COMSATS

INSITUTE OF IT-WAH

IMC PLAN FOR CANDIA

BBA-08

GROUP MEMBERS

Asadullah Zeerak Hassan Ahmad Shaima Aqeel Yasir Islam Siddiqui

Date of Submission: June 8, 2011

IMC plan for Candia Milk

Importance of Planning:
Would you ever get on board an airplane knowing that it had not been checked over carefully that flying conditions had not been reviewed and that the flight path to your destination had not been clearly charted? So why do so many companies put their corporate life on the line by failing to do the same sort of planning for their business? The development of a 12-18 month integrated marketing communications (IMC) plan ensures that a company invests time analyzing their market position, objectives and sales plans. It means taking a step back and viewing their business from the customer s perspective a critically important thing to do in the ever-changing, complex business environment that most of us compete in. The preparation and effective implementation of a well-conceived IMC plan will dramatically increase your company s chances of having a successful year.

Encourages consideration of new marketing tactics and media.

Allows the firm to be better prepared for the changes occurring in market and in firm. Helps build teamwork, commitment, esprit de corps and share-of-mind. Assists in determining priorities and timelines. Allows development of proactive initiatives instead of reactive responses. Improves internal and external communications. Tells what type of resources needs to be devoted to what areas. Helps gain consensus and buy in to the firms marketing objectives, strategies and tactics. Enables to demonstrate to the sales organization all of the support they will have to help them accomplish their objectives. Helps improve corporate productivity because management is more focused, and path is clearly charted for the year.

Integrated marketing communications plan Development outline

Analysis Phase A. Description of Company B. In-depth Review of Products 1.Description/Applications 2.Features/Functions/Benefits 3.Positioning in market 4.Share of market 5.Unique selling propositions 6.Level of awareness 7.Pricing/Discounts C. Market Review 1.Description 2.Size 3.Trends 4.Secondary research available on market 5.Brand loyalty D. Distribution Channel 1.Description (captive sales personnel, reps, distributors, dealers, etc.)

E. SWOT Analysis 1.Strengths 2.Weaknesses 3.Opportunities 4.Threats F. Competitors 1.Company profiles. -Position -Share of market Plan objectivity Phase -Sales objectives -Awareness & profitability objectives Creativity Phase -Strategies -Tools Budgeting

Corporate profile- Haleeb Foods Introduction:

Haleeb Foods Limited (formerly CDL Foods Limited) is a fast growing food products company. Having doubled its turnover in the last four years, the company has a turnover of more than Rs.4 billion presently. The company also operates as a franchise of Candia Cedilac of France. CDL has a state of the art milk processing facility situated at 62-KM Multan road, Near Bhai Pheru, and has a team of 400 exceptional individuals to support its operations. The head office of CDL is located in the evergreen city of Lahore at 135-Ferozepur Road. CDL is producing a number of food products both for consumers and industrial users.

 CDL is the first food company and so far the only dairy company in Pakistan to get ISO 9002 Certification - a Quality Management System. While adhering to this Quality Management System, the company is committed to strict quality standards in all its operations - from the collection of milk to the provision of hygienically processed nutritious products to its customers. The company follows the philosophy of "delighting the customers". The company treats them as partners and keep channel of communication open with them. The company has succeeded in this by continuously improving the quality of its products and by satisfying the needs of its customers. The company believes in creating and sustaining an environment, which encourages learning and empowerment and these in turn help strengthen the quality culture across the business. Company's Mission: Providing nutritious and hygienically processed food product to our customers. Enhancing our reputation for quality in all our operations. Promoting mutual trust with customers, suppliers, employees and shareholders. Providing a healthy and safe environment to our community.

Mission Statement
Build branded food business to improve quality of life by offering tasty, affordable and highly nutritional products to our consumers while maximizing stakeholders value.

Vision Statement
Most innovative and fastest growing food company offering products enjoyed in every home every day

Values Statement
Enterprise Empowerment Accountability Trust Teamwork

Products of Haleeb Foods

Dairy Queen:
Dairy Queen is the brand name of CDL's UHT milk. Dairy Queen is Pasteurized, Standardized, Homogenized and Ultra Heat Treated milk of the highest standards. Dairy Queen is standardized to 3.5% Butter Fats and 8.9% SNF (Solids Non Fat) as prescribed by Pakistan Pure Food Laws. Safe, Economical and Nourishing it is available in 1/2 Liter and 1/4 Liter packing for your convenience. Key Benefits

