Walls Marketing Analysis

Contemporary Marketing Project on Walls Pakistan Instructor: Mr. Imran Qamar

By:

Hammad Ahmed – 1259102 Sikandar Rauf Khan – 1258119 Zarrar Azeem – 1259103

EMBA-2, SZABIST, Islamabad.

i

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.

ii

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

1 Company Profile .................................................... 1 1.1

Introduction ..................................................................................................1

1.2

Overview of Unilever ...................................................................................1

1.2.1

Highlights about Unilever .....................................................................2

1.2.2

Mission Statement.................................................................................2

1.3

Wall's Polka Acquisition: .............................................................................3

1.3.1

Taste the fun side of life: ......................................................................3

1.3.2

Making you happy ................................................................................3

2 Company Analysis ................................................. 4 2.1

Wall's - Global Leader .................................................................................4

2.2

Adding vitality to life ...................................................................................4

2.3

Core Objectives of Walls .............................................................................4

2.4

Organizational Chart ....................................................................................5

3 Marketing Analysis ................................................ 6 3.1

Current Market Situation of Wall’s ..............................................................6

3.2

Market Segmentation ...................................................................................7

3.2.1

Demographic Segmentation ..................................................................7

3.2.2

Geographic Segmentation .....................................................................7

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3.2.3

Behavioral Segmentation ......................................................................8

3.3

Positioning the Product: ...............................................................................8

3.4

Market Attractiveness ..................................................................................8

3.4.1 3.5

Factors of Market Attractiveness ..........................................................8 Marketing Information System ....................................................................2

3.5.1

Internal Records ....................................................................................2

3.5.2

Marketing Intelligence ..........................................................................2

3.5.3

Sampling ...............................................................................................2

3.5.4

Marketing Research ..............................................................................3

4 Product Analysis .................................................... 4 4.1

Wall's Promotional Method..........................................................................4

4.2

Packaging .....................................................................................................4

4.3

Labeling ........................................................................................................4

4.4

Design and Color ..........................................................................................5

4.4.1

Favourite Brand of Ice-Cream ..............................................................5

4.4.2

Ice-Cream Purchase Behaviors .............................................................6

4.5

Key products ................................................................................................6

4.6

BCG Product Matrix ....................................................................................7

5 Macro and Micro Analysis .................................... 8 5.1

PEST Analysis..............................................................................................8 v

5.1.1

Political Environment ...........................................................................8

5.1.2

Economic Environment ........................................................................8

5.1.3

Social Environment ...............................................................................8

5.1.4

Technological Advancement ................................................................9

5.2

Porter’s Five Forces Analysis of Wall’s ......................................................9

5.2.1

Threats of new entrants .........................................................................9

5.2.2

Substitutes .............................................................................................9

5.2.3

Bargaining power of suppliers ..............................................................9

5.2.4

Bargaining power of Customers ...........................................................9

5.2.5

Intensity of rivalry.................................................................................9

5.3

SWOT Analysis..........................................................................................10

6 Marketing Mix Strategies ................................... 11 6.1

Product .......................................................................................................11

6.2

Product Differentiation ...............................................................................11

6.3

Dimension of product quality in Wall’s ice-cream ....................................11

6.4

Functional Performance .............................................................................11

6.5

Durability ...................................................................................................12

6.5.1

Conformance to Specifications ...........................................................12

6.5.2

Features ...............................................................................................12

6.5.3

Reliability............................................................................................12 vi

6.5.4

Serviceability ......................................................................................12

6.5.5

Fit and Finish ......................................................................................12

6.6

Quality Reputation of the Brand Name ......................................................12

6.7

Product Life Cycle .....................................................................................13

6.8

Position of wall's in product life cycle .......................................................13

6.9

Four P’s of Walls........................................................................................14

6.9.1

Product: ...............................................................................................14

6.9.2

Pricing .................................................................................................15

6.9.3

Placement ............................................................................................17

6.9.4

Promotion............................................................................................18

7 Recommendations & Conclusion ........................ 20 7.1

Recommendations ......................................................................................20

7.2

Conclusion..................................................................................................20

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CHAPTER - 1 1

Company Profile

1.1 Introduction Wall’s was bought by Mac fisheries in 1920 – who then sold Wall’s 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 Wall’s 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.

Wall’s ice cream

started production. Wall’s ice cream introduced in 1995 in Pakistan under Unilever brand.

