Marketing Plan for Marketing Plan for “CORNETTO” Wall’s“CORNETTO” Wall’s

Presented by:Presented by:Group C.Group C.

Presented to:Presented to:Sir. Yawar Abbas.Sir. Yawar Abbas.

Introduction of Wall’s

Brought by Macfishries in 1920.International brand of ice cream and most profitable unit of Unilever.Started in Pakistan in 1995 from Lahore.Started operation in Karachi in August 1995.

“Customer Moment of value” is defined as providing services in the following aspects:

When the customer wants it (Time).Where the customer wants it (Location).How the customer wants it (Form).How the customer access it (Perfect Delivery).

Situation Analysis:

Walls is going to enter in its 13th year of operation.

The Wall’s tricycle with its melodious music and distinctive umbrella has given a new dimension to the ice cream consumption and distribution in Pakistan. Simultaneously, evoking nostalgia for the days of the conventional ice cream

Market SummaryTarget Markets:

A Class outlets.A Class Locality.A Class People (Disposable Income more than 10,000 per month).Status Conscious People.Teen Agers.

Segmentation Basis:

Japan 125

South Korea 44.5

Taiwan 22Hong Kong 5.9

Philippines 68.7

Brunei 0.3

Papua NewGuinea 4.0

Australia 17.8

Maldives 0.2

Sri Lanka 17.9Malaysia 19.5

China 1,192

Nepal 22.1

Pakistan 126.4

Bangladesh 116.6

Bhutan 0.8India 911.6

Singapore 2.9

Vietnam 73.1

Indonesia 199.7New Zealand 3.5

Thailand 59.4

Geographic:

Segmentation Basis:

Demographic:

Adults and Parents: Cornetto,

Feast and Polka Children:

Fruiti and Top

Segmentation Basis:

Occasions:

Ice creams are also segmented on the basis of occasions or circumstances. Each ice cream has a different type of ‘eat”. Certain ice creams are creamier, heavier and last longer because of thirst or for refreshment as opposed to hunger. Similarly, Polka cups are ideal for deserts.

Segmentation Basis:

Psychographic:

Wall’s have also kept in view basic human wants while targeting its market. People consume ice cream under different psychological patterns, feelings and emotions. In this, the target segment is made by snacking items like Choc bar, Big shell, Big Three, Panda, Pop-Cornetto etc.

Market Needs:

Selection.Accessibility.

Customer Design Service.Competitive prices.

Corporate Mission:

“Feel good, look good and get more out of life.”To make cleanliness

commonplace,To lessen work for women,To foster health and

contribute to personal attractiveness, that life may be more enjoyable and rewarding for the people who use our products.

Balancing profit with responsible corporate behavior:

Acquisition of “POLKA”

To make cleanliness commonplace.

To lessen work for women.To foster health and

contribute to personal attractiveness, that life may be more enjoyable and rewarding for the people who use our products.

Balancing profit with responsible corporate behavior:

Market Expected Growth Trend for “Cornetto”

Current size, growth & profitability:

In Pakistan it is 51-60% of total ice cream market. If we don’t count unbranded competitors then Walls has market share of 73%.In the branded ice creams, Wall’s is at the top and holds a huge market share of 85%. The remaining companies are far behind in this race.

“Wall’s has a share of 22% of the intervention ice cream market and in Pakistan it is 40% of total market.

SWOT Analysis

Strengths:

Wall’s over the year has proved itself as an expert in ice-cream industry and the evidence of their remarkable quality services is

“GOLD EXCELLENCE TROPHY”

For Dec, 2000 first time in Asia. This has given for high level of safety. This award is mark of parallel performance of Wall’s ice cream factory, which completed 3 million accident fee man-hours.

Strengths:

The main points that contribute to the strength of Cornetto are:

A wider choice.

Removing artificial coloring and flavorings.

Less saturated fat & sugar.

More fruit.

More choice.

Weaknesses

Wall’s is facing problems in the following areas:

As there are too many distribution channels of Wall’s so their distribution cost increases from the revenue generated by these outlets.

In Pakistan the manager of Wall’s company is a foreigner so there are communication problems.

Opportunities

Great margin to increase target

market.

Strategic alliances.

Selling products to other markets.

Flexible Market.

Rural areas coverage.

Threats:

Unstable market due to poor political situation.

Sometimes religious movements against foreigners.

Future potential aggressive competition from already existing companies.

Health conscious people can go against the vegetable fats instead of milk fats.

Competition:

Direct:Hico.

Yummy.Pearl.Igloo.Smile.

Eatmore.

Indirect:Haagen-Dazs.Royal treat.Local ice-cream.

Comparison with competitors.

Product Offerings:Goods

Classification:

Consumer Goods.Convenience Good as well as

Shopping Goods.Non-durable.Package Goods.

The product introduction “CORNETTO”Leading premium brand of Wall’s

In start it was status symbol, now it means value of money.

Cornetto’s products: Cups:

Cornetto Chocolate Vanilla Cup (Sundae Cup).

Cornetto Premium Cup.

