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GROUP MEMBERS:

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Contents
Acknowledgement........................................................................4
Introduction of Company...............................................................4
History of Corporate.....................................................................6
MISSION STATEMENT.....................................................................7
Adding vitality to life....................................................................7
Walls guaranteed Halal - Statement...............................................8
Innovations................................................................................ 8
Company`s orientation towards launching Cornetto........................9
Ingredients..................................................................................9
GOODS CLASSIFICATION..............................................................10
OBJECTIVES OF WALL'S................................................................11
Target market:............................................................................11
Market Attractiveness.................................................................11
Product life cycle:.......................................................................12
Stages of Product Life Cycle:.................................................................13
Changing the Marketing Mix:.......................................................15
Position of walls (Cornetto) in PLC stage:.................................16
Strategies of Product Life Cycle:..................................................17
4Ps OF CORNETTO:....................................................................18
Pricing :.....................................................................................19
Pricing strategies.......................................................................19
PRICING STRATEGY.....................................................................20
Placement.................................................................................. 21
Promotion..................................................................................21
Promotional mix.........................................................................22
1. Promotional Objectives...........................................................24

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Promotional Tools.......................................................................25
1. ADVERTISEMENT:.................................................................25
2. SALES PROMOTION...............................................................26
3. Public Relations....................................................................27
Packaging..................................................................................27
DISTRIBUTION CHANNEL..............................................................28
DISTRIBUTION STRATEGIES..........................................................30
Marketing Environment...............................................................31
CHARACTERISTICS OF THE MARKET..............................................31
Micro Environment:................................................................31
Market Segmentation..................................................................33
Macro Environment:...............................................................33
MAKET SEGMENTATION PROCESS.................................................34
Market Targeting Process............................................................37
Product development process of eight steps................................37
Internal sources.......................................................................38
External sources:...................................................................... 38
Idea screening:........................................................................38
Concept development and testing:-...........................................39
Concept testing:.......................................................................39
Product development...............................................................40
Commercialization:...................................................................40
Product position.......................................................................41
SWOT ANALYSIS..........................................................................41
Marketing Department (sales force).............................................43
Hierarchy of Marketing Department (sales force)..........................44
INTERVIEW QUESTIONS...............................................................45
Survey questionnaire:.................................................................48
REFERENCES
....................................................................................... 53

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Acknowledgement
All praises to ALLAH Almighty who has blessed us with knowledge to accomplish
the task of completing this project. This project has given us a chance to observe
the practical work of an organization closely and the condition of the market.
Finally this project has enhanced our analyzing power and sense of observation.
We all are very thankful to our respected course instructor who had assigned us this
valuable project. It is our worthy instructors kindness that we are at this level of
knowledge. And under her supervision, now we feel that we know the marketing
management very well. Our word of thanks goes to Mr. (Marketing
Manager Walls) for the manuscript he provided and his assistance over the entire
period of the operation of this project. We would like to acknowledge and show our
deep gratitude to following persons who helps us to accomplish our task

Introduction of Company

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. The
company manufactures and markets home and personal care product, beverages, ice cream and
spreads. Some of its brands are Supreme Tea, Clear Shampoo, Close Up, Comfort ,Fair & Lovely
, Lipton Supreme Tea, Lifebuoy soap & shampoo, Lipton, Lux, Surf Excel, Walls, Wheel,
Lipton, Sunsilk, Surf (detergent), Knorr, Rexona, Kissan, Lipton Ice Tea.

Unilever is the worlds largest manufacturer of ice cream which in fact holds almost 18% of the
global market share. And the brand is known as Wall`s ice cream. In Pakistan the Heart brand is

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called Walls 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 favorites, hence catering to a variety of diverse tastes.

Walls is a trusted ice cream and frozen desserts brand in Pakistan. It is ranked as # 24 in
Newsweeks list of Asias top brands, the largest player in the Pakistan ice cream market and
holds the lions share of the market. All Walls products are halal and are made with halal
ingredients in a halal compliant manner.

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 1996, Polka approached Wall's with an offer to merge the two companies. So
they merged in 1996 and now it is called Wall's not Polka.
The Walls 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 Walls to launch exciting new products
every year.

Wall`s products are sold in more than 40 countries. Walls 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.

The Food industry can first of all be segmented into two groups readymade food and
unready food which is found in the restaurants. In readymade food we have the segment of
cool desserts industry which is named as ice-cream industry. The walls Ice-cream factory is
highly technological and they are using state of the art machinery which makes it as the
leading ice-cream producer of Pakistan

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History of Corporate
The history of Unilever dates back to 1885. William Hesketh Lever established a soap
manufacturing company in UK with his brothers and named the company lever brothers in 1885.
Their product, Sunlight, the world`s first packaged soap, was very successful. Fifteen years after
the product`s launch in the UK, Lever brothers started selling the soap in Europe, Australia,
South Africa and United States. As the company needed a large quantity of vegetable oil to
produce soap, it established plantations and trading companies throughout the world to source
raw materials and to distribute its products.

Two butter-makers, Jurgens and Van Den Berghs, formed margarine union in 1927. The Dutch
margarine union merged with Lever brothers of United Kingdom in 1929 to form Unilever. For
tax purposes, two separate entities were established, one in London and another in Rotterdam.
While Unilever lost out to Procter and gamble in United States, it continued to enjoy success
with its products in the rest of the world. Unilever has continued to diversify acquired twenty-
seven businesses around the worldwide. These have contributed to the expansion of the
company`s products and services. Unilever is now a global leader in the area of personal care,
home care, margarine, tea-based beverages and ice-cream products.

The reason for introducing Cornetto in industry

Our major focus of this project is the ice cream Cornetto. The idea of selling frozen ice-cream
cones had long been a dream of ice-cream makers, but it was not until 1959 that Spica, an Italian
ice-cream manufacturer based in Naples conquered the problem of the ice-cream making the
cone go soaked and soft. Spica invented a process, whereby the inside of the cone was coated
from the ice-cream by a layer of oil, sugar and chocolate. Spica registered the name Cornetto in
1960. . They made a big impression on the Unilever employees when they visited Spica in 1962.
The company was actually acquired by Unilever soon afterwards. Initial sales were poor but after
when Unilever bought out Spica in 1976, they began mass-marketing campaign throughout
Europe which increased sales.

