Candia Milk: Extension Strategy and SWOT

Keywords: swot candia dairy, marketing research cdl, cdl expansion strategy. Candia is Europe's NUMBER 1 selling milk. The business has its head office in. . .

CDL (Chaudhry Dairy Limited) is one of the reputable and renowned companies in Pakistan. CDL was established in 1984 as an exclusive limited company. The business came up with its first product Haleeb Dairy´ and continued to develop its products. In 1988, CDL released 'Haleeb Cream´ which was not only launched straight for consumer market but also supplied to many ice cream factories where it was used as a center ingredient. The business has its hq in Lahore and a place located 65-km from Lahore in BhaiPheru. The herb is equipped with latest equipment and technology, professional workers researchers and pros who assure quality at every degree of development process. Chaudhry Dairies limited is one of those who have got into the dairy industry of Pakistan and also have posed serious threats to well established firms like Nestle. The name of Chaudhry Dairies limited was changed to Haleeb Foods Small with result from February, 2004.

Candia is a product of CDL, that was launched in 1999. Candia is a French brand and it is processed and crammed under and certified in CDL. Candia already is a very popular brand in European countries and other 52 countries. Now it is also available in Pakistan's major towns under CDL distribution channels. CDL invested around 200 million rupees to release Candia in Pakistan out of which 10 to 15 million were allocated to its adverts as it premiered early through the World Glass of 1999.

Candia is Europe's Number One selling milk. CDL Foods Small and Candia of France have became a member of hands to bring the people finest quality milk. For the very first time in Pakistan, CDL Foods Small has introduced milk crammed in food quality plastic bottles. These bottles are produced from imported materials at CDL Foods latest seed. They ensure much longer shelf life, finest quality and storage with ease of use.

SWOT Analysis

Strengths

The Major strength of Candia is the merchandise itself since there is no other product with such uniqueness on the market.

Thickness: It really is more caramelized dairy in its aspect.

Convenience: It is in a bottle shape so it is better to open. Simply take the lid off and put milk.

Weaknesses

Their product is disregarding female taste; Generally, Men use to drink solid milk as compared to Women.

The color of the milk was yellowish thus making the consumers hesitant to buy.

There is no running advertising. Only Niche marketplaces targeted to provide the likes of N. W. F. P and Punjab.

Music performs a essential role in marketing of any product. Relating to 1 research in 70% ads, it is music, which appeals to the interest of audience. The advertising for Candia didn't have any music or melody in them.

Opportunities

Big Market will there be because 77% of the marketplace show is yet to be captured.

Threats

Haleeb bottle dairy is its biggest danger since you will see a cannibalizing situation in the market.

Tetra Pack is the largest risk for CANDIA since it is really the only bottled natural product in Pakistan.

Reasons Why Candia Milk Failed In Pakistan

According to research, it was pointed out that there are areas of weaknesses in the market initiatives of Candia. Candia hasn't shown the result which was expected of it. It launched the complete advertisement expense in the beginning and it only paid in for the first 90 days. From then on, the sale of Candia milk has been falling and it is forcing the company to lessen its promotional bills. Following are the major factors of its inability:

POOR MARKETING AND ADVERTISING CAMPAIGN

Candia milk failed to execute a proper ad and advertising campaign. There was almost no on air advertising campaign and no other medium for advertising campaign was used aside from marketing.

COLOR AND TASTE

The important characteristics that Candia lacks are color and flavour of the milk. The colour is not solely white credited to which people commence to think that the milk is not pure and hygienic.

AGE GROUP

Candia will not cover all age groups of group. It does not cover all age ranges. It targets this group of 6-12. People over this era barrier; Junior and seniors, they aren't targeted. The teenagers aged 20-34 have a higher purchasing ability. However, they do not prefer Candia or any other packaged dairy and prefer fresh dairy.

PRICING

Another region of weakness is the charges strategy used for Candia. Its price was greater than the other brands available in Pakistan. This did not allow Candia to penetrate the market effectively.

PACKAGING

Packaging is the the main factor adding to bad flavour and coloring of the milk. Even though it has a USP product packaging but if uncovered in the sunlight, the milk is discolored.

BRANDING

The name Candia was relatively unidentified to the people of Pakistan and many thought it was some type of chocolate or something of this sort. These were and still not aware of the original Candia, which was so popular in Europe and other 52 countries about the world. The brand has taste of milks somewhat than just plain milk.

DEPTH

Another major reason for the failing of Candia is the fact that the company is not able to increase the depth of these product since releasing its tastes, colors, sizes, and overall variety. These enhancements are necessary tocreate a good image of the brand in your brain of the buyer.

