Walls

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GROUP MEMBERS:

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ContentsAcknowledgement..................................................................................................................4

Introduction of Company.........................................................................................................4

History of Corporate................................................................................................................6

MISSION STATEMENT..............................................................................................................7

Adding vitality to life...............................................................................................................7

Walls guaranteed Halal - Statement........................................................................................8

Innovations..........................................................................................................................8

Company`s orientation towards launching Cornetto................................................................9

Ingredients..............................................................................................................................9

GOODS CLASSIFICATION........................................................................................................10

OBJECTIVES OF WALL'S..........................................................................................................11

Target market:.......................................................................................................................11

Market Attractiveness...........................................................................................................11

Product life cycle:..................................................................................................................12

Stages of Product Life Cycle:...............................................................................................13

Changing the Marketing Mix:.................................................................................................15

Position of walls (Cornetto) in PLC’ stage:...........................................................................16

Strategies of Product Life Cycle:.............................................................................................17

4P’s OF CORNETTO:...............................................................................................................18

Pricing :.................................................................................................................................19

Pricing strategies...................................................................................................................19

PRICING STRATEGY................................................................................................................20

Placement.............................................................................................................................21

Promotion.............................................................................................................................21

Promotional mix....................................................................................................................22

1. Promotional Objectives.....................................................................................................24

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Promotional Tools.................................................................................................................25

1. ADVERTISEMENT:........................................................................................................25

2. SALES PROMOTION........................................................................................................26

3. Public Relations..............................................................................................................27

Packaging..............................................................................................................................27

DISTRIBUTION CHANNEL.......................................................................................................28

DISTRIBUTION STRATEGIES....................................................................................................30

Marketing Environment.........................................................................................................31

CHARACTERISTICS OF THE MARKET.......................................................................................31

Micro Environment:........................................................................................................31

Market Segmentation............................................................................................................33

Macro Environment:.......................................................................................................33

MAKET SEGMENTATION PROCESS.........................................................................................34

Market Targeting Process......................................................................................................37

Product development process of eight steps.........................................................................37

Internal sources.................................................................................................................38

External sources:................................................................................................................38

Idea screening:...................................................................................................................38

Concept development and testing:-....................................................................................39

Concept testing:.................................................................................................................39

Product development.........................................................................................................40

Commercialization:............................................................................................................40

Product position.................................................................................................................41

SWOT ANALYSIS....................................................................................................................41

Marketing Department (sales force)......................................................................................43

Hierarchy of Marketing Department (sales force)..................................................................44

INTERVIEW QUESTIONS.........................................................................................................45

Survey questionnaire:............................................................................................................48REFERENCES...................................................................................................................................53

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AcknowledgementAll praises to ALLAH Almighty who has blessed us with knowledge to accomplish the task of completing this project. This project has given us a chance to observe the practical work of an organization closely and the condition of the market. Finally this project has enhanced our analyzing power and sense of observation. We all are very thankful to our respected course instructor 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. Our word of thanks goes to Mr. (Marketing Manager Walls) for the manuscript he provided and his assistance over the entire period of the operation of this project. We would like to acknowledge and show our deep gratitude to following persons who helps us to accomplish our task

Introduction of Company

Unilever Pakistan (70.4% Unilever equity) is the largest FMCG (Fast Moving Consumer Goods)

Company in Pakistan, as well as one of the largest multinationals operating in the country. The

company manufactures and markets home and personal care product, beverages, ice cream and

spreads. Some of its brands are Supreme Tea, Clear Shampoo, Close Up, Comfort ,Fair &

Lovely , Lipton Supreme Tea, Lifebuoy soap & shampoo, Lipton, Lux, Surf Excel, Wall’s,

Wheel, Lipton, Sunsilk, Surf (detergent), Knorr, Rexona, Kissan, Lipton Ice Tea.

Unilever is the world’s largest manufacturer of ice cream which in fact holds almost 18% of the

global market share. And the brand is known as Wall`s ice cream. In Pakistan the Heart brand is

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called Wall’s and it is one of the most active players in the market and is striving to offer lighter,

healthier products as well as providing old favorites, hence catering to a variety of diverse tastes.

Wall’s is a trusted ice cream and frozen desserts brand in Pakistan. It is ranked as # 24 in

Newsweek’s list of Asia’s top brands, the largest player in the Pakistan ice cream market and

holds the lion’s share of the market. All Wall’s products are halal and are made with halal

ingredients in a halal compliant manner.

In 1994 Lever Brothers Pakistan tried to acquire Polka Ice Cream for Rs 600 million. Polka

refused the bid, demanding instead Rs 1 billion. One year after the launch of Wall's Ice Cream by

Lever Brothers in 1996, Polka approached Wall's with an offer to merge the two companies. So

they merged in 1996 and now it is called Wall's not Polka.

The Wall’s factory is located on Multan Road in Lahore and is fully equipped with a state of the

art innovation pilot plant. This makes Pakistan one of the few countries in the region to have

their own innovation pilot plant – making it possible for Wall’s to launch exciting new products

every year.

Wall`s’ products are sold in more than 40 countries. Wall’s operates under different names in

different markets (Wall's in the UK and most parts of Asia, Algida in Italy, Langnese in

Germany, Kibon in Brazil, and Ola in the Netherlands).

Wall`s has a wide range of ice cream products which include, Wall`s classic tubs, Wall`s cartons,

Wall`s Cornetto, Wall`s magnum, Wall`s moo, Wall`s rocket, Wall`s spin, Wall`s twister and

many more.

The Food industry can first of all be segmented into two groups’ readymade food and

unready food which is found in the restaurants. In readymade food we have the segment of

cool desserts industry which is named as ice-cream industry. The walls Ice-cream factory is

highly technological and they are using state of the art machinery which makes it as the

leading ice-cream producer of Pakistan

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History of CorporateThe history of Unilever dates back to 1885. William Hesketh Lever established a soap

manufacturing company in UK with his brothers and named the company lever brothers in 1885.

Their product, Sunlight, the world`s first packaged soap, was very successful. Fifteen years after

the product`s launch in the UK, Lever brothers started selling the soap in Europe, Australia,

South Africa and United States. As the company needed a large quantity of vegetable oil to

produce soap, it established plantations and trading companies throughout the world to source

raw materials and to distribute its products.

Two butter-makers, Jurgens and Van Den Berghs, formed margarine union in 1927. The Dutch

margarine union merged with Lever brothers of United Kingdom in 1929 to form Unilever. For

tax purposes, two separate entities were established, one in London and another in Rotterdam.

While Unilever lost out to Procter and gamble in United States, it continued to enjoy success

with its products in the rest of the world. Unilever has continued to diversify acquired twenty-

seven businesses around the worldwide. These have contributed to the expansion of the

company`s products and services. Unilever is now a global leader in the area of personal care,

home care, margarine, tea-based beverages and ice-cream products.

