Project Report

Ques: write Pricing strategy of a food product, also mention market analysis and SWOT analysis.

Product:-

Introduction:- Kwality walls was launched in 1995 as Hindustan Unilever Ltd. Master brand for

ice cream. With in-depth knowledge of the Indian market & Unilever state-of-the-art technology. Kwality walls has been delivering superior quality product under its international brands.

Hindustan Unilever started by merging 6 existing ice cream brands in the country & then launched

kwality walls range of ice-cream & frozen desserts.

The kwality company is dedicated to the notion that people need to eat healthy, better tasting foods. And by making our ice cream ,kwality uses only the fresh & delicious milk. Company’s mission is to add vitality to life. We meet everyday needs to nutritions, hygiene & personal core that help the people feel good, look good & get more out of life.

Small scale growth & franchising strategy: The mission of the company( to achieve profitability, increase value to shareholders & create career opportunities) is implemented through kwality walls strategy for small-scale business growth. It has maximized profitability by initially starting small & slowly building an ice-cream business over time.Ultimately, the success at the small –scale required the company to shift its corporate strategy toward the establishment of several franchised “ scoop shop” throughout the nations. As of 2008,there was approximately 598 scoop shop in India.

Brand loyalty: Developing brand loyalty is another strategic move to strengthen competitive advantage. Kwality walls has made substantial effort to gain a favorable reputation & image with buyers through its frequent promotional campaigns (i.e. free cone Days) donation to social causes & the use of eco friendly products. This strategy has proven successful regarding buyer perception of cooperate reputability ranked kwality

walls first in the “Social responsibility” category.

Pricing Strategy: Our pricing strategy is to introduce the new products in the market at lower prices. So as to create the huge demand in the market & to compete with other competitors .As we come up in the demand we will increase our prices & will provide more efficient affordable & tastier ice-creams.

Cost cutting Strategy: Kwality walls eliminated several stock keeping units, rationalized manufacturing infrastructure & brought it focus down to six mainline cities only, where 60% of the ice cream market exists.

SWOT analysis:

Strength: 1) Adequate availability of raw materials.

2) High consumer retention rate.

3) Reasonable price- it provide a competitive advantage to the company.

4) Natural product.

5) Brand loyalty among the general consumer.

Weakness: 1) Seasonal availability of food which required as raw material.

2) Late entry into the market.

3) Financial resources is very limited.

4) Lack of proper marketing network.

Opportunity: 1) Participation with a growing industry.

2) Wellness awareness amongst consumer.

3) Common wealth games Delhi 2010 , which may leads to good sales.

4) Proper utilization of available resources to decrease the per unit cost.

5) Growing demand for milk & milk product.

Threats: 1) Cut throat competition- A number of hard core competitors are present in the market (like Amul , Metro, Verka , Nestle, Motherdairy, etc). It is concern for the company as there are wide array of brand of competitors.

2) Global warming: By which normal temperature increases gradually, its leads to problem that product become melt very quickly when it served.

3) Scarcity of raw material .

Market analysis: Ice cream is a reasonable proxy for the universal food product. Its appeal is neither gender nor age specific. It satisfies hunger, tastes good, makes the consumer feel good, and its fun to eat.

Consumers purchase ice cream for a variety of reasons. On festive or special occasions it represents a special treat. Super premium ice cream, especially a foreign brand, is akin to a status symbol that allows the purchaser to feel good about what he/she has accomplished in life. When packaged in individual servings it is a convenient way to respond to impulses and provides instant gratification.

In many economically developed societies the concept of a comfort food has taken root and grown. Comfort foods are those foods that one consumes because it makes the consumer feel good. Culturally, the concept of comfort foods is a learned behavior. For example, in the US when a child is hurt often times the parent will give the child a food product, generally a sweet, to ease the discomfort. In western societies the number one comfort food for both men and women is ice cream. After ice cream comfort foods become more gender specific; in the US chocolate is number two for women while pizza is number two for men. The concept of comfort foods in India is very much in an embryonic stage. Economically, for many, food is still in short supply and nutrition is far more important than feeling good about what is consumed. In India there are several cultural dimensions that act as inhibitors to the concept of comfort foods whereas in the US these same dimensions contribute to the idea.

Size & growth:

USD mn ---------------------------- - +12%-------------

2005 2006 2007 2008 2009

– Worth USD 209 mn in 2008

– Growing at 12% p.a. in 2005-2008

– Forecast to increase by 15% to reach USD 240 mn in 2009.

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