Final Marketing Project on Unilever Brothers

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Preface

Getting practical knowledge in one of the major aims of MBA program. Department of business administration Bahauddin Zakariya university, Multan has followed policy of assigning different practical assignments to its students so a touch of real working environment can be given to the students apart from classroom studies ot widen their perrpective.

Marketing management is one of the core subjects of MBA-Ist gives an insight that have marketing concepts are applied in practical world. Therefore study of the subject is incomplete without observing in real working environment.

In this context, respectable, instructor Mr. Muhammad Rizwan has assigned us to study marketing concepts and their application at walls a separate division of LBPL.

This term report consists of two findings of the visit to Wall’s head office and information gathered form other senses we hope that the readers of this report will get valuable information about marketing management at Wall’s.

This world is working but a physical existence of rule of cause and effect everything is a result of some other event and everything is dependent on some other. Human being is one of the weakest certain of the Almighty dependent on other for his existence. This is the law and we cannot change but we can not only come out of his dependence by sharing knowledge among our fellow beings but also we an prove that man is not weakest creation.

In this vision of circle of cause and effect those people are really great who help other in getting knowledge. One such person is our teacher Mr. Muhammad Rizwan who helped us a lot in making this term report, would not have possible.

We are also grate full to the people of Wall’s who helped us in every possible way and provided us with all the needed information. Some of them are

Dedicated to our friends who are not with us but their memories will live in our hearts forever

Company Profile

LBPL is one of the largest companies operating in Pakistan. This company is not of local origin but on independently functioning company of Unilever, which is its parent company. Unilever is an Anglo-European company will its head quarter in London, and its shares are quoted at stock exchanges of several European countries. They deal in all kinds of products from animal food to detergents and other personal and consumer products.

William Lever origination of lever Brothers) commenced business in England as a grocer. He established lever brothers in 1827 in England sunlight was the first product of lever brothers, while introduced the working of branded product. At the same time Margarine Uni was established in Netherlands by Simon Van Berg and Auton Jurgens. These two companies operated business upto 30 in the same markets and enjoyed themselves, in competition.

Consequently both the companies started loosing normal profits due to high competitor. This problem led to the merger of the two companies. In 1930, these two companies merged together and the resulting business was named as UNILEVER. The word UNI and LEVER is taken form Lever brothers. Its headquarter was established in London and potterdaw.

Uniliver has 500 operating companies in 100 countries al lover the world. It has 0.3 million employees and its sales turnover is 23,000 million pounds. Its properties in global business in 60% in Europe, 20% in North America and 20% in rest of world.

Lever Brother In Pakistan

LBPL started its operations in 1948. a merger of Sadiq Vegetable oil & Abid industries existed in R.Y. Khan was taken place will Lever Brothers & HVM Company located in Karachi. As a result of merger, LBPL was incorporated as an independent uniliver company in 1955. now its head office ins located in Avari Plaza Fotunier Jinnah Road Karachi. Lever brothers have a sizzling market share of 60% in Pakistan.

Field Of Business

Mission Statement

LBPL si very conscious about settin targets for the company and chalking out its plans for the future. In this regard the mission statement of the company is revised continuously to explore hew horizons and over come its present weaknesses.

Strategic Thrusts

In order to get the maximum market share and out perform all the competitors LBPL’s management committee has formulated 10 strategic thrusts which will be giving a synergic effect to the already giving a synergic effect to the already increasing market share of LBPL.

Quality Policy

LBPL is committed to provided its customers the quality products and company has never compromised an quality no water wheat the cost. This maintenance of consistent quality was given LBPL a competitive edge.

Total quality is continuous improvement towards satisfying our customers & consumers requirements at the lowest cost through harnessing everyone’s commitment. We apply this approach throughout all our operations and wish to extend it to our suppliers as partners, through a close marketing relationship.

The company is dedicated to supplying its customers and consumers with personal care, home care and food products fo excellent quality, which are competitively priced and safe and effective in use. Our aim is to delight all our customer and consumers with every product and service we offer.

This policy applies to all the activities of supply chain, including all operating units and business groups throughout LBPL and products manufactured by or in conjunction with third parties eg co-packers and co-products.

It is our policy ot maintain a quality system within the company the appropriate to meeting there objectives so that all aspects of our business are carried out to already. Defined procedures designed to achieve the necessary operating students. This applies to all aspects of our business from process control in manufacturing to support for advertising and copy claims.

The company will ensure that all employees are fully informed of this policy, appropriate the importance of their role in execution and have the necessary authority and facilities to contribute to its successful implementation.

We will introduce appropriate quality management system at operating sites and ensure compliance through internal and external auditing programmes.

The responsibility to implement this quality policy lies with company’s chairman and technical director and the same is fettered to the heads of each business group and respective managers in their areas of responsibilities.

Wall’s is an international brand of ice cream and is one of the most profitable units of uniliver walls has its 38 plants all over the world. And has a share of 22% of international ice cream market. In Pakistan it is 35-40% of total ice cream market (both organized and sectors combined).

