Walls Marketing Analysis

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Dedication

This report is dedicated to our parents for their endless support, love and sacrifices and to

respected Sir Imran Qamar for being a beacon of light in our academic paths.


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Acknowledgement

All praise be to Allah, the lord and cherisher of the universe. May his peace and blessings be

upon prophet Muhammad (PBUH), his household, companions and all followers of the right

Guidance till the Day of Judgment. First of all we are thankful to ALLAH Almighty who has

created us, gave us the power to understand and the power to gain knowledge. Without His

kind guidance we would have not been able to complete any task given to us. We are grateful

for the guidance which has been allotted to us from Allah Almighty to understand and gain

knowledge. Allah, the Exalted, says: "Are those who know equal to those who know not? It

is only men of understanding who will remember. "We give honor and privilege to our

respected resource person who helped us in thinking in the right direction by giving us this

challenging task.

We would also like to thank our families, who added a boost to our confidence, and arealways 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 Walls ..............................................................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 Factors of Market Attractiveness ..........................................................8

3.5 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


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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 Porters Five Forces Analysis of Walls ......................................................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 Walls 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


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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 Ps 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

Walls was bought by Mac fisheries in 1920 who then sold Walls to Lever Brothers in

1922.

From 1922 to 1950s, wartime rationing produced a big appetite for ice cream sales reached

46 million by 1959 and Walls opened a large ice cream factory in Gloucester.

Supermarkets began to stock ice creams in addition to small high street shops. Market

research in the 1970s showe d that practically everyone loved ice cream. Walls ice cream

started production. Walls 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 a ndKraft . 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.
http://www.adbrands.net/ch/nestle_ch.htmhttp://www.adbrands.net/us/kraftfoods_us.htmhttp://www.adbrands.net/us/kraftfoods_us.htmhttp://www.adbrands.net/us/kraftfoods_us.htmhttp://www.adbrands.net/us/kraftfoods_us.htmhttp://www.adbrands.net/ch/nestle_ch.htm


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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 H ighl ights about Uni lever

Founded 1930 Headquarters London, England and Rotterdam the Netherlands Worlds leading margarine producer Worlds leading soap and detergent maker Worlds leading maker of packaged tea Worlds leading ice cream maker One of the Worlds largest consumer products company

1.2.2 M ission Statement

Unilevers 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. Walls 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 l if e:

Mention ice cream and most people think of the Heart brand.

The brand with the big red heart logo is behind many much-

loved ice cream classics from indulgent treats like Magnum

and Cornetto.

1.3.2 M aking 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 forsmaller 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 A NALYSIS

2.1 Wall's - Global Leader

Walls 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, walls has also taken a co nscious step to providing healthier and nutritious products. Walls 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. Walls is striving to be a healthi er 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 segmentin 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 toearly adopters.


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2.4 Organizational Chart


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CHAPTER 3

3 MARKETING A NALYSIS

3.1 Current Market Situation of Walls

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:

Wall's65%Ice cream

Parlours[PERCENTAG

E]

Omore[PERCENTAG

E]

Others5% Market Share


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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 Demogr aphic Segmentati on

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. Walls 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 Geographi c Segmentati on

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 its mainly, the

number of population of that area and the living standard of that particular location. The

wall's has been targeted both urban as well as rural areas.

3.2.3 Behavioral Segmentati on

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 F actor s of M arket At tr activeness

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


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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 I nter nal Recor ds

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 M arketing I ntelli gence

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 companys 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


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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 M ark eting 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 thecontinuous changes in the environment may lead to a decline, timely and accurate

information regarding these changes is important.


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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 designers 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. Walls is using very attractive des ign 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 F avour ite Br and of I ce-Cream

In a study conducted, o ver half the respondents claimed that Walls 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 Walls variety 80% adults and 86% children claimed a Walls 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.

Walls Twister are priced the lowest of the branded products (Twiste r: adults 74%, children

69%).


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4.4.2 I ce-Cr eam Pur chase Behavior s

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 notavailable. 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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5.1.4 Techn ological 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 Porters Five Forces Analysis of Walls

5.2.1 Th r eats of n ew entr ants

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 exis tence of substitute products lowers Walls attractiveness and profitability. The

closets substitutes available in the market are and Omore.

5.2.3 Bar gain in g power of suppliers

Walls 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 Bar gaini ng power of Customer s

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 I ntensity of r ivalry

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 M IX 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 customers has so many options to select

the brand according to their taste. This creates a good image in the mind of the customer

which resulting the customer loyalty about the Product.

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 W alls ice -cream

To attain a substantial competitive advantage in product quality walls has understood, what

Dimensions customers perceive to underline difference in quality across product. The Walls

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 Walls has emphasis a ggressively

promoted a different quality dimensions.


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6.5 Durability

6.5.1 Conformance to Specif icati ons

Absence of defect has been a major focus of the Walls. It has been the primary focus of ice

creams quality improvement program. Walls relied heavily on bro ad product line.

6.5.2 Features

Wide variety of features both standard and optional to offset this shortcoming on some of the

other quality Dimensions.

