Marketing Strategies of Walls Ice Cream [PDF]

Citation preview

lOMoARcPSD|8359299



Marketing strategies of Wall's ice cream Principles of Marketing (University of Sargodha)



StuDocu is not sponsored or endorsed by any college or university Downloaded by Ash Lay ([email protected])



lOMoARcPSD|8359299



1



Tagline: ICE Cream MaKes u HaPPY



Downloaded by Ash Lay ([email protected])



lOMoARcPSD|8359299



2



CONTENTS INTRODUCTION: ...…………………………………………………………………….......4 HISTORY: .…………………………………………………………………………………..4 When Was Wall’s Introduced In Pakistan ..……………………………………………….5 VISION AND MISSION STATEMENTS: ..……………………………………………….6 Vision .………………………………………………………………………………………...6 Mission ………………………………………………………………………………………..6 OBECTIVES OF WALL’S: ...………………………………………………………………6 PRODUCT PORTFOLIO: ..………………………………………………………………..6 Flagship Brands of Wall’s …………………………………………………………………..7 Other Ice Cream Products .…………………………………………………………………8 Categories of Ice Cream Products ……………………………………….............................8 MARKET SEGMENTATION OF WALL’S: …………………………………………......9 Geographic Segmentation ………………………………………………………………......9 Demographic Segmentation ………………………………………………………………...9 Psychographic Segmentation ……………………………………………………………...10 Behavioral Segmentation ………………………………………………………………….10 MARKET TARGETING PROCESS: ..…………………………………………………..10 Target Market ……………………………….…………………………………………......11 Market Attractiveness ……………………………………………………………………..11 Market Attractiveness Factors ………………………..…………………………………..11 MARKETING MIX OF WALL’S: .……………………………………………………....12 Product .……………………………………………………………………………………..12 Pricing .……………………………………………………………………………………...12 Placement …………………………………………………………………………………...13 Promotion …………………………………………………………………………………..14



Downloaded by Ash Lay ([email protected])



lOMoARcPSD|8359299



3



SWOT ANALYSIS: ………………………………………………………………………..15 Strengths ……………………………………………………………………………............15 Weaknesses …………………………………………………………………………………16 Opportunities ………………………………………………………………………………16 Threat ………………………………………………………………………………………16 MAJOR COMPETITORS: .………………………………………………………………17 Omoré ………………………………………………………………………………………17 Hico …………………………………………………………………………………………17 Igloo ………………………………………………………………………………………...17 Yummy ……………………………………………………………………………………..18



Downloaded by Ash Lay ([email protected])



lOMoARcPSD|8359299



4



INTRODUCTION 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. Unilever is the world’s largest manufacturer of ice cream which in fact holds almost18% of the global market share. Wall's is an ice cream brand owned by the AngloDutch food and personal care conglomerate Unilever. Originating as an independent food brand in the United Kingdom, Wall’s is now part of the Heart brand global frozen dessert subsidiary of Unilever, used in China, Hong Kong, Europe, Indonesia, India, Japan, Malaysia, Mauritius, Philippines, Qatar, Saudi Arabia, Pakistan, Singapore, Thailand, United Arab Emirates, Vietnam and the United Kingdom. Unilever also uses a merged brand called Kwality Wall’s in South Asia. Wall’s products are sold in more than 40 countries. Wall’s 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. In Pakistan the Heart brand is called Wall’s 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 favourites, hence catering to a variety of diverse tastes. Wall’s is a trusted ice cream and frozen desserts brand in Pakistan. All Wall’s products are halal and are made with halal ingredients in a halal compliant manner. The Wall’s 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 Wall’s to launch exciting new products every year. Wall’s has the market share of 51 percent at present.



