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PROJECT NAME

IMPLEMENTATION OF STRATEGIES ON TWO BRANDS

NAME OF A SUPERVISOR

SIR TAHIR MUMTAZ

GROUP MEMBERS

• Saad Shamim

• Naqeeb Ullah

• M.Tatheer

• M.Waqas

• Umair Ahmad

• Hamid Raza

• Yasir Ghafoor

SYNOPSIS Product selected Introduction of Unilever Product information of Cornatto Product information of Magnum SWOT Financial Analysis Strategies of Marketing Suggestions

PRODUCT SELECTED FOR THE PROJECT

• CORNATTO

• MAGNUM

PRODUCT & COMPANY

• CORNATTO

BRAND OF UNILEVER

• MAGNUM

BRAND OF UNILEVER

Mission of Unilever

To add vitality to life – shows how clearly the business understands 21st century-consumers and their lives.

Introduction of Unilever

Formed in 1930 Unilever is a multi-national corporation, formed

of British and Dutch parentage• That owns many of the world's consumer

product brandsfoodsbeveragescleaning agents personal care products

• Paul Polman is Group Chief Executive.

Unilever's main competitors

• Procter & Gamble

• Nestlé

• Kraft Foods

• Mars

• Reckitt Benckiser

• Henkel

OPRATIONS

• Unilever owns more than 400 brands• The company focuses is on "billion-dollar brands“

13 brands which each achieve annual sales in excess of €1 billion

Unilever's top 25 brands account for more than 70% of sales.

• The brands fall almost entirely into two categoriesFood and BeveragesHome and Personal Care.

Global employment at Unilever 2000-2008

• Black represents employment numbers in Europe

• Light grey represents the Americas

• Dark grey represents Asia, Africa, and Middle East.

Introducing Unilever Pakistan Ltd

• Debut in 1948 In Pakistan, • Two affiliated companies viz

Unilever PakistanUnilever Pakistan Foods.

• Employees around 1,500 people on their payroll and many thousands indirectly.

• Fulfilling the daily needs of 164 million people

• The company had a turnover of Rs. 23.3 bn  (Euro 309 mn) 

Cornatto’s Products

• Cornetto Love Chocolate • Cornetto Strawberry • Cornetto Classico • Cornetto Mint • Cornetto Love Chocolate Multipack • Cornetto Strawberry Multipack • Cornetto Classico Multipack • Cornetto Mini

Cornetto cones were first produced in 1976 By an Italian ice-cream manufacturer, SpicaFirst started to began to in the market of Europe.

Cornatto’s History

Magnum

• Celebrate your pleasure with the tempting Magnum range – combining thick, cracking chocolate and smooth delicious ice cream

Magnum products• Magnum

• Magnum Classic

• Magnum White

• Magnum Ecuador

• Magnum Temptation Caramel & Almond

• Magnum Temptation Chocolate

• Magnum Impulse

• Magnum Mini pack

Magnum History

• Magnum was first launched in the UK in 1987 and in Ireland in 1990

• Since then, delicious flavours such as Double Chocolate (1996), Double Caramel (2000), Yoghurt Fresh and Magnum Intense (2002). Magnum Temptation (2009)

• Last year over 31 million Magnum Mini's were devoured across the UK

• 'Win a Luxury Break Every Day’ promotion used enough competition sticks to stretch from London to Paris and back 10 times

S.W.O.T. AnalysisStrength• Recognized as a global company• Strong brand portfolio• Strong relationship with retailers• Economies of scale

Weaknesses• Not connecting with customers• Inefficient management of brands• Reduced spending for R & D• Inability to maximize acquisition

Opportunities• Changing consumer preferences• Increasing need for healthy

products

Threats• Decrease in revenues• Strong competition• Increasing store brands• Tougher business climate• Exchange rates

2008 REPORT

Unilever employed 174,000 people

worldwide revenue of €40.5 billion

Operating income €7.16 billion

Net income €5.28 billion.

