DEPARTMENT OF MANAGEMENT SCIENCES

“RE-LAUNCHING OF HICO ICE CREAM FOR MIDDLE CLASS

TARGET AUDIENCE”

GROUP MEMBERS NAME:

 MAHNOOR BAQAI
 DR. HAMZA
 SHEHARYAR KHAN
 DR. RADIF

SUBJECT: MARKETING MANAGEMENT

PROGRAM: MBA

SUBMITTED TO: M/S NIDA SHAUKAT

INSTITUTE: INSTITUTE OF BUSINESS MANAGEMENT

DATE OF SUBMISSION: 17TH.DEC.2022

 CONTENTS
ACKNOWLEDGEMENT............................................................................................................3
DIVISON OF WORK....................................................................................................................4
CHAPTER 1: INTRODUCTION................................................................................................5
CHAPTER 2: MARKETING MIX..............................................................................................7
CHAPTER 3: MARKETING PLAN & SEGMENTATION...................................................10
CHAPTER 5:BREAKEVEN ANALYSIS.....................................................................................
CONCLUSION ...........................................................................................................................19
TVC AD........................................................................................................................................20
BIBLIOGRAPHY........................................................................................................................21
 ACKNOWLEDGEMENT

We express our deep sense of gratitude to our respected Instructor of Marketing

Management, Ma’am Nida Shaukat, whose valuable guidance has been the one
that helped us patch this report and make it foolproof success. Her
suggestions and instructions have served as the major contributor towards the
completion of this report.

We would also like to thank our parents and friends who have helped us
with their valuable suggestions and their guidance has been helpful in
various phases of the completion of this report.

Lastly, we would also like to acknowledge our classmates who have helped us
wholeheartedly with our project

Group Team Members.

DISTRIBUTION OF TASKS:

SHEHARYAR

1. Main outline of the case

2. Introduction
3. Issues in current market
4. PEST Analysis

DR.HAMZA

5. Current marketing mix (4Ps)

6. Target Audience (Primary & Secondary)
7. SWOT
8. Solution

MAHNOOR

9. Marketing plan
10. Market segmentation
11. Product decisions
12. Promotion decisions

DR.RADIF

13. pricing decisions

14. break even analysis
15. conclusion & bibliography
1. MAIN OUTLINE OF THE CASE
The purpose of this case is to research and evaluate the reason for the failure of Hico
and relaunch the product on the market with a new and better marketing strategy. In
this case, Hico's strengths and shortcomings are analyzed, and strategies for growing the
company's clientele are offered.
Our project offers recommendations on ways to enhance its marketing efforts and
competitive strategies for further penetration in the middle-class market. Changing
Hico's perspective toward the customer is the main goal of our project. We propose a
marketing strategy that is vastly different from the one Hico is currently using.

2. INTRODUCTION
Lahore serves as the headquarters for Hico, which stands for Happy Ice-cream Company
which was founded in 1965 and belongs to The Pakistan Fruit Juice Company Private
Limited division. Additional subsidiaries of the same corporation include RC and Flora
juice. Lahore is the base of Hico's sole ice cream manufacturing facility, from where they
export ice cream to all other Pakistani cities. Later in 1997, it grew its business and
began operating in additional locations, such as Peshawar, Karachi, Rawalpindi, and
Faisalabad. For those individuals who have diabetes or people who are concerned about
their diets, Hico seems to be the sole business that sells diet ice cream. Hico has ice
cream for almost every niche.

The history of Hico ice creams is its greatest asset. Industrial purchasers and regular
customers used to line up at the plant to purchase ice cream, as stated by the company
management. At first, Hico didn't sell its products in shops and bakeries. Customers
used to visit the factory to purchase ice cream. In order to broaden its reach, Hico
launched the pushcart system in 1990 to target the city's many neighborhoods, such
as schools, universities, and communities. Hico began offering orders to be delivered at
home in 1995 but could not keep it up for much longer because it was not a practical
choice for the company if they intended to appeal to a wide range of customers.
This company has distributed its goods throughout Pakistan's many cities. Omore and
Walls are the main competitors to them. Due to the tasteful nature of their product and
its limited distribution through certain channels, they want to adhere to the (Prestige
pricing) strategy. Within the marketplace, Hico has rivals too. Lever Brothers' subsidiary
is Walls Ice Cream which was founded in 1956 in Pakistan. Another company named
yummy ice creams was also a significant rival. Established in July of 1981. The Firm had
deficits in 1989 and was acquired by the current investors, who brought improvements
to the Performance of the firm. The third main rival of Hico is Rocco. Prime Yogurt was
developed by the organization, which is officially known as Prime Dairies Limited.
Originally, the firm operated in the manufacturing industry, and its proprietors were
 engaged in the import and sale of textiles. Rocco ice cream began in the Lahore and
Karachi markets in July 1985.

