Walls

Presented by Adeel Ahmed Maham Zahid Waqas Mahmood Ammar Ali Wajid Hussain Usman Ali

History of Walls
Walls 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. Mac fisheries bought walls in 1920 who then sold Walls to Lever Brothers in 1922. In 1922, Walls ice cream started production. A love affair with ice cream had begun. By the 1950s, wartime rationing produced a big appetite for ice cream sales reached 46 million by 1959 and Walls opened a large ice cream factory in Gloucester. Supermarkets began to stock ice creams in addition to small high street shops. Market research in the 1970s showed that practically everyone loved ice cream. 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.

Walls in Pakistan
Also in Pakistan the Heart brand is called Walls and it is one of the most active players in the market and is striving to offer lighter, healthier products as well as providing old favorites, hence catering to a variety of diverse tastes. Secondly it is the largest player in the Pakistan ice cream market and holds the lions share of the market. The Walls factory in Pakistan is located on Multan Road in Lahore. The factory was constructed in 1994, and its production started in the year 1995.It is fully equipped with a state of the art innovation pilot plant. This makes Pakistan one of the few countries in the region to have their own innovation pilot plant, making it possible for Walls to launch exciting new products every year. In the first year of there operations the total production of ice cream was 4 million liters. In 1994 Lever Brothers Pakistan tried to acquire Polka Ice Cream for Rs 600 million. Polka refused the bid, demanding instead Rs 1 billion. One year after the launch of Wall's Ice Cream by Lever Brothers in 1996, Polka approached Wall's with an offer to merge the two companies. So they merged in 1996 and now it is called Wall's not Polka. Mention ice cream and most people in Pakistan think Walls, Pakistans leading ice cream brand. Throughout the years Walls brand has brought to Pakistanis a number of much loved classics from the seduction of magnum, sharing of Cornetto with your loved ones to the refreshing taste of paddle pop. The Walls brand stands for a good time. From affordable treats to premium indulgence, to hanging out with friends and sharing precious family moments; Walls adds to the simple pleasures in daily life. Walls is a trusted ice cream and frozen desserts brand in Pakistan. The ingredients are procured locally and from international sources. All Walls products in Pakistan are Halal, and every care is exercised to ensure that the ingredients are reliable and conform to local and international standards.

Marketing Environment (PEST analysis)

Successful companies recognize and respond profitably to unmet needs and trends. Companies could make a fortune if they are able to deal with the environment efficiently. Demographics The demographic environment is of major interest to marketers because it involves people, and people make up the markets. The firms have to closely analyze customers age, gender, occupation, income and other statistics in order to set the perfect target market for their product.. Economic Environment Markets require purchasing power as well as people. The available purchasing power in an economy depends on current income, prices, savings, and debt and credit availability. Marketers must pay careful attention to trends affecting the purchasing power because they have a strong impact on business. As in this case the scenario is different because the product is not price sensitive and caters to all income classes. Socio cultural Environment The cultural environment is made up of institutions and other forces that affect our society basic values perceptions, preferences and behaviors. People grow up in a particular society that shapes their basic beliefs and values. Mostly children belonging to all societies and culture have same behaviors. Little kids love eating ice creams and usually chocolate are their favorite flavor. So the culture in which Walls operates is not very complex rather it is quite favorable.

 Political & legal Environment Marketing decisions are strongly affected by development in the political and legal environment. This environment is composed of laws, government agencies and pressure groups that influences and limit various organizations and individuals. There are certain legislations and government agency enforcement which compile firms to show socially responsible behavior. Walls also does not face any threats from these conditions as it follows and fulfils all food laws and legal requirement imposed by the state authorities. Technological Environment One of the most dramatic forces shaping peoples life is technology. It is force that creates new product and new market opportunities. Like all other businesses technology also affects the operations of Walls directly. As Wallss owns and operates a highly automated production plant and as most of its machinery and equipments is imported the company has to be on its toes when it comes to adapting to new and advance technological changes. The machine used for filling condensed milk in the upper layer of choco stick was also very technologically advance and unique as previously no other company had used such a technique before.

Mission and Marketing Objectives

Mission Statement: As one of the leading brand of Unilever the mission statement of Walls is: To add vitality to your life while being responsible about good nutrition Marketing Objectives of Walls include: To defend current market share Sales growth Customer satisfaction Continue product modification and improvement effort to increase customer benefit and to reduce cost Expand production capacity in advance of increasing demand to avoid stakeout Develop a multiple line extensions offering targeting to the needs of several user segments in the market Meet and beat the lower prices or heavier promotional efforts by competitors Provide superior quality to consumers in order to retain the current customers and target the potential customers

Marketing Research
Walls is a company which does not launch its product without carrying out extensive marketing research. As Walls is a very vast company its marketing research is done in a very organized manner. The specialized research and development department carries out the research and they analyze the market conditions before introducing a new product in to the market. Walls tends to identify and define both its marketing problems and opportunities and evaluates marketing actions as this a means of reducing risk and uncertainty. Before launching Paddle Pop Walls carried out marketing research techniques such as conducting tasting session and getting feedback from children regarding the product. Walls also undertakes research to attain information regarding changing trends and economic conditions.

