Introduction of Company

The area in which we are interested is food and beverages. Unilever is one of the largest companies of this field and is a subsidiary of Proctor and Gamble (P&G). Unilever has many consumer products. Some of its popular brands are Surf Excel, Dove, Lux, Knorr, Brooke Bond, Lipton, Fair & Lovely, WALLS, Dalda, and Sun Silk etc. LBPL started its operations in 1948. And presently its headquarters is at Avari Towers Karachi. LBPL was incorporated as an independent Unilever company in 1955. Lever brothers have a sizzling market share of 60% in Pakistan. And their field of business includes Tea, Detergents, Personal hygiene, Edible fats, Consumer products and Ice cream. It is offering total of 46 products in Pakistan out of which 26 are profitable and during the year 2002 Walls was added as the 27th profitable
product. LBPL is committed to provide its customers the quality products and company has never compromised on quality no matter what the cost. This maintenance of consistent quality has given LBPL a competitive edge.

The Food industry can first of all be segmented into two groups ready made food and unready food which is found in the restaurants. In ready made food we have the segment of cool desserts industry which is named as ice-cream industry. The walls Ice-cream factory is highly technological and they are using state of the art machinery which makes it as the leading ice -cream producer of Pakistan

Unilever has been operating in Pakistan for 60 years. Over this period, our brands in Home Care, Personal Care, Foods, Beverages and Ice Cream have become market leaders. Millions of people use them daily because they conform to the highest standards and provide value for money. As a multinational multi local company, we are committed to adding vitality to consumers and the community in a responsible and locally appropriate manner.

Wall's is the brand name of Unilever's Heartbrand ice cream business, used originally in the United Kingdom and also currently (2006) in China, India, Indonesia, Jordan, Lebanon, Malaysia, Maldives, Pakistan, Qatar, Saudi Arabia, Singapore, Sri Lanka, Thailand, United Arab Emirates and Vietnam.

yWhen

Thomas Wall took over the family meat and pie business in London in 1905, poor summer sales

encouraged him to think of other alternatives. Legend has it a young clerk suggested the idea of making ice cream in 1913, but the idea was shelved after World War I in 1918.

yMacfisheries

bought walls in 1920 who then sold Walls to Lever Brothers in 1922. In 1922, Walls ice

cream started production. A love affair with ice cream had begun.

yBy

the 1950s, wartime rationing produced a big appetite for ice cream sales reached 46 million by

1959 and Walls opened a large ice cream factory in Gloucester. Supermarkets began to stock ice creams in addition to small high street shops. Market research in the 1970s showed that practically everyone loved ice cream.

Today Walls divides its manufacturing in two parts: The In Home and Out of Home ranges. The In Home range consists of Walls famous family tubs and bricks and our Multipacks. The Out of Home range is a Walls success story and includes brands like Magnum, Cornetto and Feast. The kids range is specially formulated for little taste buds with favourites such as Rocket, Twister, Spin, and Moo.and shows an understanding of childrens nutritional needs, such as the Big Milk which contains 70% milk.

Ingredients
Ice cream is made from ice (water), milk, fat sugar and natural flavours and colours. All of these ingredients are necessary for you in your diet to lead an active lifestyle. From these ingredients you get protein that helps build body tissue, carbohydra tes and fats which give you energy and essential vitamins and minerals like calcium that help to strengthen bones and teeth.

yIce

cream is the only food you eat frozen and offers a unique sensory experience

yThe

average number of licks to finish off a single ice pop is 50

yEvery

year all around the world, Walls sells enough Magnum ice creams around the world four and a half

times.

yLaunched

in 1995 Cornetto is the number one selling hand-held cone in Pakistan today.

