Submitted By: Zafar Iqbal

Reg. ID: 2183185

CHANGE STORY OF CANDIA MILK

Candia is a product of CDL (Chaudhary Dairy Limited) 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.

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

MARKETING STRATEGIES UNDERTAKEN FOR LAUNCHING “CANDIA”

Lease features of marketing orientation strategy adopted by CDL includes:

1. The product launch was preceded by market research and need identification.

2. Pull strategy was adopted because market potential was already identified since UHT

(Ultra-High Temp) sales were increasing.

3. The product was made by keeping in the view the customer needs 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.
REASONS OF FAILURE OF CANDIA MILK IN PAKISTAN

After the 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 these
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 feedback gathers from
around seventy users of Candia and twenty retail stores which keep Candia, We evaluated
several key failure points which are listed below.

 The foremost important attribute where Candia behind is the taste and color of milk. The
color of milk. The colour is not purely white and therefore people suspect 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 forged. Youth and the
elderly people are not targeted. Young people age between 20-34 have the highest
purchasing power.

 Candia has failed to persuade the health conscious people, who mostly belong to their target
market of higher income groups. They perceive the milk very thick abd 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.

 Instead of plastic Cap, Foil is used on the mouth of the bottle as a seal wrapping.

 The Labeling does not include much information about the milk only the fat percentage is
mentioned.

 Another major reason of failure of Candia is that, since its launched, the company has not
been able to increase the depth of the product such as flavors, colours, sizes and varieties.
These innovations are necessary in building the image of brand into the minds of
consumers.
 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

 Chaudhary dairy Limited has never tried to adapt the strategy so 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 there Candia’s sales
have declined drastically.

Candia is in declining stage, where the company has cut down its cost on its promotion. The only
customers left are the loyal ones. The company at this over whelming stage is required to change
its overall strategy for Candia.