executive summary of candia milk project
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Start With The Great Name Of Allah Who Is Most Beneficial And Merciful
A Project on
An Improvement Marketing Strategy For
CANDIA MILK
ASSIGNMENT OF : CONSUMER BEHAVIOR
Given by : Mam Mehwish
Group Members Are:
Ramsha mazhar 2k11 bba 27
Muhammad Boota 2k11 bba 21
Iqra memon 2k11 bba 08 Maria
Arain 2k11 bba 16
Poonam harani 2k11 bba 24 Murk
samoon 2k11 bba 22
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Daniyal khan 2k11 bba 06 Syed
Uzair ali 2k11 bba 40
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CONTENTACKNOWLEDGMENT
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 and targeting
Positioning of Purid,b melkoSWOT Analysis
PEST Analysis
Marketing Mix
8. DIFFERENTIATE BETWEEN PURIB MELKO AND COMPETITVE
PRODUTS
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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 depth of the study and efforts put into it.
THANKING YOU
ACKNOWLEDGEMENT
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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.
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 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.
EXECUTIVE SUMMARY
COMPANY INFORMATION
CANDIA MILK INFORMATION
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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. Themiddle 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.
.
The method of collection of milk for Candia is through the approved supplier
who maintains cattles in accordance to the prescribed standards. Then themilk 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 ofdistributions. One bottle of Candia contains 3.5%of facts and 8.9 SNF.
PROCESSING OF MAKING CANDIA MILK
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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
.
ECONOMIC CONDITION:
The following economic conditions which can affect the marketing activities for
Candia are:
MARKETING STRATEGIES FOR CANDIA
Environmental
Factor
On Candia milk
Environmental
Factor
On Candia milk
Environmental
Factor
On Candia milk
Environmental
FactorOn Candia milk
Environmental
FactorOn Candia milk
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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.
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.
Consumer market
Segmentation
Behavioral
segmentation
Demographic
segmentation
Geographic
Segmentation
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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 inwhich 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 1 liter (1 bottle) 12 liters (12 bottles)
Trade price Rs.28 Rs.336
Retails Rs.30 Rs.360
Bottle size 0.5 liter (1 bottle) 6 litter (12 bottles )
Trade price Rs.14 Rs.168
Retails Rs .15 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.
After conducting the whole research. We have been able to point out obtainareas of weakness in the marketing effort of Candia. Candia has not shown
REASON OF FAILURE
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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 retailstores, 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 hasbeen able to stimulate the demand the age group of 612 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
Pakistansmean 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 thefat 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.
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. Wedecided to offer same product with different name, features, characteristics,
flavors, process and packaging. The name which we are choosing for attracting
consumer market is PURIDB MELKO. Puridb 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.
IMPROVING STRATEGY OF CANDIA MILK
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PRODUCT OFFERING IN DIFFERENT FORM:We are offering Puridb melko in two forms:
Powder form Liquid form
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PRODUCT OFFERING IN DIFFERENT FLAVOR:
POWDER FORM:
Strawberry flavor chocolate flavor vanilla flavor banana flavor
LIQUID FORM:
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PURE MILK CHOCOLATE MILK STRAWBERRY MILK BANANA MILK
PISTA MILK VANILLA MILK CHOLESTEROL FREE MILK ALMOND
MILK
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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 thedevelopment of healthy bones in kids, as part of healthy, balance diet and
lifestyle. The flavors which are including in powder form are:
PURIDB 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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PURIDB MELKO (CHOCOLATE FLAVOR):
Milk is the best source for dairy nutrients. Childrensrefuse 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.
PURIDB 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 puridb melko (vanilla 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.
PURIDB 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 Puridb melkois:
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PURIDB 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
puridb melko (cholesterol free milk).
PURIDB 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 puridb melko is:
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PURIDB MELKO (STRAWBERRY FLAVOR):
Consumer also like strawberry flavor. With good taste it also gives
nutrition to the body. The nutrition which involve in the Puridb melkoare.
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 PURIDB 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 puridb melko consistsof:
LAYERS:
PackagingDesign
labeling
Color
Shaping
Layer
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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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SEGMENTATION AND TARGETING:
SEGMENTATION:We divided the market in to smaller sagments .the following segmentation are
applied.
GEOGRAPHIC SEGMENTATION:Puridb 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.
SEGMENTATION
BEHAVIOURAL
SEGMENTATION
DEMOGRAPHIC
SEGMENTATION
GEOGRAPHIC
SEGMENTATION
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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 PURIDB MELKO:We target Puridb melko in urban areas,middle and lower income class. And
different age group.
POSITIONING OF PURIEB 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 positioningstrategy like
Great taste makes healthy wealthy life
We hope that consumer understand this positioning.
SWOT ANALYSIS:We analysis the SWOT of Puridb 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
Puridb 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 negativeeffects.
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 ml trade price retail price
pure milk 250ml 22 Rs 24Rs
cholesterol free milk 250ml 23 Rs 25Rs
almond flavor 250ml - -
chocolate flavor 250ml - -
strawberry flavor 250ml - -
vanilla flavor 250ml - -
pista flavor 250ml - -
Powder form milk gm trade price retail price
Banana flavor 400gm 260 Rs 270 Rs
Chocolate flavor 400gm - -
Vanilla flavor 400gm - -
Strawberry flavor 400gm - -
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Retailer
Customer
PLACE/DISTRIBUTION:
Company Distributor
PROMOTION:
Promotion of purid,b melko depend on:
Advertisement
Public relation
ADVERTISEMENT:
We will advertisement on different channels.
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DIFFERENTIATE BETWEEN PURIB MELKO
AND COMPETITIVE PRODUCTS:
Reasons Liquid form
PuridB melko Olpers milk Nestle
milkpack
Pakola
Price 24 RS (250ml) 26 Rs(250ml) 25 RS (250ml) 26 Rs(250ml)
Advertisement Signboard,Newspaper
Pamphlets
TV
Social media
TvRadio
Billboards
Shops
Printers add
Pamphlets
RadioNewspaper
Magazines
Billboards
cables
NewspaperVideo
Competitive
advantage
2 forms of
milk
Powder/liquid
1 form only
liquid
Liquid Liquid
Target market UrbanLower/middle
class
Urban Urban Urban
Position
strategy
Test make
healthy
wealthy life
Jo dill khol k
jeety hen
unhi k liye hai
olpers
Jaan bnao Milk make
irresistible
Competitors
top related