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Start With The Great Name Of Allah Who Is Most Beneficial And Merciful
A Project on An Improvement Improvement Marketing Marketing Strategy Strategy For
CANDIA MILK
ASSIGNMENT OF : CONSUMER BEHAVIOR
Given by
:
Ramsha mazhar Muhammad Boota Boota Iqra memon
Maria
Arain Poonam harani samoon
Murk
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Daniyal khan Uzair ali
Syed
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Daniyal khan Uzair ali
Syed
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CONTENT ACKNOWLEDGMENT 1. EXECUTIVE SUMMARY 2. COMPANY INFORMATION 3. CANDIA MILK INFORMATION 4. PROCESSING OF MAKING CANDIA MILK 5. MARKETING STRATEGY FOR CANDIA MILK Dynamic environment for Candia milk Consumer market segmentation Target market for Candia Marketing mix strategies for Candia milk
6. REASONS FOR FAILURE 7. IMPROVING STRATEGY FOR CANDIA MILK Product information Processing of making purid,b Melko Packaging Segmentation Segmentation and targeting Positioning of Purid,b melko SWOT Analysis PEST Analysis Marketing Mix
8. DIFFERENTIATE BETWEEN PURI’B MELKO AND COMPETITVE PRODUTS
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ACKNOWLEDGEMENT In regard of this report first of all we would like to thank almighty Allah whose help
made
us
able
to
complete
this
report.
We extend our heartiest thanks to “MADAM MEHWISH”, for conducting this
course and making it interesting and knowledgeable, without his efforts and co-operation the report would not have been possible. We also thank for his confidence and trust she had in us, importance of which can in no way be under
estimated.
We are equally grateful to university of Sindh for providing us the opportunities to pursue our endeavor. We hope readers of this report can complement
the
THANKING YOU
depth
of
the
study
and
efforts
put
into
it.
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EXECUTIVE SUMMARY We choose a product of Candia milk which is failure product of CDL (Chaudhry dairy limited) company. The purpose of choosing this failure product is to make new marketing strategies for this product. In this report we discuss the causes behind the failure of Candia milk product and making improvement strategies from which product attract the customer and also competitive with revival.
COMPANY INFORMATION CDL (chaudhry dairy limited) is one of the reputable and renowned company in Pakistan. CDL was establishing in 1984 as a private limited company. The company came up with the first going product” Haleeb Milk” and later it continue to expand its product line.
CANDIA MILK INFORMATION Candia is a product of CBL which was launched first time on April 12, 1999. Candia is basically a French brand and it is processed and packed under licensed by CBL. Candia is already popular brand in Europe and other 52 countries.
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Now it is available across Pakistan including all the major cities through CDL distribution channels. It is every unique in its packaging and features. It is packed in plastic products bottles of two different size 0.5 liter and 1 liter. The plastic it contains consists of three layers. The outer and inner layers are white in color and compose of same formulation of high density polyethylene. The middle layer is black in color which protect the milk from heat and light as for as packaging is concern has no competitor in local market. .
PROCESSING OF MAKING CANDIA MILK The method of collection of milk for Candia is through the approved supplier who maintains cattle’s in accordance to the prescribed standards. Then the milk is tasted in laborites by conducting 8 different tastes. The milk is received in the chillers containers and heated up to 8%.after that the milk is transported to the factory for processing. The process of Candia milk under does through 6 different stages. Firstly fresh milk is pasteurizing. Then it goes from the stage where it is standardize and homogenized. After homogenized the milk is heated at 140 degree centigrade ultra high temperature for about 4 seconds and then its goes for aseptic packaging. After packaging is sterilized and send to the channels of distributions. One bottle of Candia contains 3.5%of facts and 8.9 SNF.
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MARKETING STRATEGIES FOR CANDIA In the marketing orientation stage company identify what consumer want and see the all activities of the firm to satisfy those needs as efficiently possible.
DYNAMIC ENVIRONMENT FOR CANDIA MARKETING: The successful marketing depends largely on company ability to manage its marketing programs within its environments. The environmental factors which can influence on Candia sale {Candia product} are Environmental Factor On Candia milk
Environmental Factor On Candia milk
Environmental Factor On Candia milk
Environmental Factor On Candia milk
Environmental Factor On Candia milk
.
