Sales of Igloo is Low Because of Ineffective Marketing Strategies

PAKISTAN DAIRY PRODUCTS (PVT). LIMITEDIGLOO ICE CREAMSALES OF IGLOO IS LOW BECAUSE OF INEFFECTIVE MARKETING STRATEGIES

RESEARCH REPORT ON PAKISTAN DAIRY PRODUCTS (Pvt.) LIMITED

PREPARED BY: Humair Jafri, Furqan Farhat, M. Zeeshan Shaikh, Pasha Jafri, Salman Ali Zaidi

NEWPORTS INSTITUTE SCIENCE & COMMERCE


NAME OF MEMBERS

HUMAIR JAFRI (TEAM LEADER)

FURQAN FARHAT

MUHAMMAD ZEESHAN SHAIKH

PASHA JAFRI

SALMAN ALI ZAIDI






By the grace of God we have successfully completed our Research Report on

“IGLOO ICE CREAM”(Pakistan Dairy Products Pvt. Limited)

SALES OF IGLOO IS LOW BECAUSE OF EFFECTIVE MARKETING STRATEGIES

We would like to thanks Ms. BUSHRA RAZA for being a wonderful teacher with a difference. Also for her understanding individual students and motivating them to achieve understanding of course we well thought fairly difficult to say the least.

Thank you ma’am, we apologize for any mistake in the following report. We have given it our best shot.

And last but not the least we would like to thanks our family and friends who arranged to go the shops and meet people concerned with our report. With their help and criticism our report would not have turned out to be so polished.


PURPOSE OF THESIS

IGLOO Ice Cream is facing a problem of low sales as compared to other company brands. In this report, we analyze the factors affecting on the company due to which they are facing this problem in today’s highly competitive market.

In this study, we have tried to research that the problem arises due to lack of marketing strategies (such as advertising and promotional activities). My hypothesis is:

HYPOTHESIS:

“SALES OF IGLOO IS LOW BECAUSE OF INEFFECTIVE MARKETING STRATEGIES”

INTRODUCTION

Ice Cream signifies merriment, joy and happiness and is cherished by people of all over the globe. Consumers relish this immensely popular year round product with a demand spreading over various social segments throughout the seasons. Ice Cream is a source of great merriment and delight with a rich and creamy taste, complemented by the nutritional nature of its ingredients like only a few companies are dedicating their efforts to produce ice cream loaded with fun and nutrition.

Companies have been trying to fine new and better ways to market and make their products available to the consumers. Similarly Pakistan Diary Products is a pioneer in introducing ice cream. Amongst these companies, Igloo stands out as an unparallel provider of value through its enticing array of ice cream flavor in a sumptuous assortment to appeal diversified consumer tastes. All along, it has hallmarks a gigantic market presence as a household celebrated brand.




DESCRIPTION OF THE THESIS

We have divided this thesis into following 4 chapters:

Chapter # 1- This part consists of an in-depth literature review and

explains the concept of Customer sales of Igloo is low because of

ineffective marketing strategies.

Chapter # 2-This chapter explains the methodology of the thesis,

giving information about the respondents, sample size, and the

questionnaire designed.

Chapter # 3-This chapter gives results and an in-depth analysis of the

answers given by the respondents to each question.

Chapter # 4-This final part concludes the findings of the survey and

validates the hypothesis and states the conclusion of the thesis.




