Walls PROJECT

Acknowledgment

Firstly, we are thankful to Allah Almighty, for giving us courage at each and every step of
our lives, and especially in making this report.

We would also like to thank the course instructor, Sir Hanif Shahzad for clarifying our
marketing concepts and guiding us in each and every phase in the completion of this
project.

I would also like to thank the authority of National University Of Modern Languages
(NUML) for providing me with a good environment and facilities to complete this project.

We are also grateful to our parents and some special friends who are the source of our
strength and without whom we could have never achieved anything in our lives

Executive Summary

In the branded ice cream WALLs is at the top a huge market share of 85%. The remaining
companies are far behind in this race with single digit sector.
Walls has a share of 22% of the intervention ice cream market and in Pakistan It is 40% of
total market.
Walls its launch in Lahore and Karachi in 1995 and then in 1986 in Islamabad walls entered
the market with solid expertise in manufacturing hundred ice cream.
Polkas strong brand equity in tubs and other take home packs, made it ripe for the picking,
leading to the competition of the legal merger between polka and lowers in 1996.

With the highest spending on promotion in the industry walls accepted the challenge of
creating the ice cream culture and in this regard walls be claiming considerable success.
TABLE OF CONTENTS

S.No.
Description
Pages
1
Introduction and History
5
2
Reason for Introducing
6
3
Company Orientation Towards Market Place
7
4
Marketing Environment
8
5
Companys Planning, Mission and Objectives
10
6
Marketing Research
11
7
Customer Driven Marketing Strategy
12
8
Marketing Segmentation
13
9
Product Development Process
14
10
Branding Strategies
15
11
Packing Strategies
16
12
Distribution and Marketing Channels
17
13
Marketing MIX
18
14
Conclusion and Recommendation
20
15
References
21

Introduction & History

Unilever is the worlds largest manufacture of ice cream; in fact Unilever holds almost 18%
of the global market share. Unilever is moving towards making ice creams even healthier
treats, by reducing fat content, introducing lower calorie ice creams and beefing up other
treats with calcium and other nutrients. Wall's is the brand name of Unilever's Heart
brand ice cream business it is the name of the company that for many years, as an
independent and then as a Unilever subsidiary, made and marketed the Wall's brand of ice
cream.
Unilever Pakistan Limited is a Pakistan-based company. The Company manufactures and
markets home and personal care products, beverages, ice cream and spreads .the Unilever
Pakistan Limited (UPL) was established in Pakistan in 1958. Unilever Pakistan is the largest
FMCG Company in Pakistan, as well as one of the largest multinationals operating in the
country.

The Walls factory in Pakistan is located on Multan Road in Lahore. The factory was
constructed in 1994, and its production started in the year 1995.It 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. In the first year of there operations the total production of
ice cream was 4 million liters.
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.

Mention ice cream and most people in Pakistan think Walls, Pakistans leading ice cream
brand. Throughout the years Walls brand has brought to Pakistanis a number of much loved
classics from the seduction of magnum, sharing of Cornetto with your loved

ones to the refreshing taste of paddle pop. The Walls brand stands for a good time. From
affordable treats to premium indulgence, to hanging out with friends and sharing precious
family moments; Walls adds to the simple pleasures in daily life.

REASON FOR INTRODUCING PADDLE POP MAGILIKA:

According to the marketing department at Walls, ice cream lovers are categorized into four
basic categories, and the categories are made according to the different age groups and
choices of people falling in that category. These categories include, firstly the kids of age
group 4-7 who love eating ice cream in cups, then comes the age of 7-10 kids in this category
are more inclined towards eating ice lollies, then comes the category where the children are
aged between 10-15, this is the category where kids are converting from ice lollies to light
chocolate coated and milk ice creams on sticks. Finally then there are those who prefer
stronger flavors of ice creams like bitter and dark chocolate, white chocolate, and have a
preference for ice creams such as Cornetto, magnum, and death by chocolate.
Catered especially for the kids aged between10 to 15 Paddle Pop is a major hit. The Paddle
Pops Lion is the friendly face of fun and adventure and this ice cream rates among the
fastest selling and most popular ice-cream among the children.
Walls re launched its Paddle Pop brand with a new name Magilika in January 2007 under
this brand there were three different Paddle Pop categories of ice creams which were
launched, namely they were;
Magic Star
Rainbow Spell
Choc Lava
We have conducted a research on Choc lava. Choc lava was made is such a way that the
lower half is made up of light chocolate while the upper half was made up of with the
coating of milky hard chocolate with an inner filling of light chocolate which has viscous
condensed milk.