Guaranteed Clean/Bacteria Free Homogenized Standardized Economical

Good Day
Good Day, with its vibrant and exciting pack design, is the perfect refreshment for inhome consumption. It is a premium juice, superior in taste and exceptional in pulp contents, for the absolute taste of refreshing fruit juice. Key Benefits

Guaranteed Clean/Bacteria Free Pure Natural Juices No Sugar Added No Color Adds No Preservatives Added Aseptically Packed

Candia Milk
Candia is Europe's Number One selling milk. Haleeb Foods Limited and Candia of France have joined hands to bring to you highest quality milk. Candia is Pasteurized,

Homogenized, Standardized, Double Sterilized milk. This ensures not only the highest quality but also the best possible taste. For the first time in Pakistan, Haleeb Foods Limited has introduced milk packed in food grade plastic bottles. These bottles are manufactured at Haleeb Foods latest plant from imported materials and ensure longer shelf life, and highest quality and storage with ease of use. Key Benefits:

Guaranteed Clean/Bacteria Free Homogenized Standardized Toned to international standards

Haleeb Butter:
CDL Foods has recently launched another quality dairy product - Haleeb Butter. This product takes off from CDL Foods lasting commitment of providing consumers with only the best in wholesome and healthy food products of the highest international standards. Haleeb Butter is the best natural source of Vitamins A & D for kids of all ages. Available in 100g and 200g packs, Haleeb Butter is soon to be the most favorite butter brand in Pakistan due to its natural great taste. Key Benefits

Hygienically Processed Convenient packing Source for Vitamin A & D. Nourishing

 Haleeb Funday
Haleeb Funday is a delicious juice drink for kids, enriched with vitamins A, C, D3 and calcium. Haleeb Funday's unique and attractive names for kids, Aamonka (mango), Arrochee (peach and lychee mix), and their exciting tastes have made this new brand a preferred choice of kids. It has been launched in a unique Tetra Classic Aseptic packaging of 200ML. Key Benefits

Guaranteed Clean/Bacteria Free Rich in Vitamin A, C and D3 Aseptically Packed

Haleeb Cream
Haleeb cream is made from good quality fresh milk. The process of making cream from milk is highly hygienic and ensures healthy product. It is available all around the country in 200 ml Tetra Brick packing. Key Benefits

Hygienically Processed Convenient packing 40% fats Great for coffee and cakes. Long life Nourishing

 Haleeb Plain yogurt:

Haleeb Plain Yogurt is distinctly superior and primed to the highest international standards, only Haleeb Plain Yogurt is made from the thickest milk, giving the consumers unmatched quality, freshness & taste in every delightful spoonful. Haleeb Plain Yogurt makes every meal delightful, every time. Primary packaging of 475 gm/cup with Freshness Seal & transparent lid. Key Benefits

New Packing for easy Opening and Storage Clean and healthy Nearest to nature Hygienically processed

Tropico Fruit Juices:

With the quality assurance of CDL, comes Tropico, a premium juice drink, superior in taste and exceptional in pulp contents, for the absolute taste of refreshing, invigorating fruit juice drink. Available in smart 200 ml slim pack and 1000ml Tetra Brick (Mango and Mango/Orange Flavors). Tropico is the perfect thirst quenching refreshment for all occasions. Available in four exciting flavors, Tropico is always alive in taste and full on fruition. Four Delightful Tropico Fruit Juices. Tropico Apple Juice Rich in taste, for the fullest flavor of truly ripened fresh apples. Tropico Mango Juice The savory taste of rich and pulpy mangoes. Tropico Mango Orange Juice A unique blend of oranges and mangoes perfected for the most discerning of palates. Tropico Mix Fruit Juice A unique blend of Oranges, Apple and Mango. A real tasty treat.

Tea MIX:
Keeping with CDLs tradition of introducing quality & affordability CDL has introduced yet another quality product. Tea Max is the most innovative product in the market in many respects for tea and coffee lovers. It is the creamiest dairy whitener in the country. Its packaging is the most innovative too. Key Benefits Hygienically Processed Convenient packing Great for coffee and Tea. Long life Nourishing

Candia SkimZ:
Haleeb Foods Limited, one of the leading manufacturers and prompters of dairy products in Pakistan, have diversified their product portfolio by launching liquid skimmed milk in the Pakistani market in June 1999. The product, marketed under the brand name "Candia SkimZ", has been produced by CDL in collaboration with Candia of France. Key Benefits Low fat & low diet formula Suitable for weight conscious people and heart patients Prevents physical deterioration as Osteoporosis

SkimZ Powder:
Skimz is a fat-free milk powder. Being fat-free, it is naturally low in cholesterol, yet, it is high in proteins and calcium.