CHAPTER# 1

‘Literature Review’




COMPANY BACKGROUND Operating under the aegis of Pakistan dairy products since 1976, Igloo ice cream is the pioneer ice cream manufacture in Pakistan. As a nation wide premium ice cream manufacture, their emphasis has always been on providing consumers with quality ice cream with a vast variety that guarantees consumer satisfaction. The company operates from Karachi; however its distribution network covers vast area of Sindh and Bolochistan. Igloo stepped into the new millennium with a renewed vigor and commitment to provide value and quality to consumer as well as dealers. Igloo chooses the choicest ingredients with imported milk and butter offering different variations to suit the consumer’s tastes and demands. Igloo is a supplier of superior quality ice cream to many renowned restaurants and hotels of Pakistan. This is yet another reflection of Igloo’s determination and commitment to provide quality and taste to all. On the whole Igloo has the strongest and most delicious ice cream portfolio among its competitors, comprising 28 different products and packs with more 28 flavors under the Igloo brand as the pricing of the products, making all its products easily affordable for the masses. Igloo’s strategy is highly consumer-orientated and it eaves no stone unturned to fulfill its promise of being the Ice cream “Full of Fun”

Igloo’s product portfolio is continuously expanding & promises to provide consumers with unmatched flavors & product innovations. IGLOO emphasizes on providing consumer with quality and a vast variety of ice cream assortments for maximum enjoyment. One of the most successful ranges from Igloo is supreme range which has several unique flavors, like strawberries n cream, blue berries n cream, butter scotch n cream, coffee, chocolate crispy, strawberry cheese cake, coffee toffee cookies n cream, etc. these packs are available in exclusively produced reusable plastic bowls. The supreme range has become a major household favorite all over Pakistan.

Besides IGLOO also offer other variety of exclusive products for all kind of generations to enjoy. With ever-expanding rang of products and flavors, and innovate sales techniques, Igloo now stand at par with the best in the country.




CUSTOMER SATISFACTION

“Customer satisfaction” is a person’s feeling of pleasure or disappointment resulting from comparing a taste, quality of dairy product services, environments, price and deals perceived performance (or outcome) in relation to his or her expectations.

As this definition makes clear, satisfaction is a function of perceived performance and expectations. If the performance matches the expectations, the customer is satisfied. If the Performance falls short of expectations, the customer is dissatisfied, if the performance exceeds expectations, the customer is delighted.

It is notable that expectations of a customer include stated needs as well as unstated needs and delight needs, which may be targeted to achieve high customer satisfaction level.

In context of the hypothesis, “Sales of Igloo Is Low Because Of Ineffective Marketing Strategies”, as they tend to satisfy price, taste, quality of Igloo Ice Cream but their marketing strategies are not up to the mark.

Our problem definition can be summarized as follows;

“To investigate the reason of low awareness of IGLOO ice cream among people and measuring the price, taste, quality,

new product line etc.”

Research Objective To find out people’s attitude towards the Diary products Igloo. To find out people's attitude towards Igloo Ice Cream. To find out people's enjoying habits of Diary Product Igloo. To find out people's spending habits of Diary Product Igloo.




To find out people's perception of Igloo Ice Cream and its influence.

To find out people’s perception of Igloo Ice Cream based on taste, availability, price, marketing and new product line.

To find out the general perception of Igloo Ice Cream reputation regarding marketing strategies.

DEFINITION OF KEY TERMS INCLUDE:

NEEDS:

To capture a large share of the mass market. To provide maximum customer satisfaction. To meet the highest international standards of quality. Commitment to having a highest level of quality.

STATED NEEDS: In context of the hypothesis, sales of Igloo are low because of ineffective marketing strategies. It may not fulfill the stated needs of the customers. It should concentrate on product mix (Product, Price, Place and Promotion).

UNSTATED NEEDS: In context of the hypothesis, various factors may contribute towards satisfying the unstated needs of the customers of Igloo ice cream such as their low promotional activities and limited target market.

DELIGHT NEEDS: In context of the hypothesis, Igloo ice cream tends to offer the product at low price that tend to delight customers and provide high satisfaction levels to their low income customers.

EXTENSIVE VARIETY OF SIMILAR PRODUCTS: Igloo ice cream provides more flavors (Chocolate, Banana, Mango, Strawberry etc.). Secondly, it is available in the market at very low cost




LOW SALES SERVICE: It sales is low due to the ineffective marketing strategies.