INCENTIVES

No incentive or discounts can be found to the consumers. No mass discounts are given either. The opponents however, follow this practice. CDL is also not providing profound freezers and fridges to big retail outlets and departmental stores of Candia. Because of this, there a wide range of areas where Candia milk is not accomplishing well, especially in areas of their target markets. Candia milk targets the high-income person moving into pushing areas, which has significantly reduced its sales.

Research Material

The idea of 'packaged milk' has grown over the last decade and is getting increasingly popular. The questionnaire that people floated adamants this as 62% of the individuals said they used packaged milk whereas 38% did not.

One of the primary reasons for the increased tendency, as depicted by our questionnaire was the people's concern for hygiene. A big percentage, nearly 46% of individuals said they used packaged milk since they thought it was much more hygienic. About 20% ought for it predicated on its convenience, 15% as per the recommendation of the family/friends and 18% because of its longer shelf life.

According to our questionnaire, 40% of the people believe they consider high-priced milk brands to be deceiving, nor match their quality criterion. 23% identified such a brand to be of higher quality, 29% were indifferent and a negligible 8% thought they might view it as targeting a specific market section.

About 36% of the folks said a tune or a jingle could single-handedly be the main factor in making them notice or remember an advertisements. 16% said that the theme of the ad would be that important factor, whereas the duration, occurrence, and endorser scored 20%, 18%, and 10% respectively.

5. According to the stats that people received from our questionnaire, 49% of individuals believe that the colour of the dairy itself affects their buying decision. Whereas 38% disagree with this and a mere 13% were not specifically sure on each one of thee.

Upon asking, what type of packaging performed the consumers preferred to buy the milk in, to 50 percent; 54% of the individuals said they preferred it in a bottle. The remaining preferred otherwise, indicating they preferred the presentation 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 diversity in flavours offered in a milk brand to influence their buying habits of consuming a specific dairy brand. Whereas 26% said that, the catchiness of the advertising itself enhances their chances of choosing milk brand. Apart from that, a comparatively similar amount of consumers were influenced by the acceptance, type and rates of the dairy brand.

The medium of advertisement that the consumers thought hooked them the most again, experienced more or less the same percentages. However, 39% of the individuals said that, it was not merely one medium of promotion but it was instead the amalgamation of most these means collectively, the combined ad through all these mediums that captured their attention the most. The mediums being Television set, Magazines, Radio, Social media marketing and Signboards.

In accordance with the info that we gathered from the questionnaire, Candia as a milk brand is seen/recalled by 39% of individuals as a brand that was not promoted a lot aside from highly publicized. About 15% of individuals remember it as being highly costed, 13% as popular, 15% as concentrating on a marketplace, and 18% as a brand imparting high quality.

10. A fairly high amount of individuals advised that Candia ought to use a much more catchy theme, along with a nice jingle, something that clicks the brains of people and stays in their minds. They also suggested that Candia should advertise its brand a lot more than it already will so that the people tend to be aware of the brand. After that, they projected the probability of success of Candia if indeed they targeted not only the children or a particular marketplace but a mass market instead.

Changing Consumer's Perception

Consumers run into many products daily but do not necessarily remember them all. The ones they recall are usually the ones they have experienced or just those they face. There are some products to that they get exposed in such a way that the storage area of this product remains with them. Such products have characteristics like flashy packaging or something different. Other such factors are the way the merchandise is marketed, how it is publicized, and who endorses it. The medium used for advertising plays an important part in the learning and memory of the consumer concerning a particular product. The consistency of a tv ad might be more than a print out ad or a billboard which television ads incorporate the sense of perception and hearing. It is seen that most consumers as time passes associate the merchandise with a jingle or melody found in the advertisement as it seems to be recurring and catchy in nature. The slogan, "Candia - All-purpose dairy - The best for your family" demonstrates the company is trying to put the brand as having a high quality in the consumers head and right for everyone in the family, also depicting a change of lifestyle. This means that that Candia has now employed a far more aggressive promotional approach and is wanting to be more persuasive and showing a new brand personality and attitude.

