final report mkt
DESCRIPTION
marketing projectTRANSCRIPT
Contents
ACKNOWLEDGEMENT.....................................................................................................................2
Corporate profile of CDL......................................................................................................................4
Corporate Mission.................................................................................................................................4
Candia Milk...........................................................................................................................................5
Marketing strategies undertaken for launching “CANDIA”..................................................................6
THE DYNAMIC MARKETING ENVIRONMENT FOR CANDIA....................................................6
PEST Analysis of Candia......................................................................................................................7
Consumer Market Segmentation...........................................................................................................9
Business Market Segmentation..............................................................................................................9
Marketing Mix Designed For Candia..................................................................................................10
Positioning of Candia..........................................................................................................................11
Product Life Cycle...............................................................................................................................11
Branding of packaging strategies.........................................................................................................12
Pricing Strategy and Objectives...........................................................................................................12
Distribution Strategies.........................................................................................................................13
Promotional Mix..................................................................................................................................14
Branding..............................................................................................................................................15
Packaging............................................................................................................................................16
Price....................................................................................................................................................16
Target Age Group................................................................................................................................16
Brand Awareness.................................................................................................................................17
Advertisement.....................................................................................................................................17
Value Added Ingredients.....................................................................................................................17
Unique Selling Point............................................................................................................................17
REASONS FOR FAILURE................................................................................................................18
REPOSITIONING OF CANDIA MILK.............................................................................................20
MISSION STATEMENT....................................................................................................................20
VISION STATEMENT.......................................................................................................................20
CORE VALUES..................................................................................................................................20
INDUSTRY ANALYSIS Livestock sector of Pakistan.......................................................................21
OPPORTUNITY ANALYSIS.............................................................................................................21
Livestock & Dairy Products................................................................................................................22
Marketing Highlights...........................................................................................................................22
Food and Nutrition Analysis................................................................................................................23
MARKET ORIENTATION................................................................................................................23
Inter Functional Coordination..............................................................................................................24
Current Positioning..............................................................................................................................25
Buyer Analysis....................................................................................................................................25
Business Analysis................................................................................................................................26
Competitive Analysis..........................................................................................................................26
Competitor’s profile............................................................................................................................27
Nestle Milkpak Limited.......................................................................................................................27
Royal Dairies Limited.........................................................................................................................28
SWOT ANALYSIS OF CANDIA.......................................................................................................29
USP (Unique Selling Proposition).......................................................................................................29
MARKETING MIX............................................................................................................................29
B C G GROWTH-SHARE MATRIX..................................................................................................30
Repositioning Strategy........................................................................................................................30
Product Strategies................................................................................................................................31
Branding Strategies.............................................................................................................................31
DISTRIBUTION STRATEGY............................................................................................................32
Pricing Strategy...................................................................................................................................32
PROMOTION, ADVERTISING, SALES PROMOTION STRATEGIES..........................................33
ACKNOWLEDGEMENT
We are very grateful to Mr. Awais Khan for teaching us curriculum of
Strategic Management. His versatile knowledge in marketing field and
u n i q u e t e a c h i n g s t y l e h a s d e v e l o p e d o u r k n o w l e d g e a n d c l e a r e d m a n y
m a r k e t i n g concepts. We are all the most grateful to him for assigning this
project, which has further helped us in evaluating many interrelated dimensions of
marketing field. Finally we bestow our thanks to CDL Foods limited and all the people who
has directly or indirectly supported us with their assistance and guidance to compose this
report and accomplish broader vision to visualize things in marketing concepts.
PREFACE
This Marketing Plan is prepared for the course of “Strategic Marketing” on
Candia milk is a product of CDL Foods Limited Pakistan. In this marketing plan we have covered the
industry analysis, target market of the product, pricing, product, promotion, and distribution strategies for
the product. We have given the details about the strategy implementation and details of promotion
budget.
We have covered almost all aspects of the marketing plan.
Corporate profile of CDL
CDL (Chaudhary Dairy Limited) is one of the reputable and renowned companies in
Pakistan. CDL was established in 1984 as private limited company. The company came up
with its first doing product “Haleeb Milk” and later on it continue to expand its product line.
In 1988, CDL introduced “Haleeb cream” which was not only launched directly for consumer
market but also supplied to many ice cream factories where it was used as a core ingredient.
The company has its head office in Lahore and Plant is located 65 Km from Lahore in Bhai
Pheru. The plant is equipped with latest equipment and technology specialized workers
scientist and professional who assure quality at every level of production process.
The dairy industry in Pakistan is very competitive. There are many competitors in
multinational and local industries which portrays an oligopolistic market structure without
product differentiation. In such a cumulative and challenging marketing environment the
strategic management of CDL has been able to maintain its dominant image in the market.
The company has already awarded ISO-9000 in 1997 for strict quality control operational
system. Currently the plant is running with the capacity utilization rate of 90%.
Corporate Mission
CDL has the prime corporate mission of achieving and maintain the high quality. But in
broader term its mission statement states the following;
Providing nutrition’s and hygienically processed food products to our customers at
competitive price.
Enhancing our reputation for quality in all our operation.
Promoting mutual trust with customer, suppliers, employees, and shareholder.
Providing a safe and healthy environment to our community.
Product Line:
Product line of CDL includes the following products:
Haleeb Standardize milk
Haleeb Cream
Asali Desi Ghee
Candia Milk
Skimz Liquid Skimmed milk
Skimz – skimmed milk powder
Candia Drinking Yogurt
Candia Milk
Candia Milk is a product of CDL which was launched first time in April 12, 1999. Candia is a
basically a French brand and it is processed and packed under licensed by CDL. Candia is
already a very popular in Europe and other 52 countries. Now it is available across Pakistan
including all the major Cities through CDL distribution channels. It is very unique in its
packing and features; it is packed in plastic bottles of different sizes 0.5 liter and 1 liter. The
plastic it consist of three layers. The outer and inner layer is white in color and composes of
same formulation of high density Polyethylene. The middle layer is black in color which
protects the milk from heat and light. As far as the packing is concerned Candia has no
competitor in local market. CDL invested around 200 million rupee to launch Candia in
Pakistan. Out of which 10-15 million was only spent on the massive advertising campaign
carried out in world cup season at the time of launch.
Processing
The method of collection of milk for Candia is through the approved suppliers who maintain
cattle in accordance to prescribed standard. Then the milk is tested in laboratory by
conducting a different test. The milk is received in the chiller, containers, and heated up to
8%. After that milk is transported to the factory for processing. The processing of Candia
milk undergoes through 6 different stages:
Firstly, fresh milk is pasteurized. Then it goes from the stage where it is standardized and
homogenized. After homogenization the milk is heated at 140 C, ultra high temperature
(UHT) for about 4 seconds and then it goes for aseptic packaging. After packaging milk is
sterilized and sent to the channels of distribution. One bottle of Candia contains 3.5% of fat
and 8.9 SNF.
