NATIONAL TEXTILE UNIVERSITY

DEPARTMENT OF MANAGEMENT SCIENCES

SUBMITTED TO:

MR. FAROOQ JAMAL

SUBMITTED BY:
NAME
HASSAN YAQOOB M. BADAR SHAHAB M. ALI ANJUM ABAID-UR-REHMAN

REG #.
(10-NTU-5026) (10-NTU-5241) (10-NTU-5026) (10-NTU-5026)

SIGNATURES
__________________ __________________ __________________ __________________ __________________

MUHAMMAD MATEEN (10-NTU-5026)

MBA 2ND SEMESTER SECTION A

DATED: 28-06-2011

This Project Is Submitted In Partial Fulfillment Of Requirements For The Repositioning Of Yummy Ice Cream Company.

In the name of ALLAH, the most beneficent, the most merciful. Its the body of ALLAH that we breathing on this earth despite of our thousands of sins and mistakes. We do 100 good things. Nobody remember! We do 1 thing wrong. Nobody forgets! Its ALLAH, who gives, gives & forgives Its human, who gets, gets & forgets

Two people see from the same window, one saw moon and other saw mud.

We are very thankful to ALLMIGHTY ALLAH who gives us so much courage and bless. To our loving parents whose prayers make us to complete this project. To our Guide and Instructor who have given us the knowledge and help in preparation and designing of this project.

All praise to ALMIGHTY ALLAH omnipotent and omniscient and the HOLY PROPHET MUHAMMAD (PBUH) who is the beacon light for mankind forever. We are very thankful to ALLMIGHTY ALLAH and our respected Instructor Mr. Farooq Jamal who gives us so much learning, not only in the related subject but also helps us in the other subjects too. We think that our research work would not be possible without the help and guidance of our respected Instructor Mr. Farooq Jamal.

Table of Contents
CURRENT MARKET SEGMENTATION ....................................................... 1 1. 2. Geographic segmentation ............................................................ 1 Demographic Segmentation......................................................... 2 Kids ................................................................................................. 3 Teenagers........................................................................................ 4 Adults .............................................................................................. 4 Gender Segmentation ......................................................................... 4 Income Segmentation ......................................................................... 5 3. 4. Psychographic Segmentation ....................................................... 5 Behavioral Segmentation ............................................................. 6

Age Groups ......................................................................................... 3

COMPANY NAME .................................................................................... 7 Yummy Ice Cream Company ................................................................... 7 Departments of the Company ............................................................. 7 PRODUCT REVIEW ................................................................................... 8 Packaging ............................................................................................ 8 CORE BENEFITS ..................................................................................... 12 INGREDIENTS ........................................................................................ 12 PRODUCT DEVELOPMENT PROCESS (YUMMY ICE CREAM) ................... 13 PRODUCT LIFE CYCLE ............................................................................ 15 COMPETITOR REVIEW ........................................................................... 16 OUR KEY COMPETITORS ........................................................................ 16 COMPETITOR`S PROFILE ....................................................................... 17

DISTRIBUTION REVIEW ......................................................................... 18 MARKETING CHANNELS ........................................................................ 19 CHANNEL LEVELS .................................................................................. 24 DISTRIBUTION SITUATION..................................................................... 24 WAREHOUSING ..................................................................................... 25 SWOT ANALYSIS .................................................................................... 25 Strengths: .......................................................................................... 25 Weaknesses: ..................................................................................... 26 Opportunities: ................................................................................... 26 Threats: ............................................................................................. 26 Suggestions for Weaknesses and Threats: ........................................ 27

CURRENT MARKET SEGMENTATION

Current marketing segmentation of Yummy Ice Cream is as under:

1. Geographic Segmentation 2. Demographic Segmentation 3. Psychographic Segmentation 4. Behavioral Segmentation

1. Geographic segmentation In geographic segmentation the company divided the each city into different segments according to Areas, States, Regions, and Markets. Yummy Ice Cream is targeting as geographic segmentation of the Pakistan. We are targeting now the main cities of provinces as: Page 1 of 37