In Pakistan Walls started its operations in Feb, 1995 as a decision of Lever Brothers from Lahore. In just 11 weeks, Lahoris consumer on million liters of the product crating a record of sorts. On August 11, the same year Wall’s came to Karachi and took the city by storm. This story of success was repeated all over the country. Wall’s has clearly set new standard of ice cream quality and hygiene in Pakistan. Form marketing point of view walls brought to Pakistan. The concept of branding, consumers who ask for cornetto, feast, max and other brands.

Hot simply for ice cream products. The Wall’s tricycle has become a welcome feature of Pakistani life, evoking nostalgia for the days of the ice cream man. There is however, a major difference; there cool treats are clan and safe and provide fun nutrition.

In July, 1996 Polka, an established local name, representing the only national ice cream business was acquired by uniliver. At this point, the plan was that walls will emerged as the “Impulse brand” white new level of excellence in take home or dessert ice cream.

White Wall’s had rejuvenated ice cream consumption in the country, Polka continued to exhibit strengths unique to the business depth and width in distribution knowledge of the trade, native selling skills trial and proven product successes, several years of trends and strength in specific product.

The acquisition of Polka provides uniliver ice creams business in Pakistan the best of both worlds. The clear synergy arising out of the two distinct brands is sure to more uniliver into the position of market leader, offering consumers an ever stronger relationship with uniliver ice creams brands in Pakistan.

At present there are two plants of Walls. One of them with state of art equipment and latest technology is in Manga Mandi 46km from Lahore. This factory was constructed with an amount of one billion rupees.

This plant has been expanded and a new extrusion live has bee installed which has increased the present plant capacity by 15%.

What do you want? Vanilla, mango or chocolate chip? One scoop or two? With or without chocolate? Carmel – coated words for ice cram lovers but not in Pakistan, where an a material level the per capita consumption of ice cream is half a liter per person per annum. And this not an exaggeration.

Consumption wise ice cream in Pakistan does to fall n the same category as biscuits or confectionary for example. This is because ice cram is not an integral part of the every Pakistani diet. When half a liter per person per annum consumption of ice cram is compared with consumption of ice cream is compared with among 33% that constitute the Pakistan urban population this figure is only slightly less discouraging.

If we compare this to the united states, the per capita consumption standards at almost 23 liters per person per annum. On a national level much of the ice cream so in the market is consumed immediately on purchase, partly many Pakistani homes lack refrigerators. However, a major factor depressing ice cream consumption trends in Pakistan is limited disposable income.

The over all picture of ice cream industry in Pakistan is not encouraging. A dominant market share of 52% is with the unbranded ice cream vendors and artisans which is mainly due to low per capita income. The remaining 48% of the market share is divided among 5 major companies which are

Among these wall’s is at the top with a market share of 85% and is the biggest brand. The better four companies are far behind with single digit market share.

Wall’s success is once that can be attributed to piggybacking on Polka’s already dominant share of the market. The major problem which the organized sector of ice cream culture. In Pakistan ice cream is supposed to be responsible for sore throats and other diseases which restricted the inheritance of ice cream culture and there is no evolution and development of such culture. All the cream companies in the organized sector first try to create an ice cream culture before creating market for their products. This has turned into a challenge for international companies like Walls and Walls people don’t seems to back off.

In September 2000, a detailed survey on ice cream industry was conducted by Gallup /BRB on behalf of AURORA a marketing publication of Dawn Group of Publications. This survey gives a detailed picture of the ice cream industry in Pakistan. And highlights its salient features. This survey was conducted among more than 1200 statistically selected households in urban areas of all four provinces of Pakistan. The sample comprises cross section of various age, income and education groups.

In survey 8 questions were asked whose results are given in the following pages.

Please list all the brands of ice cream sold in the market that you are aware of.

ø Nearly 90% urban Pakistani are aware of one or more of the leading ice craem brands, proving that branded ice creams are now a part of the Pakistani fast-food scene. In terms of brand awareness, polka and walls are head to head, and most respondents were not aware that polka is a walls brand.

ø When it comes to consumption, walls line offhand –hold ice crems is significantly ahead of its polka range.

One third of men and 20% of the young eat ice cream in the company of friends. Few enjoy eating ice cream on their own.

4 ice cream outlets. Do you usually eat packaged ice cream (purchased from and grocery shop/general merchant) or eat ie cream at an ice cream “eatery”?

NB: these outlets refer to ice cream “eateries,” not the expensive ice cream parlours, as their the total number in Pakistan is too small to poll their customers in a representative survey.

There are no significant difference across ge groups. Lower income groups are more likely to eat ice cream at ice cream eateries.

5 pack type purchased. What type of ice cream do you or your household usually buy?

7 influencing brand choices. Who exerclses the greatest influence in the choice of an ice cream brand in your household?

Twenty one percent men say women make the buying decision, while 39% women state they make the buying decision.

Typical of all survey responses to this type of question, male respondents made a disproportionate claim about their influence on brand choice; and the same is equally true of female respondent in that they too overemphasized their role. In summary, the weight allocation regarding the choice of ice cream is: 20% men, 20% women, 40% children and the remaining 20% is a combination of influences.

8. Ranking of attrlbutes in making bran choice. When you buy ice cream, which of the following attributes is most important to you?

Price 17%

The question of target market is very crucial for every organization. Organization talks special core while identifying and defining their target and defining their target markets. Because apart from opening new horizons they are also play have with companies resources and image.

