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CASE STUDY ANALYSIS Marketing Management MKT 501 Groups Members: 1. Abbas Raza 2. Anmol Fatima 3. Asad Manzoor 4. Humna Bajwa 5. Shikaib Shadmani 6. Taha Ansari FINAL EXAM: CASE STUDY ANALYSIS Marketing Management MKT 501 Instructor: Atif Murtaza Institute of Business Administration Marketing Management MKT 501 Instructor: Atif Murtaza Final Exam 2nd January 2021 Paper 3 Instructions: 1) All Questions Carry Equal Marks 2) Submit your Final Responses in the Form of Word document/PPT/Video or Any other Supporting Format 3) If you have made any estimates mention your assumptions. 4) Keep It Simple and Succinct 1 Questions: a) How does the ice cream industry in Pakistan differ from the rest of the world? Answer: Worldwide ice cream market was worth 57 billion U.S. dollars in 2017 and is required to develop to almost 75 billion by 2024 Statista. (2020, November 30). This speaks to a more than 30% expansion in market size over the period. New Zealand drives the world in ice cream consumption with a per capita consumption of 28.4 liters per year. The country is famous for the high standard of its dairy products. Unilever was the market leader in ice cream production around the world. Though in Pakistan per capita consumption of ice cream is the most minimal on the planet, 0.4-liter per person per annum, as compared to Scandinavian countries, USA and Europe 21-26 liters per person per year, but the new trend in its consumption is on the expansion. The ice cream industry in Pakistan has customarily developed at a sound pace, but again there is a huge potential for Pakistan which is yet to achieved. Secondly the consumption of frozen desert within Pakistan is more as compared to ice creams because the organization intends to gain maximum profit and normally, they sell low-esteem added frozen yogurt and work on more strike edges. So really, they are not selling ice cream yet a frozen dessert. Likewise, frozen desserts are produced using vegetable fats and ice cream is produced using milk fats. To pick up a productive edge and without settling on wellbeing norms organizations typically favored vegetable fats. Thirdly, the organization of ice cream isn't normally similar everywhere in the world. ice cream generally has five fundamental configurations in Pakistan. Cones, sticks, cups, bricks, and tubs (premium flavors). Bricks are typically not sold in different nations. In the rest of the world, Tubs are typically profoundly sold on the grounds that again they are high-worth-added items. and furthermore, the ice cream tubs are made of PLA material, making them completely recyclable, and furthermore typically favored by families. what's more, buying power is high. Lastly, although the development in Ice cream industry has been principally because of the reinforcing of the distribution channels and cold chain framework but power cuts and energy deficiencies in the country can contrarily affect the deals and development of ice cream makers because of stock misfortunes.so it became very difficult for retailers to maintain the quality of the ice cream and usually they don’t store such product. But in rest of the world consumer usually store such frozen products. b) Analyze the difference in the branded and unbranded ice-cream segment? Answer: The ice cream industry in Pakistan has been partitioned into the branded and unbranded market. The two significant players in the branded market at present are mostly Walls and Omore. In the branded ice cream market, Walls held the main spot, with a piece of the pie of 70%, followed by Omore at 29%, and the unbranded market catches 1 % of the piece of the overall industry. Besides Walls and Omore, there are additionally other branded parts in the market eg Igloo, Hico that could scarcely catch a market share in the ice cream industry. Hico was the first ice cream company in Pakistan and also the first to introduce the concept of pushcarts. Till 1990, problems rose which led to considerations regarding the closing of the business because it was not creating income. On account of another significant player (Walls) entering into the market, Most Hico products do not require a separate freezer because retailers can stock the products on their own which is why they are more anxious to store them. Igloo whose main market exists in Karachi and according to them, they have a market share of 40% in the city (2012). Igloo has a total of 8000 freezers, with 5000 in Karachi, 2000 Sindh, and 1500 in Baluchistan. Their costs are reasonable, and they additionally put resources into item advancement and securing of exceptional machines to make stick ice cream with unique plans and shapes. Apart from selling in retail outlets it also provides ice cream to its 2 consumers through tricycles and igloo parlors. At the point when Omore showed up on the lookout, they contended having kept up their remain as a different brand and supported the expanding size of the pie. Yummy, set up in 1981 in Lahore, was at first closed down because of trouble in tasks however was revived again in 1991. It had a small production capacity, selling ice cream just in Punjab They had 200-300 coolers and yearly deals of Rs. 20m. Yummy was not sufficiently able to exist in markets or supermarkets since they couldn't manage the cost of the limits requested by the retailers. There is likewise the significant market of unbranded ice cream, which typically bargain on their inferior quality item and extremely financially savvy. Despite the fact that they are not sold in staple or general store in light of high reasonableness of the expense of refrigerators they could undoubtedly catch out of home channels (OOH) where the consumer is indifferent and have less worry about the branding of the product. eg weddings, parties, family huge celebrations. Another pattern that is seeing in the unbranded market is that Caters likewise need to pick up the overall revenues so they for the most part accomplish the first separation of cost and offer high ideal costs to purchasers for minimal effort unbranded item. E.g. Iceberg, Peshawari. As per the business players, there is additionally intense usage of kulfi which is being tapped in the unbranded market however again they likewise have an extremely easy item and could without much of a stretch trade off on their quality. Other than these there are conventional pastries and treats which are likewise consumed on unique events, for example, Mithai and Kheer. c) Analyze the significance of cold chain for ice cream industry in a country like Pakistan. What are the drawbacks? Can there be any alternates? Answer: Ice-cream is a perishable product heavily dependent on the temperature to sustain its product quality and life. It requires temperatures below -30 Celsius to keep it in the best shape possible. Where temperatures are high the demand for ice-cream is more however, there the handling of the product also requires a lot of effort. To handle the product, a skilled and alerted supply chain is required to support the sales team regarding the temperature issues. This supply chain has a special name such as the cold chain. The cold chain acts as the spinal cord of the whole ice-cream business. It is responsible for safe and temperature-controlled supply from the factory to all the distributors. This is ensured through huge trucks that transport ice-cream in a temperature-controlled compartment. Once the ice-cream reaches the distributor, it is stored at the cold warehouse. This requires a constant supply of electricity and man power. Once the sales team generates orders, the products are taken out of the cold warehouse and shifted to the cold vans (reefer vans). These vans are smaller in size as compared the previous trucks. These need to be cooled at temperature -40 Celsius in order to the transport the ice- cream all around the city. When these vans are dispatched the driver needs to keep a vigilant eye on the thermostat. In case the temperature rises above -20 Celsius, the product is in danger of getting melted and the van must return to the distributor in a hurry. If the temperature is in the safe zone, ice-cream is shifted from the refer vans to the freezer available at the shop. In case, the freezer gets malfunctioned the retailer is given a 24/7 helpline contact number to complain about the issue. Once the complain is received it needs to be rectified within 3 hours all over the country in order to save the stock from getting damaged. Omore has achieved a successful rate of attending calls 3 within the time duration for 99%. The 4 hours are prescribed as per global standards that if the door of the freezer is kept closed, it can sustain the products for this much time. All of this is managed by the cold chain team working 24/7 to ensure that ice-cream reaches the end consumer in the best shape. The importance of the cold chain can be understood from the fact that it is the spinal cord of the business without which the business will cease to exist. When there are electricity shortages, flooding or any catastrophe, the cold chain is there to save the ice- cream business from mega losses. The prevention of losses enable the trust of the retailers as well as the business partners to have confidence that the business will not be a loss making proposition. d) Analyze the promotion strategy of Omore over the years? Answer: Omore was launched by Engro foods in 2010.
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