The reason for introducing Cornetto in industry

Our major focus of this project is the ice cream Cornetto. The idea of selling frozen ice-cream

cones had long been a dream of ice-cream makers, but it was not until 1959 that Spica, an Italian

ice-cream manufacturer based in Naples conquered the problem of the ice-cream making the

cone go soaked and soft. Spica invented a process, whereby the inside of the cone was coated

from the ice-cream by a layer of oil, sugar and chocolate. Spica registered the name Cornetto in

1960. . They made a big impression on the Unilever employees when they visited Spica in 1962.

The company was actually acquired by Unilever soon afterwards. Initial sales were poor but after

when Unilever bought out Spica in 1976, they began mass-marketing campaign throughout

Europe which increased sales.

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Cornetto made a number of appearances in all over UK in the 1960s and 1970s but it was during

a heat wave in summer of 1976 that it really took off. Advertising campaigns had major hand in

that. In 2004 the Cornetto team presented the Cornetto Love Potions, a limited edition range of

six exotic cones in very exciting flavors combinations such as Tiramisu & Cinnamon,

Cappuccino & Irish Cream and also Choc chip & Hazelnut. In 2007 the Cornetto Chocolate

recipe got even better. It contains a delicious chocolate ice cream topped with caramelized

almond and chocolate pieces in a crispy baked wafer. And in 2009 Cornetto Love ice creams

were launched. Cornetto Love Chocolate combines milk, dark and white chocolate ice creams in

a chocolate wafer cone topped with triple chocolate curls. Cornetto Love Disc offers smooth

vanilla ice cream with a rich caramel core, topped with a chocolate disc with cashew nut pieces.

Cornetto is available in nine varieties, Strawberry, Classico, Love Chocolate, Love Disc and

Cornetto Minis, etc

Cornetto in Pakistan was launched in 15 September, 1994 with the tag line Love in every bite.

MISSION STATEMENT

The current statement that LBPL is following is as follow:

“Lever brothers will be the foremost consumer product company in Pakistan with care, skin, ice cream and spread. Already positioned in tea, hair, dental and household care, substantially profitable position in cooking oils and fats our strengths come from our people and from combining the best of our international as well as Pakistan origin. Our commitment is to continuously care for the need of our customers, consumers, employees, suppliers, share holders and the community in which we live.”

As one of Unilever’s leading brands, it has always been Wall’s mission to add vitality to your life – while being responsible about good nutrition.

Adding vitality to life

That’s why we’re constantly adjusting our range to keep up with changing needs. Calcium enriched products are available to add nutrition and health benefits for kids and adults, smaller sizes for smaller appetites and old favourites for those nostalgia lovers - there’s something for everyone. 

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Walls guaranteed Halal - Statement

All Wall’s ice creams produced by Unilever Pakistan are guaranteed “Halal”

Unilever is the biggest branded ice cream manufacturer around the world, selling millions of ice creams every day in more than 40 countries. Ice creams produced by Unilever vary from country to country, since recipes are tailored to domestic demand, based on taste, legal and religious requirements. We therefore do not necessarily use the same ingredients everywhere.

Unilever Pakistan guarantees that all Wall’s ice creams produced and marketed by it in Pakistan are in total conformance with the requirements of Halal products and are perfectly safe for consumption by Muslims. All elements in the products, including raw materials, trace ingredients; packaging and production processes used in our factory strictly conform to local legislation, religious and cultural requirements. We are very conscious about the need in particular to ensure strict compliance with Halal guidelines. A “Halal” mark is printed on all wrappers in confirmation of this.

Unilever has been operating in Pakistan for 60 years. Over this period, our brands in Home Care, Personal Care, Foods, Beverages and Ice Cream have become market leaders. Millions of people use them daily because they conform to the highest standards and provide value for money. As a multinational multi local company, we are committed to adding vitality to consumers and the community in a responsible and locally appropriate manner.

Innovations

The Wall’s factory is located on Multan Road in Lahore and is fully equipped with a state of the art innovation pilot plant. This makes Pakistan one of the few countries in the region to have their own innovation pilot plant – making it possible for Wall’s to launch exciting new products every year.

Key facts about Wall’s:

Wall’s is the largest player in the Pakistan ice cream market and holds the lion’s share of the market

All Wall’s products are halal and are made with halal ingredients in a halal compliant manner

Company`s orientation towards launching Cornetto

Cornetto was a product-oriented launch. That is the company

introduced an innovative idea for ice-cream that is in cones and also

focused on the quality of the product rather than just trying to sell the

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product through lots of promotions and tries to maximize profits. The product has innovative

features.

Ingredients

Ice cream is made from ice (water), milk, fat sugar and natural flavors’ and colours. All of these ingredients are necessary for you in your diet to lead an active lifestyle. From these ingredients you get protein that helps build body tissue, carbohydrates and fats which give you energy and essential vitamins and minerals like calcium that help to strengthen bones and teeth.

Ice cream is the only food you eat frozen and offers a unique sensory experience  The average number of licks to finish off a single ice pop is 50  Every year all around the world, Walls sells enough Magnum ice creams around the

world four and a half times.  Launched in 1995 Cornetto is the number one selling hand-held cone in Pakistan

today.          

In 1993 Lever Brothers formulated a team to search for new business potential in Pakistan. The team concluded that there is a lot of potential in ice-cream market in Pakistan and Lever Brother should enter the ice-cream market without any hesitation and so they decided to launch WALL’S Ice cream in Pakistan. WALL’S is an SBU of Lever Brother--the biggest ice cream manufacturers in the world. And second to it is Nestle The WALL’S wanted to enter Pakistani Market through acquisition strategy; it wanted to acquire Polka to minimize the time it needed to capture the market. But initially Polka demanded very high price for their company. So WALL’S established an ice cream factory in Pakistan within eleven months which is a record time. And in February 1995, WALL’S launched with twelve products. After the launching of WALL’S it gave tremendous services and Polka loosed its market share by a huge extent. At this time Polka tried to sell itself to WALL’S but now WALL’S had done all the hard work which they initially did not want to do by acquiring Polka, so they were not ready to buy Polka. But Polka spread a rumor that Nestle is coming through Polka which obviously WALL’S did not want, so they purchased Polka in 1997. This acquisition made WALL’S an unchallenged market Leader and it also emerged as the “Impulse brand” with new level of excellence in take-home or desert ice cream.

WALL’S was launched firstly in Lahore in 1995 and later year in Karachi and Islamabad. In 1996, it was launched in Faisalabad and in 1997 it was launched in Multan, Quetta, Hyderabad, Peshawar and Euchar as well. After the acquisition, Polka became a brand under WALL’S. The strong of Polka were continued and weaker were dropped.

The Heart was launched in 1997 to unite Unilever's ice cream businesses and brands, and has grown to become the most-recognized logo in the world of ice cream. In 2003, we announced the next step in building the world's most powerful ice cream brand, re-launching the Heart as symbol of the serious fun of ice cream.

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GOODS CLASSIFICATION

WALL’S ice cream comes under the foods and beverages part of the Unilever chain. WALL’S ice creams are consumer, nondurable, convenience, packaged goods. WALL’S has a variety of products, ranging from low priced desserts like Rainbow to premium priced desserts like Cornetto and Magnum.

