40049298 Walls Marketing Plan

8/3/2019 40049298 Walls Marketing Plan

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Marketing Plan for CORNETTO

Walls

Presented by:Group C.

Presented to:Sir. Yawar Abbas.


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Introduction of WallsBrought 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.


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Customer Moment of value is defined as providing services inthe 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).


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Situation Analysis:

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

The Walls tricycle with its melodious music and

distinctive umbrella has given a new dimension to the icecream consumption and distribution in Pakistan.Simultaneously, evoking nostalgia for the days of theconventional ice cream


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Market Summary

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


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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:


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Segmentation Basis:

Demographic:

Adults and Parents:

Cornetto, Feast and Polka

Children: Fruiti and Top


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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 tohunger. Similarly, Polka cups are ideal for deserts.


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Segmentation Basis:

Psychographic:

Walls 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 Chocbar, Big shell, Big Three, Panda, Pop-Cornetto etc.


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Market Needs:

Selection.

Accessibility.

Customer Design Service.

Competitive prices.


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Corporate Mission:

Feel good, look good andget more out of life.To make cleanliness commonplace,To lessen work for women,To foster health and contribute to personalattractiveness, that life may be more enjoyable andrewarding for the people who use our products.Balancing profit with responsible corporatebehavior:


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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:


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Market Expected Growth Trend for

Cornetto


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Current size, growth & profitability:

In Pakistan it is 51-60% of total ice cream market. If wedont count unbranded competitors then Walls has

market share of 73%.In the branded ice creams, Wallsis

at the top and holds a huge market share of 85%. The

remaining companies are far behind in this race.Walls has a share of 22% of the intervention ice cream

market and in Pakistan it is 40% of total market.


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SWOT Analysis


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Strengths:Wallsover the year has proved itself as an expert

in ice-cream industry and the evidence of theirremarkable quality services is

GOLD EXCELLENCE TROPHY

For Dec, 2000 first time in Asia. This has given forhigh level of safety. This award is mark of parallel

performance of Walls ice cream factory, which

completed 3 million accident fee man-hours.


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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.


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WeaknessesWalls is facing problems in the following areas:

As there are too many distribution channels of Walls sotheir distribution cost increases from the revenue generated

by these outlets.

In Pakistan the manager ofWallscompany is a foreignerso there are communication problems.


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OpportunitiesGreat margin to increase target market.

Strategic alliances.

Selling products to other markets.

Flexible Market.Rural areas coverage.


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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.


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Competition:Direct:

Hico.

Yummy.

Pearl.

Igloo.Smile.

Eatmore.

Indirect:

Haagen-Dazs.

Royal treat.

Local ice-cream.


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Comparison with competitors.


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Product Offerings:Goods Classification:Consumer Goods.Convenience Good as well as Shopping

Goods.

Non-durable.Package Goods.


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The product introduction CORNETTO

Leading premium brand of Walls

In start it was status symbol, now it means

value of money.


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Cornettos products:Cups:

Cornetto Chocolate Vanilla Cup

(Sundae Cup).

Cornetto Premium Cup.


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Cornettos products:

Cornetto Premium Cup.Cones:Cornetto Pop Cone.

Cornetto Classico.Cornetto Double Chocolate.

Cornetto Super Cone Strawberry.

Cornetto Super Cone Chocolate.


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Cornettos products:

Delisted Products:Cornetto Mint.

Cornetto Mango.

Cornetto Orange.


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Cornettos products:

Delisted Products:Cornetto Mint.

Cornetto Mango.

Cornetto Orange.


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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.


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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.


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Pakistan market share of Walls.


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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.


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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.


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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).


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Positioning Strategy:Attribute Positioning.User positioning.Quality & Price Positioning.


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Product Differentiation:

Distinctive.

Superior.

Defensive.

Affordable.

Durable.


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Share of Market:


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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.


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Marketing Mix:

Product:Quality Factors:

Walls competitive advantage is consistent quality.

High-tech manufacturing equipment and strict

quality control process.

Highest standards of cleanliness.


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Packaging.

At Walls following factors are considered while packing:

Aesthetic sense.

Legal requirements.

Environmental aspects.

Competition.


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Product life Cycle

Tubs & Take2

Cornetto

Jet Sport, Cups & Choc-Bar

Polka

Products

introduction Growth Maturity Decline


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Price:Pricing Structure:

Wallsbeing 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.


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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 pricePsychological pricing

Leader pricingEveryday low vs.high-low pricing

Resale pricemaintenance


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Pricing Structure:

Cost andprofit

= 100%= $72

MANUFACTURER

Manu-facturers

sellingprice= 100%

= $72

Cost= 80%= $72

WHOLESALER

Whole-salers

sellingprice= 100%

= $90

Markup

= 20%= $18

RETAILER

Re-tailers

sellingprice= 100%= $150

Markup= 40%

= $60

Cost= 60%= $90

Cost toconsumer

= $150

CONSUMER


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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.