Cornetto’s products:

Cornetto Premium Cup.Cones:

Cornetto Pop Cone. Cornetto Classico. Cornetto Double Chocolate. Cornetto Super Cone

Strawberry. Cornetto Super Cone

Chocolate.

Cornetto’s products:

Delisted Products:

Cornetto Mint. Cornetto Mango. Cornetto Orange.

Cornetto’s products:

Delisted Products:

Cornetto Mint. Cornetto Mango. Cornetto Orange.

Market Strategy:

“Lever brothers will be the foremost consumer producers company in Pakistan with care, skin, ice cream and spread. Already position in tea, hair, dental and household care, substantially profitable position in cooking oils and fats.”

Marketing Objectives:

Maintaining positive growth in each

quarter.Achieve a steady increase in market

penetration.Decrease customer acquisition cost 5%

P.A.To increase sales volume by 10%.To increase market share of CORNETTO

from 21% to 32% next year.Add new features of packaging i.e. new

packaging style.Increase distribution coverage by opening

Walls Ice Cream Parlors in Faisalabad.

Pakistan market share of Wall’s.

Financial Objectives:

Increase the profit margin by 5% P.A through efficiency and economies of scale.

Maintain a significant research and development budget to support future product development.

A double to triple growth rate for coming year.

Target Market Strategies:

Target Market A

Children: Age:7-12 Years.

Product: Mini Cornetto.

Teenagers: Age:13-19 Years.

Products: Cornetto Orange.

Cornetto Banana.

Cornetto Mango.

Target Market Strategies:

Target Market B:

X-generation:

Age:7-12 Years.

Product: Mini Cornetto.

Teenagers: Age:20-28Years.

Products: New Super Cornetto (TRIPPLE CHOC).

Positioning Strategy:

Attribute Positioning.

User positioning.

Quality & Price Positioning.

Product Differentiation:

Distinctive.

Superior.

Defensive.

Affordable.

Durable.

Share of Market:

Marketing Mix:Product:

Differentiation Factors:

Consistent quality.Hygiene. Aesthetic sense. Strong distribution channel.Change the concept of ice-cream

in consumer mind.Brand loyalty.Advance promotional tools.Taste.

Marketing Mix:Product:

Quality Factors:

Wall’s competitive advantage is consistent quality.

High-tech manufacturing equipment and strict quality control process.

Highest standards of cleanliness.

Packaging.

At Wall’s following factors are considered while packing:

Aesthetic sense. Legal requirements. Environmental aspects.Competition.

Product life Cycle

Tubs & Take2

Cornetto

Jet Sport, Cups & Choc-Bar

Polka Products

introduction Growth Maturity Decline

Price: Pricing Structure:Wall’s being the market leader and the major

innovator in the industry normally charge higher prices for its products. These high prices are justified by the management that they are due to:

High quality standards.Research and development cost.Extensive distribution etc.

Pricing Structure:

SELECT PRICING OBJECTIVE

SELECT METHOD OF DETERMINING THE BASE PRICE:

Cost-pluspricing

Price based onboth demandand costs

Price set inrelation tomarket alone

DESIGN APPROPRIATE STRATEGIES:

Price vs. nonpricecompetition

Skimming vs. penetration

Discounts and allowances

Freight paymentsOne price vs. flexible price

Psychological pricing

Leader pricingEveryday low vs.high-low pricing

Resale pricemaintenance

Pricing Structure:

Cost andprofit

= 100%= $72

MANUFACTURER

Manu-facturer’sselling price= 100%= $72

Cost = 80%= $72

WHOLESALER

Whole-saler’sselling price= 100%= $90

Markup= 20%= $18

RETAILER

Re-tailer’sselling price= 100%= $150

Markup= 40%= $60

Cost = 60%= $90

Cost toconsumer

= $150

CONSUMER

Promotion:Communication Strategy:

The following are the communication strategies adopted by Walls to inform and persuade the people:

Sales Promotion.Advertising.Sales force.Public Relations.Direct Marketing.

Sales Promotion:

Main objectives of sales promotion:

To persuade present customers to buy more.

To combat competition.

Discount & Incentives:

To Customers:

Price Discounts.Quantity

Discounts.

Discount & Incentives:

To Distributors:

50% of distributor’s expenses are paid by company.

Seasonal Discounts up to 5%.

Discount & Incentives:

To Retailers:

Free Freezers.Free Freezer maintenance.Margin up to 16.48%.Damage Policy.Margin up to 8.6%.

Discount & Incentives:

To Street Vendors:

Free Trikes.

Advertising:

Media opted for advertisement is:

Electronic Media.Outdoors.

Print Media.

Newspapers.Billboards.

ProducerProducer WholesalerWholesaler RetailerRetailer ConsumerConsumer

ProducerProducer WholesalerWholesaler RetailerRetailer ConsumerConsumer

PUSH STRATEGY

PULL STRATEGY

Product flow Promotion effort

Sales Force:

Sales Force Incentives:

Training programs:In-house training: Quarterly training programs.

On job training.

Public Relation Management:

Fun Carnivals.Concerts.

Toll free number at the back side of every wrapper 0800-13000.

www.wallspakistan.com.

