Marketing Project On Candia Milk Pakistan As A Failed Product 65n2q

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

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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%.

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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 nutrition’s 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 3

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.

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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.

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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 6

social

standing. However,

the image utility of Candia varies

considerably depending on different consumer’s perception.

THE DYNAMIC MARKETING ENVIRONMENT FOR CANDIA As we know that the successful marketing depends largely on company’s 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 Candia’s 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 Candia’s 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, 7

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 Candia’s sales because Candia is not much distributed in rural areas. Similarly the people’s 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 ing through a stage of recession but it is hoped that it will enter the recovery stage soon, which will be favorable for company’s long term pricing objectives.

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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

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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 Technological break through have a tremendous effect on the life style, consumption patterns and behavior patterns of the people.

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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 comprehensive market survey was conducted in which people from

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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 consumer’s 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 As concerns a geographic segmentation, CDL has segmented its potential market in all the four provinces simultaneously which is

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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 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 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 Candia’s target market. •

On the basis of social class, Candia has segmented the

market considering only upper and upper middle class. •

Candia has also segmented the market on the basis of

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

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•

As regards education, there is not segmentation basis

applies as it appeals to bit of common sense.

3.

Behavioral Segmentation In 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 to heavy .

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. •

As a segmentation basis by location

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•

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.

•

Co’s 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 .

•

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

TARGET MARKET STRATEGY The target markets should be compatible with the organization’s 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.

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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.

.

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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

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significantly different from the Tetra Pak milk already available in the market. Candia is the only milk which is sterilized after packing.

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2.

BUSINESS ANALYSIS In business analysis, CDL had gone into the details of 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.

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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.

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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 Candia’s 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

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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

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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

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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.

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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.

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

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3.

Sign Boards Sign boards and billboards are also playing an important role in the promotion of Candia. Candia’s 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 s is called a pull strategy. CDL has used pull strategy to promote Candia because the

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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.

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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 Candia’s brand manager Candia has captured Milk Pak’s 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).

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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.

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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 don’t 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 company’s product line by introducing low cholesterol Candia skimmed milk to

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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.

MENT 44% consumers think that company has d 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.

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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 ed 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

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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.

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•

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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 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 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.

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•

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 Pakistan’s 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.

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•

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.

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•

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 fridge’s 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.

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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, Candia’s Sales have declined drastically. The figures taken from the two well known stores in defense society Lahore depicts the situation.

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