Capital Territory (Islamabad) Punjab (Lahore, Faisalabad, Multan) Sindh (Karachi, Hyderabad) NWFP (Peshawar) Baluchistan (Quetta)

Target Segments Geographical 2. Demographic Segmentation In Demographic segmentation we will divide people according to their ages and life cycle. We will divide our customers regarding their ages as children, teenagers, twenty plus, thirty plus, and so on more than fifty years old. Page 2 of 37

But when we think about the children, they are more interested to eat ice cream of different flavors. Age Groups

Target Segment Age Group

Kids Kids normally do not have a great know-how of the taste rather they are psychologically attracted towards the product. They are not concerned with the taste of ice cream they just want the ice cream. As they are dependent and cannot spend money themselves, so their Page 3 of 37

parents mostly just provide them with an economical ice cream, not any specialized ice cream as it is not demanded. Teenagers Teenagers dont have any specific taste and preferences. New products and new ideas always attract them. But they are limited about the products generally and they have to maintain their expenditures as well. Adults Adults mostly prefer the quality products, which not only fulfill their tastes and preferences requirements but also reflect their personality. The adults are normally ready to pay for products which fulfill their physical and psychological needs because they are the income generators.

Gender Segmentation We need not to make the search on gender segmentation because Yummy Ice Cream is for both male and female.

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Income Segmentation We can easily make the division according to the income of people. Through the income segmentation, we can divide the people into different levels of groups regarding their income on monthly bases. High Income Group Middle Income Group Small Income Group Less Target Segment Target Segment Less Target Segment

3. Psychographic Segmentation The psychographic segmenting is done on the basis of the taste and health conscious consumer. Yummy is targeted its market by creating Page 5 of 37

an image of high quality and hygienic products. Yummy was for anyone, anywhere and at anytime. 4. Behavioral Segmentation

Behavioral segmentation divides buyers into groups, based on their Knowledge, Attitude, Uses, or Responses about the products. We also believe like many marketers that behavior variables are the best starting point for building the best market segmentation. To make the best marketing structure we can set a reasonable price which is suitable for all types of social classes in Pakistan. By using focus strategies in which they just target the segment of sufficient size, not crucial to success of major competitors and they are not attempting to specialize in the same target segment.

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COMPANY NAME Yummy Ice Cream Company

Departments of the Company Department of Finance Department of Accounts Department of Administration / Human Resources Department of Marketing and Sales Department of Research & Development / Food Technology Shipping Department Engineering Department

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PRODUCT REVIEW
Required Temperature: Below -18C. Life time (Out of freezer): 25 min. Expiry: 12 months. Packaging Packaging: Multiple packaging

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CORE BENEFITS
Core benefits of the Yummy Ice Cream Company are pure milk & butter used to make it and also the great flavors, less fat and more fruits. The new ingredients are called 'Ice Structuring Protein' (ISP). This protein allows us to make ice cream and ice bar which are lower in fat, sugar and calories and at the same time include more fruits. We can also now make ice creams and ice bar which cannot melt easily which is a great thing for small children and for hot countries.

INGREDIENTS
Ice cream is made from ice (water), milk, butter, fat sugar, milk powder, glucose stabilizers, food grad color, artificial flavors, emulsifier, and natural flavors & colors. All of these ingredients are necessary for you in your diet to lead an active lifestyle. From these ingredients you get protein that helps to build body tissues, carbohydrates and fats which give you energy and essential vitamins and minerals like calcium that help to strengthen bones and teeth.

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PRODUCT DEVELOPMENT PROCESS (YUMMY ICE CREAM)

Idea

New Product

Analysis

Test Market

Development

Idea Generation
Company has the full time Research & Development Department, which recommends new products planning and organizing. Company also does copy its competitors products. They also consult with their employees, customers about their needs and distributions.