ECONOMIC CONDITION: The following economic conditions which can affect the marketing activities for Candia are:
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Inflation (When Candia was launch, the inflation rate in the country was, 6.5% officially as compare to the last year inflation rate of 8.3%.)
Competition (Candia has no competition in the local market. But, as core product is concern, there is substitute threat).
SOCIO/CULTURE CHANGES: Few changes in socio/culture forces that have significant marketing implication for Candia. The socio/culture change rapidly the people perception about the UHT Milk increase and they think that fresh milk is more pure than UHT milk but some people think that UHT milk is good for health.
POLITICAL AND LEGAL FORCES: The political and legal forces which effect CDL marketing effort for launch the Candia were the environmental anti population law, according to which a company is prohibited to use a plastic packaging which is not recyclable. Candia has special ‘USP” packaging which is recyclable and environmental friendly.
TECHNOLOGY: The technology introduce by CDL for Candia is plastic bottle packaging which is also unique selling point because there is no other local company providing such packaging.
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CONSUMER MARKET SEGMENTATION; CDL divided the total market into smaller segments with a prospect to enhance effective acceptance and sales of Candia. The following segmentation basis was applied. Consumer market
Segmentation
Geographic Segmentation
Behavioral segmentation Demographic segmentation
GEOGRAPHIC SEGMENTATION: As concern geographic segmentation, CDL has segmented its potential market in all the four provinces. As far as the residing areas are concern CDL has specifically segment its market in the urban sectors.
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DEMOGRAPHIC SEGMENTATION: In term of demographic segmentation, CDL has divided the market on the basis of income, age, gender and style.
Income
Target consumer of candia has high income (10,000-above)
Age
No segmentation in age group.
Gender
Target male and female
Social class
Target upper class and upper middle class
BEHAVIORAL SEGMENTATION; In terms of behavioral segmentation, CDL has divided the market on the basis of benefit desire from the product and its usage rate.
As regards the benefit desired from the product, CDL has segmented the market on the basis of quality and test.
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TARGET MARKET FOR CANDIA; The CBL target the product specifically on urban sectors. There was no ultimate consumer as no age limitation were specify for the product.
MARKETING MIX STRATEGIES FOR CANDIA MILK: CDL design a complete marketing mix for Candia which includes:
1. PRODUCT: Candia is a commodity which is offered to the consumer to fulfill their needs. It is processed milk which is treated with UHT technology. It is a liquid form white in color and packed in plastic bottles which are available in 2 sizes.
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PACKAGING AND BRANDING OF PRODUCT: Branding and packaging two actual parts of products. Brand names identify the product. The brand name of the product is “candia”.it is separate name used for the product without using the cooperate name which CDL. Although branding is under cooperate name CDL but CDL is not used combine with brand name. As far as the packaging is concern, CDL is following families “packaging strategies” in which the bottles of Candia are place in one container. Packaging
includes all the details about product. In Candia case, the packaging is the plastic bottle of white color with a lid on its opening. The packaging is use to protect the milk from heat and light.
POSITIONING OF PRODUCT: The positioning of Candia was “positioning is related to a product class or attributes” the attributes on which CDL has positioned Candia “taste”.
2. PRICING STRATEGIES AND OBJECTIVES:
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The pricing strategy objective which CDL selected for Candia was purely “profit oriented”.
There are no discount offered for consumers The following table shows the existing prices for Candia:
Bottle size Trade price Retails Bottle size Trade price Retails
1 liter (1 bottle) Rs.28 Rs.30 0.5 liter (1 bottle) Rs.14 Rs .15
12 liters (12 bottles) Rs.336 Rs.360 6 litter (12 bottles ) Rs.168 Rs .180
3. DISTRIBUTION STRATEGIES: The chain of distribution adopted for Candia is: Firstly the companies give its product to distributor and distributor give company products to the retailer and finally it reaches to customer. The company has one ware house situated in (Bhai Pheru) from where these distributions take place.
