Candia Milk: Expansion Strategy and SWOT

Candia Milk Expansion Strategy and trick upCDL (Chaudhry Dairy Limited) is one of the reputable and renowned companies in Pakistan. CDL was established in 1984 as a private limited association. The comp whatsoever came up with its beginning fruit Haleeb Milk and continued to expand its harvest line. In 1988, CDL introduced Haleeb clobber which was not only open uped directly for consumer foodstuff except also supplied to some ice cream factories where it was utilize as a core ingredient. The company has its head office in Lahore and a plant located 65-km from Lahore in BhaiPheru. The plant is equipped with a la mode(p) equipment and technology, specialized workers scientists and professionals who assure reference at e re anyy level of production process. Chaudhry Dairies limited is one of those who imbibe entered the dairy farm industry of Pakistan and turn over posed serious threats to well established firms standardised Nestle. The name of Chaudhry Dairies limited wa s changed to Haleeb Foods Limited with effect from February, 2004.Candia is a product of CDL, which was launched in 1999. Candia is a French b solidifying and it is processed and packed under and accredited in CDL. Candia already is a real popular leaf blade in Europe and other 52 countries. Now it is also available in Pakistans major cities under CDL distri hardlyion channels. CDL invested around 200 million rupees to launch Candia in Pakistan step to the fore of which 10 to 15 million were spent on its advertizements as it was launched early during the World Cup of 1999.Candia is Europes Number One interchange take out. CDL Foods Limited and Candia of France sire joined hands to bring the commonwealth proudest quality take out. For the depression time in Pakistan, CDL Foods Limited has introduced d tender packed in food grade p conk outic bottlefuls. These bottles argon manufactured from imported materials at CDL Foods latest plant. They ensure longer shelf life, fu ll(prenominal)est quality and stor vanquishride with relieve of hold.SWOT AnalysisStrengthsThe Major strength of Candia is the product itself beca subroutine there is no other product with such uniqueness in the grocery.Thickness It is lots(prenominal) caramelized take out in its nature.Convenience It is in a bottle charm so it is easier to open. Just take the lid off and pour milk.WeaknessesTheir product is ignoring female taste Mostly, Men use to drink thick milk as compargond to Women.The colouration of the milk was yellowish and then do the consumers backward to buy.There is no unravelning advancement. Only Niche markets crossed to serve the deals of N.W.F.P and Punjab. unison plays a vital role in marketing of any product. harmonise to one research in 70% ads, it is music, which attracts the attention of audience. The ads for Candia did not have any music or melody in them.OpportunitiesBig mart is there because 77% of the market sh be is yet to be captured.Thr eatsHaleeb bottle milk is its biggest threat since there will be a bottomlandnibalizing side in the market.Tetra Pack is the biggest threat for CANDIA because it is the only bottled natural product in Pakistan.Reasons Why Candia Milk Failed In PakistanAccording to research, it was noticed that there are scene of actions of weaknesses in the market efforts of Candia. Candia has not buildn the result which was expected of it.It launched the whole ad expense in the beginning and it only paid in for the first three months. After that, the bargain of Candia milk has been falling and it is forcing the company to get down on its forward motional expenses. Following are the major factors of its strokePOOR ADVERTISING AND MARKETING CAMPAIGNCandia milk failed to do a proper advertisement and marketing campaign. There was hardly any on air advertisement and no other medium for advertisement was utilise let alone marketing.COLOR AND TASTEThe in-chief(postnominal) attributes that Cand ia lacks are color and taste of the milk. The color is not purely white due to which upsurge begin to think that the milk is not pure and hygienic.AGE crowdCandia does not cover all ages of group. It fails to cover all age groups. It targets the age group of 6-12. state over this age barrier Youth and old pot, they are not targeted. The young people aged 20-34 have a tall purchasing power. However, they do not prefer Candia or any other packaged milk and prefer fresh milk.PRICING some other area of weakness is the pricing system use for Candia. Its price was higher(prenominal) than the other notes available in Pakistan. This did not allow Candia to penetrate the market effectively.PACKAGINGPackaging is the the most heavy factor contributing to dark taste and coloring of the milk. Even though it has a USP forwarding but if expose in the sunlight, the milk is discolored.BRANDINGThe name Candia was relatively uncharted to the people of Pakistan and umpteen position it w as some kind of understructuredy or something of that sort. They were and still not aware(predicate)(predicate) of the original Candia, which was so popular in Europe and other 52 countries around the world. The brand has flavor of milks kinda than just plain milk.DEPTHAnother major reason for the bankruptcy of Candia is that the company has not been able to increase the depth of their product since open its flavors, colors, sizes, and overall variety. These innovations are necessary tocreate a keen image of the brand in the mind of the consumer.INCENTIVESNo incentive or discounts are offered to the consumers. No bulk discounts are given either. The competitors however, follow this practice. CDL is also not providing abstruse freezers and fridges to big retail outlets and departmental stores of Candia. Due to this, there are many areas where Candia milk is not performing well, especially in areas of their