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Assignment:
Management
Topic:
Walls ice cream
Assigned By:
Sir Mazhar Hayat
Assigned to:
Usman Maqsood (40)
Sajjad Rashid(60)
WaqarAsim (50)
Zia urRehman
(53)
Table of contents
Ice cream industry:......................................................................................................................5
Introduction of Company:............................................................................................................6
Walls:...........................................................................................................................................6
CURRENT MARKET SITUATION:..........................................................................................7
Walls in Pakistan:.........................................................................................................................8
Competitors Analysis:..................................................................................................................8
Products:......................................................................................................................................8
Ingredients...................................................................................................................................8
Structure and Hierarchy:............................................................................................................10
Ehsan A. Malik - Chairman & CEO:.......................................................................................11
Ali Tariq - CFO:.........................................................................................................................11
Amar Naseer:.............................................................................................................................11
Amir Paracha:............................................................................................................................11
SWOT ANALYSIS OF WALL'S:..............................................................................................11
STRENGTH:.........................................................................................................................12
WEAKNESSES:....................................................................................................................12
OPPORTUNITIES:................................................................................................................12
THREATS:.............................................................................................................................12
SEGMENTATION:....................................................................................................................12
DEMOGRAPHIC SEGMENTATION:.................................................................................13
GEOGRAPHIC SEGMENTATION:.....................................................................................13
BEHAVIORAL SEGMENTATION:.....................................................................................14
TARGET MARKET:.............................................................................................................14
POSITIONING THE PRODUCT:.............................................................................................14
Market Attractiveness:...............................................................................................................15
Marketing Information System:.................................................................................................15
Internal Records:........................................................................................................................15
Marketing Intelligence:..............................................................................................................16
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Sampling:...................................................................................................................................16
Marketing Research:..................................................................................................................16
MARKETING MIX STRATEGIES:.........................................................................................16
PRODUCT:............................................................................................................................16
Product Differentiation:.............................................................................................................17
DIMENSION OF PRODUCT QUALIY IN WALLS ICECREAM:........................................17
FUNCTIONAL PERFORMANCE:......................................................................................17
DURABILITY:......................................................................................................................17
CONFORMANCE TO SPECFICATION:.............................................................................17
Features:.................................................................................................................................18
Reliability:.............................................................................................................................18
Serviceability:........................................................................................................................18
Fit and Finish:........................................................................................................................18
Quality Reputation of the Brand Name:................................................................................18
PRODUCT LIFE CYCLE:........................................................................................................18
PRODUCT LIFE CYCLE STAGESINTRODUCTION:..........................................................19
Introduction Stage:.................................................................................................................19
Growth:..................................................................................................................................19
Maturity:................................................................................................................................19
Decline:..................................................................................................................................19
4Ps of Walls:.............................................................................................................................19
1.
Product................................................................................................................................19
Core Product:.........................................................................................................................19
Actual Product:......................................................................................................................20
Augmented Product:..............................................................................................................20
Brand Name:..........................................................................................................................20
Brand Mark:...........................................................................................................................20
2.
Pricing:................................................................................................................................20
Pricing Objectives:.................................................................................................................21
3.
4.
Placement:...................................................................................................................21
Promotion...........................................................................................................................21
4
Promotional Methods:...........................................................................................................21
Personal Selling:....................................................................................................................21
Advertising:...........................................................................................................................22
Sales Promotion:........................................................................................................................22
5.
Packaging............................................................................................................................22
Labeling:................................................................................................................................22
Design and Color:..................................................................................................................22
Departments:..............................................................................................................................23
The meaning of the phrase "ice cream" varies from one country to another. Phrases such as
"frozen custard", "frozen yogurt", "sorbet", "gelato" and others are used to distinguish different
varieties and styles. In some countries, such as the United States, the phrase "ice cream" applies
only to a specific variety, and most governments regulate the commercial use of the various
terms according to the relative quantities of the main ingredients.
