“WHERE WILL I FIND MY CORNETTO?”

Distribution channel plays a very important role in any marketing mix, as this is what determines how the product will reach the product for who the product was designed. There are many factors that determine the channel through product will be sold. If the products are perishable goods, then they are sold through smaller chains and easy shops or maybe delivered by the company itself from the point of production.

 In case of Cornetto, this being an ice cream that melts in warm weather, and India being tropical region requires cold storage facility investment.

Kwality Wall’s Cornetto are not only sold through retail outlets but also small Paan shops, Kinara stores (small local grocery stores) who keep small cold storage facility or refrigerators to keep items cold. At times, the Kwality Wall’s itself invests in the retailer’s shop to buy a refrigerator to keep ice creams, thus giving them an edge over other Ice cream manufacturers.

Also, the most profitable channel is the small cart puller with a freezer storage, which we usually see outside schools and colleges. They are the most effective as they reach faster the kids and can be easily helpful in attracting the potential customer.

Think of a day, when you are waiting for the bus stop for the bus to come. And that Ice cream wala comes ringing the bell. It makes you want to stop him and order something. And, many people do that.

Hence, we can say that channels should not restrict us, but rather be flexible enough to reach the customer than wait for the customers to come to them.

THE MONETORY WORTH OF KWALITY WALL’S CORNETTO

“What should be the price of my product?” is a question every manufacturer, research and development team and marketer asks each other. They all want to come to a price that will not only be too low nor too high. (Please see we are talking general FMCG goods, and not premium brands like Pringles but something like Lay’s). At the same time, the price should be such that it provides profit as well as a competitive advantage.

There are several pricing strategies companies use, like:

1.       Survival – prices are low, covering only the variable cost and the fixed costs.

2.    Maximum current profit – a price that would give companies maximum profit in the current situation.

3.    Maximum market share – prices are kept low to ensure high penetration in the market.

4.    Maximum market skimming – prices are kept high, so as to attract only select customer.

5.    Product quality leadership – prices are too high and are meant for only a section of society where brand and class is important.

6.    Other objectives – A NGO or government college looking only for partial recovery.

What pricing strategy does Cornetto use?

Cornetto uses a maximum market share pricing strategy. All the flavours under Cornetto are priced between Rs20 to Rs.45 with a weight of 45ml-125ml. The cheapest one priced at Rs. 20 is a simple chocolate flavored cone. And, as the flavors improve form exotic to two flavors in one cone, the price rises and so does the weight.

Because of this strategy, it is affordable by large masses than just select few. They thus, have become a popular choice among the kids at school or college. They are just pocket friendly.

MY PRODUCT –

KWALITY WALL’S CORNETTO

Product is the first and most important element of the marketing mix. Product strategy calls for making coordinated decisions on product mixes, product lines, brands and packaging and labeling.

In planning its market offering, the marketer needs to think through the 5 levels of the product, namely:

Now, let’s understand how does Cornetto provide the consumers these benefits

CUSTOMER-VALUE HIERARCHY – PRODUCT LEVELS

1. When the customer buys Cornetto, he is buying a cold dessert, initially to leave a cold taste in the mouth. (Core Benefit)

2. The consumer who will buy Cornetto will now convert core benefits to basic products like it will be served chilled and will not have a soggy cone.

3. At this level, the marketers try to come up with what consumer expects from the product, like the flavors will be tasty and rich.

4. At this level the marketer establishes the Cornetto as a product that gives more than the product, bringing in the brand and the value it will hold for the consumers. (augmented product)

5. Finally at this level, Cornetto is transformed into something it was not augmented and come up with the potential product, like the smaller pack at lower price for school and college children as their pocket money is low.

Now, let us try to put the Kwality Wall’s Cornetto (a part of HUL) in the product mix and see where it fits.

PARTICULAR	DESCRIPTION
Need Family	Beating the heat, hunger
Product Family	Food
Product Class	Dessert
Product Line	Ice Cream
Product Type	Frozen cone
Item	Cornetto itself
Width of the Product Mix	The stick ice cream, fruit based ice cream, dry fuits based ice creams, home pack sundaes
Length of the Mix	4 items
Depth of the Mix	Cornetto double chocolate, Butterscotch, Coffee, chocolate, pistachio
Consistency	Travel through closely related channels as other products