Raw materials: Contract SuppliersProduction Unit: One Unit at Manga Mandi Production Capacity: 10,000 Liters / day

PERISHIBILITY· Required Temp: -18°C.· Life time (Out of freezer): 25 min.· Expiry: 10 months.

PACKING· Packaging: Multiple packaging· Small packs:

• Sticks• Cones• Cups

· Take home packs:• ½ liter packs• 1 liter packs• Tubs

· Bulk packs: 10 liter packs Wall's Classic tubs Wall's cartons Wall's Cornetto Wall's Magnum Wall's Moo Wall's Rocket Wall's Spin Wall's Twister Depicting the life style of its potential user.

OBJECTIVES OF WALL'SThe objective of wall's as under: -

To defend current Mkt. Share Sale Growth. Customer satisfaction. Continue product modification and improvement effort to increase customer benefit and

reduce cost. Expand production capacity in advance of increasing demand to avoid stakeout.

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Develop a multiple line extension offering targeted to the need of several users segment in the market.

Meet and beat lower prices or heavier promotional efforts by competitors. Increase satisfaction, loyalty, and repurchase among current customers by building on

existing strengths apple to late adopters with same attribute and same benefit offered to early adopters.

Target market:It is the process of evaluating each market segments attractiveness and selecting one or more segments to enter. Sometimes companies are able to target, because they are financially strong and they can arrange a vast product line.

Walls is easily available in urban and rural areas all over the country. Walls has been targeted every segment and we can say that wall’s has a Fragmented market.

Market AttractivenessWall 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 Attractiveness Factors Market

Size Growth including stage in product life cycle Differentiation possibilities Bargaining power of customers Cyclicality and Seasonality Distribution

Economic and technological

Investment intensity Industry capacity Technology Barriers to entry and exit Access to supplies

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Competitive

Competitive structure Competitive groupings Substitute products Price Individual competitor analysis

Product life cycle:

Introduction of Product Life Cycle:

All products possess ‘life cycles.’ A product's life cycle, abbreviated PLC, the life cycle refers to

the period from the product’s first launch into the market until its final withdrawal and it is split

up in phases. Since an increase in profits is the major goal of a company that introduces a

product into a market, the product’s life cycle management is very important. The understanding

of a product’s life cycle, can help a company to understand and realize when it is time to

introduce and withdraw a product from a market, its position in the market compared to

competitors, and the product’s success or failure.

The product’s life cycle - period usually consists of five major steps : Product Development,

Introduction Stage, Growth Stage, Maturity Stage and finally Decline Stage. These phases exist

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and are applicable to all products or services from a certain make of automobile to a

multimillion-dollar lithography tool to a one-cent capacitor. These phases can be split up into

smaller ones depending on the product and must be considered when a new product is to be

introduced into a market since they dictate the product’s sales performance.

Stages of Product Life Cycle:

Product Development:

Product development phase begins when a company finds and develops a new product idea. This

involves translating various pieces of information and incorporating them into a new product. A

product is usually undergoing several changes involving a lot of money and time during

development, before it is exposed to target customers via test markets. Those products that

survive the test market are then introduced into a real marketplace and the introduction phase of

the product begins. We now make the product do something it did not do in the past. This is a

more significant product modification.

Introduction Stage:

The introduction phase of a product includes the product launch with its requirements to getting

it launch in such a way so that it will have maximum impact at the moment of sale.

This period can be described as a money sinkhole. Large expenditure on promotion and

advertising is common, and quick but costly service requirements are introduced. A company

must be prepared to spend a lot of money and get only a small proportion of that back. In this

phase distribution arrangements are introduced. Having the product in every counter is very

important and is regarded as an impossible challenge. Some companies avoid this stress by

Hiring external contractors or outsourcing the entire distribution arrangement. This has the

benefit of testing an important marketing tool such as outsourcing

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The introduction stage has more recently been termed the product development process. Rapid

change, increasing competition, complexity, organizational stress and high customer

expectations have combined to support a process for reducing product development time. With

time as a critical factor in today’s market, speed to market can create a competitive advantage.

Instead of being viewed as a single stage, the introductory stage has become the product

development process with as many as seven different parts..

Growth Stage:

The growth stage is where the rising tide of consumer interest lifts the boats of all participants. If

there were no competitors in the introduction stage, they are now a factor. Consequently,

additional product features and support may be needed. Prices are steady to declining, as every

participant in the industry is focused on market share and becoming the low-cost producer. Costs

are declining with increasing volumes, and profits are improving. Distribution is increasing as

well. Competitors are attracted to enter the market.

The marketing mix includes the four Ps: product, price, place (distribution) and promotion.

During the growth stage place becomes a hot bed of activity. Frequently this involves – or will in

the maturity stage – changes to product, price and promotion. The product may need

modifications for new markets with different packaging, warranty and service requirements.

Price may come into play not just as list price but in discounts, financing, terms and other

options. Promotion activities such as advertising and public relations will change as new

channels of distribution are entered and need to be supported.

Wall’s Ice Cream growth was an outstanding 40%, achieved through an exciting stream of

innovations, aggressive market penetration, 360 Degree Communication (TV Commercials,

Outdoor, Print and Visibility activation) and constant attention to consumer affordability.

During the year, 25 new products were launched; some examples are: Kulfi, Moo, Super

Twin, Magnum Caramel & Nuts Bar, Cornetto Super relaunch, In Home premium range,

Cornetto Junior, Magnum premium range and Donut.

Maturity Stage:

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The market maturity stage occurs when the market has become saturated. Sales growth rate tends

to decrease. Efforts are focused on differentiation of the product. Pricing may be lower because

of increased competition. More internal pressure is placed on reducing costs. Margins begin to

shrink as marginal competitors are forced out of the market. Distribution is maxed, and

promotions come into play as a way to encourage preference over competing products.

Decline Stage:

The decision for withdrawing a product seems to be a complex task and there a lot of issues to be

resolved before with decide to move it out of the market. Dilemmas such as maintenance, spare

part availability, service competitions reaction in filling the market gap are some issues that

increase the complexity of the decision process to withdraw a product from the market. Often

companies retain a high price policy for the declining products that increase the profit margin

and gradually discourage the “few” loyal remaining customers from buying it. Such an example

is telegraph submission over facsimile or email. Dr. M. Avlonitis from the Economic University

consideration all the attributes and the subsequences of product withdrawal process.

Changing the Marketing Mix:

Premiums & Gifts: Premiums and gifts are excellent tools for inducing initial trial, brand

switching, and repeat purchases.

Coupons : Coupons are a type of sales promotion and can be even more effective than gifts or

premiums for generating added sales for brands . If you are a "coupon clipper," you are are

considered to be in a" coupon-elastic" market segment.

Entertaining Advertising : Probably one of the best things that you can do at any stage of the

product life cycle is to have entertaining advertisements that attract and hold people's attention.

Many people watch TV for the entertaining commercials. 

