Walls cornetto report

Industry Analysis Overview The main objective of industrial analysis is to assess the prospects of various industrial groupings. At any stage in the economy there are some industries which are growing while others are declining, the performance of companies will depend among other things upon the state of the industry as a whole and the economy. If the industry is prosperous, the companies within the company may also be prosperous although a few may be in bad shape. The share price of the company is empirically found to depend up to 50% on the performance of the industry and economy. To analyze the industrial performance one should follow the three steps.

* Industry life cycle analysis * Study of structure & characteristics of an industry * SWOT analysis Ice Cream Industry Profile The ice cream in Pakistan is in many ways, reflective of the overall population distribution. The country’s population is primarily rural with approximately 65% of the population in villages and 35% of the population live in urban areas of Pakistan. . A dominant market share of 52% is with the unbranded ice cream vendors and artisans which is mainly due to low per capita income. The remaining 48% of the market share is divided among 5 major companies.

The other strength is that it is serving in all four provinces of Pakistan. As well as it has the largest range of varieties, flavors and packaging of ice cream. Also it has the most extensive distribution system with about 1500 retailers and 40, 000 outlets all over Pakistan. The other main strength of Walls is that it has two manufacturing plants and has the latest technology installed with a total production capacity of about 13000 liters per day. It has very strong promotional campaign through various mediums such as TV, Billboards, magazines and Newspapers. The weaknesses of Walls are that it charges a high price than its competitors as well as being a market leader they don’t have their own ice cream parlors and they mainly focus on the youth.

Ice cream is a perishable item and the electricity failure has really created problems for the company, actually they incurred huge losses due to this as lots of theirs stock losses its quality and melts. There clear top freezers cannot retain required temperature for more than 90 minutes. Omore OMORE ice cream is a famous ice cream brand in Pakistan. It is manufactured by Engro Foods Limited. As a brief introduction, Engro Foods Limited is a multipurpose manufacturing company.

Hico has a fully automatic ice cream manufacturing facility, and has a production capacity capable of producing more than 4. 5 million liters of dairy ice cream a year. The weaknesses are that they don’t have proper brand positioning in the minds of the consumers therefore the brand equity of Hico is very low. They have a very limited variety of their products with limited flavors. Also they don’t have strong distribution system due to which Hico is not available in all major retail stores. They are also only available in major cities of Pakistan due to which they have a very little market share as compared to other competitors in the market.

Due to limited resources they do not spend much on the promotions and are far behind from major competitors in the industry. Gourmet: Gourmet ice cream is a product of Gourmet Foods (Pvt. ) Ltd. The main strength of the Gourmet ice cream is that it is targeting all classes and charging very premium prices for their ice cream products. They have their own manufacturing plant and have a very strong distribution system with quality products. They are very much popular in Punjab and especially in Lahore.

Weakness: 1) The durability of ice cream is not really good. 2) It melts very soon. 3) The industry has a complex supply chain management and the main issue is traceability. Opportunities: 1) They can come up with new flavors. 2) They should focus more on their advertising and marketing strategies. 3) They should use the market expansion strategy with new 4) Threats: 1) Currently, the threat of new viable competitors.

2) Foreign players entering the market. 3) Consumer buying power also represents a key threat in the industry. ) Consumer can switch to other substitutes with little cost or consequence. Executive Summary Icy Heart (Pvt. ) Ltd is a hypothetical start up. It is set up by two techno-entrepreneurs who found opportunity to set up an ice cream company in Pakistan.

Walls is leading the market; capturing a market share of about 45%. Omore bags second position; capturing a market share of about 15%. The other small manufacturers holds single digit market share. Icy Heart after a detailed analysis has found that its major competitive advantage is the assured access to good quality raw material at a very reasonable cost, and its ability to scale up operations within first two years by introducing new flavor and by acquiring high market share in major cities of Pakistan. Icy Heart is aware that a big player likeNestleis also eyeing this highly attractive segment for entry which will put pressure on margins in the future.