Executive Summary of candia milk Project

8/10/2019 Executive Summary of candia milk Project

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Start With The Great Name Of Allah Who Is Most Beneficial And Merciful

A Project on

An Improvement Marketing Strategy For

CANDIA MILK

ASSIGNMENT OF : CONSUMER BEHAVIOR

Given by : Mam Mehwish

Group Members Are:

Ramsha mazhar 2k11 bba 27

Muhammad Boota 2k11 bba 21

Iqra memon 2k11 bba 08 Maria

Arain 2k11 bba 16

Poonam harani 2k11 bba 24 Murk

samoon 2k11 bba 22


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Daniyal khan 2k11 bba 06 Syed

Uzair ali 2k11 bba 40


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CONTENTACKNOWLEDGMENT

1. EXECUTIVE SUMMARY

2. COMPANY INFORMATION

3. CANDIA MILK INFORMATION

4. PROCESSING OF MAKING CANDIA MILK

5. MARKETING STRATEGY FOR CANDIA MILK

Dynamic environment for Candia milk

Consumer market segmentation

Target market for Candia

Marketing mix strategies for Candia milk

6. REASONS FOR FAILURE

7. IMPROVING STRATEGY FOR CANDIA MILK

Product information

Processing of making purid,b Melko

Packaging

Segmentation and targeting

Positioning of Purid,b melkoSWOT Analysis

PEST Analysis

Marketing Mix

8. DIFFERENTIATE BETWEEN PURIB MELKO AND COMPETITVE

PRODUTS


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In regard of this report first of all we would like to thank almighty Allah whose

help made us able to complete this report.

We extend our heartiest thanks to MADAM MEHWISH, for conducting this

course and making it interesting and knowledgeable, without his efforts and

co-operation the report would not have been possible. We also thank for his

confidence and trust she had in us, importance of which can in no way be

under estimated.

We are equally grateful to university of Sindh for providing us the

opportunities to pursue our endeavor. We hope readers of this report can

complement the depth of the study and efforts put into it.

THANKING YOU

ACKNOWLEDGEMENT


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We choose a product of Candia milk which is failure product of CDL (Chaudhry

dairy limited) company. The purpose of choosing this failure product is to make

new marketing strategies for this product.

In this report we discuss the causes behind the failure of Candia milk product

and making improvement strategies from which product attract the customer

and also competitive with revival.

CDL (chaudhry dairy limited) is one of the reputable and renowned company in

Pakistan. CDL was establishing in 1984 as a private limited company. The

company came up with the first going product Haleeb Milk and later it

continue to expand its product line.

Candia is a product of CBL which was launched first time on April 12, 1999.

Candia is basically a French brand and it is processed and packed under

licensed by CBL. Candia is already popular brand in Europe and other 52

countries.

EXECUTIVE SUMMARY

COMPANY INFORMATION

CANDIA MILK INFORMATION


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Now it is available across Pakistan including all the major cities through CDL

distribution channels. It is every unique in its packaging and features. It is

packed in plastic products bottles of two different size 0.5 liter and 1 liter. The

plastic it contains consists of three layers. The outer and inner layers are white

in color and compose of same formulation of high density polyethylene. Themiddle layer is black in color which protect the milk from heat and light as for

as packaging is concern has no competitor in local market.

.

The method of collection of milk for Candia is through the approved supplier

who maintains cattles in accordance to the prescribed standards. Then themilk is tasted in laborites by conducting 8 different tastes. The milk is received

in the chillers containers and heated up to 8%.after that the milk is transported

to the factory for processing.

The process of Candia milk under does through 6 different stages. Firstly fresh

milk is pasteurizing. Then it goes from the stage where it is standardize and

homogenized. After homogenized the milk is heated at 140 degree centigrade

ultra high temperature for about 4 seconds and then its goes for aseptic

packaging. After packaging is sterilized and send to the channels ofdistributions. One bottle of Candia contains 3.5%of facts and 8.9 SNF.

PROCESSING OF MAKING CANDIA MILK


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In the marketing orientation stage company identify what consumer want and

see the all activities of the firm to satisfy those needs as efficiently possible.

