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company. The company came up with its first doing product “Haleeb
Milk” and later on it continued 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 a plant is located 65-km from Lahore in Bhai Pheru. The plant is
production process.
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image in the market. The company has already awarded ISO-9000 in
1997 for its strict quality control operational systems. Currently, the
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CORPORATE MISSION
CDL has the prime corporate mission of achieving and maintaining high
quality. But in broader term its mission statement states the following;
shareholders.
PRODUCT LINE
• Haleeb cream
• Candia milk
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CANDIA MILK
Candia is a product of CDL which was launched first time on April 12,
Now it is available across Pakistan including all the major cities through
It is packed in plastic bottles of two different sizes, 0.5 litre and 1 litre.
The plastic it contains consists of three layers. The outer and inner layer
polyethylene. The middle layer is black in color which protects the milk
from heat and light. As far as the packaging is concern, Candia has no
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PROCESSING
milk is received in the chiller containers and heated upto 8%. After that
Firstly, fresh milk is pasteurized. Then it goes from the stage where it is
at 140 oC, ultra high temperature (UHT) for about 4 seconds and then its
goes for aseptic packaging. After packaging milk is sterilized and send
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MARKETING STRATEGIES UNDERTAKEN
FOR LAUNCHING “CANDIA”
customers want and tailor all of the activities of the firm to satisfy those
includes:
identification.
selling strategy.
For the want satisfying ability of the product, the company specifically
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social standing. However, the image utility of Candia varies
1. Demographics
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buying patterns etc. The females in Pakistani society are now more
2. Economic Conditions
Business Cycle
that it will enter the recovery stage soon, which will be favorable
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Inflation
When Candia was launched, the inflation rte in the country was,
Competition
more quickly. Here are few changes in social and cultural forces
fresh milk. They feel that fresh dairy milk is impure and
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diseases. Moreover, there is a popular notion among the mass
kilometers out side the main city of Lahore near Bhai Pheru which
5. Technology
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The technology introduced by CDL for Candia is plastic bottle
deal with the competitive pressure already exists in the market. The
following:
• Dealers information
As regards the customers needs are concerned, both formal and informal
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different walks of life were interviewed personally and their responses
Telephonic and direct mail survey systems were totally ignored to get
CDL targeted before launching was specifically urban sector. Their was
product.
CDL divided the total market into smaller segments with a prospect to
1. Geographic Segmentation
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further subdivided in key business centers located in these areas.
2. Demographic Segmentation
married class.
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• As regards education, there is not segmentation basis
3. Behavioral Segmentation
on the basis of benefit desires from the product and its usage rate.
regards the usage rate of the product, which ranges from non
location and type. The Co has selected both single and multiple buying
sites.
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• The Avg. business order unprocessed milk is considerable large in
size therefore, the company has segmented. The order size on the
dairy industry.
staff members.
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The management of CDL has developed on marketing mix and reach
product for the mass audience. It has one pricing structure, one
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MARKETING MIX DESIGNED FOR CANDIA
1. PRODUCT
Core Part
Classification
consumer can buy it any time with a minimum effort. The category
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significantly different from the Tetra Pak milk already available in
packing.
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2. BUSINESS ANALYSIS
In business analysis, CDL had gone into the details of terms and
reports were made which estimated the cost of the whole project
3. MARKET TESTS
people will actually going to buy it or not. In these tests, sale and
4. COMMERCIALIZATION
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POSITIONING OF CANDIA
which CDL has positioned Candia “taste’. Candia has a very different
taste among all the available branches in the market, that is whey it is
“sterilization”.
Management of CDL is aware of the fact that every product has its own
particular life cycle stage. The product life cycle goes through four
now entered into growth stage where it experiences the target of market
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BRANDING OF PACKAGING STRATEGIES
Branding and packaging are the two actual parts of the product. Brand
name identifies the product,, it makes shopping easier and ensure the
the product here is “Candia”. It is the separate name used for the product
without using the corporate name which is CDL. Although the branding
is under corporate name (CDL) but CDL is not used combined with
brand name. Among the five levels of brand familiarity, Candia is at the
“Brand Recognition” level. People recognizes the brand and every body
Candia’s case, the primary packaging is the plastic bottle of 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 Packaging which
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consists of 12 bottle pack which is wrapped in a card board box covered
LABELING
Labeling consists of all the information about brand, brand mark, name
The pricing objective which CDL selected for Candia was purely “profit
oriented”. And the rationale was to achieve the target return. The target
milk. The company has concealed all its profit and sales figures because
general public.
for Candia. Following this strategy, the price of Candia is kept, low in
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relation to the target markets range of expected prices. The aim of using
DISCOUNTS
The every discounts offered were the trade discounts, which were given
same price to all retailers around the country. Moreover “One Pricing
Candia at one price, no matter how much quantity he / she buys. The
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Retail Rs. 15 Rs. 180
other brands.
