Table Of Contents

INTRODUCTION...............................................................................................................4
Company Information .....................................................................................................4
International Certifications .............................................................................................4
Company Products History..............................................................................................6
Popular Profiles at Haleeb Foods Limited.......................................................................6
Company mission ............................................................................................................7
Companys Vision ..........................................................................................................7
Companys Policy............................................................................................................8
Shipping Units.................................................................................................................8
Company location............................................................................................................9
MARKET ORIENTED STRATEGIC PLANNING.........................................................10
CDL Foods Limited Mission Statement .......................................................................10
Market Oriented Strategic Planning...............................................................................10
Corporate and Division Level Planning Of CDL .........................................................11
The core values at CDL are:..........................................................................................11
Product and Application Scope: Dairy Queen: .................................................................12
Competence Scope.........................................................................................................12
Market Segment Scope..................................................................................................12
Vertical scope.................................................................................................................13
Geographical Scope.......................................................................................................14
Establishing Strategic Business Unit.............................................................................14
Situational Analysis...........................................................................................................15
Product Situation............................................................................................................15
Key Benefits...............................................................................................................15
Strategic Mission...........................................................................................................15
Market Objective ..........................................................................................................16
Market Situation.................................................................................................................16
Competitive analysis..........................................................................................................16
Distribution Situation.........................................................................................................17
Retail Outlets (indirect channel): ..............................................................................17
Direct Sales Promotion Channel: .............................................................................17
Distribution and Warehousing:..................................................................................17
Financial Analysis..............................................................................................................18
Market Targeting Strategy.................................................................................................18
Target Market and segmenting strategy.........................................................................18
Product Line...................................................................................................................18
Price...............................................................................................................................18
Distribution Outlets........................................................................................................18
Sales Force.....................................................................................................................18
Sales Promotion.............................................................................................................18
SWOT ANALYSIS:..........................................................................................................19
STRENGTHS: ..............................................................................................................19
WEAKNESSES.............................................................................................................19
Opportunities..................................................................................................................20

Threats............................................................................................................................20
Industry competition: ........................................................................................................22
IDENTIFYING COMPETITORS:................................................................................22
Competitive Analysis.................................................................................................22
Competitors profile ..........................................................................................................25
Nestle Milk pack limited................................................................................................25
Reaction Pattern: ...........................................................................................................25
MARKET SEGMENTATION AND TARGETING:........................................................26
Market Segmentation:....................................................................................................26
Geographic:....................................................................................................................26
Demographics:...............................................................................................................26
Social Class:...................................................................................................................26
Psychographics segmentation: ......................................................................................26
Patterns of Market Segmentation:......................................................................................27
MARKET TARGETING:..................................................................................................27
Single Segment Concentration: .....................................................................................27
Cost: ..............................................................................................................................27
Quality: .........................................................................................................................27
Sales and Profits.................................................................................................................28
PRICING:......................................................................................................................28
Mark Up Pricing........................................................................................................28
Value Pricing:............................................................................................................28
Price Discounts and Allowance ................................................................................29
DISTRIBUTION CHANNEL: .........................................................................................29
Marketing Channels ......................................................................................................29
Channel Function and Flows.........................................................................................29
Channel Level................................................................................................................30
Multi Channel marketing system: .................................................................................31
Indirect channel:.............................................................................................................31
Direct channel:...............................................................................................................31
Direct: .......................................................................................................................31
Indirect:......................................................................................................................31
ADVERTISING:................................................................................................................32
1. Setting the Advertising Objectives............................................................................32
Informative Advertising:............................................................................................32
Persuasive advertising:...............................................................................................32
Reminder Advertising:...............................................................................................32
2. Deciding the Advertising Budget...............................................................................33
Competition and culture:............................................................................................33
Advertising Frequency: .............................................................................................33
Promotional Budget...........................................................................................................33
3. Choosing Advertising Message.................................................................................34
Message Execution .......................................................................................................34
A. Execution Style:....................................................................................................34
B. Execution Tone:....................................................................................................34

C. Execution Words:..................................................................................................34
D. Execution Format:.................................................................................................34
Selecting Specific Vehicles: .........................................................................................35
Electronic Media:.......................................................................................................35
Print Media:...............................................................................................................35
Billboards:..................................................................................................................35
4. Deciding on Media Timing .......................................................................................35
5. Deciding on Geographical Allocation.......................................................................35

INTRODUCTION
Company Information
CDL Foods Limited (Chaudhry Dairies Limited) 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.
Haleeb Foods has the distinction of being the first company in Pakistan to use
Tetra Paks novel packaging formats, Tetra Brick Aspetic (TBA) and Tetra Fino Aseptic
(TFA). Haleeb Foods has also introduced a number of unique products previously
unknown to the Pakistani market, like Haleeb Labban, delicious traditional lassi
(buttermilk) prepared with pure thick milk and yogurt, Candia Tea Max, cardamom
flavored tea whitener, Candia milk, packed in distinctive food grade plastic bottle, and
Haleeb Good Day, 100% pure and natural fruit juice, free of added sugar, artificial
flavors and preservatives.
All this and more makes Haleeb Foods Pakistans number 1 and fastest growing
packaged Food Company. As of fiscal 2006, its annual turnover is Rs. 9 Billion.

