Marketing strategies of Wall\'s ice cream PDF

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Tagline: ICE Cream MaKes u HaPPY

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CONTENTS INTRODUCTION: ...…………………………………………………………………….......4 HISTORY: .…………………………………………………………………………………..4 When Was Wall’s Introduced In Pakistan ..……………………………………………….5 VISION AND MISSION STATEMENTS : ..……………………………………………….6 Vision .………………………………………………………………………………………...6 Mission ………………………………………………………………………………………..6 OBECTIVES OF WALL’S: ...………………………………………………………………6 PRODUCT PORTFOLIO: ..………………………………………………………………..6 Flagship Brands of Wall’s …………………………………………………………………..7 Other Ice Cream Products .…………………………………………………………………8 Categories of Ice Cream Products ……………………………………….............................8 MARKET SEGMENTATION OF WALL’S: …………………………………………......9 Geographic Segmentation ………………………………………………………………......9 Demographic Segmentation ………………………………………………………………...9 Psychographic Segmentation ……………………………………………………………...10 Behavioral Segmentation ………………………………………………………………….10 MARKET TARGETING PROCESS: ..…………………………………………………..10 Target Market ……………………………….…………………………………………......11 Market Attractiveness ……………………………………………………………………..11 Market Attractiveness Factors ………………………..…………………………………..11 MARKETING MIX OF WALL’S: .……………………………………………………....12 Product .……………………………………………………………………………………..12 Pricing .……………………………………………………………………………………...12 Placement …………………………………………………………………………………...13 Promotion …………………………………………………………………………………..14

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SWOT ANALYSIS: ………………………………………………………………………..15 Strengths ……………………………………………………………………………............15 Weaknesses …………………………………………………………………………………16 Opportunities ………………………………………………………………………………16 Threat ………………………………………………………………………………………16 MAJOR COMPETITORS: .………………………………………………………………17 Omoré ………………………………………………………………………………………17 Hico …………………………………………………………………………………………17 Igloo ………………………………………………………………………………………...17 Yummy ……………………………………………………………………………………..18

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INTRODUCTION Unilever Pakistan (70.4% Unilever equity) is the largest FMCG (Fast Moving Consumer Goods) Company in Pakistan, as well as one of the largest multinationals operating in the country. Unilever is the world’s largest manufacturer of ice cream which in fact holds almost18% of the global market share. Wall's is an ice cream brand owned by the AngloDutch food and personal care conglomerate Unilever. Originating as an independent food brand in the United Kingdom, Wall’s is now part of the Heart brand global frozen dessert subsidiary of Unilever, used in China, Hong Kong, Europe, Indonesia, India, Japan, Malaysia, Mauritius, Philippines, Qatar, Saudi Arabia, Pakistan, Singapore, Thailand, United Arab Emirates, Vietnam and the United Kingdom. Unilever also uses a merged brand called Kwality Wall’s in South Asia. Wall’s products are sold in more than 40 countries. Wall’s operates under different names in different markets (Wall’s in the UK and most parts of Asia, Algida in Italy, Langnese in Germany, Kibon in Brazil, and Ola in the Netherlands). Wall’s has a wide range of ice cream products which include, Wall’s classic tubs, Wall’s cartons, Wall`s Cornetto, Wall’s magnum, Wall’s moo, Wall’s rocket, Wall’s spin, Wall’s twister and many more. In Pakistan the Heart brand is called Wall’s 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 favourites, hence catering to a variety of diverse tastes. Wall’s is a trusted ice cream and frozen desserts brand in Pakistan. All Wall’s products are halal and are made with halal ingredients in a halal compliant manner. The Wall’s factory is located on Multan Road in Lahore and 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 Wall’s to launch exciting new products every year. Wall’s has the market share of 51 percent at present.