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Position of walls (Cornetto) in PLC’ stage:It is standing on the maturity stage with 65% of total market share. To stay competitive in the

market it needs to introduce time to time new offers and flavors and different promotional

schemes.

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Strategies of Product Life Cycle:

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4P’s OF CORNETTO:

Product:

A product consists of any good and service that can be offered to the market to satisfy a need or want.

In the case of Cornetto, the product is the ice cream production by the company.

Core Product: Ice cream, as a desert after meal.

Actual product: The high quality level, different tastes, flavours, packaging and the heart shape icon.

Augmented product: provide tastes and hyginene as well as nutritional ingredients.

Ice cream may generally be categorized as convienent product, product which consumers buy frequently, immedietely and with minimum of comparison and buying effort. Although in case of the Pakistani ice cream market, consumers do give preferences to certain brands and compare quality from one brand to another, yet we would still consider ice cream to be 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. Applying the concept of Product Quality, it is essential for Walls to pursue Strategic Quality, gaining an edge over the competitors by consistently monitoring consumers’ changing needs and wants and delivering better quality and satisfaction through improved 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

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.

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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.

Price Adjustment Strategies

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 PricingMarket-Penetration PricingSkimming 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.

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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 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.

PRICING STRATEGY

What was the pricing strategy used, and what was the objective of using this strategy?

As Cornetto is targeting middle and upper-middle class youth, the price of Cornetto is not that

high. They are targeting the same classes in all the places of Pakistan.

Initially, when Wall`s entered the market, they had to introduce products other than the existing

companies and had to set their place at a normal range so that it was affordable for people to buy.

Wall`s set a specific price which was not too low nor too high because people might have

thought the quality is not good that’s why the price is low or its very expensive. They had to

consider their variable cost, fixed cost n then decide the price.

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Wall`s wanted to capture the market so they didn’t wanted to do anything which reduced their

customers. The objective of the pricing strategy was that they wanted to get more customers and

retain the existing customers.

For Cornetto, Wall`s used product line strategy that a specific price was set for Cornetto. They

give incentives to the retailers those are at picnic spots because they know a lot of people will go

and have ice cream.

PlacementWall'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. 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. Here Walls uses “Indirect Marketing Channels”, that is it has intermediaries (distributors) between the company itself and the retailers who in turn provide their products 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.

Promotion IntroductionThe 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.

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“Our aim is to spark the taste and feeling of summer in everyone’s day. Life is there to be enjoyed and we are the fun part of vitality. We constantly provide new products and experiences

that excite the senses and inspire people of all ages to 'taste the fun side of life”---------Promotion Statement.

For any company to capture the market of its own wish and target, promotion plays the most important role in fulfilling the quest for market share. Although the process of promotion is very complex and can be looked in detail:

Ice Cream makes you happy – its official!

Wall’s carried out scientific research which shows that ice cream actually makes you happy. The study was carried out using FMRI brain scanners, and showed that eating Wall’s had an immediate effect on the part of the brain that is activated when someone is really enjoying themselves – the please areas.

So we now have scientific evidence to prove what we all already knew, that ice cream really does make you happy!

Promotional mixCornetto being a product of FMCG is being marketed by Walls mainly through

advertisements on television. The advertising strategy has been changed over the recent years

for Cornetto. In the beginning Cornetto advertising was done to give the consumers an idea of

the major ingredients used in making it like cream, nuts, chocolate and cone. But this strategy of

ingredient awareness in Pakistan has now changed from an ingredient awareness strategy

towards a more emotional (relationship building) strategy. Now Cornetto advertisements are

catering to get attention of the youth particularly, through its couple relationship and love

building adds. Since the beginning Cornetto has been targeting the youth but now its

advertisements are more focused.

Not only is walls mass marketing Cornetto through commercials but "walls" is also

sponsoring different television programs. Walls has sponsored “Canteen Kahaani” in a way that

it turns out to be a publicity campaign more than a sponsorship. “Canteen kahaani” was on aired

from Ary digital. This form of advertising is impulsive in nature. The concept of “canteen

kahaani” was to target college going youngsters and to focus on the life of a boy who falls in

love with a girl. This concept of “canteen kahaani” provided a complete experience to the

viewers. Walls does not rely on billboards and radio for advertising because they believe that the

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more the consumers get to see their products, the more it will retain its position in the minds of

consumers. The managers at walls believe that once an individual passes by a billboard, within

45sec, he forgets what he saw. They also state that billboards are a relatively expensive medium

of advertisement which is incapable of capturing and retaining consumer attention over longer

durations.

In another attempt to capture the attention of the youth, walls sponsored a Pakistani bands

song namely, “Jal-the band”, and featured its lead singer Farhan Akhtar against bollywood

actress Amrita Rao. This strategy to capture the youth’s attention did tend to increase the youths

attention towards the product and promote it. Coming to print media, cornetto is being advertised

in Sunday and fashion magazines. On the other hand Cornett’s special sales promotions are

publicized in newspapers such as dawn and daily times.

Walls is using internet as a medium of advertisement as well. In order to capture the

youth it has launched its personal website by the name of http://www.cornetto.com.pk to

promote its flip-the-lid sales promotion. Similarly, by keeping in mind the increasing usage and

addiction of websites such as orkut and facebook, walls is promoting Cornetto along with other

items, by getting accounts and pages built for the company.

Walls is not using any form of personal selling for any of its products. Instead it is

heavily promoting its products on the basis of sales promotion tactics. Cornetto like other FMCG

products depends heavily on its Point-Of-Purchase outlets. According to the belief of one of the

managers at walls “our job is to lure the customer to the point of purchase. Once the customer is

there, begins our basic task, to attract him towards our P-O-P’s”. walls’ strategy of P-O-P’s

including positioning their freezers at a place where they can attract customer’s eye before

anything else. Walls uses its heart-shaped monograms on all its P-O-P freezers. These freezers

are distributed free of cost to all sales outlets. Walls prescribes the positioning of its Cornetto

items to be above all the rest situated at a place where it can catch the consumers eye at most,

because it is the largest selling brand of Walls. The positioning of ice-creams depends on their

profitability. Walls is also attracting customers by posters of its products like magnum and

Cornetto.

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Another sales promotion activity being used by walls Cornetto is flip-the-lid contest. Due

to the extreme success of it’s ‘love-add’ featuring Farhaan (the lead singer of JAL-THE BAND)

and Amrita Rao, walls decided on pairing the two further in their flip-the-lid contest. This

promotion was heavily marketed online via website http://www.cornetto.com.pk/

The basic theme of this contest was to encourage the customers to consume as many

cornettos as they can by giving them the incentives to win several items such as free credit,

mobile phones, tickets to jal concerts, have fan meetings with them on weekly basis. All the

consumers had to do was to flip the lid of their Cornetto cone, and text the pin code to the

desired number.

For strengthening itself in PR markets walls plans to capture consumer satisfaction by

holding events within and outside the company boundaries. Occasionally, walls invites samples

of people over for panel testing such as blind-testing and focus group testing. It also conducts

market surveys in order to keep in mind consumer preferences and perspectives.