International Certifications
Haleeb Foods products are made with great care, and marked with our quality
seal of recognition. We are the only dairy company in Pakistan that undertakes 21
rigorous quality control tests on every portion of the milk collected by our teams. These
internationally recognized tests are used to check for: a) adulteration, b) microbiological
contamination and c) adequacy of nutritional contents. All processes, from preparation to
quality assurance to packaging, are undertaken employing state-of-the-art technology and
equipment. Therefore, we take great pride in the fact that Haleeb Foods is the only food
company in Pakistan that has the following international certifications of quality and
prestige.
HACCP (in process controls for safer products)
ISO 9002 (better quality for greater customer satisfaction)

 ISO 14000 (environment-friendly operations)

Company Products History

1997

Haleeb Asli Desi Ghee

1998

Haleeb Cream, Candia Skimz Milk Powder

1999

Candia Milk, Candia Skimz Liquid Milk

2000

Tropico Juice Drink, Haleeb Dairy Queen

2001

Haleeb N'rish Instant Full Cream Milk Powder

2002

Haleeb N'rish Fortified Instant Full Cream Milk Powder

2003

Candia Tea Max Dairy Whitener, Haleeb Butter, Haleeb Plain Yogurt, Haleeb Lassi Drink

2004

Haleeb Good Day Pure Juice, Haleeb Fun Day Juice Drink, Candia Candy'Up Flavoured Milk

2005

Haleeb Cream With Honey, Haleeb Tea Max with Cardamom, Haleeb Labban, Haleeb Good Day
(Mix Fruit, Red Grapes, Mango Pineapple)

2006

Haleeb Reshmi Pack, Candia Classic, Skimz Pouch, Tropico Nectar

2007

Haleeb Cheddar Cheese

Popular Profiles at Haleeb Foods Limited

Salman Nawazish
Imran Amjad
Suhail Noor
Shafqat Niaz
Muhammad Sabir Lilla

Manager, Compensation & Performance Management

GM Supply Chain
Manager Administration & HR
Network Administrator
Deputy Manager Warehouses

Company mission
Build Branded food business to improve quality of life by offering tasty,
Affordable and highly nutritional products to our consumers while
Maximizing stake holders' value
Building an excellent reputation over the years, Haleeb Foods continues to be at
the forefront of product and packaging innovation. By the grace of God, it has achieved
market leadership in several food categories with a very strong portfolio, consisting of
leading national and international brands.

Companys Vision
Most Innovative and fastest growing food company offering products enjoyed in
"every home every day"
Apart from its extensive nationwide distribution networks, Haleeb Foods is also
serving several export markets including South Korea, Bangladesh, Afghanistan and the
Central Asian States.

Companys Policy
Build branded food business to improve quality of life by offering tasty, sage,
hygenically processed, affordable, highly nutritional food products through
environment friendly processes to our customers while maximizing stake holders'
value.
Meet the requirement of all relevant legislation and regulation related to consumer
satisfaction & safety, environment and other applicable laws etc.
To prevent pollution through controlling levels of harmful emission, effluents and
other wastes.
Contribute to safe and healthy environment for our country.
Promote mutual trust with customers, suppliers, employees, shareholders and
community.
Provide all the necessary resources for the continual improvement in quality,
safety of our products, processes and environment.
Consumers everywhere know that only Haleeb Milk makes the best tea ever
because of its thickness. Haleeb is pasteurized, homogenized, and standardized pure UHT
milk of the highest standard with 3.5% fats and 8.9% solid non fats. It is Haleeb Foods
premier brand, and the choice of quality-conscious consumers who only go for the best.
Packed in easy to open, 6-layered Tetra Pak Brick Aseptic packaging, it comes with a 3
months shelf life.