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Cornetto made a number of appearances in all over UK in the 1960s and 1970s but it was during
a heat wave in summer of 1976 that it really took off. Advertising campaigns had major hand in
that. In 2004 the Cornetto team presented the Cornetto Love Potions, a limited edition range of
six exotic cones in very exciting flavors combinations such as Tiramisu & Cinnamon,
Cappuccino & Irish Cream and also Choc chip & Hazelnut. In 2007 the Cornetto Chocolate
recipe got even better. It contains a delicious chocolate ice cream topped with caramelized
almond and chocolate pieces in a crispy baked wafer. And in 2009 Cornetto Love ice creams
were launched. Cornetto Love Chocolate combines milk, dark and white chocolate ice creams in
a chocolate wafer cone topped with triple chocolate curls. Cornetto Love Disc offers smooth
vanilla ice cream with a rich caramel core, topped with a chocolate disc with cashew nut pieces.
Cornetto is available in nine varieties, Strawberry, Classico, Love Chocolate, Love Disc and
Cornetto Minis, etc

Cornetto in Pakistan was launched in 15 September, 1994 with the tag line Love in every bite.

MISSION STATEMENT
The current statement that LBPL is following is as follow:

Lever brothers will be the foremost consumer product company in Pakistan with care, skin, ice
cream and spread. Already positioned in tea, hair, dental and household care, substantially
profitable position in cooking oils and fats our strengths come from our people and from
combining the best of our international as well as Pakistan origin. Our commitment is to
continuously care for the need of our customers, consumers, employees, suppliers, share holders
and the community in which we live.

As one of Unilevers leading brands, it has always been Walls mission to add vitality to your life
while being responsible about good nutrition.

Adding vitality to life

Thats why were constantly adjusting our range to keep up with changing needs. Calcium
enriched products are available to add nutrition and health benefits for kids and adults, smaller
sizes for smaller appetites and old favourites for those nostalgia lovers - theres something for
everyone.

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Walls guaranteed Halal - Statement

All Walls ice creams produced by Unilever Pakistan are guaranteed
Halal

Unilever is the biggest branded ice cream manufacturer around the world,
selling millions of ice creams every day in more than 40 countries. Ice
creams produced by Unilever vary from country to country, since recipes are tailored to domestic
demand, based on taste, legal and religious requirements. We therefore do not necessarily use the
same ingredients everywhere.

Unilever Pakistan guarantees that all Walls ice creams produced and marketed by it in
Pakistan are in total conformance with the requirements of Halal products and are
perfectly safe for consumption by Muslims. All elements in the products, including raw
materials, trace ingredients; packaging and production processes used in our factory
strictly conform to local legislation, religious and cultural requirements. We are very conscious
about the need in particular to ensure strict compliance with Halal guidelines. A Halal mark is
printed on all wrappers in confirmation of this.

Unilever has been operating in Pakistan for 60 years. Over this period, our brands in Home Care,
Personal Care, Foods, Beverages and Ice Cream have become market leaders. Millions of people
use them daily because they conform to the highest standards and provide value for money. As a
multinational multi local company, we are committed to adding vitality to consumers and the
community in a responsible and locally appropriate manner.

Innovations
The Walls 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 Walls to launch exciting new products
every year.

Key facts about Walls:

Walls is the largest player in the Pakistan ice cream market and holds the lions share of the
market

All Walls products are halal and are made with halal ingredients in a halal compliant manner

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Company`s orientation towards launching Cornetto

Cornetto was a product-oriented launch. That is the company
introduced an innovative idea for ice-cream that is in cones and also
focused on the quality of the product rather than just trying to sell the
product through lots of promotions and tries to maximize profits. The
product has innovative features.

Ingredients
Ice cream is made from ice (water), milk, fat sugar and natural flavors and colours. All of these
ingredients are necessary for you in your diet to lead an active lifestyle. From these ingredients
you get protein that helps build body tissue, carbohydrates and fats which give you energy and
essential vitamins and minerals like calcium that help to strengthen bones and teeth.

Ice cream is the only food you eat frozen and offers a unique sensory experience

The average number of licks to finish off a single ice pop is 50

Every year all around the world, Walls sells enough Magnum ice creams around the
world four and a half times.

Launched in 1995 Cornetto is the number one selling hand-held cone in Pakistan
today.

In 1993 Lever Brothers formulated a team to search for new business potential in Pakistan. The
team concluded that there is a lot of potential in ice-cream market in Pakistan and Lever Brother
should enter the ice-cream market without any hesitation and so they decided to launch WALLS
Ice cream in Pakistan. WALLS is an SBU of Lever Brother--the biggest ice cream manufacturers
in the world. And second to it is Nestle The WALLS wanted to enter Pakistani Market through
acquisition strategy; it wanted to acquire Polka to minimize the time it needed to capture the
market. But initially Polka demanded very high price for their company. So WALLS established
an ice cream factory in Pakistan within eleven months which is a record time. And in February
1995, WALLS launched with twelve products. After the launching of WALLS it gave
tremendous services and Polka loosed its market share by a huge extent. At this time Polka tried
to sell itself to WALLS but now WALLS 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 rumor
that Nestle is coming through Polka which obviously WALLS did not want, so they purchased

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Polka in 1997. This acquisition made WALLS an unchallenged market Leader and it also
emerged as the Impulse brand with new level of excellence in take-home or desert ice cream.

WALLS was launched firstly in Lahore in 1995 and later year in Karachi and Islamabad. In
1996, it was launched in Faisalabad and in 1997 it was launched in Multan, Quetta, Hyderabad,
Peshawar and Euchar as well. After the acquisition, Polka became a brand under WALLS. 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-recognized logo in the world of ice cream. In 2003, we announced the
next step in building the world's most powerful ice cream brand, re-launching the Heart as
symbol of the serious fun of ice cream.

GOODS CLASSIFICATION
WALLS ice cream comes under the foods and beverages part of the Unilever chain. WALLS ice
creams are consumer, nondurable, convenience, packaged goods. WALLS has a variety of
products, ranging from low priced desserts like Rainbow to premium priced desserts like
Cornetto and Magnum.

Raw materials: Contract Suppliers

Production Unit: One Unit at Manga Mandi
Production Capacity: 10,000 Liters / day

PERISHIBILITY
Required Temp: -18C.
Life time (Out of freezer): 25 min.
Expiry: 10 months.
PACKING
Packaging: Multiple packaging
Small packs:
Sticks
Cones
Cups
Take home packs:
liter packs
1 liter packs
Tubs
Bulk packs: 10 liter packs
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

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Depicting the life style of its potential user.

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

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 walls 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

Market
Size
Growth including stage in product life cycle
Differentiation possibilities

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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
Price
Individual competitor analysis

Product life cycle:

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Introduction of Product Life Cycle:

All products possess life cycles. A product's life cycle, abbreviated PLC, the life cycle refers to
the period from the products first launch into the market until its final withdrawal and it is split
up in phases. Since an increase in profits is the major goal of a company that introduces a
product into a market, the products life cycle management is very important. The understanding
of a products life cycle, can help a company to understand and realize when it is time to
introduce and withdraw a product from a market, its position in the market compared to
competitors, and the products success or failure.

