WALLS ICE CREAM

Dedicated to Our

Beloved Parents&

Respected Teacher SAROOP ANWAR

ACKNOWLEDGEMENT

All praise is due to Allah, the lord and cherisher of the university. May his pace and blessings be upon prophet Muhammad (PBUH), his household, companions and all followers of the right Guidance till the day of

Judgment. First of all we are thankful to ALLAH Almighty who has created us, gave us the power to understand and the power to gain knowledge. Without His kind guidance we would have not been able to complete any task given to us. We are great full for the guidance which has been allotted to us from Allah Almighty to

understand and gain knowledge.

Allah, the Exalted, says: " Say: Are those who know equal to those who know not? It is only men of understanding who will remember."

We give honor and privilege to our respected resource person who helped us in thinking in the right direction by giving us this challenging task.

.We would also like to thank our families, who added a boost to our confidence, and are always praying for

our success

COMPANY PROFILE

Introduction:Wall’s was bought by Mac fisheries in 1920 – who then sold Wall’s 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 Wall’s 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.  Wall’s ice cream started production. Wall’s 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 World’s largest margarine producer World’s largest soap and detergent maker World’s largest maker of packaged tea World’s largest ice cream maker World’s 3rd-largest advertiser World’s 16th –largest industrial company Rank World’s 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. 

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

“Unilever’s mission is to add vitality to life. We meet everyday needs for nutrition; hygiene and personal care with brands that help people feel good, look good and get more out of life.”

Wall's Polka Acquisition

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 1995, Polka approached Wall's with an offer to merge the two companies.In 1998 Polka merged into Walls both combined with one and other. After the merging they are working together for last 7 years. On Polka packaging there is a brand mark of Walls ice cream.Wall’s has a 28% share in the ice cream market; 25% of which comes from the take home range and 64% of the impulse range – the highest in the entire industry.

Taste the fun side of life

Mention ice cream and most people think of the Heart brand. The brand with the big red heart logo is behind many much-loved ice cream classics – from indulgent treats like Magnum and Cornetto.

Making you happy

Few foods are guaranteed to put a smile on people's faces like ice cream. But while ice cream should always be fun, we've an ever-growing range of lower fat, lower sugar products. Heart brand now provides lighter versions for those watching the calories and smaller sizes for smaller appetites, as well old favorites – there's something for everyoneSome ice creams are best as an occasional indulgence, but others can be a regular treat, and eaten sensibly, ice cream can be part of a healthy balanced diet. Heart brand is developing products that are lower in fat, sugar-free, lactose-free, as well as low-crab options and those with more nutritional 'goodies' like calcium and fruit. For example:

Two scoops of Cornetto (a 100ml serving) have only 79 calories and 2.4g fat.

Magnum Light (170 calories/10g fat) has 30% fewer calories and 33% less fat than Magnum

Classic.

BCG MATRIX

Question Mark: Products with low share of a high-growth market

Star: Products with high share of a high-growth market

Cash Cow:Products with high share of a low-growth market.

Dog: Products with low share of a low-growth market.

PRODUCTS

Key facts

Unilever is the world's biggest ice cream manufacturer, with an annual turnover of €5 billion.

Heart brand products are sold in more than 40 countries. The Heart brand 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).

Ice cream is an impulse buying product it is related to happiness, fun and togetherness. Ice cream is a frozen product made from a combination of milk products and eggs, sugar dextrose corn syrup etc. It was once considered a sophisticated item of food is now becoming increasingly popular among the people. There are small, medium and large manufacturers of ice cream in Pakistan.Walls have divided the ice-cream products into three main categories.1. impulse item 2. In home3. bulk pack

Impulse ItemImpulse items are produce especially for kids and teenagers.

KIDS:

It includes Rocket, Twister, Bigger Three, and Vanilla cup, RainbowBerry Dip and Choc Dip which are for kids.

SLOGAN: All Action All Wall’s

TEENAGERS:It includes jet sport, Kings Kulfa

, Mango Kings Kulfa,

Light Vanilla, and Choc Bar, Cornetto, Pop cone, Chocolate Passion, Magnum, and Feast

SLOGAN: All Hearts All Walls’.

IN HOME:In home ice cream products are especially designedFor family and adults which includes liter and half liter packs also Have half and full packs. It includes Tutti Fruity, Cassatta, Kings Kulfa, Mango,Chocolate chip and many more.

SOLGAN: All Family All Wall’s.

BULK PACK:These are for dealers and hotels and Wall’s providing in large Or big quantity in the form of big packs. Wall’s deal with Pizza Hut, McDonalds, major shopping centers, stores, vendor.

SITUATION ANALYSIS

1. General state of the economy On the back strange economic recovery of last year Pakistan’s economy is gathering even greater momentum during the current fiscal year (2004 - 05).GDP is targeted to grow by 6.6% in 2204-05 powered by a strong growth in manufacturing (10.2%) and continuing robust performance in services (6.2%) and agriculture (4.0%).The GDP growth is likely to exceed the target and may end up at around 7% the highest growth in the last 15year.The literacy rate of Pakistan is estimated at 54% of both sexes.

