HICO Ice Cream

Sania Moazzam

Sunday, November 24, 2013

Issues with HICO

Weak Positioning

•No association with happiness•Low quality product•Unattractive packaging

Weak Marketing

•Unaware of 100% pure & natural ingredients•Nobody knows HICO exists since 1952 •Do not remember any campaign

Methodology

Primary Research

QualitativeConsumer Feedbacks

Retailer Interviews (6)

QuantitativeConsumer Survey

(64 questionnaires)

Methodology

Retailer Interviews Haidery Super store

Lutf Mega mart

Cakes & Bakes (DHA)

Shaheen store (DHA)

Shaheen General store

S Mart

Retailer Interview Questions 1. Which brands of ice creams do you keep in your store?

2. How many freezers in total do you have?

3. About how many customers buy ice cream in a day?

4. What is most preferred brand in ice cream among customers?

5. What do you think the reason of its being the most preferred brand?

6. Do customers usually prefers family packs OR bars/stick/cones?

7. Which brand gives you the best margin on sales?

Retailer Interview Questions 8. Do you remember any of its marketing activity/campaign or ad?

9. Which factor do you think affects the most when consumer is buying Ice Cream?10. What is the major reason of not keeping HICO in your store?

11. What type of issues you have faced regarding HICO Ice cream?

12. In your opinion how can HICO increase its market share and attract more customers?

13. What type of customer usually buys Ice Creams?

14. What is your view about HICO Ice cream

Survey Respondents

male 39%

female61%

Gender

Below Rs.50, 0006% Rs51,000- Rs.

99,99916%

Rs. 100,000-Rs. 149,000

31%

Rs. 150,000 & above

47%

Family income

20-Oct23%

21-3053%

31-4013%

above 4111%

Age

Research Findings

50%

9%11%

14%

8% 8%

What brand comes to your mind when you think of ice cream?

walls omore gourmet hico yummy others

walls53%

omore17%

gourmet5%

hico14%

yummy5%

others6%

Which brand of ice cream do you prefer the most?

Research Findings

quality19%

flavours23%

taste31%

availibility14%

pricing 8%

brand name3% others

2%

What are the reasons for choosing the brand?

Research Findings

happiness19%

cheap31%fun

13%

cold25%

others13%

What comes to your mind when you hear the word "HICO Ice cream"?

Research Findings

yes3%

no97%

Do you remember any ad or promotional campaign of HICO ice cream?

Research Findings

yes13%

no87%

Can you recall HICO's tagline or logo?

Research Findings

everyday8%

once a week44%

special event42%

never6%

How often do you consume ice cream?

Research Findings

cup20%

wafercones31%

sticks/bars23%

ice lollies5%

family pack20%

In what way do you like consuming ice cream?

Research Findings

weddings13% parties

7%get togethers

7%casual hangouts

74%

On what occasions do you eat ice cream?

Research Findings

Retailer Interview Analysis

Haidery Super Store

Lutf Mega Mart

Cakes & Bakes

Shaheen store

Shaheen General Store

S Mart

BRANDS you keep in your store?

