DAIRY QUEEN ICE CREAM

Prepared for

Prof. Nabiga Mahmood

Course Instructor of Marketing
Institute of Business Administration
University of the Punjab

Prepared by

Abdul Waheed (Roll No. 19)

Muhammad Awais Masood (Roll no. 28)
Syeda Amna (Roll No. 53)
Sumaira Latif(Roll No. 30)

May 19, 2017

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 May 19, 2017

Prof. Nabiga Mahmood

Institute of Business Administration
University of the Punjab

Dear Mrs. Nabiga Mahmood :

Here is the report on a recently launched product in the market and its marketing plan
that you asked us to prepare.

As you will see, our report is based on a famous international ice cream brand that has
been selling in more than 58 countries and now wants to make its position in Pakistan
and to capture its local market by their outstanding quality. We are submitting it to you
February 21, 2017.We are confident that all the efforts made by us will be appreciated
by you.

We at Institute of Business Administration appreciate having this Project. We will be

pleased if we can help you in interpreting this Report and Presentation or give
suitable answers that might appear in your mind while interpreting this report.

Sincerely Yours,

Abdul Waheed

Project Leader

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 Table of Content
Executive Summary ....................................................................................................... v

Introduction .................................................................................................................... 1

Mission....................................................................................................................... 1

Vision ......................................................................................................................... 1

Values ........................................................................................................................ 1

Introduction to product .................................................................................................. 2

Slogan ........................................................................................................................ 3

Ingredients.................................................................................................................. 3

Objectives ...................................................................................................................... 4

Current Market Situations .............................................................................................. 4

Segmentation and Targeting .......................................................................................... 4

Geographic’s .............................................................................................................. 4

Demographics ............................................................................................................ 5

Positioning Statement ................................................................................................ 5

Our Competitors............................................................................................................. 6

Product Reviews ........................................................................................................ 6

Competitors Review................................................................................................... 7

Walls .............................................................................................................................. 7

Product ....................................................................................................................... 7

Price ........................................................................................................................... 8

Place ........................................................................................................................... 8

Promotions ................................................................................................................. 8

Omore ............................................................................................................................ 9

Product ....................................................................................................................... 9

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 Price ........................................................................................................................... 9

Place ......................................................................................................................... 10

Promotions ............................................................................................................... 10

SWOT ANALYSIS ..................................................................................................... 11

Strength .................................................................................................................... 11

Weakness ................................................................................................................. 11

Opportunities............................................................................................................ 11

Threat ....................................................................................................................... 11

Market Objectives ........................................................................................................ 12

Market Strategy............................................................................................................ 12

Marketing Mix ............................................................................................................. 13

Product Strategy ....................................................................................................... 13

Price Strategy ........................................................................................................... 14

Promotion (Communication Strategy) ..................................................................... 15

Place ......................................................................................................................... 15

Budgeting Strategy....................................................................................................... 16

Controls ........................................................................................................................ 16

Measuring ................................................................................................................ 17

Comparing................................................................................................................ 17

Correcting ................................................................................................................ 17

Actions Programs ......................................................................................................... 17

June .......................................................................................................................... 17

July ........................................................................................................................... 17

August ...................................................................................................................... 17

September ................................................................................................................ 17

Reference ..................................................................................................................... 18

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 Executive Summary
This report explains the marketing plan for launching a fresh Ice-cream Dairy Queen.

Our product has been selling internationally in more than 58 countries for about 70

years and is about to launch in Pakistan very soon. In the very beginning of the report

we have explained the mission of Dairy Queen Ice-cream and later we have

discussed its market segmentation, targeting, positioning strategies.

This report examines the main competitors of the product and how our brand is going

to compete them by providing high quality, low prices and maintaining consistency,

so the main vision of this product is to grab the attention of the customers from the

beginning as it will create a lasting image in their mind for a long time. .