PROMOTION: This is considered to be the key element in the marketing mix for it. As far as the advertising is concerned, the company did not advertise on TV not only on local channels but also on Indian channels example STAR PLUS. There were a few reasons for that. First and foremost, how much of the target market would be reached by TV advertising for this brand was high. Families watching news would see the ad on GEO NEWS, WOMEN watching PLAYS would watch the ad on STAR PLUS and old people watching Pakistani channels would also get the message.

WEAKNESSES :

Lack of focus due to multiple brands. Unhealthy competition in the corporate culture. Direct competition from Walls. Igloo must concentrate on heavy promotional advertising in order to maintain its market share. More enthusiastic efforts need to be carried out.




CHAPTER# 2

‘Methodology & Questionnaire Design’




METHODOLOGY OF THE THESIS

The hypothesis is tested for student, teenager, young adults and middle Ages who visit at different ice cream parlors and can afford the Igloo Ice Cream. The hypothesis is tested on the basis of a questionnaire targeting major factors (as discussed above) that may contribute to higher customer satisfaction level. The questionnaire consists of 25 closed-ended questions to get accurate responses. The responses of the customers to each question are summarized and presented in a tabulated form. However, responses of the customers were also observed and analyzed to frame a realistic picture of their satisfaction levels. Thus, an accurate and in-depth observation and analysis was also conducted in order to measure customer satisfaction level.

SAMPLE SIZE:

In order to test the hypothesis accurately, a realistic and measurable sample size of 62 respondents is taken. Out of these 62 respondents, 30 respondents were interviewed from the following:

Raja Bakery (Malir) Metro (University Road) Makro (Sharh-e-Faisal)

However, remaining 32 respondents were interviewed from Offices that are located in the areas of Clifton, I.I. Chundrigar Road, Karahi University, Dow Medical College, Gulshan-e-Iqbal, North Karachi and NICE. The reason being that people living in these areas have an access and can afforded.

Company Objective:PREPARED BY: Humair Jafri, Furqan Farhat, M. Zeeshan Shaikh, Pasha Jafri, Salman Ali Zaidi



Pakistan Dairy Products (Pvt.) ltd. wants to know the reason for low sales of IGLOO ice cream as compared to other company brands.

Objectives

Management of Pakistan Dairy Products (Pvt.) ltd. should emphasis on following techniques to increase the sales of IGLOO ice cream.

Increase its advertisement through electronic and printing media.

Make available its product on big and local super stores of different

areas.

Improve its taste and quality of product.

Make new line product to compete other company brands.

Set the price according to its product taste and quality.

Name : ______________________________ Location : ____________________________




Professional : ________________________ Age :_________________________________

1. I always like to spend on igloo ice cream.

□ Agree □ Disagree □ Strongly Agree □ Strongly Disagree □ No Comments

2. IGLOO Satisfaction Scale is excellent.


3. IGLOO ice cream needs advertisement for increasing its Business.


4. Most of people do not like the pace of Igloo ice cream.


5. Do you believe that IGLOO shall reposition its production, marketing as an ice cream for masses in urban areas including high income group?


6. Do you prefer IGLOO Ice Cream over Walls Ice Cream?


7. All flavors of IGLOO ice cream do not need equal promotion.


8. IGLOO caters all sort of age group.


9. IGLOO ice cream gives you energy.


10. Economies instability of country also affects the sales of IGLOO.





11. IGLOO is considered as a high quality and safe product.


12. Is this true that its market growth rate is higher as compare to Walls?


13. Distribution network of IGLOO is quite good.


14. IGLOO market shares are low.


15. Availability of IGLOO is at low cost.


16. Both upper and lower class people enjoy the IGLOO Ice Cream.


17. Do you believe that IGLOO should improve the product packaging to make it more attractive for consumers?


18. They should set their price according to its product taste and quality.


19. They should develop their new line product to compete with other brands.


20. They should use different T.V channels for promotion like Star plus focused by Housewives, Nat Geo by Men & Nick by Children etc.





