MARKETING AND APPLICATION

REPORT OF IGLOO FUN PAKISTAN

Group No 06:

Syed Muhammad Ausaija Jaffri (14545)

Syed Mohammad Mehdi Abidi (13508)

Fartash Ali (12943)

Subhana Saleem (14105)

Taha bin Arshad (14119)

INDUSTRY ANALYSIS:
Ice cream is a well-regarded delicacy that holds a special place in the hearts of people of all ages.

It is associated with emotions of joy, inspiration, and cultural significance in our society. It is

customary to exchange ice cream as a gesture of heartfelt emotions during various religious and

festive occasions. Children constitute the largest demographic of ice cream consumers, and it

brings them energy, happiness, and delight. In addition, ice cream is a popular dessert that is

often enjoyed during outdoor dining and tourism, providing a refreshing scoop. During hot

summer days, ice cream is a preferred way to beat the heat and find relief from the climate,

which explains the high consumption of ice cream in our country.

Various ice cream brands such as Igloo, Walls, Hyco, and Omore are currently competing for

market share, and Igloo has been experiencing a decline in its brand image over the past decade.

Every business undergoes successes and failures, which are reflected in their marketing

strategies, marketing mix, and plans to maintain their brand image and market goodwill. Since

1972, Igloo has been a trailblazer in the ice cream industry in Pakistan, and for many years, it has

been the preferred choice for consumers due to its wide range of flavors with a smooth and

creamy texture, available in various categories. However, other ice cream brands, such as

Movenpick and Alpine Gelato, have challenged Igloo's brand ambassadorship.

COMPANY DESCRIPTION:

The origin of Igloo ice cream dates back to 1964 when Mr. Khalil-Ur Rehman established an ice

cream plant in Chittagong, Bangladesh. However, due to political unrest and civil war in the

region, Mr. Khalil migrated to Karachi in 1974 and renamed the enterprise "Igloo - Ice Cream".

Despite facing stiff competition from Polka Ice Cream, Igloo managed to capture a significant
market share in Karachi and the suburban towns of Sindh province. In 1982, Al-Karam Group of

Companies, a pioneer in the textile industry, acquired Igloo to expand its operations across

Pakistan. However, Al-Karam failed to achieve the desired results, and Pakistan Dairy Products

(Pvt.) Ltd. (PDPL) expressed interest in taking over Igloo's operations. Currently, PDPL is the

leading manufacturer of Igloo ice cream in Karachi, distributing the product through tricycles,

retail outlets, and Igloo Parlors. PDPL owns seven 40-feet containers to hold bulk haulage to

depots in Hyderabad and Baluchistan and 45 vans for delivery to retail outlets. Most of their

sales come from Karachi, where they hold a 40% market share and have a self-owned cold room

depot in Hyderabad, which supplies ice cream to towns in lower and upper Sindh. They have a

total of 8,500 freezers, with 5,000 in Karachi, 2,000 in towns of Sindh, and 1,500 in Baluchistan.

The distributor purchases ice cream from PDPL in cash and sells it to retail outlets on

commission. The distributor owns the cold room and the vans, but the freezers in Baluchistan are

company-owned. The company sales force carries out all marketing and monitoring of supplies

at retail outlets and provides deep freezer maintenance and service facilities. In 1992, Igloo

launched its brand in Lahore, but it withdrew due to a lack of proper distribution sources. It is

now operating in Karachi under the name of Pakistan Dairy Products (Pvt.) Ltd. Despite Al-

Karam and PDPL's efforts, Igloo's expansion in Pakistan has been limited. The reasons and

analytics for Igloo's failure will be discussed further in the next analysis. The revival of Igloo

now depends on proper analytics and strategies that have proven successful for other brands.
SWOT ANALYSIS:

Strength Parameters:

1. The organization has established itself as a pioneer in the ice cream industry in Pakistan.

2. Igloo offers a diverse selection of designs and product categorization, including sticks, cups,

cones, and family packs.

3. Igloo ice cream contains a high milk content, resulting in a more flavorful and creamier

product.

4. Products are cost-effective, catering to customers from all walks of life.

Weakness Parameters:

1. A communication gap still exists between our organization and our customers, which needs to

be bridged.

2. Our product line lacks innovation and planning, which may impede our ability to compete in a

dynamic marketplace.

3. Our distribution policy across the countryside is suboptimal.

4. The first mover advantage, i.e., being a pioneer in the industry and becoming weaker later.

Opportunity Parameters:

1. The market has significant potential for better growth in market share and size.

2. Expansion possibilities are available, which can be leveraged to revive our market position
with new intensive market segmentation.

3. There exist new dimensions to industrial and sales development on the national, rather than

regional, level.