6.5.3 Reliability

The reliability quality Dimensions of Walls ice cream refer to the consistency of performance

form purchase to purchase or to a products up time that it perform satisfactorily over its life.

Walls maintain a competitive advantage based on reliability by deign product with several

attribute, due to this reason walls ice cream maintain a strong position in Market segment

consisting of large scale ice cream user.

6.5.4 Serviceability

The quality diminution of service ability refers to customer ability to obtain prompt and

competent services when customer needs ice cream. Walls organization decided to provide

24-hour ice cream service any ware in the city. The many of this quality diminution can be

difficult for customer to evaluate particularly for consumer product. As a result consumer

often generalize form quality Dimensions that are move visual or qualitative.

6.5.5 F it and F inish

A fit and finish Dimension helps convince consumer that a product is of high-quality. Theytend 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 products 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 Walls 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 Ps 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'soften add new features in the product and also decrease its price.

6.9.2.2 Product Line Pricing

Setting the price steps between various productions in product line, based on cost difference

between the production, consumer evaluation of features, and competitors prices Walls has

very long range of its line of products.

6.9.2.3 Price Adjustment Strategies

Wall's uses the same price strategies for all regions. They are giving 5%discount to their

wholesalers and 7% to their retailers. Company provides off-season quantity discount (3 extra

ice cream pieces on the purchase of a cart onto their dealers.)


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6.9.2.4 Pricing strategies

There are two main strategies for pricing, which the companies adopt.

Market-Skimming Pricing Market-Penetration Pricing

6.9.2.4.1 Skimming Pricing

Market skimming involves setting a price that is high in the range of expected prices. This

strategy is particularly suitable for new product because in the early stages of a product life

cycle, price is less important and competition is minimum. Product user is from high-income

group and they are financially strong and they are not price conscious. Profit margin is high.

We cannot set this strategy for a long period of time because after some time

competitor arrives in the market and competition among them start.

6.9.2.4.2 Penetration Pricing

Establish distribution centers all the cities where the Ice-cream to be supplied, these

distribution centers will have a storing facility that is a large freezer room for storing the ice-

cream, 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.


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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 inturn provide their products to the final consumers. In actual there are 280 distributors other

than SPDs. These distributors break up the large consumer base into regions and territories

that they cover.

6.9.3.1 Distribution Channel

Distribution channel consists of all the people and organizations, which are involved, in the

physical distribution of goods. Selection of proper distribution channel is very important

aspect because if the channel is managed efficiently. Companies can save high costs and thus

generate profits. The cooperation of channel members is also of vital importance. Distribution

is making the product available but this availability should ensure that product must be:

At right place At right time In right condition

If there is any deficiency in any of these basic elements of distribution, the future of product

would be uncertain. Distribution is such an activity, which could decide the fate of the

product.


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WALLS has a H ybrid Di str ibution System . It reaches different customers through different

systems. WALLS is using two types of distribution channels, both are indirect channels.

This is commonly used, in which the WALLS factory send the products to the local

distributors who supply the products to the retailer in the required quantity. The retailer then

sells it to the customer. The specialty and effectiveness of this system is excellent.

The reason for such an excellent distribution system is the distribution policy. If a retailer

wants to sell an ice cream, the investment he needs to do is as:

RetailerSecurityfor the

freezers

Investment on Icecream products

Board foradvertisement

Totalinvestment

required

Others 15000 12-15,000 3000 30,000

WALLS Nil 12-15,000 Nil 15,000

Thats why most retailers are attracted to the WALLS. Another important thing which needs

to be discussed about the distribution is that during this distribution channel, the standard

temperature of the cold chain is maintained.

6.9.4 Promotion

The marketing mix activities of a product planning, pricing, and distribution are performed

mainly within the organization or between the organization and its marketing "partners".

However, with promotional activities, the firm communicates directly with potential

customers. Promotion is the element in an organization's marketing mix that serves to inform,

persuade, and remind the market of the organization and its products.

6.9.4.1 Promotional Methods

The promotional mix is the combination of personal selling, advertising, sales promotion,

publicity, and public relations that helps an organization to achieve its marketing objectives.

PRODUCER DISTRIBUTOR RETAILER CONSUMER


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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 AdvertisingAdvertising 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 betweenadvertising 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 R ECOMMENDATIONS & 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 isnot available.

They should continuously advertise on different media. Concentrate on delicious taste not too sweet or too fruity. Saving schemes should be introduced on special events like Ramadan. Through this

their sale will increase.

7.2 Conclusion

In this project we discuss the history of the walls company and product line in Pakistan.

There are many competitors in the market.

After the analysis this company is the number one ice cream company in Pakistan. This

company is the project of Unilever they sold Walls to Lever Brothers in 1922 this company

is not only in ice cream but they Walls ice cream introduced in 1995 in Pakistan under

Unilever brand. Unilever is one of the biggest brands in Pakistan and 56 other brands are

registered under

Unilever is FMCG Company and is selling 150 million products daily all over the world. It is

just because of development and usage of information technology in the strategy and

operations.

Walls Marketing Analysis

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