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Marketing Analysis of YUMMY Ice Cream
Marketing Analysis of YUMMY Ice Cream
YUMMY ICE-CREAM
27th April, 2015
Instructor
Mr Nabil Nisar
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Contents
1.0 Executive summary ................................................................................................................ 1
2.0 Introduction ............................................................................................................................. 3
3.0 Marketing Mix .......................................................................................................................... 3
3.1 Product: ................................................................................................................................ 3
3.2 Price: ..................................................................................................................................... 3
3.3 Placement: .......................................................................................................................... 3
3.4 Promotion:............................................................................................................................ 4
4.0 Pestle analysis.......................................................................................................................... 4
4.1 Political: ................................................................................................................................ 4
4.2 Economical:......................................................................................................................... 4
4.3 Socio cultural factor ........................................................................................................... 4
4.4 Technological factors ........................................................................................................ 5
4.5 Environmental factors ........................................................................................................ 5
4.6 Legal factors: ....................................................................................................................... 5
5.0 Porters five forces model ...................................................................................................... 6
5.1 Threats of new entrance:................................................................................................... 6
5.2 Threats of substitute goods: ............................................................................................... 6
5.3 Bargaining power of suppliers:.......................................................................................... 6
5.4 Bargaining power of customers:....................................................................................... 6
5.5 Rivalry of competitors:........................................................................................................ 7
6.0 Hofstede Model of Cultural Dimension ............................................................................... 7
6.1 Power distance ................................................................................................................... 7
6.2 Individualism ........................................................................................................................ 7
6.3 Masculinity ........................................................................................................................... 7
6.4 Uncertainty avoidance...................................................................................................... 8
6.5 Long term orientation......................................................................................................... 8
7.0 SWOT Analysis.......................................................................................................................... 9
8.0 Conclusion & recommendations ....................................................................................... 10
References .................................................................................................................................. 11
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2.0 Introduction
In 1981, yummy ice cream was found by an army officer Mr Hamid Nawaz and then it
was acquired by Mr Ijaz Ahmed in 1986. This company is registered under Companies
ordinance 1948 and its registered office is located at industrial area Kot lakhpat Lahore.
Company mission is to serve consumers with pure and quality ice cream regardless of
any age distribution. Yummy has strong chain of competitors like walls, Omore, igloo and
hico. Yummy was the first company who introduced door to door service of providing ice
cream through tri cycles and also concept of ice cream parlor in Pakistan. Yummy ice
cream has their own ice cream parlors in various cities of Pakistan and company's
average sale is around 3 Million per day in summer. Currently this company is working is
Punjab, Baluchistan and KPK.
3.2 Price:
The price is one of the utmost essential p of marketing mix. Pricing is significant because
it is a remuneration to the company and must be in hand to complete the other ps of
marketing mix. The prices which Yummy set for their products are relatively higher than
Walls and Omore because of its high cost of natural ingredients. In case if there are many
substitutes of a product, people prefer to buy the low price products. In this environment
where Yummy has the competitors like Walls and Omore, so it must reduce its prices at
the level of its competitors.
3.3 Placement:
Yummy ice cream was initiator of the door to door service of ice cream through tricycles
to ensure their product availability in different corners of Punjab, KPK and Baluchistan.
Apart from this yummy has their own ice cream parlors in different main cities like Capital
territory (Islamabad), Punjab (Multan, Faislabad, and Lahore) NWFP (peshawer)
Baluchistan (Quetta).
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Issue with placement of yummy is that they have not placed their product in Sindh.
Yummy has no distribution channel like there other competitors(walls) .Yummy just sell
their products through Parlors and Tricycle. So if Yummy wants to capture the market
they must have the proper distribution channel like Walls and Omore. Apart from this they
must target cities of sindh as well like Karachi, hyderabad and sukkur.
3.4 Promotion:
Yummy uses different ways of promotion to capture the market and to increase its sales.
It uses pamphlets, leaf lets, wall posting, bill boards and Pena flex. The best promotional
strategy which yummy is currently using is sponsoring different events and participating
in different childrens and family festival. These strategies increases the brand image of
the company. Unfortunately Yummy dont has any distribution channel to promote its
products via this channel as discussed in placement. Competitors of Yummy are
promoting their products very aggressively in order to catch the attention of the customer.
They are providing a lot of incentives to their retailer, like they are giving special schemes
to their salespersons, they are furnishing their retail shops and they are running special
campaigns in different events.