In the Persian Empire, people would pour grape-juice concentrate over snow, in a bowl, and eat
this as a treat. This was done primarily when the weather was hot, using snow saved in the coolkeeping underground chambers known as "yakhchal", or taken from snowfall that remained at
the top of mountains by the summer capital Ecbatana. In 400 BC, the Persians went further and
invented a special chilled food, made of rose water and vermicelli, which was served to royalty
during summers. The ice was mixed with saffron, fruits, and various other flavours. Ancient
civilizations have served ice for cold foods for thousands of years. The BBC reports that a frozen
mixture of milk and rice was used in China around 200 BC.
Arabs used milk as a major ingredient in the production of ice cream and sweetened it with sugar
rather than fruit juices. It was flavoured with rosewater, dried fruits and nuts. It has also been
claimed that, in the Yuan Dynasty, Kublai Khan enjoyed ice cream and kept it a royal secret until
Marco Polo visited China and took the technique of making ice cream to Italy. In the sixteenth
century, the Mughal emperors used relays of horsemen to bring ice from the Hindu Kush to
Delhi, where it was used in fruit sorbets.
Introduction of Company:
Lever Brothers Pakistan limited brought Wall's ice cream to Pakistan in 1995.The instant success
of Wall's and clear consumer preference for the brand proved the willingness of the Pakistan
market to support high quality, hygienic, innovative product. Keeping in view the strategy, Wall's
Launched five new products at the start of the 1997 ice cream season, namely Cornetto Mango,
Feast Kulfa, Split Strawberry, Mini milk sammar and Solo Cola, These products have not only
fuelled volume growth but also helped in maintaining and stimulating consumer interest.
Moreover, the drive of volume growth continued through geographical expansion with the
addition of new concessionaires and satellite towns.
The area in which we are interested is food and beverages. Unilever is one of the largest
companies of this field and is a subsidiary of Proctor and Gamble (P&G). Unilever has many
consumer products. Some of its popular brands are Surf Excel, Dove, Lux, Knorr, Brooke Bond,
Lipton, Fair & Lovely, WALLS, Dalda, and Sun Silk etc. LBPL started its operations in 1948.
And presently its headquarters is at Avari Towers Karachi. LBPL was incorporated as an
independent Unilever company in 1955. Lever brothers have a sizzling market share of 60% in
Pakistan. And their field of business includes Tea, Detergents, Personal hygiene, Edible fats,
Consumer products and Ice cream. It is offering total of 46 products in Pakistan out of which 26
are profitable and during the year 2002.
Walls:
Wall's is the brand name of Unilever's Heart brand ice cream business, used originally in the
United Kingdom and also currently (2006) in China, India, Indonesia, Jordan, Lebanon,
Malaysia, Maldives, Pakistan, Qatar, Saudi Arabia, Singapore, Sri Lanka, Thailand, United Arab
Emirates and Vietnam.
Walls was founded in 1786 by Richard Wall, when he opened a butchers stall in St Jamess
Market, London.
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In the 1900s the business was led by Richards grandson Thomas Wall II. Every year the
company had to lay off staff in the summer as demand for its sausages, pies and meat fell, so in
1913 Thomas Wall II conceived the idea of making ice cream in the summer to avoid those layoffs, the First World War meant that his idea was not implemented until 1922. By that time the
business had been jointly bought by Lever Brothers and Margarine Unie. Maxwell Holt was put
in charge and he revived the idea of producing ice cream, with near instant success. Ice cream
production was commenced in 1922 at a factory in Acton, London. In 1959, Wall's doubled
capacity by opening a purpose built ice cream factory in Gloucester, England.
Walls in Pakistan:
Walls came to Pakistan in 1995 establishing the Walls factory on Multan Road in Lahore. Fully
equipped with state of the art machinery, the Walls factory is a standard of hygiene and
technology in the region and has become synonymous with quality. Some of the most popular
brands loved by the masses are now linked to Walls; making an irresistible combination that few
could refuse.
Competitors Analysis:
There are major steps in an analysis of competitors after identifying the present and potential
close rivals. The analysis consist of examine objectives strategy performance, strength and
weaknesses and then predicting the feature behavior of each, including the likelihood that each
will change its strategy and how it will respond to move make by other.
