Professional Documents
Culture Documents
By:
Hammad Ahmed 1259102 Sikandar Rauf Khan 1258119 Zarrar Azeem 1259103
Dedication
This report is dedicated to our parents for their endless support, love and sacrifices and to respected Sir Imran Qamar for being a beacon of light in our academic paths.
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Acknowledgement
All praise be to Allah, the lord and cherisher of the universe. May his peace and blessings be upon prophet Muhammad (PBUH), his household, companions and all followers of the right Guidance till the Day of Judgment. First of all we are thankful to ALLAH Almighty who has created us, gave us the power to understand and the power to gain knowledge. Without His kind guidance we would have not been able to complete any task given to us. We are grateful for the guidance which has been allotted to us from Allah Almighty to understand and gain knowledge. Allah, the Exalted, says: "Are those who know equal to those who know not? It is only men of understanding who will remember. "We give honor and privilege to our respected resource person who helped us in thinking in the right direction by giving us this challenging task.
We would also like to thank our families, who added a boost to our confidence, and are always praying for our success.
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Table of Contents
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Behavioral Segmentation ......................................................................8 Positioning the Product: ...............................................................................8 Market Attractiveness ..................................................................................8 Factors of Market Attractiveness ..........................................................8 Marketing Information System ....................................................................2 Internal Records ....................................................................................2 Marketing Intelligence ..........................................................................2 Sampling ...............................................................................................2 Marketing Research ..............................................................................3
5.1.1 5.1.2 5.1.3 5.1.4 5.2 5.2.1 5.2.2 5.2.3 5.2.4 5.2.5 5.3
Political Environment ...........................................................................8 Economic Environment ........................................................................8 Social Environment ...............................................................................8 Technological Advancement ................................................................9 Porters Five Forces Analysis of Walls ......................................................9 Threats of new entrants .........................................................................9 Substitutes .............................................................................................9 Bargaining power of suppliers ..............................................................9 Bargaining power of Customers ...........................................................9 Intensity of rivalry.................................................................................9 SWOT Analysis..........................................................................................10
6.5.4 6.5.5 6.6 6.7 6.8 6.9 6.9.1 6.9.2 6.9.3 6.9.4
Serviceability ......................................................................................12 Fit and Finish ......................................................................................12 Quality Reputation of the Brand Name ......................................................12 Product Life Cycle .....................................................................................13 Position of wall's in product life cycle .......................................................13 Four Ps of Walls........................................................................................14 Product: ...............................................................................................14 Pricing .................................................................................................15 Placement ............................................................................................17 Promotion............................................................................................18
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CHAPTER - 1
1 Company Profile
1.1 Introduction
Walls was bought by Mac fisheries in 1920 who then sold Walls to Lever Brothers in 1922. From 1922 to 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. Walls ice cream started production. Walls ice cream introduced in 1995 in Pakistan under Unilever brand.
The decade starts with the launch of Path to Growth, a five-year strategic plan, and it further sharpens its focus on the needs of 21st century-consumers with its Vitality mission. Ice cream is made from milk, fat and sugar. These are cooled as they are mixed, then whipped to create a light, airy texture. Flavorings, fruit or chocolate are added then the whole mixture is frozen again before packaging. Walls have been continuously adding new products to its range. As a result Walls has registered a significant increase in its sale volume during the last ten years in Pakistan. 1.2.1 Highlights about Unilever 1.2.2 Mission Statement
Unilevers
Founded 1930 Headquarters London, England and Rotterdam the Netherlands Worlds leading margarine producer Worlds leading soap and detergent maker Worlds leading maker of packaged tea Worlds leading ice cream maker One of the Worlds largest consumer products company
mission is to add vitality to life. We meet every day needs for nutrition; hygiene
and personal cares with brands that help people feel good, look good and get more out of life.
CHAPTER 2
COMPANY ANALYSIS
CHAPTER 3
MARKETING ANALYSIS
Market Share
This is segmenting the market on basis of location the factors contributes in its 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. 3.2.3 Behavioral Segmentation Occasions: For regular occasion Benefits: Quality, taste
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 centre from where it goes to the specific person 3.5.4 Marketing Research Marketing research at Walls is very organized. They have a research department which conduct 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.
CHAPTER 4
PRODUCT ANALYSIS
4.2 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 buy the product. Packaging of wall's also containing information about the product
4.3 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. 4
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.
4.4.2 Ice-Cream Purchase Behaviors Respondents were asked to think about their ice-cream buying in general (rather than most recent occasion/purchasing of favorite brand/variety) and to determine which of three statements best applies to them. Most (around 6 in 10) would prefer to buy their favorite, but will buy another kind if it is not available. The vast majority of the remainder are generally happy to choose from what is available.
FEAST
CORNETTO
MAGNUM
CHAPTER 5
5.1.4 Technological Advancement High machinery is placed in main manufacturing units of walls. This technology is growing day by day which is affecting the manufacturing of ice cream and publicity of company. Walls are affordable and easy to eat with great taste.
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CHAPTER 5
6.1 Product
Wall's is a consumer product with a very long range of ice cream brands. 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 a good image in the mind of the customer which resulting the customer loyalty about the Product.
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6.5 Durability
6.5.1 Conformance to Specifications Absence of defect has been a major focus of the Walls. It has been the primary focus of ice creams quality improvement program. Walls relied heavily on broad product line. 6.5.2 Features Wide variety of features both standard and optional to offset this shortcoming on some of the other quality Dimensions. 6.5.3 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. 6.5.4 Serviceability The quality diminution of service ability refers to customer ability to obtain prompt and competent services when customer needs ice cream. Walls organization decided to provide 24-hour 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 generalize form quality Dimensions that are move visual or qualitative. 6.5.5 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.