COMPANY ORIENTATION TOWARDS THE MARKET PLACE:

According to the marketing team at Walls for choc lava they used the production concept to
conduct their marketing activities. The concept states that those products that are widely
available and inexpensive are preferred. The company mass produced the ice cream at low
costs.

The managers of production oriented business concentrate on achieving high production

efficiency, low cost and mass distribution. But from our analysis the company should have
made use of the product concept as it focuses on those products that offer the most quality
or innovative features. This is because of the fact that choc lava did have innovative feature
in it. The liquid condensed milk in the ice cream bar was a concept that was totally unique
and not known before. The product would have been more successful if it was priced and
advertised and sold properly.

MARKETING ENVIRONMENT:

Successful companies recognize and respond profitably to unmet needs and trends.
Companies could make a fortune if they are able to deal with the environment efficiently.

Demographics
The demographic environment is of major interest to marketers because it involves people,
and people make up the markets. The firms have to closely analyze customers age, gender,
occupation, income and other statistics in order to set the perfect target market for their
product. As far as demographics of choc lava are concerned it especially caters to children,
both male and female following between the age group of 10-15 years. As it is catering
specifically to children so it is low priced, this shows that it is for kids belonging to all
income brackets.

Economic Environment
Markets require purchasing power as well as people. The available purchasing power in an
economy depends on current income, prices, savings, and debt and credit availability.
Marketers must pay careful attention to tends affecting the purchasing power because they
have a strong impact on business. As in this case the scenario is different because the
product is not price sensitive and caters to all income classes.

Socio cultural Environment

The cultural environment is made up of institutions and other forces that affect our society
basic values perceptions, preferences and behaviors. People grow up in a

particular society that shapes their basic beliefs and values. Mostly children belonging to all
societies and culture have same behaviors. Little kids love eating ice creams and usually
chocolate are their favorite flavor. So the culture in which Walls operates is not very
complexed rather it is quite favorable.

Political & legal Environment

Marketing decisions are strongly affected by development in the political and legal
environment. This environment is composed of laws, government agencies and pressure
groups that influences and limit various organizations and individuals. There are certain
legislations and government agency enforcement which compile firms to show socially
responsible behavior. Walls also does not face any threats from these conditions as it
follows and fulfils all food laws and legal requirement imposed by the state authorities.

Technological Environment
One of the most dramatic forces shaping peoples life is technology. It is force that creates
new product and new market opportunities. Like all other businesses technology also affects
the operations of Walls directly. As Wallss owns and operates a highly automated
production plant and as most of its machinery and equipments is imported the company has
to be on its toes when it comes to adapting to new and advance technological changes. The
machine used for filling condensed milk in the upper layer of choc lava was also very
technologically advance and unique as previously no other company had used such a
technique before.

STRATEGIC COMPANY PLANNING, MISSION & MARKETING OBJECTIVES:

Strategic planning is a plan used to guide the decisions and actions of everyone in the
organizations. For any product to sustain itself in the market it is very important that the
company owing the product does extensive and detail strategic planning before the launch
of the product in order to get hold of the competitive advantage. The marketing executives
search continuously to find such an opportunities. Competitive advantage is a unique
strength relative to its competitors.

It is mostly based on quality, time, cost or innovation. Having identified this competitive
advantage the company must allocate its resources to exploit it. Choc lava no doubt was a
completely innovative product consisting of three flavors in one ice cream, light chocolate,
milky chocolate and condensed milk. It was a unique product which no company had
offered before but the ice cream failed terribly due to its bad launching timings. The timings
of the product and marketing actions directly influence the magnitude and duration of a
firms competitive advantage.
Choc lava failed firstly because it was launched in the start of January 2007. Choc lava was
launched in winter which is not an appropriate time to launch such a product because
obviously parents wont allow their kids to buy ice creams in winters. Secondly, its sales
dropped considerably in the summer season due to the problem of extreme weather
conditions.

The mission of Walls was to re launch Paddle pop by a new series of ice cream named
Magilika, as depicted by the name Magilika has something to do with magic and the main
theme behind this re launch was to attract children by magical fantasy.

