Professional Documents
Culture Documents
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LETTER OF TRANSMITTAL
Respected Sir!
Thanks.
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Acknowledgement
We all are very thankful to our respected course instructor Mrs. Sadia
who had assigned us this valuable project. It is our worthy instructor’s
kindness that we are at this level of knowledge. And under her supervision,
now we feel that we know the marketing management very well.
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Dedication
We dedicate our project to our
Parents
whoes support and guidence made us what we are today.
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Table of contents
Executive summary 7
History of ice –cream 8
Why ice –cream is so popular 9
Ice-cream mix general composition 10
History of the company 11
History of the product 12
Current marketing situation 13
Competitors analysis 14
SWOT analysis 15
Objectives of Walls 17
Segmentation 18
Target market 21
Marketing information system 24
Marketing mix strategies 26
Four P’s of Walls 32
Product 32
Pricing 34
Placement 37
Promotion 38
Recommendations 42
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EXECTIVE SUMMERY
For this purpose we collect the data from 60 tourists and developed 6
hypothesis for making analysis. We have applied different distributions to
tests the hypothesis like Z test, T test and chi-square.
In the end we have identified problems and also give their solutions for the
purpose that more and more tourists attract in Pakistan.
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HISTORY OF ICE CREAM
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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WHY ICE CREAM IS POPULAR?
Ice cream contains most of our favorite flavors. What do chocolate, potato
chips and ice cream all have in common? They all contain high proportions of
fat. Fat tastes good. That's why we all like those foods. Another favorite is
sugar. Again ice cream has a high level of sugar. The addition of fruit or
confectionery (chocolate, caramel. Etc) makes ice cream irresistible. The
temperature that ice cream is consumed at makes it a pleasurable treat during
the warmer months of the year. Ice cream also contains a portion of air. The
air provides a softer texture making the product more pleasant to eat. The air
in the ice cream also carries the flavors to the nose to enhance the taste
sensation.
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ICE-CREAM MIX GERNERAL COMPPOSITION
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
After the independence of Pakistan, Lever Brothers with name the of Lever
Brother Pakistan Ltd. Started its business in Pakistan 1949. First product they
manufactured in Pakistan was sunlight Washing Soap. They started
manufacturing Edible Oil in Rahim Yar Khan in 1952 and soon started
manufacturing of Lux after tow years.
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.
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HISTORY OF PRODUCT
Lever Brothers Pakistan limited brought Wall's ice cream to Pakistan in 1995.
The instant success of Wall's and clear consumer preference for the brand
proved the willingness of the Pakistan market to support high quality,
hygienic, innovative product. Keeping in view the strategy, Wall's Launched
five new products at the start of the 1997 ice cream season, namely Cornetto
Mango, Feast Kulfa, Split Strawberry, Mini milk sammar and Solo Cola.
These products have not only fuelled volume growth but also helped in
maintaining and stimulating consumer interest. Moreover, the drive of
volume growth continued through geographical expansion with the addition
of new concessionaires and satellite towns.
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CURRENT 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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Competetors 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
Swot analysis enables the marketer or the business manager to exactly locate
1. What strengths or strong points his product has and on which he can
capitalise and earn more market share.
2. What weakness or weak points are they in his product or in the
external environment, which he could avoid and on which he should
work on and try to improve.
3. Which kinds of opportunities are there available for him, so that he
could cash on those opportunities?
4. And most importantly the threats that are faced by the company or the
product in the external environment in shape of the competitors and
other factors.
The fact that there are number of competitors in the market of ice cream and
there is going to be a lot of competition between the different products,
analysing the external environment becomes even more important. Following
this scenario where there is competition right from direct competition to
generic competition, Swot analysis becomes a key to success.
STRENGTH
Financially Strong.
Wide distribution, due to establish distribution channels.
High Quality
Good image in the mind of Customer.
Aggressive Promotion scheme's.
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WEAKNESSES
OPPORTUNITIES
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
Hico is also new comer, but rapidly increase in their Market share is a big
threat for Wall's.
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OBJECTIVES OF WALL'S
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SEGMENTATION
Walls market Segmentation, Targeting and Product Positioning Process
The market
Segments
(A, B, C, D, E, F)
Market targeted
(A, E, F)
Product Positioning
Each target segment
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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:-
DEMOGRAPHIC 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:
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TARGET MARKET
Wall's have been introduce different verities with different pricing of which
some of are has high price that can only attract high income group and wall's
has also different brands with low price which can be easily purchase by low
income groups.
Wall's is easily available in urban and rural areas all over the country.
Wall's has been targeted every segment and we can say that wall's has a
Fragmented market.
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POSITIONING THE PRODUCT
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 Pakistan economy.
High Price
Brand A
Brand C
Brand B
Low Quality
High Quality
Brand D
Brand E
Low Price
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Market Attractiveness
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
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Marketing Information System
Walls uses many a system to accumulate information it needs to make all
decisions. It has a continuous flow system of information to keep abreast with
any change in the environment. Steps are taken to ensure that right
information reaches right person at the right time. This is done by developing
a special system of information inflow. In this regard, the functional
departments have been divided into information accumulation centers. All the
information coming in is accumulated in the main information center. Here it
is evaluated as being relevant and reliable. From here, it is sent to the specific
information center where this information is needed and which the
information is relevant to.