The primary target market of walls is 65% of the population that earns 5500 rupees about above per month. In this primary target market many requirements are made so as to target the whole of the market effectively and efficiently. The basis of segmentation used are

Walls hs targeted urban and several markets of Pakistan in a very planned way. Walls started from Lahore and launched it products in February 1995. In only 11 weeks one million liters of ice cream consumed only in Lahore. On August 14, walls hit Karachi and reported another story of success with these two cities walls was also received open arms. Now it was the twice to expand business to smaller cities of Pakistan.

Due to success of Lahore and the large populations vested those the city, the initial expansion plans selected the cities of faisal abad, gujranwala and sialkot based on careful working research work in there cities.

After there expansion success walls business had further expanded to Murree Wah, Cantt, Abbottabad, in northe Multan in center and to Hyderabad in south this role out of the business makes walls close to a cationally available product. It is expected that with in 200/- walls will be available in every conses of the country.

ø Cornetto, feast and poka cups for instance are geared towards the adults but are out with their parents.

ø Fruiti and to ten are targeted towards teen ages. Walls considers youngsters to be its target worked because it believe, that by shopping the habbits of the younger generation it will not only buy customer for life, but it also capture a generation that will have considerable influence over the next one when it embraces parent hood. With 60% to 65% of the population below the age of 24 and growing for walls Pakistan’s biggest attraction are its citizens.

Ice cream are also segmented are the basis of occasions or circumstances. Each ice cream has a different type of eat certain ice cream are creamier heavier and last longer because of thirst or for refreshment as opposed to hunger similarly, polka cup are ideal for deserts.

ø Walls have also kept in with basic human wants while targeting its market. People consume ice cream under different psychological patterns feelings emotions.

ø In this the target segment is made by snacking like color bar, big shell, gig three, panda, pop corne etc.

ø The second longest segment is made by refreshment item which include brands like solo and fruity.

ø Not space is occupied by indulgence items which is targeted by classics that cornetto.

ø Celebrative shares brands of this segment include polka from walls and polka cups.

Are considered as medium scale competitors in the Punjab. All these players fall into the organized sector of industry which emphsies about half of the ice cream market. We will study them n detailed in the following lines.

In the branded ice cream walls is at the top a huge market share of 85%. The remaining companies are far behind in this race with single digit sector.

Walls has a share of 22% of the intervention ice cream market and in Pakistan It is 40% of total market.

Walls its launch in Lahore and Karachi in 1995 and then in 1986 in Islamabad walls entered the market with solid expertise in manufacturing hundred ice cream. Polka’s strong brand equity in tubs and other take home packs, made it ripe for the picking, leading to the competition of the legal merger between polka and lowers in 1996.

With the highest spending on promotion in the industry walls accepted the challenge of creating the ice cream culture and in this regard walls be claiming considerable success.

Walls has succeeded in projecting a quality image, and with hand held ice creams that don’t melt and drip on soon as you tear the curapper off. Walls claim that they are also providing convenience to the consumers. This eating convenience is what ice cream manufacturers are so keen on providing. Their commonly held view point is that their ice cream should be accessible to consumers everywhere. To ensure this walls is using three channels.

Walls has a psychological advantage our it competitors of innovating new products which are not only very carefully through out but also very effectively developed. All other competitors explicitly or implicity accept this edge of walls and have no hesitation to confess that their most of the products are based on me too approach. Instead of venturing the new horizons they like to follow walls innovations. This makes walls an unchallenged market leader whose products are of international quality and are backed by walls experience in ice cream marketing which needs no introduction.

Yummy share a market share of 28% in the Punjab and capital on its market follower position by copying walls products. A perfect example is walls feast, which was corbon copied by yummy under the guise of fiesta. Md at yummy on one occasion confessed by sewing we follow the member one. Company and why not? Walls must be credited for starting a new trend. The ice cream trikes, the innovative product formulation and packaging have allowed all the market followers to benefit.

Yummy believes in letting the competitors test new waters and then purchasing the incounter with product similations or spin offs of its own.

Yummy claim that it the only ice cream manufacturer offering pure dairy products. Yummy is also using this issue to attack on walls. Currently yummy is waiting for a court verdict on their contention that walls product should not be classified as ice cream, following which the company will decide on its new compaign. Company is also planning to capitalize the rapidly urbanizing population.

Yummy has kept its prices steady for the past four years is partly due to consistent growth in sales volume. From 1995 on wards. Yummy has experienced annual average sales increments of almost 35%.

In seventies igloo was the only major branded ice cream player in karachi-I it was the intervention of mature that caused Igloo to lose its market share in karachi when floods wiped out its operations. Igloo had to close down and its management went on to assist in the start up another ice cream producing concern by the name of polka. Igloo never quite recovered from its sudden closure, and has played second fiffle to polka in sindh ever since, although of late its resurgence has been talk of the industry. With factories in Karachi, Bangladesh and UAE nd igloo is all set to start production in India by next year.

