TABLE OF CONTENTS

CHAPTER 1 BACKGROUND & STATEMENT OF THE PROBLEM.....................1

INTRODUCTION TO THE TOPIC............................................................................................................4 INTRODUCTION TO UNILEVER.............................................................................................................5 ABOUT WALLS ICE-CREAM...................................................................................................................7 STATEMENT OF THE PROBLEM............................................................................................................9 SIGNIFICANCE OF THE STUDY..............................................................................................................9 SCOPE...........................................................................................................................................................10 DELIMITATIONS.......................................................................................................................................10 DEFINITION OF TERMS..........................................................................................................................11 RESEARCH DESIGN.................................................................................................................................13 .......................................................................................................................................................................13 RESPONDENTS OF THE STUDY............................................................................................................14 RESEARCH INSTRUMENTS...................................................................................................................14 SOURCES OF DATA..................................................................................................................................14 TREATMENT OF THE DATA/INFORMATION/ ANALYSIS............................................................14 FOREIGN LITERATURE.........................................................................................................................16 LOCAL LITERATURE...............................................................................................................................19 GAPS TO BE BRIDGED BY THE STUDY..............................................................................................21 AREAS FOR FURTHER STUDIES...........................................................................................................21 CHAPTER 4..................................................................................................................................................22 PRESENTATION ANALYSIS....................................................................................................................22 CHAPTER 5..................................................................................................................................................41 CLOSING UP................................................................................................................................................41 SUMMARY OF FINDINGS........................................................................................................................41 CONCLUSION.............................................................................................................................................41 RECOMMENDATIONS.............................................................................................................................41 SUMMARY OF THE FINDINGS.............................................................................................................42 CONCLUSION............................................................................................................................................43 RECOMMENDATIONS............................................................................................................................45 BIBLIOGRAPHY.........................................................................................................................................46 APPENDIX....................................................................................................................................................47

CHAPTER 1 BACKGROUND OF THE SUBJECT/TOPIC & STATEMENT OF THE PROBLEM

1. INTRODUCTION TO THE TOPIC 2. INTRODUCTION TO UNILEVER 3. ABOUT WALLS ICE-CREAM 4. STATEMENT OF THE PROBLEM 5. SIGNIFICANCE OF THE STUDY 6. SCOPE 7. DELIMITATIONS 8. DEFINITION OF TERMS

INTRODUCTION TO THE TOPIC

The topic of my thesis is Identifying the challenges faced by Unilever Pakistan in marketing Walls Ice-Cream & developing strategies to resolve the problems. There has been a lot of changes in the minds and eyes of the consumer about Walls Ice-cream that it is not an ice-cream rather a dessert, on the mere fact that it is not made up of dairy milk. The local players in the market are taking out the best out of this negative perception of the consumer. Another underlying fact is that the prices charged by Walls have gone up in the previous year and some new local players have entered due to which Walls is facing fierce market challenges. The main focus of this study will be the in-home category since this category not only competes with other ice-cream brands but also Kulfi, Gola Ganda and other confectioneries that are most common on occasions. Walls in-home category is positioned as the family tradition of Pakistan.

INTRODUCTION TO UNILEVER
Unilever Pakistan Limited, a subsidiary of the Unilever Group is operating in Pakistan since 1948. The Companys main business lines are Soaps and Detergents, Personal Products, Cooking Oils and Fats, Packed Teas, and Ice Creams. Unilever has a long list of brands such as Surf, Vim, Rin, Lifebuoy, Sunlight, Lux, Rexona, Sunsilk, Close-Up, Blue-Band, Dalda, Planta, Liptons Yellow Label, Taaza and Richbru, Brook Bonds Supreme and Kenya Mixture etc. which are common household names in Pakistan. While continuously exploring expansion opportunities in various fields, focus remains on the Companys core business of Detergents and Foods & Beverages. Alongside these are the results of the Companys dynamic approach to meet the needs of the continuously changing market environment. The Companys factory at Rahim Yar Khan was one of the first industrial units to be constructed after the creation of Pakistan. As the consumer base expanded over the years and the Company entered into new product lines like Personal Products and Margarine, it invested further in the installation of modern manufacturing facilities including a factory at Karachi. Today, the Company is using latest state-of-the-art technology for producing high quality products. In 1989, Lipton (Pakistan) Limited was formally merged with Lever Brothers, which took under its fold Liptons tea business. In 1997, Brook Bond Pakistan Limited was also merged with the Company. A major importer of tea in Pakistan, Unilever is actively looking into the possibility of growing tea within the country. An experimental tea cultivation station has been set up in Mansehra where clonal was not only grown successfully but is now being planted by farmers in the area with extension services from Levers. It is expected that 600 hectares of farmland will be under tea cultivation in the next five years. However, it is worth noting that the large scale smuggling of tea poses a threat to such initiatives.