Internal Records
The company keeps an internal record for information regarding fact and
figures for more than 10 years. These internal records are very important
while making a decision. Strategic changes over the last ten years and their
resulting impact on the performance of the firm helps make new strategic
changes. Sales figures for a specific season during the last two or three years
help forecast sales for the next period. Another benefit of internal records is
that they can be accessed very quickly and their cost is very low as compared
to other sources of collecting information.
Marketing Intelligence
The everyday information about the development in the marketing
environment is called marketing intelligence. This may include information
about the everyday aspect of market, concerning current market share,
competitors strategy or some new law been enacted. There are many a sources
we see at Walls that are used to collect information. Apart from the internal
records that keep track of the past, new information is collected through
company's own personnel, i.e. executives, product managers and general
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employees. For this an open-door policy is followed at Walls to ensure timely
arrival of any related information. This not only helps collect information but
also helps keep employee morale high.
Sampling
Sampling is there when managers draw conclusion about large group of
consumers by looking at a small proportion of total consumer population. At
Walls sampling is done through sales force. Daily information coming from
sales body is used to induct or to draw conclusion about changing consumer
taste. This is done by evaluating the daily performance of each brand as sold
by the sales force. Feedback is generally given to sales people who come up
with ideas about the changing preferences. Correct information is then
directed to the information center from where it goes to the specific person.
Marketing Research
Marketing research at Walls is very organized. They have a reseach
department which condiuct research whenever they launch a new product.
Their r & d depatment analyze the marketing conditions for them. Apart from
this research which is conducted when a new product is about to launch,
research to get information about the general changes in trends, economic
conditions, etc. time-to-time research is also get done through these research
companies. Another important issue is the timely arrival of this information.
Since the continuous changes in the environment may lead to a decline, timely
and accurate information regarding these changes is important.
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MARKETING
MIX
STRATEGIES
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PRODUCT
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
Mangum Mango
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 has introduce a lot of brands with different flavors, the customers has
so many options to select the brand according to their taste. This creates a
good image in the mind of the customer which resulting the customer loyalty
about the Product.
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Product Differentiation
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
Walls have different brand ice cream that provides excellent performance of
various attributes as taste, quality, and nutrition. On the other hand Wall’s has
emphasis aggressively promoted a different quality Dimensions.
DURABILITY
(Related attributes of ice cream)
CONFORMANCE TO SPECFICATION
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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:
Wide variety of features both standard and optional to offset this shortcoming
on some of the other quality Dimensions.
Reliability
The reliability quality Dimensions of Walls ice cream refer to the consistency
of performance form purchase to purchase or to a product’s up time that it
perform satisfactorily over its life. Walls maintain a competitive advantage
based on reliability by deign product with several attribute, due to this reason
walls ice cream maintain a strong position in Market segment consisting of
large scale ice cream user.
Serviceability
The many of this quality diminution can be difficult for customer to evaluate
particularly for consumer product. As a result consumer often generalize form
quality Dimensions that are move visual or qualitative.
A fit and finish Dimension helps convince consumer that a product is of high
quality. They tend to perceive attractive and well design as generally high
quality.
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The promotional activities of Walls that sustain that reputation are strongly
influence the consumer perception of a product’s quality in pursuing a
differentiation or cues the customer use to judge quality and to pay attention
to the seemingly less important but move visible attribute features of product.
Due this quality Dimension Walls become a market leader and enjoying high
profit rate.
Product life cycles that can have a direct bearing on a company's survival. The
life cycle of a product can be divided in to four stages, which are as under:
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.
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
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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
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
After maturity stage the product start to decline, It is very important stage for
the product to survive in the market. The company should take steps to add
new features in their existing product.
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POSITION OF WALL'S IN PRODUCT LIFE CYCLE
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.
1.Product
A product consists of any good or service that can be offered to the market to
satisfy a need or want .
In case of Walls, the products are the ice creams produced by the company.
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convenience products, as they require minimum search effort and little
planning. They are widely available and within the category of convenience
products, they come under Impulse Products.
Product Design may also be considered in case of Walls. Walls should alter
the style of a few of its product lines in order to attract more attention.
Brand Name
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.
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2. Pricing
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.
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Product Line Pricing
Setting the price steps between various production in product line, based on
cost difference between the production, consumer evaluation of features, and
competitor's prices.
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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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 for a long period of time because after some time competitor
arrives in the market and competition among them start.
Penetration Pricing
• 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
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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.
3. Placement
Walls also wants to get its ice creams available on the shelves of the millions
of retailers all over the country and in turn in the hands of the consumers. So it
uses distributors who can cater to the size of Walls and its consumer base.
These distributors make the ice creams made by Walls available to the final
consumers.
In actual there are 280 distributors other than SPDs. These distributors break
up the large consumer base into regions and territories that they cover.
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4. Promotion
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.
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• 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 and coordinate
personal selling. Include in sales promotion are such activities as contests for
sales people and consumer, trade shows, in store displays, samples, premiums,
and coupons.
• 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.
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5. Packaging
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,
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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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RECOMMENDATIONS
In the end we are going to give some recommendation to Wall's that how can
they increase their sales and gain maximum profit.
• 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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