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Sales Promotion:

Main objectives of sales promotion:

To persuade present customers to buy more.

To combat competition.


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Discount & Incentives:

To Customers:

Price Discounts.

Quantity Discounts.


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To Distributors:50% of distributors expenses are paid by

company.

Seasonal Discounts up to 5%.


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To Retailers:Free Freezers.

Free Freezer maintenance.

Margin up to 16.48%.

Damage Policy.

Margin up to 8.6%.


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To Street Vendors:

Free Trikes.


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Advertising:Media opted for advertisement is:

Electronic Media.Outdoors.

Print Media.

Newspapers.Billboards.


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ProducerProducer WholesalerWholesaler RetailerRetailer ConsumerConsumer

ProducerProducer WholesalerWholesaler RetailerRetailer ConsumerConsumer

PUSH STRATEGY

PULL STRATEGY

Product flow Promotion effort


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Sales Force:

Sales Force Incentives:Training programs:

In-house training: Quarterly training programs.

On job training.


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Public Relation Management:

Fun Carnivals.

Concerts.

Toll free number at the back side of every wrapper

0800-13000.

www.wallspakistan.com.


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Distribution Strategy:

Distribution Channel:

Factory Distributor Retailer


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Physical distribution means:

Distribution Vans.Trikes.


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ULTIMATE CONSUMERS

PRODUCERS OF CONSUMER GOODS

Retailers

Agents


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Specify

the role ofdistributionwithin themarketingmix

Select

type ofdistribu-tionchannel

Determine

appropriateintensityof distri-bution

Choosespecificchannelmembers

WELL-DESIGNED

DISTRIBUTIONCHANNEL


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Action Programs:

Product Plan: Advertising Plan:TV (Geo ,PTV, ARY Digital) and Radio (FM-89,FM- 101).

Bill boards.Newspaper (The News, Express, Daily).


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Action Programs:

Sales Promotion Plan:


To public.

To distributors.To Retailers.

To street vendors.


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Action Programs:

Public Relation Plan:

Fun Carnivals.

Concerts.

Free number at the back side of every wrapper0800-13000.

Website address at the back side of every wrapper.


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Marketing Research:

Walls is blessed with good fortune of being theleader of there market having a strong financial

position so they can conduct each and every type

of research.


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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

C

ost,revenue,

profit

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

BREAK-EVEN

POINT

Total

reve

nue(

at$8

0perunit)

PROFITS

Total variable costs

Total fixed costs

Totalc

osts

LOSSES


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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 CostRs.8Estimated Monthly Fixed CostRs.449000000


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Marketing Research:Financials: Expense Forecast of 2007.

Main Heads Sub-Heads Budget (RS) Advertisement Plans TV and Radio

Billboards(4 places)

News Papers

Theme adv.(3 Events)

100,00,00070,00,000

5,00,000

10,00,000


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Main Heads Sub-Heads Budget (RS)Sales PromotionalPlans Free SamplingDisc & Incentives

Price

Quantity

Seasonal Discount

special offer 5%.

15,00,00025,00,000

20,00,000

15,00,000


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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)

100,00,00050,00,000

44900000


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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


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Sales Forecast in Year.

0

100

200

300

400

500

600

700

800

2007 2008 2009 2010 2011 2012

sale forecast


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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.


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Implementation:Milestones Plan

Milestone Start

date

End

date

Marketing

plan

completion

1/1/2007 2/1/2007

Budget

(Milln)

Manager Department

7.5 A Marketing


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Milestone Start

date

End

date

Website

completion

1/1/2007 2/1/2007

Budget

(Milln)

Manager Department

2.2 B Marketing


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Milestone Start

date

End

dateAdvertisingcampaignsummer

1/1/2007 2/1/2007

Budget

(Milln)

Manager Department

8.92 C Marketing


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Milestone Start

date

End

dateAdvertisingcampaignWinter

1/1/2007 2/1/2007

Budget

(Milln)

Manager Department

4.15 D Marketing


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Milestone Start

date

End

dateDevelopmentOf theRetailchannel

1/1/2007 2/1/2007

Budget

(Milln)

Manager Department

10.23 E Marketing

Total 33.23 Million


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Marketing Organization

Marketing manager will be responsible for

the marketing activities.


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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 marketongoing basis.


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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 coverliabilities.


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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


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Marketing Plan Evaluation

PLANNING

EVALU

ATION

IMPLEM

ENTATION

40049298 Walls Marketing Plan

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Transcript of 40049298 Walls Marketing Plan