Walls & Omore

Walls, Omore, Hico & Yummy

Walls, Omore & Hico

Walls & Omore

Walls & Omore

Walls & Omore

# of freezers Two Two Three One Two Two

Most preferred brand from customers

Walls Bars/conesWalls

HicoFamliy packs

Bars/conesOmore

HicoFamily Packs

Omore Omore Walls

Best Margin Walls Almost same

Almost same Almost same

Omore Almost same

Reason of being most proffered

Strong advertisement

Don’t know Event/ functions

Price Price Popular, especially Cornetto & feast

Haidery Super Store

Lutf Mega Mart

Cakes & Bakes

Shaheen store

Shaheen General Store

S Mart

Family packs/ stick/cones

Depends on age

Depends on age

buckets and family packs

Sticks, less family packs

Family packs for guests

Cones & sticks for individuals

View about HICO Ice cream

Popularity and sales declining

Good ice cream but market leader Walls

Good product but not market leader

Old ice cream brand

Salesmen make only 1 visit in a month

No Hico ice cream starting between Rs.15-Rs. 25

Awareness of marketing campaign

Boards in front of shops when launched

In-store marketing

No. Can’t recall any

No. Can’t recall any

Marketing done when launched

No. Can’t recall any

Factors affecting purchase

quality and taste

Price and taste

Quality and variety

Colors & shape: kidsTaste: adults

Quality and brand name

Brand name

Haidery Super Store

Lutf Mega Mart

Cakes &

Bakes

Shaheen store Shaheen General Store

S Mart

Reason of not keeping HICO in store

Low demandmelts quicklyshort supply, less variety

N/A N/A Less space, Distributor never approached.

Supply issues

Less space,Hico not contacted them

Type of customers usually prefers HICO

N/A Families Age 40 & above

N/A N/A N/A

Issues faced regarding HICO Ice cream

Short supply, less demand, melts quickly

seasonality effect

?? Weak distribution

Weak distribution marketing

Type of customer usually buy Ice Creams

SEC A & B, 15 yrs +

SEC A and B, kids

SEC A&B, all ages

Children Children, ladies

All ages

SWOT Analysis

Internal Factors

Strengths

• Pioneers

• 100% pure dairy ice cream

• Unique flavors

• Family packs

• Strong institutional buyer

base

Weaknesses• Weak marketing • Weak positioning • Limited availability • Low brand equity• Less focus on

bars/cones/cups• Unattractive packaging• Short supply

External FactorsOpportunities

• Large untapped market

• Ice Cream parlors

• Co-branding

• B2B-Marriage halls/caterers

• Strong demand for ice

cream

Threats

• Large market share of

competitors

• Legal and ethical issues

• Economic recession

• Political instability

Competitive Analysis

Strengths

• Heritage• 100% pure dairy ice cream• Unique flavors• Customer loyalty

HICO

Unique Strengths

HICO

Family take away packs

Offers diet ice cream

Co-branding strategy with

‘Oreo’ Strong institutional buyer

base

Weaknesses

• Weak marketing• Weak positioning in consumers’ minds• Low brand equity• Unattractive packaging• Small distribution

HICO

Opportunities

• Large untapped market to grow its business• Move beyond niche marketing• High sales figures in winters

HICO

Threats

• Introduction of new flavors and products from Walls• New e.g. Omore/ Nestle Movenpick

HICO

Perceptual Map

High Market Share

Low Market share

WeakMarketing

Strong Marketing

New Strategy

• Rebranding– Changing peoples perception about HICO– We will generate recognition among target audience

• New campaign – creation of positive perception about HICO as there is lack of

exposure. – Consumers are not aware of the any sort of message from the

HICO brand

New Strategy

• Boosting HICO by engaging in creating advertisement

– HAPPINESS

– CAUSAL HANGOUTS

– FRIENDS

– FUN

New Strategy

Market Segmentation

Demographic Segmentation

Gender Both males and females

Age (10-50) Children, Teenagers and Families

Social Class SEC A and SEC B

Market Segmentation

Geographic Segmentation

Urban population

People living in cities:•Lahore•Karachi•Islamabad•Faisalabad•Multan•Sialkot

VALS Framework

Ideals

• Thinkers• Believers

Achievement

• Achievers• Strivers

Self-expression

• Experiencers

• Makers

Innovators

Survivors

High InnovationHigh Resources

Low InnovationLow Resources

1. High resources2. New &

unconventional3. Open-minded4. Fun-loving5. Fashion6. Socializing7. Entertainment

New Strategy

Brand Personality Fun Loving

Brand Personification “Fun loving, jolly and sparkling people”

New Strategy

Purple

Symbolizes mystery, magic, power and luxury

Appearance of something that is fun and easy to do

New Strategy

Peripheral Route to Persuasion

Low Involvement Product

HICO fulfills the “Social” needs of an individual.

Maslow’s Hierarchy

Theory of Needs

Having HICO fulfills Need for Affiliation

HICO’s New Logo

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Hico Kiosk

TVC

Thank You