LETTER OF TRANSMITTAL

April 19, 2011

Dr M.A.K CHISHTY

Barand Management

IQRA University

Karachi

Acting in accordance with the received directions, the report on “failure of Candia Milk” as Final brand
management project is hereby submitted.

The report analyzed the reasons for failure of the product and recommended steps, by changing the
target market and also includes a description of the product its benefits, pricing, and positioning
strategy, advertising and promotional plans and a consideration of its distribution channels.

A marketing plan has also been given with the company’s objectives and existing competitors in the
market place.

We are of firm belief that this report will not only provide you with all necessary information pertaining
to the topic but will also cover all aspects and hopefully meet your expectations. It will be our pleasure
to provide you further details if required.
 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 Dr MAK Chishti, 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 Iqra University for providing us the opportunities to pursue our endeavor. We
hope readers of this report can complement the depth of the study and efforts put into it.

Thanking You
CORPORATE PROFILE OF CDL

CDL (Chaudhry Dairy Limited) is one of the reputable and renowned companies in Pakistan.
CDL was established in 1984 as a private limited company. The company came up with its first
doing product “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 used as a core ingredient. The company has its
head office in Lahore and a plant is located 65-km from Lahore in Bhai Pheru. The plant is
equipped with latest equipment and technology, specialized workers scientists and professionals
who assures quality at every level of production process.

The dairy industry in Pakistan is very competitive. There are large number of players including
multinational and local companies which portrays an oligopolistic market structure without
product differentiation. In such cumulative and challenging marketing environment the strategic
management of CDL has been able to maintain its dominant image in the market. The company
has already awarded ISO-9000 in 1997 for its strict quality control operational systems.
Currently, the plant is running with the capacity utilization rate of 90%.

CORPORATE MISSION

CDL has the prime corporate mission of achieving and maintaining high quality. But in broader
term its mission statement states the following;

• Providing nutrition’s and hygienically processed food products to our customers at competitive
price.

• Enhancing our reputation for quality in all our operations.

• Promoting mutual trust with customers, suppliers, employees and shareholders.

• Providing a safe and healthy environment to our community

CANDIA MILK IN PAKISTAN:

CDL (Chaudhry Dairy Limited) is very reputable company in Pakistan which was established in
Pakistan in 1984 as private limited company.cdl has started his business with his first product
Haleeb milk and continued its product line. Candia is a product of c which was launched in 1999.
Candia is basically a French brand and it is processed and packed under licensed in CDL. Candia
is already is very popular brand in Europe and other 52 countries. Now it is also available in
Pakistan, s all major cities under CDL distribution channels.cdl invested around 200 million
rupees to launch Candia in Pakistan. Out of which 10to 15 million spend on its advertisement as
early launched during w.cup 1999.

REASON WHY CANDIA MILK WAS A FAILURE IN PAKISTAN

AFTER conducting the whole research it has been pointed out that there are areas of weakness in
their market effort of Candia. Candia has not shown that result which were expected that time.
It’s launched the whole advertisement expense in beginning only paid in first three month. After
that the sale of Candia milk has been fall and its force the company to fell down its promotion
expenses. Following are the evaluated major factors of its failure:

POOR ADVERTISING AND MARKETING CAMPAIGN

Candia milk failed to do proper advertising and marketing campaign. Hardly any advertisement
was on aired or other medium of advertisement and marketing were used by Candia Milk.

COLOR AND TASTE

The important attributes that Candia is behind, is in color and taste of milk. The color is not
purely white and the people suspect that it’s not pure milk.

AGE OF GROUP

Candia is also not covered to all ages of group. Candia fails to cover to target all age of Group.
The milk has been able for the age group 6-12. Youth and elderly people are not targeted. The
young people age between 20 -34 has high purchasing power. On the other hand they don’t not
prefer for Candia or any other packaged milk and they will go for fresh milk.

PRICING

Another area of weakness is the price strategy which was used for Candia. Its prices higher than
the other brand available in Pakistan .which does not allow Candia to penetrate in the market

PACKAGING

Packaging is the only factor contributing to bad taste and color of the milk. It is a USP packaging
but if once its exposed in the sunlight the milk get discolored.

BRANDING

Now coming to the branding of the Candia, the name Candia to most of the Pakistanis means like
a name of some candy, people are not aware of the original Candia which was famous in Europe
and other 52 countries around the world. The brand is suitable more than a flavor milks rather
than plain milk.

DEPTH

Another major reason of the failure of Candia that the company has been not able to increase the
depth of the product since its launching such as flavors colors sizes and variety. These
innovations are necessary to create a good images in the mind of the consumer.

INCENTIVES

There is no incentive or discount offered to consumers. Moreover there is no bulk discounts that
buy 12 get one free. This practice is followed by the competitors. The CDL is also not providing
deep freezer and fridge to big retailers’ outlets and departmental stores of Candia. There are
many other areas where Candia milk is not performing well. One of them is target market of
Candia milk. Candia milk target the high income’s people living in pushing areas which are
dramatically reduced its sale.
CORRECTIVE ACTIONS WHICH COULD HAVE BEEN TAKEN BY THE COMPANY
TO AVOID THE FAILURE

Buyer behavior and readiness

Candia’s market share is declining and there is a need is to make a comeback policy to
strengthen the brand and this can only be done through promotion mix to make an image in the
minds of the people.

Advertising strategy:

During summers, as the milk production declines because of low supply of raw milk from dairy
farms; the supply decreases, which increase the demand for, packaged milk, it is recommended
that the management should emphasize on Pull strategy as Candia now may be used as an
alternative product. Advertisements, print media, electric media campaign, etc.

Sales promotion strategy:

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

Personal selling tools:

Emotions- sales force will exploit the emotions of parents and persuade them to select Candia as
drinking milk for their kids.

Direct marketing tools:

It is strongly recommended that Haleeb foods must a effective web presence in this interactive
world. To promote the entire site, an online marketing program must be launched. A
comprehensive, highly targeted group of destination web sites must be chosen for the program.
The web site should be registered with yahoo search portal. And a number of tactical elements
will help drive online awareness and inquiries into the program
Internal Communications:

Over the years, organizations have now started understanding the importance of internal
communication in achieving corporate goals and objectives.

We strongly believe that by implementing the above-mentioned strategies the management will
be mighty capable of enhancing corporate profitability, create a resounding brand name of
Candia.

Positioning strategy:

Candia has a current positioning strategy that Candia milk is mostly meant for drinking purposes.
It is firmly believes that the management has to somehow modify the product positioning.

Promotion strategy

Following ways should be adopted for the promotion of Candia which is helpful for the
improvement of the sale of Candia

Television

Television can play an important role for the promotion of Candia a marketing budget should be
spend or the add on different TV channel for the promotion of that product.

News papers

CDL should advertise of Candia milk in all reputed daily newspapers like Jung Dawn Din
Nawa_e_ waqat Nation etc

Sign board

Sign board and billboard can also play a vital role in the promotion of Candia. Candia neon sign
can also be observed on the eye catching location in the cities.
CONCLUSION

In this report, it is concluded that not giving proper attention to the advertising of the product,
can lead to the failure of the overall market plan, and the product in any country. Same was the
case of Candia Milk in Pakistan, due to no proper advertising plan and efforts, it overall market
share lost in Pakistan, and no it hardly seen in any store and market.

If the company gives consideration to the given recommendations, it is hoped that they can
overcome the failure of product caused to them due to in efficient marketing and advertisement
strategy.