Marketing strategies undertaken for launching “CANDIA”
Marketing orientation strategies was adopted by CDL towards launching Candia. In the
marketing orientation stage company identify what customer want and trailer all of the
activities of the firm to satisfy that need as efficiently as possible. Lease feature of marketing
orientation strategy adopted by CDL includes:
The product launch was preceded by market research and need identification\
Pull strategy was adopted because market potential was already identified since UHT (Ultra
High-Temp) sales were increasing.
The product was made by keeping in view the customers need rather than reducing it and
then trying and push sales, as in a selling strategy.
For the want satisfying ability of the product the company specifically aims at image utility
which is the emotional or psychological value that a person attached to the product or brand
because of its reputation or social standing. However, the image utility of Candia varies
considerably depending on different consumers perceptions.
THE DYNAMIC MARKETING ENVIRONMENT FOR CANDIA
As we know that the successful marketing depends largely on company ability to manage to
its marketing program with its environment. The following micro and macro environmental
factors played a considerably role on CDL marketing opportunities and activities. The
external macro environmental factors which can influence on Candia’s sales are;
Demographics:
Demographics refer to the characteristics of human population, size, distribution and growth.
The total population of Pakistan is 140 million and it is growing at the rate of 2.5%. There is
more potential for Candia’s sale because the population growth rate is favorable and
increasing. Changing gender roles is another demographic factor which refers to the changing
role of males and females related to families; buying patterns etc. the females in Pakistani
society are now more aware of brand their attitudes forward careers, shopping and products
have entirely changed. If more and more women are educated in a society there is likelihood
that they become more skeptical towards Shopping especially for household items. In
addition to this more people are migrating from rural to urban areas, which also favor
Candia’s sales because Candia is not distributed in rural areas. Similarly the people attitude
towards fitness is perception gradually increasing which enhance there to switch on milk
consumption.
PEST Analysis of Candia:
Political and Legal Forces
Political and legal forces which affected CDL marketing efforts for the launch of Candia
were the environmental and anti-pollution laws, according to which a company is prohibited
to use that plastic packaging which is not recyclable. Candia has a special “USP” Packaging
which is recyclable and environmental friendly. Also the milk processing plant is located
65km out the main city of Lahore near Bhai Pheru which is desirable step according to the
requirements of the law to avoid air pollution.
Economic Conditions:
The following economic conditions which can affect the marketing activities for Candia are:
Business cycle consists of four stages:
Prosperity
Recession
Depression
Recovery
Currently, the overall business industry in Pakistan is passing through a stage of recession but
it is hoped that it will enter in the recovery stage soon, which will be favorable for company’s
long term pricing objectives.
Inflation
When Candia was launched, the inflation rate in the country was, 6.5% officially as
compared to the last year inflation rate of 8.3%.
Competition
As far as battled milk is concerned Candia was no competition in the local market. But as the
core product is concerned, there is a substitute threat. Many other companies including
multinational are also fulfilling the demand for UHT milk.
Socio-Culture Changes
Today’s society is being more complexes because our socio-cultural patterns, lifestyles,
values, beliefs are changing much more quickly. Here are few changes in social and cultural
forces that have significant marketing implications for Candia. Consumer awareness about
UHT milk has increased so much as a result of massive advertising campaign carried out by
tetra pack association of Pakistan. People have changed their views about fresh milk. They
fell that fresh dairy milk is impure and unhygienic and it contains bacteria which causes
infections.
Diseases
Moreover, there is a popular notion among the mass consumers that dairy milk contain high
percentage of water as compared to milk itself which is a routine practice being undertaken
by the “Ghawalas”. So, mostly the consumers especially in urban areas are switching towards
tetra pack UHT milk which is more hygienic and durable in use.
Technology
Technological breakthrough has tremendous affect on the lifestyle from a consumption
patterns and behavior patterns of the people. The technology introduced by CDL for Candia
is plastic bottle packaging which is also unique selling point because there is no other local
company providing such packaging. More over the plastic which CDL is using is USP,
packaging which is internationally recognized frequently used by competing brands all over
the world. Communication of decision oriented information to be used in all phases of the
marketing process. Candia also carried out a comprehensive marketing research program to
deal with the competitive pressure already exists in the market. The sources of information
used to conduct this market research include the following:
Internal company information
Dealers information
As regards the customer’s needs are concerned, both formal and informal investigation
methods were used. Regarding formal method, a comprehensive market survey was
conducted in which people from different walks of life were interviewed personally and their
responses were collectively evaluated.
Telephonic and direct mail survey systems were totally ignored to get feedback of
consumer’s response.
Target Market for Candia
The market is a group of customers (people or organization) for whom a seller designs a
particular marketing mix. The primary market which CDL targeted before launching was
specifically urban sector. There was no ultimate consumer as any age limitations were
specified for the product.
Consumer Market Segmentation
CDL divided the total market into smaller segments with a prospect to enhance effective
acceptance and sales of Candia. The following segmentations bases were applied.
1. Geographic Segmentation
As concern a geographic segmentation, CDL has segmented its potential market in all the
four provinces simultaneously which is further subdivided in key business centers located in
these areas. As far as the residing areas are concern CDL has specifically segment its market
in urban sector.
2. Demographic Segmentation
In terms of demographic segmentation, CDL has divided the market. On the basis of income,
family size and style:
The target consumers of Candia core high income people with the income regarding from Rs.
10,000 and above.
In terms of age, there is no segmentation undertaken by CDL. As a product appeals all the
age groups.
The segmentation basis by gender includes both male and female for Candia’s target market.
On the basis of social class, Candia has segmented the market considering only upper and
upper middle class.
Candia has also segmented the market on the basis of family life cycle, with a distinction
between single and married class.
As regards education, there is not segmentation basis applies as it appeals to bit common
sense.
3) Behavioral Segmentation
In terms of behavioral segmentation, CDL has divided the market on the basis of benefit
desires from the product and its usage rate.
As regards the benefits desired from the product, CDL has segmented the market on the basis
of quality and taste.
There is not segmentation basis undertaken by CDL as regards the usage rate of the product,
which ranges from non user to heavy user.
Business Market Segmentation
CDL has the business market on the basis of customer location and type. The Co has selected
both single and multiple buying sites.
As a segmentation basis by location.
The average business order unprocessed milk is considerable large in size therefore, the
company has segmented. The order size on the basis of sales.
The company orders the unprocessed milk from the unorganized dairy industry.
Company’s can approach buy in different ways. Some companies have their own purchasing
department. In CDL, the decision of purchase is normally undertaken by consulting all the
purchase staff members.
The purchase criteria are segmented strictly on the basis of quality.
Target Market Strategy
The target markets should be compatible with the organization’s goals and image and also
consistent with definition of strategic planning.
CDL has adopted market aggregation strategy as a single segment. The strategy used can also
be called mass market strategy.
The management of CDL has developed on marketing mix and reaches most of the customer
in the entire market. Candia is offered as a single product for the mass audience. It has one
pricing structure, one distribution system and it uses single promotional programs which also
aimed for the entire market.
Marketing Mix Designed For Candia
CDL designed a complete marketing mix for Candia which includes:
Price
Promotion
Placement
Product Management
1) Product
As product may be a good, service, person or any idea. Candia is a commodity which is
offered to the consumers to fulfill their needs. It is processed milk which is treated with UHT
technology. It is an in liquid form, whit in color and packed in plastic bottles which are
available in two sizes.
