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CDL (Chaudary Dairy Limited) is preparing to re-launch its pure milk brand Happy Milk that will replace its current brand Haleeb Milk. Despite the dominance of Milk Leader Nestle, we can compete because this time our product will offer a unique combination of Quality and design with comparatively low price. We are targeting the specific segments of business markets but almost all segments of consumer market, taking advantage of opportunities indicating by the higher demand of Tetra milk. In developing countries like Pakistan depending on the level of the dairy industry, products range from a few indigenous dairy products and raw milk to pasteurized liquid milk and a small proportion of other LUXURY products. Thus liquid milk is still the most important base for developing the dairy industry in developing countries. Pakistan has become the worlds No.11th milk producing country, so it is also rich in dairy with output in the year 2008-2009 (marketing year ending March 2009) forecasted at 28 million tonnes. In the Pakistan context of poverty and malnutrition, milk has a special role to play for its many nutritional advantages as well as providing supplementary income to some 25 million farmers in over 500,00 remote villages. After liberalization Pakistani market is open to wide competition in both consumer market, Business market as well as industrial market. Industrial buying process is influenced by so many factors. Before purchasing raw materials they conduct an intense discussion and buying process passes through different stages and finally adopt suitable one. Consumers consider many factors like quality service, price availability of materials etc while purchasing the raw materials therefore it can be conclude that Happy Milk is such a brand which will enter in customers daily life. The primary objective is to achieve first-6 months Pakistani market share of 25 percent with the total unit sales of 1.9 Million. The primary financial objectives are to achieve first year sales revenue of 3.5 million, keep first-year losses to less than 1.5 million
MARKET DESCRIPTION
Happy Milk Market will consist of consumer and business Markets who prefer to use hygienic, fresh, tasty and quality pure Milk. Specific segments will be targeted during the first year Including Kids, Students, Persons aging 25 and more. Hotels, Marriage Halls, Clubs. The Following Table addresses the needs of targeted consumer and business segments. Happy Milk Purchasers can choose between products of other Milk Companies Like Nestle (Milk Pak, Every Day), Royal Dairies (Milk Flow), Engro Foods pvt. Ltd ( Olpers), Shakarganj(Good Milk) And Loose Milk Shops CDL is equipping its product with Exclusively New International Transparent packing with Holding Facility and offering same price rates which will appeal to consumers. Target Segment Customer Needs Corresponding Benefits. Pasteurized, Homogenized KIDS (Consumer Market) A complete Diet. For Quick Growth. and Double Sterilized milk. Toned milk that is processed through UHT (Ultra Heat Treated) treatment/. STUDENTS (Consumer Markets) People aging Above 25 (Consumer Market) Hygienic and Fresh Milk
Instantly provide Calcium (mg), Iron (mg), Sodium (mg) and Vitamins A,B2,and C.
Milk that can remain fresh for days and full with nutrition and Vitamins and tasty.
Special Large size International Packaging. Skimmed and Pasteurized, Homogenized double sterilized Milk.
Product Review.
Our product Happy Milk will Contain the Following Features. y y y y y Will include an exclusively unique transparent package with a holding feature, firstly introduced by CDL. Two glasses of Happy Milk will fulfill the 20% Iron, 41% Calcium, 18% Vitamin A and 20% Vitamin C of your daily requirements as per Nutritional Reference Values It will be a Complete Diet Will be available in Different size packs Recommended for everyone above age of 4.
First 6 months sales revenue are projected to be 3.5 Million, Based on sales of 1.9 Million Units.
COMPETITIVE REVIEW
Nestle
Milkpak
Tetra Pak
1L,0.5L,0.25L
Olpers,
Tetra Pak
1L,0.5L,300ml
20%
Royal Dairies
Milk Flow
Tetra Pak
1L,0.5L
11%
Shakarganj
Good Milk
Tetra Pak
1L,0.5L,0.25L
9%
The price of Happy Milk is relatively lower than all the competitor brands but higher than the price of loose milk. Powder milk is also consumed heavily and all the companies are facing stiff competition with each other. The concept of purchasing milk from milk men in our country is high because people prefer to buy because they think that tetra packs cost is relatively high and the quality of milk in tetra pack is not as fresh as milk men milk. Company name Product Size in liters 1L
Nestle Milkpak
Price 69 35 19
0.5L 0.25L
1L
Engro Foods pvt. Ltd. Olpers,
69 35 19 69 35 69 35 19
0.5L 0.25L 1L
Royal Dairies
Milk Flow
0.5L 1L
Shakarganj
Good Milk
0.5L 0.25L
DISTRIBUTION REVIEW:
CDL-Branded products will be distributed through a network of retailers in the top Pakistani markets. A- Class Stores: Include all the big CSDs, Utility stores and Big wholesale stores e.g. Metro. B-Class Stores include all the stores located in the prime sectors such as general grocery stores. C-Class Stores include all the shops and stores located in the different locations of a city or village.