The products life cycle - period usually consists of five major steps : Product Development,
Introduction Stage, Growth Stage, Maturity Stage and finally Decline Stage. These phases exist
and are applicable to all products or services from a certain make of automobile to a
multimillion-dollar lithography tool to a one-cent capacitor. These phases can be split up into
smaller ones depending on the product and must be considered when a new product is to be
introduced into a market since they dictate the products sales performance.

Stages of Product Life Cycle:

Product Development:

Product development phase begins when a company finds and develops a new product idea. This
involves translating various pieces of information and incorporating them into a new product. A
product is usually undergoing several changes involving a lot of money and time during
development, before it is exposed to target customers via test markets. Those products that
survive the test market are then introduced into a real marketplace and the introduction phase of
the product begins. We now make the product do something it did not do in the past. This is a
more significant product modification.

Introduction Stage:

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The introduction phase of a product includes the product launch with its requirements to getting
it launch in such a way so that it will have maximum impact at the moment of sale.

This period can be described as a money sinkhole. Large expenditure on promotion and
advertising is common, and quick but costly service requirements are introduced. A company
must be prepared to spend a lot of money and get only a small proportion of that back. In this
phase distribution arrangements are introduced. Having the product in every counter is very
important and is regarded as an impossible challenge. Some companies avoid this stress by

Hiring external contractors or outsourcing the entire distribution arrangement. This has the
benefit of testing an important marketing tool such as outsourcing

The introduction stage has more recently been termed the product development process. Rapid
change, increasing competition, complexity, organizational stress and high customer expectations
have combined to support a process for reducing product development time. With time as a
critical factor in todays market, speed to market can create a competitive advantage. Instead of
being viewed as a single stage, the introductory stage has become the product development
process with as many as seven different parts..

Growth Stage:

The growth stage is where the rising tide of consumer interest lifts the boats of all participants. If
there were no competitors in the introduction stage, they are now a factor. Consequently,
additional product features and support may be needed. Prices are steady to declining, as every
participant in the industry is focused on market share and becoming the low-cost producer. Costs
are declining with increasing volumes, and profits are improving. Distribution is increasing as
well. Competitors are attracted to enter the market.

The marketing mix includes the four Ps: product, price, place (distribution) and promotion.
During the growth stage place becomes a hot bed of activity. Frequently this involves or will in

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the maturity stage changes to product, price and promotion. The product may need
modifications for new markets with different packaging, warranty and service requirements.
Price may come into play not just as list price but in discounts, financing, terms and other
options. Promotion activities such as advertising and public relations will change as new
channels of distribution are entered and need to be supported.

Walls Ice Cream growth was an outstanding 40%, achieved through an exciting stream of
innovations, aggressive market penetration, 360 Degree Communication (TV Commercials,
Outdoor, Print and Visibility activation) and constant attention to consumer affordability.
During the year, 25 new products were launched; some examples are: Kulfi, Moo, Super
Twin, Magnum Caramel & Nuts Bar, Cornetto Super relaunch, In Home premium range,
Cornetto Junior, Magnum premium range and Donut.

Maturity Stage:

The market maturity stage occurs when the market has become saturated. Sales growth rate tends
to decrease. Efforts are focused on differentiation of the product. Pricing may be lower because
of increased competition. More internal pressure is placed on reducing costs. Margins begin to
shrink as marginal competitors are forced out of the market. Distribution is maxed, and
promotions come into play as a way to encourage preference over competing products.

Decline Stage:
The decision for withdrawing a product seems to be a complex task and there a lot of issues to be
resolved before with decide to move it out of the market. Dilemmas such as maintenance, spare
part availability, service competitions reaction in filling the market gap are some issues that
increase the complexity of the decision process to withdraw a product from the market. Often
companies retain a high price policy for the declining products that increase the profit margin
and gradually discourage the few loyal remaining customers from buying it. Such an example
is telegraph submission over facsimile or email. Dr. M. Avlonitis from the Economic University
consideration all the attributes and the subsequences of product withdrawal process.

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Changing the Marketing Mix:

Premiums & Gifts: Premiums and gifts are excellent tools for inducing initial trial, brand
switching, and repeat purchases.

Coupons: Coupons are a type of sales promotion and can be even more effective than gifts or
premiums for generating added sales for brands . If you are a "coupon clipper," you are are
considered to be in a" coupon-elastic" market segment.

Entertaining Advertising: Probably one of the best things that you can do at any stage of the
product life cycle is to have entertaining advertisements that attract and hold people's attention.
Many people watch TV for the entertaining commercials.

Position of walls (Cornetto) in PLC stage:

It is standing on the maturity stage with 65% of total market share. To stay competitive in the
market it needs to introduce time to time new offers and flavors and different promotional
schemes.

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Strategies of Product Life Cycle:

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4Ps OF CORNETTO:
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 Cornetto, the product is the ice cream

production by the company.

Core Product: Ice cream, as a desert after meal.

Actual product: The high quality level, different tastes,

flavours, packaging and the heart shape icon.

Augmented product: provide tastes and hyginene as well as nutritional ingredients.

Ice cream may generally be categorized as convienent product, product which consumers buy
frequently, immedietely 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.

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.

Brand Mark

Brand mark is a part of brand that appears in the form of a symbol, design, or 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.

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Pricing :
Introduction

"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 stratigy depends
on pricing objectives.

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
Profit
Market growth

Pricing objective of Wall's are market growth, sales volume and also making profit. To achieve
these objectives Wall's oftenly 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 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 on to their dealers.)

Pricing strategies
There are two main strategies for pricing, which the companies adopt.
Market-Skimming Pricing
Market-Penetration Pricing
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

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can not set this strategy for a long period of time because after some time competitor arrives in
the market and competition among them start.

Penetration Pricing

Establish distribution centers all the cities where the Ice-cream to be supplied, these
distribution centres will have a storing facility i-e a large freezer room for storing the ice-
cream, the temperature maintained in the freezer room will be -50 degrees Centigrade.
These distribution centres 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 salers, 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.

PRICING STRATEGY

What was the pricing strategy used, and what was the objective of using this strategy?

As Cornetto is targeting middle and upper-middle class youth, the price of Cornetto 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.

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Wall`s set a specific price which was not too low nor too high because people might have
thought the quality is not good thats why the price is low or its very expensive. They had to
consider their variable cost, fixed cost n then decide the price.

Wall`s wanted to capture the market so they didnt wanted 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.

For Cornetto, 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.

