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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
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DATED: 28-06-2011
This Project Is Submitted
In Partial Fulfillment Of
Requirements For The
Repositioning Of Yummy
Ice Cream Company.
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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
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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.
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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.
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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
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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
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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:
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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.
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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
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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.
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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
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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.
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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
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PRODUCT REVIEW
Required Temperature: Below -18C.
Life time (Out of freezer): 25 min.
Expiry: 12 months.
Packaging
Packaging: Multiple packaging
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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.
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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
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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.
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PRODUCT LIFE CYCLE
1. Introductory Stage
2. Growth Stage3. Maturity Stage
4. Declining Stage
Here we introduce new
flavors and new
products.
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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.
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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
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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
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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.
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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
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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.
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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
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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.
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CHANNEL LEVELS
DISTRIBUTION SITUATION
Consumer
Retailor
Distributor
Manufacturer
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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.
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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.
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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,
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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.