Part 1: Four Ps of Marketing

Introduction
Walls was bought by Mac fisheries in 1920 who then sold Walls to Lever Brothers in 1922. In 1922 by the 1950s, wartime rationing produced a big appetite for ice cream sales reached 46 million by 1959 and Walls opened a large ice cream factory in Gloucester. Supermarkets began to stock ice creams in addition to small high street shops. Market research in the 1970s showed that practically everyone loved ice cream. Walls ice cream started production. Walls ice cream introduced in 1995 in Pakistan under unilever brand.

Unilever is one of the biggest brands in Pakistan and 56 other brands are registered under unilever brand. "Meeting the everyday needs of people everywhere". It is the world number 1 in ice-cream, margarine, and tea-based beverages; also in personal wash, prestige fragrances and deodorants. Unilever's packaged foods business is the world's third largest after Nestle and Kraft. Yet at the same time, the group has pruned its portfolio by 75%, disposing of some regional products and rebranding others in order to concentrate on a smaller roster of global power brands. Advertising Age estimated global measured advertising expenditure of $3.5bn in 2004 making Unilever the worlds number 3 advertisers.

Founded 1930 Employees 350,000 Sales $25.3 Billion Profits $982 Million Headquarters London, England and Rotterdam the Netherlands 3d-largest company in Britain Worlds largest margarine producer Worlds largest soap and detergent maker Worlds largest maker of packaged tea Worlds largest ice cream maker Worlds 3rd-largest advertiser Worlds 16th largest industrial company Rank Worlds largest consumer products company

Unilever is one of the world's leading food companies. Our passion for understanding what people want and need from their food - and what they love about it - makes our brands a popular choice. In the late 19th century the businesses that would later become Unilever were among the most philanthropic of their time. They set up projects to improve the lot of their workers and created products with a positive social impact, making hygiene and personal care commonplace and improving nutrition through adding vitamins to foods that were already daily staples.
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The decade starts with the launch of Path to Growth, a five-year strategic plan, and in 2004 further sharpens its focus on the needs of 21st century-consumers with its Vitality mission. Ice cream is made from milk, fat and sugar. These are cooled as they are mixed, then whipped to create a light, airy texture. Flavourings, fruit or chocolate are added then the whole mixture is frozen again before packaging. Walls have been continuously adding new products to its range. As a result Walls has registered a significant increase in its sale volume during the last ten years in Pakis

Mission Statement
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 current statement that LBPL is following is as follow: 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. 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.

SITUATION ANALYSIS
Company analysis
1. General state of the economy
On the back strange economic recovery of last year Pakistans economy is gathering even greater momentum during the current fiscal year (2011 - 2012). The Gross Domestic Product (GDP) in Pakistan expanded 2.4 percent in fiscal year 2010/11, ending in June 2011. agriculture: 21.2% industry: 25.4% services: 53.4% The literacy rate of Pakistan is estimated at 54% of both sexes.

2. Condition of the company in industry

Walls is very stable an established company and it is being operated by Unilever Pakistan. Walls is in the market for almost 10 years in Pakistan and they are considered to be pioneer in frozen desert in Pakistan. They have a large distribution channel which spans almost all of the major cities of the country. They have number of renowned products in their credit. Their key products are Magnum Feast Cornetto They have three main categories in their production line; Impulse item In home Bulk pack They are importing all raw materials from abroad.

3. Favorite Brand of Ice-Cream

Over half the respondents claimed that Walls product was their favorite brand of ice-cream (adults: 56%, children: 59%). (Not unsurprisingly, this correlates with respondents most recent purchases (for respondents stating that their most recent ice-cream purchase was a Walls variety 80% adults and 86% children claimed a Walls product was their favorite. Magnum takes the top spot again with around a fifth of adults and children (19%) claiming it as their Favorite.

Around half of the respondents (adults: 52%, children: 49%) agree that the price of their favorite brand varies across the different outlets they usually buy from, supporting the wide range of prices actually recorded by brand. Walls Twister are priced the lowest of the branded products (Twister: adults 74%, children 69%

4. Ice-Cream Purchase Behavior

Respondents were asked to think about their ice-cream buying in general (rather than most recent occasion/purchasing of favorite brand/variety) and to determine which of three statements best applies to them. Most (around 6 in 10) would prefer to buy their favorite, but will buy another kind if it is not available. The vast majority of the remainder is generally happy to choose from what is available.

SWOT ANALYSIS
Strengths:
Strong brand equity. Quality product Larger dealers network Country wide availability Production under Unilever brand is one of the biggest strength for company Innovative (using latest technology for the manufacturing of the ice cream and all system is computerized)

Weaknesses:
Perception about the company is that it is specially made for high class consumers. This perception is affecting company image although Walls is making ice cream for every class and they have those products which are ranging from 5 to 30 which can be affordable for the poor people. Weather barrier is also the factor which is affecting the production of the ice cream and can be taken as a weakness for the Walls Product price high with respect to the competitor in some flavors

Opportunities:
Range of the products can be increased especially for the kids Kids are the big opportunities for the company Increase in the population Unilever brand is the big opportunity for the Walls as it is well known internationally

Threats:
If any multinational company launch ice-cream product then it will be a big threat for the company but up till now company is not facing any kind of threat.