HISTORY Wall’s was founded in 1786 by Richard Wall, when he opened a butcher's stall in St James’s Market, London. In the 1900s the business was led by Richard’s grandson Thomas Wall II. Every year the company had to lay off staff in the summer as demand for its sausages, pies and meat fell, so in 1913 Thomas Wall II conceived the idea of making ice cream in the summer to avoid those lay-offs; the First World War meant that his idea was not implemented until 1922. Following his retirement in 1920, Thomas Wall II created his Trust



Downloaded by Ash Lay ([email protected])



lOMoARcPSD|8359299



5



for the “encouragement and assistance of educational work and social service”. Today, the Trust continues to assist in these areas by providing grants to individuals and organisations. Moreover, in 1920, Thomas Wall II sold the firm to Mac Fisheries, which was further acquired in 1922 by Lever Brothers. Maxwell Holt was put in charge and he revived the idea of producing ice cream, with near instant success. Ice cream production commenced in 1922 at a factory in Acton, London. In 1959, Wall's doubled capacity by opening a purpose built ice cream factory in Gloucester, England. The product grew in significance and popularity and thus, was born Wall's ice cream. Over the years, the company's ice creams have become popular almost everywhere in the world. WHEN WAS WALL’S INTRODUCED IN PAKISTAN? Unilever Pakistan limited brought Wall’s ice cream to Pakistan in 1995. The instant success of Wall’s and clear consumer preference for the brand proved the willingness of the Pakistan market to support high quality, hygienic, innovative product. Keeping in view the strategy, Wall’s Launched five new products at the start of the 1997 ice cream season, namely Cornetto Mango, Feast Kulfa, Split Strawberry, Mini milk sammar and Solo Cola. These products not only fuelled volume growth but also helped in maintaining and stimulating consumer interest. Moreover, the drive of volume growth continued through geographical expansion with the addition of new concessionaires and satellite towns. After the launching of Wall’s, it gave tremendous services and Polka (Wall’s competitor in 1995) loosed its market share by a huge extent. At this time Polka tried to sell itself to Wall’s but now Wall’s 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 rumour that Nestle is coming through Polka which obviously Wall’s did not want, so they purchased Polka in 1997. This acquisition made Wall’s an unchallenged market leader and it also emerged as a “Impulse brand” with new level of excellence in take-home or dessert ice cream. 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 recognised logo in the world of ice cream.



Downloaded by Ash Lay ([email protected])



lOMoARcPSD|8359299



6



VISION AND MISSION STATEMENTS VISION: “Our vision is to doubling the size of our business, whilst reducing our environmental footprint and increasing our positive social impact. MISSION: “To meet everyday needs for nutrition, hygiene and personal care with brands that help people look good, feel good and get more out of life.”



OBJECTIVES OF WALL’S 



To defend current Mkt. Share







Sale Growth.







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 user’s 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.



PRODUCT PORTFOLIO Wall’s ice cream comes under the food and beverages part of the Unilever chain. Wall’s ice creams are consumer, non-durable, packaged goods. Wall’s has a variety of products ranging from low priced desserts like Rainbow to premium priced desserts like Cornetto and Magnum. While there are various delectable varieties of ice creams manufactured and marketed by Wall's, following are some of the more global products:



Downloaded by Ash Lay ([email protected])



lOMoARcPSD|8359299



7



FLAGSHIP BRANDS OF WALL’S: CORNETTO: Cornetto was launched in 1959 and is arguably the most popular and widely consumed hand-held ice cream product manufactured by Wall's. It continues to remain a market leader in the UK as well as various other countries of the world. The product is available in a variety of flavours, including Strawberry, Mint Chocolate, Nut, Lemon, Classico, Peanut Butter Love, Honeycomb Crunch, Caramel Crunch, Whippy (Yogurt flavour with a chewy chocolate), Valentine's Day flavours, and Cornetto Soft (soft ice cream that comes in chocolate chip, cookie dough, vanilla, chocolate, and double chocolate). Cornetto Soft is sold on the street by vendors and is made on the spot with an ice cream dispenser, but the other flavours are pre-made and are factory packaged. There is also Cornetto Enigma, which consists of cookies and cream, raspberry and double chocolate flavours. MAGNUM: The ice cream today known as Magnum was first introduced in 1989. The original Magnum (later rebranded as Magnum Classic) consisted of a thick bar of vanilla ice cream on a stick, with a chocolate coating. While the vanilla bar continues to remain the same, the company has experimented with the coating a few times. In 1994, the Magnum ice cream cones were introduced and ice cream sandwich appeared in 2002. The traditional Magnum-on-a-stick, however, continues to be the most popular. Other flavours include, White, Almond, Mint, Honeycomb, Double Caramel, DoublePeanut Butter, Double Raspberry, Caramel and Nuts. FEAST: Feast is a chunky chocolate ice cream bar. Feast ice cream is a hand-held treat with solid dark chocolate on a stick. This chocolate is surrounded with chocolate ice cream and covered in a chocolate shell. The shell also includes pieces of biscuits. Feast is available in both its original chocolate and a mint flavour. There are also bite-sized versions of Feast produced in both flavour. Mini Feast, Feast Sandwich, Snack Bar are also available. VIENNETTA: Viennetta was launched in 1982 and is known as the company's 'premium dessert’. The original Viennetta was a multi-layered product comprising layers of vanilla ice cream with sprayed-on layers of compound chocolate. The layers of ice cream were extruded, one after another, onto trays sitting on a moving belt. The rate of extrusion was greater than the speed of the belt which caused a "bunching" of the ice cream; each layer was extruded at a different speed from the previous layer. The final effect was akin to a series of waves



