ASSIGNMENT Proposal

Re launch of Candia Milk

Our Introduction
We are the student of BBA (4A) from Superior University Lahore.

M. Tanzeel-e-Rahman-khan Arslan khalil Zaeem Munawar Riasat Ali

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COMPANY PROFILE
Over the years, Haleeb Foods Limited (HFL) has become a popular feature of family life throughout Pakistan. The first product launched to the many by HFL was Haleeb milk and today HFL has expanded its business to include Dairy Queen, Tea Max, Just Fruit, Tropico, Fun Milk, and other dairy products to its production and packaging lines. HFL has the peculiarity of being the first company in Pakistan to use Tetra Paks novel packaging formats, Tetra Brick Aseptic (TBA) and Tetra Fino Aseptic (TFA). Apart from its extensive nationwide distribution network, covering both urban and semi urban areas, Haleeb Foods is also serving international markets in Central Asia, Middle East, Australia and Europe.

VISION & MISSION STATEMENT VISION

Optimizing resources and deliver sustainable growth

MISSION STATEMENT

Productivity: Be a highly efficient & effective organization People: Develop a team of passionate and committed individuals whose goals are completely aligned with the corporate objectives Portfolio: Maintain a portfolio designed to meet changing consumer expectations by delivering nutritious and high quality food solutions in a cost effective manner Profit: Maximize long term return to shareholders while being ethically responsible Partners: Develop sustainable and mutually beneficial relationships with customers, suppliers and other stakeholders Planet: Be a responsible corporate entity by helping build sustainable communities

HISTORY
Haleeb Foods Ltd. was incorporated on July 1st, 1984 with a capital of Rs. 46 Million under the name of Chaudhary Dairies Limited which was renamed as CDL Foods Limited and now it is known to be as Haleeb Foods Limited. 1985 1986: The commercial production process started with UHT liquid milk from May 21, 1986. The liquid milk was the first product launched in the market. The company started its operations in 1985 having the state of the art plant in the entire dairy sector of Pakistan. Comprising an area of 32 Acres, this plant had a capacity of producing 80,000 liters per day of milk. In 1997 ISO 9002 Certification done. A New Brand Haleeb Asli Desi Ghee was launched which later on became a brand which took great part in contribution to companys turnover.

In 1998 entered in franchise agreement with Cedilac, France. Under this agreement, the company launched Candia range of value added liquid milk product and also had access to latest production techniques, and marketing practices. In 2000 Tropico Juice Drink Range was introduced. This became famous not only in national market but heavy export orders proved its success in countries outside Pakistan as well. In 2001 Introduced Dairy Queen standardized and homogenized pure UHT Milk with 3.5% fat and 8.9 solid non fats available in a modern 6-layered Tetra Pak Fino Packaging. At an affordable price and a three months shelf life; this brand won the hearts of consumers all over Pakistan. In 2002 the company contributed 54% to the countrys packed milk market as one of the companys leading national brand. In 2003 Haleeb Foods Limited (HFL) is declared as the biggest Food brand in Pakistan. Also gained ISO-9001:2000, HACCP Certification. This year had significant effects on companys growth. Cold Chain Products like Yogurt and Butter were launched. 2004: Corporate name was changed to Haleeb Foods Limited. A range of pure juices under the brand name of Good Day was introduced this year. Haleeb further penetrated into the market with the launch of FunMilk, Just Fruit and Tea Max (Tea Whitener), which led to added contribution towards growth. New management was introduced at HFL that hosted a completely fresh and modern approach towards business. The new ideology of work was shared; By thinking hard we are plotting a strategy that will safely steer our company to uninterrupted triumph VMFG (Pvt) Ltd acquired majority shareholding in Haleeb Foods Limited and took over the management of the company. The new management led to one of the most remarkable turnarounds in the contemporary corporate Pakistan- a milestone achieved by executing the plotted strategy. With a keen focus on improving the companys top line as well as the bottom line the company improved its profitability and focused on innovation and launch of new brands. Moreover with the brands being renovated HFL has proudly developed a platform to bounce back and reach out to the consumer while securing their trust and happiness.