3. ISSUES IN THE CURRENT MARKET

Hico company was Started in 1965, to strengthen their organization, they set up a
competent marketing and sales team in 1997. Hico Ice-creams’’ poor marketing is its
main flaw. This further results in wrong positioning in customers' views. Due to
improper positioning, Hico's corporate reputation is extremely poor.

Although Hico ice cream is a well-known brand, customers have a very negative
perception of it. The survey's findings indicate that consumers view Hico ice cream
simply as a secondary option and frequently avoid making repeated purchases.
Furthermore, not all big retail outlets carry Hico conveniently. It also suffers distribution
issues as a result. Hico seems to have a sizable industrial demand for the products in
addition to the customer base. Avari Hotels, Gym Khana, and Heera 36 are a few of
them. Its consumer market growth and long-term profitability depend on marketing.

Additionally, Hico excels at family takeout containers. Families often favor Hico ice
cream tubs as well as other family bundles. Due to their busy schedules, we found that
several working women lack the time to prepare and make dessert. In light of this, we are now
introducing a frozen product—a frozen dessert called "Hico Ice Cream"—to the market for
individuals who simply don't have the time to prepare such time-consuming foods. Our offering
of high-quality, healthy, and hygienic frozen desserts at a reasonable price makes our product
unique. in order for everyone to purchase the items with ease

High quality, unique tastes, and ease of accessibility are the fundamental market
requirements. Hico will only be able to fulfill such requirements with an effective
marketing strategy, plan, and implementation.

4. PEST ANALYSIS
The PEST analysis is a method often used to find risks and possibilities in the outside
world. Following is Hico's PEST analysis:

POLITICAL FACTORS:
HICO is not favored by the tense and violent political climate that exists in Pakistan at
the moment. Desserts and ice cream are two examples of foods that people enjoy
eating while relaxing in parks, restaurants, and other public places. However, because of
the current wave of crime like snatching, target killing, and deaths during robberies,
etc., people are choosing to remain at home.
 ECONOMICAL FACTORS:
The struggle against terrorism and inflation has significantly worsened this nation's
economic situation. our country is at a verse of bankruptcy which has devalued our
currency and the loans from IMF are also one of the major reasons for inflation. The
people that belong to the middle class no longer have the means to purchase such
extravagances due to a significant decline in their buying power.

SOCIAL FACTORS:
The social elements in Pakistan's major cities, including Lahore, Karachi, and Islamabad,
are to HICO's advantage. In these places, the idea of outdoor dining is gaining
popularity. Due to their frustrated and busy schedules, people want to spend their
weekends with their friends and family hanging and dining out. We will also market this
product through Karachi's major retailers, Naheed and Imtiaz and our main target
audience will be the Middle class.

TECHNOLOGICAL FACTORS:
Only one regional ice cream manufacturer, Hico, has been able to keep up with both
technological advancements and changing consumer demands. Hico's factory serves as
the foundation of its enterprise. Its items are its primary emphasis, and to sell them, it
uses all the advanced technology for marketing and advertising.

CURRENT MARKETING MIX

(4Ps)

PRODUCT:
• First brand to manufacture dairy ice cream in Pakistan in 1958.
• Considered a favourite brand of home town Lahore.
• Ice creams and lollies sold but main focus is on ice-creams and quality product.
• Chocolate, chocolate fudge, chocolate chip, coffee, cookies and cream, Mango,
Pistachio, Praline, Strawberry, Tutti Frutti, vanilla and Kulfa.
• Ice lollies are Apples, Orange and pineapple.
• Small packs, sticks, cones and 0.1 litre cups.
• They target health conscious people with diet ice-creams.

PRICE:
• Being a national company, prices are lower than major competitors.
• But, they increase their prices as the competitors increase theirs's.
 PLACEMENT:
• Serves Lahore, and has a presence in Karachi, Faisalabad, Multan, Rawalpindi and
Peshawar.
• Supply is low compared to demand caused by it being a pure dairy product.
• Very few outlets, mostly factory and large retail stores.
• Smaller shops can’t afford to keep purchased stock.
Trolleys not present like competitors so less mobile.

PROMOTION:
• Hico does not do proper formal advertising through TV, internet, radio etc; the most
common mediums of communicating with mass audiences targeted by Hico. However, it
does print some ads on some magazines and sometimes, uses local cable channels for
advertising.

TARGET AUDIENCE:
• It includes:
• Kids
• Teens
• Families.

