REPOSITIONING OF CANDIA MILK

THE

MARKETING PLAN

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 ACKNOWLEDGEMENT

We are very grateful to Ms Farah Ali Nawaz for teaching us curriculum of

Marketing Management. Her versatile knowledge in marketing field and
unique teaching style has developed our knowledge and cleared many
marketing concepts.

We are all the most grateful to her for assigning this project, which has
further helped us in evaluating many interrelated dimensions of marketing
field.

Finally we bestow our thanks to CDL Foods limited and all the people who
has directly or indirectly supported us with their assistance and guidance to
compose this report and accomplish broader vision to visualize things in
marketing concepts.

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 TABLE OF CONTENTS

Title Page

Preface 5

Company introduction 6
Mission statement 7
Strategic vision 7
Industry analysis 8
Opportunity analysis 9
Market highlights 12
Food and nutrition analysis 14
Market orientation 15
Market analysis 17
Strategic situation summary 18
Current Positioning 18
Buyer analysis 19
Competitor analysis 21
SOWT analysis 24
USP 25
Marketing Mix 26
BCG growth matrix 27
Research criteria 28
Product life cycle 29
Segmentation 30
Targeting and positioning 31
Product strategy 34
Branding Strategy 35
Distribution strategy 36
Pricing strategy 37
Promotion 38
Print ads 41
Promotion budget 46

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 PREFACE

This Marketing Plan is prepared for the course of “Marketing Management” on Candia
milk is a product of CDL Foods Limited Pakistan.

In this marketing plan we have covered the industry analysis, target market of the
product, pricing, product, promotion, and distribution strategies for the product. We have
given the details about the strategy implementation and details of promotion budget.

We have covered almost all aspects of the marketing plan

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 COMPANY INFORMATION

CDL Foods Limited (formerly Chaudhry Dairies Limited) is a fast growing food
products company. Having doubled its turnover in the last four years, the company has
a turnover of Rs. 3 billion presently. The company also operates as a franchise of
Candia Cedilac of France. CDL has a state of the art milk processing facility situated
at 62-KM Multan road, Near Bhai Pheru, and has a team of 400 exceptional individuals
to support its operations. The head office of CDL is located in the evergreen city of
Lahore at 135-Ferozepur Road. CDL is producing a number of food products both for
consumers and industrial users. CDL is the market leader in the dairy milk industry. The
products are as follows
1. Haleeb milk
2. Candia
3. Tropico fruit drink
4. Dairy queen milk powder, N’rish powder milk, Asli ghee

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 MISSION STATEMENT

“Build branded food business to improve quality of life by offering

tasty, affordable and highly nutritional products to our consumers
while maximizing share holders value”.

VISION STATEMENT

“Most innovative and fastest growing food company offering

products enjoyed in every home every day”.

CORE VALUES
1. Team work
2. Empowerment
3. Trust

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 INDUSTRY ANALYSIS

Livestock sector of Pakistan

Livestock is an important sector of agriculture in Pakistan and is the only source of

milk, which accounts for nearly 37.5 percent of agricultural value added and about 9.4
percent of the GDP. Its net foreign exchange earnings were to the tune of Rs.53.0 billion in
2000-01, which is almost 12.34 percent of the overall export earnings of the country. The
role of livestock in rural economy may be realized from the fact that 30-35 million rural
populations is engaged in livestock raising, having household holdings of 2-3 cattle/buffalo
and 5-6 sheep/goat per family deriving 30-40 percent of their income from it. The livestock
include: cattle, buffalos, sheep, goats, camels, horses, Asses and mules. Population of
livestock for the last five years is given in Table 1.

Table 1

Livestock Population

(Million No’s.)

Species 1997-98 1998-99 1999-2000 2000-2001 2001-2002 (E)

Cattle 21.2 21.6 22.0 22.4 22.8
Buffalo 21.4 22.0 22.7 23.3 24.0
Sheep 23.8 23.9 24.1 24.2 24.4
Goat 44.2 45.8 47.4 49.2 50.9
Camels 0.8 0.8 0.8 0.8 0.8
Horses 0.3 0.3 0.3 0.3 0.3
Donkeys 3.7 3.8 3.8 3.9 3.9

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E: Estimated. Source: Ministry of Food, Agriculture and Livestock (Livestock Wing)

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 OPPORTUNITY ANALYSIS
Packaged Food Industry in Pakistan