4. PROMOTIONAL MIX: Candia is a new product, so the objectives are too aware and inform people about its distinctive features. The promotion mixes for Candia include, advertising, and public relation.
ADVERTISING; The followings are include in advertising.
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Sign board
Newspaper
Television
PUBLIC RELATIONS CDL also carried out public relation to build a favorable for an organization.
REASON OF FAILURE After conducting the whole research. We have been able to point out obtain areas of weakness in the marketing effort of Candia. Candia has not shown
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those result which were expected at time. It launches the whole advertising campaign carried out in the beginning paid only in the first three months. After that sales drastically fell down which forced the company to cut it expenditure on promotions. On the basis of feedback gathered from around user of Candia and retail stores, which keeps Candia, we evaluated several key failure points which are lists below.
The foremost important attribute where Candia behind is the taste and color of milk. The color is not purely white and therefore people suspect that it is not pure and fresh.
Secondly Candia has failed to target all the age groups. The milk has been able to stimulate the demand the age group of 6 – 12 youth. Youth and elderly people are not targeted.
Candia has failed to persuade the health conscious people, who mostly being to their target market of higher income group. They perceive the milk very thick and hence switch to other very low fat milk available in the market.
Another area of weakness is the pricing strategy used for Candia. Its price is higher than other brand in the market. One time Candia is following market penetration strategy and at same time the prices are kept higher than other brand, which does not allow Candia to penetrate in the market.
Regarding packaging of Candia, the plastic used in thick as compare to foreign plastic bottled available in the market. This plastic used is not approved by any of the association. While the plastic used in the bottles of original French Candia is “FDA” approved. Packaging is only factor contributing to bad taste and color of milk. Once it is expose to sunlight the milk get discolored
Instead of plastic cap. Foil is used on the mouth of the bottle as sealed wrapping. If seal is teased off for use it remains unclose allowing air to enter into the battles which further reduce the life of the milk.
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Coming to the brand of the product, the name Candia, most of Pakistan’s mean more likely the name of some candy. The brand name is suitable for flavored milk rather than plain milk.
The labeling does not include much information about the milk only the fat contents are percentage is mentioned which not enough to inform a customer about the important nutrients is containing in the milk.
The packaging is deceptive in the scene that it is off white color while the milk is not pure white. The bottle should be transparent so that the exact color of the milk is visible.
Since it is launched, the company has not been able to increase the depth of the product such as color, flavors, sizes and varieties. These innovations are necessary in building the image of brand into the mind of consumer.
There is no incentive or discount offered to retailer and end consumers.
Not been able to target remote areas, small town and northern areas of Pakistan where there is lot of demand for tea.
IMPROVING STRATEGY OF CANDIA MILK Now we make improvement in strategy for failure product Candia, which satisfy the customer and fulfill the need of customer.
PRODUCT INFORMATION: Candia milk is the product of CDL. This was failed from different causes. We decided to offer same product with different name, features, characteristics, flavors, process and packaging. The name which we are choosing for attracting consumer market is “PURID’B MELKO”. Purid’b melko is derived from Czech language which means pure milk. In the place of Candia milk, we are providing you Purid,b melko in a different form and flavor.
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PRODUCT OFFERING IN DIFFERENT FORM: We are offering Purid’b melko in two forms:
Powder form
Liquid form
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PRODUCT OFFERING IN DIFFERENT FLAVOR: POWDER FORM:
Strawberry flavor
LIQUID FORM:
chocolate flavor
vanilla flavor
banana flavor
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PURE MILK
PISTA MILK MILK
CHOCOLATE MILK
STRAWBERRY MILK
VANILLA MILK CHOLESTEROL FREE MILK
BANANA MILK
ALMOND
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PRODUCT OFFERING: POWDER FORM: In this we provide milk in powder form. This powder form milk is target to the kids. This powder form milk is rich in calcium to help build healthy bones and teeth, we know milk is good for all the family but getting kids to drink milk however can be tricky. Purid,b melko has help generation of kids to enjoy milk by making it taste delicious with good flavor and color. Purid,b melko contain vitamin D, essential to help the body absord the calcium in milk for the development of healthy bones in kids, as part of healthy, balance diet and lifestyle. The flavors which are including in powder form are: PURID’B MELKO(BANANA FLAVOR):
Banana provides some important nutrients to the body that is good for the kids health that why we choosing banana flavor. The nutrition in purid, b melko (banana flavor) are:
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PURID’B MELKO (CHOCOLATE FLAVOR): Milk is the best source for dairy nutrients. Children’s refuse to drink pure milk. They want tasty flavor in milk. So we put chocolate flavor in powder form milk because children like this flavor. Chocolate powder milk has the some same nutritional power of white milk. The nutrition in purid,b melko (chocolate flavor) are.