1. Promotional Objectives

Promotional objectives of the WALL’s ice-cream are as follows

InformPersuade Remind

Companies inform the people when they don’t 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. WALL’S is not promoting its products individually because WALL’S believe that the high quality it is providing through its products are more than sufficient to prove its identity. We believe that now there is a need for WALL’S to promote its products separately as international competition is coming as well.

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2. Tasks

Selection of different promotional tools advertising and media schedules and what types of message are delivered to the target audience.

WALL’s uses Advertising and Sales Promotion.

3. Cost/Budget

Estimated budget of WALL’s of promotion is Rs.2.5 million (est.)

Promotional Tools

1. ADVERTISEMENT: WALL’S is creating awareness about its new products such as supper Cornetto, Carte DOR 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 and for that it is following AIDA model.

Awareness: The WALL’S uses print and electronic media plus the signboards initially just to create awareness and knowledge about its new product as these days it is giving a lot of ads of both of its newly launched product Super Cornetto.

Interest: As the public gets awareness of the produces of WALL’S the next step is to create interest among the target buyers about the product which is again done through advertisement.

Desire: The WALL’S 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. The WALL’S follows a sequential pattern through which it strengthens its newly launched products.

Or to put in another way, the concept can be very well understood with the help of the above given building blocks:

InformPersuade Remind

Companies inform the people when they don’t know about the product, persuasion takes place when people already know about the product and company forces them to buy the product and

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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. WALL’S is not promoting its products individually because WALL’S believe that the high quality it is providing through its products are more than sufficient to prove its identity. We believe that now there is a need for WALL’S to promote its products separately as international competition is coming as well.

The theme of advertisement varies with the product image and positioning. But walls follow the same theme internationally. The advertisements run on TV are made in foreign countries. The objectives of advertising are the three basic ones which include informing, persuading and reminding about different brands of walls.

WALL’S have used all sorts of mediums of mass communication and one to one bases. The mediums used in WALL’S promotional activities are:

· 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

2. SALES PROMOTION

WALL’S has been going a number of sales promotion activities like the:

Cycling System: WALL’S started its cycling system for awareness but after that its task was modified into doing sales promotions for the company. And also cycling system has proved excellent in terms of sales and promotion.

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- Discount Coupons:WALL’S launches very low price products for the purpose of both market expansion and sales promotion. Like Solo for Rs.2 and Liter pack for Rs.45 was also to boost sales.

Discounts and Offerings: Wall’s offered 5% discount in off-season.

3. Public Relations

For strengthening itself in relationship markets WALL’S is not only going for customer satisfaction but also stressing upon building strong public relations. For example, under the umbrella of Unilever, WALL’S has been trying to part in charity activities and also to stay in front in national and religion events. For instance events like Valentine’s Day. WALL’S uses such occasions to not only promote its sales but also to build strong public relationships through sponsoring events on this day. Moreover, it has recently started organizing colorful Fun Carnivals too, which is totally a family affair. This is just an instance WALL’S tries to gain maximum of such opportunities.

. CustomersPrice discountsQuantity discounts

. DistributorsShares 50% of the distributors' expensesOff season discounts: 5%

. RetailersFree freezers to retailersInvestment on each retailer: Rs. 22,000Free freezers’ maintenance

PackagingThe 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

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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.

Design and Colour

One way to satisfy customers and gain a competitive advantage is through skillful product design. In fact, a distinctive design may be the only feature that significantly differentiates a product. Many firms feel that there is considerable glamour and general promotional appeal in product design and designer's name. In the field of business products, engineering design has long been recognizing as extremely important. Today, there is a realization of he marketing value of appearance design as well. Color often is the determining factor in the consumer acceptance or rejection of a product.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.

DISTRIBUTION CHANNEL

Distribution channel consists of all the people and organizations, which are involved, in the physical distribution of goods. Selection of proper distribution channel is very important aspect because if the channel is managed efficiently. Companies can save high costs and thus generate profits. The cooperation of channel members is also of vital importance. Distribution is making the product available but this availability should ensure that product must be:

· At right place· At right time· In right condition

If there is any deficiency in any of these basic elements of distribution, the future of product would be uncertain. Distribution is such an activity, which could decide the fate of the product.

WALL’S has a Hybrid Distribution System. It reaches different customers through different systems. WALL’S is using two types of distribution channels, both are indirect channels.

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This is commonly used, in which the WALL’S factory send the products to the local distributors who supply the products to the retailer in the required quantity. The retailer then sells it to the customer. The specialty and effectiveness of this system is excellent.

The reason for such an excellent distribution system is the distribution policy. If a retailer wants to sell an ice cream, the investment he needs to do is as:

RetailerSecurity for

the freezers

Investment on

Ice cream products

Board for advertisement

Total investment required

Others 15000 12-15,000 3000 30,000

WALL’S Nil 12-15,000 Nil 15,000

That’s why most retailers are attracted to the WALL’S. Another important thing which needs to be discussed about the distribution is that during this distribution channel, the standard temperature of the cold chain is maintained.

PRODUCER

STOCK POINTER DEALER

RETAILER

(CYCLES)

CONSUMER

The second type of system was more a short term distribution system which has just for the introduction stage to actually made the product reach everywhere and the system was more of creating awareness than actual retailing purpose. But the cycle distribution system yielded excellent results in terms of sales and creating awareness about the products. Now the cycle contributes a big percentage of shares in the overall sale of the company. So this has now become a permanent distribution channel of WALL’S.

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PRODUCER DISTRIBUTOR RETAILER CONSUMER

30

One of the major reasons of early success and clean sweep given by walls is its availability, which is ensured through extensive distribution. There is not even a single city in the country where one cannot find a walls freezer or hear the sweet music of the trike (tricycles), which acts as a direct marketing for it. Thus, WALL’S has always tried its best to ensure the availability of the product as close to the customers as possible and WALL’S has been very successful in that.

DISTRIBUTION STRATEGIES

There are two main distribution strategies, which WALL’S has very effectively used.

1. In first strategy include incentives like free deep freezers, discounts on bulk purchases.

2. Advertising campaign that reminds and persuades customers to buy ice cream supports 2nd strategy, which is facilitated by price offs, which are frequently offered by the company.

What was the Distribution Strategy and how were the retailers or wholesalers role

determined?

Wall`s Cornetto is easily available everywhere which indicates that its distribution in

widespread. Wall`s provide their own deep freezer so that the ice cream doesn’t melt. Wall`s

gives a 18% margin to its retailers and distributors. Pakistan is divided in 3 sections. North

(Islamabad, Peshawar and Northern areas), Central (Lahore and Central Punjab), South (Sindh

and Baluchistan).

While deciding the distribution channels it is really important to see that what aspect will give us

less cost and high profits. The product should be launched on right time, at the right place and in

the right condition. It is very important otherwise the product may get destroyed and if the

launch is not on time then what’s the point of selling that product. Product distribution plays a

vital role in the products fate, because if the distribution is not correct or the placement is not at

the right place then there can be no sales means losses for the company.

