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PROJECT NAMEIMPLEMENTATION 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 UnileverTo 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 brands foods beverages cleaning agents personal care products Paul Polman is Group Chief Executive.

Unilever's main competitors Procter & Gamble Nestl 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 in excess of 1 billion Unilever's top 25 brands account for than 70% of sales. sales more

The brands fall almost entirely into two categories Food and Beverages Home 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 Pakistan Unilever 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)

Cornattos Products Cornetto Love Chocolate Cornetto Strawberry Cornetto Classico Cornetto Mint Cornetto Love Chocolate Multipack Cornetto Strawberry Multipack Cornetto Classico Multipack Cornetto Mini

Cornattos HistoryCornetto cones were first produced in 1976 By an Italian ice-cream manufacturer, Spica First started to began to in the market of Europe.

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 2008 14 471 1 701 12.4% 17.7% million 2007 13 418 1 711 9.7% 13.1% 244 1.35 12.7%

Turnover Operating profit Net profit margin Operating margincash equivalents

Net increase in cash &

2 156 EPS total 1.79 Return On Investment Capital 15.7%

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 FactorsFactors 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 AdvertisementBoth uses print and electronic media for advertisement and for that purpose it follows AIDA model. Awareness Interest Desire Action The mediums used by both for advertisement are: TV Billboards Newspapers Magazines Banners Pamphlets Stands in shop Sponsorships 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 system Its purpose is for awareness Discount coupons Both launches very low price product for the purpose of both market expansion and sales promotion. Discount and offering Both offer 5% discount in off-season. It provides Retailers Free freezers to retailers Investment on each retailer: Rs 22000 Free freezers maintenance

Public relations For strengthen itself in relationship market both is not only going for customer satisfaction but also stressing upon building strong public relations It provides Customers to: Price discounts Quantity discounts It provides Street vendors to: Free Trikes To strength its relationship with the various public and customers both sponsors an Art exhibition.

SuggestionsIn my opinion there are some flaws in their implemented strategies

Actual 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.