There are mainly two types of milk powders, full cream and skimmed. SKIMZ is a skimmed milk powder. Full cream powder contains 28% fat, whereas SKIMZ contains less than 1% fat. Also the protein and calcium content is higher in SKIMZ as compared to full cream milk powder. It is best suited for weight conscious people as well as those trying to maintain low cholesterol. Key Benefits 1% Fat only Rich in Calcium Rich in Proteins Ideal for Weight Watchers and Heart Patients

Nrish:
N'rish, instant full cream milk powder, gives you the complete nourishment of fresh milk without the water. N'rish contains more fat, loads of calcium for stronger bones, teeth and vitamins A, B and D, which are essential for the physical and mental growth of your child. With CDL's high quality manufacturing facility, the hygiene concerns related to fresh milk cease to exit. We make sure that the milk you get is 100% hygienic. With all this and more, N'rish is available for a little less than even fresh milk. The new BIOACTIVE 4 formulation helps your child Grow with Insulin, Vitamin A & D and GlucoFructose. Key Benefits High Nourishment Clean and pure Convenient Vitamin A & D Insulin Fructose

 Asli Desi Ghee:

CDL's brand assures you quality and pure Asli Desi Ghee (Butter Oil). It is processed naturally using fresh and pure cream. Thats why we call it Asli Desi Ghee. Key Benefits New Packing for easy Opening and Storage Reusable tin with Plastic Lid Clean and healthy Nearest to nature Hygienically processed

Bulk Products:
CDL also produces bulk dairy products. Bulk Products Available: Instant Full Cream milk powder (IFCMP) Full Cream Milk Powder, Skimmed Milk Powder, Instant Skimmed Milk Powder (ISMP) Cream, and Ghee Butter.

Product Introduction:
Candia is Europe's Number One selling milk. Haleeb Foods Limited and Candia of France have joined hands to bring highest quality milk to their customers. Candia is Pasteurized, Homogenized, and Standardized, Double Sterilized milk. This ensures not only the highest quality but also the best possible taste. For the first time in Pakistan, Haleeb Foods Limited has introduced milk packed in food grade plastic bottles. These bottles are manufactured at Haleeb Foods latest plant from imported materials and ensure longer shelf life, and highest quality and storage with ease of use.

History of Candia:
Since 1971, Candia's history has been bound up with that of milk. It all started with the regrouping of the regional milk co-operatives. The birth of Candia then marked the beginning of an unprecedented growth dynamic similar to that created several years earlier with Yoplait, in the Without leaving its roots behind or denying its origins, Candia took the consumer milk market into another age. Modernization of collection, increased production capacities, industrialization of structures, cutting edge technology, all constituted an initiative that enabled Candia to obtain ISO

9002 certification in 1993. Since 1997, Candia and its manufacturers have been involved in a quality initiative certified by the AFAQ, entitled "The Milk Route". For the first time, it guarantees the quality and traceability of milk, from the farm to the finished product. At the same time, Candia has adapted to distribution trends. Specialist sales teams ensure optimum brand presence in respect of buying groups as well as in the field. Always on the alert, the merchandising department is increasing its studies in order to regularly define precise recommendations for produce placement. In 2000, the new in-store merchandising concept in Milk Supply in the EEA] was awarded the title of "Mtre d'Or" by the French Merchandising Institute. In order to satisfy customer expectations even further, Candia has made creativity its battle cry. Each to its Candia! The brand is continuing with its marketing strategy which aims to eliminate the banal and this has become its hallmark. The result, a real relationship of trust has been created between Candia and its public. With its continuing policy of innovation developed at the [International research centre]), combined with products which are of a quality which complies with international standards, the company, still the market leader, is now exporting its savoir-faire to lots of other countries. Since 1990, Candia has continued to expand internationally by means of European subsidiaries, franchising and exports to the rest of the world. Sales for 2003: 899 million euros. 1.43 billion liters of milk sold, including 11% for exports the leading European milk brand, Candia the drinking milk market leader in France. Candia's markets share in France: 19.3% in volume and 24.7% in value. Although it is the French drinking milks market leader, Candia is implementing an active expansion policy abroad. Candia is already acknowledged as the leading European milk brand. Candia is, in particular, expanding its market share in Western Europe, Central Europe, and the Middle East and in French overseas territories. Candia currently sells 203 Million liters of drinking milk, milky drinks, butter and UHT cream in over fifty countries.

Positioning in Market: Only drinking milk available in the market.

