“Assignment 2”

Marketing plan For Candia Milk

Executive Summary:
We choose a product which is failure product of CDL Company. The purpose of
choosing this failure product is to make new marketing strategies for this product.
In this report we discuss the cause behind the failure of Candia Milk product and
making improvement strategies from which product attract the customer and also
competitive with rival.
A suitable marketing strategy was developed for the overhaul of the Candia Milk
product line and the overall improvement of the brand after doing market
research. The company will not only be able to expand its business, but will also be
able to enhance its brand recognition by making effective use of mass media.
Malnutrition and sanitation are one of the biggest problems facing the country
right now. It is assumed that we will bring change in every customer life as it is an
emerging trend by encouraging a healthy lifestyle.

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Table of Contents:
 Introduction ……………………………………………………………………………………Page3
 Situation Analysis
 SWOT Analysis……………………………………………………………………….Page3,4
 Competition…………………………………………………………………………..Page 5
 Distribution……………………………………………………………………………Page5
 Marketing Strategy:
 Target Markets……………………………………………………………………..Page 6
 Positioning ……………………………………………………………………………Page6
 Strategies………………………………………………………………………………Page6,7
 Marketing Mix……………………………………………………………………….Page7,8
 Marketing Research……………………………………………………………...Page 9
 Financials………………………………………………………………………………………...Page9
 Controls
 Implementation………………………………………………………………Page9,10,11
 Activities to be implemented
 HOW IMPLEMENTATION TO BE DONE
 RESPONSIBILITIES FOR IMPLEMENTATION
 TIME AND LOCATION OF IMPLEMENTATION

 Marketing Organization…………………………………………………..Page11

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  Introduction:
Candia is Europe's most popular brand. And under the CDL, a very popular brand of
milk was introduced in Pakistan. Candia fails to settle on the Pakistan market after
a short time period. Candia milk did not do a proper campaign for advertising and
marketing. Candia's lack of important attributes are the color and taste of milk. It's
not pure white because people start to think the milk isn't pure and hygienic. The
pricing strategy used for Candia is another area of weakness. Its price was lower
than the other brands in Pakistan, so the consumer thinks that their quality was
not up to the brand. Packaging is the most important factor that contributes to the
milk's bad taste and coloring. Although it has a USP packaging, the milk becomes
discolored when exposed in the sunlight.
Now we're going to re-launch Candia with a new name called "Purity" We're going
to change people's view. And we come to the market with the brand name "Purity"
with a new pricing and marketing strategy to keep in mind the consumer's need.
Now we're going to completely alter the customer's view and promote it
differently. For the time being we are come into the market with just milk but after
that we also launch milk make products like ice cream, yogurt, cream and different
liquid adders(skim milk). Advertisements, print media, electric media campaign,
radio, bill boards and sales forces must be used for the heavy promotion of the
product. To promote the entire site, an online marketing program was launched.
Social web sites are also use to promote the product. And we assure that now we
are getting success to promote the PURITY. And change the perception of
consumer and also successful to get a large market share.

 Situational Analysis:
o SWOT Analysis:
Followings are the main strengths of Candia milk:
 The major strength of Candia is the product itself because there is no other
product with such uniqueness in the market.
 It was more caramelized milk in its nature as compared to other products of
market.

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  It was in a bottle shape so it was easier to open. Just take the lid off and
pour milk.
 Packed in food grade plastic bottles. These bottles are manufactured from
imported materials at CDL Foods latest plant. They ensure longer shelf life,
highest quality and storage with ease of use.
 Affordable and reasonable pricing strategy was followed by them.
Followings are the main weaknesses of Candia milk.
 Their product is ignoring female taste; Mostly, Men use to drink thick milk as
compared to Women.
 The color of the milk was yellowish thus making the consumers reluctant to
buy.
 There is no running promotion. Only Niche markets targeted to serve the
likes of N.W.F.P and Punjab.
 Music plays a vital role in marketing of any product. According to one
research in 70% ads, it is music, which attracts the attention of audience.
The ads for Candia did not have any music or melody in them.
 Promotional strategy was poor and required huge capital.
 Consumers get more attracted through competitor’s products and they are
failed in convincing them.
Followings are the main opportunities of Candia milk;
 They can introduce flavored milk.
 Big Market is there because 77% of the market share is yet to be
captured.
 Large CDL distribution channel.
Followings are the main threats of Candia milk.
 Haleeb milk is its biggest threat since there will be a cannibalizing
situation in the market at that time.
 Tetra Pack is the biggest threat for CANDIA because it was the only
bottled natural product in Pakistan.
 In Pakistan people are afraid to try new product, lack of interest shows
about product.