SWOT ANALYSIS & STRATEGIES FOR RELAUNCHING:

16.MARKETING PLAN
Marketing Research Survey:
SURVEY ANALYSIS:

From the following survey it has been concluded that our targeted audience i.e. Middle Class to Upper
class, prefers to eat ice creams on special occasions. As Asian Market is family-oriented, therefore they
prefers family packs usually to share the treats with them. They are familiar with the Hico Brand,
however they prefer other brands over Hico Ice Cream due to the unavailability or invisibility or least or
no promotions by the brand. The results are indicative of a problem with Hico’s strategy. Not having a
promotional or marketing strategy can jeopardize a product’s sale and put its future at stake as
respondents can’t able to recall any promotional activity or campaign associated with Hico
MARKET SEGMENTATION:
As per our product the market segmentation is as follow:

a) Demographics:
Hico has ice-cream for nearly all demographic segments. They have Ice Lollies and Creamy Pops
for kids. For teenagers they are offering Mega New Bar, Mega Cone and Cups. For the families
they have all there flavors in family take away packs.

b) Psychographics:
Social Class: Post Moderns,
Lifestyle: By this product we are giving the joy of 100% pure dairy ice cream to our target
audience i.e. middle class and upwards, to make their hangouts and events more special and
memorable.

c) Behavioral:
 Attitude:
Positive, lively, energetic.

 Benefits:

Quality with affordability.

d) Geographic:
As our product is based on middle-income class to upper class. Hico has setup their head-
quarter in Lahore and Warehouses and distribution hubs were opened in the major Pakistani
cities. Refrigerated reefer vans were procured to ensure that the ice cream stayed at the
optimal temperature from factory to warehouse to retail outlet. Hico is now available in 3000+
outlets across Pakistan, and is aggressively expanding to new cities. From a production capacity
of a few hundred liters in the early 2000’s, they now have a production capacity of over 50,000
liters per day.
SUGGESTIONS FOR NEW MARKETING MIX STARTEGIES:

Product:

Hico has vast range of fl avors which includes Chocolate, Chocolate fudge, Chocolate Chip,
Coff ee, Cookies and cream, Mango, Pistachio, Praline, Strawberry, Tutti-Frutti, Vanilla and Kulfa.
The Ice lollies are in Apple, Orange and Pine apple flavors. Hico’s main focus however is on high
quality standard, with their pure milk dairy ice-cream which they try to maintain throughout
Pakistan. All of their ice creams have an appealing and wide variety of packaging but that definitely
lags behind the competitive packaging and other techniques of competitors. In addition to their
existing product line, Hico can introduce frozen desserts like ice cream sandwich. They can also
introduce a sharing cups and friends can share it under the campaign of “Baant lo Khushiyan” and
can also introduce sugar free ice creams by using Stevia in it for diabetes and health conscious
patients to enjoy their guilt-free treats under the campaign of “Sehat Mand Pakistan”. Hico will also
introduce Environmental Friendly sustainable packaging and products under the campaign of “GO-
GREEN”.

ANSOFF MATRIX OF HICO ICECREAM:

Market Development: HICO ice cream is launching for Middle Class target audience, therefore the
product is existing however, Market is new so Hico includes in Market Development of Ansoff Matrix.
MASLOW’S HIERARCHY OF NEEDS:

In Maslow’s Hierarchy, Hico ice cream come under the psychological needs because of the food
category however, it also fulfills the social needs as well.

Price:
Their pricing strategy is set according the prices of their competitors. When the price of O’more and
Walls goes up, they also increase their price according. However, Hico is launching for Middle-Class
target audience while maintaining the quality of the products so their pricing would be according to it
which justifies the value for money along with the quality with affordability.

Place:
HICO has specialized trucks for the distribution of their products. The ice cream is directly distributed in
Lahore and other cities like Karachi, Islamabad and Faisalabad. In other cities, the ice cream is first taken
to freezers, and then to the retailers. Their sole purpose is to make their ice cream accessible to people.
HICO will provide its retailers with refrigerators to maintain the temperature required to maintain the
quality of the Ice Cream and provide quality product to the end consumer.

Hico will also introduce the cycle and bike distributors of ice creams to distribute and sell their products
on public places like Parks, Sea Side etc. and to different areas of the city in order to increase the sales
revenue as well. Hico also partnered with Foodpanda and Cheetay to distribute their products in all over
Pakistan.

Promotion:

HICO lacks a bit in marketing and promotion. It is an old brand and is serving customers since decades
and it has never been visible on electronic and print media.