Core Product
The core product of Candia milk is that, it is a complete food supplement which includes all
the vitamins, proteins and lactic acid, which are needed for good health and vitality.
Classification
Candia milk is classified as a “Convenience Good” because consumer can buy it any time
with a minimum effort. The category in which Candia falls is the “Replacement Product”
because it is significantly different from the Tetra Pak milk already available in the market.
Candia is the only milk which is sterilized after packing.
2) Business Analysis
In business analysis, CDL had gone into the details of terms and conditions of franchising.
After one year negotiation, CDL was permitted to produce Candia milk in Pakistan as a
subsidiary company of French Candia. The finance were arranged and the feasibility reports
were made which estimated the cost of the whole project including manufacturing plant,
patent, distribution etc. so the whole program to develop the product in home country was
designed and analyzed.
3) Market Tests
Ad discussed in the earlier part of the report market tests for Candia milk being carried out in
Lahore do test whether people will actually going to buy it or not. In these tests, sale and
repeated buying behavior of the consumers was mentioned.
4) Commercialization
After having the successful results of test marketing, CDL finally decided to star full scale
production and developing market plans for Candia. Candia was produced and first launched
on 12 April 1999 with a massive advertizing campaign.
Positioning of Candia
The positioning strategy for Candia milk was “Positioning is relative to a product or
attributes”. The attributes on which CDL has positioned Candia ‘taste”. Candia has a very
different taste among all the available branches in the market that is why it is primarily
positioned on its distinctive taste is the result of the process of “Sterilization”.
Product Life Cycle
Management of CDL is aware of the fact that every product has its own life cycle and
product is to be treated accordingly, depending on the particular life cycle stage. The product
life cycle goes through four different stages. There are:
Introduction Stage
Growth Stage
Maturity Stage
Decline Stage
Candia was introduced 8 months back. It has successfully crossed its introduction stage and
according to the management of CDL, Candia has now entered into growth stage where it
experiences the target of market acceptance, higher sales and higher profits. The company is
managing the growth stage by using the strategy of market penetration.
Branding of packaging strategies
Branding and packaging are two important parts of the product. Brand name identify the
product, it makes shopping easier and ensure the quality to differentiate the product from
competitors. The brand name of product here is “CANDIA”. It is a separate name used for
the product without using corporate name which is CDL. Although the branding is under the
corporate name CDL but CDL is not used combined with brand name. Among the five levels
of familiarity, Candia is at the “brand recognition” level. People recognize the brand and
everybody knows its existence.
As far as packaging is concerned, CDL is following “family packaging strategy”, in which
the bottles of Candia are placed in one container. Packaging contains all the details about the
product. In Candia’s case the plastic bottles of Candia in white color with a lid on its opening.
This primary packaging is used to protect the milk from heat and light. This plastic bottle is
the USP which is saving and environment friendly. The secondary packaging of Candia
consists of 12 bottle pack which is wrapped in a card board box covered with plastic sheet.
Labeling
Labeling consist of all the detail about the product, brand mark, name of company
ingredients, expiry date on instructions. Labeling is considered as a part of packaging to give
full detail regarding the product. Labeling of Candia includes a picture which shows, a
morning time at a form, and “milk” in written also in a very attractive manner.
Pricing Strategy and Objectives
The pricing objective which CDL selected for Candia was purely “profit oriented”. And the
rationale was to achieve the target return. The target return could be away the specified
percentage return on the sales on Candia Milk. The company has concealed all the profit and
sales figure because it is private limited company and do not disclose its annual report to
general public.
Regarding pricing strategies, CDL chosen “Market Penetration Policy” for Candia. Following
this strategy the price of Candia is kept low in relation to the target market of expected prices.
The aim of using this strategy is to penetrate the mass market immediately and to increase the
total sales volume.
Discounts
Currently there are no discounts offered to consumers and wholesalers. The every discount
offer where the trade discount which were given to the retailer at the time of launch of
Candia.
As regards the geographic pricing strategy is concerned, Candia is following a “Uniform
Delivered Pricing” strategy is also being adopted which enables consumer to purchase Candia
at one price, no matter how much quantity he/she buys. The following table shows the
existing prices for Candia:
Bottle Size 1 Liter (1 bottle) 12 Liter (12 bottles
Trade Price Rs. 28 Rs. 336
Retail Rs. 30 Rs. 360
Bottle Price 0.5 Liter (1 bottle) 6 Liter (12 bottles)
Trade Price Rs. 14 Rs. 168
Retail Rs. 15 Rs. 180
As concerned to the basic price approach, Candia adopted “Customer Base Pricing” which
means that price of Candia is according to the customer purchasing power. Since the target
market belong to higher income group, so it means price is higher than other brands.
Distribution Strategies
The chained of distribution adopted for Candia is:
Company Distributor
Retailer
Customer
The rationale behind this kind of distribution was that, if serves large number of retailers
spread all over the country that paid it economical and feasible. The company has only one
warehouse situated in Bahia Peru from where this distribution takes place. CDL has
appointed 35 distributors all over Pakistan for effective and on time availability of Candia.
This distribution is said to be an “Intensive Distribution Channel” where CDL is trying to
distribute its product to every retail outlet in urban areas.
Promotional Mix
Advertising gives the feel of the product. It is an impersonal communication that the sponsor
has paid for and in which the sponsor is clearly identified. Candia is advertised through
different channels.
1. Television
Television has contributed a lot in the promotion of Candia. At the time of launch, CDL
invested around 10-15 million one television ads their ad is of 12 second duration which
appears quiet often on both of the local channels.
2. Newspapers
CDL has advertised Candia milk in all reputed newspaper of the country, such as Nation,
Dawn, The News and Daily Jang.
3. Sign Boards
Sign boards and billboards are also paying an important role for the promotion of Candia
milk. Candia’s neon signs can also be observed on some of the eye catching location of the
city.
Sales Promotion Activities
There is demand stimulating activities designed to implement advertising. The major sales
promotion activity carried out for Candia was sponsorship is typically viewed as a long range
image building activity.
Public Relations
CDL has also carried out public relations to build a favorable image for an organization. The
management developed good public relations with the players of Pakistan Cricket team by
giving them cash prizes throughout the cricket world cup 1999.
Promotional Strategy
A promotional program directly primarily at end users is called a pull strategy. CDL has used
pull strategy to promote Candia because the Candia market potential was already identified
since UHT (Ultra High Temperature). Sales were increasing. According to the brand manager
CDL pull strategy is effective to bring Candia bottle on the shelves of stores. The margins
given to retailers are 6.5% and to distributors are 9% which are slightly higher than UHT
processed milk available in the market.
Customer Feedback
No doubt Candia has no competitive product in the market, as it is bottled milk. But still there
exists an immense competition in this market. According to the Candia Brand Manager,
Candia has captured milk Pak’s market share quiet contrary to this are the consumer
responses customers have shown dissatisfaction in various regards. A short analysis is an
evidence of that.