Downloaded by Ash Lay ([email protected])



lOMoARcPSD|8359299



8



rippling through the product. This rich and creamy preparation comes in a variety of flavours like berry, chocolate, mint and vanilla. Some other ice cream products by Wall’s are listed in table:



PRODUCT NAME



FLAVOURS AVAILABLE



DONUT



Chocolate



Paddle Pop



Caramel Choc Dip, Bionic Bubble-gum, Rainbow, Twirly Pop, Cyclone, Icy Twist, Shaky Shake, Banana, Chocolate



FRUTTI



Orange, Lemon



MOO



Mango, Strawberry



JET SPORT



Orange, Pineapple



TWISTER



Blackcurrant



CALIPPO



Orange,



Strawberry



and



Vanilla,



Strawberry and Lemon SOLERO



Exotic, Red Berries, Strawberry Smoothie



MINIMILK



Vanilla, Chocolate and Strawberry



Walls have divided the ice-cream products into three main categories: 1.



Impulse Item: for kids and teenagers. (cones, cups)



2.



In Home: (litre and half litre packs)



3.



Bulk Pack: (supplied in hotels)



1. IMPULSE ITEM: KIDS: It includes Rocket, Twister, Bigger Three, and Vanilla cup, Rainbow, Berry Dip and Choc Dip which are for kids. TEENAGERS: It includes jet sport, King Kulfa, Mango King Kulfa, Light Vanilla, and Choc Bar, Cornetto, Chocolate Passion, Magnum, and Feast.



Downloaded by Ash Lay ([email protected])



lOMoARcPSD|8359299



9



2. IN HOME: In home ice cream products are especially designed for family and adults which includes liter and half liter packs. It includes Tutti Fruity, Cassatta, Kings Kulfa, Mango, Chocolate chip and many more. 3. BULK PACK: These are for dealers and hotels and Wall’s providing in large quantity in the form of big packs. Wall’s deal with McDonalds, major shopping centers, stores. Usually provided in the form of shakes.



MARKET SEGMENTATION OF WALL’S Today Wall’s 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: Wall’s 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 Gujranwala and then North from Gujranwala 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. Country



Pakistan



Provinces



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



Density



Urban, Suburban



Climate



Southern



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



Downloaded by Ash Lay ([email protected])



lOMoARcPSD|8359299



10



Gender



Male, Female



Income



30000+



Generation



Generation Y



Occupation



Students, couples



PSYCHOGRAPHIC SEGMENTATION: The psychographic segmenting is done on the basis of the social class, lifestyle and personality characteristics. The Wall’s Cornetto is targeting all the social classes’ except of lower lowers and lower uppers. Social Classes



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



BEHAVIORAL SEGMENTATION: The company divides a market based according to the consumer taste, knowledge, attitude, use and response to their products. WALL’S 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. 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 Wall’s 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.



