CORPORATE PROFILE OF CDL

CDL (Chaudhry Dairy Limited) is one of the reputable and renowned

company in Pakistan. CDL was established in 1984 as a private limited
company. The company came up with its first doing product Haleeb
Milk and later on it continued to expand its product line. In 1988, CDL
introduced Haleeb Cream which was not only launched directly for
consumer market but also supplied to many ice cream factories where it
was used as a core ingredient. The company has its head office in Lahore
and a plant is located 65-km from Lahore in Bhai Pheru. The plant is
equipped with latest equipment and technology, specialized workers
scientists and professionals who assures quality at every level of
production process.

The dairy industry in Pakistan is very competitive. There are large

number of players including multinational and local companies which
potrays an oligoplistic market structure without product differentiation.
In such an cumulative and challenging marketing environment the
strategic management of CDL has been able to maintain its dominant

image in the market. The company has already awarded ISO-9000 in

1997 for its strict quality control operational systems. Currently, the
plant is running with the capacity utilization rate of 90%.

CORPORATE MISSION
CDL has the prime corporate mission of achieving and maintaining high
quality. But in broader term its mission statement states the following;

Providing nutritions and hygienically processed food products to

our customers at competitive price.

Enhancing our reputation for quality in all our operations.

Promoting mutual trust with customers, suppliers, employees and

shareholders.

Providing a safe and healthy environment to our community.

PRODUCT LINE
The product line of CDL includes the following products;

Haleeb standardized milk

Haleeb cream

Asli Desi Ghee

Candia milk

Skimz liquid skimmed milk

Skimz skimmed milk powder

Candia drinking yogurt

CANDIA MILK
Candia is a product of CDL 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 is already a very popular brand in
Europe and other 52 countries.
Now it is available across Pakistan including all the major cities through
CDL distribution channels. It is very unique in its packing and features.
It is packed in plastic bottles of two different sizes, 0.5 litre and 1 litre.
The plastic it contains consists of three layers. The outer and inner layer
is white in color and compose of same formulation of high density
polyethylene. The middle layer is black in color which protects the milk
from heat and light. As far as the packaging is concern, Candia has no
competitor in local market.

CDL invested around 200 million rupees to launch Candia in Pakistan.

Out of which 10 15 million was only spent on the massive advertising
campaign carried out in world cup season at the time of launch.

PROCESSING
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 upto 8%. After that
the milk is transported to the factory for processing.

The processing of Candia milk undergoes through 6 different stages.

Firstly, fresh milk is pasteurized. Then it goes from the stage where it is
standardized and homogenized. After homogenization the milk is heated
at 140 oC, ultra high temperature (UHT) for about 4 seconds and then its
goes for aseptic packaging. After packaging milk is sterilized and send to
the channels of distribution. One bottle of Candia contains 3.5% of fat
and 8.9 SNF.

MARKETING STRATEGIES UNDERTAKEN

FOR LAUNCHING CANDIA
Marketing orientation strategy was adopted by CDL towards launching
Candia. In the marketing orientation stage company identify what
customers want and tailor all of the activities of the firm to satisfy those
needs as efficiently as possible.
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 High Temp) sales were increasing.

The product was made by keeping in view the customers need,

rather than producing it and then 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 the emotional or psychological value that a

person attached to the product or brand because of its reputation or

social standing. However, the image

utility of Candia varies

considerably depending on different consumers perception.

THE DYNAMIC MARKETING ENVIRONMENT

FOR CANDIA
As we know that the successful marketing depends largely on companys
ability to manage its marketing programs with in its environment. The
following macro and micro environmental factors played a considerable
role on CDL marketing opportunities and activities. The external macro
environmental factors which can influence on Candias sales are:

1.

Demographics
Demographics refers to the characteristics of human population,
size, its distribution and growth. The total population of Pakistan
is 140 million and it is growing at the rate of 2.5%.
There is more potential for Candias sales because the population
growth rate is favorable and increasing.

Changing gender roles is another demographic factor which refers

to the changing roles of males and females related to families,
buying patterns etc. The females in Pakistani society are now more
aware of brands. Their attitudes forward careers, shopping, and
products have entirely changed. If more and more women are
educated in the society. There is a likelihood that they become
more skeptical towards. Shopping especially for house hold items.
In addition to this more people are migrating from rural to urban
areas, which also favour Candias sales because Candia is not
much distributed in rural areas. Similarly the peoples attitude
towards fitness is perception gradually increasing which enhances
their to switch on milk consumption.