Currently Igloo claims to have a combined market share of 32% in Sindh and Balouchistan and 8% in NWFP and Punjab. From its reputation as a ice too company that following walls product range, to this years innoator and introducer of the greatest variety of ice creams, igloo has decided to take up competitive challenge this started with the supreme ice creams tubes that offered imaginative flavors like chocolate, mint, pina colada, and vanilla fudge. This was followed by a new range of hand held ice cream.

Markup , O-la and respin to name of few which combined fruit flavors with dazzling colors and designs.

Following international trend of combining establishing confectionary names with ice cram flavors, igloo developed bonito, and ice cream that tastes and sounds remarkably like bounty. Industry experts speculate that walls paralive tub was introduced as counter to igloo latest name.

Its not that igloo had not been innovating before. In fact it has been innovating for quite some time but unfortunately it met with failure on more thank one occasion. For example both igloos white choc-bar and its lassi stick failed. Then in effort at w-branding igloo to provide ice cream for KFC in 1997. a deal that feel through in 1999 following payment problems with the artal group.

There were however success along the way. The dip shop igloo ice cream parlour chain set new trends with the introduction of ice cream snakes available with a wide selection of toppings. Igloo current plans include spinning off the parlor chain as a franchise and turning it into another under the igloo umbrella. Cream op was also one of the major successor.

Igloo presence extends to 15,000 retail. Retailers margarines given by igloo are 20%. The company budgets its advertising spend at approximately six percent of its annual forcast sales. The advertising budget is divided by allocating 45% to POS 20% to print 15% to outdoor and 10% respectively to public relations and television.

Smaller entities such as hico have a soft sell approach based on pos and word of mouth HICO is stronger in the Punjab, particularly in faisalabad, gujranwala, Islamabad, Lahore, and sialkot. HICO has a 55% in take home packs and 40% of the Islamabad market in the same category. HICO intends to stay with its soft sell strategy until it enters new markets where it enters new new markets when it will increase its advertising spend and expand into the more expesive electric and print media.

Regardless of size scale all the competitors in the ice cream industry have a singular and ultimate. Ambition to be the leading ice cream manufacturing in Pakistan . with the emergence of new entities like forty and the return of move pick the ice every covers can only look forward to having an carry of their favorite dessert to choose from, which is pretty much keeping in line with the mantra good ice cream manufacturers like the ask not what your consumer can do for you, ask what flavors you can provide for you consumer.

Chapter -5

Product

Product Positioning

Few decades earlier ice cream was something related with childhood and for most people it represented joy and increase.

The positioning of the area in peoples mind was tuned upside down when Hagen- Dazes released an advertising compaign in Australia based on multicolored worked bodies intend to evoke ice cream flavored every one knew the industry had come a long way. When the same company came to out with a compaign that should compels intimately involved while eating ice cream every one knew the industry had come of age for a product that primarily depended on wholesome family moments to communicate its message these changes served as a reminder that with global trends geared towards using products and services as plays to play on consumers emotions this was truly the end of the age of innocence.

This was born this suggestion of indulgance, irrepressible urges and captious uses in ice cream advertising.

Walls although very family oriented in its approach in Pakistan has joined the band wagon in the liberal west influenced perhaps by the Oscar William Filurr American beauty. The image of blonde cheerleader supine on a bed of rose petals was provided in the ad for walls strawberry pop, socer. The advertisement depicted a blonde woded on a bed of strawberries while the copy touted the cool effect you don’t aspect.

Although we have gone so far as to adopt sexual gratification as part of the ice cream consumption process in Pakistan ice cream is finally being portioned as an indulgence proved that satisfies a consumer physically, emotionally and psychologically.

When we talk about emotions and walls the product of these two results to be cornetto and when it is the question of physical satisfaction. Feast is the answer. Feast is postcard to be a diet of tough and dosing people.

Change Of Logo

Walls has gone to far in relative to emotions. It has changed its previous logo slowing W for Walls with a heart in yellow and red colour and with the brand name written under it is blue the red and yellow heart is designed to denote happiness and enjoyment and is part of the company effort to pull ice cream association away from summer and increase year round consumption. Walls says with the heart logo we have moved away form the sun, saved and beach theme.

Other Positioning Strategies

Walls also used to position its brands based on basic human wants. These positioning strategies have been adopted keeping in view how many differnt shapes human want can take now a days.

brands positional in this category are priced at medium ranges and the flavors included true large variety as people need change in snacking. Brands like chockbar, big slice, big three pandas, and pop conrn on by categorized

brands under this strategy are proved a little higher due to the occasion on when they are used. These brands are associated with emotions a cornetto is perfect example.

its human nature to get tired and bored of continous work and needs refreshment. As target market is huge a log of brands have bee positioned In his category to give variety to customers. They include solo, frutti, kulfi, vanilla stuck etc.

the cream in many households of Pakistan is also to celebrate different occasions. For this take home packs of polka form walls are given which are doing good business.

Product Mix

Walls has very a wide present mix with 16 brands which says for lollies like solo Rs. 3 to the premium dairy ice cream cornetto Rs. 23/-. So there is a wide range of options between Rs. 3.00 to Rs. 23.00. so easy person of the target market care afford it.

There is an additional 17^th brand. Polka from walls. Which includes take home packes of half and one litre. This is one of the most famous brands of walls. The product mix with respective product limits of the brands are as follows.

