who offer a margin of 20% to shop keepers. They are new in the market and do not have
the same relationship with retailers as Walls

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 Part 1: Four Ps of Marketing

Place:
- Channels: Sells directly to the end user through retailers and shopkeepers. This is the trend in
Pakistan followed by many FMCGs.
- Coverage: Omore ice cream for the time being is only available in limited areas on Punjab and
not available throughout Pakistan. The company started off its operation in Punjab because it has
the largest province population wise
- Transport: Ice creams are transported to retailers and shop keepers through private
transportation firms e.g. Abu Dawood Logistics and also through a few trucks owned by the
company. This is done in order to remove transportation and vehicle costs
- Locations: Available at large/medium sized and small bakeries, grocery stores and pharmacies
in Punjab
- Sell their products directly to consumers using cycles and their own personnel. This strategy
has been in practice for many years and is being used by Walls and Hico too.

Promotion:
- Advertising: Vehicle Advertising, Outdoor billboards, Point of Sale Displays and Ads on
televisions. Advertisements are mostly colourful reminiscent 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/slogan is “Art of
Happiness”
- Linked with consumers and got reviews of different ice creams using various mediums social
communities e.g. Facebook and Orkut
- Linked their ice cream with other brand names like Olpers and Olwell. This promoted their
other brands as well which are also relatively new in the market

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 Part 2 & 3: SWOT Analysis & Assessing Growth Opportunities

SWOT Analysis – Engro Foods (Omore Ice cream)

Strengths Weaknesses
- Omore ice cream is a brand of Engro foods - Only available in Punjab as compared to
which is a well renowned FMCG company in Walls which is available throughout Pakistan
Pakistan
- Omore is a new brand in the ice cream market
- Engro is also a world renowned company and people in rural Punjab do not have much
working in the Fertilizer, IT and Chemicals idea if the brand exists.
business
- Most of their advertisements have stirred
- Omore ice cream is made from fresh milk and controversy e.g. their advertisement of the
cream as compared to Walls which contains fat recently launched Nutty Choc bar does not go
along with our cultural and religious values
- Total Sales of 14,900 million Rs which shows
positive response and customer satisfaction - Engro foods only have a few products in their
range as compared to Nestle and
- Engro foods do a lot of research before and
after launching their products and they did so - Although Omore have a great range of ice
with Omore. This resulted in their ice cream cream flavors they are no match for Walls who
being a huge success. have a huge range of flavors and products

- Omore have the only plant in Pakistan that -No rigorous publicity of their products as
uses Bactofuge technology to eliminate compared to Walls e.g. Walls have huge
bacteria and ensure hygiene campaigns when they launch new products

- Provide much better ice cream and that too at

a lower price than their competitors
Opportunities
- There are a lot of opportunities in the ice
cream market as there are only a few major
players like Walls and Hico
Threats
- Walls and Hico have been in the ice cream
market for a very long time. It may take some
time before people get to know the brand

- Omore can always come with new flavors - New players have entered the market like
and attract more consumers Gourmet plus private ice cream parlors
(Malees, Hotspot, Gelatto Affair) have sprung
- Omore should not limit themselves to up around Pakistan which pose a threat to
departmental stores and groceries. They can Omore
open ice cream parlors where people could
enjoy their ice cream - Ice cream is perishable item plus load
shedding and electricity problems cause
- Introduce diet ice cream in Pakistan for problems and damage the product
people who have diabetes especially elders.
- Change in government policies can lead to
- Introduce ice cream in schools and colleges increase in milk price which would also
because Pakistan has long summers and people increase the price of the ice cream.
love ice cream especially the youth.

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 Part 2 & 3: SWOT Analysis & Assessing Growth Opportunities

Assessing Growth Opportunities:

There are 4 options to achieve further growth. In this I will be analyzing the different growth
options that could be used by Omore to grow in business and which will be the most beneficial
option for them.
Intensive Growth:
Omore’s first strategy should be to improve their existing business

The company should focus on making their
ice creams available in the present market.
This can only be done by extensive
advertising and by offering the same high
quality products to the customers.
One of the greatest benefits of ice cream
business is that new products can be added
with change in season. Omore can also
introduce new ice cream flavors by staying in
the current market. An example can be
introduction of diet ice cream

The same products can also be extended to
newer markets. Omore for the time being is
only offering ice cream in Punjab. In order to
grow their business they should introduce
their ice cream in the other 3 provinces as
well. This would result in the increasing
revenue as well more customer base
Omore can also launch new products if their
customers are satisfied with the quality and
loyal to the brand. An example can be that
Omore can introduce chocolates. People who
are satisfied with Omore’s current products and
quality will buy the product and this would
result in increasing sales of the company.

