4p's of Omore Ice Cream

Mohammad sheraz zahid

Huma QasimUbab AslamMunazza JabeenAysha Yasmeen

STUDENTS OF MBA BANKING

KARACHI UNIVERSITY BUSINESS SCHOOL

• Engro stands for “energy for growth”.

• Incorporated in 1965 as ‘Esso Pakistan Fertilizer Company’

• Name later changed to Exxon limited

• Exit of Exxon (75% stake) in 1991, the company experience an employee lead takeover.

• Engro Foods Limited was launched in May 2004

• Has two manufacturing sites, one in Sukkur and the other in Sahiwal.

• The Ice cream factory located at Sahiwal

•Engro Vopak Terminal Limited (EVTL)

•Engro Eximp Limited (EXIMP)

•Engro PowerGen Limited (EPGL)

•Engro Energy Limited (EEL)

•Engro Polymer & Chemicals Limited (EPCL)

•Avanceon Limited (EIAL)

• Omoré was launched in March and formally launched on April 6, 2009

• Lack of cold storage facilities and proximity of factory were reason for slow start.

• The ice cream was launched in eight cities and towns

• The brand had started with 24 different formats and flavors.

• In just a few weeks, Omoré had made sales of Rs10 million on volumes of 76,000 liters.

• With the launch of Omore, Engro has had its gross profit increase from 6917 million rupees in 2008 to 6931 million rupees in 2009

• Geographic:At the start the only market Omoré served was Lahore. After the year they expanded their business and entered in other cities as well. Omoré covers Punjabis cities more strongly because they are closer to its Sahiwal factory.

•Demographic:Omoré has Ice cream for nearly all demographic segments. Take away packs and tubs for Families, Ice-cones for teenagers and cups and ice-pops for children. They also include all income groups as well.

•Behavioral:Omoré is planning to be in among one of those Ice-cream companies who are offering diet Ice-cream for those people who have diabetes problem or are diet conscious .It is a large untapped market segment which they are planning to serve soon. In this segmentation, they choose occasional and benefit sought segmentation.

• Omore choose Differentiated Marketing Strategy (develop different marketing mix for different segments)

•Families

•Individuals (youth and adults)

•Children

•Omore’s Positioning strategy includes:

• Linked ice cream with joy and happiness so their tagline/slogan is “Art of Happiness”.

•OMORÉ Ice Cream is one of the few brands in Pakistan to manufacture pure dairy ice cream. (Which is its competitive adantage)

•Positioned as “More for Less” (providing more benefits for less prices)

•Offered 24 different packs and flavors, 3 of which is not offered by any one.

Benefits(olpers have an image of full cream milk which helps to build image of omore as “icecream enriched with milk”)

+ +Competitors

(Walls n many other local products still don’t have such image of producing dairy ice cream)

Vision(omore wants to build an image of being a “product” from “brand” which is the biggest achievement of a brand, whenever people think about icecream only “omore” comes on their mind)

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

2. Augmented product: provides ingredients and nutrition information on the packaging and contact information for comments and queries.

3. Quality: Premium ice cream rich in calcium which is fresh every time and meets hygienic and nutritious standards.

4. Product Name: Froze ice pops, Nutty/ Caramel Cones, Strawberry/Mango/Vanilla Affair, Kulfi, Lick A Flavor, Froze Cups

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

•Market penetration pricing (A new product pricing strategy to keep in view the competition)

•To capture the market, their pricing strategy is based on “Competition- based Pricing” , the price of its competitor (Walls) is more or less the same.

•Product line pricing classifies as:Frooze

(5- 10- 12- 15) RupeesRange of family packs

(150- 120- 105) Rupees Range of individual ice creams

(10-15-20-30) RupeesList 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-

1. Channels: Sells directly to the end user through retailers and shopkeepers. This is the trend in Pakistan followed by many FMCGs.

2. Coverage: Omore ice cream for the time being is only available in limited areas on Punjab, but now it is available in many cities.

3. 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.

4. Locations:  Available at large/medium sized and small bakeries, grocery stores and pharmacies in many cities.

5. Sell their products directly to consumers using cycles and their own personnel.

• 360° MARKETING TECHNIQUES :

• BROADCAST MEDIA o Ads on televisions.o Radio adso Internet ( social networking FACEBOOK)

• PRINT MEDIAo Vehicle Advertisingo Outdoor billboardso Point of Sale Displays

• Advertisements are mostly colorful reminiscent to their ice cream packaging.

•When Omor ice cream was initially launched they adopted a rather unique way of advertising. Flyers were thrown in different housing communities using airplanes.

•Promotion mix strategy: push strategy (trying to replace Walls deep freezers with omore by offering incentives to retailers)

•Omore sponsor cooking shows.

•Also run Co-Branding Promotion Campaign with Shell. (Come to shell and enjoy free omore)

•Public Relations•Omore Basant Event, Lahore•Concerts •Sea view festival in Karachi at launch

Omore was launched in Karachi, continuing its geographical expansions towards achieving a higher market share.

At present its market share is approx 18%.