01.Instructor: Miss Nida Aslam khanPrinciples of Marketing
Syed Aun Rizvi Mohammed ShehmirMaaz Shahid| The Pakistani brand we have selected is “OMORE ICECREAM”.The Company that produces it is Engro Foods Limited.
COMPANY Engro foods are among the biggest and fastest growing conglomerates in Pakistan with a vision to cater to local needs with the products conforming to global standards.Highly passionate about millions of people across the lengths and breadth of Pakistan and beyond with the ultimate brand experience, its product comprises some of the country’s biggest and best selling brands including Olpers, Omore Ice-cream, Omung Lassi, Dairy Omung and Tarang. Engro Foods Limited was officially launched as a fully owned subsidiary of Engro in 2004. Using dairy as a stepping stone to enter into the food business, the company has established state of the art processing unit in Sukkur and Sahiwal, along with the ice-cream production facility in Sahiwal.
MARKETING STRATEGY FOR THE OMORE
Omore ice-cream was launched in March formally on April 6 2009 in eight cities and towns, started with 24 different formats and flavors. It is a brand that seeks to cater a wide range of consumer groups and taste palettes.
Omore Ice-cream has a high quality and eye catching packaging and the packaging is colorful and beautiful which attracts children. They promote ice cream through advertising such as vehicle advertising, billboards, point of displays and television ads which are very attractive. When Omore ice-cream was introduced, for marketing, flyers were thrown in different housing communities using airplanes.They also have a slogan for joy and happiness “Art of Happiness” and have associated their brand with rituals, celebrations like basant, mela etc. they also market their products at face book, twitter etc to link their brand with customers. Omore ice-cream is available in large, small bakeries and stores. They also sell their products directly to consumers using cycles and their own personnel.MARKETING MIX OF OMORE PRODUCT OMORE has differentiated and positioned its ice-cream on following dimensions:- Conformance Quality: This is done by opening channels for getting feedback i.
e. hrough website, help lines, social media like Face book which allows customers to complain and suggest about the product.Reliability: Omore claims to use pure ingredients, authentic flavors and best available technology which are verified by its consumers, which helps to gain reliability in Omore.Style: Style describes the product’s look and feel to the buyer. Omore has considered differentiating their ice-creams through improving their packaging or the style with a distinctive feeling about their product.Product name
Froze ice pops
- 2. Nutty caramel cones
- 3. Strawberry/Mango/vanilla affairs
- 4. Kulfi (Desi)
- 5. Lick a flavor
- 6. Froze cups
- 7. Buzz
Packaging: High quality and eye catching packaging. Packaging color ranges from red, blue, yellow, orange, green and purple.
PRICE To capture the market, market pricing strategy is based on “competition based pricing”. The price of its competitor (Walls) is more or less the same. Product line pricing comprises of: Froze (Rs. 5-10-12-15), Range of family packs (Rs. 150-120-180), Range of individual ice-cream (Rs. 10-15-20-30).List price: price varies differently depending upon- <cups Rs.
20> <cones. Rs. 30> <ice pops. Rs. 10-30> <soft serve ice cream Rs. 10-15> <1 ltr ice cream Rs.
50> <2ltr ice cream tub Rs. 275>.
Omore ice cream is sold directly through retailers and distributors. Omore ice cream for the time being is only available in limited cities.
But now it is expanding the base. Ice-cream is transported to retailers through private transportation firms e. g. Abu dawood and PTI. The ice cream is available at small, medium sized retailers, shopping mart, medical stores and other types of stores. PROMOTION Broadcasting media: Televisions, radio ads and internet ads. Print media: Vehicle advertising, outdoor billboard and point of sale display. Advertising are mostly colorful like their packs.
Geographic: At the start, the only market served was Lahore. After a year they expanded their business and entered other cities as well. Omore covers Punjabi cities more strongly because they are near to their Sahiwal factory.Demographic: Omore has ice cream for almost all demographic segments. Takeaway packs and tubs for families, cones for teen agers, and cups and ice pops for children.Behavioral: Omore is planning to be among those ice creams which offer diet ice creams for those people who have diabetes problem or are diet conscious. It is a large untapped market segment which they are planning to tap soon.