Diversification Growth:
Diversification growth strategy should only be applied when a firm finds a highly attractive new
industry. The parent company of Omore (Engro Foods) has also applied the diversification
strategy. It started off with packaged milk and later on moved to ice cream. The company moved
to a completely different business.
Omore could focus on making new products that have synergies with existing product lines e.g.
(Omore might start a biscuit/cone manufacturing company).
Omore could also develop new products that aren’t related to its current product line e.g. (Omore
could focus on making flavored yogurt for its current customers
Omore could also seek new opportunities that are not related to the current products and markets
e.g. (Omore could enter the business of making snacks like chips and nimco)

Why I chose these?

The main reason of choosing these two strategies was that they focus more on product building
and market development. Omore is an FMCG company and the end of the day its main focus is
to make products, retain their customers and find new markets. The other reason of choosing
these strategies was that Omore is a new brand and it has to capture the market first and make a
name for itself instead of making acquisitions.

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 Part 2 & 3: SWOT Analysis & Assessing Growth Opportunities

It’s unfeasible for the company to focus on integrative growth because it is a new brand and has
yet to make a name for itself. Integrative growth should only be considered by brands that are old
in the market and now the competitors and suppliers well.
Omore can also not focus on divesting and downsizing because it is a new brand and in order to
attain leadership it has to grow rather than reducing its costs.

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 Part 2 & 3: SWOT Analysis & Assessing Growth Opportunities

Marketing Research:
Omore received an over whelming response when they introduced their ice cream in the
Pakistani market. In a few years they cemented themselves as one of the leaders in the ice cream
industry thus making Omore a household name. Omore are intending to launch diet ice cream for
the first time in Pakistan but before they go ahead they want to carry out a market research of
whether people are willing to accept diet ice cream, how successful will it be and who will it be
consumed by i.e. patients, people on diet etc.

Research Objective
Research
“How many people are willing to take diet ice creamPlan
as a dessert as compared to our existing ice
cream?”
Data Sources: Primary data is to be used for this project since there isn’t any shortage of
time and resources. Omore are launching diet ice cream for the first time in Pakistan so
there isn’t secondary data available that the company can pursue. Since they are launching a
new product which hasn’t been introduced before, collection of primary data is a viable
option.
Research Approaches: The following research approaches are to be used for this project:
Focus Group Research: Targeting consumers who follow a strict diet plan and abstain from
eating regular ice cream, diabetic patients who cannot eat regular ice cream due to blood
sugar.
Experimental Research: Samples of different ice creams can be produced and testing is to
be done by diabetic patients or people who follow a strict diet. These samples of ice cream
can be kept at various stores along with personnel who could analyze consumer’s behavior
and get feedback at the same time regarding their product
Since this is an edible item observation cannot be a successful option. Similarly survey
research should also be abstained from since this product is not for the masses. Behavioral
data cannot be purchased as diet ice cream has never been previously launched in Pakistan.
Research Instruments: The following research instruments are to be used for this project:
Questionnaires: Develop a questionnaire the main purpose of which will be to determine
the eating habits of respondents and the goal of each question will be to obtain the required
information. MCQs are to be chosen for questionnaires which will be specific to abstain
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from wastage of time on both ends.
Qualitative Research and Technological devices are not to be used for this research plan as
this product is for a very small sample and these options would not be feasible
 Part 2 & 3: SWOT Analysis & Assessing Growth Opportunities

Sampling Plan:
Sampling Unit: Only those people are to be selected who have high blood sugar and people
who follow a strict diet plan.
Sample Size: Only a small sample of people and that too at specific locations because this
product is not for the masses
Sampling Procedure: Respondents are to be chosen from gyms and various diabetic wards
(hospitals) in various areas of Lahore because they usually follow a strict diet plan which
will result in a better end result. A non-probability sampling method will be used because
diet ice cream is not for everyone

Contact Methods: To get in touch with respondents by using various methods

Telephonic Interview: Get contacts of the members of the Diabetic Association of Pakistan,
call them up and take 1-2 minute interview regarding their eating habits and ask that if diet
ice cream is introduced would they prefer having it over other desserts
Personal Interview: Visit people personally at gyms and diabetic patients. The process is
time consuming and costly but the feedback is generally good and people are rather curious
when a new product is to be introduced in the market
Online Interview: Since the internet is an inexpensive and a fast medium, the company can
request a survey on their website

Collect the Information

Analyze the Information

Present the Findings

Make the Decision

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