DYNAMIC ENVIRONMENT FOR CANDIA

MARKETING:

The successful marketing depends largely on company ability to manage its

marketing programs within its environments.

The environmental factors which can influence on Candia sale {Candia product}

are

.

ECONOMIC CONDITION:

The following economic conditions which can affect the marketing activities for

Candia are:

MARKETING STRATEGIES FOR CANDIA

Environmental

Factor

On Candia milk

Environmental

Factor

On Candia milk

Environmental

Factor

On Candia milk

Environmental

FactorOn Candia milk

Environmental

FactorOn Candia milk


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Inflation (When Candia was launch, the inflation rate in the country was,

6.5% officially as compare to the last year inflation rate of 8.3%.)

Competition (Candia has no competition in the local market. But, as core

product is concern, there is substitute threat).

SOCIO/CULTURE CHANGES:

Few changes in socio/culture forces that have significant marketing implication

for Candia. The socio/culture change rapidly the people perception about the

UHT Milk increase and they think that fresh milk is more pure than UHT milk

but some people think that UHT milk is good for health.

POLITICAL AND LEGAL FORCES:The political and legal forces which effect CDL marketing effort for launch the

Candia were the environmental anti population law, according to which a

company is prohibited to use a plastic packaging which is not recyclable.

Candia has special USP packaging which is recyclable and environmental

friendly.

TECHNOLOGY:The technology introduce by CDL for Candia is plastic bottle packaging which is

also unique selling point because there is no other local company providing

such packaging.


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CONSUMER MARKET SEGMENTATION;

CDL divided the total market into smaller segments with a prospect to enhance

effective acceptance and sales of Candia. The following segmentation basis

was applied.

GEOGRAPHIC SEGMENTATION:As concern geographic segmentation, CDL has segmented its potential market

in all the four provinces. As far as the residing areas are concern CDL has

specifically segment its market in the urban sectors.

Consumer market

Segmentation

Behavioral

segmentation

Demographic

segmentation

Geographic

Segmentation


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DEMOGRAPHIC SEGMENTATION:In term of demographic segmentation, CDL has divided the market on the basis

of income, age, gender and style.

Income

Target consumer of

candia has high income

(10,000-above)

Age

No segmentation in age

group.

Gender Target male and female

Social class Target upper class and

upper middle class

BEHAVIORAL SEGMENTATION;In terms of behavioral segmentation, CDL has divided the market on the basis

of benefit desire from the product and its usage rate. As regards the benefit desired from the product, CDL has segmented the

market on the basis of quality and test.


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TARGET MARKET FOR CANDIA;

The CBL target the product specifically on urban sectors. There was no ultimate

consumer as no age limitation were specify for the product.

MARKETING MIX STRATEGIES FOR CANDIA

MILK:

CDL design a complete marketing mix for Candia which includes:

1. PRODUCT:Candia is a commodity which is offered to the consumer to fulfill their needs. It

is processed milk which is treated with UHT technology. It is a liquid form white

in color and packed in plastic bottles which are available in 2 sizes.


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PACKAGING AND BRANDING OF PRODUCT:

Branding and packaging two actual parts of products. Brand names identify

the product. The brand name of the product is candia.it is separate name

used for the product without using the cooperate name which CDL. Although

branding is under cooperate name CDL but CDL is not used combine with

brand name.

As far as the packaging is concern, CDL is following families packaging

strategies inwhich the bottles of Candia are place in one container. Packaging

includes all the details about product. In Candia case, the packaging is the

plastic bottle of white color with a lid on its opening. The packaging is use to

protect the milk from heat and light.

POSITIONING OF PRODUCT:

The positioning of Candia was positioning is related to a product class or

attributes the attributes on which CDL has positioned Candia taste.

2. PRICING STRATEGIES AND OBJECTIVES:


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The pricing strategy objective which CDL selected for Candia was purely profit

oriented.