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 o Competition:
So, from Nestle (Milk pack), Engro Olpers, Nurpur, we want to go one step ahead.
We also set up the sales force to make our products available throughout Pakistan.
Focus on consumers and try to understand their emotional and physical desires.
Introduce a wide range of products that all age groups can consume. Focus also on
lower-income consumers in the long run and make their products available at
affordable prices while providing a diet that compensates for local dietary
deficiencies and includes nutrition. As one of the major sources, we should use
promotion to reach their customers to make them aware of the different products
introduced on the market and the value of the products introduced. We should
adopt a favorable marketing channel that is best suited to consumers. We also
need to maintain a good customer relationship based on the emerging market's
taste and demand.

o Distribution:
The rationale behind selecting this kind of a distribution channel was 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 all over Pakistan 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 where CDL is trying to deliver its product to
every retail outlet in urban areas.
So we want to go one step ahead from Nestle. We also make the sales force to
make available our products all over the Pakistan. Provide vehicles for facilitate
distributors in distribution. And tough monitoring department head will look out
them. We will divide the country’s provinces in different zones and different zones
are further divided in regions and regions are divided in different areas. We will
capture all the stores for distribution weather small or large or at any where in
Pakistan. MILCY unique selling points are all the super departmental stores like
HYPER STAR &METRO or different famous stores in different localities of different
cities and cover the so many large stores around the country. MILCY milk is after
warehouses goes to the distributors then wholesalers and then retailers after that
to the final consumer. We will open the outlets in different location of big cities of

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Pakistan and at dense areas like: OUTLETS LOCATION Lahore Karachi Islamabad
Multan Faisalabad Rawalpindi.

 Marketing Strategy:
o Target Market:
The market is a group of consumers (people or organization) creating a particular
marketing mix for a seller. Prior to launch, the primary market that CDL targeted
was primarily the urban sector. They were no ultimate user as they did not specify
age limits for the product.
The target consumers of Candia are people with income regarding from RS 10,000.
Both male and female are targeted in target market. Candia has also segmented
the market on the basis of Family life cycle. We divide the market on the basis of
benefit desire from the product and its usage rate, according to the product we
segmented the market on the basis of product and taste.

o Product positioning:
It is positioned among its customers as nutritious, energizing, and tasteful PURITY.
That is specially made for smart, healthy and energetic people and no restriction
for any age limit.
Product Attributes PURITY milk has rich taste and mix with quality Ingredients.
Branding and packaging PURITY's name is printed on the pack. A four-cornered,
highly hygienic tetra pack of six layers is used as a container. Other labeling printed
on the pack includes ingredients, expiry date, and price and batch number. And
one aspect we add is that we are combining the advantages of regularly taking milk
and the disadvantages of not taking it.

o Strategies:
 Advertising strategy:
During summers, when milk production decreases due to low supply of raw milk
from dairy farms, supply declines, which increases demand for packaged milk, it
was suggested that management prioritize a Pull strategy as PURITY can now be

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used as an alternative product. In order to promote the commercials, print media,
electrical media campaign, etc.

 Sales promotion strategy:

During winters, push strategy was recommended by giving incentives to the
consumers because the milk supply is good and the competition is intense.

 Positioning strategy:
Candia has an up-to-date positioning strategy that is mostly intended for drinking
purposes. The management is firmly believed to have modified the positioning of
the product and positioned it as a multi-purpose milk brand that can be consumed
by all age groups.

 Promotion strategy:
Following ways were adopted for the promotion of Candia that was helpful for the
improvement of the sale of PURITY.
 Television: Television played an important role for the promotion of PURITY,
a marketing budget was spent on the ad on different TV channels for the
promotion of that product.
 Newspapers: We will advertised PURITY Milk in all reputed daily newspapers
like Jung, Dawn, Din, Nawa-e-Waqat, DUNYA etc.
 Sign Boards: Sign boards and billboards can also play a vital role in the
promotion of Purity. PURITY signs can be easily noticed by the eye and must
be displayed on most eye-catching locations in the cities.

o MARKETING MIX :
 PRODUCT:
We are more focus on the quality of the milk because Candia was fail due
a lot of quality issues. The color of the milk was no purely white. And we try our
best to provide the quality milk to our worthy customers. We will establish the
quality centers to promote the taste and quality of the milk. And it also include in
our slogan that, “INSPIRATION FOR HEALTHIER LIFE”. Its other features include:
Rich color, Fresh taste and smell ,Long expiry date , Core benefit of the product

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Core benefit of PURITY milk, to provide health and nutrition to the customer. And
provide the necessary vitamins and proteins to customer through milk. Expectation
about our product We will fulfill the expectations of our customer. Customer
expects that the milk is pure and have good quality that is beneficial for the health.
We will try to perform beyond the expectations of the customers. Differentiation
of our product We will provide the 100% pure milk to the customer. Our quality
provided the maximum satisfaction to the customer. We provide the guarantee in
good quality and we promised to maintain the quality.