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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.
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. During the first stage of a product's life cycle, It is launched in to the marketing a full-scale promotion and marketing program. The entire product may be new, or the basic product may be well known but have a new feature of accessory that is in the introductory stage. There are a high percentage of product failures in this stage. Operations in the introductory period are characterized by high costs, low sales volume, net losses, and limited distribution. However for really new products, there is very little direct competition.
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6.9.1.2 Brand Mark Brand mark is a part of brand that appears in the form of a symbol, design, 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. 6.9.2 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. 6.9.2.1 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 and Profit Market growth Pricing objective of Wall's are market growth, sales volume and also making profit. To achieve these objectives Wall's often add new features in the product and also decrease its price. 6.9.2.2 Product Line Pricing Setting the price steps between various productions in product line, based on cost difference between the production, consumer evaluation of features, and competitors prices Walls has very long range of its line of products. 6.9.2.3 Price Adjustment Strategies Wall's uses the same price strategies for all regions. They are giving 5%discount to their wholesalers and 7% to their retailers. Company provides off-season quantity discount (3 extra ice cream pieces on the purchase of a cart onto their dealers.)
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6.9.2.4 Pricing strategies There are two main strategies for pricing, which the companies adopt. Market-Skimming Pricing Market-Penetration Pricing
6.9.2.4.1 Skimming Pricing Market skimming involves setting a price that is high in the range of expected prices. This strategy is particularly suitable for new product because in the early stages of a product life cycle, price is less important and competition is minimum. Product user is from high-income group and they are financially strong and they are not price conscious. Profit margin is high. We cannot set this strategy for a long period of time because after some time competitor arrives in the market and competition among them start. 6.9.2.4.2 Penetration Pricing Establish distribution centers all the cities where the Ice-cream to be supplied, these distribution centers will have a storing facility that is a large freezer room for storing the icecream, the temperature maintained in the freezer room will be -50 degrees Centigrade. These distribution centers will be responsible for the flow of product. They will take orders from a market, fill them and provide on time delivery to the retailers. These distribution channels will be run by the whole sellers, they will required to keep a certain level of inventory to fill the customers orders promptly, completely and accurately. Each city will have one distribution Centre that will cover the whole city. As set earlier that ice cream is a very delicate food and should never be allowed to rise above -18 C for super market products. Scoop ice-cream should be stored and transported at -18 C, but may be dispensed by retailer at -15 C. ice-cream is stored at colder temperatures than most other frozen food and needs extra special care. When ice cream is allowed to rise above these temperatures then this is called "Temperature Abuse". This will lead to "Heat Shock", where large ice crystals form and the product starts to shrink. These defects can never be reversed. So it becomes a very important to transport ice cream in truck with heavy-duty freezers. The distributor should always take care of trucks and keep them properly maintained. Smaller trucks are used for deliveries within the city and big one for the transportation of ice cream from production plant to the distributors. 16
6.9.3 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 everywhere city, town, street, market etc. In tricycle the soft music continuously singing a bell witch is the identification of Wall's. Through this Wall's also make sales promotion and people often 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. 6.9.3.1 Distribution Channel Distribution channel consists of all the people and organizations, which are involved, in the physical distribution of goods. Selection of proper distribution channel is very important aspect because if the channel is managed efficiently. Companies can save high costs and thus generate profits. The cooperation of channel members is also of vital importance. Distribution is making the product available but this availability should ensure that product must be: At right place At right time In right condition
If there is any deficiency in any of these basic elements of distribution, the future of product would be uncertain. Distribution is such an activity, which could decide the fate of the product.
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WALLS has a Hybrid Distribution System. It reaches different customers through different systems. WALLS is using two types of distribution channels, both are indirect channels.
PRODUCER
DISTRIBUTOR
RETAILER
CONSUMER
This is commonly used, in which the WALLS factory send the products to the local distributors who supply the products to the retailer in the required quantity. The retailer then sells it to the customer. The specialty and effectiveness of this system is excellent. The reason for such an excellent distribution system is the distribution policy. If a retailer wants to sell an ice cream, the investment he needs to do is as:
Retailer
Others WALLS
Thats why most retailers are attracted to the WALLS. Another important thing which needs to be discussed about the distribution is that during this distribution channel, the standard temperature of the cold chain is maintained. 6.9.4 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. 6.9.4.1 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. 18
6.9.4.2 Personal Selling Personal selling is the presentation of a product to a prospective customer by a 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. 6.9.4.3 Advertising Advertising is the promotion of product or services through wide variety of messages transmitted through different media. 6.9.4.4 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.
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CHAPTER 6
7.1 Recommendations
In the end we are going to give some recommendation to Wall's that how they can increase their sales and gain maximum profit. There is a gap in the market for Diet Ice Cream. Walls should introduce it because they are financially strong company. Through this they can capture big market of the people who are health conscious. Wall's should increase its distribution area and should go in that area where Wall's is not available. They should continuously advertise on different media. Concentrate on delicious taste not too sweet or too fruity. Saving schemes should be introduced on special events like Ramadan. Through this their sale will increase.
7.2 Conclusion
In this project we discuss the history of the walls company and product line in Pakistan. There are many competitors in the market. After the analysis this company is the number one ice cream company in Pakistan. This company is the project of Unilever they sold Walls to Lever Brothers in 1922 this company is not only in ice cream but they Walls ice cream introduced in 1995 in Pakistan under Unilever brand. Unilever is one of the biggest brands in Pakistan and 56 other brands are registered under Unilever is FMCG Company and is selling 150 million products daily all over the world. It is just because of development and usage of information technology in the strategy and operations.
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