Quality
29% of the consumers are satisfied with present quality of the product. Majority (i.e. 71%) of
customers are not satisfied with the present quality of Candia milk. The most important factor
pointed out by (61%) of consumers is the taste of milk. Dissatisfaction regarding the taste of
the product might be due to the product process. 4.3% of the customers think that using a
plastic bottle cannot be hygienic exposure to sun light and heat as a resulted in some disorder
like color of the milk darkens and the taste changes. 26% complaints about color Candia have
a unique color. Sampled consumers were not satisfied with color of milk. Consumer
perceived the cream color as the result of some chemicals added to the product. 8.6% of the
consumer therefore suspected the purity of the product. 8.6% of the consumers had some
additional complains which are as followed:
Product lack freshness
Improved packaging
Cannot be used in a tea or coffee
Branding
52% of the consumers are satisfied with current branding of the product. 47% have objected
to the branding by the company. 78% consumers are not comfortable with the name of the
product because
it’s not distinctive
It does not suggest something about the product particularly its benefits and uses.
It lacks in presentation i.e. packaging in respect of colors and design (22% showed
dissatisfaction regarding name of the product)
Product Sizes
65% of the consumers are satisfied with 1 and 0.5 liter bottles. 35% consumers would also
like following sizes added to the current available sizes.
2 liters
3 liters
5 liters
Packaging
53% of the consumers are satisfied with current plastic packaging. 47% customers think that
packaging needs improvement. Out of which 18% of the consumers think that packaging of
the product is deceptive. 27% of the consumers feel that plastic packaging is not feasible. Use
of recycled material is a weakness considered by 9% of the consumers. 46% of the consumers
have detected following weakness.
Lid of the bottle, i.e. once the bottle is opened it has to be immediately used. Otherwise
produce deteriorates. Durability of the packaging material Light and heat do affect contents
of the product.
Out of 47% the consumers dissatisfied with packaging 80% have suggested paper packaging
and the rest suggested glass packaging.
Price
37% of the consumers think that product is rightly priced. Priced 63% of the consumers are
satisfied with the current price of the product out of which 90% of that price of the product
should be less than Rs. 30. Actually customers perceive that product that product is
overpriced. Customer doesn’t consider value added benefits for which company (CDL)
should change a higher or equal price.
Target Age Group
28% of the consumers think that Candia appeals in every age group. But 82% feels that
appeals not only to children but adults as well. Low for content especially should be more
attractive to people at the age of 20 and above.
Product Line Enhancement 82% of the consumers think that company should enhance its
company’s product line by introducing low cholesterol by Candia skimmed milk to Attract
middle aged and above bracket. 18% thinks that enhancing product line will only result in
higher cost.
Brand Awareness
47% consumers think that there is enough brand awareness among the people. This is the
effect the massive advertising campaign by the company carried cut during Cricket World
Cup 99. However 53% still believe that there is not enough brand awareness. Out of which
60% of the consumers suggest that company should not only increase shelf spacing of its
product but should also increase the number of outlets in urban as well as in rural areas 40%
suggested free sampling can be a good way to increase brand awareness.
Advertisement
44% consumers think that company has advertised much to promote is product and 66% feel
that company lacks in advertising front. Majority (67%) of consumers stressed on
broadcasting and print advertising. 33% are of the view that company should have neon signs
and billboards in target areas.
Value Added Ingredients
53% consumers think that company should have price discounts element in their sales
promotion. Price ahs surely had been one of the most important concerns among consumers.
Therefore, it might prove to be good sales promotional strategy. Gift vouchers although
highly unorthodox, still 29% consumers supported the idea. In addition following suggestions
regarding sales promotion have been provided by the rest of the consumers.
Lucky draws
Buy four get one free
Short term price cuts
Price discount as well as gift vouchers
Unique Selling Point
78% consumers suggest that company should have a certification of Quality Management by
an intentionally reputed institution related to its product and 22% consumers think that
company should have elegance in its product name and packaging. These consumers think
that for this product, unique selling point would be its packaging which is different from any
other milk in local dairy scenario. Therefore, company should work hard on this aspect to
improve its sales.
REASONS FOR FAILURE
After conducting the whole research, we have been able to point out obtain areas of weakness
of marketing efforts of Candia. Because of these gaps and flaws Candia has not shown those
result which were expect at that time. It’s launched whole advertising campaign carried in the
beginning paid only in the first three months. After that sales drastically fell down which
forced the company to cut its expenditure on promotions.
On the basis of feedback gathered from around 70 users of Candia and 20 of retail stores
which keeps Candia, we evaluate key failure points which are listed below:
The foremost important attribute where Candia is behind in the taste and color of milk. The
color is not purely white and therefore, people suspect that it is not pure and fresh milk.
Secondly, Candia has failed to target all of age group. The milk has able to stimulate demand
the age group of 6-12 youth and elderly people are not forgeted. Youth and forgeted people
are not targeted. Young people 24-30 have the highest purchasing power; elderly on the other
hand do not prefer Candia or any other packaged milk. They rather go for fresh milk.
Candia has failed to persuade the health conscious people who mostly belong to their target
market of higher income groups. They perceive the milk very thick and switch to other low
fat milk available in the market.
Another area of weakness is pricing strategy of Candia. This price is higher than other brand
in the market. One time Candia is following “market penetration strategy” and at the same
time price is kept higher than other brands which do not allow the Candia to penetrate in the
market.
Regarding packaging of Candia, the plastic used as thick as compared to the foreign plastic
bottled milk available in the market. This plastic used is not approved by any association.
while the plastic used in the bottles of original French Candia is FDA “approved”
Packaging is the only factor to contribute in the bad taste and color of milk. Although it is a
USP of packaging but if it once exposed to sunlight the milk gets discolored.
Instead of plastic cap foil is used on the mouth of the bottle as a seal wrapping. If seal is
teared off for a use it remained unclose allowing air enter in to the bottle which further reduce
the life of the milk.
Coming to the branding of the product, the name Candia, to the Pakistani means more like a
name of some Candy. This is because people are not aware of the European Candia which is
popular in 52 countries around the world. The brand name is suitable more for flavored milk
rather than plain milk.
Labeling does not include much information of the product only the fat contents percentage is
mentioned which is not enough to inform a customer about the other important nutrients
contains in the milk.
The packaging is deceptive in the sense that it is of white color while the milk if not pure
white. The bottle should be transparent so that the exact color of milk is visible.
Another major reason of failure of Candia is that, since it’s launched, the company has not
been able to increase the depth of the product such as flavor, colors, sizes and varieties. These
innovations are necessary in building the image of brand in to the mind of the consumers.
Candia did not conduct any free sampling at the time of launch.
The retailers complaint that there major in the sale of Candia 6-6.5% which should increase.
Similarly the sales are low which results in low turnover for retailers. So retailers are not
happy to accept the huge quantities place in stores.
There is no incentive and discount offered to retailers and end consumers. Moreover, there
is no bulk discount like buy 12 one free. This practice is normally followed by other
competitors.