21. Do you believe that IGLOO Ice Cream has lost its market share against the Walls because of its focus on lower income group and rural areas?


22. Do you place the logo of IGLOO Ice Cream as the best logo amongst all ice cream logos?


23. Choco bar & Dino is very popular amongst children.


24. Preference of IGLOO Ice Cream is high over other brands.


25. It is the best quality Ice Cream in Pakistan.





CHAPTER# 3

‘Research Results & Analysis’

RESEARCH RESULTS AND ANALYSIS




Following tables have been designed for each question in the questionnaire. The results that were found out are summarized and tabulated along with an in-depth analysis of each question after reviewing the results and data obtained.

1. I always like to spend on igloo ice cream.


ANALYSIS :

This table shows that 45% and 2% of the respondents agreed and strongly agreed to the question, whereas, 35%, 8% and 10% of the respondents disagreed, strongly disagreed and no comments respectively.

The result shows that majority of respondents i.e. 47% are like to spend on igloo.

The graph represents that people would like to spend on igloo ice cream while some of them would enjoy it.

2. Igloo Satisfaction Scale is excellent.





ANALYSIS :


The result shows that majority of respondents i.e. 47% are satisfied with igloo and it is against our hypothesis.

The graph shows that customers are satisfied with Igloo but here is a gap shown in the graph. There is need to improve the satisfaction level by using different ways.

3. Igloo ice cream needs advertisement for increasing its Business.





ANALYSIS :


The result shows that majority of respondents i.e. 95% are in favor of advertisement and it supports our hypothesis.

The result shows that Igloo requires more advertisement to increase its business and compete in market

4. Most of people do not like the pace of Igloo ice cream.





ANALYSIS :


The result shows that majority of respondents i.e. 52% are agreed or strongly agreed to above question and it supports our hypothesis.

The Graph represents that People are not satisfied with igloo ice cream regarding their pace. Igloo Management has to concentrate on different strategies to keep itself in market

5. Do you believe that Igloo shall reposition its production, marketing as an ice cream for masses in urban areas including high income group?





ANALYSIS :



The graph shows that it should cater urban areas including high income group. Resultantly their sales would increase.

6. Do you prefer Igloo Ice Cream over Walls Ice Cream?





ANALYSIS :


The result shows that majority of respondents i.e. 66% are disagreed or strongly disagreed to above question and it supports our hypothesis.

The graph shows that people don’t prefer Igloo ice cream over walls ice cream. The reason might be ineffective marketing strategies.

7. All flavors of Igloo ice cream do not need equal promotion.





ANALYSIS :



The result represents that all flavors of igloo ice cream do not need equal promotion. Each flavor has its own importance and target different age group.

8. Igloo caters all sort of age group.





ANALYSIS :



The graph shows that Igloo ice cream caters all sort of age group but we can not neglect that there is need of improvement regarding their line product and product mix.

9. Igloo ice cream gives you energy.





ANALYSIS :



The result represents that it does not known as energy symbol. People might enjoy it because of its low prices.

10. Economies instability of country also affects the sales of IGLOO





ANALYSIS :



The survey result shows that sales of Igloo are affected by the economies instability of country because of hyperinflation that affects more on lower income group.

11. Igloo considered as a high quality and safe product.





ANALYSIS :


The result shows that majority of respondents i.e. 51% are agreed or strongly agreed to above question.

The graph shows that it is a high quality and safe product but we can not neglect that there is need to improve its quality.

12. Is this true that its market growth rate is higher as compare to Walls?





ANALYSIS :



The result represents that its market growth rate is much lower as compare to walls because of no electronic advertisement and publicity of its product.

13. Distribution network of IGLOO is quite good.





ANALYSIS :



The graph represents that the distribution network of Igloo is not appropriate as compare to other brands.

14. IGLOO market shares are low.





ANALYSIS :



The result represents that its market shares are low due to ineffective marketing strategies.