Market Segmentation
The characteristics upon which the market of Walls has been segmented are demographic, geographic, psychographic and behavioral. Demographic Segmentation Under the demographic segmentation variable Walls has segmented its market according to age and income. Age: Walls has introduced a wide variety of ice creams which cater to all age groups such as the kids, youth and even adults since the consumers needs and wants change with age. The Paddle Pop range is mainly for the kids.

Income: Walls ice cream caters to all the income groups and since the price of Paddle Pop is relatively low its aims to target people from all income groups who can afford the product.

Geographic Segmentation Under the geographic segmentation variable Walls has segmented the market in terms of the country region, density. Country region: Walls has segmented the market according to North (Islamabad, Peshawar and Northern areas), Central region (Lahore and Central Punjab) and South (Sindh and Balochistan). Psychographic Segmentation Walls has segmented the market in terms of social class and under psychographic segmentation.

Social Class: Walls ice cream caters to all the social classes which include lower class, middle class, upper middle and upper class as the prices of their ice creams range from very low to high and people from all social classes can afford it. Walls has segmented the market in a way that people from all social classes can afford the ice cream as the price that is kept is not very high. Behavioral Segmentation Under behavioral segmentation Walls has segmented its market in terms of benefits. Walls tends to cater to a segment of consumers who seek for benefits such as mainly taste and quality in the product. Since kids like to consume products which taste good, by introducing a range of flavors of Paddle Pop ice cream, Walls makes sure that kids consume the flavor that suits their taste.

Target Market
Target market allows the organization to focus on an appropriate set of potential customers whose needs can be profitability met. Walls tends to target people from all income groups or brackets as the price range of Paddle Pop has been set in a way that even people in the lower income brackets can afford it. The variation in price and the variety of flavors allows Walls to target each market segment effectively.

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Product Positioning
Positioning is the use of marketing to encourage people in a products target market to form a particular mental image of the product relative to competing products. Pyrata has been positioned in the minds of children as something which would take them into the fantasy world of strong, fearless pirates and the lion represents strength as children would start to think that eating paddle pop pirates and choco stick would make them feel strong. Simmilarly Cornetto is positioned in consumers mind as a symbol of love and sharing a good time with our loved ones.

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Pricing Strategy
The pricing objectives of Walls are market growth, sales volume and also making profit. To achieve these objectives Walls tends to add new varieties in the product range and also decrease its price. The overall pricing strategy that has been adopted by Walls for the Paddle Pop range is market penetration as they have set a low price for the new product in order to attract a large number of buyers and a large market share. The strategy used for pricing of the Paddle Pop range specifically is value pricing in which the prices are held steady while improving product benefits. This low price is especially is kept to attract children who normally have limited amount of money in their pockets. A number of children were also interviewed and asked about what they think about the price of choco stick, Zapper and Paddle Pope Pirates .Many commented that it was cheap and they often purchased the ice-cream from Walls carts outside their schools .A boy also commented that her mother was more willing to buy him choco stick than other icecreams of walls because it was cheap. Children generally love chocolate and ice-cream such as the paddle pop range is a treat for them at a very economical price.

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Promotional Mix
In economic terms, the role of promotion is to change a firms demand curve- either shifting it to the right or changing its shape to make demand more inelastic when prices increase and elastic when prices decrease. In marketing terms it means informing, persuading and reminding existing or prospective consumers. The primary methods of promotion are personal selling, advertising, sales promotion and public relations. Designing an effective promotion mix involves strategic decisions about five factors: (1) target audience, (2) objective of the promotion effort, (3) nature of the product, (4) stage in the products life cycle, and (5) amount of money available for promotion. Following are the four factors of promotional mix for Walls:

Advertising: TV Billboards News papers Magazines Radio Banners Pamphlets Stands in shops Shop boards Sponsorships of pop stars, actors, models Event arrangements Bus Stop Board Ads Fun carnival carried out in different parks such as Racecourse Park

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In order to advertise, Walls has created a personality symbol which is character that represents the products. Sales Promotion: WALLS has been undertaking a number of sales promotion activities like the: 1- Cycling System: WALLS started its cycling system for awareness but after that its task was modified into doing sales promotions for the company. And also cycling system has proved excellent in terms of sales and promotion. 2- Discount Coupons: WALLS launches very low price products for the purpose of both market expansion and sales promotion. Personal Selling: Personal selling in regard to Walls is the mobile sellers introduced by Walls that provide door to door service. The jingle that is played is the identification of Walls and it leads to increased sales.

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