Downloaded by Ash Lay ([email protected])



lOMoARcPSD|8359299



11



Wall’s mainly used undifferentiated (mass) marketing strategy because ice cream will always be mass marketed. They have to do business on large scale so Wall’s Cornetto Company is using mass marketing. 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 wall’s 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  Size  Growth including stage in product life cycle  Differentiation possibilities  Bargaining power of customers  Cyclicality and Seasonality  Distribution Economic and technological  Investment intensity  Industry capacity  Technology  Barriers to entry and exit  Access to supplies Competitive  Competitive structure  Competitive groupings  Substitute products



Downloaded by Ash Lay ([email protected])



lOMoARcPSD|8359299



12



 Price  Individual competitor analysis



MARKETING MIX OF WALL’S 1.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 Wall’s, the product is the ‘ice cream’ by the company. Core Product: Ice cream, as a desert after meal. Actual product: The high quality level, different tastes, flavors, packaging. Augmented product: Provide tastes and hygiene as well as nutritional ingredients. Brand Name: The brand of product is Wall’s Brand Mark: The management of Wall’s uses heart shaped icon in red color with white background. Packaging: Wrappers and sticks, which they are using, are prepared according to hygienic point of view; sticks are imported and cleaned with chemicals to completely destroy the harmful effects on product quality and consumer’s health. Labeling: Descriptive label is used for Wall’s as it contains ingredients, nutritional contents and flavor of ice cream. Design and Color: 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.



2.PRICING: Pricing decision is very important because the survival of a company in the market depends upon Pricing decision. Pricing strategy depends on pricing objectives.



Downloaded by Ash Lay ([email protected])



lOMoARcPSD|8359299



13



Pricing Objectives Pricing objective of Wall's are market growth, sales volume and also making profit. To achieve these objectives Wall's often 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 discounts to their wholesalers and their retailers. Company also provides off-season quantity discount. What is the pricing strategy used, and what is the objective of using this strategy? Wall’s is targeting middle and upper-middle class youth, the price of Wall’s 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. Wall’s set a specific price which was not too low nor too high because people might have thought the quality is not good that’s why the price is low or its very expensive. They had to consider their variable cost, fixed cost and then decide the price. Wall’s wanted to capture the market so they didn’t want 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. 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.



3.PLACEMENT: Wall's introduced first time in history of Pakistan door to door service facilities. That is Spot Point Dealer (SPDs), these are the mobile sellers. That is great achievement of Wall's Ice Cream. Tricycle provides door to door services that is way Wall's is easily available in everywhere city, town, street, market etc. In tricycle the soft music continuously singing a bell witch is the identification of Wall's. Through this Wall's also make sales promotion and people often made impulse buying which increases sales. Walls also wants to get its ice creams available on the shelves of the millions of retailers all over the country and in turn in the hands of the consumers. So it uses distributors who can cater to the size of Walls and its consumer base. These distributors make the ice creams made by Walls available to the final consumers. Here Walls uses “Indirect Marketing Channels”, that is it has intermediaries



Downloaded by Ash Lay ([email protected])



lOMoARcPSD|8359299



14



(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.



4.PROMOTION: Sales Promotion The walls company sign contract with different parties for major events. It also contracts with occasional caterers etc. for providing their ice creams at the events. It also makes contracts with big stores to keep their products. How Wall’s do sales promotion? 



Walls sponsor different events like walls carnival, lifestyle and concerts.







Walls organize its stalls in funfairs held in schools, colleges, university.







Walls make contract with different celebrities for the survey of universities.







Walls has made contracts with worldwide food chains like pizza hut, McDonalds.







It also deals with hotels like Sarena, Marriot, PC bhurban.







It also places it ice cream trolleys in market at Chand raat.



Brand Ambassadors: Brand ambassadors are those celebrities who work in ads of specific brand. Brand Ambassadors of Wall’s are: 



Ali Azmat







Ayyan Malik







Amrita Rao







Jal Band







Dafi (Malaysian singer)







Gita Gutawa



Online Marketing: 



Animations and small ads of walls are placed on various websites and added as pop ups to attract customers.







Also upload their ads on you tube.



Other Promotion Techniques: 



Give special offers during Ramadan like buy two cartons of walls get one free.



Downloaded by Ash Lay ([email protected])



lOMoARcPSD|8359299



15







Supply their ice creams products in famous cafes like gelato affair, hot spot which they used and provide you in form of shakes.