Sollo

It is a four in sumer. It is available in three variants in only Rs. 3/-. There variants include solo summer, cola and a view entry fun 2. This s one of the worst sold brands and is especially like by children.

Jet Pot

Max

This is a new entry in the product mix. This is available in milky and chocolate flavors and priced Rs. 5/-.

In cup max is available in vanilla and strawberry flavors. Its price is Rs. 10/-.

Fruiti

It si a big refresing classic ice lolly with real orange juice. Its is price at Rs. 8/-

This is another new entry with the name of walls kulfi. Its price is about Rs. 8/-.

This is relatively old brand available in tow variants which are vanilla and chocolate. Its price is Rs. 10/-.

This is a stick bar. It is available in kulfa with a new launch vanilla. Its price is Rs. 10/-.

This is also popular brand of walls in a very attractive shape of panda. It is available in strawberry and kulfa flavours and priced at Rs. 10/-.

This is a new entry but it don’t seems to do good business. Competitors are claiming that it is a failure. It is priced at Rs. 10/-.

This chocolate covered double delight ice cream bar is another old member of the mix. It is doing good business and is priced at Rs. 14/-.

This is also vary successful brand available in mango, tutifruiti, kings kulfa, and vanila flavours. Its price is Rs. 15/-.

This is one of the old faithful of walls. It is available in thick chocolate care and a crucially outer covering of chocolate and a kulfa flavour with kulfa core covered in crunely coating. its price is Rs. 15/-.

This record breaking brand needs to introduction made form fresh dairy ingredients, it changed the tastes and preferences of ice cream lovers in Pakistan. This is one of the best selling brand of walls and is earning the max profits. It is available in chocolate and classic flavours. Its price is Rs. 23/-.

Polka From Walls

This brand include, Talae have packs of one and half liters with prices ranging from 35 – 85 Rs. Following flavours are available under this brand.

Pricing is a very important component of marketing mix. In this, organization which are made for generating revenues charge some profits meeting their costs.

Different organizations have different preferences related to price. Some are in favours of charging high profits margin per unit. Which other firm keep the per unit profit low but try to maximize their total profit.

Pricing is not an easy achitiy, it is effected by large number of variables which include.

This price charged for a product depends largely on the nature of product. For an innovative product generally high price are charged following the price skinning strategy.

This strategy can only charged by those organization which have stray R & E facilities and a culture of innovation and increasing new cities.

On other hand, the campaign which are involved in walking routine products usually don’t charge very high price i.e keep high profits because, normally a large number of competitor are present in this category and prices tend to stabilize. The companies in this situation mainly follow price penetration strategy by keeping a nominal price and targeting a large segment of market in one time. But in the same category higher can also be charged if the product is under strong brand have and trade mark.

The prices charged a company also depends upon the part performer of the company that how reliable one the products of company is there one contain trade marks whose pressure on the product ensures that this s a high quality product, developed from state of art technology, there would no defect in the product and product is not harmful for human health the big players. This category involves the big players like McDonalds, KFC, SONY etc.

There big players can charge high price specially when there hit new markets but as soon as competition builds up price slow down world trend.

Situation is opposite in case worked or its past record is not good. This means the products company made care not of higher quality or there who defects in the products based on less spending on R & D. these new entries first try to build up brand loyalty by charging low prices and offering maximum facilities to the customer.

This is also one of the main determinants that what pricing strategy company is following. There are two very famous pricing strategies.

Price skimming is generally used for innocent we products. In this strategy price are moved from top to button in order to skim the segments layer by layer. What as penetration pricing is used when nature of product is moved from top to bottom in order to skim the segments of target market is focused.

Price At Walls

Walls at being the market leader and the major innovator in the industry normally charge higher prices for its products. These high prices are justify by the management that they are due to

When there is a question of quality, the only consumer in ice cream industry is walls. Walls quality standards are based its international expenses of marketing ice cream n more than 100 countries of the world. Also quality maintenance is one of the top priorities of LBPL and competitive advantage.

The two factor of walls with state of the art equipment ensure that the products made are of high consistent quality. But to maintain this quality definitely some cost is circurred which is very genuinely charged by walls.

Research And Development

The major contribution in the success or failure of product is of the extent to what care is taken in the fabrication of product. If there is any loop hole in it then no water how effectively you marked it the product will be confirm failure. To remove this factor to zero percent walls make heavy spending on research and developments products. There heavy spending are for customer and must by charged to the customer putting an extra burden but walls him sure that the product he is consuming has zero % degree level.

Extensive Distribution

One of the competitive advantage of walls is its availability which is ensured by extensive distribution which is entirely dependent on efficient distribution of walls.

The distribution of ice cream is different from other products. To keep it in a good form it must be chilled at a paper temperature. For this purpose deep freezers are used to save it. It cost which is to be paid . for this purpose walls give a margin of 18% to its retailers. Distributors which is distribution inner outer distribution channel. But a margin of 18% is not only sufficient but also an extra burden on the price to be paid by consumer.

The vary first factor kept in consideration by walls which setting prices competition. Closely, the innovative products it introduce has immediate competition only me too flowers but these me too category also give tough time.

Another good thing is competitor in the ice cram industry is improving and small companies are also spending on research and development and innovations.