2.

Economic Conditions
The following economic conditions which can effect the marketing
activities for Candia are:

Business Cycle
The business cycle consists of four stages, prosperity, recession,
depression and recovery. Currently, the overall business industry
in Pakistan is passing through a stage of recession but it is hoped

that it will enter the recovery stage soon, which will be favorable
for companys long term pricing objectives.

Inflation
When Candia was launched, the inflation rte in the country was,
6.5% officially as compared to the last years inflation rate of 8.3%.

Competition
As far as the battled milk is concerned Candia has no competition
in the local market. But as the core product is concerned, there is a
substitute threat. Many other companies including multinational
are also fulfilling the demand for UHT milk.

3.

Socio / Culture Changes

Todays society is becoming more complex because our Socio
cultural patterns, life styles, values, beliefs are changing much
more quickly. Here are few changes in social and cultural forces
that

have

significant

marketing

implications

for

Candia.

Consumers awareness about UHT milk has increased so much as

result of massive advertising campaign carried out by Tetra Pak
association of Pakistan. People have changed their views about

fresh milk. They feel that fresh dairy milk is impure and
unhygienic, and it contains bacterias which causes infectious
diseases. Moreover, there is a popular notion among the mass
consumers that dairy milk contains high percentage of water as
compared to milk itself, which is a routine practice being
undertaken by the Ghawalas. So mostly the consumers
especially in urban areas are switching towards tetra Pak UHT
milk which is more hygienic and durable in use.

4.

Political / Legal Forces

The political and legal forces which effected CDL marketing
efforts for the launch of Candia were the environmental anti
pollution laws, according to which a company is prohibited to use
that plastic packaging which is not recyclable. Candia has a
special USP Packaging which is recyclable and environmental
friendly. Also the milk processing plant of Candia is located 65
kilometers out side the main city of Lahore near Bhai Pheru which
is a desirable step according to the requirements of the law to
avoid air pollution.

5.

Technology
10

Technological break through have a tremendous effect on the life

style, consumption patterns and behavior patterns of the people.
The technology introduced by CDL for Candia is plastic bottle
packaging which is also unique selling point because there is no
other local company providing such packaging. More over the
plastic which CDL is using is USP, packaging which is
internationally recognized frequently used by competing brands all
over the world.
communication of decision oriented information to be used in all phases
of the marketing process.
Candia also carried out a comprehensive marketing research program to
deal with the competitive pressure already exists in the market. The
sources of information used to conduct this market research includes the
following:

Internal company information

Dealers information

As regards the customers needs are concerned, both formal and informal
investigation methods were used. Regarding formal method, a

11

comprehensive market survey was conducted in which people from

different walks of life were interviewed personally and their responses
were collectively evaluated.
Telephonic and direct mail survey systems were totally ignored to get
feed back of consumers response.

TARGET MARKET FOR CANDIA

The market is a group of customers (people or organizations) for whom a
seller designs a particular marketing mix. The primary market which
CDL targeted before launching was specifically urban sector. Their was
no ultimate consumer as no age limitations were specified for the
product.

CONSUMER MARKET SEGMENTATION

CDL divided the total market into smaller segments with a prospect to
enhance effective acceptance and sales of the Candia. The following
segmentation basis were applied.

1.

Geographic Segmentation

12

As concerns a geographic segmentation, CDL has segmented its

potential market in all the four provinces simultaneously which is
further subdivided in key business centers located in these areas.
As far as the residing areas are concern CDL has specifically
segment its market in the urban sector.

2.

Demographic Segmentation
In terms of demographic segmentation, CDL has divided the
market. On the basis of income, family size and style:

The target consumers of Candia core high income people

with income regarding from Rs. 10,000 and above.

In terms of age, there is no segmentation undertaken by

CDL. As a product appeals all the age groups.

The segmentation basis by gender includes both male and

female for Candias target market.

On the basis of social class, Candia has segmented the

market considering only upper and upper middle class.

13

Candia has also segmented the market on the basis of family

life cycle, with a distinction between single and married
class.

As regards education, there is not segmentation basis applies

as it appeals to bit of common sense.

3.

Behavioral Segmentation
In terms of behavioral segmentation, CDL has divided the market
on the basis of benefit desires from the product and its usage rate.

As regards the benefits desired from the product, CDL has

segmented the market on the basis of quality and taste.