In 1993 Lever Brothers f ormulated a team to search for new business potential in Pakistan. The team concluded that there is a lot of potential in ice-cream market in Pakistan and Lever Brother should enter the ice-cream market without any hesitation and so they decided to launch WALLS Ice cream in Pakistan. WALLS is an SBU of Lever Brother--the biggest ice cream manufacturers in the world. and second to it is Nestle The WALLS wanted to enter Pakistani Market through acquisition strategy; it wanted to acquire Polka to minimize t he time it needed to capture the market. But initially Polka demanded very high price for their company. So WALLS established an ice cream factory in Pakistan within eleven months which is a record time. And in February 1995, WALLS launched with twelve products. After the launching of WALLS it gave tremendous services and Polka loosed its market share by a huge extent. At this time Polka tried to sell itself to WALLS but now WALLS had done all the hard work which they initially did not want to do by ac quiring Polka, so they were not ready to buy Polka. But Polka spread a rumor that Nestle is coming through Polka which obviously WALLS did not want, so they purchased Polka in 1997. This acquisition made WALLS an unchallenged market Leader and it also emerged as the Impulse brand with new level of excellence in take-home or desert ice cream.

WALLS was launched firstly in Lahore in 1995 and later year in Karachi and Islamabad. In 1996, it was launched in Faisalabad and in 1997 it was launched in Multan, Quetta, Hyderabad, Peshawar and Sukhar as well. After the acquisition, Polka became a brand under WALLS. The strong of Polka were continued and weaker were dropped.

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. In 2003, we announced the next step in building the world's most powerful ice cream brand, re-launching the Heart as symbol of the serious fun of 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. WALLS is an international brand of ice cream and is one of the most profitable units of Unilever. WALLS has its 38 plants a ll over the world. And has a share of 22% of international ice cream market. In Pakistan it is 35 -40% of total ice cream market (both organized and unorganized sectors combined).

GOODS CLASSIFICATION
WALLS icecream comes under the foods and beverages part of the Unilever chain. WALLS ice creams are consumer, nondurable, convenience, packaged goods.WALLS has a variety of products, ranging from low priced desserts like Rainbow to premium priced desserts like Cornetto and Magnum.

Raw materials: Contract Suppliers Production Unit: One Unit at Manga Mandi Production Capacity: 10,000 Liters / day

PERISHIBILITY

yRequired Temp: -18C.

yLife time (Out of freezer) : 25 min.

yExpiry: 10 months.

PACKING

yPackaging: Multiple packaging

ySmall packs: Sticks Cones Cups

yTake home packs: liter packs 1 liter packs Tubs

yBulk packs: 10 liter packs

Wall's Classic tubs Wall's cartons Wall's Cornetto

Wall's Magnum Wall's Moo Wall's Rocket

Wall's Spin Wall's Twister

GROWTH RATE
The ice cream industry itself is growing with a reasonable rate, but for WALLS the growth rate is quite encouraging.The major reason for pravailing this dream like growth rate is the radical growth seen in Cornetto in recent years. WALLS growth rate for recent year was 12%.

Other information.
yWalls

has a 28% share in the ice cream market; 25% of which comes from the take home range and 64%

of the impulse range the highest in the entire industry.

yIce

cream is made from milk, fat and sugar. These are cooled as they are mixed, then whipped to create

a light, airy texture. Flavourings, fruit or chocolate are added then the whole mixture is frozen again before packaging.

Market Segmentation
CHARACTERISTICS OF THE MARKET
Few of the characteristics upon which the market has been segmented are discussed below:

GEOGRAPHIC

WALLS have segmented its market in four sections in Pakistan such as South, which is Karachi to Sadqabad and than Central from Sadqabad to Gujrawala and than North from Gujrawala to upside country.

 DEMOGRAPHIC

Demographic variables of WALLS target market are mostly age and income based. WALLS have created many sorts of ice creams to cater all age groups. The most popular ice creams amongst kids are Paddle pop, in teenagers Cornetto and Magnum, commercial packs are popular in families as whole. WALLS cater both females and males in the society. If we consider the income segmentation, WALLS is targeting upper, middle, and lower middle income levels.

 PSYCHOGRAPHIC

The psychographic segmenting is done on the basis of the taste and health conscious consumer. WALLS targeted its market by creating an image of high quality and hygienic products. WALLS was for anyone, any where and at any time, this very wel l explains psychographic characteristic of WALLS consumer. Also relating fun and Shugal with ice cream helps depicting the life style of its potential user.