A primary study has been done to focus on level of the top competitors Dairy Queen

will be facing and how it should build its position in the market. For this purpose we

have conducted a SWOT analysis which defines company’s strengths, weaknesses,

opportunities and threats. We have also created a marketing mix strategy for our

product that focuses extensively on four P’s that are Product, Price, Promotion and

Place so that we can attract our customers in which kids, youngsters and families are

our main target. We are hopeful that our product will out stand in the market and will

soon become the bestselling ice-cream brand in Pakistan.

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 Introduction
Dairy Queen, often abbreviated DQ, is a chain of dairy and food products, owned by
International Dairy Queen, Inc. it has been successful for more than 70 years and has
owned recognition all over the world by providing consumers with crave satisfying
treats and food since 1940, other than ice cream it offers malts , milkshakes , banana
splits and a range of hamburgers and other cooked foods the DQ system's recipe for
success has been simple. DQ foods are still, and always have been, the place to find
kids' sports teams celebrating a victory, business people on their lunch break and
families taking time out to enjoy great food and soft serve treats .In other words it has
captured the attention of overall consumers by providing consistency in delivering good
quality ,reasonable prices and excellent services.

As it has hundreds of its franchises in various countries to expand its business the
international market, it has now decided to launch its ice-cream range in Pakistan for
the first time. Firstly, their main aim is to capture main cities of Pakistan like Karachi,
Islamabad and Lahore to check and observe customers reviews of their ice-cream.

Mission
“To create positive memories for all who taste Dairy Queen”

Ref: Dairy Queen

Vision
To provide world’s favorite dairy products

Ref: Dairy Queen

Values
Uphold Integrity
We believe that integrity, honesty and trust are necessary to the success of our people
and our business

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Faster Teamwork
Working together is our strength. We share our ideas, knowledge and sources

Deliver Service
Delivering excellent service to each other and to all costumers is essential to our
success.

Promote Growth
We are committed to worldwide growth and profitability to positively impact our
franchise, honors stakeholders and employees and commitments.

Appreciate Heritage
We understand that our history is important to our future

Embrace Change
We strive for progressive thinking, fresh ideas and creativity to improve every aspect
of life.

Support Community
We believe in giving back to the communities in which we lives, work and do
business.

Ref: Dairy Queen

Introduction to product
Eating ice cream really does make you happy. Dairy Queen is a fresh and delicious
ice cream product that is soon going to be launched in Pakistan. Its aim is to focus
consumers of all ages. It is well known for its quality products and services
internationally. The company focus on customer driven marketing strategy as they say
that their ice-cream is not just a product but it is a source that also creates customers
satisfaction and delight.

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Slogan

Ingredients
1. Milk Fat

2. Milk

3. Sugar

4. Corn Syrup

5. Artificial flavor

6. Corn

7. Cake

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 Objectives
Our objectives are to:

1. Capture food market

2. Increase product range
3. Satisfy customer’s needs and provide healthy food

4. Face strong competitors and

Current Market Situations

Dairy queen is a fresh ice cream product, which is going to be introduced in
Pakistan’s local market. We are focusing to all level of generation, kids, youth,
matures and old and overall families.

“Prices are Low, Quality is best”

Segmentation and Targeting

Geographic’s
We are focusing to launch our delicious product to all small and big cities of Pakistan
but mainly we are opening our outlets in:

 Peshawar  Karachi

 Faisalabad  Quetta

 Lahore  Haiderabdad

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Demographics
We are going to focus on all genders, all ages and all families

Our Product is primarily liked by:

 Youngsters

 Kids

 Females

Positioning Statement
To kids, Youngster’s and old too, who want refreshment, dairy Queen delicious ice
cream gives taste, yummy and delight with low price to everyone.

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 Our Competitors
We are going to face competitive market situation. Currently following are our
competitors:

Product Reviews
Dairy queen is available in different quantities and different flavors. The most famous
flavors are:

Banana Split

Chocolate Chip Blizzard

Orange Julius

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Competitors Review
There are more than 10 competitors of Dairy Queen ice-cream but Omore and
WALLS are leading the market right now and others companies are far away from
them .Omore and WALLS have loyal customers over the years because of their
consistency in providing high quality products that provides customer satisfaction and
results to loyal customers. Our first purpose is to compete with those ice cream
companies which have high market shares and then compete with the top two ice-
cream brands Walls and Hico.