In this segment they chose occasional and benefit sought segmentation.
With the aid of a table, points are given to each company out of 5. “1” being the lowest and “5” being the highest. | Omore| Walls| Igloo| Advertising (Electronic media)| 4| 5| 2| Advertising (Online)| 4| 4| 2| Advertising (off-line e. g.
banners, posters, seminars)| 5| 4| 2| Variety of flavors| 3| 5| 3| Quality| 5| 5| 3| Quantity (according to price)| 4| 4| 4| Price| 4| 4| 5| Total points| 29| 31| 21| The table clearly shows that the major competition which OMORE is getting is just from one brand which is Walls, which is manufactured by Unilever.The other competitor, Igloo, used to be a major market player in the beginning of this industry but now the overall performance has declined very much. The competitive edge in marketing which OMORE possesses is off-line marketing in which the company has used a big variety of means to create a good brand image and to create a brand loyalty in customers. They have been organizing different forms of seminars in public places such as schools, resorts, hotels, beeches, restaurants, colleges, universities and shopping malls.Other means are mobile ice cream parlors (using a bus), Sponsoring events in Universities (ADWAR in IBA), organizing concerts, combined advertisings by joining the brand name (Ice age 4 and OMORE).
CHARACTERISTICS AFFECTING THE CONSUMER BEHAVIOR TOWARDS OMORE ICE CREAM CULTURAL FACTORS
Cultural shifts: People in Pakistan like “Desi” sweets dishes more, this entrenched societal characteristics helped marketers of Omore to come up with “DESI” oriented products like “KULFI” campaigning it as “DIL BOLE DESI”.Social class & economic situation: considering the vast social classes & bad economic condition, Omore has introduced 30 SKUs. These units help to fulfill needs of different classes.
Family: members of the family often get together at rituals, celebrations, weekends in Pakistan. Omore has associated its brand with happiness & joy that “enjoy the moments with sweet items such as family packs of Omore ice cream”.
Age & Life-Cycle stage & self concept: children, adults & old people have different buying behavior.Colors, cartoons, sincerity are associated with child’s personality that’s why Omore has introduced the “Frooze” series of ice cream. Adult go for excitement and Omore’s “chocolate temptation” promises of classy, imaginative taste.
Motivation: buying behavior varies from one person to other according to their motivation level because for underprivileged person, ice cream is the occasional treat while for privileged ones, Omore ice cream could be a source of fulfilling the esteem or social needs.Learning, Belief & attitudes: with vast range of flavors & classy taste, Omore ice cream hasn’t disappointed its first users & consumers’ response has been tremendous so far. Omore has grabbed more than 26% total market share.
Omore has also succeeded in changing attitudes of even brand loyal of Walls ‘product.
TYPE OF BUYING DECISION BEHAVIOR
Consumer of ice cream undertakes variety-seeking buying behavior because of low-involvement but significant perceived brand differences.There is significant difference found among price, flavors, product design, marketing strategy of two brands i. e. Omore & Walls. Omore consumers wouldn’t do much evaluation before usage of any product & often keep on looking for new & different products for merely variety.
BUYER DECISION PROCESS
Need recognition: a consumer who eats creamy strawberry ice cream of Walls would be triggered by the ad of Strawberry Cheesecake ice cream of Omore with the flavor of Cheese because he likes cheese flavor.Information search: consumer may go for experiential sources to get the information in which he would use the product. Moreover, he can also get information from personal sources. This information could bring more products under consideration. Evaluation of alternatives: since there are two major ice cream brands in Pakistan, then consumer will compare the features of two products, such as price, flavor, quality etc and make the priority list. Consumer’s priority list could consist of quality, cheese flavor, accessibility.Purchase decision: consumer will make the purchase in keeping account of his priority list & if Strawberry Cheesecake ice cream of Omore fulfills all consumers’ requirements, then he will buy it. Post purchase behavior: if the consumer’s expectation & ice cream perceived performance match then consumer will be satisfied otherwise not.
Consumer may compromise for some drawbacks of chosen products such as high price and this would push him towards the post purchase dissonance.Details of contact person:Filza Feroz Maniar Corporae Payable Officer Number#03333269847