Strength:
Happy milk will have 3 major strengths. y y y y International unique packing Big reservoirs of Livestock including more than 500 buffaloes in different areas of pakistan Affordable and reasonable price Have our own packaging and producing plant
CDL is re- launching their product on the basis of the new packaging. This new and unique looking packing will be our major strength against our competitors. Happy milk is comparatively less costly than the other Tetra pack companies which will again attract our customers attraction. And in the end CDL has its own compound where the product is manufactured and packed.
Weaknesses:
As the failure of Habeeb milk has enabled CDL to learn from its past mistakes but Nonetheless, Happy Milk will face 2 main weaknesses. y y Heavy capital will be required for promotion Consumers are brand loyal toward competitors product so we have to convince them.
CDL is currently facing some financial problems due to which accumulation of capital will be a little difficult but its not something which cannot be overcome.
Customers are currently motivated towards other brands so we need to awake awareness in them.
Opportunities:
Happy Milk can take advantage of 3 major market opportunities. y y y y y Increase usage Can introduce flavored milk and Tea Whitener. People are switching from unhygienic to hygienic milk People are becoming health conscious and the usage of tetra Milk is increasing with the passage of time Loose milk prices are also increases.
As Pakistani dairy market is growing and also population is increasing at a very rapid speed so the usage of dairy products is likely to be increased CDL will later on introduce Flavored milk and Tea whitener once consumers loyalty is build toward the Happy Milk. People are using tetra Milk packs now as against the loose milk because of its hygienic and remain fresh for several days quality.
Threats:
The only threat that company can face is that. y Competitors can come up with the same unique packing.
CDL is introducing this new product only on the basis of new packing. So the only threat to the company will be from other competitors that they can also some time later use the similar type of packing.
Happy Milk is New International package to retain freshness Toned milk with added vitamins and calcium Taste is just natural best for drinking purpose This ensures not only the highest quality but also the best possible taste.
ISSUES:
In relation to product launch, our major issue is the Lack and shortage of Financial resources that will be needed for the promotion Budget for, creating awareness and attractiveness of our Product in the customers that will motivate them to use our product.
MARKETING STRATEGY
Happy Milk marketing strategy will based on a positioning of product differentiation. Our primary consumer target is lower middle Class, Middle upper class, Middle -Middle class. There is no secondary consumer target as Milk is the need of every human being. This segment can be described demographically by including every one above the age of 4 years.
PRODUCT STRATAGY
For product strategy we will follow the Product line strategy. In this we further will use product improvement strategy. We are improving product through 1. Taste 2. Nutritional value Added enriched vitamins and Zinc [fatty acids] with iron for
supplementing healthy growth. Milk for growth, enriched with zinc, vitamins, essential fatty acids and, above all, iron, with content 25 times higher than conventional milk. This is a decisive advantage when you know that 70% of babies have an iron deficiency. With half a litre of Happy Milk every day, children will get 65% of the iron and 80% of the calcium they need.
60 % of children suffer
Why?
Calcium (mg)
100
83
80
80
126
Magnsium (mg)
9.3
11
Phosphorous (mg)
75
75
65
65
109
Iron (mg)
1.3
0.03
0.03
0.03
0.05
Zinc (mg)
0.80
0.2
0.2
0.2
0.4
Potassium (mg)
127
152
138
138
176
Sodium (mg)
41
41
40
40
50
Vitamins
A B1 (mg) B2 (mg) B5 (mg) B6 (mg) 60 30 0.11 0.20 0.03 34 0.04 0.17 0.35 0.03 34 0.04 0.17 0.35 0.03 34 0.04 0.17 0.35 0.03 47 0.07 0.23 0.44 0.04 65 0.08 0.25 0.45 0.04 65 0.08 0.25 0.45 0.04
B8 (g)
3.54
3.54
3.54
4.77
4.7
4.7
B9 (g)
B12 (g)
0.30
0.33
0.33
0.33
0.45
C* (mg)
6.00
0.96
0.96
0.96
D3 (g)
1.25
E (g) PP (mg)
0.66 60
0.12 0.06
0.12 0.06
0.12 0.06
0.17 0.08
0.17 0.08
0.17 0.08
PRICING STRATEGY
Pricing Objectives
1. Gain market position (Acceptance by the consumers) 2. Influence competition 3. Capture Business Market. We will use price penetration because if we analyze the packed milk competitors like Milk Pak, Every Day, Olpers and Good Milk their prices are higher. We will maintain the same price by offering more added features, which will give us a competitive edge. Added features include more added values as well as new look. Happy Milk 1 liter liter liter 100 liter Price Rs. 68/Rs. 36/Rs.18/Rs.6550/-
The other considerations also include the Non price factor. Buyers are willing to pay more prices to gain other competitive advantage, so taking this into considerations we have included new nutritional elements as well as new Packing to maintain the quality and freshness of the Happy Milk. We will give added value to our customers as the company has promised to provide quality products with differentiation.
DISTRIBUTION STRATEGY
For Consumers Markets.