CDL has never tried to adopt the strategy of seasonal price cuts, which could enhance sales
and also could help the company to monitor the changing buying patterns of consumers.
There is no enough brand awareness persist in the society for Candia. That is why company is
paying handsome amount of money to limited retailers for keeping Candia bottles on the
shelves where customers can easily watch them.
The other major failure is that CDL is not providing deep freezer and fridge to big retailer’s
outlet and departmental stores for Candia.
Not been able to target remote areas, small town and northern areas of Pakistan where there is
lot of demand of tea.
The management at CDL is very much optimistic about the product life cycle of Candia.
They assumed that Candia has successful reach to growth stage but in reality, it is not the
case. The present PLC of Candia is something like this
Candia is in declining stage where the company has cutted down its cost on its promotion.
The only customer left are loyal ones. The company at this overwhelming stage is required to
change its overall strategy for Candia.
There are other certain important areas where Candia has failed to perform well. One of the
major reason of failure is that one part the target market i.e. higher income groups living in
posh areas even there Candia sales has declined drastically. The figure taken from the 2 well
known stores in Defense Housing Society Lahore depicts the situation.
REPOSITIONING OF CANDIA MILK
THE MARKETING PLAN
COMPANY INFORMATION
CDL Foods Limited (formerly Chaudhry Dairies Limited) is a fast growing food products
company. Having doubled its turnover in the last four years, the company has a turnover of
Rs. 3 billion presently. The company also operates as a franchise of Candia Cedilac
of France CDL has a state of the art milk processing facility situated at 62-KM Multan road,
Near Bhai Pheru, and has a team of 400 exceptional individuals to support its operations.
The head office of CDL is located in the evergreen city of Lahore at 135-Ferozepur
Road. CDL is producing a number of food products both for consumers and industrial users.
CDL is the market leader in the dairy milk industry. The products are as follows
Haleeb milk
Candia
T r o p i c o f r u i t d r i n k
Dairy queen milk powder, N’rish powder milk, Asli ghee
MISSION STATEMENT
“Build branded food business to improve quality of life by offering tasty, affordable and
highly nutritional products to our consumers while maximizing share holders value”.
VISION STATEMENT
“Most innovative and fastest growing food company offering products enjoyed in every
home every day”.
CORE VALUES
1 . T e a m w o r k
2 . E m p o w e r m e n t
3 . T r u s t
INDUSTRY ANALYSIS Livestock sector of Pakistan
Livestock is an important sector of agriculture in Pakistan and is the only source of milk, which
accounts for nearly 37.5 percent of agricultural value added and about 9.4percent of the GDP. Its
net foreign exchange earnings were to the tune of Rs.53.0 billion in2000-01, which is almost 12.34 percent of the
overall export earnings of the country. The role of livestock in rural economy may be realized from the
fact that 30-35 million rural populations is engaged in livestock raising, having household holdings of 2-3
cattle/buffalo and 5-6 sheep/goat per family deriving 30-40 percent of their income from it. The live stock include:
cattle, buffalos, sheep, goats, camels, horses, Asses and mules.
OPPORTUNITY ANALYSIS
Packaged Food Industry in Pakistan
Pakistan has a population of approximately 140 million, and a population growth rate of 2.7
percent annually. Its vast agricultural resources and geographical location make it an
ideal country for investment in the food sector. The most rapidly sectors growing
a r e f o r b e v e r a g e s , i n c l u d i n g carbonated soft drinks (CSD) and juice and juice-
flavored drinks, poultry, and edible oils, as you can see the growth rate of different groups
in table 3. Several foreign firms have entered the market and established their own
presence as manufacturers, or formed joint ventures with local firms.
Pakistan's food industry produces cooking oils, hydrogenated vegetable oils, sugar, flour,
dairy products such as milk, butter, yoghurt, cheese and ice – cream, biscuits, breads, and
confectionery, fruit juices and fruit juice drinks, carbonated beverages, snack foods
based on rice, potatoes, corn and pulses, processed chicken, jams, jellies, squashes, sauces,
pickles, and some cereals and canned fruits. The fish, meat and fruit and vegetable sectors
remain underdeveloped partly for lack of adequate infrastructure, including storage and
transportation facilities. Government policies and plans are expected to greatly increase the
development of seafood’s industry. Pakistan’s central bank's classification of food includes milk and
cream, chilled or frozen fish, vegetables and fruit, sugar and honey, tea and coffee
whiteners, spices, beverages and other miscellaneous food items. Their collective import in
PFY-96 was reportedly worth USD 438.1 million and their export USD 315 million. For
PFY-97, imports were USD 611.30 million, and their export USD 329.40 million. Edible oil and
wheat imports account for the largest shares on the food import bill. Trade sources
estimate that Pakistan's food imports grew to over USD 1.7 billion in PFY-97, whilst its
exports were a mere USD 718 million. While the industry has been growing
at between 7 to 10percent per annum, it is unlikely that given the downturn in the economy, this
rate has been maintained in PFY-99. The market can now be expected to grow at
approximately 5-6 percent annually over the next two years.
Livestock & Dairy Products
Production from livestock sector includes: milk, beef, mutton, poultry meat, wool, hair, bones, fats, blood, eggs, hides
and skins and their production for the last five years are shown in Table 2
Marketing Highlights
Pakistan's dairy industry produces UHT, pasteurized, powdered andcondensed milk,
butter, yoghurt, cheese, cream and some butter oil. Of a total of 38 dairy plants with a total daily rated
capacity of 2,180,000 liters per day, 11 with a rated capacity of 948,000 liters per day have been in
operation. Recently, two non-operational federal governments owned dairy plants have been
brought into operation through a joint venture with a non-government
organization, increasing the rated capacity to 1,048,000 liters per
day. Their contribution, together with that of two dairy farms of the Pakistan
military, has raised Pakistan's daily production of processed milk, yoghurt and
butter. Ina d d i t i o n , t h e c o u n t r y ' s i n d u s t r i a l p r o d u c t i o n c a p a c i t y f o r
i c e c r e a m i s approximately 47.5 million liters per year. Pakistan now produces an
estimated 27.5 billion liters (or27.5 million metric tons) of milk annually, of which only
one million liters is processed daily. Approximately half of this amount is processed
into UHT milk, 40 percent into powdered milk, and the remaining 10 percent into
pasteurized milk, yoghurt, cheese and butter. The seasonal nature of supply as well as
demand for milk powder from the bakeries and confectioneries, as well as dairy plants them
selves, hasnecessitated the import of powdered milk.