PURID’B MELKO (VANILLA FLAVOR):
Vanilla is another flavor which kids like. This is also good for kids health and and also provide health benefits and important nutrition. The nutrition in purid’b melko (vanilla flavor) is:
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PURID’B MELKO (STRAWBERRY FLAVOR):
Kids also like strawberry flavor. Strawberry also give important nutrition that is good for kids health that why we choose the strawberry flavor. The nutrition in Purid’b melko (strawberry flavor) is;
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LIQUID FORM: In this we provide milk in liquid form. This liquid form milk is target for teenagers, youngster and adults. Different type of age group like pure milk and also different flavor in milk. Following are the liquid form in purid’ b melko. PURID’B MELKO(PURE MILK):
Milk build strong bones and teeth, it provides calcium and other nutrition which is good for health of consumer. It provides 50% calcium the nutrition in Purid’b melko is:
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PURID’B MELKO(CHOLESTEROL FREE MILK):
We provide cholesterol free milk for those consumers who have high cholesterol and who do not drink milk because of cholesterol that why we providing cholesterol free milk. In this we also provide nutrition in purid’b melko (cholesterol free milk).
PURID’B MELKO (ALMOND FLAVOR):
Almond is good for mind .this also provide other nutrition that is good for consumer health and many consumer like this flavor that why we choosing this flavor. The nutrition in purid, b melko are:
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PURID,B MELKO (CHOCOLATE FLAVOR): Consumer want different taste in milk, many consumers do not like pure milk. They want delicious taste in milk that why we chose chocolate flavor, they also provide nutrition which is good health. The nutrition in the purid’b melko is:
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PURID’B MELKO (STRAWBERRY FLAVOR):
Consumer also like strawberry flavor. With good taste it also gives nutrition to the body. The nutrition which involve in the Purid’b melko are.
Nutrition Facts Serving Size 1 Serving (100 g) Per Serving% Daily Value*
Calories 230 Calories from Fat 72 Total Fat 8g12% Saturated Fat 5g25% Cholesterol 30mg10% Sodium 100mg4% Carbohydrates 33g11% Dietary Fiber 0g0% Sugars 30g Protein 7g Vitamin A 6% · Calcium 25% ·
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PURID,B MELKO (VANILLA FLAVOR): Vanilla is a good flavor which consumer like. It provides important nutrition for growth and development. The nutrition in the purid,b melko are;
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PROCESSING OF MAKING PURID’B MILK: PROCESSING OF MAKING LIQUID MILK:
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PROCESSING OF MAKING POWDER MILK:
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PACKAGING: The packaging is one of the most important factors which help to attract the customer. Packaging of purid’b melko consists of:
Layer
Design
Packaging labeling
Shaping Color
LAYERS:
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PACKAGING SHAPING: There are many shaping of milk products but we chose standardize shaping for the purpose of packaging of Candia milk. Candia milk packaging is attractive for this reason we decided to change the shape of packaging.
PACKAGING SHAPE OF POWDER FORM MILK:
PACKAGING SHAPE OF LIQUID FORM MILK:
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PACKAGING COLOR: We are choosing three standard colors that are red, green, and sky blue. And other colors on packaging depend on different flavors of milk. The reasons behind of choosing these colors are:
RED COLOR:
red means energy, passion, excitement and strength. Using red for your packaging colors draws attention to your product, stimulates the senses and excites the potential purchaser
GREEN COLOR: For
packaging colors, green suggests natural, organic and healthy, a good color to use for environmentally friendly products.