In 1995, the Company established a new factory near Lahore to manufacture the Walls range of ice creams, which have become popular within a short time. In 1996, the present group Unilever UK acquired the Polka Group that produced ice creams. In 1999, Pakistan industrial promoters (Private) Limited, owners of Polka brands of Ice Cream was merged with Lever. The Unilever name in Pakistan is synonymous with excellence. To maintain this position, the Company remains actively involved in development aimed at satisfying consumer needs with an optimal blend of quality and value, never forgetting the most important elements of business The Consumer Is King. In line with global alignment strategy, and in order to leverage the synergies of Unilevers international brand strength, market edge and corporate image, Lever Brothers Pakistan Limited changed its name to Unilever Pakistan Limited, in August 2002. Therefore, the present company has come about through the original Lever Brothers merging with Lipton (1988), Brooke Bond (1997), Polka Ice Cream (1998), presently we are operationally merged with Best Foods since 2001. 1982 saw the introduction of personal products and 1994 the setting up of the Walls ice-cream business, which was a green field exercise.

ABOUT WALLS ICE-CREAM

Unilever is the world's biggest ice cream business and the home of one of the best-known symbols in ice cream, the Heart. The Heart was launched in 1997 to unite Unilever's ice cream businesses and brands, and has grown to become the most-recognized logo in the world of ice cream. Their global ice cream business is worth 5 billion, with a 17% market share. Unilever is selling ice cream in over 40 countries worldwide. The Heart represents 3.5 billion of Unilevers sales. Unilever is taking the next step in building the world's most powerful ice cream brand by putting 20% more investment in the next three years behind marketing and development activities to make the Heart a true power-brand. The Heart is a famous symbol in over 40 countries around the world. The ice cream companies, united by the Heart logo, are known by different names in different countries, for example Wall's in the UK and South East Asia, Streets in Australia, Kibon in Brazil, Algida in Italy, Langnese in Germany and Ola in the Netherlands. Together they produce brands including Magnum, Cornetto, Solero and Carte d'Or. The business mission of Walls is two simple words MARKET LEADERSHIP. Walls is the #1 brand in the ice cream market of Pakistan. POLKA was once the market leader on the mere basis of its nationally available products and 25 years of experience. Now, after the WALLS and POLKA merger they together constitute market leadership. The companys objectives are cleared and well defined. The company wants Walls to be uniquely positioned as a top quality ice cream that comes to the customers doorstep. Initially, it was only the Gola Ganda Wallas and the Kulfi Wallas that came to the doorstep and made their presence known with familiar bell sounds or jingles. But a top quality hygienically prepared, imported ice cream was a completely new idea that delighted the consumers and made WALLS a household item.

The mobile vendors (600 in Pakistan and nearly 200 in Karachi) with the paddle-pop music was an effective marketing strategy that was new to the ice cream market of Pakistan. After the WALLS and POLKA merger, the marketing for POLKA is being done along the same lines as WALLS (Billboards, Post-signs, signs outside retailers). However, the pricing strategy implemented is Economic Pricing Strategy. The strategic objective behind this is to be broadening the entire price range covered by Unilevers ice cream products with a combination of economy and premium pricing. The range of Walls ice-creams are distributed in three categories; impulse, in-home and out-home. Impulse range constitute of choc-bars, cornetto, magnum, sundaes, cup icecreams I.e. those for individuals and dont require any planning to get. The in-home category is family packs and is targeted towards special occasions or those which have been positioned as a substitute to cultural confections; Walls selection, tub ice-cream, and Walls deserts. The out-home range are Walls kiosks placed at different localities in the city or Walls ice-cream parlours which are in direct competition with other foreign ice-cream brand parlours such as Gellato Affairs, Movempick, Mini-Melts, etc. The technological elements reflect the current state of knowledge regarding the production of product services. To overcome this element WALLS use modern technology for the production of ice cream. They always keep on introducing new technology in ice cream making so that in order to compete with other ice cream manufacturers. That is the reason why their quality of ice cream always exceeds from the quality of their competitors. Socio-Cultural elements are very important in a companys strategies. As we know that the climate of Pakistan is very hot so people love to eat ice cream especially the teenage. Walls has introduced ice cream ranging from Rs. 10 to Rs. 20, so that even poor people can also afford to buy good quality ice cream. Therefore it is very evident that this has become an emerging market with intense competition. In which the cultural confectionaries are a threat as well as other ice-cream companies.