Pakistan has a population of approximately 140 million, and a

population growth rate of 2.7 percent annually. Its vast agricultural resources
and geographical location make it an ideal country for investment in the food
sector. The most rapidly growing sectors are for beverages, including
carbonated soft drinks (CSD) and juice and juice-flavored drinks, poultry, and
edible oils, as you can see the growth rate of different groups in table 3. Several
foreign firms have entered the market and established their own presence as
manufacturers, or formed joint ventures with local firms.
Table 2
Group-Wise Growth Performance
(July-March)
(P
ercent)
Group 2000-01 2001-02
Food, Beverages & Tobacco 9.1 6.1
(Sugar) (14.8) (9.2)
Textile and Apparel 2.7 4.4
Leather Products 9.3 -3.5
Paper Printing & Publishing 24.9 2.8
Chemicals, Rubber & Plastics 8.1 0.1
Petroleum Group 16.6 18.7
Tyres & Tubes 1.0 5.9
Non-Metallic Mineral Products 1.8 1.2
Basic Metal Industries 6.7 -4.7
Metal Products, Machinery & 0.1 3.3
Equipment
Automobile 23.2 2.8
Overall Growth 7.6 4.0
Note: Figures for sugar, automobile and cement are Source: Economic
Adviser Wing, Finance Division
taken for 12 months while for fertilizer, steel products and soda for 10 months
 Pakistan's food industry produces cooking oils, hydrogenated
vegetable oils, sugar, flour, dairy products such as milk, butter, yoghurt, cheese
and ice-cream, biscuits, breads and confectionery, fruit juices and fruit juice
drinks, carbonated beverages, snack foods based on rice, potatoes, corn and
pulses, processed chicken, jams, jellies, squashes, sauces, pickles, and some
cereals and canned fruits. The fish, meat and fruit and vegetable sectors remain
underdeveloped partly for lack of adequate infrastructure, including storage and
transportation facilities. Government policies and plans are expected to greatly
increase the development of seafood’s industry.
Pakistan's central bank's classification of food includes milk and
cream, chilled or frozen fish, vegetables and fruit, sugar and honey, tea and
coffee whiteners, spices, beverages and other miscellaneous food items. Their
collective import in PFY-96 was reportedly worth USD 438.1 million and their
export USD 315 million. For PFY-97, imports were USD 611.30 million, and their
export USD 329.40 million. Edible oil and wheat imports account for the largest
shares on the food import bill. Trade sources estimate that Pakistan's food
imports grew to over USD 1.7 billion in PFY-97, whilst its exports were a mere
USD 718 million. While the industry has been growing at between 7 to 10
percent per annum, it is unlikely that given the downturn in the economy, this rate
has been maintained in PFY-99. The market can now be expected to grow at
approximately 5-6 percent annually over the next two years.

Livestock & Dairy Products

Production from livestock sector includes: milk, beef, mutton, poultry meat,
wool, hair, bones, fats, blood, eggs, hides and skins and their production for the last
five years are shown in Table 2
Table 2

Livestock Products
Products Units 1997-98 1998-99 1999-2000 2000-2001 2001-2002(E)
Milk (000 Tonnes) 24215.0 24877.0 25566.0 26284.0 27031.0
Beef " 940.0 963.0 986.0 1010.0 1034.0

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Mutton " 617.0 633.0 649.0 666.0 683.0
Poultry Meat " 284.0 310.0 327.1 339.0 355.0
Wool " 38.5 38.7 38.9 39.2 39.4
Hair " 16.7 17.3 17.9 18.6 19.3
Bones " 309.2 316.3 324.0 331.4 339.4
Fats " 115.2 117.8 120.6 123.5 126.5
Blood " 33.6 34.4.0 40.9 41.8 42.9
Eggs Million Nos. 6015.0 8261.0 7321.0 7505.0 7679.0
Hides " 7.3 7.5 7.6 7.8 7.9
Skins " 35.3 36.3 37.2 38.2 39.2
E= Estimated Source: Ministry of Food, Agriculture & Livestock.
MARKET HIGHLIGHTS

Pakistan's dairy industry produces UHT, pasteurized, powdered and

condensed milk, butter, yoghurt, cheese, cream and some butter oil. Of a total of
38 dairy plants with a total daily rated capacity of 2,180,000 liters per day, 11 with
a rated capacity of 948,000 liters per day have been in operation.
Recently, two non-operational federal government owned dairy plants
have been brought into operation through a joint venture with a non-government
organization, increasing the rated capacity to 1,048,000 liters per day. Their
contribution, together with that of two dairy farms of the Pakistan military, has
raised Pakistan's daily production of processed milk, yoghurt and butter. In
addition, the country's industrial production capacity for ice cream is
approximately 47.5 million liters per year.