The color of the ice cream is brown (chocolate) which represents mountain and inner filling
of condense milk which represents lava hence the name Choc Lava Power.
MARKETING RESEARCH:
Marketing research is the process of defining marketing problem and opportunity,
systematically collecting and analyzing information and recommending actions to improve
the organizations marketing activities. An effective marketing research involves six steps
which are defining the problem and research objectives, development of the research plan
collection of the information, analysis of the information, presentation of the findings and
decision making.
Marketing research attempts to identify and define both marketing problems and
opportunities and to generate and evaluate marketing actions. Hence it is a means of
reducing risk and uncertainty.
Walls is one of those companies which do not launch any of its products with out
extensively carrying out marketing research. Same was the case with Choc lava but the only
problem was that the research done for the particular product did not work because of the
following reasons;

a) When they conducted the childrens tasting test they give fully frozen ice creams to kids
who liked the ice cream immediately as the frozen ice cream depicted no problem in the
product.
b) Secondly when they offered the ice cream to the kids they readily accepted it as no kid
ever refuses an ice cream no matter what the taste it.
c) When the ice cream was in fully frozen the condensed milk was in its proper place inside
the ice cream. However due to improper freeze temperature management by the retail
outlets the condense milk leaked out of the wrapper giving an untidy and unpleasant look.
As condensed milk is very sweet and it was dripping it touch the throat and as a result gave
an overly sweet taste which disliked by the childrens.

These problems occurred in the later stages which were not depicted by simple children ice
cream tasting tests.

CUSTOMER DRIVEN MARKETING STRATEGY

TARGET MARKET
A target market is group of people or organization whose needs the marketers products are
specifically designed to satisfy. Target marketing narrows the organizations focus to an
appropriate set of potential consumers whose needs can be profitably met. So the target
market for Choc lava is kids belonging to the age group of 10-15 years.

Market segmentation on the other hand identifies the separate group of people or
organization within the broad target market, each with similar needs, characteristics or
behaviors.

Market segmentation for walls is categorized into four basic categories. These categories
include, firstly the kids of age group 4-7 who love eating ice cream in cups, then comes the
age of 7-10 kids in this category are more inclined towards eating ice lollies, then comes the
category where the children are aged between 10-15, this is the category where kids are
converting from ice lollies to light chocolate coated and milk ice creams on sticks. Finally
then there are those who prefer stronger flavors of ice creams like bitter and dark chocolate,
white chocolate.

MARKET SEGMENTATION STRATEGIES USED:

Walls segments its market on the basis of demographics. The market is divided into groups
on the basis of variables such as age and income. While Walls segments Paddle Pop
Magilika on the basis of age only.

SEGMENTATION OF MAGILIKA

Geographic:

Countries Pakistan
Cities All cities in Pakistan
Density Urban
Climate Hot & Dry

Demographic:

Age 15-50+
Gender Male & Female
Family Size 1-2, 3-5, 5+
Income Rs.20,000+
Occupation From Middle Class To Upper Class
Education School, Colleges, Universities
Religion Major Religion Of Islam, Hinduism, Christianity, and Others

Psychographic:

Social Class Middle Class, Upper Class

Lifestyle Actualizes

Behavioral:

Occasions Parties, Birthdays, Sports & Regular Occasions

Benefits Quality, Taste, Economy, Health
User Status First time user

PRODUCT DEVELOPMENT PROCESS:

The product development process is the sequence of activities a marketer uses to transform
product ideas into marketable goods and services. In the course of developing new product,
marketers scans the environment and generate ideas, screen them, develop and test product
concept, analyze the business concept, design and develop the product, test it in the market,
and then commercialize the product as illustrated in the figure;
ACTIVITY
PURPOSE
Environmental scan & idea generation
Re launch Paddle pop with a new brand name Magilika which included three products,
Magic Star, Rainbow Spell & Choc Lava
Screening out inappropriate ideas
Various lollies & other Paddle pop products were eliminated.
Concept development & testing
Using marketing research techniques such as conducting tasting sessions and noting the
expressions, impressions and feedback of children.
Business Analysis
Walls made future projections before the launch of Magilika that its products would sell
like hot cakes as there was no other ice cream brand currently in the market catering to
children specifically.
Product Design & Development
Friendly Lion character with magical powers is used to attract children. The concept of
condensed milk lava inside the ice cream was meant to be a surprise for kids.
Product & Market Testing
This stage was skipped by Walls, which eventually led to product failure.
Commercialization
Choc lava launched in January 2007

PRODUCT POSITIONING:

Positioning is the use of marketing to encourage people in a products target market to form
a particular mental image of the product relative to competing products. Magilika has
been positioned in the minds of children as something which would take them into the
fantasy world and the lion represents strength as children would start to think that eating
Choc Lava would make them strong.
BRANDING STRATEGIES:
The branding strategy for a firm reflects the number and nature of common and distinctive
brand elements applied to the different products sold by the firm. When a firm introduces a
new product, it has three main choices:
1. It can develop new brand elements for the new product.
2. It can apply some of its existing brand elements.
3. It can use a combination of new and existing brand elements.