HISTORY Wall’s was founded in 1786 by Richard Wall, when he opened a butcher's stall in St James’s Market, London. In the 1900s the business was led by Richard’s 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 lay-offs; the First World War meant that his idea was not implemented until 1922. Following his retirement in 1920, Thomas Wall II created his Trust

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for the “encouragement and assistance of educational work and social service”. Today, the Trust continues to assist in these areas by providing grants to individuals and organisations. Moreover, in 1920, Thomas Wall II sold the firm to Mac Fisheries, which was further acquired in 1922 by Lever Brothers. Maxwell Holt was put in charge and he revived the idea of producing ice cream, with near instant success. Ice cream production 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. The product grew in significance and popularity and thus, was born Wall's ice cream. Over the years, the company's ice creams have become popular almost everywhere in the world. WHEN WAS WALL’S INTRODUCED IN PAKISTAN? Unilever 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 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. After the launching of Wall’s, it gave tremendous services and Polka (Wall’s competitor in 1995) loosed its market share by a huge extent. At this time Polka tried to sell itself to Wall’s but now Wall’s had done all the hard work which they initially did not want to do by acquiring Polka, so they were not ready to buy Polka. But Polka spread a rumour that Nestle is coming through Polka which obviously Wall’s did not want, so they purchased Polka in 1997. This acquisition made Wall’s an unchallenged market leader and it also emerged as a “Impulse brand” with new level of excellence in take-home or dessert ice cream. The strong of Polka were continued and weaker were dropped. The Heart was launched in 1997 to unite Unilever’s ice cream businesses and brands, and has grown to become the most recognised logo in the world of ice cream.

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VISION AND MISSION STATEMENTS VISION: “Our vision is to doubling the size of our business, whilst reducing our environmental footprint and increasing our positive social impact. MISSION: “To meet everyday needs for nutrition, hygiene and personal care with brands that help people look good, feel good and get more out of life.”

OBJECTIVES OF WALL’S 

To defend current Mkt. Share

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Sale Growth.

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Continue product modification and improvement effort to increase customer benefit and reduce cost.

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Expand production capacity in advance of increasing demand to avoid stakeout.

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Develop a multiple line extension offering targeted to the need of several user’s segment in the market.

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Meet and beat lower prices or heavier promotional efforts by competitors.

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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.

PRODUCT PORTFOLIO Wall’s ice cream comes under the food and beverages part of the Unilever chain. Wall’s ice creams are consumer, non-durable, packaged goods. Wall’s has a variety of products ranging from low priced desserts like Rainbow to premium priced desserts like Cornetto and Magnum. While there are various delectable varieties of ice creams manufactured and marketed by Wall's, following are some of the more global products:

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FLAGSHIP BRANDS OF WALL’S: CORNETTO: Cornetto was launched in 1959 and is arguably the most popular and widely consumed hand-held ice cream product manufactured by Wall's. It continues to remain a market leader in the UK as well as various other countries of the world. The product is available in a variety of flavours, including Strawberry, Mint Chocolate, Nut, Lemon, Classico, Peanut Butter Love, Honeycomb Crunch, Caramel Crunch, Whippy (Yogurt flavour with a chewy chocolate), Valentine's Day flavours, and Cornetto Soft (soft ice cream that comes in chocolate chip, cookie dough, vanilla, chocolate, and double chocolate). Cornetto Soft is sold on the street by vendors and is made on the spot with an ice cream dispenser, but the other flavours are pre-made and are factory packaged. There is also Cornetto Enigma, which consists of cookies and cream, raspberry and double chocolate flavours. MAGNUM: The ice cream today known as Magnum was first introduced in 1989. The original Magnum (later rebranded as Magnum Classic) consisted of a thick bar of vanilla ice cream on a stick, with a chocolate coating. While the vanilla bar continues to remain the same, the company has experimented with the coating a few times. In 1994, the Magnum ice cream cones were introduced and ice cream sandwich appeared in 2002. The traditional Magnum-on-a-stick, however, continues to be the most popular. Other flavours include, White, Almond, Mint, Honeycomb, Double Caramel, DoublePeanut Butter, Double Raspberry, Caramel and Nuts. FEAST: Feast is a chunky chocolate ice cream bar. Feast ice cream is a hand-held treat with solid dark chocolate on a stick. This chocolate is surrounded with chocolate ice cream and covered in a chocolate shell. The shell also includes pieces of biscuits. Feast is available in both its original chocolate and a mint flavour. There are also bite-sized versions of Feast produced in both flavour. Mini Feast, Feast Sandwich, Snack Bar are also available. VIENNETTA: Viennetta was launched in 1982 and is known as the company's 'premium dessert’. The original Viennetta was a multi-layered product comprising layers of vanilla ice cream with sprayed-on layers of compound chocolate. The layers of ice cream were extruded, one after another, onto trays sitting on a moving belt. The rate of extrusion was greater than the speed of the belt which caused a "bunching" of the ice cream; each layer was extruded at a different speed from the previous layer. The final effect was akin to a series of waves