 BEHAVIORAL

The behavioral segmentation is done on three different variables that tend to define a partic ular behavior or attitude of a consumer. These are:

yOccasions regular occasions, special occasions

yUsage rate thand hai to kya hua!!

yBenefits quality, presentation, taste The segmentation of WALLS is:

yImpulse Item Segmentation

no

Segmentation on Income Classes

Upper class

2 3

Upper middle class Lower middle class

Sr. # 1 2 3

Segmentation on Age Adults Teenagers Kids

yFamily Item Segmentation.

1 2 3

Upper class Upper Middle class Lower-Middle Class

WALLS divided its items in to category of individual and family consumption. And the individual consumption is that of impulse products and usually fort an ice cream for family consumption one decides what flavor to buy, what quantity to buy and for ho w much to buy. On these bases WALLS has divided the market of impulse items on the bases of income classes and demographics.

SEGMENTATION ON THE BASIS OF INCOME CLASSES: 1. UPPER CLASS

It includes the elite or higher income class who can afford even the most expensive items without much botheration. They consume ice-cream more on the basis of taste and preference rather than money.

2. UPPER-MIDDLE CLASS

This class includes people with moderate kind of income. You can neither put them in free hand category nor very less purchasing power category. These people normally take the taste and affordability both into consideration.

3. LOWER-MIDDLE CLASS

These are the people with very little inc ome to spend. These people usually prefer the low price and economy than taste and preferences.

SEGMENTATION ON BASIS OF AGE: 1. ADULTS

Adults will mostly prefer the quality product which not only fulfill their taste and preference requirements but also reflects their personality. The adults are normally ready to pay for a product which fulfills their physical and psychological needs because they are the income generators.

2. TEENAGERS

Teenagers dont have any specific taste and preferences. New products and new ideas always attract them. But they have a limited product and they have to maintain their expenditure with in that.

3. KIDS

Kids normally do not have a great know-how of the taste rather they are p sychologically attracted towards the product. They are not concerned with the taste of ice cream and they just want ice cream. As they are dependent and cannot spend money themselves, so their parents mostly just provide them with an economical ice cream, not any specialized ice cream as it is not demanded.

FAMILY ITEM SEGMENTS 1. UPPERCLASS:

Rich people can afford anything not price conscious and just go for good quality

2. MIDDLECLASS

Mostly sticks to the traditional products and are price conscious and care for there taste and preferences to some extent.

3. LOW MIDDLE CLASS

Generally look for an ice cream which is low priced.

Distribution
One of the competitive advantages of WALLS is its availability, which is ensured by extensive distribution. The distribution of ice cream is different from other products. To keep it in a good form it must be chilled at appropriate temperature. For this purpose deep freezers are used, which are provided by the company. However, the running costs are to be paid by the retailer. For this purpose walls gives a margin of 18% to its retailers \distributors, which is distributed over entire channel. Pakistan is divided in three major sections. These are as follows:

1) North

(Islamabad, Peshawar and Northern areas)

2) Central

(Lahore and Central Punjab)

3) South

(Sindh and Baluchistan)

DISTRIBUTION CHANNEL
Distribution channel consists of all the people and organizations, which are involved, in the physical distribution of goods. Selection of proper distribution channel is very important aspect because if the channel is managed efficiently. Companies can save high costs and thus generate profits. The cooperation of channel members is also of vital importance. Distribution is making the product available but this availability should ensure that product must be:

yAt right place

yAt right time

yIn right condition If there is any deficiency in any of these basic elements of distribution, the future of product would be uncertain. Distribu tion is such an activity, which could decide the fate of the product.

WALLS has a Hybrid Distribution System. It reaches different customers through different systems. WALLS is using two types of distribution channels, both are indirect channels.

PRODUCER DISTRIBUTOR RETAILER CONSUMER

This is commonly used, in which the WALLS factory send the products to the local distributors who supply the products to the retailer in the required quantity. The retailer then sells it to the customer. The specialty and effectiveness of this system is excellent.