Threats Parameters:

1. The burden of competition and potential user attrition.

2. Power failures and breakdowns by governmental bodies, such as load shedding.

3. Declining brand loyalty and image due to the use of sanctioned freezers for competitors'

products.

ANSOFF MATRIX:

This discourse presents an analysis of the Ansoff Matrix and identifies specific issues concerning

marketing communication and research.

Igloo, a renowned company, adopts three products/market growth strategies, which are as

follows:

1. Market Penetration:

In this strategy, Igloo endeavors to sell more of its existing products to its current markets

through supporting tactics such as price adjustment, promotional activities, and packaging. By

continually modifying its ice cream packaging and offering occasional price cuts.

2. Market Development:

Igloo's strategy of market development is evident in its entry into new geographies, particularly
Pakistan. Igloo exports ice cream to, Karachi, and different areas of Sindh, and has plans to

expand into other parts of Pakistan and is undergoing business consultancy for possible

expansions in different regions of Asia. The availability of a diverse selection of ice cream

flavors in the market is of utmost importance. Innovative and visually appealing packaging can

similarly entice customers to gravitate towards a brand. Cornetto and Magnum are examples of

brands that have effectively leveraged attractive and convenient packaging to augment their

market share. To further cultivate the brand, billboards should be strategically placed in locations

with high pedestrian traffic. These advertisements should be crafted in a manner that captures the

attention of the audience and piques their curiosity about the brand. The billboards ought to be

succinct, coherent, and effectively convey the brand's message. By saturating the city with a

greater number of billboards, the brand can increase its visibility and establish a more prominent

presence in the market. After conducting an exhaustive analysis of the competitive pricing

landscape, this time the Igloo brand is going to offer competitive pricing in comparison to its

competitors.

3. Product Development:

The successful introduction of new products is pivotal for a company's long-term survival and

growth. Igloo's constant introduction of new products like Igloo Chocolate Fundae - 50 Years of

Celebration, Igloo Red Velvet-Real Cake Chunks Being a locally homegrown brand catering to

the Pakistani audience, IGLOO also had to produce flavors that would appeal to the local target

market. As a result, IGLOO introduced a range of localized flavors over time, including

popsicle-like ice cream soda, Imlee Lolly, and Falsa Bar, as well as traditional offerings such as

Lassi, Shahi Kheer, Lal Amrood, Gajjar Halwa, Doodh Sharbat, Malai Kulfi, Badam Zafran, and

more. That has been one of the main reasons for its success. For instance, the exquisite Macho,
energetic Mega, and recently going to introduced new flavors of Kulfi and classic cones have

become a real treat for ice cream lovers and have once again strengthened Igloo's position as a

people's brand that provides a world of great taste. This underscores Igloo's drive to maintain

satisfaction in all segments of the market.

Product Packaging:

Changing the packaging of a product can be a strategic move for attracting more customers and

creating a stronger brand presence. In the case of Igloo Fun ice cream in Pakistan, incorporating

elements from Pakistani culture, such as traditional patterns, colors, or motifs, can make the

packaging more relatable and appealing to the local audience. Additionally, using vibrant and

eye-catching colors that evoke a sense of excitement and joy can create a positive impression of

the product. A unique and innovative packaging design that stands out on the shelves can also

capture customers' attention. This could include a distinctive shape or a functional feature that

enhances the consumer experience.

Telling the brand's story on the packaging can create a connection between the consumer and the

product. Highlighting the origins, values, or special features of Igloo fun ice cream can also

differentiate it from competitors. Clear branding is also essential to ensure that the brand logo

and name are prominently displayed, making it easy for customers to recognize Igloo fun on the

shelves.

Adding interactive elements to the packaging, such as QR codes that lead to fun online content,

contests, or promotions, can engage customers beyond the physical product. Seasonal themes can

also create a sense of novelty, celebrate holidays or special occasions, and encourage repeat

purchases. Additionally, using eco-friendly materials for packaging can showcase the brand's
commitment to sustainability, especially given the increasing awareness of environmental issues.

Introducing limited-edition packaging with unique designs or flavors can create a sense of

urgency and exclusivity, encouraging customers to try the new offerings. Gathering feedback

from current customers on potential packaging designs can also be done through surveys or

social media polls to understand preferences and ensure that the new packaging resonates with

the target audience.

It is critical to conduct thorough market research and test the new packaging before a full-scale

rollout to ensure its effectiveness. Additionally, aligning the packaging changes with any

adjustments in marketing strategies can create a cohesive brand image.

Diversification:

The adoption of product diversification is an effective business strategy that Igloo Pakistan

could consider expanding its operations. The company could, for instance, introduce new

products or expand its existing product lines, such as insulated containers, lunch boxes, or other

outdoor lifestyle products.

