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MARKETING COMMUNICATION ANALYSIS OF Omor'e

ICECREAM

Presented by:Wahaj Hussain

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HISTORICAL OVERVIEW• Prior to 1983 Frozen food industry in

Pakistan , was primarily restricted to three Local ICP brands. – Polka (1970) -- Igloo (1974) --Hico (1952)

• Numerous small unbranded ice-cream manufactures sold hand held ice-cream.

• Few ice-cream shops and hotels/restaurants.• Raw material used was mainly powdered

milk. • Plant and machinery, refrigerated trucks and

freezers were all imported. • Ice cream industry in Pakistan is growing

rapidly • Problems do exists in distribution network. • Size of the current market is around Rs 15

billion

Omoré Walls Igloo Others0

10000

20000

30000

40000

50000

60000

70000

80000

90000

Value Share (PKR in mil-lion)

Yr 2009 Yr 2010 Till Sep Yr 2011

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THE ROLE OF AN MNC

• In 1995 Unilever/ Walls changed the norms of retailing by handing out freezers for free.

• Ice cream has to be sold in specially designed freezers.

• These freezers are more expensive as they have eutectic plates.

• Due to Walls by mid 2005, per person consumption increased from 0.2 liter per person in early 2000 to 0.4 liter in2008.

Yr 2009Yr 2010

Till Sep Yr 2011

0%

20%

40%

60%

80%

100%

10% 17% 23%

64%63% 60%

11% 8% 5%

15% 12% 12%

Market Share in per-centages

Omoré Walls Igloo Others

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INTRODUCTION OF COMPANY

• Engro Foods Limited was officially launched as subsidiary of Engro Corp in 2004.

• Engro foods Products:

Olpers, Owsum ,Tarang ,Omor'e,Dairy Umang ,Olfrute

• the Company has established state-of-the-art processing units in Sukkur and Sahiwal, along with an ice cream production facility in Sahiwal.

• Engro plan to operate in rice processing plant.• Al Safa a fast growing and established Halal meat brand ventured by Engro.• Engro Foods is now venturing into North American market starting from

Halal Foods category. • Engro Foods Canada Ltd. with a subsidiary Engro Foods USA, LLC

Vision of Engro foods:

Elevating Consumer Delight Worldwide

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Evidence of Growth

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BCG Matrix for Engro

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Competitors

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Direct CompetitorsWalls-Main competitors

• Walls’ is a UK based company and owned by Unilever• With advent of Omore Walls market share declined from 70% to 60%

but sales have increased by almost 70% due to category expansion.• Walls ice-cream began its marketing with two distributors from Lahore in

April 1995, and then in Karachi. • Walls appointed distributors for exclusive geographical zones.• The retailer’s job is to purchase stock, pay the electricity bills and keep

the freezer clean. • Walls had a total of 30,000 retail outlets in the country. • The identification of the retail outlet is the job of Walls sales force.• They have an in-house criteria based on which they pick a retail outlet.• Walls provides both glass top and hard top freezers

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HICO

• Owned by Pakistan Fruit Juice Co. [Pvt.] Ltd., since 1958 (1st Ice cream company)

• Acclaimed to be purely [100%] made up of milk• Favorite at Punjab side.• Less sales force and low publicity WITH still a huge loyal customer base• The ice-cream plant, at the time of acquisition, had an installed capacity of

80 liters which is now 4.5 million liters, with 8000 company owned freezers.

• Previously The shops were provided with especially made ice boxes• Most of the ice-cream would be sold on trikes,• They placed a few freezers in the retail outlets in Lahore. • They set up a cold store • They would would deliver directly to the retail outlets through their trucks.• Hico Market share is 10%.

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• Manufactured by Pakistan Diary Products [Pvt.] Ltd., since 1974• Operates from Karachi with wide distribution networks in Sind and Baluchistan• Their positioning factor is; Quality ice cream with unmatched flavors.• Igloo is providing ice cream to its consumers through three different channels;

tricycles, retail outlets & igloo parlors. • They focus on distributing the ice-cream in Karachi and Sindh themselves, whereas

they have a distributor who handles distribution in Baluchistan. They own seven, 40 feet containers

• 12 vehicles are used for delivery from the Hyderabad depot while the remaining 33 vans are used to supply Karachi.