The reason for such an excellent distribution system is the distribution policy. If a retailer wants to sell an ice cream, the investment he needs to do is as:

Security for Retailer the freezers

Investment on Board for advertisement Ice cream products

Total investment required

Others WALLS

15000 Nil

12-15,000 12-15,000

3000 Nil

30,000 15,000

Thats why most retailers are attracted to the WALLS. Another important thing which needs to be discussed about the distribution is that during this distribution channel, the standard temperature of the cold chain is maintained.

PRODUCER STOCK POINTER DEALER RETAILER (CYCLES) CONSUMER

The second type of system was more a short term distribution system which has just for the introduction stage to actually made the product reach every where and the system was more of creating awareness than actual retailing purpose. But the cycle distribution system yielded excellent results in terms of sales and creating awareness about the products. Now the cycl e contributes a big percentage of shares in t he overall sale of the company. So this has now become a permanent distribution channel of WALLS.

One of the major reasons of early success and clean sweep given by walls is its availability, which is ensured through extensive distribution. There is not even a single city in the country where one cannot find a walls freezer or hear the sweet music of the trike (tricycles), which acts as a direct marketing for it . Thus, WALLS has always tried its best to ensure the availability of the product as close to t he customers as possible and WALLS has been very successful in that.

DISTRIBUTION STRATEGIES
There are two main distribution strategies, which WALLS has very effectively used.

1. In first strategy include incentives like free deep freezers, discounts on bulk purchases.

2. Advertising campaign that reminds and persuades customers to buy ice cream supports 2nd strategy, which is facilitated by price offs, which are frequently offered by the company.

PROMOTION
Our aim is to spark the taste and feeling of summer in everyones day. Life is there to be enjoyed and we are the fun part of vitality. We constantly provide new products and experiences that excite the senses and inspire people of all ages to 'taste the fun side of life---------Promotion Statement.

For any company to capture the market of its own wish and target, promotion plays the most important role in fulfilling the q uest for market share. Although the process of promotion is very complex and can be looked in detail:

Ice Cream makes you happy its official!

Walls carried out scientific research which shows that ice cream actually makes you happy. The study was carried out using FMRI brain scanners, and showed that eating Walls had an immediate effect on the part of the brain that is activat ed when someone is really enjoying themselves the please areas.

So we now have scientific evidence to prove what we all already knew, that ice cream really does make you happy!

Promotional Strategies
Promotional strategies of WALLs ice-cream is consistent. It uses Pull strategy for promoting its product because WALLs spent a lot on advertising and consumer promotion to build up consumer demand.

Producer

.WALLs

Consumer

Retailer and Wholesaler

Demand Demand

Pull Strategy

Promotional Budget
One of the hardest marketing decisions facing a company is how much to spend on promotion. How des a company decide on its promotion budget:

WALLs ice-cream uses Objective-and-Task Method to set its budget for promotional activities. This budgeting method entails (1) defining specific promotion objectives, (2) determining the tasks needed to achieve these objectives, and (3) estimating the cost of performing these tasks. The sum of these costs is the proposed promotion budget.

Walls determine its specific tasks to achieve its objectives which are defined by the companys management, to achieve these objectives WALLs estimates the costs of different tasks, which are to be done to promote its products.

1. Promotional Objectives
Promotional objectives of the WALLs ice-cream are as follows

Inform

Persuade

Remind

Companies inform the people when they dont know about the product, persuasion takes place when people already know about the product and company forces them to buy the product and when companies is selling enough quantities of a product it reminds consumers about the product to keep the sales at the same level in future.

Promotion is important for firms in many ways. It helps to establish image of product, which the man ufacture wants to portray, and also the personality of product. It informs the people, creates awareness and helps in positioning and repositioning of t he product. With promotional tools company can tell about the availability of product, company can justi fy prices or can communicate the features of the product. WALLS is not promoting its products individually because WALLS believe that the high quality it is providing through its products are more than sufficient to prove its identity. We believe that no w there is a need for WALLS to promote its products separately as international competition is coming as well.

2. Tasks
Selection of different promotional tools advertising and media schedules and what types of message are delivered to the targe t audience.

WALLs uses Advertising and Sales Promotion.

