1

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
Muhammad Boota
Iqra memon
Arain

2k11/bba/21
2k11/bba/08

Maria

2k11/bba/16

Poonam harani
samoon

2k11/bba/27

2k11/bba/24

2k11/bba/22

Murk

Daniyal khan
Uzair ali

2k11/bba/06
2k11/bba/40

Syed

CONTENT
ACKNOWLEDGMENT
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 melko
SWOT Analysis
PEST Analysis
Marketing Mix

8. DIFFERENTIATE BETWEEN PURIB MELKO AND COMPETITVE

PRODUTS

ACKNOWLEDGEMENT
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

EXECUTIVE SUMMARY
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.

COMPANY INFORMATION
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 MILK INFORMATION

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.

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. The
middle 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.
.

PROCESSING OF MAKING CANDIA MILK

The method of collection of milk for Candia is through the approved supplier
who maintains cattles in accordance to the prescribed standards. Then the
milk 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 of
distributions. One bottle of Candia contains 3.5%of facts and 8.9 SNF.

MARKETING STRATEGIES FOR CANDIA

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
Environmental
Factor
On Candia milk

Environmental
Factor
On Candia milk
Environmental
Factor
On Candia milk

Environmental
Factor
On Candia milk

Environmental
Factor
On Candia milk

ECONOMIC CONDITION:
The following economic conditions which can affect the marketing activities for
Candia are:

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.

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.
Consumer market

Segmentation

Geographic
Segmentation

Behavioral
segmentation
Demographic
segmentation

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.

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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.

11

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.

12

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 in which 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:

13

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
Trade price
Retails
Bottle size
Trade price
Retails

1 liter (1 bottle)
Rs.28
Rs.30
0.5 liter (1 bottle)
Rs.14
Rs .15

12 liters (12 bottles)

Rs.336
Rs.360
6 litter (12 bottles )
Rs.168
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.

14

Sign board

Newspaper

Television

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

REASON OF FAILURE
After conducting the whole research. We have been able to point out obtain
areas of weakness in the marketing effort of Candia. Candia has not shown

15

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 retail
stores, 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 has
been able to stimulate the demand the age group of 6 12 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.

16

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

Pakistans mean 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 the
fat 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.

IMPROVING STRATEGY OF CANDIA MILK

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. We
decided 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.

17

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

LIQUID FORM:

chocolate flavor

vanilla flavor

banana flavor

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PURE MILK

PISTA MILK
MILK

CHOCOLATE MILK

STRAWBERRY MILK

VANILLA MILK CHOLESTEROL FREE MILK

BANANA MILK

ALMOND

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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 the
development 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:

21

PURIDB MELKO (CHOCOLATE FLAVOR):

Milk is the best source for dairy nutrients. Childrens refuse 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:

22

PURIDB MELKO (STRAWBERRY FLAVOR):

Kids also like strawberry flavor. Strawberry also give important nutrition
that is good for kids health that why we choose the strawberry flavor.
The nutrition in Puridb melko (strawberry flavor) is;

23

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 melko is:

24

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:

25

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:

26

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 melko
are.

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%

27

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;

28

PROCESSING OF MAKING PURIDB MILK:

PROCESSING OF MAKING LIQUID MILK:

29

PROCESSING OF MAKING POWDER MILK:

30

PACKAGING:
The packaging is one of the most important factors which help to attract the
customer. Packaging of puridb melko consists of:

Layer

Design

Packaging
layer
labeling

Shaping
Color

LAYERS:

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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:

32

PACKAGING COLOR:
We are choosing three standard colors that are red, green, and sky blue. And
other colors on packaging depend on different flavors of milk.
The reasons behind of choosing these colors are:

RED COLOR:

red means energy, passion, excitement and strength.

Using red for your packaging colors draws attention to your product, stimulates
the senses and excites the potential purchaser

GREEN COLOR:

For packaging colors, green suggests natural, organic and

healthy, a good color to use for environmentally friendly products.

SKY BLUE: Blue relates to trust, honesty and reliability, strength and unity.
When used in your packaging colors it communicates trust and reliability in the
product.

Other colors: other color depends on the flavor of the milk like:
Chocolate is brown so color on packaging is brown and other color on packing
is same like this.

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DESIGN:
Designs on packaging also attract the customer. Different flavor of milk has
different design on their packaging. Design on packaging shows that what
product is actually.

LABELING:
Labeling on packaging give important information about product. In the
packaging of Candia milk there is no such information about product but in the
packaging of puridb melko provide all necessary information like:

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SEGMENTATION AND TARGETING:

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

SEGMENTATION

GEOGRAPHIC
SEGMENTATION

BEHAVIOURAL
SEGMENTATION
DEMOGRAPHIC
SEGMENTATION

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.

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DEMOGRAPHIC SEGMENTATION:
In term of demographic segmentation, we divided the market on the basis of
income, age, gender, and class.

Income

Age

Target consumer of
lower and middle class
income.

these different form and

flavor of milk are target
at different age group
powder milk(5-15)
flavor milk (15-34)
cholestore(34 + ).

Gender

Target male and female

Social class

Target upper class and

upper middle class

36

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 positioning strategy 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 negative
effects.
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

pure milk
cholesterol free milk
almond flavor
chocolate flavor
strawberry flavor
vanilla flavor
pista flavor
Powder form milk

Banana flavor
Chocolate flavor
Vanilla flavor
Strawberry flavor

ml

250ml
250ml
250ml
250ml
250ml
250ml
250ml
gm

400gm
400gm
400gm
400gm

trade price

22 Rs
23 Rs
trade price

260 Rs
-

retail price

24Rs
25Rs
retail price

270 Rs
-

39

PLACE/DISTRIBUTION:
Company

Retailer

Customer

PROMOTION:
Promotion of purid,b melko depend on:
Advertisement
Public relation

ADVERTISEMENT:
We will advertisement on different channels.

Distributor

40

41

DIFFERENTIATE BETWEEN PURIB MELKO

AND COMPETITIVE PRODUCTS:
Reasons

Price

Liquid form
PuridB melko

Olpers milk

Nestle
milkpack

24 RS (250ml)

26 Rs(250ml)

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

Tv
Radio
Billboards
Shops
Printers add
Pamphlets
1 form only
liquid

Radio
Newspaper
Magazines
Billboards
cables

Newspaper
Video

Liquid

Liquid

Urban

Urban

Urban

Advertisement Signboard,
Newspaper
Pamphlets
TV
Social media
Competitive
advantage
Target market

Position
strategy

2 forms of
milk
Powder/liquid
Urban
Lower/middle
class
Test make
healthy
wealthy life

Competitors

Jo dill khol k
Jaan bnao
jeety hen
unhi k liye hai
olpers

Pakola

Milk make
irresistible