Powdered milk, currently imported mostly from Eastern Europe, and Centrally
Independent States (CIS), comes in two forms: (a) Skimmed milk powder (b) Vegetable fats-filled milk
powder Imports of skimmed milk powder range between 5 to 10 percent of
thetotal imports of milk powder. In order to encourage development, the
GOPrecently announced the establishment of a National Dairy and Livestock
Development Board, which has been mandated to develop the dairy, poultry and meat
industries. There are no dairy exports from Pakistan, except a small quantity of infant
formula milk exported to Bangladesh, Sri Lanka and the CIS by Lahore-based joint venture
between a Pakistani and a European company. Changing habits and the increasing awareness
of the health value
of hygienically prepared foods at least amongst the urban population can
beexpected to raise demand over the next few
years.Processed foods are imported into Pakistan merely to feed a
fewsupermarkets, which cater to the country's eli te. As imports are made by
container load, importers visit the nearby duty-free market of Dubai to make
purchases of various imported goods to collectively fill a container. A larger order
moves the importer to England, or, if volume warrants, to the country of the manufacturer for which
the purchaser has a bulk order. There is no regular country of origin or consumer
preference for the processed foods purchased. Both consumers and buyers identify
with b r a n d n a m e s , b u t t h e m a j o r discriminating factor is price.
It is thus cheaper to buy goods originating in England or Thailand than
foods processed in the United States, and it is seldom that two successive
containers will be packed with goods originating from the same processor.
Food and Nutrition Analysis
Protein energy and micronutrient malnutrition has a very sever impact on the
potential development and productivity of the people. They contribute to a
great deal of morbidity and ill health growth, retardation and reduced level of physical
and developmental activities. The basic cause of these deficiencies is lack of adequate intake
through diets. Poverty in many cases is the major basic cause of malnutrition. In
Pakistan, per capita per day calories intake is estimated at 2306 for 2001-02 and protein
intake per capita per day is67.0 grams. The national food consumption/intake balance
sheet of major six selected food items including pulses, sugar, milk, meat, eggs and
edible oil is given in Table 4. The overall per capita food availability of the basic food items
has declined over the previous year.
MARKET ORIENTATION
Customer focus
The company is committed to strict quality standards in all its operations – from the collection
of milk to the provision of hygienically processed nutritious
productst o i t s c u s t o m e r s . T h e c o m p a n y f o l l o w s t h e p h i l o s o p h y o f
" d e l i g h t i n g t h e customers" by providing them quality products at the right price
on their door step.
The company treats them as partners
Keep channel of communication open with them because they are
theonly reliable source that can provide them best feedback about theproduct.
Competitor Intelligence
The organization keeps a bull eye on the activities of competitors and tries to offset all the
possible threats, which they can encounter in the future.CDL Foods limited continuously
measure and monitor the market trends and competitor moves. They are getting feedback
from their sales teams and dealers about what is happening in the market.
CDL has 64 sales teams all over Pakistan
CDL has 400 distributors all over Pakistan CDL‘s advertising agencies are also giving them
feedback regarding the market and competitors. They are guiding CDL what should be the next
move.CDL has three agencies:
Orient McCann
MPL
Asiatic advertising, the main competitor of Candia is Nestlé’s milkpak and milk
flow. NESTLE has not only increased local sales substantially but has also been very
successful in its export sales which have increased many times over since it first
explored neighboring markets.
Inter Functional Coordination
CDL Foods Limited
(Formerly Chaudhary Dairies Limited) is a fast growing
foodproducts company. Having doubled its turnover in the last four years,
thecompany has a turnover of Rs. 3 billion in financial year 2001-2002. In the next financial
year 2002-2003 the target of the CDL is to achieve the turnover of Rs. 4billion. The top management
and employees at CDL is committed in their worksand they know the importance of
coordination
and interaction of differentdepartments in order to achieve better results.
Weekly meetings are heldbetween different departments in order to solve
problems as well as to make accurate decision so that resources are not desecrated.
Market Analysis
Pakistan currently produces an estimated 27.5 billion liters (or 27.5 million
metrict o n s ) o f m i l k a n n u a l l y , o f w h i c h o n l y 1 . 6 m i l l i o n l i t e r s i s
p r o c e s s e d d a i l y . Approximately half of this amount is processed into UHT milk,
40 percent into powdered milk, and the remaining 10 percent into pasteurized milk,
yoghurt, cheese and butter. The seasonal nature of supply, the demand for milk powder from
the bakeries and confectioneries, And from the dairy plants themselves, has necessitated the
import of powdered milk. This product, currently imported mostly from Eastern
Europe and the centrally independent states, comes in the form of vegetable fats-
filled milk powder and skimmed milk powder. Imports of skimmed milk
powder range between 5 to 10 percent of the total imports of milk powder. As such, one of
the most feasible investments in Pakistan’s dairy industry is in the production of dried milk.
Tetra packs are available at an average price of Rs. 50 per liter, however it cannot
be considered as pure, fresh milk for i t has been pasteurized and treated for
longlife.A d d i t i o n a l l y , t e t r a p a c k m i l k h a s a d d i t i v e s a n d p r e s e r v a t i v e s ,
w h i c h r e d u c e s i t s 17 nutritional value. Health conscious people and mothers for their
children because of low fat content and better nutritional value prefer cow milk.
Strategic Situation Summary
CDL is a market leader in the dairy milk industry of Pakistan. There host of product / brand
portfolio in the packaged food category have had a significant role in the quality and
innovation of distinct styles and quality of package as well as nutritional contents. They have
four specialized business units under the CDL banner, which comprise of;
Haleeb
Candia
Tropico Fruit Juices
Bulk Products
Current Positioning
The product line that is to be considered as the part of the marketing plan for CDL is
their Candia business and allied products associated to this unit 18.
This statement leaves a problem area for CDL since a gap exists between the perceptions of the
consumers and the positioning strategy for Candia as drinking milk. It has been
perceived by most consumers as suitable for tea and desserts consumption.
Buyer Analysis
For Candia brand the buyer profile comprise of lower middle, Upper and Upper Middle class
individuals having the exposure of international countries with awareness of product freshness i.e.
bottled milk. The main focus is on health, taste and the price
factor.T h e i n c o m e g r o u p b e l o n g s t o a r a n g e f r o m R s . 1 5 0 0 0 a n d
a b o v e . Consumers seeking quality and a seal of confidence through endorsements from reputed
manufacturers like the license from Candia Cedillac franchise of Lyon, France.
Business Analysis
Business Segments
1.Candia
Pasteurized, Homogenized and Double Sterilized milk packed in food grade plastic bottles. Toned
milk
thati s p r o c e s s e d t h r o u g h U H T ( U l t r a H e a t T r e a t e d ) t r e a t m e n t . O t h e r
b r a n d s s u p p o r t i n g t h e C a n d i a umbrella are Candia Skimz [Tetra pak and ins
tantpowde].
2.Haleeb
H a l e e b i s P a s t e u r i z e d , S t a n d a r d i z e d , a n d Homogenized and
Ultra Heat Treated milk of thehighest standards. Haleeb is available all over the
country in 1 Liter, 500 ml and 250 ml Tetra Packs. Haleeb is standardized to 3.5%
Butter Fats and 8.9%SNF (Solids Non Fat) as prescribed by Pakistan Pure Food Laws.
3.Tropico Fruit Juice
With the quality assurance of CDL, comes Tropico, a premium juice drink, superior in
taste and exceptional in pulp contents, for the absolute taste of refreshing, invigorating fruit
juice drink. Available in smart 200 mls lim pack and 1000 ml Tetra Brick ( M a n g o a n d
Mango/Orange Flavors). Tropico is the perfect thirst quenching refreshment for all occasions.