There is not segmentation basis undertaken by CDL as

regards the usage rate of the product, which ranges from non
user to heavy user.

BUSINESS MARKET SEGMENTATION

CDL has segmented the business market on the basis of customer
location and type. The Co has selected both single and multiple buying
sites.

14

As a segmentation basis by location

The Avg. business order unprocessed milk is considerable large in

size therefore, the company has segmented. The order size on the
basis of sales volume.

The company orders the unprocessed milk from the unorganized

dairy industry.

Cos can approach buy in different ways. Some companies have

their own purchasing department. In CDL, the decision of
purchase are normally undertaken by consulting all the purchase
staff members.

The purchase criteria is segmented strictly on the basis of quality.

TARGET MARKET STRATEGY

The target markets should be compatible with the organizations goals
and image and also consistent with definition of strategic planning.

CDL has adopted market aggregation strategy as a single segment. The

strategy used can also be called mass market strategy.

15

The management of CDL has developed on marketing mix and reach

most of the customer in the entire market. Candia is offered as a single
product for the mass audience. It has one pricing structure, one
distribution system and it uses single promotional program which also
aimed for the entire market.

16

MARKETING MIX DESIGNED FOR CANDIA

CDL designed a complete marketing mix for Candia which includes it
price, promotion, placement and product management.

1.

PRODUCT
A product may be a good, service, person or any idea. Candia is a
commodity which is offered to the consumers to fulfill their needs.
It is a processed milk which is treated with UHT technology. It is a
in liquid form, whit in color and packed in plastic bottles which
are available in two sizes.

Core Part
The core part of Candia milk is that, it is a complete food
supplement which includes all the vitamins, proteins and lactic
acid, which are needed for good health and vitality.

Classification
Candia milk is classified as a Convenience Good because
consumer can buy it any time with a minimum effort. The category
in which Candia falls in the Replacement Product because it is

17

significantly different from the Tetra Pak milk already available in

the market. Candia is the only milk which is sterilized after
packing.

18

2.

BUSINESS ANALYSIS
In business analysis, CDL had gone into the details of terms and
conditions of franchising. After one year negotiations, CDL was
permitted to produce Candia in Pakistan as a subsidiary company
of French Candia. The finances were arranged and the feasibility
reports were made which estimated the cost of the whole project
including manufacturing plant, patent, distributions etc. So the
whole program to develop the product in home country was
designed and analyzed.

3.

MARKET TESTS
Ad discussed in the earlier part of the report market tests for
Candia milk were being carried out in Lahore do test whether
people will actually going to buy it or not. In these tests, sale and
repeat buying behavior of the consumers was monitored.

4.

COMMERCIALIZATION
After having the successful results of test marketing, CDL finally
decided to start full scale production and developing market plans
for Candia. Candia was produced and first launched on 12 th April
1999 with a massive advertising campaign.
19

POSITIONING OF CANDIA
. The positioning strategy chosen for Candia milk was
Positioning is relative to a product class or attribute. The attribute on
which CDL has positioned Candia taste. Candia has a very different
taste among all the available branches in the market, that is whey it is
primarily positioned on its distinctive taste is the result of the process of
sterilization.

PRODUCT LIFE CYCLE

Management of CDL is aware of the fact that every product has its own
life cycle and product is to be treated accordingly, depending on the
particular life cycle stage. The product life cycle goes through four
different stages. There are introduction stage, growth stage, maturity
stage and decline stage.
Candia was introduced 8 months back. It has successfully crossed its
introduction stage and according to the management of CDL, Candia has
now entered into growth stage where it experiences the target of market
acceptance, higher sales and higher profits. The company is managing
the growth stage by using the strategy of market penetration.

20

BRANDING OF PACKAGING STRATEGIES

Branding and packaging are the two actual parts of the product. Brand
name identifies the product,, it makes shopping easier and ensure the
quality to differentiate the product from competitors. The brand name of
the product here is Candia. It is the separate name used for the product
without using the corporate name which is CDL. Although the branding
is under corporate name (CDL) but CDL is not used combined with
brand name. Among the five levels of brand familiarity, Candia is at the
Brand Recognition level. People recognizes the brand and every body
knows about its existence.