Wall`s reaches different customers through different channels of distribution; that are producers,

distributor, retailer and consumer. Wall`s factory sends the product to the local distributors who

supply the product to the retailers. Then the retailers sell the product to the consumers. This is

the best way to sell the product.

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Wall`s gives incentive to the retailers by providing deep freezers so that the placement of the

product is easy for them and they don’t have issues in placing Wall`s ice cream. And secondly,

they give bulk discounts to the retailers and this attracts the retailers.

Wall`s does advertising campaigns so that they can remind and sustain their consumers to buy

ice cream. Like recently, they made an advertisement in which some stars were there. In a song

as well Wall`s Cornetto was advertised. So this is a way they advertise their product. Wall`s give

price cuts as well. This also attracts the customers.

Wall`s use intensive distribution strategy that is to distribute low priced or impulse purchase

products among which one is Cornetto.

Wall`s introduced a tricycle which goes door to door and sells ice creams with a soft music on,

which is a symbol of Wall`s.

Marketing Environment

CHARACTERISTICS OF THE MARKET

The marketing environment refers to all the forces outside the company that affects the

marketing management to build and maintain successful relationship with target customers. The

company must keep an eye on its changing environment. Wall’s Cornetto Company is constantly

making efforts to realign it with changing environment. There are two types of environments that

are taking place in Wall’s.

1. Micro environment2. Macro environment

These can be individually explained as below:

Micro Environment:The Micro Environments of the Wall’s Cornetto are:

The Company Supplier

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Market intermediaries Customer Competitor

The Company:

In marketing for Wall’s Cornetto, the company has to take other groups or departments of

company into account. Such as finance, research and development, purchasing, operation,

accounting department. So that it can market its product according to its resources and

environment.

Suppliers:

Suppliers form an important link in Wall’s overall customer value delivery system. They

provided the inputs to the company, e.g. cream, almonds and flavors. They have no dairy

farm of their own. So they buy all the cream from outsiders and their all flavors come

from other countries because they are most available in Pakistan.

Marketing Intermediaries:

Marketing intermediaries help the company to promote, sell and distribution its products

to final buyers. The marketing intermediaries of Wall’s include physical distribution

firms, whole seller and retailers. They also give franchises to tricycle distribution

companies and they further market their product. This is very favorable for the company

as it provides the product to consumer at the doorstep.

Customers:

The Wall’s Cornetto Company mainly focuses on customer market that consists of

individuals and households for their personal consumption.

Competitors:

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“ There are no major competitor of Wall’s Cornetto Nationwide presents but now the

Omore is going to be its majors competitor in the near future”, Mr. Kamran in his

interview.

Market Segmentation

Macro Environment:The Macro environments of the company are:

Demographic Environment

Economic Environment

Natural Environment

Political Environment

Demographic Environment:

Demography is the study of human population in terms of size, density, location, age, gender,

taste and other statistics. The WALL’S Cornetto Company mainly focuses on urban and

suburban areas of Southern zone of Pakistan. Like Karachi, Lahore, Gujranwala, and others. “In

Lahore most of the people prefers kulfa flavor, in Karachi they prefer chocolate flavor and in

Gujranwala they like vanilla flavor.” said Mr. Muhammad Kamran (sales manager WALL’S) in

his interview. Most of the consumers of WALL’S Cornetto are teenagers or generation Y with

the age 17 to 30. Changes in Pakistan demographic environment have major implication for

business of WALL’S Cornetto. For example, this is a period of great migratory movements

between and within countries. The shifts of people of northern areas to southern areas and from

southern areas to northern areas of Pakistan have great effect on WALL’S Cornetto business.

Thus the Company is keeping close track of demographic trends and develop their market.

Economic Environment:

Economic factors are those that affect consumer buying behavior. As this is an era of great

depression, there is a change in the income of the consumer so the sales of wall’s Cornetto are

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affected by this. Upper and middles class consumers spending patterns remains the same but the

working less consumer started spending less on ice-cream.

Natural Environment:

The natural environment of Wall’s Cornetto involves all the natural resources that are needed as

inputs by the company and are affected by market activities. The natural resources for Wall’s

Cornetto are milk cream, almonds, strawberries etc. They are always aware of several trends in

the natural environment. For example, shortage of milk and cream in summer and the shortage of

strawberry in off seas

Political Environment:

“Political environment affects the Wall’s Cornetto consumer not the Company as much.” said

Mr. Muhammad Kamran. When government imposes various limits and taxes in the market, the

company is not really affected to those taxes because they are consumer taxes and consumer has

to pay for that.

Responding to the Marketing Environment:

Overall, the wall’s Cornetto Company is taking proactive stance rather than simply watch and

reading. They take aggressive actions to the changes in the environment and develop their

product according to these changing. Marketing management cannot control environmental

forces every time. In many it must settle for simply watching and reacting to the environment.

MAKET SEGMENTATION PROCESSToday Wall’s ice cream is doing its business in United Kingdom, China, India, Indonesia,

Jordan, Lebanon, Malaysia, Maldives, Pakistan, Qatar, Saudi Arabia, Singapore, Sri Lanka,

Thailand, United Arab Emirates and Vietnam. In this project we are only discussing its market

segmentation in Pakistan. They are segmenting the market in the form of geographic,

demographic, psychographic, and behavioral.

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Geographic Segmentation:

Wall’s Cornetto Company has segmented its market in four sections in Pakistan such as South,

which is Karachi to Sadqabad, and then Central from Sadqabad to Gujrawala and than North

from Gujrawala to upside country. No matters, what the city size is. It is covering all types of

people urban and suburban. Wall`s mainly focused on southern regions of Pakistan, as there is

moderate temperature all the time.

Demographic Segmentation:

The Wall’s Cornetto mainly focuses on the generation Y, teenagers with the age between 17 and

30. Wall’s Cornetto cater both females and males in the society. If we consider the income

segmentation, Wall’s is targeting upper, middle, and lower middle income levels.

Psychographic Segmentation:

The psychographic segmenting is done on the basis of the social class, lifestyle and personality

characteristics. The Wall’s Cornetto is targeting all the social classes’ except of lower lowers and

lower uppers.

Behavioral Segmentation:

The company divides a market based according to the consumer taste, knowledge, attitude, use

and response to their products. WALL’S Cornetto targeted its market by creating an image of

high quality and hygienic products. They also put an eye on how occasionally people buy and

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use their products. They also tried to target their Non user, ex-user, potential user, first time user,

and regular users.

Demographical:

Age 17-30

Gender Male, Female

Income 30000+

Generation Generation Y

Occupation Students, couples

Psychographic:

Social Classes Working class, middle class, upper middle, lower uppers, upper

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Country Pakistan

Provinces Punjab, Sindh, N.W.F.P and Baluchistan.

Density Urban, Suburban

Climate Southern

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uppers.