Available in four exciting flavors, Tropico is always alive in taste and full on fruition.
4.Bulk products
In bulk product category the firm have skimmed milk powder, cream, Ghee and Butter.
P r o v i d i n g t h e rationed product supplies to vendors like tea shops(chai walas), hotels
and offices.
Product Market
Dealing in packaged dairy products with main area of concentration in packaged milk products
that include Processed, Condensed and Instant formulations.
Competitive Analysis
The competitive frame work of CDL vis-àvis its Candia brand can beclassified as following:
currently milk is sold either directly through milkmen or in tetra packs. The main problem
with milkmen is that they mix substantial amount of water in the milk, which dilutes it, thus
affecting purity. Currently the Candia has four major competitors loose milk shops.
Milkpak (Nestle Milkpak Limited)
Milk flow (royal dairies)
Olpers ( Engro Foods)
The price of Candia milk is relatively lower than both the competitor brands
but higher than the price of loose milk. Powder milk is also consumed heavily and all
the companies are facing stiff competition with each other. The concept of purchasing milk
from milk men in our country is high because people prefer to buy because they think that
tetra packs cost is relatively high and the quality of milk in tetra pack is not as fresh as milk men
milk.
Competitor’s profile
Nestle Milkpak Limited
Nestle Milkpak limited is a joint venture of the
Nestle, Switzerland and Milk Pak limited Lahore
The two companies entered into a joint venture in 1988and today produces UHT milk, butter,
cream, orange juice, fruit-based drinks, milk powder, infant cereals, infant milk, dairy
whitener, pre-cooked noodles and confectionary.
The joint venture then commenced local packing of importedcoffee. In 1996 it
established its first confectionery plant for high boiled candies and added other lines
including whitener milk, orange juice and ready-to-drink tea. Nestle Milkpak in 1990
also acquired Kabirwal Dairy Ltd. The plant commenced the production of pre-
cooked noodles in 1991.
T h e j o i n t v e n t u r e a l s o e s t a b l i s h e d a n o t h e r m i l k p o w d e r p l a n t
a t Kabirwala, which produces skimmed milk and full-cream milk powder. The
country's impressive potential for confectionery sales led Nestlé Milkpak to establish
an independent sales and distribution network for confectionery. The network has grown
from 3 main cities in 1996 to a nine regions by the end of the following year.
Nestle produces mints, and started marketing imported chocolates in 1997.
Encouraged by the excellent sales results, it has now invested in a new
production line to produce high and low boiled candies, and thus
introduceseveral new varieties of sweets and toffees to the market. It does not at present
have plans to manufacture chocolates locally. Nestle Milkpak became an
exporter in 1993. In PFY-98 the company exported Rs.321.30 million worth of products,
which included noodles, cereals, infant milk powder, UHT cream, fruit based drinks, fruit
pulp and full cream milk powder. Its major buyers are
theCentral Asian Republics (45 percent); Bangladesh (32percnet) Afghanistan (21percet).
The company has now commenced exporting mints to Bangladesh. Nestle Milkpak does
its own marketing. Its sales department distributes to different distributors, who sell to
retailers. The key strengths of Nestle Milkpak (MP);
Nestle AG, the world's largest food company
Nestlé is a well known name
Consumers trust its quality
It’s a multi-national company
Financially strong
All above strengths were quoted by the research respondents.
Royal Dairies Limited
A Royal Dairies limited is Karachi based company selling milk flow brand in the market.
This company has its own farm of 10,000 buffaloes in district Malir Karachi. Royal dairy is
the very first dairy with its own farm. This ensures control over animal care and nutrition &
hygiene. It is a new entrant in the packaged milk market. Royal Dairies has following
Strengths
Own farm
Small operating cycle
Low transportation cost
People perceived milk flow as fresh milk
Reasons why Candia Flop
Taste
Packaging (without cap)
Poor distribution
Customer’s brand loyalty towards other brands
SWOT ANALYSIS OF CANDIA
Strength
•International packaging
•Affordable and reasonable price
•Have our own packaging plant
Weaknesses
•Heavy capital will be required for promotion
•Consumers are brand loyal toward competitor’s product so we have to convince them.
Opportunities
•Increase usage
•Can introduce flavored milk
•People are switching from unhygienic to hygienic milk
Threats
•Competitors can come up with plastic bottles25
USP (Unique Selling Proposition)
Our unique selling point is International Packaging with new flip top cap and reusable bottle
Finding competitive advantage Candia is
New Flip top cap to retain freshness
Toned milk with added vitamins and calcium
Taste is just natural best for drinking purposeThis ensures not only the highest quality but also the best
possible taste.
MARKETING MIX
Product
•High quality and convenience product
•Packaging
•Packaging or bottle is reusable
Price
•Price is less than competitor
•Using market penetration
Promotion
•To enhance awareness
•We do promotion on TV channels and newspapers
Place
•We give incentives to retailers.
B C G GROWTH-SHARE MATRIX
RELATIVE MARKET SHARE
CASH COW DOG10% 5% 1% 0.5% 0.1%High Low
The firm is a question mark because market growth is very high that is15% but the
relative market share of the company is very low.
Target Strategy
Targeting approaches for developing Candia brand is Selective Targeting nice the industry
is growing at a rapid pace and since the product portfolio is fairly diversified [related]
creating;
Organization Fit
all units operating under the CDL umbrella have a high degree of synergy
that can be capitalized to gain competitive advantage and cost efficiencies
Technology Fit
S i n c e t h e C D L i s u s i n g t h e p r o p r i e t a r y technology of Toning
Processing and Double Sterilization technology which can be traded with the shared
technology of other units i.e. Instant [Powder], Homogenized etc.
Management Fit
Resource of management can be cumulatively shared since the learning curve is minimized
Repositioning Strategy
Repositioning Statement: Sign of Healthy Family
“Struggling business to enhance brand image of Candia as a daily routine, nutritional diet for the entire
family.” Repositioning Concept Trying to create the perception that drinking milk is healthy and
is a quality habit that should be a part of all family members, giving them nutrition, satisfaction and
happiness that tastes good.
Repositioning Strategy
S h e l v e d i n A , B a n d C c a t e g o r y r e t a i l o u t l e t s t o c r e a t e f a v o r a b l e
b r a n d associations Price is at Rs.54/- that signals that quality is consistent in a new
packaging Advertising and sales promotions to be focused according to the quality
and fun drinking association of Candia as a health assuring milk.
Repositioning Effectiveness
The objective is to monitor and evaluate how the positioning of Candia
isreceived by the target market and according to what the core values of the
Candia brand communicate.
Product Strategies
The product strategy we are following is
Product Line Strategy
. In this further we are using
“Product improvement strategy”
. We are improving product through
1. Taste
2. Nutritional value
Added enriched vitamins and Zinc [fatty acids] with iron for supplement healthy growth.
Milk for growth, enriched with zinc, vitamins, essential fatty acids and, above
all, iron, with content 25 times higher than conventional milk. This is a decisive
advantage when you know that 70% of babies have an iron deficiency. With half a liter of
Candia everyday, children will get 65% of the iron and 80% of the calcium they need.