target markets. Candia milk targets the high-income person living in f orce backing areas, which has dramatically reduced its sale. investigate MaterialThe concept of packaged milk has grown over the last decade and is getting increasingly popular. The questionnaire that we floated adamants this as 62% of the people say they consumed packaged milk whereas 38% did not.One of the main reasons for the increased trend, as depicted by our questionnaire was the peoples concern for hygiene. A large percentage, nearly 46% of the people said they consumed packaged milk since they thought it was much much hygienic. About 20% ought for it based on its convenience, 15% as per the testimonial of their family/friends and 18% because of its longer shelf life.According to our questionnaire, 40% of the people mean that they consider high-priced milk brands to be deceiving and do not carry out their quality criterion. 23% perceived such a brand to be of higher quality, 29% were in varied and a negligible 8% thought they would see it as targeting a specific market s egment.About 36% of the people said that a tune or a noise could single-handedly be the most important factor in making them notice or recall an advertisement. 16% said that the theme of the ad would be that important factor, whereas the duration, frequency, and endorser scored 20%, 18%, and 10% respectively.5. As per the stats that we received from our questionnaire, 49% of the people believe that the color of the milk itself affects their purchasing decision. Whereas 38% disagree with this and a mere 13% were not bad-temperedly sure on either one of thee.Upon asking, what sort of packaging did the consumers best-loved to buy the milk in, to half 54% of the people said they pet it in a bottle. The remaining favored otherwise, meaning they favorite(a) the packaging to be either in a pouch or a tetra pack. The percentages were 16% and 30% respectively.A high percentage of the consumers, 35%, errand the mutation in flavors offered in a milk brand to affect their buy habits of consuming a particular milk brand. Whereas 26% said that, the catchiness of the advertisements itself increases their chances of choosing milk brand. Apart from that, a relatively similar amount of consumers were affected by the popularity, type and pricing of the milk brand.The medium of advertisement that the consumers thought dependent them the most again, had more or less the same percentages. However, 39% of the people said that, it was not just one medium of promotion but it was instead the amalgamation of all these means together, the combined advertisement with all these mediums that caught their attention the most. The mediums being Television, Magazines, Radio, Social media and Signboards.In accordance with the claimive information that we gathered from the questionnaire, Candia as a milk brand is seen/recalled by 39% of the people as a brand that was not supportd a lot let alone highly advertised. About 15% of the people think of it as being highly priced, 13% as pop ular, 15% as targeting a target market, and 18% as a brand impart high quality.10. A fairly high amount of the people recommended that Candia ought to use a much more catchy theme, along with a minute jingle, something that clicks the minds of the people and rest in their heads. They also proposed that Candia should advertise its brand much more than it already does so that the people are more aware of the brand. Apart from that, they projected the possibility of success of Candia if they targeted not just the youngsters or a specific target market but a mass market instead.Changing Consumers PerceptionConsumers come across many products unremarkable but do not al routes remember them all. The ones they recall are usually the ones they have experienced or just the ones they are exposed to.There are some products to which they get exposed in such a way that the memory of that product stays with them. Such products have attributes like flashy packaging or something unusual. Other such factors include the way the product is promoted, how it is advertised, and who endorses it. The medium used for advertising plays an important part in the learning and memory of a consumer concerning a particular product. The frequency of a television ad might be more than a impress ad or a billboard and that television ads incorporate the consciousness of wad and hearing. It is seen that most consumers over time associate the product with a jingle or melody used in the ad as it seems to be repetitive and catchy in nature. The slogan, Candia All-purpose milk The best for your family shows that the company is trying to position the brand as having a high quality in the consumers mind and right for everyone in the family, also interpret a change of lifestyle.This indicates that Candia has now employed a more obstreperous promotional approach and is trying to be more persuasive and displaying a new brand nature and attitude.Candia has looked at similar factors in its re-la unch as previously it was lackinga musical television ad thence not engrossing the consumers in the ad itself. Its new ad has a very catchy tune and triggers the happy mood. In addition, the way the advertisement is shot is quite opposite from its competitors that exist in the market. They typically show how the milk is processed and tested or simply show a family using milk forming a story ad. According to the survey, Candia is recalled as a lowly promoted milk brand, therefore Candia has now engrossed in dark promotional activities to persuade the consumers. Also the fact that how the ad would be shown, at what times and at what frequency has been looked at by the company as it plays a vital role. Too much repetition of the ad bunks to vex the viewers so keeping that in mind it shall not be repeated at short intervals instead it would be