SKY BLUE: Blue relates to
trust, honesty and reliability, strength and unity. When used in your packaging colors it communicates trust and reliability in the product.
Other colors: other color depends on the flavor of the milk like: Chocolate is brown so color on packaging is brown and other color on packing is same like this.
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DESIGN: Designs on packaging also attract the customer. Different flavor of milk has different design on their packaging. Design on packaging shows that what product is actually.
LABELING: Labeling on packaging give important information about product. In the packaging of Candia milk there is no such information about product but in the packaging of purid’b melko provide all necessary information like:
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SEGMENTATION AND TARGETING: SEGMENTATION: We divided the market in to smaller sagments .the following segmentation are applied.
SEGMENTATION
GEOGRAPHIC SEGMENTATION
BEHAVIOURAL SEGMENTATION
DEMOGRAPHIC SEGMENTATION
GEOGRAPHIC SEGMENTATION: Purid’b Melko available in four provinces and full is trying to distribute the milk as much as possible in more cities. And focus on urban areas.
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DEMOGRAPHIC SEGMENTATION: In term of demographic segmentation, we divided the market on the basis of income, age, gender, and class.
Income
Age
Gender
Social class
Target consumer of lower and middle class income.
these different form and flavor of milk are target at different age group powder milk(5-15) flavor milk (15-34) cholestore(34 + ).
Target male and female
Target upper class and upper middle class
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BEHAVIORAL SEGMENATATION: In the term of behavior segmentation, we divided the market on the basis of benefits that consumer seek in the milk. As regards the benefits desired from the product, we segmented the market on the basis of bestquality, taste, flavor and colors.
TARGET MARKET FOR PURID’B MELKO: We target Purid’b melko in urban areas, middle and lower income class. And different age group.
POSITIONING OF PURIE’B MELKO: The positioning of Candia was “positioning is related to a product class or attributes” the attributes on which CDL has positioned Candia “taste”. But their positioning not understands by consumer. . Purid’ b melko has adopt the functional positioning strategy like
“Great taste makes healthy wealthy life” We hope that consumer understand this positioning.
SWOT ANALYSIS: We analysis the SWOT of Purid’b melko
STRENGTHS:
Quality product
Try to conduct fresh and clean milk
Strong supply chain networks
Commitment to high quality
Focus on research and development
Providing different flavor at different age group
Good in packaging.
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WEAKNESS: Does not give milk on credit Purid’b melko provide only milk not juice, water, ice-cream .
OPPORTUNITIES:
Innovation in product development, packaging and presentation. Increase employments for the people
THREATS: Lack of education among the farmer Load shedding Competitors Perception and price differentials
PEST ANALYSIS: POLITICAL FACTOR:
Unstable political conditions strikes and road blocking creates problem for delivery on time.
ECONOMIC FACTOR:
Inflation rate also effect on product. in economic factor we face our competitors( olpers,pakola,nestle) which influence on our product.
SOCIO-CULTURE FACTOR:
People mostly prefer fresh and open milk and rely less on processing milk because they think that milk companies add chemical in the milk during processing.
TECHNOLOGICAL FACTORS: Some time technology has positive effect and some time have negative effects. Positive In scene that like new machinery in the production of milk. Negative in scene those workers have no knowledge about the new technology.
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MARKETING MIX: Marketing mix contain: Product: Price Place / distribution Promotion
PRODUCT: We provide you product in different form and different flavor, as mention in above (product information). These forms of products provide all features, charatertictes which consumer wants.
PRICE: Liquid form milk
pure milk cholesterol free milk almond flavor chocolate flavor strawberry flavor vanilla flavor pista flavor Powder form milk
Banana flavor Chocolate flavor Vanilla flavor Strawberry flavor
ml
250ml 250ml 250ml 250ml 250ml 250ml 250ml gm
400gm 400gm 400gm 400gm
trade price
22 Rs 23 Rs trade price
260 Rs -
retail price
24Rs 25Rs retail price
270 Rs -
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PLACE/DISTRIBUTION:
Company
Retailer
Customer
PROMOTION: Promotion of purid,b melko depend on: Advertisement Public relation
ADVERTISEMENT: We will advertisement on different channels.
Distributor
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