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 every
where 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 oftenly
made impulse buying which increases sales. Walls also wants to get its ice creams available on
the shelves of the millions of retailers all over the country and in turn in the hands of the
consumers. So it uses distributors who can cater to the size of Walls and its consumer base.
These distributors make the ice creams made by Walls available to the final consumers. Here
Walls uses Indirect Marketing Channels, that is it has intermediaries (distributors) between
the company itself and the retailers who in turn provide their products to the final consumers. In
actual there are 280 distributors other than SPDs. These distributors break up the large
consumer base into regions and territories that they cover.

Promotion
Introduction
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.

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Promotional Methods
The promotional mix is the combination of personal selling, advertising, sales promotion,
publicity, and public relations that helps an organization to achieves its marketing objectives.

Our aim is to spark the taste and feeling of summer in everyones day. Life is there to be
enjoyed and we are the fun part of vitality. We constantly provide new products and experiences
that excite the senses and inspire people of all ages to 'taste the fun side of life---------
Promotion Statement.

For any company to capture the market of its own wish and target, promotion plays the most
important role in fulfilling the quest for market share. Although the process of promotion is very
complex and can be looked in detail:

Ice Cream makes you happy its official!

Walls carried out scientific research which shows that ice cream actually makes you happy. The
study was carried out using FMRI brain scanners, and showed that eating Walls had an
immediate effect on the part of the brain that is activated when someone is really enjoying
themselves the please areas.

So we now have scientific evidence to prove what we all already knew, that ice cream really does
make you happy!

Promotional mix
Cornetto being a product of FMCG is being marketed by Walls mainly through
advertisements on television. The advertising strategy has been changed over the recent years
for Cornetto. In the beginning Cornetto advertising was done to give the consumers an idea of
the major ingredients used in making it like cream, nuts, chocolate and cone. But this strategy of
ingredient awareness in Pakistan has now changed from an ingredient awareness strategy
towards a more emotional (relationship building) strategy. Now Cornetto advertisements are
catering to get attention of the youth particularly, through its couple relationship and love
building adds. Since the beginning Cornetto has been targeting the youth but now its
advertisements are more focused.

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Not only is walls mass marketing Cornetto through commercials but "walls" is also
sponsoring different television programs. Walls has sponsored Canteen Kahaani in a way that
it turns out to be a publicity campaign more than a sponsorship. Canteen kahaani was on aired
from Ary digital. This form of advertising is impulsive in nature. The concept of canteen
kahaani was to target college going youngsters and to focus on the life of a boy who falls in
love with a girl. This concept of canteen kahaani provided a complete experience to the
viewers. Walls does not rely on billboards and radio for advertising because they believe that the
more the consumers get to see their products, the more it will retain its position in the minds of
consumers. The managers at walls believe that once an individual passes by a billboard, within
45sec, he forgets what he saw. They also state that billboards are a relatively expensive medium
of advertisement which is incapable of capturing and retaining consumer attention over longer
durations.

In another attempt to capture the attention of the youth, walls sponsored a Pakistani bands
song namely, Jal-the band, and featured its lead singer Farhan Akhtar against bollywood
actress Amrita Rao. This strategy to capture the youths attention did tend to increase the youths
attention towards the product and promote it. Coming to print media, cornetto is being advertised
in Sunday and fashion magazines. On the other hand Cornetts special sales promotions are
publicized in newspapers such as dawn and daily times.

Walls is using internet as a medium of advertisement as well. In order to capture the

youth it has launched its personal website by the name of http://www.cornetto.com.pk to promote
its flip-the-lid sales promotion. Similarly, by keeping in mind the increasing usage and addiction
of websites such as orkut and facebook, walls is promoting Cornetto along with other items, by
getting accounts and pages built for the company.

Walls is not using any form of personal selling for any of its products. Instead it is
heavily promoting its products on the basis of sales promotion tactics. Cornetto like other FMCG
products depends heavily on its Point-Of-Purchase outlets. According to the belief of one of the
managers at walls our job is to lure the customer to the point of purchase. Once the customer is
there, begins our basic task, to attract him towards our P-O-Ps. walls strategy of P-O-Ps

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including positioning their freezers at a place where they can attract customers eye before
anything else. Walls uses its heart-shaped monograms on all its P-O-P freezers. These freezers
are distributed free of cost to all sales outlets. Walls prescribes the positioning of its Cornetto
items to be above all the rest situated at a place where it can catch the consumers eye at most,
because it is the largest selling brand of Walls. The positioning of ice-creams depends on their
profitability. Walls is also attracting customers by posters of its products like magnum and
Cornetto.

Another sales promotion activity being used by walls Cornetto is flip-the-lid contest. Due
to the extreme success of its love-add featuring Farhaan (the lead singer of JAL-THE BAND)
and Amrita Rao, walls decided on pairing the two further in their flip-the-lid contest. This
promotion was heavily marketed online via website http://www.cornetto.com.pk/

The basic theme of this contest was to encourage the customers to consume as many
cornettos as they can by giving them the incentives to win several items such as free credit,
mobile phones, tickets to jal concerts, have fan meetings with them on weekly basis. All the
consumers had to do was to flip the lid of their Cornetto cone, and text the pin code to the
desired number.

For strengthening itself in PR markets walls plans to capture consumer satisfaction by

holding events within and outside the company boundaries. Occasionally, walls invites samples
of people over for panel testing such as blind-testing and focus group testing. It also conducts
market surveys in order to keep in mind consumer preferences and perspectives.

1. Promotional Objectives
Promotional objectives of the WALLs ice-cream are as follows

Inform
Persuade
Remind

Companies inform the people when they dont know about the product, persuasion takes place
when people already know about the product and company forces them to buy the product and

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when companies is selling enough quantities of a product it reminds consumers about the product
to keep the sales at the same level in future.

Promotion is important for firms in many ways. It helps to establish image of product, which the
manufacture wants to portray, and also the personality of product. It informs the people, creates
awareness and helps in positioning and repositioning of the product. With promotional tools
company can tell about the availability of product, company can justify prices or can
communicate the features of the product. WALLS is not promoting its products individually
because WALLS believe that the high quality it is providing through its products are more than
sufficient to prove its identity. We believe that now there is a need for WALLS to promote its
products separately as international competition is coming as well.

2. Tasks

Selection of different promotional tools advertising and media schedules and what types of
message are delivered to the target audience.

WALLs uses Advertising and Sales Promotion.

3. Cost/Budget

Estimated budget of WALLs of promotion is Rs.2.5 million (est.)

Promotional Tools
1. ADVERTISEMENT: WALLS is creating awareness about its new products such as
supper Cornetto, Carte DOR for this purpose it is using huge signboards on the major
square of the cities and more importantly both the print and electronic media for
advertisement and for that it is following AIDA model.