1.2 Overview of Unilever Unilever is one of the biggest brands in Pakistan and several other brands are registered under Unilever brand. "Meeting the everyday needs of people everywhere". It is the world leader in ice-cream, margarine, and tea-based beverages; also in personal wash, prestige fragrances and deodorants. Unilever's packaged foods business is the world's third largest after Nestle and Kraft. Yet at the same time, the group has pruned its portfolio by 75%, disposing of some regional products and rebranding others in order to concentrate on a smaller roster of global power brands. Unilever is one of the world's leading food companies. “Our passion for understanding what people want and need from their food - and what they love about it - makes our brands a popular choice”. In the late 19th century the businesses that would later become Unilever were among the most philanthropic of their time. They set up projects to improve the lot of their workers and created products with a positive social impact, making hygiene and personal care commonplace and improving nutrition through adding vitamins to foods that were already daily staples.

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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 

Founded 1930



Headquarters London, England and Rotterdam the Netherlands



World’s leading margarine producer



World’s leading soap and detergent maker



World’s leading maker of packaged tea



World’s leading ice cream maker



One of the World’s largest consumer products company

 1.2.2 Mission Statement “Unilever’s

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.”

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1.3 Wall's Polka Acquisition: 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 1995, Polka approached Wall's with an offer to merge the two companies. In 1998 Polka merged into Walls both combined with one and other. After the merging they are working together for last 7 years. On Polka packaging there is a brand mark of Walls ice cream. Wall’s has a 28% share in the ice cream market; 25% of which comes from the take home range and 64% of the impulse range – the highest in the entire industry. 1.3.1 Taste the fun side of life: Mention ice cream and most people think of the Heart brand. The brand with the big red heart logo is behind many muchloved ice cream classics – from indulgent treats like Magnum and Cornetto. 1.3.2 Making you happy Few foods are guaranteed to put a smile on people's faces like ice cream. But while ice cream should always be fun, we've an ever-growing range of lower fat, lower sugar products. Heart brand now provides lighter versions for those watching the calories and smaller sizes for smaller appetites, as well old favorites – there's something for everyone Some ice creams are best as an occasional indulgence, but others can be a regular treat, and eaten sensibly, ice cream can be part of a healthy balanced diet. Heart brand is developing products that are lower in fat, sugar-free, lactose-free, as well as low-carb options and those with more nutritional 'goodies' like calcium and fruit. For example: 

Two scoops of Cornetto (a 100ml serving) have only 79 calories and 2.4g fat.



Magnum Light (170 calories/10g fat) has 30% fewer calories and 33% less fat than Magnum Classic.

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CHAPTER – 2

2

COMPANY ANALYSIS

2.1 Wall's - Global Leader Wall’s is sold in more than 40 countries making it the most widely available ice cream worldwide. Unilever is the global leader of ice cream and frozen desserts manufacturing with almost 23% of the global market share.

2.2 Adding vitality to life With customers becoming more health conscious, wall’s has also taken a conscious step to providing healthier and nutritious products. Wall’s innovation centre in UK is constantly working on making healthier products by reducing the fat content in the products yet offering the same great taste. Wall’s is striving to be a healthier choice for kids by lowering sugar content and introducing nutrient rich offerings like moo which has calcium equal to one glass of milk.

2.3 Core Objectives of Walls The objective of wall's as under:        

To defend current Mkt. Share Sale Growth. Customer satisfaction. Continue product modification and improvement effort to increase customer benefit and reduce cost. Expand production capacity in advance of increasing demand to avoid stakeout. Develop a multiple line extension offering targeted to the need of several users segment in the market. Meet and beat lower prices or heavier promotional efforts by competitors. Increase satisfaction, loyalty, and repurchase among current customers by building on existing strengths apple to late adopters with same attribute and same benefit offered to early adopters.

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2.4 Organizational Chart

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CHAPTER – 3

3

MARKETING ANALYSIS

3.1 Current Market Situation of Wall’s Before Wall's introduce in Pakistan, Polka was the market leader but it had to face competition with Yummy, and Rocco soon after. Polka dominated the local market between 1980 - 1990s. These were the only three ice cream companies in Pakistan during that period. Polka had almost 80 - 85% share of the market, the rest was shared by Yummy and Rocco. Due to their heavy investment and sponsorship Polka was the name that came into one's mind when one though about ice cream. But that was in the 80s, then came Wall's in 1995 and that was it the turning point for Polka's Sales. Wall's had a very different strategy than polka, they projected themselves as very strong company, plus they had a very strong marketing Plan, Which removed Polka out of the Market in to no time. Hence today we see Wall's SPD's on the streets of Pakistan selling all the variants of ice cream. Presently Omore has also captured the market, due to the result of their changed recipe and stronger marketing strategy. According to the survey conducted by the Lever Brother of Pakistan the Current Market situation of the market is somewhat like the following: Others 5%

Market Share

Omore [PERCENTAG E] Wall's 65%

Ice cream Parlours [PERCENTAG E]

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3.2 Market Segmentation Attitude and buying habits Walls have segmented market according to consumer characteristics and consumer response. Walls takes 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: a.