Walls used the choice of using the combination of new and existing brand elements. Walls
has used the same old brand name of Paddle Pop along with the same character of lion but a
magical theme was used in order to attract the children.
An existing brand that gives birth to a brand extension is referred to as a parent brand. Here
Walls is the parent brand whereas Paddle Pop Magilika is the line extension that is the
parent brand is used to brand a new product that targets a new market segment within a
product category currently served by the parent brand such as when Walls offer new flavors
an added ingredients in it.

PACKAGING STRATEGY:
Packaging and labeling help marketers communicate with customers and provide
protection, storage and convenience as product moves through the value chain. As a result,
packaging and labeling adds value that help marketers differentiates their product and built
brand equity.

The packaging of Choc Lava ice cream indicates various ingredients used in the ice cream,
nutritional information and the price. It also has certain symbols toward the back side like
halal, keep your country clean, bar code and questions and comment on lever rabta.

Apart from all this the attractive features of Choc lava packaging is the cartoon character
visible very clearly on the packaging. It is one of the factors that attract children toward the
ice cream as whenever a child visit the super market and open the ice cream freezer the
special packaging immediately attracts his attention and he quickly reaches and grabs the
ice cream.

PRICING STRATEGY:

The strategy used for pricing of Choc Lava is value pricing in which prices are held steady
while improving products benefit. The price of Choc lava at its launch in January 2007 was
Rs 12.

This low price is especially kept to attract children who normally have this amount of money
in their pockets either they buy chocolate or ice cream. The new product attribute added in
this ice cream is the condensed milk.

DISTRIBUTION & MARKETING CHANNELS:

Distribution channel consists of individuals and firms involved in the process of making a
product or service available for use or consumptions by consumers.

High transport vehicles are used for transport of ice cream from the factory to the
companys detecting freezers UTECTIC freezers (cold storage) from where the ice creams
are transported throughout the country as well as abroad. The shopkeepers are given same
margin in each outlet throughout the country.

ADVERTISING & SALE PROMOTION STRATEGY:

ATL and BTL marketing activities

TV commercial
Magazines

KEY WEAK POINTS:

Improper launch timings

Excessively hot weather condition
No proper advertisement of Choc lava as a separate product
Fault with a product itself

MARKETING MIX

Product
The main problem was in the product itself, the chemical formulation of the condensed milk
is such that it cannot with stand even a little high temperature and it leaks out of the ice
cream even before having the first bite. And it becomes very massy for children to eat it.
Also it complaints about the product being too sweet for the children to eat it. We are also
planning to change it.
We as marketing managers have changed the ingredients of the ice cream. We have changed
the light chocolate portion of the ice cream with vanilla and replaced the condensed milk
with the semi liquid chocolate which would not prove to be as massy as the condensed milk.
Furthermore as the composition of ice cream has changed, it is also necessary to change the
name of the ice cream, so we have changed the name of ice cream from Choc Lava to Vani
Choc.

LOGO & SLOGAN

Price
We have decided to change the price from Rs.12 to Rs.10. the main reason behind this
change is the added convenience for children to purchase ice cream for ten rupees, rather
than twelve rupees as it is rather difficult to get three rupee change back. The pricing
strategy used is the even number value perception.

Promotion
Presently Walls is advertising Paddle Pop as Magilika, rather than concentrating on the
three products. The consumers are confused as they do not know the individual
characteristics of the products under Paddle pop Magilika, as only the name Magilika
was highlighted in all the promotional mediums. The print ad is attached in the appendix.
We have planned to re launch Choc Lava as VANI CHOC .This new ice cream will be
launched under the existing brand name Paddle Pop Magilika but the ad campaign would be
designed in such a way that each product of Magilika brand would be promoted separately.
This means that instead of confusing the children by simultaneously portraying the three ice
creams together in one advertisement a single ice cream would be advertised at one time.
As it is totally a kids based product so we would be conducting ice creams festivals in
different schools, painting competitions would be held.

Distribution
We would be using the same distribution channel that Walls is already is using.

CONCLUSION

To put the pre-going discussion into nut-shell. It can safely be ventured to opine that
WALLs company has s much potential at that time but if WALLs use the always differential
strategy in proper manner we easily conclude that WALLs will be able to lead the
companies in the Pakistan and abroad.

RECOMMENDATION
Transform the formula of milk because it gives a taste of milk and too much fruits flavour
etc etc.. at Lower the price.

And reduce the packaging costs Conduct more advertising and change the style of add

Campaigns. Latest flavours should be introduced so that a poor man too can afford it.
REFERENCES

www.google.com

http://www.docstoc.com

http://www.scribd.com