Behavioral:

Occasions Regular occasions

Benefits Quality, hygiene

User Status Nonuser, ex-user, potential user, first time user, regular user.

User Rates Light user, Medium user, Heavy user

Attitude towards

product

Enthusiastic, positive

Taste Classic, Almond, strawberry lover.

Market Targeting ProcessAfter dividing the market into various segments, the Wall’s Cornetto Company has to decide

which segment it can serve better. So first they evaluated each segments. They want the sets of

buyers who share common needs and characteristics to serve.

Wall’s Cornetto mainly used undifferentiated (mass) marketing strategy because ice cream will

always be mass marketed. They have to do business on large scale so Wall’s Cornetto Company

is using mass marketing.

Product development process of eight steps

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Idea

Generation

Idea

Screening

Concept Development &Testing

Marketing Strategy Development

38

New product development process of product starts with idea generation.

Major sources of new product ideas include internal sources and external sources.

Internal sourcesIdea of Cornetto came from:

Product development teams (by watching the trend of simple cone in market) Formal research and development (asked consumers through questionnaires ) Brains of its executives, scientists, engineers, manufacturing staff and salespeople Companies successful intrapreneurial programs (encourages employee to think about new

product in ice creams ) Value innovation program

External sources: Customers (through questionnaires) Competitors (Wall`s get clue about their new product by watching competitor’s ads,

analyze the sales, and then decide).

Distributors (it might be possible that some customer ask a cone like ice cream as they have information about consumer liking disliking about their changing tastes because they are close to the market).

Suppliers (tell company about new concepts, techniques and materials that can be used to develop new products).

Idea screening:The companies try to reduce the number of ideas and choose the best one which they

think that they can turn into profitable product.

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Companies require their top executives to write up the product idea in a standard form

like their target market, competition.

In the idea screening of product Cornetto the product committee asked several questions

like:

Is this product is useful or good for the consumers’ or society, or does it have such ingredients that might b harmful to consumers health?

Does it match well with the company objectives and strategies? Do we have people, skills and resources to make it succeed? Is it easy to advertise and distribute?

Concept development and testing:-By watching competitor polka ice creams, Wall`s task was to bring a new products into

alternative product concept, find out how attractive each concept to the customers, and

chose the best one. It might create the following product concepts for cone ice cream.

CONCEPT 1:-A moderately priced cone ice cream in crunch biscuits nothing more.

CONCEPT 2:-An inexpensive sub cone mini Cornetto with only biscuits with ice creams

with jellies.

CONCEPT 3:-A highly expensive cone ice cream in biscuit, chocolates, peanuts , pasta

and other ingredients etc.

CONCEPT 4:-A simple cone ice-cream for those who love peanuts in ice-cream with

biscuit.

Concept testing:

Concept testing calls for testing new product concept with group of target consumers’.

The concept may be presented to consumers symbolically and physically.

After being exposed to the concept, consumers then may be asked to react to it by

answering question like:

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Do you understand the concept of ice cream in biscuits? What are the major benefits of the chocolates, peanuts, pistas and jellies in a

single ice- cream compared with other ice creams? What else ingredients in the ice cream you suggest? What would be the reasonable price to charge for the ice cream? Would you buy such ice cream (definitely, probably, probably not, definitely

not)?

“The answer to such question will help the company decide which concept has the strongest appeal”

Product development:-

If the product concept passes the business test stage then it leads to product development. Now

research and development or engineering department of Wall`s develops the product concept into

a physical product but it requires a heavy investment.

The R&D department will manufacture and test one or more tastes of the Cornetto. Cornetto

undergoes rigorous tests to make sure that they give a better taste than competitors, that is in

some big stores where people come most of the time, wall`s start selling their Cornetto ice cream

on a minor level whether people are likely towards this or not .In the early period Wall`s

encourages consumes to taste their cone based ice cream free of cost.

Commercialization:Now after test marketing it’s a stage of launching the Cornetto in the market. Usually this

process incurs the high cost.

Build or rent a manufacturing land (where this all production process take place )

Advertising (people become aware about new ice cream )

Promotions

Other marketing efforts

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When launching Cornetto in Market, Company first decided on introduction timing, if

Cornetto will eat into the sales of the other Wall`s ice creams like paddle pop, twister etc.

Cornetto did well in Pakistan when it was launched.

Next, the company must decide where to launch this ice cream in a single location, a

region, the national market, or the international market. Cornetto was first launched in the

bigger cities of Pakistan.

Wall`s ice-cream growth was outstanding over the period, which they achieved through exciting

stream of innovations, aggressive market penetration, 360o communication (TV commercials,

outdoor, print and visibility activation) and constant attention to consumer affordability.

Product positionProduct position is the way the product is defined by consumer on important attributes, the place

the product occupies in consumer minds relative to competing product. Wall’s Cornetto position

is very strong in the mind of consumer because of its quality and uniqueness. Cornetto targeted

young adults and was positioned as the product for romantic and special moments with a tag line

of “Love in every bite”. Cornetto positioned them through aggressive penetration and captured

market due to their unique recipe, huge advertisement and proper supply chain.

SWOT ANALYSIS

Swot analysis enables the marketer or the business manager to exactly locate1.What strengths or

strong points his product has and on which he can capitalize 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, analyzing the

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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. A complete analysis of the external environment is as follows

STRENGTHS:

The Cornetto ice-creams brand is a unique brand with no direct competitor due to its

special taste and make .As it’s a different brand so it earns huge profit margins for Wall`s

which are about 18% of all the revenues generated by Wall`s in Pakistan. It is available in

all big cities and known areas from Karachi to Mansehra and is in the reach of

middleclass &above middleclass, the efficient and planned delivery network makes it

availability possible at more than 40,000 outlets. It is available in 9 different flavors

which are according to the taste of local people. Availability of Cornetto in numerous

sizes increases its demand by including even those people who do not want to spend on a

standard sized Cornetto. It is reasonably priced. They have launched different products to

cater to more people by introducing moderate tastes such as Choco disc and strong

Flavors like Strawberry and Super Cornetto. There are many premium varieties. The

production is under hygiene environment with world class standards like ISO 2009.

Financially strong

High quality

Good Image in the minds of consumers

Wide distribution due to wide distribution channel

Aggressive promotional scheme’s

WEAKNESS:

Ice cream is a perishable item and the electricity failure has really created problems for

the company, actually they incurred huge losses due to this as lots of theirs stock losses

its quality and melts. There clear top freezers cannot retain required temperature for more

than 90 minutes.

Pure milk is not used in ice creams

There is no variation in tastes

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OPPORTUNITIES:

They can come up with new flavors which would be able to attract the youth .They

should not restrict themselves to departmental stores, in fact come with new luxury

brands which can be available in hotels and they should come up with their own ice-

cream parlors like spin bar. They can cash their name and expand market share by

increasing product lines.

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:

The biggest threats for Cornetto ice-cream are competitors, Gourmet and Omore. The

threat from gourmet is the low price challenge and Omore can be an equivalent

competitor as it is positioning itself effectively. As Cornetto is a high Profit generating

brand, competitors would surely try to enter into this segment and compete. Nestle is

already present in Pakistan working in other products, but as they are second in rank of

holding ice cream share they might intervene into this market also, which can be a huge

threat .

