Marketing Plan for

“CORNETTO” Wall’s
Presented by:
Group C.

Presented to:
Sir. Yawar Abbas.
 Introduction of Wall’s

Brought by Macfishries in 1920.

International brand of ice cream and most
profitable unit of Unilever.
Started in Pakistan in 1995 from Lahore.
Started operation in Karachi in August 1995.
“Customer Moment of value” is defined as providing
services in the following aspects:

When the customer wants it (Time).

Where the customer wants it (Location).
How the customer wants it (Form).
How the customer access it (Perfect Delivery).
Situation Analysis:

Walls is going to enter in its 13th year of operation.

The Wall’s tricycle with its melodious music and

distinctive umbrella has given a new dimension to
the ice cream consumption and distribution in
Pakistan. Simultaneously, evoking nostalgia for the
days of the conventional ice cream
Market Summary
Target Markets:
A Class outlets.
A Class Locality.
A Class People (Disposable Income more than 10,000 per
month).
Status Conscious People.
Teen Agers.
 Segmentation Basis:

Geographic:
Japan 125
India 911.6 Bhutan 0.8

South Korea 44.5

China 1,192
Taiwan 22
Nepal 22.1 Hong Kong 5.9
Pakistan 126.4
Vietnam 73.1
Bangladesh 116.6
Philippines 68.7
Thailand 59.4
Brunei 0.3
Singapore 2.9 Papua New
Guinea 4.0
Maldives 0.2
Sri Lanka 17.9 Australia 17.8
Malaysia 19.5
Indonesia 199.7
New Zealand 3.5
 Segmentation Basis:

Demographic
:

Adults and Parents:

Cornetto, Feast and
Polka
Children:
Fruiti and Top
 Segmentation Basis:

Occasions:

Ice creams are also segmented on the basis of

occasions or circumstances. Each ice cream has a
different type of ‘eat”. Certain ice creams are
creamier, heavier and last longer because of thirst or
for refreshment as opposed to hunger. Similarly,
Polka cups are ideal for deserts.
 Segmentation Basis:

Psychographi
c:

Wall’s have also kept in view basic human

wants while targeting its market. People consume ice
cream under different psychological patterns,
feelings and emotions. In this, the target segment is
made by snacking items like Choc bar, Big shell, Big
Three, Panda, Pop-Cornetto etc.
 Market Needs:

Selection.
Accessibility.
Customer Design Service.
Competitive prices.
Corporate Mission:

“Feel good, look good and get more out

of life.” To make cleanliness commonplace,
To lessen work for women,
To foster health and contribute to
personal attractiveness, that life may be
more enjoyable and rewarding for the
people who use our products.
Balancing profit with responsible
corporate behavior:
 Acquisition of “POLKA”

To make cleanliness commonplace.

To lessen work for women.
To foster health and contribute to
personal attractiveness, that life may
be more enjoyable and rewarding for
the people who use our products.
Balancing profit with responsible
corporate behavior:
Market Expected Growth Trend for
“Cornetto”
 Current size, growth & profitability:

In Pakistan it is 51-60% of total ice cream market. If we

don’t count unbranded competitors then Walls has
market share of 73%.In the branded ice creams, Wall’s
is at the top and holds a huge market share of 85%. The
remaining companies are far behind in this race.
“Wall’s has a share of 22% of the intervention ice cream
market and in Pakistan it is 40% of total market.
SWOT Analysis
 Strengths:

Wall’s over the year has proved itself as an

expert in ice-cream industry and the evidence
of their remarkable quality services is
“GOLD EXCELLENCE TROPHY”

For Dec, 2000 first time in Asia. This has

given for high level of safety. This award is
mark of parallel performance of Wall’s ice
cream factory, which completed 3 million
accident fee man-hours.
 Strengths:

The main points that contribute to the strength of

Cornetto are:
A wider choice.
Removing artificial coloring and flavorings.
Less saturated fat & sugar.
More fruit.
More choice.
 Weaknesses

Wall’s is facing problems in the following areas:

As there are too many distribution channels of

Wall’s so their distribution cost increases from the
revenue generated by these outlets.
In Pakistan the manager of Wall’s company is a
foreigner so there are communication problems.
 Opportunities

Great margin to increase target market.