Candia has looked at similar factors in its re-launch as previously it was lacking;a musical tv set ad thus not engrossing the consumers in the advertisement itself. Its new ad has a very catchy melody and triggers the "happy mood". Furthermore, what sort of advertisement is taken is quite not the same as its competitors which exist in the market. They typically show how the milk is refined and tested or just show a family using milk creating a story advertising. Based on the study, Candia is recalled as a lowly marketed milk brand, therefore Candia has engrossed in heavy promotional activities to persuade the consumers. Also the fact that the way the advertising would be shown, at what times and at what occurrence has been looked at by the business as it plays a vital role. Too much repetition of the advertising will annoy the viewers so keeping that at heart it shall not be repeated at brief intervals instead it might be aired at the peak times of which people watch television set. Furthermore the billboards along the road are placed up in such a way that while travelling or moving by that area it comes within the threshold and is also easily viewed by everyone who passes by.

While advertising it is important to keep in mind to somehow entail the consumers and cause their sensory receptors immediately to capture their attention. Candia in its advertising did the same, the melody found in it immediately grabs attention as well as the innovativeness in the advertisement, the idea of stop motion found in the ad is interesting and aesthetically appealing and makes sure that the viewer pieces till the end as it appears to be stimulating discovering a container of milk moving on its. Companies tend to use several sensory appeal and the most important in a television set ad are both view and hearing such as the Candia ad. Thus, this is counted as a competitive benefit for the company.

Until this date, the consumers tend to bear in mind Candia as the first dairy brand in Pakistan that premiered in a plastic container. Keeping that in mind, while re-launching, Candia used this and modified the shape of the container a bit, so that it keeps at the differential threshold level. According to the survey, 54% of people preferred to buy dairy in a bottle with a take care of, thus Candia made the changes required.

Candia & Consumer Related Factors

Candia was unveiled in Pakistan in 1999, and even though, when launched, it got high expectations attached, it didn't deliver. If it were to be re-launched, Candia would have to change its overall understanding in the brains of the buyer. Factors like Self-Concept, Self Esteem, Personality and Life style of the buyer and overall consumer frame of mind do have an impact on the sales of a certain product. Hence, Candia should focus on these concepts to comprehend their consumers in a much better way and to make their product more appealing to the buyer mind.

Self Concept- The term self-concept is a general term used to make reference to how someone considers or perceives him or herself. The self-concept is how exactly we think about and examine ourselves. To understand oneself is to have a idea of oneself. The self-concept is a very complex structure. We describe traits of self-concept along with dimensions such as content, positivity, level, and stability as time passes and accuracy. Within the willpower of consumer action, people derive their sense of personal at least partly from the goods and services they take in. Through the consumption of the symbols contained in products, consumers try to improve their self-concepts by using products to speak particular personal characteristics to themselves yet others.

When it was first launched, Candia mainly targeted the younger technology. If it were to be re-launched now, it should target people of all ages. They ought to present themselves in a manner that everyone can associate himself or herself with Candia. Nestle is a brand that was very successful in doing so. It should point out how it is healthy, because a major portion of the marketplace is kids plus they should give attention to attracting the mothers and focusing about how the intake of Candia is good for their kids can do this.

Self Esteem- The term self esteem identifies the positivity of a person's self-concept. People with low self-esteem feel that they will not perform perfectly, 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 believe that consuming Candia would be best for their image. When asked in a questionnaire whether the color of the milk was of any relevance to the consumer most 49 % said yes. This afflicted the self-esteem of the consumer as they experienced that the milk that they were eating as not natural/ healthy. Candia should plan their strategies out in ways that people would feel good about consuming it and feel that they made the right decision in choosing Candia as a brand.

Personality- Each person has personality characteristics that impact his or her buying habit. By personality, we signify a set of distinguishing human mental traits that lead to relatively steady and enduring reactions to environmental stimuli. Personality is often explained in terms of such attributes as self-confidence, dominance, autonomy, deference, sociability, defensiveness, and adaptability. Personality can be useful variable in analyzing consumer brand selections.

The idea is that brands also have personalities, and individuals are more likely to choose brands whose personalities match their own. We define brand personality as the specific mix of individuals traits which may be attributed to a specific brand.

1. Sincerity (down-to-earth, genuine, wholesome, and cheerful)

2. Enjoyment (daring, spirited, imaginative, and up-to-date. )

3. Competence (reliable, smart, and successful)

4. Sophistication (upper-class and charming)

5. Ruggedness (outdoorsy and tough)

Candia is going for the personality attributes of Sincerity and Competence. As the brand would be focusing on the mass, the consumers should believe that what they are eating is wonderful for them and the brand would give good value.

Lifestyles- Lifestyles identifies a structure of ingestion and reflects someone's choices about how to invest his/her time and money. In an economical sense your lifestyle represents the way to elect to allocate income.

Candia should strategize in a manner that the consumer feels they are in a position to meet high expectations of quality and fit their recognized standards of living within the disposable income that they have.