2. Condition of the company in industry

Wall’s is very stable an established company and it is being operated by Unilever Pakistan. Wall’s 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-CreamOver half the respondents claimed that Wall’s 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 Wall’s variety 80% adults and 86% children claimed a Wall’s 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.Wall’s Twister are priced the lowest of the branded products (Twister: adults 74%, children 69%

4. Ice-Cream Purchase BehaviorRespondents 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 are generally happy to choose from what is available.

Annual Growth Rate13.37% is annual growth rate of the wall’s companyAnd wall’s ice creams remain the best.

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)

Unique innovative packing

Weaknesses: Perception about the company is that it is specially made for high class consumers. This

perception is affecting company image although Wall’s 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 Wall’s

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 Wall’s 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.

Demographic: 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.

Cultural and 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 wall’s 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.

Economic and 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.

Competitors Environment: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 wall’s who are competing with each other with respect to price and quality.

Ecological environment: The global warming is one of the biggest issues these days. The ever increasing heat in this part of the World is unbearable so there must be a cool stuff after lunch and dinner. Especially in countries like Pakistan where the summer season is quite an extended one.

Key Companies

KEY PRODUCTS

Magnum FEST

MAGNUM

CORNETTO

Sales Analyses

Products 2001 2002 2003 2004Magnum 20.4 27.8 45 30.4Fast 30.6 38.6 34.6 31.6Cornetto 45.9 46.9 45 43.9

  20072006 2005Turnover (€ million) 40 187 39 642 38 401Underlying sales growth (%)

5.5 3.8 3.4

Operating profit (€ million)

5 245 5 408 5 074

Operating margin (%) 13.1 13.6 13.2

  20072006 2005Earnings per share (Euros)

1.32 1.19 1.07

Dividend per NV ordinary share (Euros):Interim 0.25 0.23 0.22Proposed final 0.50 0.47 0.44Dividend per PLC ordinary share (pence):Interim 17.00 15.62 15.04

Proposed final 34.11

32.0430.09

Summary consolidated income statement for the year ended 31 December

€ million £ million $ million  2007 2006 2007 2006 2007 2006Continuing operationsTurnover 40 187 39 642 27 416 27 028 54 815 49 711Operating profit 5 245 5 408 3 578 3 687 7 155 6 783After (charging)/crediting:Restructuring (875) (704) (597) (480) (1 194) (883)Business disposals, impairments and other

306 196 209 134 416 246

Gains on US healthcare and UK pensions

– 266 – 181 – 334

Net finance costs (252) (721) (171) (491) (345) (904)Finance income 147 128 100 87 201 160Finance costs (550) (590) (374) (402) (752) (741)Preference shares provision (7) (300) (5) (204) (10) (374)Pensions and similar obligations 158 41 108 28 216 51

€ million £ million $ million  2007 2006 2007 2006 2007 2006Share of net profit/(loss) of joint ventures

102 78 69 53 139 98

Share of net profit/(loss) of associates

50 36 34 25 69 46

Other income from non-current investments

39 30 27 20 53 36

Profit before taxation 5 184 4 831 3 537 3 294 7 071 6 059Taxation (1 128) (1 146) (770) (782) (1 539) (1 438)Net profit from continuing operations

4 056 3 685 2 767 2 512 5 532 4 621

Net profit from discontinued operations

80 1 330 54 907 109 1 668

Net profit 4 136 5 015 2 821 3 419 5 641 6 289

Attributable to:Minority interests 248 270 169 185 338 339Shareholders’ equity 3 888 4 745 2 652 3 234 5 303 5 950

Combined earnings per shareFrom continuing operationsBasic earnings per share €1.32 €1.19 £0.90 £0.81 $1.81 $1.49Diluted earnings per share €1.28 €1.15 £0.87 £0.78 $1.75 $1.44From discontinued operationsBasic earnings per share €0.03 €0.46 £0.02 £0.31 $0.03 $0.57Diluted earnings per share €0.03 €0.45 £0.02 £0.31 $0.03 $0.56From total operationsBasic earnings per share €1.35 €1.65 £0.92 £1.12 $1.84 $2.06Diluted earnings per share €1.31 €1.60 £0.89 £1.09 $1.78 $2.00

Bar Chart

Graph

Pie Chart

ConclusionIn this project we discuss the history of the walls company and product line in Pakistan. There are many competitors in the market. After the analysis this company is the number one ice cream company in Pakistan. This company is the project of Unilever they sold Wall’s to Lever Brothers in 1922 this company is not only in ice cream but they Wall’s 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. Unilever is FMCG Company and is selling 150 million products daily all over the world. It is just because of development and usage of information technology in the strategy and operations of the organization.

People preferences for the Wall’s ice cream:

Internet

1. www.unileverpakistan.com2. www.walls.co.uk3. www.wallspakistan.com

Discussion with seniors