As far as the packaging is concerned, CDL is following family

packaging strategy, in which the bottles of Candia are placed in one
container. Packaging includes all the details about the product. In
Candias case, the primary packaging is the plastic bottle of white color
with a lid on its opening. This primary packaging is used to protect the
milk from heat and light. This plastic bottle is the USP Packaging which
is save and environmental friendly. The secondary packaging for Candia

21

consists of 12 bottle pack which is wrapped in a card board box covered

with plastic sheet.

LABELING
Labeling consists of all the information about brand, brand mark, name
of company ingredients, expiry date an instructions. Labeling is
considered as a part of packaging to give full details regarding the
product. Labeling of Candia includes a picture which shows, a morning
time at a form and milk in written also in a very attractive manner.

PRICING STRATEGIES AND OBJECTIVES

The pricing objective which CDL selected for Candia was purely profit
oriented. And the rationale was to achieve the target return. The target
return could be away specified percentage return on the sales on Candia
milk. The company has concealed all its profit and sales figures because
it is a private limited company and do not disclose its annual reports to
general public.

Regarding pricing strategies, CDL chosen Market Penetration Policy

for Candia. Following this strategy, the price of Candia is kept, low in

22

relation to the target markets range of expected prices. The aim of using
this strategy is to penetrate the mass market immediately and to increase
the total sales volume.

DISCOUNTS
Currently there are no discounts offered for consumers and wholesalers.
The every discounts offered were the trade discounts, which were given
to retailers at the time of launch of Candia.

As regards the geographic pricing strategy is concerned, Candia is

following a Uniformed Delivered Pricing strategy, which is to charge
same price to all retailers around the country. Moreover One Pricing
Strategy is also being adopted which enables consumers to purchase
Candia at one price, no matter how much quantity he / she buys. The
following table shows the existing prices for Candia.

Bottle Size

1 Liter (1 bottle)

12 Liter (12 bottles)

Trade price

Rs. 28

Rs. 336

Retail

Rs. 30

Rs. 360

Bottle size

0.5 Liter (1 bottle)

6 Liter (12 bottles)

Trade price

Rs. 14

Rs. 168

23

Retail

Rs. 15

Rs. 180

As concerned to the basic price setting approach, Candia adopted

Customer Base Pricing which means that the price of Candia is
according to the purchasing power of customer. Since the target market
belong to higher income group, so it means that price is higher than
other brands.

24

DISTRIBUTION STRATEGIES
The chained of distribution adopted for Candia is:

Company

Distributor

Retailer

Customer

The rationale behind selecting this kind of a distribution channel was

that, if serves large number of retailers spread all over the country who
paid it economical and feasible. The company has only one warehouse
situated in Bhai Pheru from where this distribution takes place. CDL has
appointed 35 distributors all over Pakistan for effective and on time
availability of Candia. This distribution is said to be an Intensive
Distribution where CDL is trying to deliver its product to every retail
outlet in urban areas.

25

PROMOTIONAL MIX
Candia is a new product, so the objective is to aware and inform people
about its distinctive features. The promotional mix for Candia includes,
advertising, sales promotions and public relations.

ADVERTISING
Advertising gives the feel of the product. It is an impersonal
communication that the sponsor has paid for and in which the sponsor is
clearly identified. Candia is advertised through different channels.

1.

Television
Television has contributed lot in the promotion of Candia. At the
time of launch, CDL invested around Rs. 10 15 million one
television ads. Their ad is of 12 second duration which appears
quite oftenlty on both of the local channels.

2.

Newspapers
CDL has advertise Candia milk in all reputed news papers of the
country like, Nation, Dawn, The News and Daily Jang.

26

3.

Sign Boards
Sign boards and billboards are also playing an important role in
the promotion of Candia. Candias neon signs can also be observed
on some of the eye catching locations of the city.

SALES PROMOTION ACTIVITIES

There is demand stimulating activities designed to supplement
advertising. The major sales promotion activity carried out for Candia
was sponsorship is typically viewed as a long range image building
activity.

PUBLIC RELATIONS
CDL has also carried out public relationing to build a favorable image
for an organization. The management developed good public relations
with the players of Pakistan relations with the players of Pakistan
Cricket team by giving them cash prizes through out the cricket world
cup 1999.

PROMOTIONAL STRATEGY
A promotional program directed primarily at end users is called a pull
strategy. CDL has used pull strategy to promote Candia because the

27

market potential was already identified since UHT (Ultra High

Temperature). Sales were increasing. According to brand manager of
CDL pull strategy is effective to bring Candia bottles on the shelves of
stores. The margins given to retailers are 6.5% and to distributors are 9%
which are slightly higher than other UHT processed milks available in
the market.