Doubled processed UHT treated package milk

Share of Market: According to their brand manager, Candia has a 5% market share.

Market review
The processed fluid milk is the sterilized long life Ultra Heat Treated (UHT) and short life Pasteurized milk. The processed milk is sold in 250 ml, 500 ml, and 1.0-litre packages. These packages are mainly tetra pack, sachet and pouches. The total volume of milk sold is about 0.139 million tons per year or about 0.5% of total fluid milk consumption. The milk is consumed mainly in urban centers of Lahore, Rawalpindi, Islamabad, Peshawar, Multan, Faisalabad, Hyderabad and Karachi. The packaged milk market is estimated at 200 million litres valuing over Rs 6 billion. The industry has been growing at a robust rate of 20 per cent during the last four years. The packaged milk market is dominated by M/s Nestle (Milkpak Brand) and Chaudhry Dairies Limited (Haleeb Brand) with market share of 44 per cent and 39 per cent respectively. Other brands include Halla by Idara-e-Kissan with a market share of 5 per cent, Candia 4 per cent and Dairy Queen 4 per cent. The 250 ml pack size enjoys the highest volume share with over 49 per cent followed by the 500 ml pack with a market share of 24 per cent.

Market trend

Unique selling Proposition: Only drinking milk available in the market in bottle packing.
Doubled processed UHT treated package milk. Candia charges 1 Rs less then any other existing dairy brands in the market.

Level of Awareness:
Level of awareness is 95% of the total target market.

Target market:
Candia has targeted northern areas, tribal people and other adjacent areas. Basically Candia has targeted well off people from the above-mentioned areas.

Pricing/discounts: Candia charges 1 Rs less then any other existing diary brand in the
market in order to penetrate into a competitive market, so that they can capture a handsome market share.

Brand loyalty:
Candias brand loyalty has been developed in northern areas and there are a number of brand loyal customers in these areas.

SWOT Analysis:
Strengths: Only drinking milk available in the market in a bottle packing.

 Doubled processed UHT treated package milk. Candia charges 1 Rs less then any other existing diary brand in the market. Guaranteed clean/bacteria free. Homogenized Easy open pack First diary firm getting ISO-9002 Weaknesses: The skim of the milk at time settles at the bottom of the bottle, which causes much trouble to the customers, and it also has a tasteless impression. Opportunities: Due to the ever-increasing importance of a health living, more & more people are buying packaged food items. Government is also backing the tetra pack eatables industry, which is a good sign for dairy industry to flourish. Threats: Candia has a minimum market share as compare to the other strategic business units (SBU) so there is an internal threat from brands like Haleeb, Skimz and Nrish. There is also an internal threat to Candia in the form of competitive external environment.

PROMOTIONAL BUDGET: The management has set a promotional budget of 20 Million for the year
2005-06. 50 to 60 % of the total budget is allocated to advertising option, which mainly consists of electronic media in the form of TV advertisement. 30 to 35 % of the total budget is consumed in placing outdoor hoardings and billboard.

Competitive analysis: The packaged milk market is dominated by Nestle (Milkpak Brand) with
the market share of 44%. Halla by Idara-e-Kissan with a market share of 5 per cent,

Proposed plan objectivity:

The basic aim of our IMC team was to provide haleeb foods management with an objectivity, which relates to sales, awareness and profitability.

Sales objectivity:
Increase sales 10%in fiscal year.

Awareness objectivity:
To enhance the product awareness among the potential markets.

Profitability objectivity:
To increase the overall profit margin by effectively communicating and implementing the marketing strategies.

Promotional mix Strategies:

Promotional mix strategy revolves around the following areas. Advertising Sales promotion

 Personal selling Direct marketing Public relation

Push V/s Pull Strategies: Both strategies will be followed.

Buyer behavior and readiness Candias market share is declining and there is a need is to make a come back policy to strengthen the brand and this can only be done through promotion mix to make an image in the minds of the people.

Selective Media V/s Mass Media: We will use mass media due to our large target audience. Advertising strategy:
During summers, as the milk production declines because of low supply of raw milk from dairy farms; the supply decreases, which increases the demand for, packaged milk, it is recommended that the management should emphasize on Pull strategy as Candia now may be used as an alternative product. Advertisements, billboards, print media, electric media campaign, etc.

Sales promotion strategy:

During winters, push strategy is recommended by giving incentives to the consumers because the milk supply is good and the competition is intense.