Competitors Evaluation Process:
Products:
There are several products of walls which are available in Pakistan. Today Walls divides its
manufacturing in two parts: The In Home and Out of Home ranges. The In Home range consists
of Walls famous family tubs and bricks and our Multipacks. The Out of Home range is a Walls
success story and includes brands like Magnum, Cornetto and Feast. The kids range is specially
formulated for little taste buds with favorites such as Rocket, Twister, Spin, and Moo.and shows
an understanding of childrens nutritional needs, such as the Big Milk which contains 70% milk.
Ingredients
Ice cream is made from ice (water), milk, fat sugar and natural flavors and colors. All of these
ingredients are necessary for you in your diet to lead an active lifestyle. From these ingredients
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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.
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Amar Naseer:
Amar joined the Board on September 30, 2013 and is currently the Legal Director and Company
Secretary of Unilever Pakistan Limited and Unilever Pakistan Foods Limited. He also holds
Directorship in Unilever Pakistan Limited, Sadiq (Private) Limited, Lever Chemicals (Private)
Limited, Lever Associated Pakistan Trust (Private) Limited and Unilever Birds Eye Foods
Pakistan (Private) Limited.
Amir Paracha:
Amir has been on the Board since January 21, 2010, as Vice President Marketing Home and
Personal Care. He began his career with Shell Pakistan and joined Unilever Pakistan in 2000 as
an Assistant Brand Manager. Amir was assigned the role of Marketing Director, Mass Skin and
Deodorants at Unilever North Africa Middle East in 2006 and returned to Pakistan 3 years later
as Marketing Director, Home and Personal Care.
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STRENGTH:
Financially Strong
Wide distribution, due to establish distribution channels
High Quality
Good image in the mind of Customer.
Aggressive Promotion schemes
WEAKNESSES:
Pure milk is not used in ice cream
There is no variation in Taste
OPPORTUNITIES:
Gap in Mkt. for diet ice cream, which Wall's can cover because they are more, establish
than others.
Walls proves itself to be quality oriented product and maintain good taste and standard,
than it would be able to create a strong position in all(Pakistan) for a long period of time.
THREATS:
Hico is also new comer, but rapidly increase in their Market share is a big threat for Wall's.
SEGMENTATION:
A market segment consists of a large identifiable group with a market. Buyers are differ in their
wants, purchasing powers, geographical location, buying attitude and buying habits Walls have
segmented market according to consumer characteristics and consumer response. Walls take
advantage for both these strategies. In identical consumer characteristics those whose
geographical, demographic and psychographic characteristics are common and from another
those customer who give much attention to benefits, occasions and brand.
Walls have divided market into these segments
1.
2.
3.
4.
Demographic segmentation.
Geographically segmentation.
Psychographic segmentation.
Behavior to word Product.
The walls segmented the entire market into such segments, which are differentiable through
these all factors.
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DEMOGRAPHIC SEGMENTATION:
Age:
Teenage, 20 to 40 years.
Family Size:
4 to 5 members.
Gender:
Both male and female.
Income:
RS 15,000 to RS 35,000.
Occupation:
Professional, Technical and Students, businessman
Social Class:
Middle Class, Walls introduce the brands for the younger as well as the children's. Walls
targeted both high as well as low-income gourds. In simple word we can say that wall's introduce
of all income and all age groups.
GEOGRAPHIC SEGMENTATION:
Region:
South Asian Region
Pakistan
Density:
Urban, rulers
Climate:
Both Northern & Southern
This is segmenting the market on basis of location the factors contributes in it is mainly, the
number of population of that area and the living standard of that particular location. The wall's
has been targeted both urban as well as rural areas.
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BEHAVIORAL SEGMENTATION:
Occasions:
For regular occasion.