Perfect exposure of his is made by Igloo. Igloo is introduced supreme ice cream tubs in a variety of flavours like choc-o-mint, pine colada and vanilla fude. Walsl praline tub is supposed to be introduced in response to this.

Why walls is innovator in any product it charges high prices and enjoys the benefits of market leader but there high prices are relative to target segment.

In product categories where me too arrive after sometime, walls play the role of price leader and all other firms fellow the charges made in prices by walls. In competition only Igloo claim hat they price at par with walls. All other companies keep their prices a little below walls occupying the market leadership of walsl.

This is a vary common thing. Size is in mineral while setting price. Higher prices are charged for bulk and family packs. As compared to hand held ice cream. Different price discounts are also given to retailers and customers on buying in bulk.

Cost

This is also very important factor to be considered which settin price. No mater new hard the competitor is and what strategy company is following, it has to meet its cost first. It is not possible that just to make place in a cut throat competitor company loose part of cost which it is issuing in walking the product.

But this is also possible and used by many companies that when there is intose competition they loose some margin or part of cost on one product but make compensation by the higher profits of another brand. But this strategy is ready followed and the brand which is no more profitable is priced from market.

This is the main point of of focus. If the price set by the company is unaffordable by the segment for which the product has been launched there that product will not sell. The price must by afforadable by the target segment.

Walls has a very extensive statistical backup supported my research firms for such decision. They keep detailed information about different segments and also conduct survey of necessary.

Value maximization is an announces phenomenon which occur with every rational customer. They want that the product must worth what has been charged for it. If customers thinks that the value he / she is getting is not equallent to the price paid, they would by no repurchase.

Walls try to its best to maximize to the price paid, that would be no repurchase.

Walls try is best ot mazimize the value its customers get from its product by charging the prices which are based upon extensive study. This value maximization is ensured in every trend of the company and is guaranteed to every segment of the market.

Prices are often charged by walls to adjust the inflation. Currently an inflation rate of 10.5% is prevailing in the market and the prices must by adjust to compensate this but this do’t happen very frequently.

Prices at walls are geared to suit every pocket, walls handled range starts at Rs. 3 and go upto Rs. 23. Similarly take home packs start at Rs. 35 and end at Rs. 85/-. So there is enough margin that each and easy customer and ice cream lover finds a good quality ice cream which he / she can afford.

Distribution is making the product a available but this availability should sensure that product must be

If there is any deficiency in any of there basic elements of distribution, there future of product would be uncertain. Distribution in such an activity which divides the fate of the product and manufacturer becomes a success store or fades into obscurity. This is also taking decision 3^rd P of marketing mix.

Distribution Channel

Distribution channel 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 decision is made with care and channel is managed efficiently, companies can save high costs and can generate profits. But for this, cooperation of channel members is very much imported.

Distribution channel used by walls is very short and this is due to perishable nature of the product. It can be shown by following sketch.

there are two factories of walls one is in Hub, Karachi and 2^nd is in Manga Mandi Lahore. For the purpose of distribution for the factories walls has divided the whole area of Pakistan in two regions.

Northern region is covered by Lahore factory which includes the areas of Punjab and NWFP.

Southern region is concerned by Karachi factory which includes Sindh and most areas of Baluchistan.

Walls has its warehouse in every major city. There is a warehouse In central locality which covers not only the central locality which is the major city but also near the villages and towns. From warehouse there are three ways to reach the consumer.

Distributor take supplies from warehouse and distribute it through strikes. Use of trickes is a very innovative idea in the distribution of ice-cream. This reminds us the time of ice cream man who used to come in mohallas, but there is a difference between that ice cream man and walls give consistent quality and safe products. Now there tricks have become the sign of welcome gesture of Pakistan.

There trikes are provided by walls to the distributor who their manages all the operations related to three trikes.

Vendors on there trikes are given a commission of 7%. The routes of these trikes are fixed by the marketing department. One area is covered only by one trike and no under can go trike and no under can go into the are of other under. Every under from town, the vain area of his duty, is supposed to cover the near by village are on any one day of the week. The idea of trikes has generated a lot of jobs for unskilled people.

Throughout Pakistan, there is a retailer base of approximately 30,000 however in case of ice cream, the number of retailers is about a third. The manufacturer retailer relations begins when the ice cream manufacturer gives the retailer a freezer to stock the company’s ice cream. This is the biggest incentive to them and make their honor brand to ensure that the freezer is stocked only with that particular manufacturer’s ice cream.

A margin of 18% is given to the retailers because apart from good profits provisions of the running cost of freezer is also adjusted which is to be paid by retailer.

Direct Selling

By Using Sales Force

Walls also has a very well trained sales force. This sales force include only HBAS from removed institutions did they perused only major clients. Like restaurants etc.

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 you don’t see a walls refrigerator on shop or hear the sweet tone of the tricycle. Walls has tried its best to ensure the availability of the product as close to the customers as possible and walls is very much successful in this.

Distribution Strategies

Walls have very effectively used both of there strategies and its distribution plan has elements of both of them.

Push Strategy

Features of push strategy include incentives like free deep freezers, discounts on bulk purchases and eligibility for schemes such as free camera tickets based on specific columns of ice creams sole.