Not only Wall’s is mass marketing through commercials but it also sponsors different television programs. Wall’s has sponsored the sitcom “Canteen Kahani” in a way that it turned out to be a publicity campaign more than a sponsorship. “Canteen Kahani” was on aired on ARY digital. The concept of “Canteen Kahani” was to attract college going youngsters and to focus on the life of a boy who falls in love a girl. This concept of “Canteen Kahani” provided a complete experience to the viewers. Wall’s does not rely on billboards for advertising because they believe that more the consumers get to see their products, the more it will retain its position in the minds of consumers. Wall’s believe that once an individual pass by a billboard, within 30sec (maximum), he forgets what he saw. Also Wall’s management is of the view that billboards are relatively expensive medium of advertisement which is incapable of capturing and retaining consumer’s attention over longer durations. In another attempt to capture the attention of the youth, Wall’s sponsored a Pakistani bands song namely, ‘Jal-the band’, and featured its lead singer Farhan Akhtar. Thus Wall’s has aimed to be in the sight of customers through every possible mean.



SWOT ANALYSIS STRENGTHS: The walls ice-cream brand is a unique brand with no direct competitor due to its special taste and make. As it’s 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 flavours 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 Flavours 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



Downloaded by Ash Lay ([email protected])



lOMoARcPSD|8359299



16







High quality







Good Image in the minds of consumers







Wide distribution due to wide distribution channel







Aggressive promotional scheme’s



WEAKNESSES: 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 flavours 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-cream parlours 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, then it would be able to create a strong position in all (Pakistan) for a long period of time. THREATS: The biggest threats for walls ice-cream are competitors, Gourmet and Omoré. The threat from gourmet is the low price challenge and Omoré 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.



Downloaded by Ash Lay ([email protected])



lOMoARcPSD|8359299



17



MAJOR COMPETITORS OMORÉ: 



Owned by Engro Foods Ltd.







They hired a third party, a logistics company, to setup a cold store point in Lahore and Islamabad.







These points will be used to stock ice-cream from the factory.







They have now divided the country into six districts and cover 130 towns.







90% of their distribution is through the indirect model.







Lahore & Islamabad is handled through direct model.







Distributors invest in cold stores and vehicles.







Omoré market share is 29 percent.



HICO: 



Owned by Pakistan fruit juice Co. Pvt. Ltd, since 1985 (first ice cream company)







Accompanied to be purely 100 percent made up of milk.







Favorited at Punjab side.







Less sales force and low publicity with still a huge loyal customer base.







The ice-cream plant, at the time of acquisition, had an installed capacity of 80 liters which is now 4.5 million liters, with 800 company owned freezers.







Previously the shop was provided with especially made ice boxes.







Most of the ice cream would be sold on trikes.







They placed a few freezers in the retail outlets in Lahore.







They set up a cold store.







They would deliver directly to the retail outlets through their trucks.







HICO market share is 10 percent.



IGLOO: 



Operates from Karachi with wide distribution networks in Sindh and in Baluchistan.







Their positioning factor is quality ice cream with unmatched flavours.







Igloo is providing ice cream to its consumer through three different channels, tricycles, retail outlet and igloo parlours.



Downloaded by Ash Lay ([email protected])



lOMoARcPSD|8359299



18







They focus on distributing the ice-cream in Karachi and Sindh themselves, whereas they have a distributor who handles distribution in Baluchistan. They own seven, 40 feet containers. 12 vehicles are used for delivery from the Hyderabad depot while the remaining 33 vans are used to supply Karachi.







The bulk of their sales are generated from Karachi and they claim that they hold a 40% market share in the city. The production capacity of Igloo Ice Cream is about 2400 liters∕hour.



YUMMY: 



Low market shares holdings.







Set up 1981 in Kot Lakhpat, Lahore as a family owned business. Yummy Ice Cream prepared pure dairy ice cream from milk fat. In 1997, Yummy filed a suit in high court against Walls, they won the case. They tried to launch the product in Karachi in 1999-2000 but withdrew due to logistical issues.







They have a depot in Multan and in Islamabad where their own 40 ft. The goods are then taken to the shop by YUMMY owned, cold chain vans and sales persons. Goods are stocked in YUMMY owned freezers at retail outlets.







The retailer sells at a 17% commission. Its production capacity is 10 million liters per annum. The marketing strategy of YUMMY is to focus on those stores where they give less discounts.







YUMMY’S market shares is only 7%



Downloaded by Ash Lay ([email protected])