3. Cost/Budget
Estimated budget of WALLs of promotion is Rs.2.5 million (est.)

Promotional Tools 1. ADVERTISEMENT

WALLS is creating awareness about its new products such as supper Cornetto, Carte DOR for this purpose it is using huge signboards on the major square of the cities and more importantly both the print and electronic media for advertisement and for that it is following AIDA model.

yAwareness The WALLS uses print and electronic media plus the signboards initially just to create awareness and knowledge about its new product as these days it is giving A lot of adds of both of its newly launched producs Super Cornetto.

yInterest: As the public gets awareness of the produces of WALLS the next step is to create interest among the target buyers about the product which is again done through advertisement.

yDesire: The WALLS create curiosity among the customers and transform that curiosity into the desire of the product.

yAction Finally to make the customer purchase the product this is the final thing to be done in model. The WALLS follows a sequentia l pattern through which it strengthens its newly launched products.

Or to put in another way, the concept can be very well understood with the help of the above given building blocks:

Inform

Persuade

Remind

Companies inform the people when they dont know about the product, persuasion takes place when people already know about the product and company forces them to buy the product and when companies is selling enough quantities of a product it reminds consumers about the product to keep the sales at the same level in future.

Promotion is important for firms in many ways. It helps to establish image of product, which the manufacture wants to portray , and also the personality of product. It informs the people, creates awareness and helps in positioning and repositioning of the product. With promotional tools company can tell about the availability of product, company can justify prices or can communicate the features of the product. WALLS is not promoting its p roducts individually because WALLS believe that the high quality it is providing through its products are more than sufficient to prove its identity. We believe that now there i s a need for WALLS to promote its products separately as international compet ition is coming as well.

The theme of advertisement varies with the product image and positioning. But walls follow the same theme internationally. Th e advertisements run on TV are made in foreign countries. The objectives of advertising are the three basi c ones which include informing, persuading and reminding about different brands of walls.

WALLS have used all sorts of mediums of mass communication and one to one bases. The mediums used in WALLS promotional activities are:

yTV

yBillboards

yNews papers

yMagazines

yRadio

yBanners

yPamphlets

yStands in shops

yShop boards

ySponsorships of pop stars, actors, models

yEvent arrangements

yBus Stop Board Ads

yFun carnival carried out in different parks such as Racecourse Park

2. SALES PROMOTION
WALLS has been going a number of sales promotion activities like the:

1- Cycling System:

WALLS started its cycling system for awareness but after that its task was modified into doing sales promotions for the company. And also cycling system has proved excellent in terms of sales and promotion.

2- Discount Coupons:

WALLS launches very low price products for the purpose of both market expansion and sales promotion. Like Solo for Rs.2 and Liter pack for Rs.45 was also to boost sales.

3- Discounts and Offerings:

Walls offered 5% discount in off-season.

3. Public Relations
For strengthening itself in relationship markets WALLS is not only going for customer satisfaction but also stressing upon building strong public relations. For example, under the umbrella of Unilever, WALLS has been trying to part in charity activities and also to stay in front in national and religion events. For instance events like Valentines Day. WALLS uses such occasions to not only promote its sales but also to build strong public relationships through sponsoring events on this day. Moreover, it has recently started organizing colorful Fun Carnivals too, which is totally a family affair. This is just an instance WALLS tries to gain maximum of such opportunities.

1. Customers

Price discounts

Quantity discounts

2. Distributors

Shares 50% of the distributors' expenses

Off season discounts: 5%

3. Retailers

Free freezers to retailers

Investment on each retailer: Rs. 22,000

Free freezers maintenance

4. Street Vendors

Free Trikes

To strengthen its relationship with the various public and customers WALLs sponsors an Art exibition.

Walls Paddlepop sponsors Unilever International Art Project 2007

15/11/2007 : Paddle Pop a Unilever brand - hosted the national awards ceremony of the Seventh Annual Unilever International Art Project for Schools today.

The ceremony marks the culmination of a two day exhibition in which art pieces created by children across Pakistan were showcased. Over 250 pieces were short listed from amongst the 150 schools that participated this year.

The ceremony was well attended by teachers, students and key stakeholders. Hameed Haroon, CEO Dawn Group was the chief guest at the ceremony.