Strategic alliances.
Selling products to other markets.
Flexible Market.
Rural areas coverage.
 Threats:

Unstable market due to poor political situation.

Sometimes religious movements against
foreigners.
Future potential aggressive competition from
already existing companies.
Health conscious people can go against the
vegetable fats instead of milk fats.
 Competition:

Direct: Indirect:
Hico. Haagen-Dazs.
Yummy. Royal treat.
Pearl. Local ice-cream.
Igloo.
Smile.
Eatmore.
Comparison with competitors
 Product Offerings:
Goods Classification:

Consumer Goods.
Convenience Good as well as
Shopping Goods.
Non-durable.
Package Goods.
The product introduction “CORNETTO”

Leading premium brand of Wall’s

In start it was status symbol, now it
means value of money.
Cornetto’s products:
Cups:

Cornetto Chocolate Vanilla Cup

(Sundae Cup).
Cornetto Premium Cup.
Cornetto’s products:

Cornetto Premium Cup.

Cones:

Cornetto Pop Cone.

Cornetto Classico.
Cornetto Double Chocolate.
Cornetto Super Cone Strawberry.
Cornetto Super Cone Chocolate.
Cornetto’s products:

Delisted Products:

Cornetto Mint.
Cornetto Mango.
Cornetto Orange.
Cornetto’s products:

Delisted Products:

Cornetto Mint.
Cornetto Mango.
Cornetto Orange.
 Market Strategy:

“Lever brothers will be the foremost consumer

producers company in Pakistan with care, skin, ice
cream and spread. Already position in tea, hair,
dental and household care, substantially profitable
position in cooking oils and fats.”
 Marketing Objectives:

Maintaining positive growth in each quarter.

Achieve a steady increase in market penetration.
Decrease customer acquisition cost 5% P.A.
To increase sales volume by 10%.
To increase market share of CORNETTO from 21%
to 32% next year.
Add new features of packaging i.e. new packaging
style.
Increase distribution coverage by opening Walls Ice
Cream Parlors in Faisalabad.
Pakistan market share of Wall’s.
 Financial Objectives:

Increase the profit margin by 5% P.A

through efficiency and economies of
scale.
Maintain a significant research and
development budget to support future
product development.
A double to triple growth rate for
coming year.
 Target Market Strategies:

Target Market A
Children: Age:7-12 Years.
Product: Mini Cornetto.
Teenagers: Age:13-19 Years.
Products: Cornetto Orange.
Cornetto Banana.
Cornetto Mango.
Target Market Strategies:
Target Market B:
X-generation:
Age:7-12 Years.
Product: Mini Cornetto.
Teenagers: Age:20-28Years.
Products: New Super
Cornetto
(TRIPPLE CHOC).
Positioning Strategy:

Attribute Positioning.
User positioning.
Quality & Price
Positioning.
Product Differentiation:

Distinctive.
Superior.
Defensive.
Affordable.
Durable.
Share of Market:
 Marketing Mix:
Product:
Differentiation Factors:
Consistent quality.
Hygiene.
Aesthetic sense.
Strong distribution channel.
Change the concept of ice-cream in
consumer mind.
Brand loyalty.
Advance promotional tools.
Taste.
 Marketing Mix:
Product:
Quality Factors:
Wall’s competitive advantage is consistent
quality.
High-tech manufacturing equipment and strict
quality control process.
Highest standards of cleanliness.
 Packaging.

At Wall’s following factors are considered while packing:

Aesthetic sense.
Legal requirements.
Environmental aspects.
Competition.
 Product life Cycle
Cornetto

Jet Sport, Cups & Choc-

Bar

Tubs & Take2

Polka
Products

introduction Growth Maturity Decline

 Price:
Pricing
Structure:
Wall’s being the market leader and the major innovator in
the industry normally charge higher prices for its
products. These high prices are justified by the
management that they are due to:

High quality standards.