Pakistan now produces an estimated 27.5 billion liters (or27.5 million

metric tons) of milk annually, of which only one million liters is processed daily.
Approximately half of this amount is processed into UHT milk, 40 percent into
powdered milk, and the remaining 10 percent into pasteurized milk, yoghurt,
cheese and butter.

The seasonal nature of supply as well as demand for milk powder from
the bakeries and confectioneries, as well as dairy plants themselves, has
necessitated the import of powdered milk.

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 Powdered milk, currently imported mostly from Eastern Europe, and
Centrally Independent States (CIS), comes in two forms:

(a) Skimmed milk powder;

(b) Vegetable fats-filled milk powder

Imports of skimmed milk powder range between 5 to 10 percent of the

total imports of milk powder. In order to encourage development, the GOP
recently announced the establishment of a National Dairy and Livestock
Development Board, which has been mandated to develop the dairy, poultry and
meat industries.

There are no dairy exports from Pakistan, except a small quantity of

infant formula milk exported to Bangladesh, Sri Lanka and the CIS by Lahore-
based joint venture between a Pakistani and a European company.

Changing habits and the increasing awareness of the health value of

hygienically prepared foods at least amongst the urban population can be
expected to raise demand over the next few years.

Processed foods are imported into Pakistan merely to feed a few

supermarkets, which cater to the country's elite. As imports are made by
container load, importers visit the nearby duty-free market of Dubai to make
purchases of various imported goods to collectively fill a container. A larger
order moves the importer to England, or, if volume warrants, to the country of the
manufacturer for which the purchaser has a bulk order. There is no regular
country of origin or consumer preference for the processed foods purchased.
Both consumers and buyers identify with brand names, but the major
discriminating factor is price.

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 It is thus cheaper to buy goods originating in England or Thailand than
foods processed in the United States, and it is seldom that two successive
containers will be packed with goods originating from the same processor.

FOOD AND NUTRITION ANALYSIS

Protein energy and micronutrient malnutrition has a very sever

impact on the potential development and productivity of the people. They
contribute to a great deal of morbidity and ill health growth, retardation and
reduced level of physical and developmental activities. The basic cause of these
deficiencies is lack of adequate intake through diets. Poverty in many cases is
the major basic cause of malnutrition. In Pakistan, per capita per day calories
intake is estimated at 2306 for 2001-02 and protein intake per capita per day is
67.0 grams. The national food consumption/intake balance sheet of major six
selected food items including pulses, sugar, milk, meat, eggs and edible oil is
given in Table 4. The overall per capita food availability of the basic food items
has declined over the previous year.

Table 4
Food Availability Per Capita
Items Units 49-50 79-80 89-90 95-96 97-98 98-99 99-2000 2000-01 2001-02
(E) (T)
Cereals Kg 139.3 147.1 164.7 156.9 159.7 171.0 163.5 164.9 149.3

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 Pulses Kg 13.9 6.3 5.4 6.2 5.9 6.8 7.2 7.0 6.1

Sugar Kg 17.1 28.7 27.0 26.4 32.8 31.2 26.4 30.8 26.1

Milk Ltr 107.0 94.8 107.6 121.1 147.3 148.0 148.8 149.6 150.8

Meat Kg 9.8 13.7 17.3 21.4 17.9 18.2 18.7 18.8 18.9

Eggs Dozen 0.2 1.2 2.1 2.2 2.2 5.1 25.1 5.2 5.2

Edible Oil Ltr 2.3 6.3 10.3 11.4 11.6 12.3 11.1 11.2 11.3

MARKET ORIENTATION
Customer focus
The company is committed to strict quality standards in all its operations - from
the collection of milk to the provision of hygienically processed nutritious products
to its customers. The company follows the philosophy of "delighting the
customers" by providing them quality products at the right price on their door
step.
 The company treats them as partners
 Keep channel of communication open with them because they are the
only reliable source that can provide them best feedback about the
product.

Competitor intelligence
The organization keeps a bull eye on the activities of competitors and tries to off
set all the possible threats, which they can encounter in the future.
CDL Foods limited continuously measure and monitor the market trends and
competitor moves. They are getting feed back from their sales teams and dealers
about what is happening in the market.
 Cdl has 64 sales teams all over Pakistan
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  CDL has 400 distributors all over Pakistan
CDL‘s advertising agencies are also giving them feedback regarding the market
and competitors. They are guiding CDL what should be the next move.
CDL has three agencies:
 Orient McCann
 MPL
 Asiatic advertising

The main competitor of Candia is Nestlé’s milkpak and milk flow. NESTLE has
not only increased local sales substantially but has also been very successful in
its export sales which have increased many times over since it first explored
neighboring markets.

