yummy project

8/2/2019 Yummy Project.

1/37


2/37

NATIONAL TEXTILE UNIVERSITY

DEPARTMENT OF MANAGEMENT SCIENCES

SUBMITTED TO:

MR. FAROOQ JAMAL

SUBMITTED BY:

NAME REG #. SIGNATURES

HASSAN YAQOOB (10-NTU-5026) __________________

M. BADAR SHAHAB (10-NTU-5241) __________________

M. ALI ANJUM (10-NTU-5026) __________________

ABAID-UR-REHMAN (10-NTU-5026) __________________

MUHAMMAD MATEEN (10-NTU-5026) __________________

MBA 2NDSEMESTER SECTION A


3/37

DATED: 28-06-2011

This Project Is Submitted

In Partial Fulfillment Of

Requirements For The

Repositioning Of Yummy

Ice Cream Company.


4/37

In the name of ALLAH, the most beneficent, the most merciful.

Its the body of ALLAH that we breathing on this earth despite of our

thousands of sins and mistakes.

We do 100 good things.

Nobody remember!

We do 1 thing wrong.

Nobody forgets!

Its ALLAH, who gives, gives & forgives

Its human, who gets, gets & forgets


5/37

Two people see from the same window, one saw moon and other saw mud.

We are very thankful to ALLMIGHTY ALLAH who gives us so much

courage and bless.

To our loving parents whose prayers make us to complete this project.

To our Guide and Instructor who have given us the knowledge and help

in preparation and designing of this project.


6/37

All praise to ALMIGHTY ALLAH omnipotent and omniscient and the

HOLY PROPHET MUHAMMAD (PBUH) who is the beacon light for

mankind forever.

We are very thankful to ALLMIGHTY ALLAH and our respected

Instructor Mr. Farooq Jamal who gives us so much learning, not only in

the related subject but also helps us in the other subjects too. We think

that our research work would not be possible without the help and

guidance of our respected Instructor Mr. Farooq Jamal.


7/37

Table of Contents

CURRENT MARKET SEGMENTATION ....................................................... 1

1. Geographic segmentation ............................................................ 1

2. Demographic Segmentation ......................................................... 2

Age Groups ......................................................................................... 3

Kids ................................................................................................. 3

Teenagers ........................................................................................ 4

Adults .............................................................................................. 4

Gender Segmentation ......................................................................... 4

Income Segmentation ......................................................................... 5

3. Psychographic Segmentation ....................................................... 5

4. Behavioral Segmentation ............................................................. 6

COMPANY NAME .................................................................................... 7

Yummy Ice Cream Company ................................................................... 7

Departments of the Company ............................................................. 7

PRODUCT REVIEW ................................................................................... 8

Packaging ............................................................................................ 8

CORE BENEFITS ..................................................................................... 12

INGREDIENTS ........................................................................................ 12

PRODUCT DEVELOPMENT PROCESS (YUMMY ICE CREAM) ................... 13

PRODUCT LIFE CYCLE ............................................................................ 15

COMPETITOR REVIEW ........................................................................... 16

OUR KEY COMPETITORS ........................................................................ 16

COMPETITOR`S PROFILE ....................................................................... 17


8/37

DISTRIBUTION REVIEW ......................................................................... 18

MARKETING CHANNELS ........................................................................ 19

CHANNEL LEVELS .................................................................................. 24

DISTRIBUTION SITUATION ..................................................................... 24

WAREHOUSING ..................................................................................... 25

SWOT ANALYSIS .................................................................................... 25

Strengths: .......................................................................................... 25

Weaknesses: ..................................................................................... 26

Opportunities: ................................................................................... 26

Threats: ............................................................................................. 26

Suggestions for Weaknesses and Threats: ........................................ 27


9/37


10/37

Page 1 of37

CURRENT MARKET SEGMENTATION

Current marketing segmentation of Yummy Ice Cream is as under:

1. Geographic Segmentation

2. Demographic Segmentation

3. Psychographic Segmentation

4. Behavioral Segmentation

1.Geographic segmentationIn geographic segmentation the company divided the each city into

different segments according to Areas, States, Regions, and Markets.