Hico and Omore are also new comer but rapid increase in there market is a big

threat for walls.

Marketing Department (sales force)

WALL’s divide the Lahore Market in two major Zones and each zone is further divide into four different areas. Each area has one zone (sale) officer and each sale officer has 10-15 different sectors to serve (supply) the market, which means under research zonal manager has 10-15 sales men and each sales man has one van.

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Hierarchy of Marketing Department (sales force)

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National/

Country

marketing (sales

) mana

ger

National/Country marketing (sales) manager

Zonal sales mana

ger

Zonal sales manager

Area/

territory

sales manager

Area/territory sales manager

Sales offic

erSales officer

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INTERVIEW QUESTIONSTell us generally about Cornetto.

The sales for Cornetto started in Pakistan on 15 Nov 1994 it was initiated in main cities along with other products and presently it is available at 40000 outlets all over the country from Karachi to Mansehra. Presently Cornetto is available in 9 different flavors and overall 68 products are present in market by walls. It is segmented for people aging between 15-30 college going students or young couples. It is among the high profit generating products of walls.

What is your current revenue in Lahore?

We cannot disclose our exact figures but walls contributes to 10% of unilevers sales in Pakistan and Cornetto is 18% of the total revenue generated from walls.

What is your hierarchal structure of sales department?

Chairman

Sales director

Regional sales manager

Territory manager

Area manager

Supervisor

Sales man and order booker

How are you affected by Omor’e and gourmet icecream.

Obviously when a new competitor enters the market, some market share is lost but Omore basically extended the market through their advertisement campaigns. We are not mainly affected by Gourmet as they cater to a specific segment where as we are available on 40000 outlets but yes without doubt their incredibly low prices did affect us somehow.

How you carry out your distribution process?

Our product supply to consumer is through two ways one by people on cycles and other is through retailers shops. Both are not part of the company, we have our distributers who carry out this supply process.

What incentives do you offer to retailers to retain them?

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This is not our policy to directly entertain retailers, this is the work managed by our distributors who receive a specific percentage to carry out all this procedure. But we do make sure that product availability is efficiently done.

Which Recent promotional activities are being carried out by Walls?

Right now advertisement on television is in process and with the change in weather the frequency is also reduced. The last campaign of Jal song is still on TV’s. apart from that nothing special is going on.

Are you intending to introduce new flavors for cornetto?

We keep on introducing new products, but this is confidential so I cannot reveal it to you .

Is there any specific plan to introduce/change your flavors?

N/A

How do you calculate or evaluate customer perspective regarding your product?

There are different ways to know the customer perspective regarding our products like Market surveys, Telephonic reviews, Blind testing in panels, focus study groups. We have a proper department who look after this thing.

Which flavor was hit among all?

Well obviously vanilla forever, almost 65% of the ice cream sales around the globe are vanilla and it is a neutral flavor liked by majority. Initially vanilla forever was named as Classic, then it was changed to Choco disc, then Classico and finally what is known today as Vanilla forever.

How do u maintain quality standards.

We have quality checks at every stage from the purchase of raw material till the final product is made. Even before purchasing we make sure whether the supplier meets our standards or not.

Is there any natural ingredients or are they all produced by artificial flavors?

The main ingredient in an ice cream is milk, apart from that artificial flavors are also there like scent and nuts and crunch used are obviously natural ingredients.

During winter when demand is low how do u maintain your profits?

In winter we have our statistics that demand decreases by 40% so we cannot do anything regarding convincing people to eat ice cream in winter, but last winter we had a campaign saying “Thand hai to kia hua”. Obviously we plan to make our sales as much as possible.

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What are your current strategies?

N/A

Which mode of advertisement is most preferred and why?

This product is impulsive in nature, so our main focus is to convince the buyer at the point of sale. When someone opens the freezer our most profitable brands must be placed in such a way that they must attract the customer most and when consumer enters the shop, our freezer must be placed at such a place that it must be the first priority of the customer. We use television Ads when we introduce something new apart from that reminders are given to the consumer to retain them. Apart from these, we use magazines and pamphlets, standing boards on the shops.

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Survey questionnaire:1. What is age bracket do you belong to?

a) 13-16 age

b) 17-30 age

c) 31-39 age

d) 39 age and above

2. What income bracket do you belong too?

a) 5000-20000 Rs

b) 20000-50000 Rs

c) 50000-100000 Rs

d) 100000 Rs and above

3. What is your marital status?

a) Single

b) Married

4. What is the brand of the ice-cream that you usually purchase?

a) Wall`s

b) O`more

c) Hico

d) Yummy

5. How do you prefer to have your ice-cream in?

a) Cup

b) Cone

c) Stick

6. Is Cornetto your favorite ice cream?

a) Yes

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b) No

7. How often do you purchase Cornetto?

a) Everyday

b) Once a week

c) Once a month

8. Please rank accordingly to the characteristics of Cornetto :

1 being least preferred, 5 being most preferred

1 2 3 4 5

a) Taste:

b) Price

c) Flavor choices

d) Packaging

9. Do you like the ads of Cornetto?

a) Yes

b) No

10. What flavors of Cornetto do you like the most?

a) Love disc

b) Classic

c) Strawberry

d) Love chocolate

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50

9%

29%

35%

27%

Income bracket5000-20000 Rs 20000-50000 Rs 50000-100000 Rs 100000 Rs and above

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25%

45%

20%

10%

1. What is age bracket do you be-long to

13-16 age17-30 age31-39 age39 age and above

51

51%

29%

13%

7%

What is the brand of the ice-cream that you usually purchase?

Walls O`more Hico Yummy

59%

15%

26%

5. How do you pre-fer to have your ice-

cream in? Cup Cone Stick

Yes No0

10

20

30

40

50

60

70

Is Cornetto your favorite ice cream?

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TastePrice

Flavor ChoicesPackaging

0

10

20

30

40

50

60

70

80

1

2

3

4

5

12345

How often do you purchase Cornetto?

EverydayOnce a weekOnce a month

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Yes

No

Average

0 10 20 30 40 50 60

Do you like the ads of cornetto?

Love disc

Classic

Strawberry

Love chocolate

0 5 10 15 20 25 30 35 40

1. What flavors of cornetto do you like the most?

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REFERENCES

1. www.wallspakistan.com

2. www.unilever.com

3. www.yummy.com.pk

4. www.unilver.co.uk

5. www.walls.co.uk

6. www.yahoo.com

7. www.google.com

8. www.wikipedia.org

www.Wall`s.com.my

http://www.unilever.pk/brands/foodbrands/Wall`s.aspx

http://www.Wall`spakistan.com/

http://en.wikipedia.org/wiki/Cornetto_(ice_cream)

http://mariansportfolio.wordpress.com/g-my-perceptual-map/

www.wall.uk

Book; Principles of marketing

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