Hico will promote their products and launch various campaigns under the model of IMC (integrated
marketing communication) based which can be defined as: a series of efforts used to amalgamate
marketing tools and methods altogether, such as public relations, social media, audience analytics,
business development principles, and advertising, to create a distinctive brand identity which represents
it across all mediums of promotions. It benefits the organization greatly to create an image in customer’s
mind by engaging them and giving unified consumer experience.

Hico will introduce their sharing cups under the campaign of “Baant Lo Khushiyan” and sugar-free ice
creams for diabetes patients and fitness freaks under the campaign of “Sehat Mand Pakistan”.

Hico will also introduce “Happy New Year” campaign and provide gifts through a Lucky Draw on the
purchase of family packs and mini Hico Toys like Hico clown’s miniature for kids with creamy pops and
iced lollies.
Hico can also provide discounts and gift hampers for the distributors and retailers as well in order to
encourage them to restock the stock of Hico ice creams.

Hico will also introduce the testers of their different flavors via Personnel Selling on Departmental
Stores (imtiaz, Naheed, Aghas etc), retailer shops, shopping malls etc. in order to take feedback from
customers for further improvements and increase the demands of their products.

Hico will also incorporate Direct Marketing through their ads on newspapers, magazines, bill-boards,
bus shelters, buses, bus benches, taxis, in-flight, sponsorship of various events like Karachi-Eat Festival,
T-20 Cricket World Cup, Stadium, school and college activities etc.

Hico will also collaborates with influencers and vloggers by sending their tasters and gift hampers for
referrals. Hico will also collaborates with various cooking channels and cooking shows like Food Fusion,
Morning shows, Masala TV etc. in order to promote their products.

Hico will also utilizes the social media platform and internet and website through their official pages on
social media, website, pop-up ads, and mini web series on YouTube etc. Hico will also do Guerilla
Marketing to place Hico Clowns in public places like Shopping Malls, Adventure Parks, Hyperstar etc. to
attract the primary and secondary target audience and to make them familiar with our products.

Hico will also practice Public Relation and Corporate Social Responsibility through charity programs like
donations to Shaukat Khanum Hospital, Edhi Foundations etc. and Go Green campaign of planting trees
and environmental friendly packaging and products. Hico will also introduces various discounts and
offers on various religious and non-religious festivals as well.

PRICING STRATEGIES:
As Hico will be launched for Middle class, following are the strategies use for their SKUs.
ICED POPS & CREAM POPS- 30-40RS EACH
CUP- 50RS EACH

FAMILY PACK- 400 (800 LITRE) -650RS (1600 LITRE) EACH

BREAK-EVEN ANALYSIS:

ICE POP/CREAM POPS CUP(RS) FAMILY BOX (RS)

(RS)
SELLING PRICE 30 50 400
LESS: COGS 15 25 200
LESS: EXPENSES 15 25 200
NET INCOME 0 0 0
(BREAKEVEN)
CONCLUSION:

Hico was the first ever Ice Cream Brand of Pakistan. It has great quality of product, their pricing is also
good but hico is lack behind in promotion of their product and placement of their product. Hico needs to
work on their promotion and relaunch their product and using new marketing channels and also
increase their distribution channels and work on building good and strong relationship with vendors.

TVC Ad:

Brand Personality: Happy, Confident, Cheerful, Extrovert, Fun-Loving.

Brand Ambassador: Bilal Abbas

Psychographics: family-oriented, Asian culture, Colors ( Purple and White)

Purple symbolizes luxury, power, magic, fun, however, white symbolizes Purity and represents 100%
pure dairy ice cream.

Scene 1:

Ad starts with a family playing with a toddler and offer a Hico Ice cream Cup while playing and
feeding him a meal (as Hico is 100% dairy ice cream).

Scene 2:

Ad transition to the tweens age of child and playing cricket in a row (galli ki cricket) and Hico ice
cream distributor comes on bicycle and kid and his friends buying Hico ice lollies and hico creams in a
bright sunny day.

Scene 3:

Ad transition to the after graduation ceremony of the boy where there family celebrates their
achievement by giving him meetha i.e. spoon of ice cream from the family box of Hico Ice Cream.

Scene 4:

Ad transitions and Boy’s family sitting at the girl’s home for the proposal of boy for a girl and when
girl’s family accepted it so girl’s mother brings tray in which Hico Cone ice cream is placed and girl
and boy shares their ice cream cones and Ad ends with the Tagline of Hico “ Sachayy Rishton ka
Meetha Maza”
BIBLIOGRAPHY:

https://hico.pk/

https://pdfslide.net/documents/consumer-behavior-project-hico-ice-cream.html?page=29

coursehero.com/file/132792092/HICO-1docx/

https://www.academia.edu/38835989/Hico_Ice_Cream

https://slideplayer.com/slide/6071870/