Marketing Report

Submitted to: Miss Mahrukh Nadeem

Product:

Report By: Areeba Majid Dua Kaleem Mahnoor Anwar Muhammad Zain Ali Shah

Acknowledgment:

Firstly, we are thankful to our ALLAH almighty for giving us courage at each and every step of our lives. And especially in making this report.

We would like to thanks our teacher Miss Mahrukh Nadeem for clarifying our marketing concepts and guiding us in each and every step for making this report.

We would like to express our deepest appreciation to all those who provide us the possibility to complete this report.

I would like to this the authority of COMMECS Institute of Business and Emerging Sciences (CIBES) for providing us the good environment and facilities to complete this report.

We are also thankful to our parents who help us a lot in finalizing this report within the limited time.

TABLE OF CONTENT

Pg No.

Acknowledgement 01

Executive summary 03

Company’s Profile 04

Product Mix 05

SWOT analysis 06

Brand profile & strengths 07

Competitive Analysis 08

Marketing Research 09

        Objective 09

        Methodology 09

        Conclusion 09-10

Marketing Strategy 11

        Brand Name 11

        Flavors 11

Point of Parity 11

Point of difference 11

Unique Selling Proposition (USP) 11

Target Market Strategy: 12        Psychographic 12        Demographic 12        Geographic 12        Behavior 12

Executive Summary:

Magnum has launched in firstly in UK in 1989 and in IRELAND in 1990, making it the first widely available handheld indulged ice cream in both countries The all-new Magnum Ice Cream is indulgence like no other, with velvety, smooth and creamy ice cream coated with a thick layer of cracking Belgian chocolate. The premium quality ice cream is combined with rich Belgian Chocolate in an ice cream bar that is so indulgent and pleasurable; it makes you feel like royalty, making it the ultimate sensorial experience from the very first bite. With a delectable range that includes the original pinnacle of pleasure, Magnum Classic, the chunky Magnum Almond and now the decadent Magnum Truffle; Magnum makes every bite pleasurable!

What did we study?

We studied Magnum which is a strong brand of Unilever.

Why did we study Magnum?

We wanted to analyze the ice-cream market and try to find ways to decrease seasonality of Magnum by trying to increase sales in winter.

What did we find in our research?

In our research we found that young adults love eating Magnum, and their satisfaction from Magnum is medium.

COMPANY’S PROFILE:

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, WALL’S, 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 Wall’s 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’ readymade food and unready food which is found in the restaurants. In readymade 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.

Product Mix:

Number of products being produced=58 Width of walls=6

Product Line Length:

Paddle Pop=12 Cornetto=7 Creamy delights=1 Local Jewels=10 Carte D’OR=8 Magnum=5

SWOT Analysis:

Strength:

This company is financially strong. Walls have wide distribution, due to establish distribution channels. It’s a high quality brand. It has good image in customer’s mind. They choose aggressive promotion schemes.

Weakness:

Pure milk is not used in walls ice cream. There is no variation in taste.

Opportunities:

There is no diet ice cream in market, which walls can cover because they are more establish than other’s.

Walls prove itself to be quality oriented product and maintain good taste and standard. Than it would be able to create a strong position in Pakistan for a long period of time.

Threats:

If there any announces any multinational company for introducing ice cream than there is a great threat for walls because till now that there doesn’t exist any tough competitor to walls.

Omore is also new comer, but rapidly increase in their market share. It is a big threat of walls.

Brand Profile:

The ice cream today known as Magnum was launched in Sweden in January 1989 as an up market ice cream for the existing Nogger brand, and it was originally manufactured by Frisco in Denmark. The original Magnum (later re-branded as Magnum Classic) consisted of a thick bar of vanilla ice cream on a stick, with real chocolate coating. As there was no real chocolate which could stand the temperature of −40 degrees Celsius, an ad hoc chocolate was developed by Belgian Callebaut. The original Magnum had a weight of 86 grams and a volume of 120 ml).