 PLACE :
The placement of Candia was also no intensive. Candia was distributed through the
CDL distribution. No doubt the distribution of CDL was big enough because
through that distribution CDL was distributed Haleeb milk and that as a very well
know brand of at that time. But still the distributions of CDL were no so intensive
or capture all the areas of Pakistan.

 Price:

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 was charging by their
customers otherwise Nobody will purchase their product. Candia was charging low
prices as compare to its competitors. And the charges of the milk are as follow:
RANGES OF CANDIA PRICES 500 ml RS. 15 1 liter RS. 30

 PROMOTION:
Some products have attributes like flashy packaging or something unusual. Other
some factors include the way the product is promoted, how it is advertised, and
who endorses it. The medium used for advertising plays an important part in the
learning and memory of a consumer concerning a particular product. CDL invested
around 200 million rupees to launch Candia in Pakistan out of which 10 to 15
million were spent on its advertisements as it was launched early during the World
Cup of 1999. But the advertisement of Candia was not so effective because it fails
to grasp the attention of consumers. They fail to build its image in the consumers

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mind. Rebranding We are come in to the market with new brand name in to the
place of Candia milk and the new name we choose that is PURITY. And our mission
or slogan will be: “INSPIRATION FOR HEALTHIER LIFE”

o Marketing Research:
Using analysis, we will find specific characteristics and gain the interest of our
target market segment. Market research reports, surveys and focus groups will
help us develop our marketing strategies. Analysis is the best tool for the
development, launch or expansion of any type of product. A fairly high number of
people suggested that Candia use a much more tricky subject, along with a nice
jangle, which clicks on the people's heads and corsets in their caputs. I also
indicated that Candia would market its trade name much more than it already
does in order to make the people more aware of the trade name.

 Financials:
Nestle is the market leader, Haleeb was established in 1986 and its first product
was Haleeb milk. Since then, it has continued to provide quality products to its
consumers with product and packaging innovations. The overall analysis of the
firm’s financial statements shows that the company is not doing well. Compared to
the industry leaders like Nestle and Engro, Haleeb is not that large a company. A
deeper look into the company shows that its profitability has decreased from
2009-2011. Its net profit margin has reduced to 4.83% in 2011 from 7.19% in 2009.
This shows that compared to the industry averages Engro is doing poor in terms of
its profitability. This shows that Engro is selling off its inventory faster as compared
to Haleeb foods. The profitability ratios reveal that Haleeb is doing poor. It
seriously needs to improve its profitability in the coming years.

 Controls:
o Implementations:
 Activities to be implemented:
Sales representatives target all the untapped markets and niches, by using current
products.
•Product line should be extended by adding new flavors of Milk.

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•More budget and resources should be allocated to advertisement and sales
promotion.

 HOW IMPLEMENTATION TO BE DONE

 Develop desirable skills in the employees who are assigned the basics of
target implemented these skills may include.
The ability of sales force, personnel in finance department, expert in R&D
etc , should first understand , the nature of the tasks or task’s importance
foR the company.
 To increase the ability to put right people on right jobs. i.e the person of
finance dept. should not be given the tasks of R&D, which is highly sensitive
and innovational field.

 RESPONSIBILITIES FOR IMPLEMENTATION:

 Create the effectiveness of the personnel to focus on critical aspects of their
job.
 Other remedies to enhance implementation includes

1.Organizational Design:
Organizational design should consist of multifunctional teams, including at
least 1 member of each department to solve the problem or to achieve the
targets.
2. Incentives:
Various rewards may help achieve successful implementation. For Example
in case of Haleeb juices, bonuses or commission should be given to
members of sales force/personal selling teams who sales more units of juice
packets.
3.Communication:
Rapid and accurate movement of information should be confirmed .To do so
efficient and effective feed back systems should be introduced. For example
in case of Haleeb the smooth flow of information should be confirmed from
a single member of salesforce / distributors up to the brand manager and
vice versa.

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  TIME AND LOCATION OF IMPLEMENTATION
Proper time period should be given for the start and end of the task and each
personnel related to that specific job should be given complete information about
the geographic area of his/her sales and the volume to be sold in case of personal
selling and sale promotion.the balanced score board technique may be adopted.
o Makreting Organizations:
For the marketing activities and supporting activities.Candia need to look
after this carefully and manage it wisely by having sub departments in
marketing purpose is to have efficiently and well-designed marketing
activities.For this candia has to hire world wide marketing to handle its
national sales compaigns and consumer sales promotion and public
relation efforts.

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