Pull Strategy

Pull strategy is supported by advertising campaign that reminds and persuades customers to buy ice cream. This is facilitated by price off which are frequently offered by the company.

PLC is the sales of a particular product over a period of true. The PLC’s of products in the product mix give the situations of company and also have effect on survival of company PLC vary from brand to brand.

Most of the brands in the product mix of walls are at maturity stage and few are at introduction and growth stage. The PLC of all the brands would be discussed collectively.

Introduction

In this stage are new brands like choc dip and walls kulfi which have bee recently launched.

Growth

The brand which is now building its market with ever increasing sales is solo fun 2. Also included in this race are polka from walls, which is family take home packs and polka cups. Their sale are increasing by the addition of new flavours.

Most of the brands of walls are in this category and their market has matured. They include cornetto, Max, fest, big slice, big three etc, maturity stage, is featured by the characteristic that the existing product is relaunched with the addition of new features or just by the change of the name. Save process was done by walls when its paddle pop was relaunched with the name of Max.

There are also few brands which are at his stage. Paralline choc is an example of this category.

Brand identifies that maker or seller of a product or it is simply the name of product. Brand names not only play an important positively but also firms conduct special resources for brand names a sit plays a important role in product life cycle and success of product.

Walls has always taken special care in selecting brands. Walls try to ensure that brand name should be easily undertook and pronounced and easy to promote.

Multiple Branding

The branding strategy followed by walls is multiple branding in which different brands introduced by the company are in the same product line that is ice cream. Walls has not expanded its business in other fields other than ice cream.

On this aspect of marketing walls is playing maximum attention because this is the only way to ensure customers of the company for future are available while other marketing activities are short term oriented.

When we talk about brand loyalty, then there must be strong give. Take relationship between company and consumer. The company should give consumer some thing in return of which the consumer becomes brand loyal. In walls the flyships of brand loyalty are

Consistent Quality

Consistent quality is what and using it as a competitive advantage. Customer are sure that whenever they will buy any product of walls they will get the same quality which they are expecting and had experienced previously.

This is done through the high tech manufacturing equipment in two factories of walls which is further facilitated by strict quality control process which are proved on international standards of walls.

Hygiene

The perception of most of the people in Pakistan about ice cream is that it is not good for health and causes fevers, sore throats and other diseases. All there perceptions are based on their expressive with unbranded ice creams. But in walls hygiene is given top priority. The plants of unilever all over the world keep the height standards of cleanliness to ensure hygiene of the workers water working there but also of the product being manufactured there.

Recently a –level of doctors visited Lahore factory and saw the operations of the factory and observed how hygiene is maintained in manufacturing ice cream. The result of this was published in leading magazines of Pakistan in which doctors recommended walls ice cream that this is the safest ice cream and parents can buy their children walls ice cream with 100% confidence that it is not harmful for health. Also, the very first thing recommended after tonsil operation is eating ice cream.

Apart from consistent quality and hygiene walls used to arrange trips of different schools to the factories so they can see the operations and also taste the ice cream. These trips are served with free ice cream and in huge quantities. In this way, children get a chance to try new brands fo the company and make an idea about quality of product. Once they are satisfied with the product, then they stick the product. The children are the most brand loyal segment of any market.

Keeping in view the importance of packing some markets have a tendency to verify it as a 5^th place of marketing mix. Packing involves decision making about

In ice cream business the importance of packaging is even more as compared to any other product category. This is due to the purchase nature of product. If manufacturer wants that the product should reach in hands of the customer with the same quality with when it was produced then the packaging of the product must be considered very carefully.

Packaging At Walls

Aesthetic Sense

Walls try its best that the packing of the product should match with the taste of the target market. For products for which target market comprises of children, the packaging is very multi coloured and attractive to absorb their attention where as for take home packs like love ice cream, where loyal consumers are the twenty something and above, sober two colour schemes are preferred to avoid over stepping what the product symbolizes.

While packaging legal requirements are also fulfilled while used in the manufacturing of product, its weight name of the manufacturer, price and statement on the package should not directly in the competitor and this statement should not home anything against nation, culture and religion.

It is the top priority of unilever that the operations of all its factors. Business of all the associated companies of unilever must by environment friendly. Save rule is followed in packaging of the product. In packaging that material is used which is easily recycle able and which does not damage the environment. For this reason, most of the products are packed in special proper to ensure recycleability.

Competition is also followed while designing packaging of product. The package of the product must compete with the parallel products. For example if competitor has launched family packs in plastic tubs then you should also launch the family pack in plastic tub so the ice creams does not drip and mobility is improved. This was exactly followed by walls in landing the praline tub In response to the Igloo’s supreme ice cream tubs.

This is the last P of marketing mix and it is the activity of communicating about the producty to

Companies inform the people when they don’t know about the product, persuasion takes place when people already know about the product and company focus then 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 a firms in many ways. It helps to establish many of product which the manufacture want to betray 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.

Walls has the biggest spend on promotions in the industry. Electronic media print media, outdoors, all are claminated by walls. Walls access to for 80% share of the total ice cream promotion spend in Pakistan.

Walls not only effectively uses the traditional tools of promotion but also keep innovating in the field. The idea of trikes has changed the trend of promotion of ice cream in Pakistan.

