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TABLE OF CONTENTS
CHAPTER 1 BACKGROUND & STATEMENT OF THE PROBLEM.....................1
1.1 INTRODUCTION TO THE TOPIC.............................................................2
1.2 INTRODUCTION TO UNILEVER..............................................................3
1.3 ABOUT WALL’S ICE-CREAM....................................................................5
1.4 STATEMENT OF THE PROBLEM.............................................................7
1.5 SIGNIFICANCE OF THE STUDY...............................................................7
1.6 SCOPE..............................................................................................................8
1.7 DELIMITATIONS..........................................................................................8
1.8 DEFINITION OF TERMS.............................................................................9
CHAPTER 2 RESEARCH METHODOLOGY & PROCEDURES...........................10
2.1 RESEARCH DESIGN...................................................................................11
2.2 RESPONDENTS OF THE STUDY.............................................................12
2.3 RESEARCH INSTRUMENTS.....................................................................12
2.4 SOURCES OF DATA....................................................................................12
2.5 TREATMENT OF THE DATA/INFORMATION/ ANALYSIS..............12
CHAPTER 3 REVIEW OF RELATED LITERATURE AND STUDIES ................13
3.1 FOREIGN LITERATURE...........................................................................14
3.2 LOCAL LITERATURE................................................................................17
3.3 GAPS TO BE BRIDGED BY THE STUDY...............................................19
3.4 AREAS FOR FURTHER STUDIES............................................................19
CHAPTER 4 PRESENTATION ANALYSIS...............................................................20
CHAPTER 5 CLOSING UP...........................................................................................39
5.1 SUMMARY OF THE FINDINGS...............................................................40
5.2 CONCLUSION..............................................................................................41
5.3 RECOMMENDATIONS..............................................................................43
BIBLIOGRAPHY............................................................................................................44
APPENDIX.......................................................................................................................45
CHAPTER 1
BACKGROUND OF THE SUBJECT/TOPIC & STATEMENT OF THE PROBLEM
1. INTRODUCTION TO THE TOPIC
2. INTRODUCTION TO UNILEVER
3. ABOUT WALL’S ICE-CREAM
4. STATEMENT OF THE PROBLEM
5. SIGNIFICANCE OF THE STUDY
6. SCOPE
7. DELIMITATIONS
8. DEFINITION OF TERMS
1
1.1 INTRODUCTION TO THE TOPIC
The topic of my thesis is “Identifying the challenges faced by Unilever Pakistan in
marketing Wall’s Ice-Cream & developing strategies to resolve the problems.” There has
been a lot of changes in the minds and eyes of the consumer about Wall’s 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 Wall’s have gone up in the previous
year and some new local players have entered due to which Wall’s 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. Wall’s in-home category is
positioned as the family tradition of Pakistan.
2
1.2 INTRODUCTION TO UNILEVER
Unilever Pakistan Limited, a subsidiary of the Unilever Group is operating in Pakistan
since 1948. The Company’s 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, Lipton’s Yellow Label, Taaza and Richbru, Brook Bond’s
Supreme and Kenya Mixture etc. which are common household names in Pakistan.
While continuously exploring expansion opportunities in various fields, focus remains on
the Company’s core business of Detergents and Foods & Beverages. Alongside these are
the results of the Company’s dynamic approach to meet the needs of the continuously
changing market environment.
The Company’s 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 Lipton’s 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.
3
In 1995, the Company established a new factory near Lahore to manufacture the Wall’s
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
Unilever’s 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 Wall’s ice-cream business, which was a
green field exercise.
4
1.3 ABOUT WALL’S 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
Unilever’s 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 Wall’s is two simple words – MARKET LEADERSHIP. Wall’s
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 WALL’S and POLKA merger they together constitute market leadership.
The company’s objectives are cleared and well defined. The company wants Wall’s to be
uniquely positioned as a top quality ice cream that comes to the customer’s doorstep.
Initially, it was only the ‘Gola Ganda Walla’s’ 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 WALL’S a household item.
5
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 WALL’S and POLKA merger, the marketing for POLKA is being done along
the same lines as WALL’S (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 Unilever’s ice cream
products with a combination of economy and premium pricing.
The range of Wall’s ice-creams are distributed in three categories; impulse, in-home and
out-home. Impulse range constitute of choc-bars, cornetto, magnum, sundaes, cup ice-
creams I.e. those for individuals and don’t 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; Wall’s selection, tub ice-cream,
and Wall’s deserts. The out-home range are Wall’s kiosks placed at different localities in
the city or Wall’s 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 WALL’S 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 company’s strategies. As we know that
the climate of Pakistan is very hot so people love to eat ice cream especially the teenage.