Research and development cost.
Extensive distribution etc.
 Pricing Structure:
SELECT PRICING OBJECTIVE

SELECT METHOD OF DETERMINING THE BASE PRICE:

Cost-plus Price based on Price set in

pricing both demand relation to
and costs market alone

DESIGN APPROPRIATE STRATEGIES:

Price vs. nonprice Freight payments Leader pricing

competition One price vs. Everyday low vs.
Skimming vs. flexible price high-low pricing
penetration Psychological pricing Resale price
Discounts and allowances maintenance
 Pricing Structure:

Markup
Markup = 40%
= 20% = $60
= $18 Re-
tailer’s Cost to
selling consumer
Manu- Whole- price = $150
Cost and facturer’s Cost saler’s Cost = 100%
profit selling = 80% selling = 60% = $150
= 100% price = $72 price = $90
= $72 = 100% = 100%
= $72 = $90

MANUFACTURER WHOLESALER RETAILER CONSUMER

 Promotion:
Communication Strategy:
The following are the communication strategies
adopted by Walls to inform and persuade the people:
Sales Promotion.
Advertising.
Sales force.
Public Relations.
Direct Marketing.
 Sales Promotion:

Main objectives of sales promotion:

To persuade present customers to buy more.

To combat competition.
 Discount & Incentives:

To Customers:
Price Discounts.
Quantity Discounts.
 Discount & Incentives:

To Distributors:
50% of distributor’s expenses are paid by
company.

Seasonal Discounts up to 5%.

 Discount & Incentives:

To Retailers:
Free Freezers.
Free Freezer maintenance.
Margin up to 16.48%.
Damage Policy.
Margin up to 8.6%.
 Discount & Incentives:

To Street Vendors:

Free Trikes.
 Advertising:

Media opted for advertisement is:

Electronic Media.
Outdoors.
Print Media.
Newspapers.
Billboards.
 PUSH STRATEGY

Producer
Producer Wholesaler
Wholesaler Retailer
Retailer Consumer
Consumer

PULL STRATEGY

Producer
Producer Wholesaler
Wholesaler Retailer
Retailer Consumer
Consumer

Product flow Promotion effort

 Sales Force:

Sales Force Incentives:

Training programs:
In-house training: Quarterly training
programs.
On job training.
 Public Relation Management:

Fun Carnivals.
Concerts.
Toll free number at the back side of every
wrapper 0800-13000.
www.wallspakistan.com.
 Distribution
Strategy:

Distribution Channel:

Factory Distributor
Retailer
Distribution Strategy:

Physical distribution means:

Distribution Vans.
Trikes.
Distribution Strategy:

PRODUCERS OF CONSUMER GOODS

Agents

Retailers

ULTIMATE CONSUMERS
 Distribution Strategy:

WELL-
DESIGNED
DISTRIBUTION
Specify CHANNEL
Select Determine
the role of Choose
type of appropriate
distribution specific
distribu- intensity
within the channel
tion of distri-
marketing members
channel bution
mix
 Action Programs:

 Product Plan:

 Advertising Plan:
TV (Geo ,PTV, ARY Digital) and Radio
(FM- 89,FM- 101).
Bill boards.
Newspaper (The News, Express, Daily).
 Action Programs:

Sales Promotion Plan:

Discount & Incentives:

To public.
To distributors.
To Retailers.
To street vendors.
 Action Programs:

Public Relation Plan:

Fun Carnivals.
Concerts.
Free number at the back side of every
wrapper 0800-13000.
Website address at the back side of every
wrapper.
 Marketing Research:

Walls is blessed with good fortune of

being the leader of there market having a
strong financial position so they can
conduct each and every type of research.
 Marketing Research:

Financials: Breakeven
Analysis: $100,000
90,000
C o s t, re v e n u e , p ro fit

80,000
70,000 PROFITS
60,000
50,000 BREAK-EVEN
POINT
40,000
Total variable costs
30,000
20,000 LOSSES
Total fixed costs
10,000
0 100 200 300 400 500 600 700 800 900 1000 1100 1200
Quantity in units
 Marketing Research:

Financials: Breakeven
Analysis:
Monthly Units Break-even
2.4 million
Monthly Sales Break-even
Rs.102 million
Assumptions
Average per unit revenue
Rs.35
Average Per unit Variable Cost
Rs.8

Estimated Monthly Fixed Cost

Rs.449000000
 Marketing Research:
Financials: Expense Forecast of
2007.
Main Heads Sub-Heads Budget
(RS)
Advertisement TV and Radio 100,00,000
Plans Billboards(4 70,00,000
places) 5,00,000
News Papers 10,00,000
Theme adv.(3
Events)
 Marketing Research:
Financials: Expense Forecast of
2007.
Main Heads Sub-Heads Budget
(RS)
Sales Free Sampling 15,00,000
Promotional Disc & Incentives 25,00,000
Plans Price 20,00,000
Quantity 15,00,000
Seasonal Discount
special offer 5%.
 Marketing Research:
Financials: Expense Forecast of
2007.
Main Heads Sub-Heads Budget
(RS)
Free Freezers(200). 24,00,000
Street Vendor 15,00,000
Tri-cycles(150).

Public Relation Fun 100,00,000

Plans Carnivals(3place) 50,00,000
Concerts(2) 44900000
 Sales Forecast in Year.

Sale 2007 2008 2009 2010 2011 2012

forecast
in year
Sales in Rs.22 Rs.27 Rs.33 Rs.48 Rs.59 Rs.71
million 5 5 2 8 2 2
 Sales Forecast in Year.

800
700
600
500
400
sale forecast
300
200
100
0
2007 2008 2009 2010 2011 2012
 Control:

The following will enable us to keep on track . If we

fail in any of these areas, we will need to re-evaluate
our business model:
Gross margins at or above 45.
Month-to-month annual comparisons indicate an
increase of 20% or greater.
Do not depend on the credit line to meet cash
requirements.
Continue to pay down there debt line at a minimum
of Rs.274 million per year.
 Implementation:
Milestones Plan

Mileston Start End Budge Manag Departme

e date date t er nt
Marketin 1/1/2007 2/1/2007 (Milln
g plan )
completi 7.5 A Marketing
on
 Implementation:
Milestones Plan

Mileston Start End Budge Manag Departme

e date date t er nt
1/1/2007 2/1/2007 (Milln
Website
)
completi
2.2 B Marketing
on
 Implementation:
Milestones Plan

Mileston Start End Budge Manag Departme

e date date t er nt
Advertisin 1/1/2007 2/1/2007 (Milln
g )
campaign 8.92 C Marketing
summer
 Implementation:
Milestones Plan

Mileston Start End Budge Manag Departme

e date date t er nt
Advertisin 1/1/2007 2/1/2007 (Milln
g )
campaign 4.15 D Marketing
Winter
 Implementation:
Milestones Plan

Mileston Start End Budge Manag Departme

e date date t er nt
Developm 1/1/2007 2/1/2007 (Milln
ent )
Of the 10.23 E Marketing
Retail
channel
Total 33.23 Million
Marketing
Organization

Marketing manager will be

responsible for the marketing
activities.
 Contingency Plan

Difficulties And Risks:

Problem generating visibilities, a function of being an

internet-based start-up organization.
An entry into the market by an already establishment
market ongoing basis.
 Contingency Plan

Worst Case Risk Include:

Determining that the business cannot support itself on an

ongoing basis.
Having to liquidate equipment or intellectual capital to
cover liabilities.
Environmental
Factors:
The external environment also posses great problems and
challenges to Walls. The economic environment might
cause:
Changes in peoples’ spending patterns.
Changes in major economic environment variables such
as:
Income.
Cost of living.
Borrowing patterns.
Marketing Plan Evaluation