28

CUSTOMER FEED BACK

No doubt Candia has no competitive product in the market, as it is

bottled milk. But still their exists an immense competition in this market.
According to the Candias brand manager Candia has captured Milk
Paks market share. Quite contrary to this are the consumer responses.
Consumers have shown dissatisfaction in various regards. A short
analysis is an evidence of that.

QUALITY
29% of the consumers are satisfied with present quality of the product.
Majority (i.e. 71%) of customers are not satisfied with the present
quality of Candia milk. The most important factor pointed out by (61%)
of the consumers is the taste of milk. Dissatisfaction regarding the taste
of the product might be due to the production process. 4.3% of the
customers think that using a plastic bottle can not be hygienic. Exposure
to sunlight and heat has resulted in some disorders like color of the milk
darkens and the taste changes. 26% complaints about color. Candia has a
unique color. Sampled consumers were not satisfied with color of the
milk. Consumers perceived the cream color as the result of some
29

chemicals added to the product. 8.6% of the consumers therefore

suspected the purity of the product. 8.6% of the consumers had some
additional complaints which are as follows:
1.

product lacks freshness

2.

Improved packaging

3.

Cannot be used in tea or coffee

BRANDING
52% of the consumers are satisfied with current branding of the product.
47% have objected to the branding by the company. 78% of the
consumers are not comfortable with the name of the product because
1.

Its not distinctive

2.

It does not suggests something about the product, particularly its

benefits and uses.

3.

It lacks in presentation i.e. packaging in respect of colors and

design (22% showed dissatisfaction regarding name of the
product).

30

PRODUCT SIZES
65% of the consumers are satisfied with 1 and 0.5 liter bottles. 35%
consumers would also like following sizes added to the current available
sizes.
1.

2 liters

2.

3 liters

3.

5 liters

PACKAGING
53% of the consumers are satisfied with current plastic packaging. 47%
customers think that packaging needs improvement. Out of which 18%
of the consumers think that packaging of the product is deceptive. 27%
of the consumers feel that plastic packaging is not feasible. Use of
recycled material is a weakness considered by 9% of the consumers.
46% of the consumers have detected following weaknesses.
1.

Lid of the bottle, i.e. once the bottle is opened it has to be

immediately used. Other wise produce deteriorates.

2.

Durability of the packaging material. Light and heat do effect

contents of the product.

31

Out of 47% of the consumers dissatisfied with packaging 80% have

suggested paper packaging and the rest suggested glass packaging.

PRICE
37% of the consumers think that product is rightly priced. 63% of the
consumers are satisfied with the current price of the product out of
which 90% of that price of the product should be less than Rs.30.
Actually customers perceive that product is overpriced. Customers dont
consider value added benefits for which company (CDL) should charge a
higher or equal price.,

TARGET AGE GROUP

28% of the consumers think that Candia appeals to every age group. But
82% feels that product appeals not only to children but adults as well.
Low fat content especially should be more attractive to people at the age
of 20 and above.

PRODUCT LINE ENHANCEMENT

82% of the consumers think that company should enhance its companys
product line by introducing low cholesterol Candia skimmed milk to

32

attract middle aged and above bracket. 18% thinks that enhancing
product line will only result in higher cost.

BRAND AWARENESS
47% consumers think that there is enough brand awareness among the
people. This is the effect of the massive advertising campaign by the
company carried cut during Cricket World Cup 99. However 53% still
believe that there is not enough brand awareness. Out of which 60% of
the consumers suggest that company should not only increase shelf
spacing of its product but should also increase the number of outlets in
urban as well as in rural areas. 40% suggested free sampling can be a
good way to increase brand awareness.

ADVERTISEMENT
44% consumers think that company has advertised much to promote is
product and 66% feel that company lacks in advertising front. Majority
(67%) of consumers stressed on broadcasting and print advertising. 33%
are of the view that company should have neon signs and billboards in
target areas.

33

VALUE ADDED INGREDIENTS

53% consumers think that company should have price discounts element
in their sales promotion. Price ahs surely been one of the most important
concerns among consumers. Therefore, it might prove to be a good sales
promotional strategy. Gift vouchers although highly unorthodox, still
29% consumers supported the idea. In addition following suggestions
regarding sales promotion have been provided by the rest of the
consumers.