Awareness: The WALLS uses print and electronic media plus the signboards initially just to
create awareness and knowledge about its new product as these days it is giving a lot of ads of
both of its newly launched product Super Cornetto.

Interest: As the public gets awareness of the produces of WALLS the next step is to create
interest among the target buyers about the product which is again done through advertisement.

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Desire: The WALLS create curiosity among the customers and transform that curiosity into the
desire of the product.

Action: Finally to make the customer purchase the product this is the final thing to be done in
model. The WALLS follows a sequential pattern through which it strengthens its newly
launched products.

Or to put in another way, the concept can be very well understood with the help of the above
given building blocks:

Inform
Persuade
Remind

Companies inform the people when they dont know about the product, persuasion takes place
when people already know about the product and company forces them to buy the product and
when companies is selling enough quantities of a product it reminds consumers about the product
to keep the sales at the same level in future.

Promotion is important for firms in many ways. It helps to establish image of product, which the
manufacture wants to portray, and also the personality of product. It informs the people, creates
awareness and helps in positioning and repositioning of the product. With promotional tools
company can tell about the availability of product, company can justify prices or can
communicate the features of the product. WALLS is not promoting its products individually
because WALLS believe that the high quality it is providing through its products are more than
sufficient to prove its identity. We believe that now there is a need for WALLS to promote its
products separately as international competition is coming as well.

The theme of advertisement varies with the product image and positioning. But walls follow the
same theme internationally. The advertisements run on TV are made in foreign countries. The
objectives of advertising are the three basic ones which include informing, persuading and
reminding about different brands of walls.

WALLS have used all sorts of mediums of mass communication and one to one bases. The
mediums used in WALLS promotional activities are:

TV
Billboards
News papers
Magazines

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Radio
Banners
Pamphlets
Stands in shops
Shop boards
Sponsorships of pop stars, actors, models
Event arrangements
Bus Stop Board Ads
Fun carnival carried out in different parks such as Racecourse Park

2. SALES PROMOTION
WALLS has been going a number of sales promotion activities like the:

Cycling System:
WALLS started its cycling system for awareness but after that its task was modified into doing
sales promotions for the company. And also cycling system has proved excellent in terms of sales
and promotion.

- Discount Coupons:
WALLS launches very low price products for the purpose of both market expansion and sales
promotion. Like Solo for Rs.2 and Liter pack for Rs.45 was also to boost sales.

Discounts and Offerings:

Walls offered 5% discount in off-season.

3. Public Relations
For strengthening itself in relationship markets WALLS is not only going for customer
satisfaction but also stressing upon building strong public relations. For example, under the
umbrella of Unilever, WALLS has been trying to part in charity activities and also to stay in
front in national and religion events. For instance events like Valentines Day. WALLS uses such
occasions to not only promote its sales but also to build strong public relationships through
sponsoring events on this day. Moreover, it has recently started organizing colorful Fun
Carnivals too, which is totally a family affair. This is just an instance WALLS tries to gain
maximum of such opportunities.
. Customers
Price discounts
Quantity discounts

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. Distributors
Shares 50% of the distributors' expenses
Off season discounts: 5%

. Retailers
Free freezers to retailers
Investment on each retailer: Rs. 22,000
Free freezers maintenance

Packaging
The activities of designing and producing the container or wrapper for a product. Packaging
serves several safety and utilitarian purpose. It may be a part of a company's marketing program
and it is help full to identifying product among the competitor. Today, however, the marketing
significance of packaging is fully recognized, and packaging is truly a major competitive force in
the struggle for markets. As walls is a perishable consumer product so it is carefully packed, so
that it can protect the product in its way to the consumer, provide protection after the product is
purchased, help in acceptance of the product from middleman and help persuade consumer to by
the product. Packaging of wall's also containing information about the product.

Labeling

Labeling is another product feature that requires managerial attention. A label is a part of a
product that identifies the product, describes several things about the product who made it where
it was made, when it was made, its contents, how is to be used and how to use it safely. 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.

Design and Colour

One way to satisfy customers and gain a competitive advantage is through skillful product
design. In fact, a distinctive design may be the only feature that significantly differentiates a
product. Many firms feel that there is considerable glamour and general promotional appeal in
product design and designer's name. In the field of business products, engineering design has
long been recognizing as extremely important. Today, there is a realization of he marketing value
of appearance design as well. Color often is the determining factor in the consumer acceptance or
rejection of a product.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.

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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.

WALLS has a Hybrid Distribution System. It reaches different customers through different
systems. WALLS is using two types of distribution channels, both are indirect channels.

DISTRIBUT
PRODUCER OR RETAILER CONSUMER

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:

Security Investment on
Total
for Board for
Retailer investment
Ice cream advertisement
required
the freezers products

Others 15000 12-15,000 3000 30,000

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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.

PRODUCER

STOCK POINTER DEALER

RETAILER

(CYCLES)

CONSUMER

The second type of system was more a short term distribution system which has just for the
introduction stage to actually made the product reach everywhere and the system was more of
creating awareness than actual retailing purpose. But the cycle distribution system yielded
excellent results in terms of sales and creating awareness about the products. Now the cycle
contributes a big percentage of shares in the overall sale of the company. So this has now become
a permanent distribution channel of WALLS.

One of the major reasons of early success and clean sweep given by walls is its availability,
which is ensured through extensive distribution. There is not even a single city in the country
where one cannot find a walls freezer or hear the sweet music of the trike (tricycles), which acts
as a direct marketing for it. Thus, WALLS has always tried its best to ensure the availability of
the product as close to the customers as possible and WALLS has been very successful in that.

DISTRIBUTION STRATEGIES

There are two main distribution strategies, which WALLS has very effectively used.

1. In first strategy include incentives like free deep freezers, discounts on bulk purchases.

2. Advertising campaign that reminds and persuades customers to buy ice cream supports
2nd strategy, which is facilitated by price offs, which are frequently offered by the
company.

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What was the Distribution Strategy and how were the retailers or wholesalers role
determined?

Wall`s Cornetto is easily available everywhere which indicates that its distribution in widespread.
Wall`s provide their own deep freezer so that the ice cream doesnt melt. Wall`s gives a 18%
margin to its retailers and distributors. Pakistan is divided in 3 sections. North (Islamabad,
Peshawar and Northern areas), Central (Lahore and Central Punjab), South (Sindh and
Baluchistan).

While deciding the distribution channels it is really important to see that what aspect will give us
less cost and high profits. The product should be launched on right time, at the right place and in
the right condition. It is very important otherwise the product may get destroyed and if the
launch is not on time then whats the point of selling that product. Product distribution plays a
vital role in the products fate, because if the distribution is not correct or the placement is not at
the right place then there can be no sales means losses for the company.