aired at the peak times at which people watch television. Furthermore the billboards along the road are put up in such a way that art objec t driving or passing by that area it comes within the threshold and is easily viewed by everyone who passes by.While advertising it is important to keep in mind to somehow involve the consumers and trigger their afferent receptors immediately to capture their attention. Candia in its ad has make the same, the melody used in it immediately grabs attention and also the innovativeness in the ad, the concept of get motion used in the ad is interesting and visually sympathetic and makes sure that the viewer watches till the end as it seems to be touch on seeing a bottle of milk moving on its own. Companies tend to use more than one sensory appeal and the most important in a television ad are both sight and hearing as in the Candia ad. Thus, this can be counted as a competitive advantage for the company.Until this date, the consumers tend to remember Candia as the first milk brand in Pakistan that was launched in a plastic bottle. Keeping that in mind, while re-launching, Candia used this and changed the shape of the bottle a bit, so that it stays at the differential threshold level. According to the survey, 54% of the people preferred to buy milk in a bottle with a handle, thus Candia made the changes required.Candia Consumer Related FactorsCandia was introduced in Pakistan in 1999, and although, when launched, it had high expectations attached, it failed to deliver. If it were to be re-launched, Candia would have to change its overall perception in the minds of the consumer. Factors like Self-Concept, Self Esteem, disposition and Life style of the consumer and overall consumer attitude do have an jar on the sales of a certain product. Hence, Candia should concentre on these concepts to find out their consumers in a better way and to make their product more appealing to the consumer mind.Self Concept- The term self-concept is a general term used to refer to how someone thinks slightly or perceives him or herself. The self-concept is how we think most an d quantify ourselves. To be aware of oneself is to have a concept of oneself. The self-concept is a very complex structure. We describe attributes of self-concept along with dimensions such as content, positivity, intensity, and constancy over time and accuracy. In the discipline of consumer behavior, people derive their finger of self at least partially from the goods and operate they consume. Through the using up of the symbols contained in products, consumers attempt to enhance their self-concepts by using products to communicate particular personal characteristics to themselves and others.When it was first launched, Candia mainly emphasised the younger generation. If it were to be re-launched now, it should target people of all ages. They should present themselves in a way that everyone can associate himself or herself with Candia. Nestle is a brand that was very favored in doing so. It should highlight how it is healthy, because a major portion of the market is kids and they should focus on attracting the mothers and focusing on how the consumption of Candia is good for their kids can do that.Self Esteem- The term self esteem refers to the positivity of a persons self-concept. People with low self-esteem feel that they will not perform very well, and they would try to avoid embarrassment, failure, or rejection.If Candia were to re-launch it would have to plan its strategies out in such a way that the consumers feel that consuming Candia would be good for their image. When asked in a questionnaire whether the color of the milk was of any relevance to the consumer a majority of 49 % said yes. This affected the self-esteem of the consumer as they matt-up that the milk that they were consuming as not pure/ healthy. Candia should plan their strategies out in a way that people would feel good or so consuming it and feel that they made the right decision in choosing Candia as a brand.Personality- Each person has personality characteristics that influence his or her purchasing behavior. By personality, we mean a set of distinguishing human psychological traits that backsheesh to relatively consistent and enduring responses to environmental stimuli. Personality is often describe in terms of such traits as self-confidence, dominance, autonomy, deference, sociability, defensiveness, and adaptability. Personality can be useful variable in analyzing consumer brand choices.The idea is that brands also have personalities, and consumers are likely to choose brands whose personalities match their own. We define brand personality as the specific mix of human traits that may be attributed to a particular brand.1. Sincerity (down-to-earth, honest, wholesome, and cheerful)2. Excitement (daring, spirited, imaginative, and up-to-date.)3. Competence (reliable, intelligent, and successful)4. Sophistication (upper-class and charming)5. Ruggedness (outdoorsy and tough)Candia should go for the personality attributes of Sincerity and Competence. As t he brand would be targeting the mass, the consumers should feel that what they are consuming is good for them and the brand would give good value.Lifestyles- Lifestyles defines a human body of consumption and reflects a persons choices on how to spend his/her time and money. In an stinting sense your lifestyle represents the way to elect to allocate income.Candia should strategize in a way that the consumer feels that they are able to meet high standards of quality and suffer their perceived lifestyles within the disposable income that they have.Consumer Attitude- An attitude is a predisposition to evaluate an object or product positively or negatively. We form attitudes towards products and services that often determine whether we will purchase them or not.The