Inter functional coordination

CDL Foods Limited (formerly Chaudhary Dairies Limited) is a fast growing food
products company. Having doubled its turnover in the last four years, the
company has a turnover of Rs. 3 billion in financial year 2001-2002. In the next
financial year 2002-2003 the target of the CDL is to achieve the turnover of Rs. 4
billion. The top management and employees at CDL is committed in their works
and they know the importance of coordination and interaction of different
departments in order to achieve better results. Weekly meetings are held
between different departments in order to solve problems as well as to make
accurate decision so that resources are not desecrated.

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 MARKET ANALYSIS

Pakistan currently produces an estimated 27.5 billion liters (or 27.5 million metric
tons) of milk annually, of which only 1.6 million liters is processed daily.
Approximately half of this amount is processed into UHT milk, 40 percent into
powdered milk, and the remaining 10 percent into pasteurized milk, yoghurt,
cheese and butter. The seasonal nature of supply, the demand for milk powder
from the bakeries and confectioneries,
And from the dairy plants themselves, has necessitated the import of powdered
milk. This product, currently imported mostly from Eastern Europe and the
centrally independent states, comes in the form of vegetable fats-filled milk
powder and skimmed milk powder. Imports of skimmed milk powder range
between 5 to 10 percent of the total imports of milk powder. As such, one of the
most feasible investments in Pakistan’s dairy industry is in the production of dried
milk.
Tetra packs are available at an average price of Rs. 50 per liter, however it cannot be
considered as pure, fresh milk for it has been pasteurized and treated for long life.
Additionally, tetra pack milk has additives and preservatives, which reduces its

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nutritional value. Health conscious people and mothers for their children because of low
fat content and better nutritional value prefer cow milk.

STRATEGIC SITUATION SUMMARY

CDL is a market leader in the dairy milk industry of Pakistan. There host of
product / brand portfolio in the packaged food category have had a significant
role in the quality and innovation of distinct styles and quality of package as well
as nutritional contents.
They have four specialized business units under the CDL banner, which
comprise of;
 Haleeb
 Candia
 Tropico Fruit Juices
 Bulk Products

CURRENT POSITIONING

The product line that is to be considered as the part of the marketing plan for
CDL is their Candia business and allied products associated to this unit

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 This statement leaves a problem area for CDL since a gap exists between
the perceptions of the consumers and the positioning strategy for Candia as
drinking milk. It has been perceived by most consumers as suitable for tea and
desserts consumption.

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 BUYER ANALYSIS

For Candia brand the buyer profile comprise of lower middle,Upper and
Upper Middle class individuals having the exposure of international countries with
awareness of product freshness i.e. bottled milk. The main focus is on health,
taste and the price factor.
The income group belongs to a range from Rs.15000 and above.
Consumers seeking quality and a seal of confidence through endorsements from
reputed manufacturers like the license from Candia Cedillac franchise of Lyon,
France.

Business Analysis
Business Segments
1. Candia Pasteurized, Homogenized and Double Sterilized milk
packed in food grade plastic bottles. Toned milk that
is processed through UHT (Ultra Heat Treated)
treatment. Other brands supporting the Candia
umbrella are Candia Skimz [Tetra pak and instant
powder].
2. Haleeb Haleeb is Pasteurized, Standardized, and
Homogenized and Ultra Heat Treated milk of the
highest standards. Haleeb is available all over the
country in 1 Liter, 500 ml and 250 ml Tetra Packs.
Haleeb is standardized to 3.5% Butter Fats and 8.9%
SNF (Solids Non Fat) as prescribed by Pakistan Pure
Food Laws.
3. Tropico Fruit Juice With the quality assurance of CDL, comes Tropico, a
premium juice drink, superior in taste and exceptional
in pulp contents, for the absolute taste of refreshing,
invigorating fruit juice drink. Available in smart 200 ml
slim pack and 1000ml Tetra Brick (Mango and
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 Mango/Orange Flavors). Tropico is the perfect thirst
quenching refreshment for all occasions. Available in
four exciting flavors, Tropico is always alive in taste
and full on fruition.
4. Bulk products In bulk product category the firm have skimmed milk
powder, cream, Ghee and Butter. Providing the
rationed product supplies to vendors like tea shops
(chai walas), hotels and offices.

Product Market
Dealing in packaged dairy products with main area of concentration in packaged
milk products that include Processed, Condensed and Instant formulations.