Wall`s reaches different customers through different channels of distribution; that are producers,
distributor, retailer and consumer. Wall`s factory sends the product to the local distributors who
supply the product to the retailers. Then the retailers sell the product to the consumers. This is the
best way to sell the product.

Wall`s gives incentive to the retailers by providing deep freezers so that the placement of the
product is easy for them and they dont have issues in placing Wall`s ice cream. And secondly,
they give bulk discounts to the retailers and this attracts the retailers.

Wall`s does advertising campaigns so that they can remind and sustain their consumers to buy ice
cream. Like recently, they made an advertisement in which some stars were there. In a song as
well Wall`s Cornetto was advertised. So this is a way they advertise their product. Wall`s give
price cuts as well. This also attracts the customers.

Wall`s use intensive distribution strategy that is to distribute low priced or impulse purchase
products among which one is Cornetto.

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Wall`s introduced a tricycle which goes door to door and sells ice creams with a soft music on,
which is a symbol of Wall`s.

Marketing Environment

CHARACTERISTICS OF THE MARKET

The marketing environment refers to all the forces outside the company that affects the
marketing management to build and maintain successful relationship with target customers. The
company must keep an eye on its changing environment. Walls Cornetto Company is constantly
making efforts to realign it with changing environment. There are two types of environments that
are taking place in Walls.

1. Micro environment
2. Macro environment
These can be individually explained as below:

Micro Environment:
The Micro Environments of the Walls Cornetto are:
The Company
Supplier
Market intermediaries
Customer
Competitor

The Company:
In marketing for Walls Cornetto, the company has to take other groups or departments of
company into account. Such as finance, research and development, purchasing, operation,
accounting department. So that it can market its product according to its resources and
environment.

Suppliers:

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Suppliers form an important link in Walls overall customer value delivery system. They
provided the inputs to the company, e.g. cream, almonds and flavors. They have no dairy
farm of their own. So they buy all the cream from outsiders and their all flavors come
from other countries because they are most available in Pakistan.

Marketing Intermediaries:
Marketing intermediaries help the company to promote, sell and distribution its products
to final buyers. The marketing intermediaries of Walls include physical distribution
firms, whole seller and retailers. They also give franchises to tricycle distribution
companies and they further market their product. This is very favorable for the company
as it provides the product to consumer at the doorstep.
Customers:
The Walls Cornetto Company mainly focuses on customer market that consists of
individuals and households for their personal consumption.

Competitors:
There are no major competitor of Walls Cornetto Nationwide presents but now the
Omore is going to be its majors competitor in the near future, Mr. Kamran in his
interview.

Market Segmentation
Macro Environment:
The Macro environments of the company are:

Demographic Environment
Economic Environment
Natural Environment
Political Environment

Demographic Environment:

Demography is the study of human population in terms of size, density, location, age, gender,
taste and other statistics. The WALLS Cornetto Company mainly focuses on urban and suburban
areas of Southern zone of Pakistan. Like Karachi, Lahore, Gujranwala, and others. In Lahore

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most of the people prefers kulfa flavor, in Karachi they prefer chocolate flavor and in
Gujranwala they like vanilla flavor. said Mr. Muhammad Kamran (sales manager WALLS) in
his interview. Most of the consumers of WALLS Cornetto are teenagers or generation Y with the
age 17 to 30. Changes in Pakistan demographic environment have major implication for business
of WALLS Cornetto. For example, this is a period of great migratory movements between and
within countries. The shifts of people of northern areas to southern areas and from southern areas
to northern areas of Pakistan have great effect on WALLS Cornetto business. Thus the Company
is keeping close track of demographic trends and develop their market.

Economic Environment:

Economic factors are those that affect consumer buying behavior. As this is an era of great
depression, there is a change in the income of the consumer so the sales of walls Cornetto are
affected by this. Upper and middles class consumers spending patterns remains the same but the
working less consumer started spending less on ice-cream.

Natural Environment:

The natural environment of Walls Cornetto involves all the natural resources that are needed as
inputs by the company and are affected by market activities. The natural resources for Walls
Cornetto are milk cream, almonds, strawberries etc. They are always aware of several trends in
the natural environment. For example, shortage of milk and cream in summer and the shortage of
strawberry in off seas

Political Environment:

Political environment affects the Walls Cornetto consumer not the Company as much. said
Mr. Muhammad Kamran. When government imposes various limits and taxes in the market, the
company is not really affected to those taxes because they are consumer taxes and consumer has
to pay for that.

Responding to the Marketing Environment:

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Overall, the walls Cornetto Company is taking proactive stance rather than simply watch and
reading. They take aggressive actions to the changes in the environment and develop their
product according to these changing. Marketing management cannot control environmental
forces every time. In many it must settle for simply watching and reacting to the environment.

MAKET SEGMENTATION PROCESS

Today Walls 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:

Walls 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 Gujrawala and than North
from Gujrawala 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.

Demographic Segmentation:

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

Psychographic Segmentation:

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The psychographic segmenting is done on the basis of the social class, lifestyle and personality
characteristics. The Walls Cornetto is targeting all the social classes except of lower lowers and
lower uppers.

Country Pakistan

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

Density Urban, Suburban

Climate Southern

Behavioral Segmentation:

The company divides a market based according to the consumer taste, knowledge, attitude, use
and response to their products. WALLS 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.

Demographical:

Age 17-30

Gender Male, Female

Income 30000+

Generation Generation Y
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Occupation Students, couples
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Psychographic:

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

Behavioral:

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 Walls 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.

Walls Cornetto mainly used undifferentiated (mass) marketing strategy because ice cream will
always be mass marketed. They have to do business on large scale so Walls Cornetto Company
is using mass marketing.

Product development process of eight steps

Idea Idea Concept Marketing

Developme Strategy
Generati nt Developm
on Screening 37 | P a g e
Business Product &Testing
Test ent
Commercializat
Analysis Developme Marketing ion
nt
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New product development process of product starts with idea generation.

Major sources of new product ideas include internal sources and external sources.

Internal sources
Idea of Cornetto came from:

Product development teams (by watching the trend of simple cone in market)
Formal research and development (asked consumers through questionnaires )
Brains of its executives, scientists, engineers, manufacturing staff and salespeople
Companies successful intrapreneurial programs (encourages employee to think about new
product in ice creams )
Value innovation program

External sources:
Customers (through questionnaires)
Competitors (Wall`s get clue about their new product by watching competitors ads,
analyze the sales, and then decide).

Distributors (it might be possible that some customer ask a cone like ice cream as they
have information about consumer liking disliking about their changing tastes because
they are close to the market).