The Unilever International Schools Art Project, first launched in 2001, encourages young people from around the world to create a painting, a sculpture or even a small installation on a given theme. Last year thousands of young artists from count ries around the world including Colombia, China, Sri Lanka, Pakistan, Russia, Turkey, Zimbabwe, USA and the UK created works of art around the theme Reality & Dreams, inspired by Carsten Hller's TEST SITE, the seventh annual commission in The Unilever Series at the Tate Modern.

This is the seventh year that Unilever is undertaking this project which involves schools across Pakistan and encourages creativity and innovation amongst school children between the ages of 5 to eighteen. Paddle Pop, the iconic Wall's treat fo r young consumers, is the ideal co-partner for the Art project. The Paddle Pop brand encourages children to indulge in fun and adventurous activities and to express themselves through adventure and revel in the thrill they get from rising to the challe nge.

In an effort to challenge the youth to think imaginatively about what motivates them and what they are passionate about, the theme for this years Art Project was - "Beauty & Difference worlds apart". Artist, Doris Salcedo said; "I am very pleased that this year's theme for The Unilever International Schools Art Project, which will encourage children and students from many different parts of the world to engage with some of the most pressing issues of today".Centered on the theme, the artworks from Pakistan were diverse and detailed and clearly showed the time and effort put in by the students. During the course of the project Paddle Pop brand ambassadors visited the participating schools and offered a selection of flavours to the students.

Each category had four winners, First, Second, Third and Runners-up. This year the schools saw a difference in the annual Art Project process. In order to more fully involve the schools and elevate the project to a more interactive level, regional jud ging was conducted by the schools themselves. Mrs. Naiza Khan (Artist VASL) and Marjorie Hussain (Art critic) conducted the final judging.

The three winning pieces will be sent and judged at the Tate Modern Art Gallery in London. The chosen piece will be exhibited at the museum.

Unilever Pakistan is committed to integrating business as a part of society, and the Company actively engages in initiatives that improve the quality of life, particularly of the lesser privileged members of our society. The main thrust in the Comp anys social initiatives have been primarily in the areas of education, health care and water sustainability.

Message Execution Style

cornetto girl, where are you
The cornetto girl campaign has finally come to an end. Even though feel that its effects would continue to spread it is pretty safe now to bring to light whatever conspired in the campaign.

The message of this compaign is related to slice of life of teenagers.

As per the objectives we went about solving two key challenges.

yEnhance the connection between teenage infatuation and cornetto

yBreak through the clutter without spending a fortune on media The idea was to go ahead with a concept which would create talkability on its own and enhance the media ROI. The concept centered on a pseudo reality mystery based on the life the cornetto consumer.

a guy sees a girl in his college for the first time eating a cornetto and instantly falls in love with her. The girl d isappears a couple of days later before the guy has had a chance to make an impression on her. The guy, in desperation goes on to develop a whole ad campaign to track her down, bringing the whole country in on the search

This concept was then put on relevant media. From a 12 episode drama serial to creating hype on blogs and social networks to virally generated smss/emails we virtually exhausted all youth centric media. Even radio was used to insert ideas, theori es, hoaxes about story through RJ chit chat. Seeded content generated to destabilize the theories in the drama helped keep the mystery alive through spoof videos.

Some of the ideas that never saw the light of day, was a specialized documentary, t -shirts and bumper stickers, sarmad appearing on begum nawazish alis show to clear out his position and sarmads car seen on the roads of the 3 metros with cool art work to help him find his cornetto girl. We even thought of having a PR leg to the campaign as well with articles in imag es and the magazine talking about the cornetto girl phenomenon.

All in all, this was a huge win for contact plus as we showed that well -established brands can come up with new ideas to reinvigorate their brand presence

Marketing Department (sales force)

WALLs divide the Lahore Market in two major Zones and each zone is further divide into four different areas. Each area has one zone (sale) officer and each sale officer has 10-15 different sectors to serve (supply) the market, which means under research zonal manager has 10-15 sales men and each sales man has one van.

Hierarchy of Marketing Department (sales force)

National/Country marketing (sales) manager

Zonal sales manager

Area/territory sales manager

Sales officer