• The bulk of their sales are generated from Karachi and they claim that they hold a 40% market share in the city.

• The production capacity of Igloo Ice Cream is about 2400 liters/hour .

IGLOO

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• Low market share holdings.• Set up 1981 in Kot Lakhpat, Lahore as a family owned business. • Yummy Ice Cream prepared pure dairy ice cream from milk fat. • In 1997, Yummy filed a suit in high court against Walls, They won the

case. • They tried to launch the product in Karachi in 1999-2000 but withdrew due

to logistical issues• They have a depot in Multan and in Islamabad where their own 40 ft.• The goods are then taken to the shops by YMPL owned, cold chain vans

and sales persons. Goods are stocked in YMPL owned freezers at retail outlets.

• The retailer sells at a 17% commission. • Its production capacity is 10 million litres per annum. • The marketing strategy of YMPL is to focus on those stores where they

give less discounts

YUMMY

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Indirect Competitors

MOVENPICK

• Premium Quality Ice cream with Swiss roots• Targeting ‘A’ class at Urban areas

GELLATO AFFAIRS

• An Italian ice cream Company• Targeting upper class sections of Pakistan at

Karachi, Lahore and Islamabad.

MINI MELTS

Strong presence worldwidePremium payers of Ice cream are again its target market !

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LOCAL ICE CREAM PARLORS-NO COMPETITION FROM THEM TO

OMORE

• Peshawari Ice Cream • Rajoo Ice Cream • Baloch Ice Cream• Ice Burg, etc…

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Distribution of Omore

• Omore is providing freezers and maintenance to the retailer, plus a commission for carrying stock and providing outlet related tools; signage, gondolas, and window graphics & they own 20,000 eutectic freezers.

• They hired a third party, a logistics company, to set up a cold store point in Lahore and Islamabad.

• These points will be used to stock ice-cream from the factory.

• They have now divided the country into six districts and cover 130 towns.

• 90% of their distribution is through the indirect model.• Lahore & Islamabad is handled through direct model.• Distributors invest in cold stores and vehicles

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Distribution of Omore• Direct model for Omore:

– Vehicles and drivers were of the third party, the order booker and delivery person were Engro employees.

– \The order booker took the orders from retail outlets and fed the data into the supply chain system.

– A load sheet was generated according to the routes and the vehicles were loaded by the third party.

– Before departure the vehicle was physically checked by the Engro salesperson .

– He was also responsible for collecting money from the retail outlets • Karachi Model ,Indirect :

– The vehicles, loaders and the warehouse are owned by a third party logistics company while the sales team and order takers are distributor employees.

– They also sell their products directly to consumers using their own carts.

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Omor'e PRODUCT RANGE

• Evergreen Cones 30 – 100ml

• Evergreen Cups 100ml

• Teens Cones 110ml

• Evergreen Sticks 57 – 95 ml

• Multi serve Tubs 800 – 1000ml and 1500ml

• Multi serve Bricks 450ml, 8ooml and 900ml

• KIDS sticks, cups and ices

• Indulgence Sticks 800ml

• Indulgence Tubs 800ml

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OMOR'E POSITIONING

• Omor'e positioning is around fun and happiness.

• Omor'e aims to create happiness in life, while making every moment enjoyable and fun filled.

• Omore is all about fun because ice-cream is the single most food that provokes emotions.

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• BRAND STRATEGY: • To provide a quality ice-cream and more choice to

consumers.•  

• SEGMENTATION:–Kids–Take home – Multiserve.

• \

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THE TWO LAUNCHES• For Omore IMC is across all medium it uses. • Omore does communication development, and fundamental brand

framework.• Fist marketing campaign of Lahore launch objective was to build

awareness.• Omore achieved 80% awareness in 1 years of communication. • 1st they develop communication that is the message to be sent that is the

concept• Then select medium where the target market would be available.• Message stays the same in all vehicles Omore uses. • Then Omore decides up upon the budget required to complete campaign

objectives.• Omore just don’t react to competitors blindly.• Omore wants to make people fall in love with the brand.• Art of happiness communication is in every communication that is sent out

to customers.