STATEMENT OF THE PROBLEM

Identifying the challenges faced by Unilever in marketing Walls Ice-cream & developing strategies to resolve the problems. To study the Walls in-home range using their market share against new local entrants. The current challenges faced by Walls in marketing its in-home range ice-creams would be analyzed. The hidden prospects and strategies Unilever may use to further strengthen its position in the Ice-cream market and reach its respective marketing objectives as laid out in the marketing plan. To point out and rectify the managerial flaws and provide recommendations for better organization of the business as compared to the competition.

SIGNIFICANCE OF THE STUDY

Ice-cream is one of the emerging markets in Pakistan and has been making progress during the past decade. Walls since 1997 has leaded the market however this past year in this current scenario they have been facing considerable amount of challenges due to which their in-home range of ice-cream is being affected. This study would benefit Unilever in understanding the reasons for which there has been an overall change in the minds and eyes of the consumer about the Walls in-home range. It will also provide a basic understanding of the marketing activities conducted by other key players in the Ice-cream industry that are a threat to Walls even though they are local ad new entrants. It would also enlighten the potential business people in how to go about investing in this big emerging industry of Pakistan. Lastly, the thesis would be beneficial for me in the sense that it would provide me with the knowledge and the exposure as to how multi-national companies confront issues that erode their market share.

SCOPE
This is a completely new scenario and needs a comprehensive research at the national level. However due to distances and time constraints, the sample from Karachi will be larger than that from Lahore. It is important to include Lahore for the research is because the larger crunch of volume sales comes from there. The time period of this study will be from October till May.

DELIMITATIONS
My sample will be on a 95% confidence interval i.e. sample taken projected on the whole population, with a 5% error margin. Other delimitation will be of course investigating in other cities since this problem is on a national level and not just Karachi. The weather will also act as a constraint since most of the period in which this thesis will be carried out will be cold weather. Inaccurate and incomplete provision of information by the respondents, non-disclosure of the companys information and biasness in the information provided by the respondents are some of other delimitations.

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DEFINITION OF TERMS
1. Ice-Cream: This is a frozen dessert product containing at least 10% milk-fat and atleast 20% total milk solids, safe and suitable sweeteners, flavouring and other dairy derived ingredients. 2. Marketing mix determinants: the set of controllable tactical marketing tools product, price, place and promotion that the firm blends to produce the response it wants in the target market. 3. Brand Image: The set of beliefs that hold a particular brand. A set of brands beliefs about where each brand stands on each attribute. 4. Brand Positioning: The act of formulating a competitive positioning for the product and a detailed marketing mix. 5. Retail audit: Study of a selected sample of retail outlets, provide as a subscription based service by market research firms. Retail audit service providers gather information on a brands sales volume, sales trend, stock levels, and effectiveness of in store display and promotion efforts and other associated aspects. 6. Consumer behavior: Consumer Behavior is defined as "the dynamic interaction of affect and cognition, behavior, and environmental events by which human beings conduct the exchange aspects of their lives." More generally, Consumer Behavior is the psychology behind Marketing and the behavior of consumers in the Marketing environment. 7. Media Planning: Process of designing the objectives and strategies for the use of media in a marketing program and selecting the media that will most effectively and efficiently reaches the intended audience for an advertiser's product.

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CHAPTER 2 RESEARCH METHODOLOGY & PROCEDURES

1. RESEARCH DESIGN 2. RESPONDENTS OF THE STUDY 3. RESEARCH INSTRUMENTS 4. SOURCES OF DATA 5. TREATMENT OF THE DATA/INFORMATION/ ANALYSIS

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RESEARCH DESIGN
The Nature of the Study: This research thesis will be a combination of Descriptive & Exploratory Study. The reason behind this is different variables will be identified that are affecting the Walls inhome range. This research will also give a better understanding of the market for icecream. Study Setting: Variable will not be controlled nor manipulated; no artificial environment will be created for this study. Research Road Map:

Key Findings

Research Design

Gourm et Branded Ice Cream

Background & Objectives

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RESPONDENTS OF THE STUDY

Following are the respondents of the research: Consumers of in-home ice-cream (in the three months) o Sample of 100 respondents from Karachi o Sample 40 respondents from Lahore

RESEARCH INSTRUMENTS
Both Quantitative & Qualitative data will be gathered using different instruments. The data for this research is collected through the following instruments: Questionnaires for the consumer. Quantitative but semi-structured open-ended interviews. Unstructured interviews from organization to understand the market & current scenario.