Demographic segmentation

b.

Geographically segmentation

c.

Psychographic segmentation

d.

Behavior to word Product: The wall's segmented the entire market into such segments, which are differentiable through

3.2.1 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. Wall’s 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. 3.2.2 Geographic Segmentation Region: South Asian Region, Pakistan Density: Urban, rulers Climate: Both Northern & Southern region of Pakistan.

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This is segmenting the market on basis of location the factors contributes in it’s 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

3.3 Positioning the Product: After realizing the need, potential in market and rapidly increasing growth and market share of the product. The company launches a WALL ice cream and expands its product line. Company tries to position it as an economical, qualities, and variety of features. Which can be easily sell at any times anywhere in the country. Company existing position in the market also helps to position it successfully in Pakistan economy.

3.4 Market Attractiveness Wall has identified and described the various segments in given market; it must determine the attractiveness of each. Relevant factors to consider here pertain to the market, economic and technology, competition and the general environment Wall undertaking an attractiveness analysis would have added and delete factors according to its own needs. 3.4.1 Factors of Market Attractiveness 

Size



Economic and technological



Growth including stage in product



Investment intensity

life cycle



Industry capacity



Differentiation possibilities



Technology



Bargaining power of customers



Barriers to entry and exit



Cyclicality and Seasonality



Access to supplies



Distribution



Competitive

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3.5 Marketing Information System Walls uses many a system to accumulate information it needs to make all decisions. It has a continuous flow system of information to keep abreast with any change in the environment. Steps are taken to ensure that right information reaches right person at the right time. This is done by developing special system of information inflow. In this regard, the functional departments have been divided into information accumulation centres. All the information coming in is accumulated in the main information centre. Here it is evaluated as being relevant and reliable. From here, it is sent to the specific information centre where this information is needed and which the information is relevant to. 3.5.1 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 forecast sales for the next period 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. 3.5.2 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 company’s 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. 3.5.3 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 2

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.

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CHAPTER – 4

4

PRODUCT ANALYSIS

4.1 Wall's Promotional Method Wall's select to promote its product, personal selling, advertising, and sales promotion. For personal selling it introduced "SPDs", for advertising, and sales promotion it used printed and electronic media. Advertisement of Wall’s are eye catching and attractive. Through advertising it informs the consumer about new brands and flavors. For sales promotion Wall's introduced different Schemas which are: 

In solo ice cream, one ice cream piece is free in the packet.



In max-cup the Wall's gives bubble gum free.



The Wall's launch the scheme for 15% extra in top ten.



In family pack special discount price scheme.

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 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 is considerable glamour and general promotional appeal in product design and designer’s name. In the field of business products, engineering design has long been recognizing as extremely important. Today, there is a realization of the marketing value of appearance design as well. Colour often is the determining factor in the consumer acceptance or rejection of a product. Wall’s is using very attractive design and beautiful colours for the customer attraction. All the wrappers provide some ideas about the flavour, taste, quality and freshness of the product. 4.4.1 Favourite Brand of Ice-Cream In a study conducted, over half the respondents claimed that Wall’s product was their favorite brand of ice-cream (adults: 56%, children: 59%). (Not unsurprisingly, this correlates with respondents’ most recent purchases (for respondents stating that their most recent ice-cream purchase was a Wall’s variety 80% adults and 86% children claimed a Wall’s product was their favorite. Magnum takes the top spot again with around a fifth of adults and children (19%) claiming it as their favorite. Around half of the respondents (adults: 52%, children: 49%) agree that the price of their favourite brand varies across the different outlets they usually buy from, supporting the wide range of prices actually recorded by brand. Wall’s Twister are priced the lowest of the branded products (Twister: adults 74%, children 69%).

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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.

