ACKNOWLEDGEMENT

We are very grateful to Mr Muntazir Mehdi for teaching us curriculum of Marketing Management his 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 him 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.

PREFACE

This Marketing Plan is prepared for the course of “Marketing Management” on Candia Milk.

It 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

COMPANY INFORMATION

CDL Foods Limited (formerly Chaudhry Dairies Limited) is a fast growing food products company.CDL was established in 1984 as a private limited company. The company came up with “haleeb milk” and later on it continued to expand its product line.

In 1988, CDL introduced “Haleeb Cream” which was not only launched directly for consumer market but also supplied to many ice cream factories where it was use a core ingredient. 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.

CDL FOODS LIMITED is the first food company and perhaps so far is the first dairy company in Pakistan to get ISO 9002 certification - a Quality management system. They are committed to strict quality standards in all their operations from collection of milk to the provision of hygienically processed food nutritious products to their customers.

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, Asli ghee

MISSION STATEMENT

“Build branded food business to improve quality of life by offer ingtasty, affordable and highly nutritional products to our consumers while maximizing

share holders value”.

VISION STATEMENT

“Most innovative and fastest growing food company offeringproducts enjoyed in every home every day”.

CORE VALUES

1.Team work

2.Empowerment

3.Trust

COMPANY’S STRENGTHS

The management of CDL considers its “brand loyal customers” as its biggest strength. These are the people who are continuously consuming its products. One factor that must be considered in this regard is the condition of the economyand the trend that high inflation rate is pushing people from higher price brands to lower price brands. CDL also enjoys a very well organized network of distributors who assure the continous supply of its products to the market. these distributors not only buy on cash but they also arrange for the transportation of the stock from the plant to the warehouses and to the retailers. Selling on cash helps the firm to keep the funds available and it also saves the company from credit management.

CDL Foods Limited continuously measure and monitor the market trends and competitor moves. They are getting feedback from their sales teams and dealers about what is happening in the market.

CDL has 64 sales teams all over Pakistan. 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 3 agencies:

Orient McCann MPL Asiatic advertising

The main competitor of Candia is Nestlé’s Milk Pak 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 explode neighboring markets.

INTER FUNCTIONAL COORDINATION

CDL Foods Limited (formerly Chaudhary Dairies Limited) is a fast growing foodproducts company. Having doubled its turnover in the last four years, thecompany 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. 4billion. The top management and employees at CDL is committed in their worksand they know the importance of coordination and interaction of different departments in order to achieve better results. Weekly meetings are heldbetween different departments in order to solve problems as well as to make accurate decision so that resources are not desecrated.

MARKET ANALYSIS

Pakistan currently produces an estimated 27.5 billion liters (or 27.5 million metrictons) 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 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

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. 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.

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 thatis processed through UHT (Ultra Heat Treated) treatment. Other brands supporting the Candiaumbrella are Candia Skimz [Tetra pak and instantpowder].

2. Haleeb

Haleeb is Pasteurized,Standardized,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 PureFood 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 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

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

REASONS WHY CANDIA FLOP

Taste

Packaging (without cap)

Poor distribution

Customer’s brand loyalty towards other brands

SWOT ANALYSIS OF CANDIA

STRENGTHS:

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

 

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.

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

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 havea very strong distribution network and there is no need to make change in thedistribution strategy. We are using conventional distribution strategy having 8distributors in Karachi. Candia will primarily be distributed to A and B classoutlets with exclusive shelf positioning having different POP’s displays.

Pricing:

The prices of the Candia milk will be competitive. The price will remainsame that is Rs.54 for 1 liter and Rs.30 for ½ liter .

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

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, packagedbrands 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 theprocess being a highly complex and delicate matter [any impediment or disruption in the process can cause the entire batch processing to restart allover] which can cause tremendous financial crunch to medium sizedorganization.

Competitive Advantage

In the packaged milk category, the competitive advantage that can beobtained is through effective distribution and consistent marketing communications.

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 proprietary 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

We are 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 brandassociations 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 isreceived by the target market and according to what the core values of the Candia brand communicate.

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 ironfor 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 everyday, children will get 65% of the iron and 80% of the calcium they need.

Potassium (mg)

1 2 7 1 5 2 1 38 1 3 8 1 7 6

Sodium (mg)

4 1 4 1 40 4 0 5 0

Vitamins

A

6 0 3 4 34 3 4 4 76 5 6 5

B1 (mg)

3 0 0 . 0 4 0 . 0 40 . 0 4 0 . 0 7 0 .0 8 0 . 0 8

B2 (mg)

0 . 1 1 0 . 1 7 0 . 17 0 . 1 7 0 . 2 3 0 .2 5 0 . 2 5

B5 (mg)

0 . 2 0 0 . 3 5 0 . 35 0 . 3 5 0 . 4 4 0 .4 5 0 . 4 5

B6 (mg)

0 . 0 3 0 . 0 3 0 . 03 0 . 0 3 0 . 0 4 0 .0 4 0 . 0 4

B8 (µg)

3 . 5 4 3 . 5 4 3 .5 4 4 . 7 7 4 . 7 4. 7

B9 (µg)

3 66 69 99

B12 (µg)

0 . 3 0 0 . 3 3 0 . 3 30 . 3 3 0 . 4 5

C* (mg)

6 . 0 0 0 . 9 6 0 . 9 60 . 9 6

D3 (µg)

1.25

E (µg)

0 . 6 6 0 . 1 2 0 . 12 0 . 1 2 0 . 1 7 0 .1 7 0 . 1 7

PP (mg)

6 0 0 . 0 6 0 . 0 60 . 0 6 0 . 0 8 0 .0 8 0 . 0 8

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 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 8main 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 exclusivelydesigned POP’s according to specifications as per the brand image andrequirements. We are providing Candia to A, B and C class stores.The reason why we have chosen this strategy is due to financialconsiderations.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).

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 milkcompetitors like Milk Pak and Milk flow their prices are higher. Wearemaintaining 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.

The other consideration also includes 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 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 line extension (targeting kids)

3. Co branding with Dunkin Donuts

4. Co branding with LU biscuit

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 abasic 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.

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 3rdPhase

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.