We will use conventional channel for the distribution. We have 12 main distributors in Karachi ,Islamabad and Lahore . Distribution intensity will be selective. Currently the company is covering 1000-1200 outlets. It is intended that the distribution will be the same which is exclusively carrying the product to the retail outlets. Their would be dedicated shelf spacing to maintain the SKU (stock keeping units) for example providing rags and exclusively designed shelves according to specifications as per the brand image and requirements. We will be providing Happy Milk to A, B and C class stores. The reason why we have chosen this strategy is due to financial considerations. Profit for the distributors is 1.25%. Distributors will get the product on 15 days credit from the company. Normal market practice is that companies do not give credit facilities to its normal distributers. (We are using all the products supplied by these distributors).
For Business Markets:
We will use the company Trucks and Vans to deliver them the large amount of Milk
Creating the Awareness, educating the consumers providing information about product benefits and what are the diseases caused by lack of consuming milk.
Increase Usage, advertising campaign based on situation, fun, enjoy and health.
1. 2. 3. 4.
Below the line activities (BTL) Brand line extension (targeting kids) Co branding with Dunkin Donuts Co branding with LU biscuits
Promotion We will use POPs in which all the CDL brands will be available. (Special Shelves for CDL). This will give a unique identity to the corporate name and to products. This will not only reinforce the brand name of Haleeb but also it will give promotion to all the other brands of CDL. For Advertising We will use doctors in our advertising (1st phase) like
1. Nutrition Specialist Mohammad Ali Shah (PIMS). 2. Dr. Ghaffar Billo focusing on nutritional needs of milk. 3. Pakistan Medical Associations These doctors will focus on the nutritional needs of Milk recommending HAPPY MILK. We will also invite Imran Khan (legend of Pakistan) to reinforce the customers he will advertise for us and we will give 3% of our profit to his Shoqat khanam memorial Hospital.
(Advertising Campaign)
We will focus on different usage situation like at playing sports, at hospitals. We will also target kids having Happy milk having fun and enjoy. Focusing on different flavors, chocolate, strawberry and Banana. We will launch a campaign in Schools. Sticking Posters on Walls near schools and providing refrigeration having Happy milk using cartoon character Garfield.
In the 3rd Phase We will go for co branding with companies like Dunkin Donuts, using Happy milk in their products.
Promotion schemes will be used with the help of Candy biscuits providing free ticky pack biscuits on purchase of Happy milk i.e. Candi Biscuit. We will also celebrate different occasions like Children days and will provide different gift packs. We will place bill board on different locations. Like Boating Basin, Park Towers and Airport. The cartoon character will create association in children and the children will act as an opinion leader for our company.
MARKETING RESEARCH:
Using research we will identify the specific features and benefits that our target market segments will have. Feedback from market tests, surveys and focus groups will help us developing the flavored Happy Milk and Tea Whitener. We are also measuring and analyzing customers attitudes toward competing brands and products. The type of research that will be used in this study is exploratory research.
MARKETING DEPARTMENT
Marketing department handles all the marketing activities concerning all CDL brands. A recent marketing survey conducted by a prominent marketing research company showed that CDL has considerably increased its brand visibility and image through its vibrant marketing strategies.
CMO
ASSISTANT MANAGERS
HEAD OF DEPARTMENTS///
MANAGEMENT TRAINEES
SENIOR EXECUTIVES
(Regional)
(Regional)
INTERNEES
(Regional)
(Regional)
Sub Departments of Marketing Department: Brand Activation Value Added Services International Roaming Media Planning (Marketing Strategies) Marketing Finance Marketing Operations
Current CMO (Chief Marketing Officer) of CDL is Mr. Arshad Yaqoob Khan
Budget:
Cost of Billboards used in different places in the city
Billboards
Rate Teen Talwar Malir Halt Neepa Chowrangi Nazimabd Schon Circle Boat Basin Malir Cantt 250000/50000/45000/40000/300000/250000/60000/-
Production Cost 80/sq.ft 8x(10x20)= 16000/80/sq.ft 8x(10x20)= 16000/ 80/sq.ft 8x(10x20)= 16000/ 80/sq.ft 8x(10x20)= 16000/ 80/sq.ft 8x(10x20)= 16000/ 80/sq.ft 8x(10x20)= 16000/ 80/sq.ft 8x(10x20)= 16000/
TOTAL COST
1107000
Print Media
321750 273000
TV Advertising
GEO From 7 to 8 (483.33/sec x20sec) 7249.95 x 2 14500
20000
690000
1312527
5,672,527
ACKNOWLEDGEMENT
I am very grateful to Mr. Hanif Shahzad Malik for teaching us curriculum of Marketing. His versatile knowledge in marketing field and unique teaching style has developed our knowledge and cleared many marketing concepts.
I am the most grateful to him for assigning this project, which has further helped me in evaluating many interrelated dimensions of marketing field.
Finally I bestow my thanks to CDL Foods limited and all the people who has directly or indirectly supported me with their assistance and guidance to compose this report and accomplish broader vision to visualize things in marketing concepts.
SUBMITTED BY:
M. Awais Saffdar.
SUBMITTED TO:
SIR.HANEEF SHAHZAD