Yummy ice cream should run TVC commercial because TVC has wide reach of viewers
among all promotion tools.
4.2 Economical:
We have some economic factors which affects negatively to the consumer and ultimately
they are not favorable for the organization. One of them is inflation. In this inflationary era
purchasing power of customers is decreased almost every year and in the same way
government is announcing increment in the prices of material used in production. Due to
less purchasing power of consumers and increasing inflation rate in Pakistan companies
in this industry might lose their customer base.
cream at a well located place and environment. Yummy has taken good advantage of it
by opening up the YUMMYs 36 ice cream parlor. Local community need environmental
friendly products which should not harm to the society as well as to their health. To meet
the customer expectation yummy is providing different 36 flavors of ice creams to provide
more choices to customer because this globalization period has increased the customers
expectations.
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6.2 Individualism
In Pakistan individualism has score of 14. It means we have more collectivism in Pakistan
but due to influence of western culture Pakistani urban society is changing from
collectivism to individualism. In Pakistan this trend has been emerged in urban areas
especially. In rural areas mostly people use to buy products in bulk quantities (family pack
products) because of their joint family structure. Urban people prefer to buy small packed
products. Yummy is successfully operating as per local need they have both single
packaged and family packed ice creams. For single person they have 90-100 ml ice
cream and for family use they have 1.5 liter ice cream.
6.3 Masculinity
Pakistan has 50 score in masculinity. Means as per this score we have equal portion of
feminine and masculine people, but now feministic characters people are adapting more
in our society. Thats why marketers should use emotional advertising, packaging and
taglines to attract consumers. Yummy ice cream is following these cultural values. This
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thing we can analyze from their logo because they have shown three childrens who are
happy to take that ice cream and they are enjoying it.
Their social activities also gives us view that they are focusing more on delivering
emotional values to customer. We can get its evidences from the Facebook page. They
sponsor different events and participate in fairs. All these factors reflects that they are
trying to attract consumers through emotional values (emotion is feministic character).
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Strength
Natural
ingredients
Forward
integration
(ice cream
parlors and
tricycle)
R&D
deparment
Use
ingredients
which
strenthen
teeths and
bones
Weakness
Opportunity
Low
promotion
less
technology
less
production
capcity
low brand
image
low
distribution
channel
technology
New
geogrphical
segment
(Sindh)
Strong
Distribution
channel
Effective
Promotion
Efficient
production
Threat
Less market
share
competitors
weather
condition
electricity
shortage
inflation
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References
Companies Try Keeping Ice Cream Frozen, Emissions Down | Greenpeace . 2015. Companies
Try Keeping Ice Cream Frozen, Emissions Down | Greenpeace . [ONLINE] Available
at:http://www.greenpeace.org/usa/en/news-and-blogs/news/ask-and-ye-shall-receive/companies-trykeeping-ice-crea/. [Accessed 21 April 2015].
Ice Cream Industry in Pakistan. 2015. Ice Cream Industry in Pakistan. [ONLINE] Available
at: http://www.slideshare.net/JunaidInam/ice-cream-industry-in-pakistan. [Accessed 18 April 2015].
Iman Haider, 2015, pers.comm. 15 April to 25 April
Internship report on yummy ice cream factory lahore.docx. 2015. Internship report on yummy
ice cream factory lahore.docx. [ONLINE] Available
at:https://www.scribd.com/doc/243824373/Internship-report-on-yummy-ice-cream-factory-lahore-docx.
[Accessed 21 April 2015].
Ms. Naila, 2015, Pers.comm. 15 April
Nestle Fruit Yougert. 2015. Nestle Fruit Yougert. [ONLINE] Available
at:https://www.scribd.com/doc/36478108/Nestle-Fruit-Yougert. [Accessed 22 April 2015].
Wall's Pakistan Marketing project (Unilever). 2015. Wall's Pakistan Marketing project (Unilever).
[ONLINE] Available at:http://www.slideshare.net/abdulwassay2/walls-pakistan-marketing-project.
[Accessed 21 April 2015].
Yummy ice cream. 2015. Yummy ice cream. [ONLINE] Available
at:http://www.slideshare.net/shahzadasuleman/yummy-ice-cream-14999310. [Accessed 15 April 2015].
Yummy, 2015. . [ONLINE] Available at: https://www.facebook.com/pages/yummyicecream/205548305013?fref=ts. [Accessed 22 April 2015].
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