COMPETITOR ANALYSIS:
In Pakistan the competitor of walls is Omor. Omor was launched in March and formally launched on April 6, 2009. The ice cream was launched in eight cities and towns. The brand had started with 24 different formats and flavors. Lack of cold storage facilities and proximity of factory were reason for slow start. There is a pure competition in this industry. The product is homogeneous and there are large number of buyers and sellers as well. There is easy entry and exit of buyers. To promote the product all the companies are using high price strategy. There are eight companies in frozen desert industry including walls who are competing with each other with respect to price and quality. Strengths: Total Sales of 14,900 million Rs which shows positive response and customer satisfaction. Omore have the only plant in Pakistan that uses bactofuge technology to eliminate bacteria and ensure hygiene. Provide much better ice cream and that too at a lower price than their competitors. Weaknesses: Omore is a new brand in the ice cream market and people in rural Punjab do not have much idea if the brand exists. Most of their advertisements have stirred controversy e.g. their advertisement of the recently launched Nutty Choc bar does not go along with our cultural and religious values. No rigorous publicity of their products as compared to Walls e.g. Walls have huge campaigns when they launch new products.

PEST Analysis
ECONOMICAL
When we talk about ice cream we have three social classes who are the potential customers Higher Class Middle Class Lower Class The companies like galaxy mars and move pick are classified as higher end and middle end products and they are costly as compared to walls. The companies like Yummy, Igloo, and Rocco are middle end brands they are low prices products they are for price conscious people who belong to middle class and lower class of the society.

When we talk about Walls Company it is targeting the three major classes of the Pakistan society. Price ranging from 5 to 150 which is affordable for every class of Pakistan. According to present situation demographic factor are not affecting the company a lot but it play a sufficient role.

Social Environment:
Most of the population of the Pakistan belongs to middle class who are potential customers of our product. So the scope of the company is high. On cultural festival walls offering special offers on ice cream. Lucky draw, coupon scheme included in such offers by the walls. They also have a big part in cultural promo which reflects the culture of Pakistan.

Technological Environment:
There is a great boom of manufacturing varieties of ice cream and great demand from the people for new flavors. New shapes in ice cream style or stylish ice cream are attracting big population of Pakistan for the new style and shape walls are using computerized system for manufacturing hygienic products. High machinery is placed in main manufacturing units of walls. This technology is growing day by day which is affecting the manufacturing of ice cream and publicity of company. Walls are affordable and easy to eat with great taste.

Political and Legal Environment: The political condition of Pakistan is highly uncertain and unstable but from few years we have seen some consistency in government policies which encourage the foreign investors to invest in Pakistan. Walls have strong status because ice cream is manufacturing under unilever brand. Unilever is one of the biggest multinational company in Pakistan in paying high amount of taxes and contributing in Pakistan economy. So there is no political pressure on Walls Company from the government of Pakistan.

Segmentation:
WALLS divided its items in to category of individual and family consumption. And the individual consumption is that of impulse products and usually fort an ice cream for family consumption one decides what flavor to buy, what quantity to buy and for how much to buy. On these bases WALLS has divided the market of impulse items on the bases of income classes and demographics. SEGMENTATION ON THE BASIS OF INCOME CLASSES: 1. UPPER CLASS It includes the elite or higher income class who can afford even the most expensive items without much botheration. They consume ice-cream more on the basis of taste and preference rather than money. 2. UPPER-MIDDLE CLASS This class includes people with moderate kind of income. You can neither put them in free hand category nor very less purchasing power category. These people normally take the taste and affordability both into consideration. 3. LOWER-MIDDLE CLASS These are the people with very little income to spend. These people usually prefer the low price and economy than taste and preferences. SEGMENTATION ON BASIS OF AGE: 1. ADULTS Adults will mostly prefer the quality product which not only fulfill their taste and preference requirements but also reflects their personality. The adults are normally ready to pay for a product which fulfills their physical and psychological needs because they are the income generators. 2. TEENAGERS Teenagers dont have any specific taste and preferences. New products and new ideas always attract them. But they have a limited product and they have to maintain their expenditure within that. 3. KIDS

Kids normally do not have a great know-how of the taste rather they are psychologically attracted towards the product. They are not concerned with the taste of ice cream and they just want ice cream. As they are dependent and cannot spend money themselves, so their parents mostly just provide them with an economical ice cream, not any specialized ice cream as it is not demanded. FAMILY ITEM SEGMENTS 1. UPPERCLASS: Rich people can afford anything not price conscious and just go for good quality 2. MIDDLECLASS Mostly sticks to the traditional products and are price conscious and care for there taste and preferences to some extent. 3. LOW MIDDLE CLASS Generally look for an ice cream which is low priced

Strategies
Walls is using the differentiation strategy. As the prices of walls ice cream is slightly higher than its competitors because it imports all of its ram material and then introduces something new with different tastes and colors to attract more and more people. For example: Magnum, the most delicious and attractive ice cream having price of Rs.55 is also available in different flavors like almond and simple. The prices are slightly higher but it fulfills your desire of taste and joy.