The main competitors are:

Walls

Product
Walls is a famous ice cream brand and is owned by Unilever Pakistan.

Quality of Product
Walls is providing very good quality at reasonable prices so it has therefore gained a
name in the market. They are considered as a brand of taste in Pakistan. Our major
task is to compete walls.

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Price
Walls have retained its customers by offering reasonable prices.

Following are prices of some bestselling products by Walls

Ref:Uniliver Pakistan

Place
Walls have drastically increased its sales in short time by offering products that are
easily available all over the Pakistan. But mainly they have strong hold in Punjab and
Big cities of Sindh like Karachi and Hyderabad.

Promotions
Walls promotion strategy is very good as they make many adds relating to the events
and cultural days like Eid , Independence day and many other events. Mainly they are
promoting their products with the help of

 Bill Boards
 Sign Boards
 Television

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 Omore

Product
Omore Ice cream is the product of Engro Industries Ltd.

Quality of Product
After Walls, Omore is Pakistan’s second bestselling ice cream product. They also
offer good quality at reasonable prices and with the help of large media advertisement
campaign they are developing their name day by day

Price
Prices of Omore are also high but as compared to walls they are offering less process.
Basically they are major competitors of walls in local market. Some prices are given
bellow.

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 Type Quantity Price (Rs.)

Caramel Crunch 135 25

115 20

Qulfa 75 20

Feast 600 150

Omore Stick 500 75

Mango 500 90
Vanilla 500 100
BadamKhoya 500 130

Ref: Engro Food

Place
After a huge media advertisement they are able to build their name in many cities of
Pakistan and have become one of the toughest competitors to Walls.

Promotions
They are also well prepared to attract their costumers and it’s also seen that where
there is walls there is Omore as well. They are using product concept. For that
purpose they are using a large amount for advertisement

Their major sources of advertisement are

 Social Media
 Television
 Social Media

Strategies
 Attractive Packing
 Incentive Distribution
 Better Quality
 Costumer Relations

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 SWOT ANALYSIS
Strength
Dairy Queen has two important strengths:

 Innovative product
 Low Prices

The price of our ice cream is lower than that of our competitors although it has
excellent quality. Mostly customers compare quality and price of a product with its
substitute products offered in the market so by keeping low prices we can attract price
conscious costumers as well.

Weakness
Lack of Brand awareness
As Dairy Queen is newly launched in Pakistan and has no image in local market right
now, whereas WALLS and HICO have strong brand recognition. We can overcome
this weakness with large-scale advertisement.

Weak Market Share

As we are new in the market and our shares are low but because of our quality and it
is also perceived as a decent brand

Opportunities
 Online Ordering and Home Delivery Services
 Changing Costumers life style and treat proposition
 Invitation specifically towards product and service line expansion

Threat
 Lower cost competitors i.e. gourmet
 Price war and product substitution
 Increasing cost of operation can affect business and profit

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 Market Objectives
We have to set our objectives and goals which should be specific, measurable,
attainable, reliable and timely. Overall goals must be SMART.

First year objective:

During the first year, we are willing to sale overall more than 1,000,000 liters of ice
cream. This objective will help us for achieving breakeven point.

Second Year Objective:

Our second year objective is to sell more than 2,000,000 liters of ice cream and to
occupy minimum 10 percent market share.

Market Strategy
While targeting new market in developing country, which has more than 200 million
population, we have to make strong market strategy. Our primary targeted customer

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are school going children, college and university students and working people. They
all highly fond of delicious ice creams. Our secondary targeted customers are middle
class and upper middle class families. They are largest population of our targeted
market. They always need refreshment that they can afford easily.

Our primary business target is local distributing companies which has already good
will with retailers and wholesalers. We will attract them by giving reasonable profit
for taking distribution responsibility. Our secondary business target is local retailers.
They are in large number throughout the whole targeted market. We will give those
incentives and bonus for achieving targeted sales.