Lucky draws

Buy four get one free

Short term price cuts

Price discount as well as gift vouchers

UNIQUE SELLING POINT

78% consumers suggest that company should have a certification of
Quality Management by an intentionally reputed institution related to its
product and 22% consumers think that company should have elegance in
its product name and packaging. These consumers think that for this
34

product, unique selling point would be its packaging which is different

from any other milk in local dairy scenario. Therefore, company should
work hard on this aspect to improve its sales.

35

36

REASONS FOR FAILURE

After conducting the whole research, we have been able to point out
obtain areas of weakness in the marketing efforts of Candia. Because of
these gaps and flaws, Candia has not shown those results which were
expected at the time. Its launch the whole advertising campaign carried
out in the beginning paid only in the first three months. After that the
sales drastically fell down which forced the company to cut its
expenditure on promotions. On the basis of feed back gathered from
around seventy users of Candia and twenty retail stores which keeps
Candia, we evaluated several key failure points which are listed below.

The foremost important attribute where Candia behind is the taste

and colour of milk. The colour 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
has been able to stimulate demand the age group of 6 - 12 youth
and the elderly people are not forgeted. Youth and the elderly
people are not targeted. Young people age between 20 34 have
the highest purchasing power, elderly one the other hand do not
37

prefer Candia or any other packaged milk. They rather go for fresh
milk.

Candia has failed to persuade the health conscious people, who

mostly belongs to their target market of higher income groups.
They perceive the milk very thick and hence switch to other low
fat milk available in the market.

Another area of weakness is the pricing strategy used for Candia.

Its 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 to penetrate in the market.

Regarding packaging of Candia, the plastic used in thick as

compared to the foreign plastic bottled milk available in the
market. This plastic used is not approved by any of he
associations. While the plastic used in the bottles of original
French Candia is FDA approved.

38

Packaging is the only factor contributing to bad taste and colour of

milk. Although it is a USP packaging but if once it is exposed to
sunlight the milk gets discolored.

Instead of plastic cap. Foil is used on the mouth of the bottle as a

seal wrapping. If seal is teared off for use it remained unclosed
allowing air to enter into the battle which further reduces the life
of the milk.

Coming to the branding of the product, the name Candia, to most

of the Pakistans means more like a name of some Candy. This is
because people are not aware of the original European Candia
which is popular is 52 counties around the world. The brand name
is suitable more for a flavored milk rather than a plain milk.

The labeling does not includes much information about the milk
only the fat contents is percentage are mentioned which is not
enough to inform a customer about the other important nutrients
contains in the milk.

39

The packaging is deceptive in the sense that it is of white colour

while the milk if not pure white. The bottle should be transparent
so that the exact colour of the milk is visible.

Another major reason of or failure of Candia is that, since its is

launched, the company has not been able to increase the depth of
the product such as, flavours, colours, sizes and varieties. These
innovations are necessary in building the image of brand in to the
minds of consumes.

Candia did not conduct any free sampling at the time it was
introduce.

The retailers complaint that there major in the sale of Candia is 6

6.5% which should increase. Similarly the sales are low which
results in low turn over for retailers. So, retailers are not happy to
accept huge quantities to place in stores.

There is no incentive or discount offered to retailers and end

consumers. Moreover, there is no bulk discounts like, buy 12, one
free. This practice is normally followed by other competitors.

40

CDL has never tried to adopt the strategy of seasonal price cuts,
which could enhance sales and also could help the company to
monitor the changing buying patterns of customers.

There is no enough brand awareness persist in the society for

Candia. That is why company is paying handsome amount of
money to limited retailers for keeping Candia bottles on the main
shelves where customers can easily watch them.

The other major failure is that CDL is not providing deep freezer
and fridges to big retailer outlets and departmental stores for
Candia.

Not been able to target remote areas, small town and northern
areas of Pakistan where there is lot of demand for tea.

The management at CDL is very much optimistic about the

product life cycle of Candia. They assume that Candia has
successful reached to growth stage but in reality, it is not the case.
The present PLC situation of Candia is something like this.

41

Candia is in declining stage, where the company has cutted down its cost
on its promotions. The only customers left are the loyal ones. The
company at this over whelming stage is required to change its overall
strategy for Candia.
There are certain other important areas where Candia has failed to
perform well. One of the major reason of its failure is that one part the
market which is targeted i.e. higher income groups living in posh areas,
even their, Candias Sales have declined drastically. The figures taken
from the two well known stores in defense society Lahore depicts the
situation.

42

43