SOURCES OF DATA
These are the sources of data collection for my study: Primary Sources Questionnaires for consumers and Interviews from Organization Secondary Sources - Internet, Magazines & Articles.

TREATMENT OF THE DATA/INFORMATION/ ANALYSIS

Data that will be gathered during the primary data collection is analyzed in qualitative methods. Simple calculations will be carried out to put the facts & figures into logical sense and then representing it into graphs or charts according to the type of data extracted.

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CHAPTER 3 REVIEW OF RELATED LITERATURE AND STUDIES

1. FOREIGN LITERATURE 2. LOCAL LITERATURE 3. GAPS TO BE BRIDGED BY THIS STUDY 4. AREAS FOR FURTHER STUDIES

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FOREIGN LITERATURE
Wall's Ice Cream Monopoly Proves Hard To Melt Away
By Nigel Cope, City Editor It may seem odd that Nestl, the world's largest food company, can't make a business in ice cream work here. In fact, the company has been losing money in UK ice cream ever since it entered the market nine years ago. Wall's is the ice cream subsidiary of Unilever, the consumer products giant whose brands include Persil detergent and Dove soap. The company's UK market share in ice cream is so much larger than anyone else's that all its rivals are struggling. Data compiled for the last Competition Commission investigation into the ice cream sector last year showed that as of May 1999 Wall's held a 71 per cent share of the so-called "impulse" market for ice cream, that is product bought on impulse in newsagents and convenience stores rather than tubs and multi-packs in supermarkets. However, a look in some newsagents freezers shows that many still stock mostly Wall's brands such as Magnum, Solero and Cornetto. This is not because they are forced to, but because they sell. And this is despite high prices which include more than 1 for a Magnum. As one City analyst says: "A lot of it comes down to product development and marketing. Even after the abolition of freezer ties, Unilever has eight of the top 10 impulse brands in the country." City analysts say Unilever is the market leader in ice cream in most of the main European markets such as France, Germany and Italy. But the difference is that Nestl has managed to establish itself as a credible number two in these countries, something it has never achieved here. The economics of the ice cream business are such that distribution costs are a fundamental part of the overheads. These fixed costs mean a company with only small sales will struggle. In the UK, only Unilever has managed to achieve those economies of scale. This is not to say that new entrants cannot make a mark. McDonald's has gained market share with its launch of soft, whipped ice cream a couple of years ago, with its huge chain of restaurants providing a ready-made distribution channel.

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Birds Eye Wall's has since launched its own "whippy" style ice cream from machines in newsagents and corner shops. With Nestl's ice cream business in Britain now set to be combined with that of Richmond, which accounts for 70 per cent of supermarket own-label ice cream, it may be able to give Wall's a better run for its money. Richmond will manufacture the Nestl brands under licence whilst stripping out overlapping costs to improve margins. However, Wall's is sitting pretty with a market share more powerful than virtually any consumer brand apart from Coca-Cola. Its biggest fear is probably another Competition Commission investigation.

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Walls Magnum Seven Deadly Sins