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rippling through the product. This rich and creamy preparation comes in a variety of flavours like berry, chocolate, mint and vanilla. Some other ice cream products by Wall’s are listed in table:

PRODUCT NAME

FLAVOURS AVAILABLE

DONUT

Chocolate

Paddle Pop

Caramel Choc Dip, Bionic Bubble-gum, Rainbow, Twirly Pop, Cyclone, Icy Twist, Shaky Shake, Banana, Chocolate

FRUTTI

Orange, Lemon

MOO

Mango, Strawberry

JET SPORT

Orange, Pineapple

TWISTER

Blackcurrant

CALIPPO

Orange,

Strawberry

and

Vanilla,

Strawberry and Lemon SOLERO

Exotic, Red Berries, Strawberry Smoothie

MINIMILK

Vanilla, Chocolate and Strawberry

Walls have divided the ice-cream products into three main categories: 1.

Impulse Item: for kids and teenagers. (cones, cups)

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In Home: (litre and half litre packs)

3.

Bulk Pack: (supplied in hotels)

1. IMPULSE ITEM: KIDS: It includes Rocket, Twister, Bigger Three, and Vanilla cup, Rainbow, Berry Dip and Choc Dip which are for kids. TEENAGERS: It includes jet sport, King Kulfa, Mango King Kulfa, Light Vanilla, and Choc Bar, Cornetto, Chocolate Passion, Magnum, and Feast.

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2. IN HOME: In home ice cream products are especially designed for family and adults which includes liter and half liter packs. It includes Tutti Fruity, Cassatta, Kings Kulfa, Mango, Chocolate chip and many more. 3. BULK PACK: These are for dealers and hotels and Wall’s providing in large quantity in the form of big packs. Wall’s deal with McDonalds, major shopping centers, stores. Usually provided in the form of shakes.

MARKET SEGMENTATION OF WALL’S Today Wall’s ice cream is doing its business in United Kingdom, China, India, Indonesia, Jordan, Lebanon, Malaysia, Maldives, Pakistan, Qatar, Saudi Arabia, Singapore, Sri Lanka, Thailand, United Arab Emirates and Vietnam. In this project we are only discussing its market segmentation in Pakistan. They are segmenting the market in the form of geographic, demographic, psychographic, and behavioral. GEOGRAPHIC SEGMENTATION: Wall’s Cornetto Company has segmented its market in four sections in Pakistan such as South, which is Karachi to Sadqabad, and then Central from Sadqabad to Gujranwala and then North from Gujranwala to upside country. No matters, what the city size is. It is covering all types of people urban and suburban. Wall`s mainly focused on southern regions of Pakistan, as there is moderate temperature all the time. Country

Pakistan

Provinces

Punjab, Sindh, N.W.F.P and Baluchistan.

