Reasons Of Failure Of Candia Milk In Pakistan 414b5x

CANDIA MILK 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 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 supplers 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.

MARKETING STRATEGIES UNDERTAKEN FOR LAUNCHING “CANDIA” 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 the view the customer 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.

REASONS OF FAILURE OF CANDIA MILK IN PAKISTAN After the conducting the whole reasearch, 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 thoes results which 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 company to cut its expenditure on promotions. On the basis of feed back gatheres from around seventy s 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 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 abd 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. Candia has failed to persude the health concious people, who mostly belongs 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. 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 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 includes much information about the milk only the fat percentage are mentioned. Another major reason of faolure of candia is that , since its 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 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.

Candia is in declining stage, where the company has cutted 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.