Product Analysis
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After the conceptual test of ice cream products they analyze the products regarding their cost, sales, demand & supply and profits. Development Company develops a prototype or a sample test to check the taste of ice cream within the company. Then they make market strategy for the new ice cream products. It estimates the production level and technical production feasibility and finally needed government approvals for launching the products. In Pakistan government institutes which approve the products is PCSIR (Pakistan Council of Science and Industrial Research) Test Marketing After the introduction of products and marketing program to determine the reaction of the potential customer in market situation, company chooses Lahore city to test the market of his products. New Product Company builds inventory and distributes them, then makes the advertisement of new products through channels and brushers.

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PRODUCT LIFE CYCLE

1. 2. 3. 4. Introductory Stage Growth Stage Maturity Stage Declining Stage

Here we introduce new flavors and new products.

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COMPETITOR REVIEW
Hico Ice Cream was the first ice company in Pakistan. The brand Hico is well established since 1958. Hico has a fully automatic Ice Cream manufacturing facility, and has a production capacity of producing more than 4.5 million-litter dairy ice cream a year. It is marketed in major cities of Punjab. Today, the brand Hico is considered being the favourite in its hometown Lahore. Our company's strong distribution and marketing network guarantees consumer satisfaction and brand loyalty. Walls introduced in Pakistan in 1997-98. The product line consists from lollies to ice creams. This includes Cornetto, Callipo, Max, Kulfis, Top Ten Choc Bars, Feast, Milky Way and etc.

OUR KEY COMPETITORS

In ice cream market industry there are many companies which produce the ice cream but all of them are not our key competitors. It is because they do not produce the ice cream of our level. Now our key competitors are Walls & o more.

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COMPETITOR`S PROFILE
Walls introduced in Pakistan in 1997-98. The product line consists from lollies to ice creams. This includes Cornetto, Callipo, Max, Kulfis, Top Ten Choc Bars, Feast, Milky Way and etc. Unilever committed its own resources to acquire 'Polka' and consolidate the ice cream market for Lever Brothers Pakistan. Low gearing and reputation as a multinational blue chip give Lever ready access to capital at good terms to fund growth

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DISTRIBUTION REVIEW
Distribution means to distribute the product through different channels. Extension is in the nature of every business. We are changing the strategies day by day due to development of distribution channels. These days all the well dressed organizations adopted the distribution channels.

MANUFACTURING

CONSUMER

DISTRIBUTOR

RETAILER

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MARKETING CHANNELS
These are known as the set of independent organizations involved in the process of making a product or service available for the use or consumption. These channels perform the work of moving the goods from Manufacturer to the final consumer. It is the only way through which we can provide the goods to the final consumer at the right time and right place according to the needs, wants, and demands of general public. Mostly these channels perform the functions like. They collect the information about the potential and current customers, competitors, and other acts, facts, forces of the marketing environment. They develop disseminate persuasive communication to stimulate the purchasing. They place an order to the company. They provide best place for storage and movement of physical products. They evaluate and clarify the customer`s needs, wants, and demands properly. In conclusion to all above actions we can say that they perform their self as a platform on which all the work activities are handled between the customers and manufacturers.

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TV, Billboards, News papers, Magazines, Radio, Banners, Pamphlets, Stands in shops, Shop boards, Sponsorships of pop stars, actors, models, Event arrangements, Bus Stop Board Ads, Fun carnival carried out in different parks such as Racecourse Park. We choose the way for promotion of Yummy: TV Banners Pamphlets Stands in shops Shop boards Bus Stop Board Ads

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ADVERTISEMENT We are creating awareness about its new products such as Choc Dip, Chocolate Feast, for this purpose it is using huge signboards on the major square of the cities and more importantly both the print and electronic media for advertisement. Awareness We use print and electronic media plus the signboards initially just to create awareness and knowledge in the customer mind about its new product as these days it is giving a lot of ads of both of its newly launched products. Interest As the public gets awareness of the produces of Yummy. The next step is to create interest among the target buyers about the product which is again done through advertisement. Desire We create curiosity among the customers and transform that curiosity into the desire of the product. Action Finally to make the customer purchase the product this is the final thing to be done in model. We follow a sequential pattern through which it strengthens its newly launched products.