Advertising tools:
TV Advertisements. Billboards. Newspaper advertising

 Neon signs at school, colleges & offices cafeteria Flag banners at shopping mall The college competition invites food technology students to develop new products using dairy ingredients. This popular competition gives students' valuable experience while building dairy brand loyalty and application knowledge early in the students' careers. Sports stadium- hitting board prize. Wobblers. Bus designing advertisement. Audio/visual aids.

Sales promotion tools: Sales presentations

Sales support programs Cross selling providing a free tea sachet or custard sachet with every purchase of 1 liter Candia. Awarding two days family trip to PC Bhurban to that retailer or whole seller who reports largest sales. Candia must launch prize scheme in which prizes will be awarded whenever a printed gift item gets disclose behind the bottle cap. Patronage award

Personal selling tools: Emotions- sales force will exploit the emotions of parents and persuade
them to select Candia as drinking milk for their kids.

Direct marketing tools:

It is strongly recommended that Haleeb foods must a effective web presence in this interactive world .To promote the entire site, an online marketing program must be launched. A comprehensive, highly targeted group of destination web sites must be chosen for the program. The web site should be registered with yahoo search portal. And a number of tactical elements will help drive online awareness and inquiries into the program including:

Online webinars Online newsletters Banner advertising Search engine registration Web site links Content marketing and licensing Opt-in email Specialized promotions and partnerships

Public Relations tools:

A public relations campaign must be undertaken. This robust program includes: Media tours Monthly press releases Media briefs By-lined articles and supplements Speaker placements A comprehensive dairy curriculum must be created and sent to major universities with food science programs to make it easy for

professors to acquaint their students with the importance of packaged dairy products with special reference to Candia. Celebrity presence- a top model will be shown on TV and billboards advertisements drinking Candia to show a healthy living.

Internal Communications:
Over the years, organizations have now started understanding the importance of internal communication in achieving corporate goals and objectives. Our IMC team has identified some of the internal communication irregularities. Information about the inflow of raw milk for the purpose of processing takes too much time because of excessive interference by the management. The packaged milk supply is irregular in some areas for the reason that market demand and supply information is not effective. Due to the above-mentioned reason, some of the processed milk is wasted thus enhancing costs, which in turn creates a harm effect on corporate overall profitability ratio. Training must be introduced in order to decrease the hazardous effects of irregular or ineffective internal communication system. Reporting relationships must be clearly identified Who reports to whom? We strongly believe that by implementing the above-mentioned strategies the management will be mighty capable of enhancing corporate profitability, create a resounding brand name of Candia.

 Positioning strategy: Candia has a current positioning strategy that Candia milk is mostly meant for drinking purposes. Our IMC team firmly believes that the management has to somehow modify the product positioning. Before proceeding, our IMC team believes that the management should also carry this positing strategy of using Candia as a drinking milk as supported by the product slogan ghata ghat. We suggest that the product must also be presented as a dairy commodity that may be use for tea users as there is a large tea user market. The product must be communicated among the consumers as milk that is highly suitable for the purpose of making desserts, milk shakes, sweet dishes and other dairy made products. The promotion must be designed in such a fashion that consumers start buying Candia for other than drinking purposes.

Packaging strategy:
Our marketing team has identified from the market trend that consumers tend to buy more of the quarter liter (250ml) pack and the recent trend shows that 49% of the total sale of packaged milk include the selling of 250 ml pack of milk as compared to 24% of 1000 ml pack and 26% of the 500 ml pack. Candia is not available in 250ml pack that now seems to be very vital reason for its low market share. Keeping in mind the above mentioned fact it is strongly recommended that Candia must be introduced with 250ml packing that may be developed in paper packing.

 When it comes to drinking or any other purposes consumers tend to buy 250ml pack of milk and it is more convenient to handle. This strategy will surely add to the brand value of Candia as the need for 250ml pack is more purchased by the consumers.

Budgeting:
Advertising in news paper Number of news paper 3 Name of newspaper Jung Nawa-e-waqat Dawn Cost/ Sunday/news paper 17500 for 1 year .17500*52*3= Rs 273000(2.7 M) Advertisement in TV No of TV channels.3 Name of channels PTV Geo TV ARY digital Cost/week/channel40000*52*3= Rs 624000(6.24 M) Billboards Number of billboards. ...15

Cost.. 15*4*60000= Rs 360000(3.6 M) Buses advertisement Number of buses..10 Designing cost Rs225000 Total cost 225000*10= Rs 2250000 (2.25 M) Percentage of Promotion Mix Total promotional budget..20 Million Rupees Advertising.. 60% Sales Promotion.. 20% Direct Marketing. 5% Personal Selling.. 5% Public Relations10%