Suppliers (tell company about new concepts, techniques and materials that can be used to
develop new products).

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Idea screening:
The companies try to reduce the number of ideas and choose the best one which they
think that they can turn into profitable product.
Companies require their top executives to write up the product idea in a standard form
like their target market, competition.
In the idea screening of product Cornetto the product committee asked several questions
like:
Is this product is useful or good for the consumers or society, or does it have such
ingredients that might b harmful to consumers health?
Does it match well with the company objectives and strategies?
Do we have people, skills and resources to make it succeed?
Is it easy to advertise and distribute?

Concept development and testing:-

By watching competitor polka ice creams, Wall`s task was to bring a new products into
alternative product concept, find out how attractive each concept to the customers, and
chose the best one. It might create the following product concepts for cone ice cream.

CONCEPT 1:-A moderately priced cone ice cream in crunch biscuits nothing more.
CONCEPT 2:-An inexpensive sub cone mini Cornetto with only biscuits with ice creams
with jellies.
CONCEPT 3:-A highly expensive cone ice cream in biscuit, chocolates, peanuts , pasta
and other ingredients etc.
CONCEPT 4:-A simple cone ice-cream for those who love peanuts in ice-cream with
biscuit.

Concept testing:

Concept testing calls for testing new product concept with group of target consumers.
The concept may be presented to consumers symbolically and physically.

After being exposed to the concept, consumers then may be asked to react to it by
answering question like:
Do you understand the concept of ice cream in biscuits?

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What are the major benefits of the chocolates, peanuts, pistas and jellies in a
single ice- cream compared with other ice creams?
What else ingredients in the ice cream you suggest?
What would be the reasonable price to charge for the ice cream?
Would you buy such ice cream (definitely, probably, probably not, definitely
not)?

The answer to such question will help the company decide which concept has the
strongest appeal

Product development:-

If the product concept passes the business test stage then it leads to product development. Now
research and development or engineering department of Wall`s develops the product concept into
a physical product but it requires a heavy investment.

The R&D department will manufacture and test one or more tastes of the Cornetto. Cornetto
undergoes rigorous tests to make sure that they give a better taste than competitors, that is in
some big stores where people come most of the time, wall`s start selling their Cornetto ice cream
on a minor level whether people are likely towards this or not .In the early period Wall`s
encourages consumes to taste their cone based ice cream free of cost.

Commercialization:
Now after test marketing its a stage of launching the Cornetto in the market. Usually this
process incurs the high cost.

Build or rent a manufacturing land (where this all production process take place )
Advertising (people become aware about new ice cream )
Promotions
Other marketing efforts

When launching Cornetto in Market, Company first decided on introduction timing, if

Cornetto will eat into the sales of the other Wall`s ice creams like paddle pop, twister etc.
Cornetto did well in Pakistan when it was launched.

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Next, the company must decide where to launch this ice cream in a single location, a
region, the national market, or the international market. Cornetto was first launched in the
bigger cities of Pakistan.

Wall`s ice-cream growth was outstanding over the period, which they achieved through exciting
stream of innovations, aggressive market penetration, 360o communication (TV commercials,
outdoor, print and visibility activation) and constant attention to consumer affordability.

Product position
Product position is the way the product is defined by consumer on important attributes, the place
the product occupies in consumer minds relative to competing product. Walls Cornetto position
is very strong in the mind of consumer because of its quality and uniqueness. Cornetto targeted
young adults and was positioned as the product for romantic and special moments with a tag line
of Love in every bite. Cornetto positioned them through aggressive penetration and captured
market due to their unique recipe, huge advertisement and proper supply chain.

SWOT ANALYSIS

Swot analysis enables the marketer or the business manager to exactly locate1.What strengths or
strong points his product has and on which he can capitalize and earn more market share.2.What
weakness or weak points are they in his product or in the external environment, which he could
avoid and on which he should work on and try to improve.3.Which kinds of opportunities are
there available for him, so that he could cash on those opportunities?4.And most importantly the
threats that are faced by the company or the product in the external environment in shape of the
competitors and other factors. The fact that there are number of competitors in the market of ice
cream and there is going to be a lot of competition between the different products, analyzing the
external environment becomes even more important. Following this scenario where there is
competition right from direct competition to generic competition, Swot analysis becomes a key
to success. A complete analysis of the external environment is as follows

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STRENGTHS:
The Cornetto ice-creams brand is a unique brand with no direct competitor due to its
special taste and make .As its a different brand so it earns huge profit margins for Wall`s
which are about 18% of all the revenues generated by Wall`s in Pakistan. It is available in
all big cities and known areas from Karachi to Mansehra and is in the reach of
middleclass &above middleclass, the efficient and planned delivery network makes it
availability possible at more than 40,000 outlets. It is available in 9 different flavors
which are according to the taste of local people. Availability of Cornetto in numerous
sizes increases its demand by including even those people who do not want to spend on a
standard sized Cornetto. It is reasonably priced. They have launched different products to
cater to more people by introducing moderate tastes such as Choco disc and strong
Flavors like Strawberry and Super Cornetto. There are many premium varieties. The
production is under hygiene environment with world class standards like ISO 2009.
Financially strong
High quality
Good Image in the minds of consumers
Wide distribution due to wide distribution channel
Aggressive promotional schemes

WEAKNESS:
Ice cream is a perishable item and the electricity failure has really created problems for
the company, actually they incurred huge losses due to this as lots of theirs stock losses
its quality and melts. There clear top freezers cannot retain required temperature for more
than 90 minutes.
Pure milk is not used in ice creams
There is no variation in tastes

OPPORTUNITIES:

They can come up with new flavors which would be able to attract the youth .They
should not restrict themselves to departmental stores, in fact come with new luxury
brands which can be available in hotels and they should come up with their own ice-

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cream parlors like spin bar. They can cash their name and expand market share by
increasing product lines.
Gap in Mkt. for diet ice cream, which Wall's can cover because they are more, establish
than other's.
Walls proves itself to be quality oriented product and maintain good taste and standard,
than it would be able to create a strong position in all (Pakistan) for a long period of time.

THREATS:
The biggest threats for Cornetto ice-cream are competitors, Gourmet and Omore. The
threat from gourmet is the low price challenge and Omore can be an equivalent
competitor as it is positioning itself effectively. As Cornetto is a high Profit generating
brand, competitors would surely try to enter into this segment and compete. Nestle is
already present in Pakistan working in other products, but as they are second in rank of
holding ice cream share they might intervene into this market also, which can be a huge
threat .
Hico and Omore are also new comer but rapid increase in there market is a big
threat for walls.