Distribution Strategy:

Distribution Channel:Factory Distributor

Retailer

Distribution Strategy:

Physical distribution means:

Distribution Vans.Trikes.

Distribution Strategy:

ULTIMATE CONSUMERS

PRODUCERS OF CONSUMER GOODS

Retailers

Agents

Distribution Strategy:

Specifythe role ofdistributionwithin themarketingmix

Selecttype ofdistribu-tionchannel

Determine appropriateintensityof distri-bution

Choosespecificchannelmembers

WELL-DESIGNED

DISTRIBUTIONCHANNEL

Action Programs:

Product Plan:

Advertising Plan:TV (Geo ,PTV, ARY Digital)

and Radio (FM- 89,FM- 101).

Bill boards.Newspaper (The News,

Express, Daily).

Action Programs:

Sales Promotion Plan:

Discount & Incentives:To public.To distributors.To Retailers.To street vendors.

Action Programs:

Public Relation Plan:

Fun Carnivals.Concerts.Free number at the back side of every wrapper 0800-13000.Website address at the back side of every wrapper.

Marketing Research:

Walls is blessed with good fortune of being the leader of there market having a strong financial position so they can conduct each and every type of research.

Marketing Research:

Financials: Breakeven

Analysis:$100,000

90,000

80,000

70,000

60,000

50,000

40,000

30,000

20,000

10,000

Co

st,

re

ven

ue,

pro

fit

Quantity in units0 100 200 300 400 500 600 700 800 900 1000 1100 1200

BREAK-EVENPOINT

PROFITS

Total variable costs

Total fixed costsLOSSES

Marketing Research:

Financials: Breakeven

Analysis: Monthly Units Break-even

2.4 millionMonthly Sales Break-even

Rs.102 millionAssumptionsAverage per unit revenue

Rs.35Average Per unit Variable Cost

Rs.8 Estimated Monthly Fixed Cost

Rs.449000000

Marketing Research:

Financials: Expense

Forecast of 2007.

Main Heads Sub-Heads Budget (RS)

Advertisement Plans

TV and RadioBillboards(4 places)News PapersTheme adv.(3 Events)

100,00,000

70,00,0005,00,000

10,00,000

Marketing Research:

Financials: Expense

Forecast of 2007.

Main Heads Sub-Heads Budget (RS)

Sales Promotional

Plans

Free SamplingDisc & Incentives

Price Quantity

Seasonal Discount special offer 5%.

15,00,00025,00,00020,00,00015,00,000

Marketing Research:

Financials: Expense

Forecast of 2007.

Main Heads Sub-Heads Budget (RS)

Free Freezers(200).Street Vendor Tri-cycles(150).

24,00,00015,00,000

Public Relation Plans

Total Budget

Fun Carnivals(3place)Concerts(2)

100,00,00

0 50,00,0004490000

0

Sales Forecast in Year.

Sale forecast in year

2007 2008 2009 2010 2011 2012

Sales in million

Rs.225

Rs.275

Rs.332

Rs.488

Rs.592

Rs.712

Sales Forecast in Year.

0

100

200

300

400

500

600

700

800

2007 2008 2009 2010 2011 2012

sale forecast

Control:

The following will enable us to keep on track . If we fail in any of these areas, we will need to re-evaluate our business model:

Gross margins at or above 45. Month-to-month annual comparisons

indicate an increase of 20% or greater.Do not depend on the credit line to meet

cash requirements.Continue to pay down there debt line at a

minimum of Rs.274 million per year.

Implementation:

Milestones PlanMilestone

Startdate

End date

Marketing plancompletion

1/1/2007

2/1/2007

Budget(Milln)

Manager

Department

7.5 A Marketing

Implementation:

Milestones PlanMilestone

Startdate

End date

Websitecompletion

1/1/2007

2/1/2007

Budget(Milln)

Manager

Department

2.2 B Marketing

Implementation:

Milestones PlanMilestone

Startdate

End date

Advertising campaignsummer

1/1/2007

2/1/2007

Budget(Milln)

Manager

Department

8.92 C Marketing

Implementation:

Milestones PlanMilestone

Startdate

End date

Advertising campaignWinter

1/1/2007

2/1/2007

Budget(Milln)

Manager

Department

4.15 D Marketing

Implementation:

Milestones PlanMilestone

Startdate

End date

DevelopmentOf the Retail channel

1/1/2007

2/1/2007

Budget(Milln)

Manager

Department

10.23

E Marketing

Total 33.23 Million

Marketing Organization

Marketing manager will be responsible for the marketing activities.

Contingency Plan

Difficulties And Risks:

Problem generating visibilities, a function of being an internet-based start-up organization.An entry into the market by an already establishment market ongoing basis.

Contingency Plan

Worst Case Risk Include:

Determining that the business cannot support itself on an ongoing basis.Having to liquidate equipment or intellectual capital to cover liabilities.

Environmental Factors:The external environment also posses great problems and challenges to Walls. The economic environment might cause:Changes in peoples’ spending patterns.Changes in major economic environment variables such as:

Income.Cost of living.

Borrowing patterns.Have a large impact on the demand for the products.

Marketing Plan Evaluation