Benefits:
Quality, taste
TARGET MARKET:
It is the process of evaluating each market segments attractiveness and selecting one or more
segments to enter. Some time companies are able to target every segment, because they are
financially strong and they can arrange a vast product line. Wall's have been introduce different
verities with different pricing of which some of area has high price that can only attract high
income group and walls has also different brands with low price which can be easily purchase
by low income groups. Walls is easily available in urban and rural areas all over the country.
Wall's has been targeted every segment and we can say that wall's has a Fragmented market.
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Market Attractiveness:
Wall has identified and described the various segments in given market, inmost 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
Competitive
Competitive structure Competitive groupings Substitute products Price Individual
competitor analysis
Internal Records:
The company keeps an internal record for information regarding fact and figures for more than
10 years. These internal records are very important while making a decision. Strategic changes
over the last ten years and their resulting impact on the performance of the firm helps make new
strategic changes. Sales figures for a specific season during the last two or three years help in
forecasting sales for the next period.
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Another benefit of internal records is that they can be accessed very quickly and their cost is
very low as compared to other sources of collecting information.
Marketing Intelligence:
The everyday information about the development in the marketing environment is called
marketing intelligence. This may include information about the everyday aspect of market,
concerning current market share, competitors strategy or some new law been enacted. There are
many sources we see at Walls that are used to collect information. Apart from the internal records
that keep track of the past, new information is collected through companys own personnel, i.e.
executives, product managers and general employees. For this an open-door policy is followed at
Walls to ensure timely arrival of any related information. This not only helps collect information
but also helps keep employee morale high.
Sampling:
Sampling is there when managers draw conclusion about large group of consumers by looking at
a small proportion of total consumer population. At Walls sampling is done through sales force.
Daily information coming from sales body is used to induct or to draw conclusion about
changing consumer taste. This is done by evaluating the daily performance of each brand as sold
by the sales force. Feedback is generally given to sales people who come up with ideas about the
changing preferences. Correct information is then directed to the information center from where
it goes to the specific person.
Marketing Research:
Marketing research at Walls is very organized. They have a research department which conducts
research whenever they launch a new product. Their R & D department analyzes the marketing
conditions for them. Apart from this research which is conducted when a new product is about to
launch, research to get information about the general changes in trends, economic conditions,
etc. time-to-time research is also get done through these research companies. Another important
issue is the timely arrival of this information. Since the continuous changes in the environment
may lead to a decline, timely and accurate information regarding these changes is important.
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Wall's has introduced a lot of brands with different flavors, the customers has so many options to
select the brand according to their taste. This creates good image in the mind of the customer
which resulting the customer loyalty about the Product.
Product Differentiation:
Different features or performances are not the only way a business can differentiate its offering.
The customer services can also effectively have maintained and advantage over competitor.
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Features:
Wide variety of features both standard and optional to offset this shortcoming on some of the
other quality Dimensions.
Reliability:
The reliability quality Dimensions of Walls ice cream refer to the consistency of performance
form purchase to purchase or to a products up time that it perform satisfactorily over its life.
Walls maintain a competitive advantage based on reliability by deign product with several
attribute, due to this reason walls ice cream maintain a strong position in Market segment
consisting of large scale ice cream user.
Serviceability:
The quality diminution of service ability refers to customer ability to obtain prompt and
competent services when customer needs ice cream. Wall organization decided to provide 24hour ice cream service any ware in the city. The many of this quality diminution can be difficult
for customer to evaluate particularly for consumer product. As a result consumer often
generalizes form quality Dimensions that are move visual or qualitative.
Fit and Finish:
A fit and finish Dimension helps convince consumer that a product is of high quality. They tend
to perceive attractive and well design as generally high quality.
Quality Reputation of the Brand Name:
The promotional activities of Walls that sustain that reputation are strongly influence the
consumer perception of a products quality in pursuing differentiation or cues the customer use to
judge quality and to pay attention to the seemingly less important but move visible attribute
features of product. Due this quality Dimension Walls become a market leader and enjoying high
profit rate.