Yummy Ice Cream is targeting as geographic segmentation of the

Pakistan. We are targeting now the main cities of provinces as:


11/37

Page 2 of37

Capital Territory (Islamabad)

Punjab (Lahore, Faisalabad, Multan)

Sindh (Karachi, Hyderabad)

NWFP (Peshawar)Baluchistan (Quetta)

Target Segments Geographical

2. Demographic SegmentationIn Demographic segmentation we will divide people according to their

ages and life cycle. We will divide our customers regarding their ages as

children, teenagers, twenty plus, thirty plus, and so on more than fifty

years old.


12/37

Page 3 of37

But when we think about the children, they are more interested to eat

ice cream of different flavors.

Age Groups

Target Segment Age Group

Kids

Kids normally do not have a great know-how of the taste rather theyare psychologically attracted towards the product. They are not

concerned with the taste of ice cream they just want the ice cream. As

they are dependent and cannot spend money themselves, so their


13/37

Page 4 of37

parents mostly just provide them with an economical ice cream, not

any specialized ice cream as it is not demanded.

Teenagers

Teenagers dont have any specific taste and preferences. New products

and new ideas always attract them. But they are limited about the

products generally and they have to maintain their expenditures as

well.

Adults

Adults mostly prefer the quality products, which not only fulfill their

tastes and preferences requirements but also reflect their personality.The adults are normally ready to pay for products which fulfill their

physical and psychological needs because they are the income

generators.

Gender Segmentation

We need not to make the search on gender segmentation because

Yummy Ice Cream is for both male and female.


14/37

Page 5 of37

Income Segmentation

We can easily make the division according to the income of people.

Through the income segmentation, we can divide the people into

different levels of groups regarding their income on monthly bases.

High Income Group Less Target Segment

Middle Income Group Target Segment

Small Income Group Less Target Segment

3.Psychographic Segmentation

The psychographic segmenting is done on the basis of the taste and

health conscious consumer. Yummy is targeted its market by creating


15/37

Page 6 of37

an image of high quality and hygienic products. Yummy was for

anyone, anywhere and at anytime.

4.Behavioral Segmentation

Behavioral segmentation divides buyers into groups, based on their

Knowledge, Attitude, Uses, or Responses about the products. We also

believe like many marketers that behavior variables are the beststarting point for building the best market segmentation.

To make the best marketing structure we can set a reasonable price

which is suitable for all types of social classes in Pakistan.

By using focus strategies in which they just target the segment of

sufficient size, not crucial to success of major competitors and they are

not attempting to specialize in the same target segment.


16/37

Page 7 of37

COMPANY NAME

Yummy Ice Cream Company

Departments of the CompanyDepartment of Finance

Department of Accounts

Department of Administration / Human Resources

Department of Marketing and Sales

Department of Research & Development / Food Technology

Shipping Department

Engineering Department


17/37

Page 8 of37

PRODUCT REVIEW

Required Temperature: Below -18C.

Life time (Out of freezer): 25 min.

Expiry: 12 months.

Packaging

Packaging: Multiple packaging


18/37

Page 9 of37


19/37

Page 10 of37


20/37

Page 11 of37


21/37

Page 12 of37

CORE BENEFITS

Core benefits of the Yummy Ice Cream Company are pure milk & butter

used to make it and also the great flavors, less fat and more fruits.

The new ingredients are called 'Ice Structuring Protein' (ISP). This

protein allows us to make ice cream and ice bar which are lower in fat,

sugar and calories and at the same time include more fruits. We can

also now make ice creams and ice bar which cannot melt easily which is

a great thing for small children and for hot countries.

INGREDIENTS

Ice cream is made from ice (water), milk, butter, fat sugar, milk powder,

glucose stabilizers, food grad color, artificial flavors, emulsifier, and

natural flavors & colors. All of these ingredients are necessary for you in

your diet to lead an active lifestyle. From these ingredients you get

protein that helps to build body tissues, carbohydrates and fats which

give you energy and essential vitamins and minerals like calcium that

help to strengthen bones and teeth.


22/37

Page 13 of37

PRODUCT DEVELOPMENT PROCESS

(YUMMY ICE CREAM)

Idea Generation

Company has the full time Research & Development Department,

which recommends new products planning and organizing.