Design (Brick packaging)we Flip top cap
This will give us a competitive edge and mover advantage because currently fewer
companies in Pakistan is offering Flip top cap facility which ensures freshness and
hygiene.
Branding Strategies
We are using:
“Specific product branding”
Strategy because brand name gives a unique identification in the market place, Using Haleeb name gives
positive associations to customers that this product is used by us and we have a trust on this name so
using this product also enhance the product image and corporate brand identity.
CANDIA MILK Haleeb
(We are using Haleeb name at the side of the product packaging to reinforce associations).
DISTRIBUTION STRATEGY
We are using:
Conventional channel for the distribution
. W e h a v e 8 main distributors in Karachi and Lahore. Distribution intensity is “selective”
.Currently the company is covering 1000-1200 outlets. It is intended that the distribution will
be the same which is exclusively carrying the product to the retail outlets. There would be
dedicated shelf spacing to maintain the
SKU(stop keeping units) for example providing refrigeration and
exclusivelydesigned POP’s according to specifications as per
the brand image andrequirements. We are providing Candia to A, B and C class stories. The reason
why we have chosen this s t r a t e g y i s d u e t o f i n a n c i a l considerations. Profit for the
distributors is 1.25%. Distributors pay cash in advance to the company to get the product.
(We are using all the products supplied by these distributors).
Pricing Strategy
Pricing Objectives
1. Gain market position (Acceptance by the consumers)2.Influence competition We
are using “price penetration” because if we analyze the packed milk
c o m p e t i t o r s l i k e M i l k P a k a n d M i l k f l o w t h e i r p r i c e s a r e h i g h e r . W e
a r e maintaining the same price by offering more added features, which give us a
competitive edge. Added features include more added values as well as flip top cap.
The other considerations also include the
Non Price Factor
Buyers are willing to pay more prices to gain other competitive advantage, so taking this
into considerations we have included new nutritional elements as well as new flip top cap to
maintain the quality and freshness of the Candia milk. We are giving added value to
our customers as the company has promised to provide quality products with differentiation
PROMOTION, ADVERTISING, SALES PROMOTION STRATEGIES.
Our advertising and promotion strategies is based on three phases.
Creating the Awareness, educating the consumers providing information about product
benefits and what are the diseases caused by lack of consuming milk.
Increase Usage, advertising campaign based on situation, fun, enjoy and health.
1. Below the line activities (BTL)2.Brand line extension (targeting
kids)3.Co branding with Dunkin Donuts4 . C o b r a n d i n g w i t h L U b i s c u i t s 39.
Promotion
We will use POP’s in which all the CDL brands are available.
(Special Shelves for CDL)
. This will give a unique identity to the corporate name and to products. This will not only reinforce the
brand name of Haleeb but also it will give promotion to all the other brands of CDL.
Advertising and Sales Promotion Strategy
We will use doctors in our advertising (1st phase) like1.Surgeon Mohammad Ali Shah2.Dr.
Ghaffar Billo focusing on nutritional needs of milk.
Milk Recommending CANDIA MILK.
We will also invite Imran Khan (legend of Pakistan) to reinforce the
customers he will advertise for us and we will give 3% of our profit to his Shaukat khanam
memorial Hospital.
MILK IS LIFE! (Advertising Campaign)
We have decided to devote a special issue to milk, it's because day after day we're reminded of
its many benefits. It helps prevent osteoporosis, especially if i t 's drunk very early in l ife; and
it is the ideal way of getting the vitamins, minerals, trace elements and essential
fatty acids we need to avoid nutritional deficiency. Not to mention the numerous nutritional
properties that make milk a basic food for the infant and an ideal food for the
adolescent, the pregnant or nursing mother and so on. In short, we all need milk, whatever age we
happen to be. Milk has always played an important part in our diet.
1 . M i l k a n d c h i l d r e n
2 . M i l k a n d w o m e n
3 . M i l k a n d o l d e r p e o p l e In the 2nd phase We will also focus on different usage
situation like at playing sports.
W e w i l l a l s o t a r g e t k i d s h a v i n g C a n d i a m i l k h a v i n g f u n a n d
e n j o y . Focusing on different flavors, chocolate, strawberry and Banana. We will launch a campaign in
Schools. Sticking Posters on Walls near schools and providing refrigeration having Candia milk using
cartoon character Garfield.
In the 3rd Phase We will go for co branding with companies like Dunkin Donuts,
using Candia milk in their products. Promotion schemes will be used with the help of LU biscuits
providing free ticky pack biscuits on purchase of Candia milk i.e. Candi Biscuit. We will
also celebrate different occasions like Children days and will provide different gift packs.
PRINT ADVERTISEMENT FOR CANDIA MILK (2ND STAGE)
We will give this print ad on Dawn and in Jang News paper on the 2nd page (half page)
Print Ad Focusing on New Flavors as well as creating
associations with Garfield Cartoon character.
STRAWBERRY ,BANANA&CHOCOLATE
BILL BOARD USED AT
VARIOUS PLACES IN THE CITY
We will place this bill board on different locations. Like Boating Basin, Park Towers and Airport. This
cartoon character will create association in children and the children will act as an opinion leader for our
company.
Packaging for Children
INSTANT DRINK (Rs. 10)
Print Ad to influence Mother
PROMOTION BUDGET
Cost of Billboards used in different places in the city.
Billboards Rate Production Cost
Teen Talwar 250000/- 80/sq.ft 8x(10x20)= 16000/-
Malir Halt 50000/- 80/sq.ft 8x(10x20)= 16000/
Neepa Chowrangi 45000/- 80/sq.ft 8x(10x20)= 16000/
Nazimabd 40000/- 80/sq.ft 8x(10x20)= 16000/
Schon Circle 300000/- 80/sq.ft 8x(10x20)= 16000/
Boat Basin 250000/- 80/sq.ft 8x(10x20)= 16000/
Malir Cantt 60000/- 80/sq.ft 8x(10x20)= 16000/
TOTAL COST 1107000
Print Media
Daily Dawn (week days) Front page(20x5) 321750
Daily Dawn ( S u n d a y ) F r o n t p a g e ( 2 0 x 5 ) 2 7 3 0 0 0
Jang (week days) Front page (10x5) 11500
Jang ( S u n d a y ) F r o n t p a g e ( 1 0 x 5 ) + 2 0 0 % e x t r a 3 4 5 0 0
640750 x 4 2563000
TV Advertising
GEO
From 7 to 8 (483.33/sec x20sec) 7249.95 x 2 14500
From 8 to 9 (666.66/sec x15sec) 10000x2 20000
i.e. for one day =34500 x 20 690000
PTV
From 8 to 9 (2916.66/sec x 15 sec) 43750
i.e. for one day43750 x 30 1312527
TOTAL PROMOTION COST 5,672,527
Note: This promotion budget is for one month
TV advertising will be 2 times in a day and 4 days a week in first three months. Our ad will go on air in
the prime time broadcasting. In the first phase we will have print ads on the Dawn and Jang.