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Inform Persuade Remind

Companies inform the people when they dont know about the product, persuasion takes place when people already know about the product and company forces them to buy the product and when companies is selling enough quantities of a product it reminds consumers about the product to keep the sales at the same level in future. Promotion is important for firms in many ways. It helps to establish image of product, which the manufacture wants to portray, and also the personality of product. It informs the people, creates awareness and helps in positioning and repositioning of the product. With promotional tools company can tell about the availability of product, company can justify prices or can communicate the features of the product.

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SALES PROMOTION We are going for a number of sales promotion activities like: Cycling System: We start its cycling system for awareness but after that its task will be modified into doing sales promotions for the company. And also cycling system will prove excellent in terms of sales and promotion. Coupon System We will start a coupon system for build healthy relations with customers and for promotion of Yummy. A product containing a coupon, which will be printed inside the wrapping of the product. If a customer fined that coupon then he/she will win/get a Cow Boy dress. It also shows the heritage.

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CHANNEL LEVELS

Consumer

Retailor

Distributor

Manufacturer

DISTRIBUTION SITUATION
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WAREHOUSING
Yummy Ice Cream has two warehouses, the 1st in Multan and the 2nd in Islamabad. Warehouse of Multan serves the Sindh State and Islamabad serves the Khyber Pakhton Khwa. Company has its own network of 50 Vans & 4 big Trollers which easily deliver the ice cream to the retailers.

SWOT ANALYSIS
With the help of SWOT Analysis we know the Strengths, Weaknesses, Opportunities, and Threats of Yummy Ice Cream. Strengths: The strengths of Yummy Ice Cream are as follows: Yummy Ice Cream is available in natural taste. No preserving chemicals that affect the health. Its not a frozen dessert. It is a time saving product. Skilled and trustworthy workers are working in the company. Good growth of market. Page 25 of 37

Weaknesses: Some weaknesses of Yummy Ice Cream are given below.

The company has fewer resources as compared to competitors. It has not strong brand image. It has not any distribution channels.
They have less market share as compared to competitors. They have fewer budgets as compared to competitors. They have less technical resources.

Opportunities: There are also some opportunities for Yummy Ice Cream which is as under: The company can use new technology. They can change its target segment. Prepare the new Ice cream flavor. They can change product use. They can change product image by changing its styles. Threats: There also are some threats for Yummy Ice Cream: Competitors are willing to work on these products and o more has strong brand image. So competitors have captured the market share of the Yummy Ice Cream. Competitors have more resources than Yummy Ice Cream Company. Page 26 of 37

 Due to fewer resources it is very difficult to give awareness of Yummy Ice Cream to the customers. If the company will do all this perfectly then they can make a huge change and promotion.

Suggestions for Weaknesses and Threats: Firstly the company has to reduce its weaknesses and then move on to the threats .There are some suggestions or some positive or negative points to reduce the burden of weaknesses and threats. These ideas or suggestions are as under: 1. First of all the company has to create a brand and then focus on it by making advertisement more and more to get the best positioning level in the minds of the public. If company create a strong brand image then it is very easy to remove the weak points. 2. Secondly the company will have to make strong distribution channels. If the company does so then all the hurdles will be removed which supposed the cause of decrease in sales. For this purpose company will have to give margins by giving bonuses, Page 27 of 37

incentives, and gift hampers. The company will have to give some packages/schemes to the distributors. 3. The threats are that our competitors are strong. They have strong brand image. The company has to make the Quality level, Design, Packaging, and labeling of Yummy Ice Cream better than its competitors. If the company does so then it can easily get the best positioning level in the mind of customers. By following these three suggestions the company can easily remove the big problems that the company is facing.

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