Financial Analysis € million €

million

2008 2007• Turnover 14 471 13 418 • Operating profit 1 701 1 711• Net profit margin 12.4% 9.7%• Operating margin 17.7% 13.1%• Net increase in cash &

cash equivalents 2 156 244• EPS – total 1.79 1.35 • Return On Investment Capital 15.7% 12.7%

Market Strategies

• Market Scope Strategy

• Deals with coverage of market

• Single entry strategy

• Multi market strategy

• Total market strategy

Total Market Strategy

• Serves entire market by selling different products

• Total market strategy is risky, and highly rewarding as well

• Strong financial position

PRODUCT STRATEGIES

• The two brands are implementing standardized product strategy.

• Extending their product lines by adding different new flavored variants.

• Both brands are focusing on quality strategy because both brands are striving for excellence.

Pricing Factors

Factors of pricing

• Selecting the price objectives

• Determined the demand

• Estimate cost

• Analyze competitors costs

Pricing objectives

• Profit oriented goals

• Sales oriented goals

Pricing Strategies

• Uniform delivered pricing strategy

• Freight absorption strategy

• Cash price strategy

• Value pricing strategy

DISTRIBUTION STRATEGIES

• Cornetto and Magnum have competitive advantage through extensive distribution.

• Both brands are implementing pull strategy. • Pakistan is divided into 3 major sections• North (Islamabad, Peshawar & Northern areas)• Central ( Lahore & central Punjab )• South (Sindh & Baluchistan )

DISTRIBUTION CHANNEL

• Uses indirect distribution channel

PRODUCER

DISTRIBUTOR

RETAILER

CUSTOMER

CHANNEL SUPPORT

• Both brands give incentives and discounts to the local distributors and retailers like deep freezer , discounts on bulk purchase.

• Giving compensation to retailers for stocking .• Postponing bills or extending credit (dating)• Payment for retailer advertising or promotion.

Promotional Strategies

Promotional strategies of both the brands are consistent. both spent a lot on advertising and consumer promotion to build up consumer demand.

Promotional Objectives

• Promotional objectives of both brands are as follows:

• Inform

• Persuade

• Remind

Promotional Tools

Advertisement

Both uses print and electronic media for advertisement and for that purpose it follows AIDA model.

AwarenessInterestDesireActionThe mediums used by both for advertisement are:

– TV– Billboards – Newspapers– Magazines– Banners – Pamphlets– Stands in shopSponsorships of pop stars, actors, models– Event arrangements– Bus stop board ads– Fun carnival carried out in different parks such as Racecourse Parks– Shop boards

Sales promotion

Both have going a number of sales promotion activities like the:

Cycling systemIts purpose is for awareness

Discount couponsBoth launches very low price product for the purpose of both market expansion

and sales promotion.

Discount and offeringBoth offer 5% discount in off-season.

It provides Retailers

Free freezers to retailersInvestment on each retailer: Rs 22000

Free freezers maintenance

Public relationsFor strengthen itself in relationship market both is not only going for customer satisfaction but also stressing upon building strong public

relationsIt provides Customers to:

Price discounts Quantity discounts

It provides Street vendors to:

Free TrikesTo strength its relationship with the various public and customers both

sponsors an Art exhibition.

Suggestions In my opinion there are some flaws in their implemented

strategiesActual Position

• Charging High prices----- unaffordable for Children & low Class.

• Extensive demand of two brands in Market.

• Both brands have dominance in the market

Suggestions• Do mass production & cuts the

advertising cost as they have already high brand equity.

• An opportunity of launch diet ice cream for the patient of diabetes which will be a profitable segment in the coming future.

• They Should implement Cooperative advertising strategy which costs will be splitted b/w the retailer and manufacturer which will be beneficial for the customers.

• They should charge less than the competitors (OMORE S& YUMMY ice cream) relief to the customers especially children.