If you want to indulge in sin (and who doesn't?), now is the time, at least if you intend to sin through the medium of ice cream. The Anglo-Dutch foods conglomerate Unilever provides this opportunity to ice cream consumers in Britain, but not indefinitely. They have released the limited edition ice cream collection Magnum Seven Deadly Sins, comprising - you guessed it - seven variations of their classic Magnum ice cream: greed, gluttony, lust, vanity, jealousy, revenge, and sloth. Currently the two available flavours are Greed and Gluttony. Greed's icky coffee flavour is forgotten in a few minutes, but Gluttony is far more interesting. After all, gluttony must surely be the most inviting sin for an ice cream enthusiast. Unilever have answered this challenge chiefly by applying very liberal amounts of chocolate. Gluttony is covered in a layer of white chocolate. The first bite reveals an inner layer of milk chocolate and the actual ice cream, which is chocolate mud cake flavoured. The chocolate factor of this ice cream is the highest of all I have sampled. The Gluttony ice cream is available both separately and in a snack size pack which contains reduced-size versions of the Greed and Gluttony offerings. Be warned that while the ad campaign shows a slim and attractive model indulging in the sin of gluttony, if you do likewise, you will end up looking more like a bloated hippopotamus than said model. The Gluttony ice cream is the least healthy of all in the Seven Sins range, containing a whopping 29 grams of fat, 36 grams of carbohydrates and 1780 kJ (425 kilocalories) of energy. The Magnum, launched in 1988 (1989 in the UK), is today the best-selling ice cream in Europe, selling in excess of one billion pieces annually. Therefore it is hardly surprising that Unilever should attempt to expand on its success. Commercially they have achieved their goals, but in terms of gastronomic experience the design of these novelties is disappointing. Even though ice cream can come in virtually any shape and wild combinations of flavours in layers, it seems that Unilever's ice cream R&D department suffers from lack of originality - or perhaps they are guilty of the deadly sin of sloth.

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LOCAL LITERATURE
Walls Paki Pop Gets a Little Cooler
By Aamir Iqbal Dhakan The latest marketing campaign by walls features some of the top acts in the Pakistani pop music scene, including, Noori, Junoon and Strings. Moreover, the walls logo can be seen featured in a number of programs on Indus music. With this latest campaign, Walls has gone where none of its competitors have ever gone-associating ice cream with Pakistani pop music. Overall, the campaign gives a fresh new face to Walls and gets in with their existing philosophy to be an essential ingredient in the enjoyment of everyday life for everyone. This philosophy or vision has been the primary driver of its earlier marketing campaigns and applies just as much to the current one. Walls was introduced in the Pakistani market in 1995 by Unilever. It was an instant success due to their exceptional marketing communications and the products hygienic, high quality ad innovative nature. Feeding on the initial success, five new flavors were launched in the start of 1997, the same year in which Walls merged with Polka. This tradition of product innovation has continued throughout the years with Walls consolidating its market position with new additions and variants in its addition of new concessionaires and satellite towns. Traditionally, the target market of Walls has been, more or less, similar to the target market of Pepsi. Walls target market can be defined as the middle upper middle and upper class; fun loving energetic and vibrant with ages six and above; and single married and married with children. All the previous marketing activities of Walls have distinctly displayed an orientation towards this target market. The previous campaigns of Walls have displayed a focus on children, teenagers, young, adults and adults-all with their trademark fun loving and vibrant twist. This current campaign appears to be mainly geared towards teenagers and young adults, with secondary focus on children.

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There has been a positive reception towards the campaign; it is well liked by the public. The hoardings displayed at key points throughout the city, are very well executed and eyes catching, with a vibrant feel to it. Perhaps the strongest aspect of this campaign is that it fits with the overall brand essence of the product. Though there is a slight shift in their market focus, Walls core values of being energetic, being fun loving and happy, being vibrant, and having a good time are strongly reflected and reinforced in this latest campaign. This latest campaign by Walls was much needed to refresh and energize the brand which faces increasing competition from Igloo, Yummy and Hico.

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GAPS TO BE BRIDGED BY THE STUDY

Although related literatures were very valuable in understanding the ice-cream industry on the global arena and helped a lot in this research but they did not give any consequence and information about the shift in consumer preferences from Walls icecream to other local brands. Therefore, to achieve the objective of the study, interviews were conducted with direct consumers to get a feel of the market and information that would help in developing the questionnaire. Once the data had been compiled, questionnaires were pre-tested to identify the respondents and then distributed in different areas of Karachi and Lahore to get the appropriate response from the consumers of ice-cream packs. This helped in identifying the main challenges that Unilever had been facing.