· Market Diversification:

Market diversification is another viable option that Igloo Pakistan could explore. The company

could consider entering new geographic markets, either within Pakistan or internationally, to tap

into different customer bases and increase its market share

· Channel Diversification:

Channel diversification is also a potential strategy that Igloo Pakistan could pursue. This could
involve selling its products through new distribution channels, such as partnering with different

retailers, expanding its e-commerce presence, or targeting specific niche markets.

· Technological Diversification:

Technological diversification is yet another option that Igloo Pakistan could adopt to enhance its

competitiveness. The company could invest in and integrate new technologies into its products,

making them more advanced or appealing to a broader range of consumers.

· Strategic Partnerships and Acquisitions:

Strategic partnerships and acquisitions are also effective methods of diversification that Igloo

Pakistan could consider. The company could form strategic partnerships or alliances with other

companies in related industries to leverage each other's strengths. Acquiring other businesses in

complementary industries can also be a way to diversify operations.

· Brand Extensions:

Igloo Pakistan could consider introducing sub-brands or brand extensions to cater to different

market segments or consumer preferences. Such an approach would enable the company to

expand its reach and cater to a wider range of customers, thereby enhancing its competitive

advantage.

CHANGING IN PRICING STRATEGY:

We use the Penetration pricing strategy. Penetration pricing involves setting a relatively low

initial price for a product to gain a significant market share quickly. This approach is particularly

suitable for the ice cream industry in Pakistan for several reasons:
 · PRICE SENSITIVITY IN THE MARKET:

Pakistan has a diverse consumer base with varying income levels, and as a result, many

consumers exhibit price sensitivity. It is important to note that a lower initial price point has the

potential to attract a larger customer base and should be considered as a viable strategy.

· Stimulating Demand:

The implementation of a penetration pricing strategy can potentially drive up the demand for a

product by expanding its reach to a wider audience, as it becomes more accessible with lower

prices. As the popularity of the product increases, the organization can gradually raise the prices

while leveraging the heightened demand. This approach can be particularly effective in

generating consumer interest in a new product, as well as for businesses that aim to penetrate a

new market.

· Market Expansion:

To attract a larger customer base for premium ice cream, it may be advisable to consider

implementing a strategy of lower prices. This approach has the potential to broaden the product's

appeal to individuals who may not have previously considered purchasing it. By expanding the

company's market reach, this strategy can lead to increased profits and improved overall business

performance. Given the high price point of premium ice cream, lowering prices may be a

particularly effective way to create a competitive advantage in the market. By doing so, the

company can demonstrate a commitment to meeting the needs and preferences of a diverse range

of customers.
BRAND PORTFOLIO COLLECTION:

In the last five years, PDP has diversified into the chocolate business and launched The

Chocolate Factory, which manufactures B2B products, such as cooking chocolate slabs and

chocolate covertures to bakeries. “The chocolate market was growing, and we used to import

chocolate from Belgium, but it was becoming expensive with the depreciation of the rupee, and

procuring it locally had quality issues. So, we set up our plant, imported raw cocoa, and

produced quality chocolate using our recipes,” says Karim Teli.

Two years ago, The Chocolate Factory set up a new plant to manufacture chocolate chips which

are supplied to biscuit manufacturers. “The bakery culture has evolved so much, especially in

Punjab and today you find chocolate chips in kheer, trifles, and chocolate mousse, as well as

home baking.”

Another new venture under the PDP umbrella is Homemade, a brand launched two years ago that

offers frozen chapatis, parathas, and puris. According to Tharani, the company has an edge over

others in this category because of its end-to-end cold chain structure. Homemade has a five

percent market share in this category.

BCG MATRIX :

· STARS

Stars are products of Igloo Fun Ice Cream in Pakistan, the new and popular ice cream flavors

gaining significant traction in the market can be categorized as stars. These products have the

potential to generate substantial revenue and drive growth.

 · QUESTION MARKS/PROBLEM CHILD

Question Marks or Problem Children are products that have a low market share in a rapidly

growing market. Igloo Fun's recently launched, or less established ice cream flavors might fall

into this category. These products require additional marketing and investment to increase their

market share and transform them into stars.

· CASH COWS:

Cash Cows of Igloo Fun Ice Cream, the classic and popular ice cream flavors with a stable

market share can be considered cash cows. These products generate steady revenue and require

minimal investment to maintain their position in the market.

· DOGS :

Dogs are products with low market share in a slow-growing or stagnant market. Any less popular

or declining ice cream flavors from Igloo Fun might be classified as dogs. These products may

not be contributing significantly to growth and may require careful consideration regarding their

continuation in the product portfolio.

By using the BCG Matrix, Igloo Fun Ice Cream in Pakistan can analyze its product portfolio and

make informed decisions about resource allocation, investment, and marketing strategies. This

approach can help the company optimize its product mix and drive growth.