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 COMPETITIVE ANALYSIS

The competitive frame work of CDL vis-à-vis its Candia brand can be
classified as following;
Competitive Framework
Company Name Product Name Category Product _Class Size in Litres/Grammes Overall Market Share
Nestle Milkpak Homogenized Tetra Pak 1L,0.5L,0.25L 43%
Milk
Nido Instant/Powder Pouch Pak 800g,400g,200g,0.25L
Everyday Powder Pouch Pak 800g,400g,200g
Royal Dairies Milk Flow Pasteurized Milk Tetra Pak 1L,0.5L 4%
Milk Flow Flavored P. Milk Tetra Pak 1L,0.5L
[P=Pasteurized]
Engro Foods pvt. Olpers Pasteurized Milk Tetra Pak 1L,0.5L,300ml 3%
Ltd.

Currently milk is sold either directly through milkmen or in tetra packs. The main
problem with milkmen is that they mix substantial amount of water in the milk,
which dilutes it, thus affecting purity.
Currently the Candia has four major competitors

 loose milk shops

 Milkpak (Nestle Milkpak Limited)
 Milk flow (royal dairies)
 Olpers ( Engro Foods)
The price of Candia milk is relatively lower than both the competitor
brands but higher than the price of loose milk. Powder milk is also consumed
heavily and all the companies are facing stiff competition with each other. The
concept of purchasing milk from milk men in our country is high because people
prefer to buy because they think that tetra packs cost is relatively high and the
quality of milk in tetra pack is not as fresh as milk men milk.

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Competitor’s profile

Nestle Milkpak limited

Nestle Milpak limited is a joint venture of the Nestle, Switzerland and

Milkpak limited Lahore. The two companies entered into a joint venture in 1988
and today produces UHT milk, butter, cream, orange juice, fruit-based drinks,
milk powder, infant cereals, infant milk, dairy whitener, pre-cooked noodles and
confectionery. The joint venture then commenced local packing of imported
coffee.

In 1996 it established its first confectionery plant for high boiled candies
and added other lines including whitener milk, orange juice and ready-to-drink
tea. Nestle Milkpak in 1990 also acquired Kabirwal Dairy Ltd. The plant
commenced the production of pre-cooked noodles in 1991.

The joint venture also established another milk powder plant at

Kabirwala, which produces skimmed milk and full-cream milk powder. The
country's impressive potential for confectionery sales led Nestlé Milkpak to
establish an independent sales and distribution network for confectionery. The
network has grown from 3 main cities in 1996 to a nine regions by the end of the
following year. Nestle produces mints, and started marketing imported
chocolates in 1997.

Encouraged by the excellent sales results, it has now invested in a new

production line to produce high and low boiled candies, and thus introduce
several new varieties of sweets and toffees to the market. It does not at present
have plans to manufacture chocolates locally. Nestle Milkpak became an
exporter in 1993. In PFY-98 the company exported Rs.321.30 million worth of

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products, which included noodles, cereals, infant milk powder, UHT cream, fruit
based drinks, fruit pulp and full cream milk powder. Its major buyers are the
Central Asian Republics (45 percent); Bangladesh (32percnet) Afghanistan
(21percent). The company has now commenced exporting mints to Bangladesh.
Nestle Milkpak does its own marketing. Its sales department distributes to
different distributors, who sell to retailers.

The key strengths of Nestle Milkpak (MP);

 Nestle AG, the world's largest food company

 Nestlé is a well known name

 Consumers trust its quality
 It’s a multi-national company
 Financially strong

All above strengths were quoted by the research respondents.

ROYAL DAIRIES LIMITED

A Royal Dairies limited is Karachi based company selling milk flow brand
in the market. This company has its own farm of 10,000 buffaloes in district Malir
Karachi. Royal dairy is the very first dairy with its own farm. This ensures control
over animal care and nutrition & hygiene. It is a new entrant in the packaged milk
market.
Royal Dairies has following

Strengths;
 Own farm
 Small operating cycle
 Low transportation cost

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  People perceived milk flow as fresh milk

Reasons why Candia Flop

 Taste
 Packaging (without cap)
 Poor distribution
 Customer’s brand loyalty towards other brands

SWOT ANALYSIS OF CANDIA

Strength:

• International packaging
• Affordable and reasonable price
• Have our own packaging plant

Weaknesses:

• Heavy capital will be required for promotion

• Consumers are brand loyal toward competitor’s product so we have to convince
them.

Opportunities:

• Increase usage
• Can introduce flavored milk
• People are switching from unhygienic to hygienic milk
Threats:

• Competitors can come up with plastic bottles

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 USP (Unique Selling Proposition)
Our unique selling point is International Packaging with new flip top cap and
reusable bottle

Finding competitive advantage

Candia is

 New Flip top cap to retain freshness

 Toned milk with added vitamins and calcium
 Taste is just natural best for drinking purpose

This ensures not only the highest quality but also the best possible taste.

