Semester “Spring 2011”
“Marketing Management (MKT501)”
idea solution of Assignment No. 01 Marks: 20
CANDIA MILK IN PAKISTAN:
CDL (chaudhry dairy limited)is very reputable company in Pakistan which was
established in Pakistan in 1984 as private limited company.cdl has started his business
with his first product haleeb milk and continued its product line. Candia is a product of
cdl which was launched in 1999. Candia is basically a French brand and its is processed
and packed under licensed in cdl. Candia is already is very popular brand in Europe and
other 52 countries. Now it is also available in Pakistan, s all major cities under cdl
distribution channels.cdl invested around 200 million rupees to launch Candia in
Pakistan. Out of which 10to 15 million spend on its advertisement as early launched
during w.cup 19999.
Reason why Candia milk lose its market in Pakistan.
AFTER conducting the whole research we have been able o point out that there is area of
weakness in their market effort of Candia. Candia has not shown that result which were
expected that time. It’s launched the whole advertisement expense in beginning only paid
in first three month. After that the sale of Candia milk has been fall and its force the
company to fell down its promotion expenses. we evaluate the major factor of its failure
are listed below.
Color and taste.
the important attributes that Candia is behind in color and taste of milk. The color is not
purely white and the people suspect that it’s not pure milk.
Age of group.
Candia is also not covered to all ages of group. Candia fails to cover to target all age of
Group. The milk has been able for the age group 6-12. Youth and elderly people are not
targeted. The young people age between 20 -34 has high purchasing power. On the other
hand they don’t not prefer for Candia or any other packaged milk and they will go for
fresh milk.
Pricing.
Another area of weakness is the price strategy which was used for Candia. Its prices
higher than the other brand available in Pakistan .which does not allow Candia to
penetrate in the market
Packaging
Packaging is the only factor contributing to bad taste and color of the milk. it is a usp
packaging but if once its exposed in the sunlight the milk get discolored..
BRANDING
Now coming on the branding of the Candia. The name Candia to most of the Pakistan, s
means like a name of some candy.pepole are not aware of the original Candia which was
famous in Europe and other 52 countries around the world. The brand is suitable more
then a flavor milks rather then plain milk.
Depth.
Another major reason of the failure of Candia that the company has been not able to
increase the depth of the product since its launching such as flavors colors sizes and
varities.these innovation are necessary for create a good images in the mind of the
consumer,.
Incentives
There is no incentive or discount offered to consumers.moreever there is no bulk
discounts that buy 12 get one free. This practice is followed by the competitors. the cdl
also not providing deep freezer and fridge to big retailers outlets and departmental stores
of Candia
There is many other areas where Candia milk is not perform well. one of them is target
market of Candia milk. Candia milk target the high income’s people living in pushing
areas which are dramatically reduced its sale.
Corrective actions which could have been taken by the company
To avoid the failure.
Buyer behavior and readiness
=Candia’s market share is declining and there is a need is to make a come back policy to
strengthen the brand and this can only be done through promotion mix to make an image
in the minds of the people.
Advertising strategy:
=During summers, as the milk production declines because of low supply of raw milk
from dairy farms; the supply decreases, which increase the demand for, packaged milk, it
is recommended that the management should emphasize on Pull strategy as Candia now
may be used as an alternative product. Advertisements, print media, electric media
campaign, etc.
Sales promotion strategy:
=During winters, push strategy is recommended by giving incentives to the consumers
because the milk supply is good and the competition is intense.
Personal selling tools:
=Emotions- sales force will exploit the emotions of parents and persuade them to select
Candia as drinking milk for their kids.
Direct marketing tools:
It is strongly recommended that Haleeb foods must a effective web presence in this
interactive world .To promote the entire site, an online marketing program must be
launched. A comprehensive, highly targeted group of destination web sites must be
chosen for the program. The web site should be registered with yahoo search portal. And
a number of tactical elements will help drive online awareness and inquiries into the
program
Internal Communications:
Over the years, organizations have now started understanding the importance of internal
communication in achieving corporate goals and objectives.
=Our IMC team has identified some of the internal communication irregularities.
=Information about the inflow of raw milk for the purpose of processing takes too much
time because of excessive interference by the management.
=The packaged milk supply is irregular in some areas for the reason that market demand
and supply information is not effective.
=Due to the above-mentioned reason, some of the processed milk is wasted thus
enhancing costs, which in turn creates a harm effect on corporate overall profitability
ratio.
We strongly believe that by implementing the above-mentioned strategies the
management will be mighty capable of enhancing corporate profitability, create a
resounding brand name of Candia.
Positioning strategy:
=Candia has a current positioning strategy that Candia milk is mostly meant for drinking
purposes. Our IMC team firmly believes that the management has to somehow modify
the product positioning.
=Before proceeding, our IMC team believes that the management should also carry this
positing strategy of using Candia as a drinking milk as supported by the product slogan”
ghata ghat”.
=We suggest that the product must also be presented as a dairy commodity that may be
use for tea users as there is a large tea user market.
=The product must be communicated among the consumers as milk that is highly
suitable for the purpose of making desserts, milk shakes, sweet dishes and other dairy
made products.
=The promotion must be designed in such a fashion that consumers start buying Candia
for other than drinking purposes.
Packaging strategy:
=Candia is not available in 250ml pack that now seems to be very vital reason for its low
market share.
=Keeping in mind the above mentioned fact it is strongly recommended that Candia
must be introduced with 250ml packing that may be developed in paper packing.
=When it comes to drinking or any other purposes consumers tend to buy 250ml pack of
milk and it is more convenient to handle.
=This strategy will surely add to the brand value of Candia as the need for 250ml pack is
more purchased by the consumers.
Incentives to the retailer or whole seller:
Incentives should be given to retailer in shape of deep freezer return tickets and free
transportation services. Incentives to dealers should also be given like; the best dealer of
the year should be awarded with a brand new Suzuki pick up. The second best dealer of
the years should be awarded with motor cycle.
The new marketing mix should be applied on the product.
1 Product:
a product may be a good service person. or an idea. Candia is a commodity offered to the
consumer to fulfill their needs. it is a process milk which is treated under UHT
technology. It is in liquid form but after ten years of its launching it have just two sizes.
So there is lot of consumer which like that the product should be also different sizes like
2 liters
3 liters
5 liters etc.
And it also should be in carton packing coz some consumer is not like to use it in plastic
bottles especially in summer season.
2 Price
Following factors should keep in mind by CDL by determination the price of Candia
milk.
Price should be according to the product demand of public. Prices should be that which
gives maximum revenue to the company. Prices should not be too high or too low from
the prices which collect by the compotators is charging by their customers otherwise
nobody will purchase their product.
3 place
we will use push strategy for our product by using various promotional tactics and
through media. distribution will be divided in zonal areas which will be five in
numberz.we will directly approach retailer by providing credit facility and bonus in form
of incentives. we will also provides trade allowances to our distributors and retailers to
further intensify usage of push startgy.other then these of some special points are also
being looked after by direct sale vehicle.
4 Promotion
following ways should be adopted for the promotion of Candia which is helpful for the
improvement of the sale of Candia
Television
television can play an important role for the promotion of Candia a marketing budget
should be spend for the add on different TV channel for the promotion of that product.
News papers.
Cdl should advertise of Candia milk in all reputed daily newspapers like Jung dawn din
nawa_e_ waqat nation etc
Sign board
Sign board and billboard can also play a vital role in the promotion of Candia . Candia
neon sign can also be observed on the eye catching location in the cities. .
Its just an idea plz don’t copy or paste make your own