AREAS FOR FURTHER STUDIES

This research will open the doors for further studies: In the increasing competition, will Pakistani ice-cream manufacturers be able to cope up & deliver quality products of international standards What are the steps to be taken by local manufacturers to fight effectively with the increasing competition Understand the consumer behaviour towards the purchase of branded & unbranded ice-creams Identify the effect of media on the consumption pattern of ice-cream

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CHAPTER 4

PRESENTATION ANALYSIS

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CONSUMER PROFILE: The sample of respondents chosen for the study consisted of those consumers who had eaten ice-cream in the past 3-months. The respondents were mainly of the ages 18 and above residing in the urban areas of Karachi & Lahore belonging to SEC A E.
Karachi 100 Lahore 40

Consumers

Consumers

29%

71%

Karachi

Lahore

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1. Do you consume ice-cream? This was a screening question for the sample of the study. Since this questionnaire pertains to the ice-cream consumers only, therefore those who do not eat ice-cream will be irrelevant to the research.
Yes 127 No 100

Consumers

Consum ers

44% 56%

Yes No

For a sample of 100 people, I had to approach a total of 127. This clearly shows that the majority (56%) of the population in Karachi are ice-cream consumers.

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2. Do you buy ice-cream in bulk packs? The following question was to drill down further to the core respondent i.e. consumer of in-home packs.
Yes 68 No 32

Consumers
Consumers

32%
Yes No

68%

The graphical representation above shows that two-third of the sample bought ice-cream in bulk packs. This proves that the sample selected for the research study was correct and which then leads to the rest of the questionnaire.

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3. How frequently do you consume ice-cream? This idea behind asking this question is to determine the consumption pattern of icecream by sample irrespective of the brand.
Weekly Consumers 50 Monthly 34 Quarterly 12 Others 4

Consumers

12%

4%

Weekly

Monthly

50% 34%

Quarterly

Others

The chart above displays that major portion of our sample consume ice-cream weekly and monthly. Some even consume at a regular basis. This shows that there is a high liking towards ice-cream than it is towards local confections.

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The next three questions were to identify the flavour preferences among consumers. Going back to the objective of the study, it is important to understand not just the brand preference, but also the flavour because there is also a large chunk of unbranded icecream consumers. 4. Name your 3 favourite ice-cream flavours?

Chocolate chips Faluda Pineapple Tuttifruiti Kulfi Chocolate Straw berry Pista Vanilla Mango 0

6% 10% 11% 16% 17% 27% 32% 37% 44% 45% 10 20 30 40 50

Mango, Vanilla and Pista are the regular flavors; however incidence for a broad range of flavors exists. Kulfi is a traditional format that still holds significant importance.

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5. When you think of ice-cream what brand comes to your mind? 6. What other brands can you think of that satisfy your need for an ice-cream?
Chocolate Fudge Walls Choc bar Paddle Pop Cornetto Sundae Cornetto Super Cone Wall's Tub Yummy Gourmet Choc Dip Feast Wall's Cornetto 0 5 10 15 20 25 30 35 40 45 10% 11% 13% 15% 15% 17% 17% 19% 23% 29% 38% 47% 50

Top of m ind brand

Although Walls and Cornetto are leading but there is gap in usage and awareness. In Lahore Gourmet is giving tough competition to Walls with 75% usage as compared to 92% of Walls. While in Karachi Igloo has 61% as compared to Walls 97%.

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7. Who decides what flavour to get?

Yourself Consumers 74 Siblings 10 Spouse 14 Children 8

Consumers

8% 13%

Yourself

Siblings

9%

Spouse

70%

Children

The chart shows that most of the respondents in our sample are the sole decision makers in buying ice-cream flavours. They make purchases according to their likings. 70% respondents make purchase decision themselves and they are the main consumers. Kids are the driving force for elders in purchasing ice-cream whereas besides themselves kids are very fond of buying ice-cream for their siblings.

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8. In what pack-size do you usually buy ice-cream? Respondents answer will determine the size of the packs they usually buy when consuming ice-cream. This may differ in those seasons when there is high demand for ice-cream.
1/2

Liter 14

1 Liter 60

1 1/2 Liter 28

2 Liter 4

Consumers

Consumers

4% 26%

13%

1/2 Liter

1 Liter 1 1/2 Liter

2 Liter

57%

More than half of our respondents usually purchase 1 Liter packs or 1 Liter packs. This shows that they purchase ice-cream frequently, also satisfying the result obtained in previous consumptions related to their purchase pattern. Only a couple of respondents buy 2 Liter packs of ice-cream and that too for the whole month with their monthly grocery.