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LAHORE LAUNCH

• Omore had cold chain available and wanted to keep manageable.

• Objective of the campaign was to publicize the brand launch, establish tagline “Art of happiness

• Delivered this brand essence through : air, water and land.• Engro spent around Rs 200 million on marketing

expenses.• The current top of mind awareness is 11%. • In just a few weeks, of Launch Omore made sales of Rs10

million on volumes of 76,000 liters.• Their Awareness campaign includes:

1) Streamers

2) Decoration of City in collaboration with PHA

3) TV Ads, Sponsoring Cooking Shows

5) TV Bloopers, Art of Happiness

6) Search planes Confetti

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KARACHI LAUNCH

• Physical disability’ for Omore to laucch in Karachi• It takes 5-6 months to distribute refrigerators among retailers and

by the time summer will be over. • In Karachi, Traders would not want to keep the ice cream stock

during the lean winter sales season. • Moreover there was no TV channel catering to specific cities, so

TVCs had to be run all over Country .Omore was launched in Karachi in spring of 2011, with a “conquer Karachi” advertising strategy

• Involved television, radio, activation, ambient and digital working in tandem.

• Content integration was used to announce this launch.• The campaign theme was “Karachi ka dil khushio se fill’’.

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OMORE BILLBOARD AND BRANDINGS

• In Karachi omore billboard were deliberately placed above the Wall's mango cone billboards

• Omore billboards are placed at all strategic location• Streamers on roads• Branding on Gantries • Branding of retailers shops. • Miniatures of Famous places in Karachi such as

mausoleum of Quaid-e-Azam Mohammad Ali Jinnah at various roundabouts around the city.

• ALL COMMUNICATED THE SINGLE MESSAGE OF FUN AND HAPPINESS.

• PINK & ORANGE COLOR VISIBILITY

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BRAND ACTIVATION:

• Sea view carnival:– Was a family affair inviting kids and their families to enjoy a fun

fulfilled day with Omore rides and games. – This was announced through a billboard and a TVC,which had Sahir

Lodhi as its host announcing this carnival.– This 1 week event took place 3 weeks after commencement of

distribution and thus almost 1.5 weeks after ATL advertising.• Basant festival:

– Omore also conducted Basant festival in Punjab to celebrate the commencement of Basant season.

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OTHER ATL AND BTL ACTIVITIES

Print advertisement:• OMORE has conveyed their message of happiness, joy, fun and pleasure

through their Print ads in all major newspapers and magazines, food magazines across country.

Packaging • Colorful packaging with product picture with name along with nutrition

indigents and contact information

Brochures and booklets• Brochures and booklets were distributed outside the famous supermarkets

at the time of launching

Posters and leaflets• Product promotion posters were placed outside the stores to create

awareness. At the time of launching leaflets were showered from aircraft in different areas of cities.

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OTHER ATL AND BTL ACTIVITIES

Point of purchase displays• OMORE placed their carts outside all the major

malls/ marts and grocery stores at the time of launching to do the point of purchase display.

Audio• Jingle and music is so strong that people

recognize OMORE with immediately. Especially its first TVC jingle had been very famous.

Sampling• Sampling was done by OMORE at the time of

launch in Karachi in all major shopping Malls. Frooze stick was sampled in all major mall for just Rs 10 at low price than regular price to induce trial.

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RADIO

• Omore has also been present on Radio on all radio channels.

• City FM89 were giving away a guitar and an amplifier in sponsorship with Omore in The Breakfast Show with Khalid .

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Recommendation

• Omore should create a website for its customers and prospect Suppliers and other stakeholders, as social page does not provide much information.

• Omore keeps No exact database of Consumers, just uses brand trackers to monitor customers buying trends.

• Omore should keep a database of customers according to their buying habits.

• Also data of major customers such as shopping malls, hotels, schools, etc should be kept !

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RESULT SUMMARY

Omore practice rigorous IMC in all its communication and the message of fun and

happiness is constantly promoted in all communication that Omore does!!!

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THANK YOU