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 MARKETING MIX

Product

• High quality and convenience product

• Packaging
• Packaging or bottle is reusable

Price

• Price is less than competitor

• Using market penetration

Promotion
• To enhance awareness
• We do promotion on TV channels and newspapers

Place
• We give incentives to retailers

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 B C G GROWTH-SHARE MATRIX
RELATIVE MARKET SHARE

20%

?
High

MARKET
10% GROWTH
RATE

DOG
CASH
LowCOW

0% 10% 5% 1% 0.5% 0.1%

High Low

The firm is a question mark because market growth is very high that is
15% but the relative market share of the company is very low.

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 RESEARCH USED TO CHANGE THE TASTE
OF CANDIA MILK

Company had conducted research and found out that people were not
satisfied with the taste of Candia milk. To alter the taste CDL did a research in
order to identify that which sort of taste is preferred by our customers. For that
we did a focus group discussion in which CDL have tested three different types
of tastes of milk through “Sequential monadic approach”. In this technique
CDL have given the milk to the respondents with different taste one by one and
the respondents fill questionnaires after tasting the products.

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 PRODUCT LIFE CYCLE

Type:
Brand Reinforcement
Objective
Establish market position and Extend target market.
Product strategy:
Identified weakness (Packaging, taste)
Advertising objectives:
Provide information on product benefits and features
Distribution:
Maintaining the same distribution network because due to Haleeb we have
a very strong distribution network and there is no need to make change in the
distribution strategy. We are using conventional distribution strategy having 8
distributors in Karachi. Candia will primarily be distributed to A and B class
outlets with exclusive shelf positioning having different POP’s displays.
Pricing:
The prices of the Candia milk will be competitive. The price will remain
same that is Rs.54 for 1 liter and Rs.30 for ½ liter .

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 SEGMENTATION VARIABLES

We have segmented the market on characteristics of people.

Geographic
Region (city): Karachi, Islamabad, Lahore
Density Urban

Demographic

Age: Above 4 years

Income: Rs. 15, 000 and above
Social Class lower middle Class, Middle upper class, Middle
-Middle class.

Psychographics

Activities: Health related, education, Convenience

Interest: outdoors, Active, sports, fashion, family values
Opinion: Social concern

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 TARGETING & POSITIONING STRATEGIES

The targeting strategy for Candia is recommended to be Selective due to

the following market and industry dynamics which are as follows;
 Stage of the product Life Cycle
The Dairy Industry of Pakistan is growing at a steady and consistent manner
at 15% per year. The industry attractiveness is fairly high for Candia and
opportunity to develop strong business within the segment.
 Diversity of Preferences
Consumer awareness for the health factor is on the rise due to media
exposure and education within certain segments. With shifts in priorities for
hygienic consumption and family health concerns increasing, packaged
brands of milk are increasing for various consumption usages of milk.
 Industry Structure
Competitive intensity is not as high and entry barriers are quite high. With the
process being a highly complex and delicate matter [any impediment or
disruption in the process can cause the entire batch processing to restart all
over] which can cause tremendous financial crunch to medium sized
organization.
 Competitive Advantage
In the packaged milk category, the competitive advantage that can be
obtained is through effective distribution and consistent marketing
communications.

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 Target Strategy

Targeting approaches for developing Candia brand is Selective Targeting

since the industry is growing at a rapid pace and since the product portfolio is
fairly diversified [related] creating;
 Organization Fit all units operating under the CDL umbrella
have a high degree of synergy that can be
capitalized to gain competitive advantage and
cost efficiencies
 Technology Fit since the CDL is using the proprietory
technology of Toning Processing and Double
Sterilization technology which can be traded
with the shared technology of other units i.e.
Instant [Powder], Homogenized etc.
 Management Fit resource of management can be cumaltively
shared since the learning curve is minimized

Repositioning Strategy

Repositioning Statement:

Sign of Healthy Family

“Struggling business to enhance brand image of Candia as a daily routine,

nutritional diet for the entire family.”

Repositioning Concept
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Trying to create the perception that drinking milk is healthy and is a quality habit
that should be a part of all family members, giving them nutrition, satisfaction and
happiness that tastes good.