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9. If youre looking for a 1 liter pack, what price range do you consider? The idea behind this question is to determine what price range the consumer is looking for when deciding to buy 1 Liter pack because Walls focuses more on the liter packs and accumulates the most sales for them. This will determine if the price set by Walls satisfies the consumer or not.
Rs. 100 - 150 Consumers 36 Rs. 150 - 200 50 Rs. 200 - 250 8 Rs. 250 - Above 6

Consumers

8%

6%

Rs. 100 - 150

36%

Rs. 150 - 200

Rs. 200 - 250

Rs. 250 - Above

50%

The response shows that half of the consumers are satisfied with the price range set by Walls but the other half is still demanding quality ice-cream at lower price.

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10. Do you prefer choosing your ice cream from a:

Make up your mind from before 43

Point of Sale Display Consumers 57

Consumers

43% 57%

Point of Sale Display

Make up your mind from before

This shows that a smaller percentage of respondents knew what they want from before and are brand loyal. The impact of Point of sale activation/promotions attracts more consumers so its not just about the brand and the offering but also proper marketing & visibility.

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11. What ice-cream brand do you usually purchase?

Walls Consumers 57

Hico 10

Igloo 25

Yummy 13

Gourmet 35

Consumers

25% 41%

9%

18%

7%

Walls

Hico

Igloo

Yummy

Gourmet

Wall's has overwhelming market penetration in Karachi & Lahore. Gourmets presence in Lahore is quite evident particularly in the in-home offering. The brand split of in-home pack consumption in Lahore is as follows:

88%

12%

Wall's

Gourmet

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12. What do you look for in an ice-cream?

Milk-based Consumers 21
15%

Hard

Soft scooping

Intrusions 12

Multi-flavours 15

Consumers 10 42

Milk-based

21%

Hard

12% 10%

Soft scooping

Intrusions

42%

Multi-flavours

In terms of what qualities are most important in an ice cream, the two main qualities are that it should be milk based, and consumers generally prefer soft ice cream. Looking at the Walls current in-home range, Walls Selection lacks both these qualities i.e. most of their brands are not milk based, or for soft scooping.

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13. What factors do you take into consideration when purchasing ice-cream? (Please rank accordingly as 1 being last preferred, 4 being neutral and 7 being most preferred.)

Price Quality of Ice-cream Offering Packaging Brand Name

Least ------------------Preference----------------- Most 1 2 3 4 5 6 7 8 6 8 32 18 12 16 0 2 0 0 8 10 80 12 4 14 40 10 14 6 10 4 12 34 14 18 8 2 6 8 24 18 18 24

90 80 70 60 50 40 30 20 10 0 Price Quality of Icecream 1 2 Offering 3 4 5 6 7 Packaging Brand Name

This shows that the ice-cream quality is the most important factor that the consumers consider before purchasing ice-cream. You can also see that brand name is relative important followed by pricing, offering and packaging at the same consideration set. However it is important to realize that quality is irrespective to the rest of the factors i.e. a lower priced brand with a relatively poor quality may be perceived as a good quality. So Walls must define its price according to the quality they are offering.

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14. What kind of promotions appeal to you as a consumer?

Tie- in promotions with other products 6

Buy 1 get 1 free Consumers 42

Discount offers 26

Extra Offerings 44

Consumers
5%

36% 37%

22% Buy 1 get 1 free Discount offers Extra Offerings Tie- in promotions w ith other products

The above chart clearly shows that consumers prefer more quantity for what theyre paying. They are requiring more value for money.

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15. Which type of promotional advertisements catch your eye?

Posters in outlet stores 15

Billboards Consumers 35

TVC 55

Radio 2

Newspaper/Magazine 8

Consumers
7% 2% 13% 30%

48%

Billboards

TVC

Posters in outlet stores

Radio

New spaper/Magazine

A well shaped message aired on TV would be a right choice. To refresh the consumers memory start of summer is the right time to go on air. Consumers are attracted towards TV commercials and Walls is focused more towards it and rightly in line with its products.

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The rest of the questions investigate deeper into Walls: 16. Please rank the characteristics of Walls ice-cream according to your preference: (1 being least preferred and 5 being most preferred)

Taste Flavours Product Range Packaging Price Purchasing Convenience

Least --------------------Preference-----------------Most 1 2 3 4 5 2 8 4 26 60 0 2 26 30 42 6 16 26 30 22 10 26 24 24 16 6 12 26 38 18 6 10 14 20 50

Characteristics of Walls
70 60 50 40 30 20 10 0 Taste Flavours Product Range 1 2 3 Packaging 4 5 Price Purchasing Convenience

As we already know that ice-cream quality is very important to consumers, Walls is addressing well to this which is evident in the chart above as the scores show. More than half of the IC consumers regard taste as the prime factor for its purchase.