There are no discount offered for consumers

The following table shows the existing prices for Candia:

Bottle size 1 liter (1 bottle) 12 liters (12 bottles)

Trade price Rs.28 Rs.336

Retails Rs.30 Rs.360

Bottle size 0.5 liter (1 bottle) 6 litter (12 bottles )

Trade price Rs.14 Rs.168

Retails Rs .15 Rs .180

3. DISTRIBUTION STRATEGIES:

The chain of distribution adopted for Candia is:

Firstly the companies give its product to distributor and distributor give

company products to the retailer and finally it reaches to customer. The

company has one ware house situated in (Bhai Pheru) from where these

distributions take place.

4. PROMOTIONAL MIX:Candia is a new product, so the objectives are too aware and inform people

about its distinctive features. The promotion mixes for Candia include,advertising, and public relation.

ADVERTISING;

The followings are include in advertising.


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Sign board Newspaper Television

PUBLIC RELATIONS

CDL also carried out public relation to build a favorable for an organization.

After conducting the whole research. We have been able to point out obtainareas of weakness in the marketing effort of Candia. Candia has not shown

REASON OF FAILURE


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those result which were expected at time. It launches the whole advertising

campaign carried out in the beginning paid only in the first three months. After

that sales drastically fell down which forced the company to cut it expenditure

on promotions.

On the basis of feedback gathered from around user of Candia and retailstores, which keeps Candia, we evaluated several key failure points which are

lists below.

The foremost important attribute where Candia behind is the taste and

color of milk. The color is not purely white and therefore people suspect

that it is not pure and fresh.

Secondly Candia has failed to target all the age groups. The milk hasbeen able to stimulate the demand the age group of 612 youth. Youth

and elderly people are not targeted.

Candia has failed to persuade the health conscious people, who mostly

being to their target market of higher income group. They perceive the

milk very thick and hence switch to other very low fat milk available in

the market.

Another area of weakness is the pricing strategy used for Candia. Its

price is higher than other brand in the market. One time Candia is

following market penetration strategy and at same time the prices are

kept higher than other brand, which does not allow Candia to penetrate

in the market.

Regarding packaging of Candia, the plastic used in thick as compare to

foreign plastic bottled available in the market. This plastic used is not

approved by any of the association. While the plastic used in the bottles

of original French Candia is FDA approved.

Packaging is only factor contributing to bad taste and color of milk. Once

it is expose to sunlight the milk get discolored

Instead of plastic cap. Foil is used on the mouth of the bottle as sealed

wrapping. If seal is teased off for use it remains unclose allowing air to

enter into the battles which further reduce the life of the milk.


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Coming to the brand of the product, the name Candia, most of

Pakistansmean more likely the name of some candy. The brand name is

suitable for flavored milk rather than plain milk.

The labeling does not include much information about the milk only thefat contents are percentage is mentioned which not enough to inform a

customer about the important nutrients is containing in the milk.

The packaging is deceptive in the scene that it is off white color while

the milk is not pure white. The bottle should be transparent so that the

exact color of the milk is visible.

Since it is launched, the company has not been able to increase the

depth of the product such as color, flavors, sizes and varieties. These

innovations are necessary in building the image of brand into the mind

of consumer.

There is no incentive or discount offered to retailer and end consumers.

Not been able to target remote areas, small town and northern areas of

Pakistan where there is lot of demand for tea.

Now we make improvement in strategy for failure product Candia, which

satisfy the customer and fulfill the need of customer.

PRODUCT INFORMATION:

Candia milk is the product of CDL. This was failed from different causes. Wedecided to offer same product with different name, features, characteristics,

flavors, process and packaging. The name which we are choosing for attracting

consumer market is PURIDB MELKO. Puridb melko is derived from Czech

language which means pure milk. In the place of Candia milk, we are providing

you Purid,b melko in a different form and flavor.