Density

Urban, Suburban

Climate

Southern

DEMOGRAPHIC SEGMENTATION: The Wall’s Cornetto mainly focuses on the generation Y, teenagers with the age between 17 and 30. Wall’s Cornetto cater both females and males in the society. If we consider the income segmentation, Wall’s is targeting upper, middle, and lower middle income levels.

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Gender

Male, Female

Income

30000+

Generation

Generation Y

Occupation

Students, couples

PSYCHOGRAPHIC SEGMENTATION: The psychographic segmenting is done on the basis of the social class, lifestyle and personality characteristics. The Wall’s Cornetto is targeting all the social classes’ except of lower lowers and lower uppers. Social Classes

Working class, middle class, upper middle, lower uppers, upper uppers.

BEHAVIORAL SEGMENTATION: The company divides a market based according to the consumer taste, knowledge, attitude, use and response to their products. WALL’S Cornetto targeted its market by creating an image of high quality and hygienic products. They also put an eye on how occasionally people buy and use their products. They also tried to target their Non user, ex-user, potential user, first time user, and regular users. Occasions

Regular occasions

Benefits

Quality, hygiene

User Status

Nonuser, ex-user, potential user, first time user, regular user.

User Rates

Light user, Medium user, Heavy user

Attitude

towards Enthusiastic, positive

product Taste

Classic, Almond, strawberry lover.

MARKET TARGETING PROCESS After dividing the market into various segments, the Wall’s Cornetto Company has to decide which segment it can serve better. So first they evaluated each segments. They want the sets of buyers who share common needs and characteristics to serve.

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Wall’s mainly used undifferentiated (mass) marketing strategy because ice cream will always be mass marketed. They have to do business on large scale so Wall’s Cornetto Company is using mass marketing. Target market: It is the process of evaluating each market segments attractiveness and selecting one or more segments to enter. Sometimes companies are able to target, because they are financially strong and they can arrange a vast product line.Walls is easily available in urban and rural areas all over the country. Walls has been targeted every segment and we can say that wall’s has a Fragmented market. 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. Market Attractiveness Factors  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

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 Price  Individual competitor analysis

MARKETING MIX OF WALL’S 1.PRODUCT: A product consists of any good and service that can be offered to the market to satisfy a need or want. In the case of Wall’s, the product is the ‘ice cream’ by the company. Core Product: Ice cream, as a desert after meal. Actual product: The high quality level, different tastes, flavors, packaging. Augmented product: Provide tastes and hygiene as well as nutritional ingredients. Brand Name: The brand of product is Wall’s Brand Mark: The management of Wall’s uses heart shaped icon in red color with white background. Packaging: Wrappers and sticks, which they are using, are prepared according to hygienic point of view; sticks are imported and cleaned with chemicals to completely destroy the harmful effects on product quality and consumer’s health. Labeling: Descriptive label is used for Wall’s as it contains ingredients, nutritional contents and flavor of ice cream. Design and Color: Wall’s 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.

2.PRICING: 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 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. Price Adjustment Strategies Wall's uses the same price strategies for all regions. They are giving discounts to their wholesalers and their retailers. Company also provides off-season quantity discount. What is the pricing strategy used, and what is the objective of using this strategy? Wall’s is targeting middle and upper-middle class youth, the price of Wall’s is not that high. They are targeting the same classes in all the places of Pakistan. Initially, when Wall’s entered the market, they had to introduce products other than the existing companies and had to set their place at a normal range so that it was affordable for people to buy. Wall’s set a specific price which was not too low nor too high because people might have thought the quality is not good that’s why the price is low or its very expensive. They had to consider their variable cost, fixed cost and then decide the price. Wall’s wanted to capture the market so they didn’t want to do anything which reduced their customers. The objective of the pricing strategy was that they wanted to get more customers and retain the existing customers. Wall’s used product line strategy that a specific price was set for Cornetto. They give incentives to the retailers those are at picnic spots because they know a lot of people will go and have ice cream.

3.PLACEMENT: Wall's introduced first time i...