1.Introduction
2.Growth
3.Maturity
4.Decline
A product life cycle consists of the aggregate demand for all brands comprising a generic product
category. A Company's marketing success can be affected considerably by its ability to
understand and manage the lifecycles of its products. Management must recognize what part of
the life cycle its product is in any given time. The competitive environment and resultant
marketing strategy ordinarily will differ depending on the stage.
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4Ps of Walls:
1. Product
A product consists of any good or services that can be offered to the market to satisfy a need or
want .In case of Walls, the products are the ice creams produced by the company.
Applying the three levels of product in case of Walls
Core Product:
Ice creams, as desert after meals.
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Actual Product:
The high quality level, different tastes, and shapes of the Ice creams, packaging and the heart
shape icon.
Augmented Product:
Walls provide taste and hygiene as well as nutritional ingredients. Ice creams may generally be
categorized as Convenience Products; products which consumers buy frequently, immediately
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.
2. Pricing:
"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 strategy depends
on pricing objectives.
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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.
3. Placement:
Wall'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 there is a soft music continuously singing a bell which 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.
4. Promotion
The marketing mix activities of a product planning, pricing, and distribution are performed
mainly within the organization or between the organization and its marketing "partners".
However, with promotional activities, the firm communicates directly with potential customers.
Promotion is the element in an organization's marketing mix that serves to inform, persuade, and
remind the market of the organization and its products.
Promotional Methods:
The promotional mix is the combination of personal selling, advertising, sales promotion,
publicity, and public relations that helps an organization to achieve its marketing objectives.
Personal Selling:
Personal selling is the presentation of a product to a prospective customer bya representative of
the selling organization. Across all business, more money is spending on personal selling then on
any other form of promotion. Its example is "SPDs" which is introduced by Wall's.
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Advertising:
Advertising is the promotion of product or services through wide variety of messages transmitted
through different media.
Sales Promotion:
Sales promotion is designed to supplement advertising and coordinate personal selling. Include
in sales promotion are such activities as contests for sales people and consumer, trade shows, in
store displays, samples, premiums, and coupons. There is a difference between advertising and
sales promotion, "advertising describes messages carried in media owned and controlled
primarily by people other than the advertiser, and media controlled by the company itself carries
"sales promotion" messages.
5. Packaging
The 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:
Labeling is another product feature that requires managerial attention. A labels 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 Color:
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 inconsiderable glamour and general promotional appeal in
product design and designers name. In the field of business products, engineering design has
long been recognizing as extremely important. Today, there is a realization of the marketing
value of appearance design as well. Color often is the determining factor in the consumer
acceptance or rejection of a product. Walls is using very attractive design and beautiful colors
for the customer attraction. All the wrappers provide some ideas about the flavor, taste, quality
and freshness of the product.
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Departments:
There are different departments operated in walls Pakistan, which are showed below with the
help of a diagram.
Services
Marketing
Human Resources ( hiring, benefits etc..)
Financial (includes AP, AR etc)
Purchasing
Sales
IT
Inventory
Quality Assurance
Insurance
Licenses
Operational
Customers
Staff
Customer Service
Organizational
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SPDs:
In this they touch the consumer directly by selling, they sell by tricycles and use many others
ways like online delivery.
Planning:
For planning purposes sales staffs follow the plans which are driven by the company but they
also plan for meeting the target or to operate their sales. First they use software to calculate the
target and the sale of upcoming month. A person who is the order taker of the company he goes
for the searching the orders for the next day and he has planned the different routs on which he
will go then he visited all the route and take order by a device that is connected to the distributed
system and there the orders are updated then the managers see all amount and the make plan for
the next day. They divide the routes and assing the vehicle and 3 people who will deliver the
stock to the customers this is all about the planning of the next day.
Organizing:
This is all about Assembling required resources to attain organizational objectives. For this the
RSM and ASM they asked everyone to do work and they assign the duties of the different people
to do what to or use the resources of the company.
Leading:
The higher managers lead the employees they train, educate and teach them about the work and
new environment.
Controlling:
After all this the TMs of the company make check and balance of the work they check the orders
deliver to the customers and they evaluate the work and they inspect all the transactions.
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