Marketing Plan of Candi Milk

REPOSITIONING OF CANDIA MILK THE MARKETING PLAN

2

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 Mission statement Strategic vision Industry analysis Opportunity analysis Market highlights Food and nutrition analysis Market orientation Market analysis Strategic situation summary Current Positioning Buyer analysis Competitor analysis SOWT analysis USP Marketing Mix BCG growth matrix Research criteria Product life cycle Segmentation Targeting and positioning Product strategy Branding Strategy Distribution strategy Pricing strategy Promotion Print ads Promotion budget

6 7 7 8 9 12 14 15 17 18 18 19 21 24 25 26 27 28 29 30 31 34 35 36 37 38 41 46 4

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

5

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

6

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 Cattle

1997-98 21.2

1998-99 21.6

1999-2000 22.0

2000-2001 22.4

2001-2002 (E) 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

8

E: Estimated.

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

9

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 Food, Beverages & Tobacco (Sugar) Textile and Apparel Leather Products Paper Printing & Publishing Chemicals, Rubber & Plastics Petroleum Group Tyres & Tubes Non-Metallic Mineral Products Basic Metal Industries Metal Products, Machinery Equipment Automobile Overall Growth

&

2000-01 9.1 (14.8) 2.7 9.3 24.9 8.1 16.6 1.0 1.8 6.7 0.1

2001-02 6.1 (9.2) 4.4 -3.5 2.8 0.1 18.7 5.9 1.2 -4.7 3.3

23.2 7.6

2.8

Note: Figures for sugar, automobile and cement are

4.0 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 Milk Beef

Units 1997-98 (000 Tonnes) 24215.0 " 940.0

1998-99 24877.0 963.0

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1999-2000 25566.0 986.0

2000-2001 26284.0 1010.0

2001-2002(E) 27031.0 1034.0

Mutton Poultry Meat Wool Hair Bones Fats Blood Eggs Hides Skins

" " " " " " " Million Nos. " "

E= Estimated

617.0 284.0 38.5 16.7 309.2 115.2 33.6 6015.0 7.3 35.3

633.0 310.0 38.7 17.3 316.3 117.8 34.4.0 8261.0 7.5 36.3

649.0 327.1 38.9 17.9 324.0 120.6 40.9 7321.0 7.6 37.2

666.0 339.0 39.2 18.6 331.4 123.5 41.8 7505.0 7.8 38.2

683.0 355.0 39.4 19.3 339.4 126.5 42.9 7679.0 7.9 39.2

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. 12

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 Lahorebased 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 Cereals

Units Kg

49-50 139.3

79-80 147.1

89-90 164.7

14

95-96 156.9

97-98 159.7

98-99 171.0

99-2000 163.5

2000-01

2001-02

(E)

(T)

164.9

149.3

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 15

 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 17

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 18

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.

19

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 20

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 Nestle Milkpak Nido Everyday Milk Flow Milk Flow

Royal Dairies

Engro Foods pvt. Ltd.

Olpers

Category Homogenized Milk Instant/Powder Powder Pasteurized Milk Flavored P. Milk [P=Pasteurized] Pasteurized Milk

Product _Class Tetra Pak

Size in Litres/Grammes 1L,0.5L,0.25L

Pouch Pak Pouch Pak Tetra Pak Tetra Pak

800g,400g,200g,0.25L 800g,400g,200g 1L,0.5L 1L,0.5L

Tetra Pak

1L,0.5L,300ml

Overall Market Share 43%

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. 22

4%

3%

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 23

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 24

 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 25

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.

26

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

27

B C G GROWTH-SHARE MATRIX RELATIVE MARKET SHARE 20%

?

High

10%

MARKET GROWTH RATE DOG

CASH LowCOW

0%

10%

5% High

1%

0.5%

0.1%

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.

28

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.

29

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 .

30

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

31

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

communications.

32

and

consistent

marketing

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 33

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.

34

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.

Why?

60 % of children suffer from nutritional deficiencies

Provides 11 vitamins for energy and just the right amount

Highly nutritional Milk-based, it has all the milk drink: milk, right qualities for a child 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

35

Potassium (mg)

127

152

138

138

176

Sodium (mg)

41

41

40

40

50

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

3.54

3.54

3.54

4.77

4.7

4.7

9

9

Vitamins A

B8 (µg) B9 (µg)

3

6

6

6

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

60

0.06

0.06

0.06

0.08

0.08

0.08

PP (mg)

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 36

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 1 liter ½ liter ¼ liter

Price Rs. 54/Rs. 30/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 38

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. 2. 3. 4.

Below the line activities (BTL) Brand 39 line extension (targeting kids) Co branding with Dunkin Donuts 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. 40

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)

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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)

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Print Ad to influence Mother 46

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

Billboards Rate Teen Talwar 250000/Malir Halt 50000/Neepa Chowrangi 45000/Nazimabd 40000/Schon Circle 300000/Boat Basin 250000/Malir Cantt 60000/-

Production Cost 80/sq.ft 8x(10x20)= 16000/80/sq.ft 8x(10x20)= 16000/ 80/sq.ft 8x(10x20)= 16000/ 80/sq.ft 8x(10x20)= 16000/ 80/sq.ft 8x(10x20)= 16000/ 80/sq.ft 8x(10x20)= 16000/ 80/sq.ft 8x(10x20)= 16000/

TOTAL COST

1107000

Print Media Daily Dawn (week days) Daily Dawn (Sunday) Jang (week days) Jang (Sunday)

Front page(20x5) Front page(20x5) Front page (10x5) Front page (10x5) +200% extra

640750 x 4

321750 273000 11500 34500 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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