PRODUCT INTRODUCTION
Candia is a product of CDL which was launched in 1999. Candia is basically a French brand and it is processed and packed under licensed for CDL. Candia is already is very popular brand in Europe and other 52 countries, and it was also made available in Pakistans all major cities under CDL distribution channels. CDL invested around 200 million rupees to launch Candia in Pakistan. Out of which 10to 15 million was used for its advertisement as early launched during world cup 1999.

Processing of Candia was very strictly standardized. The method of collection of milk for Candia is through the approved suppliers who maintain cattle in accordance to the prescribed standards, then the milk is tested in laboratory by conducting 8 different tests. The milk is received in the chiller containers and heated up to 8%. After that the milk is transported to the factory for processing.

REASONS OF FAILURE OF CANDIA IN PAKISTAN

There are areas of weakness in their market effort of Candia. Candia has not shown that result which were expected that time. It launched the whole advertisement expense in beginning only paid in first three month. After that the sale of Candia milk has been fall and it forced the company to cut 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, its color and taste of milk. The color is not purely white it was off-white and the people suspect that its not pure milk. AGE OF GROUP Candia is also not targeted for all ages of group. The milk has been able to attract the age group of 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 dont not prefer for Candia theyd go for other brands which were oriented to target this age group also like Milkpak from Nestle. PRICING Another area of weakness is the price strategy used for Candia. Its prices were higher than other brands available in Pakistan, which did 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 and the taste of the milk changes.

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. CDL was also not providing deep freezer and fridge to big retailer 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 incomes people living in pushing areas which dramatically reduced its sale.

CORRECTIVE ACTIONS FOR THE RE-LAUNCH

Buyer behavior and readiness Candias market share is gone completely 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. There should be promotional campaigns triggering the consumer buying behavior to purchase and try the product. 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. While the motivating strategy using sports and other healthy activities will attract the young people and in the end the elderly people must also be considered valuable in the promotional campaign. Direct marketing tools: It is strongly recommended that Haleeb foods must have an 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 so that it will depict that it is for multiple purposes, and lastly only to improve health of consumers. Some life style instances must also be used for the positioning it must also depict that it is a part of life for many people, doing this will create a urge for most of the people to purchase the brand and make it their own part of life. Packaging Packaging alternatives are now greatly improved and there is a vast variety in shapes, sizes, design, and material. Packaging must be modern and designed in such a way that it is targeting all age groups and the brand is correctly and effectively displayed in the front of the packaging. The packing must be able contain the milk for long time without any kind of deterioration in the quality. Product Depth Brand must have multiple products like flavored milk, tea whiteners, cream, butter, etc. this will also augment the brand personality and it will also escalate the sales.

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 for adds on different TV channel for the promotion of that product. TV ads can change the behavior of the consumer and can help to convey the message very effectively but they are expensive so a short but effective advertisement must be designed in such a way that it is able to position the brand in the minds of people on mass level. News papers CDL should advertise 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.

Promotional teams Promotional teams must visit institutes, markets, parks and all the places where there are big potential market gatherings to promote their product on personal scale. Consumer exhibitions Consumer exhibitions are a great forum for personal promotions and feedback of the customers.

CUSTOMER PROFILE
Demographics
The population of Pakistan is 179.2 million (2012) and is increasing with a rate of 1.6 % this is a great potential for the brand so they have to target everyone in the country. The families in Pakistan are now more aware of brands, people perspectives are now changing and they are more health conscious than ever before. This all goes in favor of the marketing strategy of our product and can significantly result in escalated sales.

Geographic
Candia should be distributed in urban areas and rural as well so the whole potential of the market is being utilized. They should operate nationwide and the product will become a national identity and part of life for everyone. As we have a new brand mantra that milk is for everyone. They should integrate their market penetration plans in each province differently because we have multiple cultures living in different provinces of Pakistan

Psychographics
Behavior of the people towards milk is changing as medical research and awareness has created a hype for better bone health and better diet. Milk is now a preferred diet in the routine of people so also goes in favor of our product.

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.