At walls brand manager makes the promotion budget. While setting the budget a step wise process is adopted. This process is based upon lever’s research in many different countries of the world and is a standard at walls. Process consists of making budget in following steps.

This is used to determine the temp sum amount available for the promotion activities for given period of time.

This lampsome amount is then distributed among different brands which marketing department plans to promote. There only brand manager has an amount and this the amount company can afford for particular brand.

Brand manager then spends this amount according to the tasks and objective set for the particular brand.

Theme : the theme of advertisement varies with the product image and positioning. But walls follow the same theme internally. The advertisement run on TV are made in for foreign countries.

The objectives of advertising are the three basic areas which include informing persuading and reminding about different brands of walls.

The major emphasis is one of the electronic media due to its research. Now a days electronic media is the most effective media for advertising.

Reach, frequency and community of advertisement is decided by the brand manager and the media agency. And for this decision is budget and the brand strategy.

The scheduling of advertisements, are done on seasonal pulse because it is a seasonal product.

In media national rivers papers and magazines are used but the amount spent on electronic media.

After electronic media, out doors are found most effective by walls. This includes painting walls logos on shops and other points of Sale, posters, and use of walls umbrellas.

Sales Promotion

Amony the objective of sales promotion are awareness of the product and perruading consumers to give a trial. The objectives are recently extended by the addition of two more joints which are.

Many schemes are used by wall’s in which price offs and discount on bulk purchases are found most usful.

The feedback abut the sales promotion activities is very necessary to know they are effective in doing the required take or not this is done in two ways.

Wall’s is also trying hard in this fields. Different soial association and NGO and allneed to uirit the facilities of walls. In there schools, different associations of doctors and childerns forums are given special prefernes. All any with these uixtors came media people which then help in publicity of the company.

It is a fact that no organizations can work in vaccm and isolation. It is effected by internal and entrant factors which is also called environment of the organization. The environment has different effects based on situation. The analysis of environment is also called SWOT Analysis.

The changes in the internal environment of the company gives to opportunities and threats. A company can maximize its profit by exploiting opportunities and can grantee it existence by avoiding threats.

This gives the internal situation of the company, what kind of sources a company has there resources there define the strengths and weaknesses of the company. A company should use its strengths to their manimum and try its bert to oner came the weakness.

When we talk about strengths of walls there is a very long list but among there the important ones are.

i) Brand: one of the most important factor giving synergy effect to the activities walls is its internationally recognized brand have. Walls did not need to build brand awareness to that extent upto which other companies do because a lot of people are aware of the brand of walls and polka.

ii) Extensive distributors: The level to which walls has taken the distribution is not achieved by another product category. Even giants like Pepsi and coca cola fall below walls in this roce. Intensive distribution is a major advantage company has oner its competitors and of the mair reason of success of walls.

iii) Technology: walls manufacture ice cream in its plants which new latest technology which not only improves the quality of product manufactured but also increase efficiency by reducing costs. Walls has the latest plants in Pakistan.

iv) Imovation: in inter competition and dynamic environment to retain consumer mterest caustant inration is the rassal of the gave when we question about inreative in the cream industry then walls is the gave master. Walls keep on innerating new tastes and brands in a sontive.

There are hardly any weaknesses in this well managed and were planed company. When asked about weaknesses of walls the anrureer was staudardization according to walls marketing manager. This is the major weakness of company that it follow the strategy of stradoodization in its products.

i) unorganized sector: the major portion of ice cream industry in Pakistan is unorganized is unorganized. Only 48% of the total market is concurred by organized sector. In this situation there are huge opportunities for walls to capitalize the unorganized sector by organizing it and introducing branded ice cream in rural areas of Pakistan also.

ii) Stretching season: walls in changing the perception of ice cream ormption that it is a reasonal product. Walls have how associated their brand with heart and fceling by the change of logo and have came ant of the them of ssand......................................................

There are enormores opportunities for a walls with its entersoil distribution and stretched seasons, it will be able to increase its profits by billion of rupees.

For a giant like walls there are very few threats. Among the fw the major ones are:

i) for the last few years the economy of pakistan is on a demoard trand which has considerably reduced the disposable income of the customer. If this situation contonicd for few more years there it could be a big threat for walls.

ii) Import duties: The ingredients used by walls are mostly imported and the prices of its products are highly effected by the change in import duties. The frequent changes of policies by government about imports is a big threat to walls.

Uptil now walls has very successful adjusted to both internal and external environment and keeping in view the past and present performes we can engur that walls has a why bright future.

When marketing merger was asked alsent this question he angmered that walls future is very bright and with few years we will get the 100% market share of ice cream market. With the efficiency and effectively walls is marging its operates it can be guessed with greater surety that this would not be a difficult target for walls.

The basic oriatation of this report is to study appliation of basic comepts of marketing. In this regard follwing request has been followed.

v In the begining company profile has been given to give an introduction about the company.

v Next feature of this report is the complete analysis of the firms in competition in ice cream industry, this is the hallwork of this report.

Lever brothers will be the foremost consumer producers company in Pakistan with are, skin, ice cream and spread. Already position in tea, hair, dental and house hold 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.

Preface