Marketing Department (sales force)

WALLs divide the Lahore Market in two major Zones and each zone is further divide into four
different areas. Each area has one zone (sale) officer and each sale officer has 10-15 different
sectors to serve (supply) the market, which means under research zonal manager has 10-15 sales
men and each sales man has one van.

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Hierarchy of Marketing Department (sales force)

National/C
National/Country
ountry
marketing
marketing (sales)
(sales)
manager manager

Zonal
sales Zonal sales manager
manager

Area/terri Area/territory sales

tory
sales manager
manager

Sales Sales officer

officer

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INTERVIEW QUESTIONS
Tell us generally about Cornetto.

The sales for Cornetto started in Pakistan on 15 Nov 1994 it was initiated in main cities along
with other products and presently it is available at 40000 outlets all over the country from
Karachi to Mansehra. Presently Cornetto is available in 9 different flavors and overall 68
products are present in market by walls. It is segmented for people aging between 15-30 college
going students or young couples. It is among the high profit generating products of walls.

What is your current revenue in Lahore?

We cannot disclose our exact figures but walls contributes to 10% of unilevers sales in Pakistan
and Cornetto is 18% of the total revenue generated from walls.

What is your hierarchal structure of sales department?

Chairman

Sales director

Regional sales manager

Territory manager

Area manager

Supervisor

Sales man and order booker

How are you affected by Omore and gourmet icecream.

Obviously when a new competitor enters the market, some market share is lost but Omore
basically extended the market through their advertisement campaigns. We are not mainly
affected by Gourmet as they cater to a specific segment where as we are available on 40000
outlets but yes without doubt their incredibly low prices did affect us somehow.

How you carry out your distribution process?

Our product supply to consumer is through two ways one by people on cycles and other is
through retailers shops. Both are not part of the company, we have our distributers who carry out
this supply process.

What incentives do you offer to retailers to retain them?

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This is not our policy to directly entertain retailers, this is the work managed by our distributors
who receive a specific percentage to carry out all this procedure. But we do make sure that
product availability is efficiently done.

Which Recent promotional activities are being carried out by Walls?

Right now advertisement on television is in process and with the change in weather the
frequency is also reduced. The last campaign of Jal song is still on TVs. apart from that nothing
special is going on.

Are you intending to introduce new flavors for cornetto?

We keep on introducing new products, but this is confidential so I cannot reveal it to you .

Is there any specific plan to introduce/change your flavors?

N/A

How do you calculate or evaluate customer perspective regarding your product?

There are different ways to know the customer perspective regarding our products like Market
surveys, Telephonic reviews, Blind testing in panels, focus study groups. We have a proper
department who look after this thing.

Which flavor was hit among all?

Well obviously vanilla forever, almost 65% of the ice cream sales around the globe are vanilla
and it is a neutral flavor liked by majority. Initially vanilla forever was named as Classic, then it
was changed to Choco disc, then Classico and finally what is known today as Vanilla forever.

How do u maintain quality standards.

We have quality checks at every stage from the purchase of raw material till the final product is
made. Even before purchasing we make sure whether the supplier meets our standards or not.

Is there any natural ingredients or are they all produced by artificial flavors?

The main ingredient in an ice cream is milk, apart from that artificial flavors are also there like
scent and nuts and crunch used are obviously natural ingredients.

During winter when demand is low how do u maintain your profits?

In winter we have our statistics that demand decreases by 40% so we cannot do anything
regarding convincing people to eat ice cream in winter, but last winter we had a campaign saying
Thand hai to kia hua. Obviously we plan to make our sales as much as possible.

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What are your current strategies?

N/A

Which mode of advertisement is most preferred and why?

This product is impulsive in nature, so our main focus is to convince the buyer at the point of
sale. When someone opens the freezer our most profitable brands must be placed in such a way
that they must attract the customer most and when consumer enters the shop, our freezer must be
placed at such a place that it must be the first priority of the customer. We use television Ads
when we introduce something new apart from that reminders are given to the consumer to retain
them. Apart from these, we use magazines and pamphlets, standing boards on the shops.

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Survey questionnaire:
1. What is age bracket do you belong to?
a) 13-16 age
b) 17-30 age
c) 31-39 age
d) 39 age and above

2. What income bracket do you belong too?

a) 5000-20000 Rs
b) 20000-50000 Rs
c) 50000-100000 Rs
d) 100000 Rs and above

3. What is your marital status?

a) Single
b) Married

4. What is the brand of the ice-cream that you usually purchase?

a) Wall`s
b) O`more
c) Hico
d) Yummy

5. How do you prefer to have your ice-cream in?

a) Cup
b) Cone
c) Stick

6. Is Cornetto your favorite ice cream?

a) Yes
b) No

7. How often do you purchase Cornetto?

a) Everyday
b) Once a week
c) Once a month
8. Please rank accordingly to the characteristics of Cornetto :

1 being least preferred, 5 being most preferred

1 2 3 4 5

a) Taste:
b) Price

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c) Flavor choices
d) Packaging

9. Do you like the ads of Cornetto?

a) Yes
b) No

10. What flavors of Cornetto do you like the most?

a) Love disc
b) Classic
c) Strawberry
d) Love chocolate

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1. What is age bracket do you belong to

13-16 age
10%
25% 17-30 age
20% 31-39 age
39 age and
above

45%

Income bracket
5000-20000 Rs
20000-50000 Rs
50000-100000 Rs
100000 Rs and above

9%
27%
29%

35%

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What is the brand of the ice-cream that you usually purchase?

5. How do you prefer to have your ice-cream in?
Walls O`more Hico Yummy
Cup Cone Stick

7%

13%
26%

51%
59%
15%
29%

Is Cornetto your favorite ice cream?

70
60
50
40
30
20
10
0
Yes No

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80

70

60

50 1
2
40 3
4
30 5

20 5

4
10
3
0
2
Taste
Price 1
Flavor Choices
Packaging

How often do you purchase Cornetto?

Everyday
Once a week
Once a month

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Do you like the ads of cornetto?

Average

No

Yes

0
10
20
30
40
50
60

1. What flavors of cornetto do you like the most?

Love chocolate

Strawberry

Classic

Love disc

0 5 10 15 20 25 30 35 40

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REFERENCES
1. www.wallspakistan.com

2. www.unilever.com

3. www.yummy.com.pk

4. www.unilver.co.uk

5. www.walls.co.uk

6. www.yahoo.com

7. www.google.com

8. www.wikipedia.org

www.Wall`s.com.my

http://www.unilever.pk/brands/foodbrands/Wall`s.aspx

http://www.Wall`spakistan.com/

http://en.wikipedia.org/wiki/Cornetto_(ice_cream)

http://mariansportfolio.wordpress.com/g-my-perceptual-map/

www.wall.uk

Book; Principles of marketing

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