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Reasons of Failure of Candia Milk in Pakistan

Reasons of Failure of Candia Milk in Pakistan

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Published by Muneeb Sikander

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Published by: Muneeb Sikander on Apr 16, 2012
Copyright:Attribution Non-commercial


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Candia is a product of CDL( Chaudary Dairy Limitted) which was launched first time on april 12, 1999.Candia is basically a french brand and it is processed and packed under licensed by CDL. Candia isalready a very popular brand in Europe and other 52 countries.
The method of collection of milk for candia is through the approved supplers who maintain cattle inaccordance to the prescribed standards, then the milk is tested in laboratory by conducting 8 differenttests. The milk is received in the chiller containers and heated upto 8%. After that the milk is transportedto the factory for processing.
Lease features of marketing orientation strategy adopted by CDL includes:
The product launch was preceded by market research and need identification
Pull strategy was adopted because market potential was already identified since UHT (Ultra HighTemp) sales were increasing.
The product was made by keeping in the view the customer need rather than producing it andthen trying and push sales as in a selling strategy.For the want satisfying ability of the product, the company specifically aims at image utility which is theemotional or psychological value that a person attached to the product or brand because of itsreputation or social standing.
After the conducting the whole reasearch, we have been able to point out obtain areas of weakness inthe marketing efforts of Candia. Because of these gaps and flaws, Candia has not shown thoes resultswhich were
expected at the time. It’s launch the whole advertising campaign carried out in the begning
paid only in the first three months . After that the sales drastically fell down which forced the companyto cut its expenditure on promotions. On the basis of feed back gatheres from around seventy users of Candia and twenty retail stores which keeps candia, We evaluated several key failure points which arelisted below.
The foremost important attribute where Candia behind is the taste and colour of milk. Thecolour of milk. The colour is not purely white and therefore people suspect it is not pure andfresh.
Secondly, Candia has failed to target all the age groups. The milk has been able to stimulatedemand the age group of 6-12 youth abd the elderly people are not forgeted. Youth and theelderly people are not targeted. Young people age between 20-34 have the highest purchasingpower.
Candia has failed to persude the health concious people, who mostly belongs to their targetmarket of higher income groups. They perceive the milk very thick abd hence switch to otherlow fat milk available in the market.
Another Area of weakness is the pricing strategy used for candia. It’s Price is higher than Other
Brands in the market. One time candia is following “Market Penetration Strategy” and at the
same time the prices are kept higher than other brands, which does not allow Candia topenetrate in the market.
Regarding Packaging of Candia, the plastic used in thick as compared to the foreign plasticbottled milk available in the market.
Instead of plastic Cap, Foil is used on the mouth of the bottle as a seal wrapping.
The Labeling does not includes much information about the milk only the fat percentage arementioned.
Another major reason of faolure of candia is that , since its launched, the company has not beenable to increase the depth of the product such as flavours, colours,sizes and varieties. Theseinnovations are necessary in building the image of brand into the minds of consuers.
Candia did not conduct any free sampling at the time it was introduced.
There is no incentive or discount offered to retailers and end consumers
Chaudary dairy Limitted has never tried to adapt the strategy os seasonal price cuts.
Not been able to target remote areas, small towns and northern areas of pakistan.
Candia targeted the Higher Income groups living in posh areas even their , Candia’s sales have
declined drastically.

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