Repositioning Strategy
Shelved in A, B and C category retail outlets to create favorable brand
associations Price is at Rs.54/- that signals that quality is consistent in a new
packaging Advertising and sales promotions to be focused according to the
quality and fun drinking association of Candia as a health assuring milk

Repositioning Effectiveness
The objective is to monitor and evaluate how the positioning of Candia is
received by the target market and according to what the core values of the
Candia brand communicate.

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 PRODUCT STRATEGIES

The product strategy we are following is Product line strategy. In this

further we are using “product improvement strategy”. We are improving
product through
1. Taste
2. Nutritional value – Added enriched vitamins and Zinc [fatty acids] with iron
for supplementing healthy growth. Milk for growth, enriched with zinc,
vitamins, essential fatty acids and, above all, iron, with content 25 times
higher than conventional milk. This is a decisive advantage when you know
that 70% of babies have an iron deficiency. With half a litre of Candia every
day, children will get 65% of the iron and 80% of the calcium they need.

60 % of children Provides 11 vitamins for Highly nutritional

Milk-based, it has all the
Why? suffer from nutritional energy and just the right milk drink: milk,
right qualities for a child
deficiencies amount chocolate,

Calcium (mg) 100 83 80 80 126

Magnésium (mg) 9.3 9 9 9 11

Phosphorous (mg) 75 75 65 65 109

Iron (mg) 1.3 0.03 0.03 0.03 0.05

Zinc (mg) 0.80 0.2 0.2 0.2 0.4

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Potassium (mg) 127 152 138 138 176

Sodium (mg) 41 41 40 40 50

Vitamins
A 60 34 34 34 47 65 65
B1 (mg) 30 0.04 0.04 0.04 0.07 0.08 0.08
B2 (mg) 0.11 0.17 0.17 0.17 0.23 0.25 0.25
B5 (mg) 0.20 0.35 0.35 0.35 0.44 0.45 0.45
B6 (mg) 0.03 0.03 0.03 0.03 0.04 0.04 0.04

B8 (µg) 3.54 3.54 3.54 4.77 4.7 4.7

B9 (µg) 3 6 6 6 9 9 9

B12 (µg) 0.30 0.33 0.33 0.33 0.45

C* (mg) 6.00 0.96 0.96 0.96

D3 (µg) 1.25

E (µg) 0.66 0.12 0.12 0.12 0.17 0.17 0.17

PP (mg) 60 0.06 0.06 0.06 0.08 0.08 0.08

3. Design (Brick packaging)

4. New Flip top cap

This will give us a competitive edge and mover advantage because currently
fewer companies in Pakistan is offering Flip top cap facility which ensures
freshness and hygiene.

BRANDING STRATEGY

We are using “Specific product branding” strategy because brand name

gives a unique identification in the market place, Using Haleeb name gives
positive associations to customers that this product is used by us and we
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have a trust on this name so using this product also enhance the product
image and corporate brand identity.

CANDIA MILK
Haleeb (We are using Haleeb name at the side of the product
packaging to reinforce associations).

DISTRIBUTION STRATEGY

We are using conventional channel for the distribution. We have 8

main distributors in Karachi and Lahore . Distribution intensity is “selective”.
Currently the company is covering 1000-1200 outlets. It is intended that the
distribution will be the same which is exclusively carrying the product to the
retail outlets. Their would be dedicated shelf spacing to maintain the SKU
(stop keeping units) for example providing refrigeration and exclusively
designed POP’s according to specifications as per the brand image and
requirements. We are providing Candia to A, B and C class stores.

The reason why we have chosen this strategy is due to financial

considerations.
Profit for the distributors is 1.25%. Distributors pay cash in advance to the
company to get the product. (We are using all the products supplied by these
distributors).

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 PRICING STRATEGY

Pricing Objectives

1. Gain market position (Acceptance by the consumers)

2. Influence competition

We are using “price penetration” because if we analyze the packed milk

competitors like Milk Pak and Milk flow their prices are higher. We are
maintaining the same price by offering more added features, which give us a
competitive edge. Added features include more added values as well as flip top
cap.
Candia Milk Price
1 liter Rs. 54/-
½ liter Rs. 30/-
¼ liter RS.15/-

The other considerations also include the Non price factor. Buyers are
willing to pay more prices to gain other competitive advantage, so taking this into
considerations we have included new nutritional elements as well as new flip top
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cap to maintain the quality and freshness of the Candia milk. We are giving
added value to our customers as the company has promised to provide quality
products with differentiation.

PROMOTION, ADVERTISING, SALES PROMOTION

STRATEGIES.

Our advertising and promotion strategies is based on three phases

Creating the Awareness, educating the

consumers providing information about
product benefits and what are the
diseases caused by lack of consuming
milk.