Consumer Attitude- An attitude is a predisposition to judge an subject or product favorably or negatively. We form attitudes towards products and services that often determine whether we will purchase them or not.

The strategy that Candia should choose should concentrate on it being truly a "safe" brand. The consumer should think of it as a brandname that would deliver value and is able to meet high standards of Quality. Candia was criticized for not using quite effective promotions. This led to the consumers creating a very bad attitude about the brand. They have to focus on their promotions and they need to keep up consistency amongst their promotional announcements.

Gaining Competitive Border over Competitors

Concentrate on the consumers and try to understand their physical and psychological desires.

Introduce an array of products that may be consumed by all age groups.

Try to understand the monetary, geographic and social factors which have an impact on the diets of the consumers and try to concentrate on the healthy and health value of the products.

Also in the long run focus on the lower-income consumers and make their products available at affordable prices while providing a diet compensating the neighborhood diet deficiencies and including relevant nutrition.

Try to comprehend the motivations, routines, decision making and purchasing behaviors of the clients by hanging out with the people

Has to become more market focused company to comprehend the client or market needs and produce products accordingly to attain the organizations goals.

Should make an effort to create a brand as strong as; "A Nestle brand on something is a offer to the client that it is safe to take, that this complies with all regulations which it fits high specifications of quality"

Candia can try to be at the forefront of developing new customer- centric health products and align their researches accordingly with consumer and business needs.

Should use campaign as one of the major sources to reach their customers to make sure they are aware of different products introduced on the market and the value of the merchandise introduced.

Candia should take up a promotion blend with a perfect blend of several different advertising tools to market the worthiness of its product and make the clients alert to their different products.

Advertisements should be attractive through all the possible advertising. Internet is one of the latest press and should be utilized by Candia to market their products, where they have different websites managed for different products. Different strategies for every product like online competitions and distribution.

Through public relations Candia can try to bring to the attention of all customers and organizations worried about the various issues or concerns and the existing 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 give attention to differentiation strategy. They identify their products with the competitors by giving them better customer satisfaction and quality with in an suitable price limit. They reduce the risk of complexity of source string and lower attractiveness for discounters to check out this differentiation strategy

In addition, Candia must maintain a good customer romance based on the flavour and demand of the appearing market.

Corrective Activities To BE STUDIED WITH THE Company

Buyer habit and readiness:

Candia's market share was declining and there was a need to produce a comeback coverage to strengthen the brand which can only be done through promotion mixture to make a graphic in the brains of people.

Advertising strategy:

During summers, as the dairy creation declines because of low supply of raw dairy from dairy products farms, the source decreases, which escalates the demand for packaged dairy, it was recommended that the management should stress on a Move strategy as Candia now may be used alternatively product. Advertisements, printing media, electric multimedia campaign, etc. must be used for the heavy campaign of the product.

Sales advertising strategy:

During winters, push strategy was advised by giving incentives to the consumers because the milk resource is good and the competition is intense.

Personal advertising tools:

Emotions- sales team should target the thoughts of parents and persuade them to choose Candia as having milk for their kids.

Direct marketing tools:

It was firmly recommended that Haleeb foods must have an effective web presence in this interactive world. To market the whole site, a web marketing program premiered. A comprehensive, highly targeted band of destination internet sites was chosen for this program. The web site was documented with yahoo search portal and lots of tactical elements helped drive online recognition and inquiries into the program

Internal Communication:

Over the years, organizations have now started understanding the importance of inside communication in obtaining corporate and business goals and targets. We strongly thought that by implementing the above-mentioned strategies the management has been with the capacity of enhancing corporate profitability; generate a resounding brand name of Candia.

Positioning strategy:

Candia has a current placement strategy that Candia dairy is mostly designed for drinking purposes. It really is firmly thought that the management has altered the product positioning and has located it to be a multipurpose dairy brand that can be used by all age groups.

Promotion strategy:

Following ways were implemented for the advertising of Candia that was helpful for the improvement of the deal of Candia

Television

Television enjoyed an important role for the advertising of Candia a marketing budget was allocated to the ad on different TV programs for the campaign of this product.

Newspapers

Haleeb Foods marketed Candia Milk in all reputed daily magazines like Jung, Dawn, Din, Nawa-e-Waqat, The Nation etc.

Sign Boards

Sign boards and billboards can also play a essential role in the campaign of Candia. Neon Candia signs can be easilynoticed by the attention and must be shown of all eye-catching locations in the metropolitan areas.

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