Company also does copy its competitors products. They also consult

with their employees, customers about their needs and distributions.

Product Analysis

Idea

Analysis

DevelopmentTest Market

New Product


23/37

Page 14 of37

After the conceptual test of ice cream products they analyze

the products regarding their cost, sales, demand & supply and

profits.

Development

Company develops a prototype or a sample test to check the

taste of ice cream within the company. Then they make market

strategy for the new ice cream products. It estimates the

production level and technical production feasibility and finally

needed government approvals for launching the products. InPakistan government institutes which approve the products is

PCSIR (Pakistan Council of Science and Industrial Research)

Test Marketing

After the introduction of products and marketing program to

determine the reaction of the potential customer in marketsituation, company chooses Lahore city to test the market of

his products.

New Product

Company builds inventory and distributes them, then makes

the advertisement of new products through channels andbrushers.


24/37

Page 15 of37

PRODUCT LIFE CYCLE

1. Introductory Stage

2. Growth Stage3. Maturity Stage

4. Declining Stage

Here we introduce new

flavors and new

products.


25/37

Page 16 of37

COMPETITOR REVIEW

Hico Ice Cream was the first ice company in Pakistan. The brand Hico is

well established since 1958. Hico has a fully automatic Ice Cream

manufacturing facility, and has a production capacity of producing

more than 4.5 million-litter dairy ice cream a year. It is marketed in

major cities of Punjab. Today, the brand Hico is considered being the

favourite in its hometown Lahore. Our company's strong distribution

and marketing network guarantees consumer satisfaction and brand

loyalty.

Walls introduced in Pakistan in 1997-98. The product line consists from

lollies to ice creams. This includes Cornetto, Callipo, Max, Kulfis, Top

Ten Choc Bars, Feast, Milky Way and etc.

OUR KEY COMPETITORS

In ice cream market industry there are many companies which produce

the ice cream but all of them are not our key competitors. It is because

they do not produce the ice cream of our level. Now our key

competitors are Walls & o more.


26/37

Page 17 of37

COMPETITOR`S PROFILE

Walls introduced in Pakistan in 1997-98. The product line consists from

lollies to ice creams. This includes Cornetto, Callipo, Max, Kulfis, Top

Ten Choc Bars, Feast, Milky Way and etc.

Unilever committed its own resources to acquire 'Polka' and

consolidate the ice cream market for Lever Brothers Pakistan. Low

gearing and reputation as a multinational blue chip give Lever ready

access to capital at good terms to fund growth


27/37

Page 18 of37

DISTRIBUTION REVIEW

Distribution means to distribute the product through different

channels. Extension is in the nature of every business. We are changing

the strategies day by day due to development of distribution channels.

These days all the well dressed organizations adopted the distribution

channels.

MANUFACTURING

DISTRIBUTOR

RETAILER

CONSUMER


28/37

Page 19 of37

MARKETING CHANNELS

These are known as the set of independent organizations involved in

the process of making a product or service available for the use or

consumption. These channels perform the work of moving the goods

from Manufacturer to the final consumer. It is the only way through

which we can provide the goods to the final consumer at the right time

and right place according to the needs, wants, and demands of general

public. Mostly these channels perform the functions like.They collect the information about the potential and current

customers, competitors, and other acts, facts, forces of the marketing

environment.

They develop disseminate persuasive communication to stimulate the

purchasing.

They place an order to the company.

They provide best place for storage and movement of physical

products.

They evaluate and clarify the customer`s needs, wants, and demands

properly.

In conclusion to all above actions we can say that they perform their

self as a platform on which all the work activities are handled between

the customers and manufacturers.


29/37

Page 20 of37

TV, Billboards, News papers, Magazines, Radio, Banners, Pamphlets,

Stands in shops, Shop boards, Sponsorships of pop stars, actors,

models, Event arrangements, Bus Stop Board Ads, Fun carnival carried

out in different parks such as Racecourse Park.

We choose the way for promotion of Yummy:

TV

Banners

Pamphlets

Stands in shops

Shop boards

Bus Stop Board Ads


30/37

Page 21 of37

ADVERTISEMENT

We are creating awareness about its new products such as Choc Dip,

Chocolate Feast, for this purpose it is using huge signboards on the

major square of the cities and more importantly both the print andelectronic media for advertisement.