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17. Are you fond of trying new varieties in Walls product range?
Consumers Yes 78 No 22

Consumers

22%
Yes No

78%

18. How satisfied are you with the product range of Walls?
High-----------------------------Extent---------------------Low Consumers 1 16 2 54 3 20 4 10 5 0

Consumers
0%

10%

16%

20%

54%
1 2 3 4 5

Consumers are not satisfied with the current Walls offerings and hope to see more innovation. However Walls is constantly coming up with innovations, but what we they need to look into is that are they addressing to the consumers needs or is there an issue with their marketing. 19. Over the 5-years, have you noticed any change in the product quality of Walls? 39

20. What improvements would you like to make in Walls ice-cream?

More new flavours Consumers 35 Healthier Ice-cream 30 Lower pricing 40 Improvements in the quality of ice -cream 18 Others 10

Consumers

More new flavours Healthier Icecream Low er pricing

8% 14% 26%

29%

23%

Improvements in the quality of ice -cream Others

Wall's has maintained their product quality over the years, as a majority of the respondents claimed that they had no issues with Wall's quality. However, from the following questions, what Wall's lacks is coming up with innovations in line with consumers' preferences and needs, and a cheaper range to compete against the many relatively smaller players that are mostly only popular because of their pricing which is affordable to the masses.

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CHAPTER 5

CLOSING UP

SUMMARY OF FINDINGS CONCLUSION RECOMMENDATIONS

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SUMMARY OF THE FINDINGS

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CONCLUSION
Ice cream brings enjoyment and delight to millions of people all around the world. However, consumers are many and varied and some demand low priced products while others are ready to pay a premium for quality and innovation which has lead to sporadic growth of ice cream manufacturers. The industry is extensive, though highly fragmented, as large number of players in this industry are small sized companies or individuals and are largely concentrated in the unorganized segment. Over and above Ice Cream is functionally defined as: A product that has a very good combination of all its ingredients (mainly milk, sugar, cream). The key attribute is that it is cold hence refreshes a lot. A product that will definitely uplift ones image since the product is unique and special. The housewives however are more keen in describing its nutritional value coming from the main ingredient Milk The emotional definition of ice- cream is: A product that highly responds on the values of excitement, engagement, entertainment, happiness and pleasure Ice cream is treated very differently from other conventional desserts mainly because of the product nature (light, good taste, convenient, cold) and certain image values (uplifted social image/profile, excitement) Walls has been the market leader in Pakistan ever since it was launched, with acquiring Polka which was, then, the market leader. Throughout the years, no major players have entered the market, until last year when a bakery in Lahore, by the name Gourmet, launched their own ice cream range focusing mainly on the in-home market. Coming in with very low priced offerings, and cashing in on the nutritional aspect since its dairy based, Gourmet grew drastically and took a lot of share from Walls in Lahore.

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Since Lahore is the major contributor in Ice Cream consumption (being almost twice of Karachi) Walls started losing share on a National level. With Engro in the pipeline, and expected to launch this year, Walls faces a lot of challenges for even maintaining their market share. This study helps us understand the consumption habits of Ice Cream consumers, aligned with consumer expectations and preferences with respect to ice cream, in order to identify the issues and opportunities that Walls should consider. From this study, along with an understanding from my initial interview with the Consumer & Market insights manager at Unilever, it is quite evident that the major share loss for Walls is coming from the in-home range. Walls is not growing at par with market, hence lost 6% points market share from 80% to 74% (in 2008). Tubs and Carton contributed 3% points each to its loss, mainly in Lahore. Igloo and Hico were able to grow almost at par with market, hence maintained their market shares.

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RECOMMENDATIONS
From the above data it has been analyzed that sales are not a concern for Walls rather its market share which is being eroded due to local competitors. This is because consumers are requiring more value for money & innovations in the ice-cream products. Following are a number of recommendations that may help Walls to keep hold of their market share. They should launch a special low priced range, just for Lahore, to compete against gourmet. They should come up with special promotions like offering more quantity for the same prices e.g. buy 2 get 1 free offer. Better innovations, more aligned with the consumer's expectations. They should re-look at their innovation pipeline, and carry out extensive consumer understanding studies to first understand their consumer better. Once they know what their consumers want, then plan out innovations to meet their consumer's requirements.

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BIBLIOGRAPHY

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APPENDIX

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