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.