Awareness

We use print and electronic media plus the signboards initially just to

create awareness and knowledge in the customer mind about its new

product as these days it is giving a lot of ads of both of its newly

launched products.

Interest

As the public gets awareness of the produces of Yummy. The next step

is to create interest among the target buyers about the product which

is again done through advertisement.

Desire

We create curiosity among the customers and transform that curiosity

into the desire of the product.

Action

Finally to make the customer purchase the product this is the final thing

to be done in model. We follow a sequential pattern through which it

strengthens its newly launched products.


31/37

Page 22 of37

Companies inform the people when they dont know about the

product, persuasion takes place when people already know about theproduct 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 awarenessand 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.

Inform

Persuade

Remind


32/37

Page 23 of37

SALES PROMOTION

We are going for a number of sales promotion activities like:

Cycling System:

We start its cycling system for awareness but after that its task will be

modified into doing sales promotions for the company. And also cycling

system will prove excellent in terms of sales and promotion.

Coupon System

We will start a coupon system for build healthy relations with

customers and for promotion of Yummy. A product containing acoupon, which will be printed inside the wrapping of the product. If a

customer fined that coupon then he/she will win/get a Cow Boy dress.

It also shows the heritage.


33/37

Page 24 of37

CHANNEL LEVELS

DISTRIBUTION SITUATION

Consumer

Retailor

Distributor

Manufacturer


34/37

Page 25 of37

WAREHOUSING

Yummy Ice Cream has two warehouses, the 1st

in Multan and the 2nd

in

Islamabad. Warehouse of Multan serves the Sindh State and Islamabad

serves the Khyber Pakhton Khwa.

Company has its own network of 50 Vans & 4 big Trollers which easily

deliver the ice cream to the retailers.

SWOT ANALYSIS

With the help of SWOT Analysis we know the Strengths, Weaknesses,

Opportunities, and Threats of Yummy Ice Cream.Strengths:

The strengths of Yummy Ice Cream are as follows:

Yummy Ice Cream is available in natural taste. No preserving chemicals that affect the health. Its not a frozen dessert. It is a time saving product. Skilled and trustworthy workers are working in the company. Good growth of market.


35/37

Page 26 of37

Weaknesses:

Some weaknesses of Yummy Ice Cream are given below.

The company has fewer resources as compared to competitors. It has not strong brand image. It has not any distribution channels. They have less market share as compared to competitors. They have fewer budgets as compared to competitors. They have less technical resources.

Opportunities:

There are also some opportunities for Yummy Ice Cream which is as

under:

The company can use new technology. They can change its target segment. Prepare the new Ice cream flavor. They can change product use. They can change product image by changing its styles.

Threats:

There also are some threats for Yummy Ice Cream:

Competitors are willing to work on these products and o more hasstrong brand image. So competitors have captured the market

share of the Yummy Ice Cream.

Competitors have more resources than Yummy Ice CreamCompany.


36/37

Page 27 of37

Due to fewer resources it is very difficult to give awareness ofYummy Ice Cream to the customers.

If the company will do all this perfectly then they can make a hugechange and promotion.

Suggestions for Weaknesses and Threats:

Firstly the company has to reduce its weaknesses and then move on to

the threats .There are some suggestions or some positive or negative

points to reduce the burden of weaknesses and threats. These ideas or

suggestions are as under:

1.First of all the company has to create a brand and then focus on itby making advertisement more and more to get the best

positioning level in the minds of the public. If company create a

strong brand image then it is very easy to remove the weak

points.

2.Secondly the company will have to make strong distributionchannels. If the company does so then all the hurdles will be

removed which supposed the cause of decrease in sales. For this

purpose company will have to give margins by giving bonuses,


37/37

incentives, and gift hampers. The company will have to give some

packages/schemes to the distributors.

3.The threats are that our competitors are strong. They have strongbrand image. The company has to make the Quality level, Design,Packaging, and labeling of Yummy Ice Cream better than its

competitors.

If the company does so then it can easily get the best positioning level

in the mind of customers. By following these three suggestions the

company can easily remove the big problems that the company is

facing.

yummy project

Documents