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DISTRIBUTION STRATEGIES
Company Distributor
Retailer
Customer
that, if serves large number of retailers spread all over the country who
paid it economical and feasible. The company has only one warehouse
situated in Bhai Pheru from where this distribution takes place. CDL has
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PROMOTIONAL MIX
about its distinctive features. The promotional mix for Candia includes,
ADVERTISING
communication that the sponsor has paid for and in which the sponsor is
1. Television
2. Newspapers
CDL has advertise Candia milk in all reputed news papers of the
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3. Sign Boards
advertising. The major sales promotion activity carried out for Candia
activity.
PUBLIC RELATIONS
CDL has also carried out public relationing to build a favorable image
Cricket team by giving them cash prizes through out the cricket world
cup 1999.
PROMOTIONAL STRATEGY
strategy. CDL has used pull strategy to promote Candia because the
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market potential was already identified since UHT (Ultra High
stores. The margins given to retailers are 6.5% and to distributors are 9%
which are slightly higher than other UHT processed milks available in
the market.
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CUSTOMER FEED BACK
bottled milk. But still their exists an immense competition in this market.
Pak’s market share. Quite contrary to this are the consumer responses.
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%)
customers think that using a plastic bottle can not be hygienic. Exposure
to sunlight and heat has resulted in some disorders like color of the milk
darkens and the taste changes. 26% complaints about color. Candia has a
unique color. Sampled consumers were not satisfied with color of the
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chemicals added to the product. 8.6% of the consumers therefore
suspected the purity of the product. 8.6% of the consumers had some
2. Improved packaging
BRANDING
52% of the consumers are satisfied with current branding of the product.
consumers are not comfortable with the name of the product because
product).
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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.
1. 2 liters
2. 3 liters
3. 5 liters
PACKAGING
53% of the consumers are satisfied with current plastic packaging. 47%
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Out of 47% of the consumers dissatisfied with packaging 80% have
PRICE
37% of the consumers think that product is rightly 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.
consider value added benefits for which company (CDL) should charge a
28% of the consumers think that Candia appeals to every age group. But
82% feels that product appeals not only to children but adults as well.
Low fat content especially should be more attractive to people at the age
of 20 and above.
82% of the consumers think that company should enhance its company’s
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attract middle aged and above bracket. 18% thinks that enhancing
BRAND AWARENESS
47% consumers think that there is enough brand awareness among 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
ADVERTISEMENT
product and 66% feel that company lacks in advertising front. Majority
are of the view that company should have neon signs and billboards in
target areas.
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VALUE ADDED INGREDIENTS
53% consumers think that company should have price discounts element
in their sales promotion. Price ahs surely been one of the most important
consumers.
• Lucky draws
product and 22% consumers think that company should have elegance in
its product name and packaging. These consumers think that for this
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product, unique selling point would be its packaging which is different
from any other milk in local dairy scenario. Therefore, company should
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•
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REASONS FOR FAILURE
After conducting the whole research, we have been able to point out
these gaps and flaws, Candia has not shown those results which were
expected at the time. Its launch the whole advertising campaign carried
out in the beginning paid only in the first three months. After that the
sales drastically fell down which forced the company to cut its
around seventy users of Candia and twenty retail stores which keeps
Candia, we evaluated several key failure points which are listed below.
and colour of milk. The colour is not purely white and therefore
• Secondly, Candia has failed to target all the age groups. The milk
and the elderly people are not forgeted. Youth and the elderly
the highest purchasing power, elderly one the other hand do not
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prefer Candia or any other packaged milk. They rather go for fresh
milk.
They perceive the milk very thick and hence switch to other low
Its price is higher than other brands in the market. One time
time the prices are kept higher than other brands, which does not
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• Packaging is the only factor contributing to bad taste and colour of
allowing air to enter into the battle which further reduces the life
of the milk.
• The labeling does not includes much information about the milk
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• The packaging is deceptive in the sense that it is of white colour
while the milk if not pure white. The bottle should be transparent
launched, the company has not been able to increase the depth of
the product such as, flavours, colours, sizes and varieties. These
minds of consumes.
• Candia did not conduct any free sampling at the time it was
introduce.
6.5% which should increase. Similarly the sales are low which
results in low turn over for retailers. So, retailers are not happy to
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• CDL has never tried to adopt the strategy of seasonal price cuts,
which could enhance sales and also could help the company to
• The other major failure is that CDL is not providing deep freezer
Candia.
• Not been able to target remote areas, small town and northern
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Candia is in declining stage, where the company has cutted down its cost
on its promotions. The only customers left are the loyal ones. The
There are certain other important areas where Candia has failed to
perform well. One of the major reason of its failure is that one part the
market which is targeted i.e. higher income groups living in posh areas,
even their, Candia’s Sales have declined drastically. The figures taken
from the two well known stores in defense society Lahore depicts the
situation.
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