walls marketing plan
TRANSCRIPT
Marketing Plan for Marketing Plan for “CORNETTO” Wall’s“CORNETTO” Wall’s
Presented by:Presented by:Group C.Group C.
Presented to:Presented to:Sir. Yawar Abbas.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 SummaryTarget 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:
Japan 125
South Korea 44.5
Taiwan 22Hong Kong 5.9
Philippines 68.7
Brunei 0.3
Papua NewGuinea 4.0
Australia 17.8
Maldives 0.2
Sri Lanka 17.9Malaysia 19.5
China 1,192
Nepal 22.1
Pakistan 126.4
Bangladesh 116.6
Bhutan 0.8India 911.6
Singapore 2.9
Vietnam 73.1
Indonesia 199.7New Zealand 3.5
Thailand 59.4
Geographic:
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:
Psychographic:
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:Hico.
Yummy.Pearl.Igloo.Smile.
Eatmore.
Indirect:Haagen-Dazs.Royal treat.Local ice-cream.
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
Tubs & Take2
Cornetto
Jet Sport, Cups & Choc-Bar
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-pluspricing
Price based onboth demandand costs
Price set inrelation tomarket alone
DESIGN APPROPRIATE STRATEGIES:
Price vs. nonpricecompetition
Skimming vs. penetration
Discounts and allowances
Freight paymentsOne price vs. flexible price
Psychological pricing
Leader pricingEveryday low vs.high-low pricing
Resale pricemaintenance
Pricing Structure:
Cost andprofit
= 100%= $72
MANUFACTURER
Manu-facturer’sselling price= 100%= $72
Cost = 80%= $72
WHOLESALER
Whole-saler’sselling price= 100%= $90
Markup= 20%= $18
RETAILER
Re-tailer’sselling price= 100%= $150
Markup= 40%= $60
Cost = 60%= $90
Cost toconsumer
= $150
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.
ProducerProducer WholesalerWholesaler RetailerRetailer ConsumerConsumer
ProducerProducer WholesalerWholesaler RetailerRetailer ConsumerConsumer
PUSH STRATEGY
PULL STRATEGY
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:
ULTIMATE CONSUMERS
PRODUCERS OF CONSUMER GOODS
Retailers
Agents
Distribution Strategy:
Specifythe role ofdistributionwithin themarketingmix
Selecttype ofdistribu-tionchannel
Determine appropriateintensityof distri-bution
Choosespecificchannelmembers
WELL-DESIGNED
DISTRIBUTIONCHANNEL
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
80,000
70,000
60,000
50,000
40,000
30,000
20,000
10,000
Co
st,
re
ven
ue,
pro
fit
Quantity in units0 100 200 300 400 500 600 700 800 900 1000 1100 1200
BREAK-EVENPOINT
PROFITS
Total variable costs
Total fixed costsLOSSES
Marketing Research:
Financials: Breakeven
Analysis: Monthly Units Break-even
2.4 millionMonthly Sales Break-even
Rs.102 millionAssumptionsAverage per unit revenue
Rs.35Average 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 Plans
TV and RadioBillboards(4 places)News PapersTheme adv.(3 Events)
100,00,000
70,00,0005,00,000
10,00,000
Marketing Research:
Financials: Expense
Forecast of 2007.
Main Heads Sub-Heads Budget (RS)
Sales Promotional
Plans
Free SamplingDisc & Incentives
Price Quantity
Seasonal Discount special offer 5%.
15,00,00025,00,00020,00,00015,00,000
Marketing Research:
Financials: Expense
Forecast of 2007.
Main Heads Sub-Heads Budget (RS)
Free Freezers(200).Street Vendor Tri-cycles(150).
24,00,00015,00,000
Public Relation Plans
Total Budget
Fun Carnivals(3place)Concerts(2)
100,00,00
0 50,00,0004490000
0
Sales Forecast in Year.
Sale forecast in year
2007 2008 2009 2010 2011 2012
Sales in million
Rs.225
Rs.275
Rs.332
Rs.488
Rs.592
Rs.712
Sales Forecast in Year.
0
100
200
300
400
500
600
700
800
2007 2008 2009 2010 2011 2012
sale forecast
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 PlanMilestone
Startdate
End date
Marketing plancompletion
1/1/2007
2/1/2007
Budget(Milln)
Manager
Department
7.5 A Marketing
Implementation:
Milestones PlanMilestone
Startdate
End date
Websitecompletion
1/1/2007
2/1/2007
Budget(Milln)
Manager
Department
2.2 B Marketing
Implementation:
Milestones PlanMilestone
Startdate
End date
Advertising campaignsummer
1/1/2007
2/1/2007
Budget(Milln)
Manager
Department
8.92 C Marketing
Implementation:
Milestones PlanMilestone
Startdate
End date
Advertising campaignWinter
1/1/2007
2/1/2007
Budget(Milln)
Manager
Department
4.15 D Marketing
Implementation:
Milestones PlanMilestone
Startdate
End date
DevelopmentOf the Retail channel
1/1/2007
2/1/2007
Budget(Milln)
Manager
Department
10.23
E Marketing
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.Have a large impact on the demand for the products.
Marketing Plan Evaluation