IMPROVING STRATEGY OF CANDIA MILK


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PRODUCT OFFERING IN DIFFERENT FORM:We are offering Puridb melko in two forms:

Powder form Liquid form


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PRODUCT OFFERING IN DIFFERENT FLAVOR:

POWDER FORM:

Strawberry flavor chocolate flavor vanilla flavor banana flavor

LIQUID FORM:


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PURE MILK CHOCOLATE MILK STRAWBERRY MILK BANANA MILK

PISTA MILK VANILLA MILK CHOLESTEROL FREE MILK ALMOND

MILK


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PRODUCT OFFERING:

POWDER FORM:

In this we provide milk in powder form. This powder form milk is target to the

kids. This powder form milk is rich in calcium to help build healthy bones and

teeth, we know milk is good for all the family but getting kids to drink milk

however can be tricky. Purid,b melko has help generation of kids to enjoy milk

by making it taste delicious with good flavor and color. Purid,b melko contain

vitamin D, essential to help the body absord the calcium in milk for thedevelopment of healthy bones in kids, as part of healthy, balance diet and

lifestyle. The flavors which are including in powder form are:

PURIDB MELKO(BANANA FLAVOR):

Banana provides some important nutrients to the body that is good for

the kids health that why we choosing banana flavor.

The nutrition in purid, b melko (banana flavor) are:


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PURIDB MELKO (CHOCOLATE FLAVOR):

Milk is the best source for dairy nutrients. Childrensrefuse to drink pure

milk. They want tasty flavor in milk. So we put chocolate flavor in

powder form milk because children like this flavor. Chocolate powder

milk has the some same nutritional power of white milk. The nutrition in

purid,b melko (chocolate flavor) are.

PURIDB MELKO (VANILLA FLAVOR):Vanilla is another flavor which kids like. This is also good for kids health

and and also provide health benefits and important nutrition. The

nutrition in puridb melko (vanilla flavor) is:


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LIQUID FORM:In this we provide milk in liquid form. This liquid form milk is target for

teenagers, youngster and adults. Different type of age group like pure milk and

also different flavor in milk. Following are the liquid form in purid b melko.

PURIDB MELKO(PURE MILK):

Milk build strong bones and teeth, it provides calcium and other

nutrition which is good for health of consumer. It provides 50% calcium

the nutrition in Puridb melkois:


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PURIDB MELKO(CHOLESTEROL FREE MILK):

We provide cholesterol free milk for those consumers who have high

cholesterol and who do not drink milk because of cholesterol that why

we providing cholesterol free milk. In this we also provide nutrition in

puridb melko (cholesterol free milk).

PURIDB MELKO (ALMOND FLAVOR):

Almond is good for mind .this also provide other nutrition that is good

for consumer health and many consumer like this flavor that why we

choosing this flavor. The nutrition in purid, b melko are:


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PURID,B MELKO (CHOCOLATE FLAVOR):

Consumer want different taste in milk, many consumers do not like pure

milk. They want delicious taste in milk that why we chose chocolate

flavor, they also provide nutrition which is good health. The nutrition in

the puridb melko is:


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PURIDB MELKO (STRAWBERRY FLAVOR):

Consumer also like strawberry flavor. With good taste it also gives

nutrition to the body. The nutrition which involve in the Puridb melkoare.

Nutrition Facts

Serving Size 1 Serving (100 g)

Per Serving% Daily Value*

Calories 230

Calories from Fat 72

Total Fat 8g12%

Saturated Fat 5g25%

Cholesterol 30mg10%

Sodium 100mg4%

Carbohydrates 33g11%

Dietary Fiber 0g0%

Sugars 30g

Protein 7g

Vitamin A 6%

Calcium 25%


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PURID,B MELKO (VANILLA FLAVOR):

Vanilla is a good flavor which consumer like. It provides important

nutrition for growth and development. The nutrition in the purid,b

melko are;


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PROCESSING OF MAKING PURIDB MILK:

PROCESSING OF MAKING LIQUID MILK:


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PROCESSING OF MAKING POWDER MILK:


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PACKAGING:

The packaging is one of the most important factors which help to attract the

customer. Packaging of puridb melko consistsof:

LAYERS:

PackagingDesign

labeling

Color

Shaping

Layer


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PACKAGING SHAPING:

There are many shaping of milk products but we chose standardize shaping for

the purpose of packaging of Candia milk. Candia milk packaging is attractive for

this reason we decided to change the shape of packaging.

PACKAGING SHAPE OF POWDER FORM MILK:

PACKAGING SHAPE OF LIQUID FORM MILK:


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SEGMENTATION AND TARGETING:

SEGMENTATION:We divided the market in to smaller sagments .the following segmentation are

applied.