Wall’s 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.
6
1.4 STATEMENT OF THE PROBLEM
“Identifying the challenges faced by Unilever in marketing Wall’s Ice-cream &
developing strategies to resolve the problems.”
To study the Wall’s in-home range using their market share against new local entrants.
The current challenges faced by Wall’s 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.
1.5 SIGNIFICANCE OF THE STUDY
Ice-cream is one of the emerging markets in Pakistan and has been making progress
during the past decade. Wall’s 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 Wall’s 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 Wall’s 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.
7
1.6 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.
1.7 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 company’s information and biasness in the
information provided by the respondents are some of other delimitations.
8
1.8 DEFINITION OF TERMS
1. Ice-Cream: This is a frozen dessert product containing at least 10% milk-fat and at-
least 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 brand’s 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.
9
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
10
2.1 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 Wall’s in-
home range. This research will also give a better understanding of the market for ice-
cream.
Study Setting:
Variable will not be controlled nor manipulated; no artificial environment will be created
for this study.
Research Road Map:
11
Research Design
Key Findings
Branded Ice Cream
Background &
Gour
2.2 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
2.3 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.
2.4 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.
2.5 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.
12
CHAPTER 3
REVIEW OF RELATED LITERATUREAND STUDIES
1. FOREIGN LITERATURE
2. LOCAL LITERATURE
3. GAPS TO BE BRIDGED BY THIS STUDY
4. AREAS FOR FURTHER STUDIES
13
3.1 FOREIGN LITERATURE
Wall's Ice Cream Monopoly Proves Hard To Melt AwayBy Nigel Cope, City Editor
It may seem odd that Nestlé, 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 Nestlé 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.
14
Birds Eye Wall's has since launched its own "whippy" style ice cream from machines in
newsagents and corner shops.
With Nestlé'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 Nestlé
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.
15
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.
16
3.2LOCAL LITERATURE
Walls Paki Pop Gets a Little CoolerBy Aamir Iqbal Dhakan
The latest marketing campaign by wall’s features some of the top acts in the Pakistani
pop music scene, including, Noori, Junoon and Strings. Moreover, the wall’s logo can be
seen featured in a number of programs on Indus music. With this latest campaign, Wall’s
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.
Wall’s was introduced in the Pakistani market in 1995 by Unilever. It was an instant
success due to their exceptional marketing communications and the product’s 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 Wall’s merged with Polka. This
tradition of product innovation has continued throughout the years with Wall’s
consolidating its market position with new additions and variants in its addition of new
concessionaires and satellite towns.
Traditionally, the target market of Wall’s has been, more or less, similar to the target
market of Pepsi. Wall’s 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 Wall’s have distinctly
displayed an orientation towards this target market.
The previous campaigns of Wall’s 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.
17
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, Wall’s 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 Wall’s
was much needed to refresh and energize the brand which faces increasing competition
from Igloo, Yummy and Hico.
18
3.3GAPS 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 ice-
cream 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.
3.4AREAS 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
19
CHAPTER 4
PRESENTATION ANALYSIS
20
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 LahoreConsumers 100 40
21
Consumers
71%
29%
Karachi Lahore
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 NoConsumers 127 100
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.
22
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 NoConsumers 68 32
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.
23
Consumers
32%
68%
Yes
No
3. How frequently do you consume ice-cream?
This idea behind asking this question is to determine the consumption pattern of ice-
cream by sample irrespective of the brand.
Weekly Monthly Quarterly Others
Consumers 50 34 12 4
Consumers
50%
34%
12%4%
Weekly
Monthly
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.
24
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 ice-cream consumers.
4. Name your 3 favourite ice-cream flavours?
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.
25
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?
Although Walls’ and Cornetto are leading but there is gap in usage and awareness.
In Lahore Gourmet is giving tough competition to Wall’s with 75% usage as compared to
92% of Wall’s. While in Karachi Igloo has 61% as compared to Wall’s 97%.
26
7. Who decides what flavour to get?
Yourself Siblings Spouse Children
Consumers 74 10 14 8
Consumers
70%
9%
13%
8%Yourself
Siblings
Spouse
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.
27
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.
More than half of our respondents usually purchase 1 Liter packs or 1½ 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.
1/2 Liter 1 Liter 1 1/2 Liter 2 Liter
Consumers 14 60 28 4
28
Consumers
13%
57%
26%
4%1/2 Liter
1 Liter
1 1/2 Liter
2 Liter
9. If you’re 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 Rs. 150 - 200 Rs. 200 - 250 Rs. 250 - Above
Consumers 36 50 8 6
Consumers
36%
50%
8%6% Rs. 100 - 150
Rs. 150 - 200
Rs. 200 - 250
Rs. 250 - Above
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.