4.5 Key products

FEAST

CORNETTO

MAGNUM

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4.6 BCG Product Matrix

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CHAPTER – 5

5

MACRO AND MICRO ANALYSIS

5.1 PEST Analysis PEST analysis (Political, Economic, Social and Technological analysis) describes a framework of macro-environmental factors used in the environmental scanning component of strategic management. 5.1.1 Political Environment The political condition of Pakistan is highly uncertain and unstable but from few years we have seen some consistency in government policies which encourage the foreign investors to invest in Pakistan. Walls have strong status because ice cream is manufacturing under Unilever brand. Unilever is one of the biggest multinational company in Pakistan in paying high amount of taxes and contributing in Pakistan economy. So there is no political pressure on Walls Company from the government of Pakistan. 5.1.2 Economic Environment There is a great boom of manufacturing varieties of ice cream and great demand from the people for new flavors. New shapes in ice cream style or stylish ice cream are attracting big population of Pakistan for the new style and shape walls are using computerized system for manufacturing hygienic products. 5.1.3 Social Environment Most of the population of the Pakistan belongs to middle class who are potential customers of our product. So the scope of the company is high. On cultural festival wall’s offering special offers on ice cream. Lucky draw, coupon scheme included in such offers by the walls. They also have a big part in cultural promo which reflects the culture of Pakistan.

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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.

5.2 Porter’s Five Forces Analysis of Wall’s 5.2.1 Threats of new entrants New entrants to an industry can increase the competition in the industry. In Pakistan, currently 4-5 companies are doing business in Ice-Cream industry out of which only one brand is international and others are local. Walls is an international brand. As such, there is not much threat of new entrants, but as the trend is going there may be a growing threat to walls as people may prefer other brands. 5.2.2 Substitutes The existence of substitute products lowers Wall’s attractiveness and profitability. The closets substitutes available in the market are and Omore. 5.2.3 Bargaining power of suppliers Wall’s is a manufacturer of ice-cream which is not purely dairy. The milk content is not very high. Although the suppliers are limited yet there seems to be a high bargaining power of suppliers. 5.2.4 Bargaining power of Customers Customers are the people who create demand in the market. But in this case the bargaining power of customers is almost zero since the price is fixed. 5.2.5 Intensity of rivalry The intensity of rivalry has increased since there is a threat of new entrants and it is increasing the level of competition as well.

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5.3 SWOT Analysis SWOT analysis (alternatively SWOT Matrix) is a structured planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. A SWOT analysis can be carried out for a product, place, industry or person. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieving that objective.

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CHAPTER – 5

6

MARKETING MIX STRATEGIES

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 customer’s 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.

6.2 Product Differentiation Difference in product features or performances is not the only way a business can differentiate its offering. The customer services can also effectively have maintained and advantage over competitor.

6.3 Dimension of product quality in Wall’s ice-cream To attain a substantial competitive advantage in product quality wall’s has understood, what Dimensions customers perceive to underline difference in quality across product. The Wall’s manufacturing prestige ice cream have emphasis the first Dimension of product quality.

6.4 Functional Performance Walls have different brand ice cream that provides excellent performance of various attributes as taste, quality, and nutrition. On the other hand Wall’s has emphasis aggressively promoted a different quality dimensions.

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6.5 Durability 6.5.1 Conformance to Specifications Absence of defect has been a major focus of the Wall’s. It has been the primary focus of ice cream’s quality improvement program. Wall’s 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 product’s 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.

6.6 Quality Reputation of the Brand Name The promotional activities of Walls that sustain that reputation are strongly influence the consumer perception of a product’s quality in pursuing a differentiation or cue the customer

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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.

6.7 Product Life Cycle Product life cycles that can have a direct bearing on a company's survival the life cycle of a product can be divided in to four stages, which are as under: 

Introduction



Growth



Maturity



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. 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.

6.8 Position of wall's in product life cycle Wall's is standing on maturity stage with 65% of total market share and Wall’s is a leader in ice cream market. To survive in the market Wall's introduce time to time their new flavors and different promotional schemes.

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6.9 Four P’s of Walls 6.9.1 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. Actual Product: The high quality level, different tastes, and shapes of the Ice creams, packaging and the heart shape icon. Augmented Product: Walls provides 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. 6.9.1.1 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.

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

PRODUCER

DISTRIBUTOR

RETAILER

CONSUMER

This is commonly used, in which the WALL’S factory send the products to the local distributors who supply the products to the retailer in the required quantity. The retailer then sells it to the customer. The specialty and effectiveness of this system is excellent. The reason for such an excellent distribution system is the distribution policy. If a retailer wants to sell an ice cream, the investment he needs to do is as:

Security for the freezers

Retailer

Investment on Ice cream products

Board for advertisement

Total investment required

Others

15000

12-15,000

3000

30,000

WALL’S

Nil

12-15,000

Nil

15,000

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

RECOMMENDATIONS & CONCLUSION

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 Wall’s to Lever Brothers in 1922 this company is not only in ice cream but they Wall’s 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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