15. Availability of Igloo ice cream is at low cost.





ANALYSIS :



The result shows that the cost of igloo ice cream is low as compare to their competitors. But due to low cost they are suffering in the market and their target market is limited.

16. Both upper and lower class people enjoy the Igloo Ice Cream.





ANALYSIS :



The graph shows that mostly people including both upper and lower classes enjoy the Igloo ice cream so they should emphasize on their promotional activities to increase their target market.

17. Do you believe that Igloo should improve the product packaging to make it more attractive for consumers?





ANALYSIS :



The graph shows that people want change regarding their packaging of product. They should design their packaging to attract more consumers towards their product which ultimately increase their sales.

18. They should set their price according to its product taste and quality.




OPTIONS RESPONSES PERCENTAGEAgree 32 52%

Disagree 9 15%Strongly Agree 18 29%Strongly Disagree 1 2%No Comments 2 3%Total 62 100%

RESPONSES

Agree51%

Disagree15%

Strongly Agree29%

Strongly Disagree

2%

No Comments3%

Agree

Disagree

Strongly Agree

Strongly Disagree

No Comments


ANALYSIS :



The result shows that they should set their price according to their product, taste and quality. As we know each one requires different types of promotional activities.

19. They should develop their new line product to compete with other brands.





ANALYSIS :



The results shows that they should develop their new line product to compete with other brands in turn it will hit its sales rapidly.

20. They should use different T.V channels for promotion like Star plus focused by Housewives, Nat Geo by Men & Nick by Children etc.





ANALYSIS :



The graphs shows that they should used different TV channels according to the different age group for their promotion. Through this promotional activity they can target their market easily.

21. Do you believe that Igloo Ice Cream has lost its market share against the Walls because of its focus on lower income group and rural areas?





ANALYSIS :



The results show that they only focus on low income group and rural areas due to which it has lost its market shares.

22. Do you place the logo of IGLOO Ice Cream as the best logo amongst all ice cream logos?





ANALYSIS :



The graph shows that its logo not considered as best amongst all ice cream logos. The attractive logo should be designed.

23. Choco bar & Dino is very popular amongst children.





ANALYSIS :


The result shows that majority of respondents i.e. 74% are agreed or strongly agreed to above question and it against our hypothesis.

The result shows that Choco Bar and Dino is very popular amongst children. They should make some changes to make it more attractive and tasty.

24. Preference of Igloo Ice Cream is high over other brands.





ANALYSIS :



The graph shows that due to ineffective marketing strategies and inappropriate promotional activities customer prefer other brands rather than igloo ice cream.

25. It is the best quality Ice Cream in Pakistan.





ANALYSIS :



The results shows that it is not best quality ice cream in Pakistan due to lack of 4 Ps. (Product, Price, Place and Promotion)




CHAPTER# 4

‘CONCLUSION’






We have conducted our research on low sales of Igloo ice

cream in which we set our hypothesis that the sales of Igloo is

low because of ineffective marketing strategies. In this

Methodology Report we have proved that the reason for low

sales of Igloo ice cream is because of ineffective marketing

strategies, mainly because of low advertisement and lack of

awareness to their customers.

Through our whole research process, we conclude several

points. If the organization acts upon such decisions, the sales

of Igloo will be increased as compared to its competitors.

Igloo should emphasize on their marketing strategies

(strategies are very low), in which they have to focus on

advertising mainly. Igloo also inconveniently available on

local stores, it has to be available on super stores as well as

local area stores.





The data and information in the compilation of this report are collected from the following sources:

General Public:

Personal Survey – Questionnaires

Website:

www.igloofun.com

http://wiki.answers.com/Q/Market_share_of_Igloo_ice_cream_in_pakistan

http://www.highbeam.com/doc/1G1-20457473.html



http://www.highbeam.com/doc/1G1-20457473.html

http://wiki.answers.com/Q/Market_share_of_Igloo_ice_cream_in_pakistan

http://www.igloofun.com/

Documents

Sales of Igloo is Low Because of Ineffective Marketing Strategies