scheme that Candia should larn should focus on it being a safe brand. The consumer should think of it as a brand that would deliver value and is able to meet high standards of Quality. Candia was criticized for not using very effective promotions. This resulted in the consumers forming a very negative attitude about the brand. They should focus on their promotions and they need to go on consistency among their promotional messages.Gaining Competitive Edge over CompetitorsConcentrate on the consumers and try to take their physical and emotional desires.Introduce a big range of products that can be consumed by all age groups. distort to figure the economic, geographic and social factors which affect the diets of the consumers and try to concentrate on the nutritional and health value of the products.Also in the long run concentrate on the lower-income consumers and make their products available at affordable prices while providing a diet compensating the local dietary deficiencies and including relevant nutrition.Try to understand the motivations, routines, decision making and purchasing habits of the nodes by spending time with the peopleHas to become a more market oriented company to understan d the customer or market needs and produce products accordingly to happen upon the organizations goals.Should try to create a brand name as vehement as A Nestle brand name on a product is a promise to the customer that it is safe to consume, that it complies with all regulations and that it meets high standards of qualityCandia can try to be at the forefront of maturation new customer- centric health products and align their researches accordingly with consumer and business needs.Should use promotion as one of the major sources to reach their customers to make them aware of the different products introduced in the market and the value of the products introduced.Candia should take after a promotion mix with a perfect blend of several different promotion tools to promote the value of its product and make the customers aware of their different products.Advertisements should be attractive through all the possible media. Internet is one of the latest media and should be used by Candi a to promote their products, where they have different websites hosted for different products. Different strategies for each product like online disputations and distribution.Through public traffic Candia can try to bring to the attention of all the customers and organizations concerned about the various issues or concerns and the current approach they are taking towards these concerns.Candia should adopt a favorable marketing channel, which is most appropriate for the consumers.They should try to focus on speciality strategy. They differentiate their products with their competitors by giving them better customer satisfaction and quality with in an acceptable price limit. They reduce the attempt of complexity of supply chain and lower attractiveness for discounters to follow this differentiation strategyIn addition, Candia moldiness maintain a good customer relationship according to the taste and demand of the emerging market.Corrective Actions To Be Taken By The CompanyBuyer be havior and readinessCandias market share was declining and there was a need to make a take policy to strengthen the brand and this can only be done through promotion mix to make an image in the minds of the people. denote strategyDuring summers, as the milk production declines because of low supply of raw milk from dairy farms, the supply decreases, which increases the demand for packaged milk, it was recommended that the instruction should emphasize on a Pull strategy as Candia now may be used as an alternative product. Advertisements, print media, electric media campaign, etc.must be used for the heavy promotion of the product.Sales promotion strategyDuring winters, push strategy was recommended by giving incentives to the consumers because the milk supply is good and the competition is intense.Personal selling toolsEmotions- sales force should target the emotions of parents and persuade them to select Candia as drinking milk for their kids.Direct marketing toolsIt was strongly recommended that Haleeb foods must have an effective web presence in this interactive world. To promote the entire site, an online marketing program was launched. A comprehensive, highly targeted group of speech web sites was chosen for the program. The web site was registered with yahoo search inlet and a number of tactical elements helped drive online awareness and inquiries into the program ingrained CommunicationOver the years, organizations have now started understanding the importance of midland communication in achieving corporate goals and objectives. We strongly believed that by implementing the above-mentioned strategies the management has been capable of enhancing corporate profitability create a resounding brand name of Candia.Positioning strategyCandia has a current positioning strategy that Candia milk is mostly meant for drinking purposes. It is firmly believed that the management has modified the product positioning and has positioned it as being a multipurpose m ilk brand that can be consumed by all age groups.Promotion strategyFollowing ways were adopted for the promotion of Candia that was helpful for the improvement of the sale of CandiaTelevisionTelevision played an important role for the promotion of Candia a marketing budget was spent on the ad on different TV channels for the promotion of that product.NewspapersHaleeb Foods advertised Candia Milk in all reputed daily newspapers like Jung, Dawn, Din, Nawa-e-Waqat, The Nation etc.Sign BoardsSign boards and billboards can also play a vital role in the promotion of Candia. Neon Candia signs can be easilynoticed by the eye and must be displayed on most eye-catching locations in the cities.