GEOGRAPHIC SEGMENTATION:Puridb Melko available in four provinces and full is trying to distribute the milk

as much as possible in more cities. And focus on urban areas.

SEGMENTATION

BEHAVIOURAL

SEGMENTATION

DEMOGRAPHIC

SEGMENTATION

GEOGRAPHIC

SEGMENTATION


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BEHAVIORAL SEGMENATATION:

In the term of behavior segmentation, we divided the market on the basis of

benefits that consumer seek in the milk. As regards the benefits desired from

the product, we segmented the market on the basis of bestquality, taste, flavor

and colors.

TARGET MARKET FOR PURIDB MELKO:We target Puridb melko in urban areas,middle and lower income class. And

different age group.

POSITIONING OF PURIEB MELKO:The positioning of Candia was positioning is related to a product class or

attributes the attributes on which CDL has positioned Candia taste.But

their positioning not understands by consumer.

.

Purid b melko has adopt the functional positioningstrategy like

Great taste makes healthy wealthy life

We hope that consumer understand this positioning.

SWOT ANALYSIS:We analysis the SWOT of Puridb melko

STRENGTHS: Quality product

Try to conduct fresh and clean milk

Strong supply chain networks

Commitment to high quality

Focus on research and development

Providing different flavor at different age group

Good in packaging.


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WEAKNESS: Does not give milk on credit

Puridb melko provide only milk not juice, water, ice-cream .

OPPORTUNITIES: Innovation in product development, packaging and presentation. Increase employments for the people

THREATS: Lack of education among the farmer

Load shedding

Competitors

Perception and price differentials

PEST ANALYSIS:

POLITICAL FACTOR: Unstable political conditions strikes and road blocking creates problem

for delivery on time.

ECONOMIC FACTOR: Inflation rate also effect on product.

in economic factor we face our competitors( olpers,pakola,nestle) which

influence on our product.

SOCIO-CULTURE FACTOR: People mostly prefer fresh and open milk and rely less on processing

milk because they think that milk companies add chemical in the milk

during processing.

TECHNOLOGICAL FACTORS:

Some time technology has positive effect and some time have negativeeffects.

Positive In scene that like new machinery in the production of milk.

Negative in scene those workers have no knowledge about the new

technology.


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MARKETING MIX:

Marketing mix contain:

Product: Price

Place / distribution

Promotion

PRODUCT:We provide you product in different form and different flavor, as mention in

above (product information). These forms of products provide all features,

charatertictes which consumer wants.

PRICE:

Liquid form milk ml trade price retail price

pure milk 250ml 22 Rs 24Rs

cholesterol free milk 250ml 23 Rs 25Rs

almond flavor 250ml - -

chocolate flavor 250ml - -

strawberry flavor 250ml - -

vanilla flavor 250ml - -

pista flavor 250ml - -

Powder form milk gm trade price retail price

Banana flavor 400gm 260 Rs 270 Rs

Chocolate flavor 400gm - -

Vanilla flavor 400gm - -

Strawberry flavor 400gm - -


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Retailer

Customer

PLACE/DISTRIBUTION:

Company Distributor

PROMOTION:

Promotion of purid,b melko depend on:

Advertisement

Public relation

ADVERTISEMENT:

We will advertisement on different channels.


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DIFFERENTIATE BETWEEN PURIB MELKO

AND COMPETITIVE PRODUCTS:

Reasons Liquid form

PuridB melko Olpers milk Nestle

milkpack

Pakola

Price 24 RS (250ml) 26 Rs(250ml) 25 RS (250ml) 26 Rs(250ml)

Advertisement Signboard,Newspaper

Pamphlets

TV

Social media

TvRadio

Billboards

Shops

Printers add

Pamphlets

RadioNewspaper

Magazines

Billboards

cables

NewspaperVideo

Competitive

advantage

2 forms of

milk

Powder/liquid

1 form only

liquid

Liquid Liquid

Target market UrbanLower/middle

class

Urban Urban Urban

Position

strategy

Test make

healthy

wealthy life

Jo dill khol k

jeety hen

unhi k liye hai

olpers

Jaan bnao Milk make

irresistible

Competitors

Documents

Executive Summary of candia milk Project