Increase Usage, advertising campaign

based on situation, fun, enjoy and health.

1. Below the line activities (BTL)

2. Brand 39
line extension (targeting kids)
3. Co branding with Dunkin Donuts
4. Co branding with LU biscuits
 Promotion
We will use POP’s in which all the CDL brands are available. (Special
Shelves for CDL). This will give a unique identity to the corporate name and to
products. This will not only reinforce the brand name of Haleeb but also it will
give promotion to all the other brands of CDL.

Advertising and Sales Promotion Strategy

We will use doctors in our advertising (1st phase) like

1. Surgeon Mohammad Ali Shah

2. Dr. Ghaffar Billo focusing on nutritional needs of milk.
3. Pakistan Medical Associations

These doctors will focus on the nutritional needs of Milk recommending

CANDIA MILK.
We will also invite Imran Khan (legend of Pakistan) to reinforce the
customers he will advertise for us and we will give 3% of our profit to his
Shoqat khanam memorial Hospital.

MILK IS LIFE! (Advertising Campaign)

We have decided to devote a special issue to milk, it's because day after
day we're reminded of its many benefits. It helps prevent osteoporosis, especially
if it's drunk very early in life; and it is the ideal way of getting the vitamins,
minerals, trace elements and essential fatty acids we need to avoid nutritional
deficiency. Not to mention the numerous nutritional properties that make milk a
basic food for the infant and an ideal food for the adolescent, the pregnant or
nursing mother and so on. In short, we all need milk, whatever age we happen to
be. Milk has always played an important part in our diet.

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 1. Milk and children
2. Milk and women
3. Milk and older people

In the 2nd phase

We will also focus on different usage situation like at playing sports, at

hospitals.
We will also target kids having Candia milk having fun and enjoy.
Focusing on different flavors, chocolate, strawberry and Banana.
We will launch a campaign in Schools. Sticking Posters on Walls near
schools and providing refrigeration having Candia milk using cartoon
character Garfield.

In the 3rd Phase

We will go for co branding with companies like Dunkin Donuts, using

Candia milk in their products.
Promotion schemes will be used with the help of LU biscuits providing free
ticky pack biscuits on purchase of Candia milk i.e. Candi Biscuit.

We will also celebrate different occasions like Children days and will
provide different gift packs.

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 PRINT ADVERTISEMENT FOR CANDIA MILK (2ND
STAGE)

We will give this print ad on Dawn and in Jang News paper on the 2nd
page (half page)

42
Print Ad Focusing on New Flavors as well as
creating associations with Garfield Cartoon character.

STRAWBERRY, BANANA &

CHOCOLATE

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 BILL BOARD USED AT
VARIOUS PLACES IN THE CITY

We will place this bill board on different locations. Like Boating Basin, Park
Towers and Airport. This cartoon character will create association in children and
the children will act as an opinion leader for our company.

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Packaging for Children

INSTANT DRINK (Rs. 10)

45
Print Ad to influence Mother

46
 PROMOTION BUDGET
Cost of Billboards used in different places in the city
Billboards

Rate Production Cost

Teen Talwar 250000/- 80/sq.ft 8x(10x20)= 16000/-
Malir Halt 50000/- 80/sq.ft 8x(10x20)= 16000/
Neepa Chowrangi 45000/- 80/sq.ft 8x(10x20)= 16000/
Nazimabd 40000/- 80/sq.ft 8x(10x20)= 16000/
Schon Circle 300000/- 80/sq.ft 8x(10x20)= 16000/
Boat Basin 250000/- 80/sq.ft 8x(10x20)= 16000/
Malir Cantt 60000/- 80/sq.ft 8x(10x20)= 16000/

TOTAL COST 1107000

Print Media

Daily Dawn (week days) Front page(20x5) 321750

Daily Dawn (Sunday) Front page(20x5) 273000

Jang (week days) Front page (10x5) 11500

Jang (Sunday) Front page (10x5) +200% extra 34500
640750 x 4 2563000

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 TV Advertising

GEO

From 7 to 8 (483.33/sec x20sec) 7249.95 x 2 14500

From 8 to 9 (666.66/sec x15sec) 10000x 2 20000

i.e. for one day =34500 x 20 690000

PTV

From 8 to 9 (2916.66/sec x 15 sec) 43750

i.e. for one day43750 x 30 1312527

TOTAL PROMOTION COST 5,672,527

Note: This promotion budget is for one month

TV advertising will be 2 times in a day and 4 days a week in first three months.
Our ad will go on air in the prime time broadcasting. In the first phase we will
have print ads on the Dawn and Jang.

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