4Ps of E-Marketing of walls

Product: - Product Variety: A wide range of dairy ice creams and frozen desserts - Quality: Premium ice cream rich in calcium which is fresh every time - Design: Includes ice pop, choc bar, dairy ice cream and pop sickle. - Features: Made from fresh milk and cream and high in nutrition - Product Name: Frooze ice pops, Nutty/ Caramel Cones, Strawberry/Mango/Vanilla Affair, Kulfi, Lick A Flavor, Frooze Cups

- Packaging: High quality and eye catching packaging. Packaging color ranges from red, blue, yellow, orange and green. Packaging is colourful in order to attract children. - Sizes: Sizes include 1ltr, 2ltr, and half litre for dairy ice cream. Choc bars & soft serve ice cream are of different sizes as well - Service: Satisfying the dessert needs of the Population in the best possible manner and delivering quality every time to the consumer - Warranty: None what so ever. - Returns: Only in the case when ice cream is expired. Price: List Price: Price varies for different ice creams. Depending upon - Cups = 20rs - Cones= 35rs - Ice Pop: 10rs - Soft serve ice cream= Rs 10-50 - 1Ltr ice cream Tub= Rs 150 - 2ltr ice cream Tub = Rs 275 - The price of its competitor (Omore) is more or less the same and price of liter ice creams is less than Omore which is a great strategy. - Walls offers a 20% margin to retail traders and shop keepers which is slightly higher than Omore, who offer a margin of 16% to shop keepers.

Place: - Channels: Sells directly to the end user through retailers and shopkeepers. This is the trend in Pakistan followed by many FMCGs. - Coverage: walls ice cream for the time being is only available in limited areas on Punjab and not available throughout Pakistan. The company started off its operation in Punjab because it has the largest province population wise - Transport: Ice creams are transported to retailers and shop keepers through private transportation firms e.g. Abu Dawood Logistics and also through a few trucks owned by the company. This is done in order to remove transportation and vehicle costs - Locations: Available at large/medium sized and small bakeries, grocery stores and pharmacies in Punjab - Sell their products directly to consumers using cycles and their own personnel. This strategy has been in practice for many years and is being used by Walls and Hico too. Distribution One of the competitive advantages of WALLS is its availability, which is ensured by extensive distribution. The distribution of ice cream is different from other products. To keep it in a good form it must be chilled at appropriate temperature. For this purpose deep freezers are used, which are provided by the company. However, the running costs are to be paid by the retailer. For this purpose walls gives a margin of 18% to its retailers\distributors, which is distributed over entire channel. Pakistan is divided in three major sections. These are as follows: 1) North (Islamabad, Peshawar and Northern areas) 2) Central (Lahore and Central Punjab) 3) South (Sindh and Baluchistan) 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. PRODUCER DISTRIBUTOR 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 for Retailer the freezers 15000 Nil Investment on Ice cream products 12-15,000 12-15,000 Board for advertisement 3000 Nil

Total investment required 30,000 15,000

Others WALLS

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 every where 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.

Promotion: - Advertising: Vehicle Advertising, Outdoor billboards, Point of Sale Displays and Ads on televisions. Advertisements are mostly colorful reminiscent to their ice cream packaging - When Omore ice cream was initially launched they adopted a rather unique way of advertising. Flyers were thrown in different housing communities using airplanes.

- Message: Linked ice cream with joy and happiness so their tagline/slogan Happiness

is Art of

- Linked with consumers and got reviews of different ice creams using various mediums social communities e.g. Facebook and Orkut - Linked their ice cream with other brand names like Olpers and Olwell. This promoted their other brands as well which are also relatively new in the market

Budget:
One of the hardest marketing decisions facing a company is how much to spend on promotion. How does a company decide on its promotion budget: WALLs ice-cream uses Objective-and-Task Method to set its budget for promotional activities. This budgeting method entails (1) defining specific promotion objectives, (2) determining the tasks needed to achieve these objectives, and (3) estimating the cost of performing these tasks. The sum of these costs is the proposed promotion budget. Walls determine its specific tasks to achieve its objectives which are defined by the companys management, to achieve these objectives WALLs estimates the costs of different tasks, which are to be done to promote its products. 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 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.)

Evaluation:

Sales Analyses
Products Magnum Feast Cornetto 2007 20.4 30.6 45.9 2008 27.8 38.6 46.9 2009 45 34.6 45 2010 30.4 31.6 43.9

2010 2009 2008

Turnover ( million) Underlying sales growth (%) 40 187 39 642 38 401 5.5 3.8 3.4