Marketing Mix
Product Strategy
Product Varity:
Our product has large number of variety, which included different flavors, tastes and
colors.

Brand Name
We will give high importance to brand name and Logo. It must be displayed on
product and every kind of promotion and marketing campaign.

Quality and Features

We will follow the method of low expectation and high performance. Obviously, it is
possible through excellent combination of promotion and quality. Feature should be
unique and different. Differentiation in feature and quality helps us for capturing new
market.

Design, Packaging and Sizes:

Design of product must be attractive and appealing. We will take services of well-
known company for packaging. Different variety sizes will be provided according to
different needs. 1 liter pack, 2 litter pack in plastic box, three different sizes of ice-
cream cups and cones will be given in market.

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Price Strategy
The Dairy Queen will introduce its product on reasonable price. That would be
Rs.180 per liter. Small, medium and large cup will be available on Rs. 20, 35 and 50
respectively. These low prices are reflecting the strategy of:

(1) Attracting customers,

(2) Taking share from competitors,
(3) Making valuable partners

Price and Quality Matrix:

The price it-self is very dynamic thing in nature. Very high price creates a great
distance between majority of population and the brand. And very low price many
times seems to cause of failure of business. Price and Quality management is the real
challenge in the modern world. We use price quality matrix for direction and
evaluation of our price strategy.

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Promotion (Communication Strategy)
We will reinforce our product’s brand name and the main points of differentiation by
utilizing all communication channels. Our main sources of advertisement are:

(1) Print media,

(2) Electronic media,
(3) Private TV commercials,
(4) Popular websites, (Google and Yahoo)
(5) Social Media, (Facebook, twitter, what’s app etc.)
(6) Company’s Official website.
(7) Food Delivery App

Sale promotion:
We will use sale promotions for attracting, retaining and motivating our value able
partners. Different agencies could be also helpful for gaining this purpose. Sales
personals will meet different individual for introducing our product. We are hoping
that we will make more customers through communication rather than our websites.

Benefits
Following are the additional benefits which are offered to the customer to given them
value

 Buy one get one free

 If you purchase a small crate of ice cream then through lucky draw you can be
the winner of the following :
 DVD system
 I phone
 Tablet

Place
To assure that the availability of this ice cream have established effective network of
listed dealers. The main focus and target of these ice cream is Hyderabad

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At last the customers would then be able to buy dairy queen ice cream. Our distributer
are the best and reliable with number of retailers even in the rural areas of Hyderabad
and its surrounding. This thing assure that the dairy queen will available everywhere.

Budgeting Strategy

Controls
The main and the last thing of the marketing plan is control by using this method we
can check the standard of our product by comparing it with others standards if there
any problem arises in marketing plan it must be addressed. Three main functions are
performed under this element of planning that is.

 Measuring
 Comparing
 Correcting

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Measuring
Through survey we can check our marketing condition through measuring in which
different types of tasks may be performed

 Survey
 Questionnaire

Comparing
In the process of controlling we compare the standard of our product with our
standard

Correcting
In case of any problem and issue through correcting we can know that from where the
problem will arise

Actions Programs
“Dairy Queen” will be launched in May .Following are 6the summaries of the action
programs we will use during this summer session to achieve our stated objectives

June
We will initiate 80,00,000 rupees trade sales promotion campaign to educate dealers
and generate excitement for the product launch , opinion leaders and celebrities as
part of our public relation strategy .

July
We will start an integrated print/ displays/television campaign .the campaign will
show how many features DAIRY QUEEN have for the users to reenergize them.

August
As the ice cream advertisement continuous, we will add consumer sales promotion by
including them to our message. We will also support or retailer to increase our sales

September
We plan to roll out a new advertisement having new views of customers through
survey who have used our drink which will help to promote our ice cream.

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 Reference
1. Web: uniliver official web site. (https://www.unilever.pk)
2. Web: Engro Food official web site. (http://www.engrofoods.com)
3. Web: Dairy Queen official web site. (https://www.dairyqueen.com)
4. Principles of Marketing by Kotler & Armstrong (12th Edition)

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