29
10. Do you prefer choosing your ice cream from a:
Point of Sale Display
Make up your mind from before
Consumers 57 43
Consumers
57%
43%
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 it’s not just about the brand and the offering but also proper marketing &
visibility.
30
11. What ice-cream brand do you usually purchase?
Walls Hico Igloo Yummy Gourmet
Consumers 57 10 25 13 35
Wall's has overwhelming market penetration in Karachi & Lahore. Gourmet’s 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:
31
Consumers
41%
7%18%
9%
25%
Walls Hico Igloo Yummy Gourmet
12. What do you look for in an ice-cream?
Milk-based Hard Soft scooping Intrusions Multi-flavours
Consumers 21 10 42 12 15
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 Wall’s current in-home range, Wall’s Selection lacks both these qualities i.e. most of
their brands are not milk based, or for soft scooping.
32
Consumers
21%
10%
42%
12%
15%
Milk-based
Hard
Soft scooping
Intrusions
Multi-f lavours
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.)
Least ------------------Preference----------------- Most 1 2 3 4 5 6 7Price 8 6 8 32 18 12 16Quality of Ice-cream 0 2 0 0 8 10 80Offering 12 4 14 40 10 14 6Packaging 10 4 12 34 14 18 8Brand Name 2 6 8 24 18 18 24
0
10
20
30
40
50
60
70
80
90
Price Quality of Ice-cream
Offering Packaging Brand Name
1 2 3 4 5 6 7
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
Wall’s 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?
Buy 1 get 1 free Discount offers Extra OfferingsTie- in promotions
with other products
Consumers 42 26 44 6
Consumers
36%
22%
37%
5%
Buy 1 get 1 freeDiscount offersExtra OfferingsTie- in promotions w ith other products
The above chart clearly shows that consumers prefer more quantity for what they’re
paying. They are requiring more value for money.
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15. Which type of promotional advertisements catch your eye?
Billboards TVCPosters in outlet
storesRadio Newspaper/Magazine
Consumers 35 55 15 2 8
Consumers
30%
48%
13%
2%
7%
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 consumer’s memory start of summer is the right time to go on air. Consumers are attracted towards TV commercials and Wall’s is focused more towards it and rightly in line with its products.
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The rest of the questions investigate deeper into Wall’s:
16. Please rank the characteristics of Walls ice-cream according to your preference:(1 being least preferred and 5 being most preferred)
Least --------------------Preference-----------------Most 1 2 3 4 5Taste 2 8 4 26 60Flavours 0 2 26 30 42Product Range 6 16 26 30 22Packaging 10 26 24 24 16Price 6 12 26 38 18Purchasing Convenience
6 10 14 20 50
Characteristics of Walls
0
10
20
30
40
50
60
70
Taste Flavours Product Range Packaging Price PurchasingConvenience
1 2 3 4 5
As we already know that ice-cream quality is very important to consumers, Wall’s 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?
Yes NoConsumers 78 22
Consumers
78%
22%
Yes
No
18. How satisfied are you with the product range of Walls?
High-----------------------------Extent---------------------Low
1 2 3 4 5Consumers 16 54 20 10 0
Consumers
16%
54%
20%
10% 0%
1 2 3 4 5
Consumers are not satisfied with the current Wall’s offerings and hope to see more innovation. However Wall’s 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?
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20. What improvements would you like to make in Walls ice-cream?
More new flavours
Healthier Ice-cream
Lower pricing
Improvements in the quality of ice -cream
Others
Consumers 35 30 40 18 10
Consumers
26%
23%29%
14%
8%
More newflavours
Healthier Ice-cream
Low er pricing
Improvementsin the qualityof 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
1. SUMMARY OF FINDINGS
2. CONCLUSION
3. RECOMMENDATIONS
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5.1 SUMMARY OF THE FINDINGS
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5.2 CONCLUSIONIce 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 one’s 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)
Wall’s 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 it’s dairy
based, Gourmet grew drastically and took a lot of share from Wall’s in Lahore.
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Since Lahore is the major contributor in Ice Cream consumption (being almost twice of
Karachi) Wall’s started losing share on a National level.
With Engro in the pipeline, and expected to launch this year, Wall’s 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
Wall’s 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 Wall’s is coming from the in-home range. Wall’s 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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5.3 RECOMMENDATIONS
From the above data it has been analyzed that sales are not a concern for Wall’s 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 Wall’s 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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