The all-new Magnum Ice Cream is indulgence like no other, with velvety, smooth and creamy ice cream coated with a thick layer of cracking Belgian chocolate. The premium quality ice cream is combined with rich Belgian Chocolate in an ice cream bar that is so indulgent and pleasurable; it makes you feel like royalty, making it the ultimate sensorial experience from the very first bite. With a delectable range that includes the original pinnacle of pleasure, Magnum Classic, the chunky Magnum Almond and now the decadent Magnum Truffle; Magnum makes every bite pleasurable.

Strengths:

Recognized as a global company. Strong brand portfolio. Strong relationship with retailers.

Competitive Analysis:

Major competitors are: Omore Igloo Basic ice-cream parlors

Marketing Research

Objective:The main purpose of the survey that we conducted was to find out what

people think about the Brand of Magnum and whether they are satisfied with it or not. We also intended to know whether this brand needs any improvement.

Methodology:For our survey we made an effective questionnaire to gather data. The

questionnaire consisted of mostly closed-ended questions, therefore making our research quantitative. We selected respondents of various age groups from CIBES. As we were not able to do a Census, we selected a random sample from the population for data collection. We therefore selected 25 respondents randomly to take part in our survey.

Conclusion:After conducting our survey of 25 respondents, we came to a conclusion

that given the choices Magnum, Cornetto, Igloo and Omore, 48% of respondents preferred Cornetto and 36% of respondents preferred Magnum whereas only 12% chose Omore. None preferred Igloo. Out of 25, 6 respondents rated the quality of Magnum as excellent, 10 respondents rated good, leaving 9 respondents to rate the quality as Moderate. When asked whether the price for Magnum is justifiable, 12 respondents chose yes while the remaining 13 chose no. Most of the respondents who decided that the price for Magnum is justifiable thought that the quality and taste of Magnum is what allow the price to be so high. Most of the remaining respondents thought that the taste, quality and image of Magnum don’t match its high price. Out of 25 respondents, 18 claim to consume Magnum sometimes whereas only 2 consume it daily. We also asked about the advertisements of Magnum: only 7 respondents claimed to not remember the advertisements of Magnum. Of those who did claim to remember (18), there were a greater number of respondents who rated a 4 (on a scale of 1-5) when asked about the effectiveness of Magnum advertisements. Also when asked to rate their satisfaction of Magnum on a scale of 1-5, 22 respondents in total rated either 3 or 4.

Respondents were also asked their suggestions on improving the brand of Magnum. Many of the respondents suggested that the quality of Magnum is very good however the price of Magnum should be revised so that everyone can afford it whenever they like. By lowering the price the sales and popularity of Magnum can rise even more. Along with that, some respondents also suggested

that there should be new flavors introduced and that the advertisements should be more attracting.

Overall, we concluded that although Magnum may not be the favorite ice cream of many people, it still is considered to be very unique in its taste and quality and if the price of Magnum is lowered then many people will consider in purchasing it more often.

Marketing Strategy

New Product Idea:

Brand name: Mag Cakes

Mag Cakes consists of a thick layer of rich creamy ice cream with mini chocolate chips sandwiched between two biscuits.

Flavors:

Creamy milk chocolate Ice cream White chocolate Ice cream

Point of Parity:The similarity with this brand and other relative brands is that Mag Cakes is also an ice cream.

Point of Difference:The point of difference in Mag Cakes is the unique white chocolate ice cream which is not found in any other ice cream brands.

Unique Selling Proposition (USP):

“Indulge yourself in a world full of creamy ice cream!”

Target Market Strategy:For the new product launch we have decided to use Segmented Marketing. This is because everyone does not like very sugary treats so Mass marketing would not be appropriate.

Segmentation will be on the basis of:

Geographic- Country: Pakistan

Demographic- Age: 10-45Income: Rs 20,000-250,000 (and above)

Psychographic- Social Class: Upper lowers-UpperLifestyle: Achievers and Strivers

Behavior- Occasion: Regular Benefits: QualityUser Rates: Medium User