Shipping Units
Size
250 ml : 1/4 liter
500 ml : 1/2 liter
1000 ml : 1 liter

Price
13 rupees
25 rupees
50 rupees

Carton pack Size

24 pieces
16 pieces
9 pieces

Carton price
296 rupees
380 rupees
425 rupees

Company location
The Head Office of CDL is located in the evergreen city of Lahore at 135Ferozepur Road. CDL is producing a number of food products both for consumers and
industrial users. The company also operates as a franchise of Candia Cedilac of France.
CDL is the market leader in the dairy milk industry.
The products are as follows:

MARKET ORIENTED STRATEGIC PLANNING

CDL Foods Limited Mission Statement
Our business is to Provide 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.

Market Oriented Strategic Planning

It is the managerial process of developing and maintaining a viable fit between
organizations objectives, skills and resources and its changing market opportunities. The
aim of strategic planning is to shape the companys businesses and products so that they
yield target profits and growth.

Dairy Queen is Haleeb another standardized and homogenized pure UHT Milk
with 3.5% fat and 8.9% solid non fats. At an affordable price it has won the hearts of
consumers everywhere. It is available in 6-layered Tetra Pak Fine Packaging, introduced
for the first time in Pakistan and has 2 months shelf life. Shipping Units: 250 ml: 24
pouches per carton 500 ml: 16 pouches per carton 1000 ml: 9 pouches per carton

10

Corporate and Division Level Planning Of CDL

Corporate Headquarter is responsible for designing a corporate strategic plan to
guide the whole enterprise; it makes decisions on the amount of resources to allocate to
each division, as well as on which business to start or eliminate.
CDL is a market leader in the dairy milk industry of Pakistan. There host of
product / brand portfolio in the packaged food category has had a significant role in the
quality and innovation of distinct styles and quality of package as well as nutritional
contents.
The four planning activities undertaken by CDL are as follows

Defining the corporate mission

Establishing strategic business units (SBU)
Assigning resources to each SBU
Planning of new Business

The core values at CDL are:

Team work
Empowerment
Trust
Accountability
Enterprise

The mission statement of CDL has three major characteristics. Firstly it focuses
on limited number of goals. It aims to improve the quality and taste of its dairy products
and build branded food business at an affordable price. Secondly, the mission statement
represents the policies of the company. It shows that the basic aim of the company is to
maximize the shareholders wealth. Thirdly the competitive scope within which CDL will
operate.

11

Product and Application Scope: Dairy Queen:

Dairy Queen is the brand name of CDL's UHT milk. Dairy Queen is Pasteurized,
Standardized, and Homogenized and Ultra Heat Treated milk of the highest standards.
Pakistan Pure Food Laws standardize dairy Queen to 3.5% butterfat and 8.9% SNF
(Solids Non Fat) as prescribed. Safe, Economical and nourishing it is available in 1/2
Liter.

Competence Scope
CDL has a joint venture with Candia, which is Europe's Number One selling milk.
CDL Foods limited and Candia of France have joined hands to bring to highest quality
milk to the customers. So the company has built core competence in diary products. It is
also diversifying and has entered into fruit juices and Ghee and yogurt making.

Market Segment Scope

All the products are highly competitive in the market, as the prices are lower as
compared to the competitors. CDL is targeting all the segment of the society. The aim is
to provide nutritive hygienic milk at lower price so that people refrain from
loose(gawala) milk, which is unhygienic. CDL manufactures milk in different sizes likes
1/4th liter, half liter and one liter packs so that all the segments of the market could
benefit from the nutritive milk.

12

Vertical scope
Company has its own farms and cattle so it is self-sufficient and doesnt purchase
raw materials. It has its own network of vans, which deliver the milk to all towns and
cities. CDL products reach to final consumers through retail stores and sales promotion
officer. Company uses multi-channel distribution.
The channel levels from raw material to final product and distribution of CDL is
as follows:

Manufacturer
(Own farms)

Distributors

Retailers

Sales
promotion
officers

Final
Consumer

13

Geographical Scope
CDL is providing its innovative and hygienic products to all the cities and towns of
Pakistan. Its not exporting any of the milk products. In fact it has signed a joint venture
with Candia of France and Candia is mass marketed in Pakistan.

Establishing Strategic Business Unit

CDL has established a separate business unit for its dairy products, which include
Haleeb and Dairy Queen.
Dairy Queen has been launched to increase the consumption of milk in the
household and to provide hygienic and affordable product to the consumers.
Haleeb is sold as tea whitener whereas Dairy Queen focuses on consuming packed milk,
as it is more hygienic and even affordable as compared to loose milk.

14

Situational Analysis
Product Situation
Dairy Queen is the brand name of CDL's UHT milk. Dairy Queen is Pasteurized,
Standardized, and Homogenized and Ultra Heat Treated milk of the highest standards.
Pakistan Pure Food Laws standardize dairy Queen to 3.5% butterfat and 8.9% SNF
(Solids Non Fat) as prescribed. Safe, Economical and nourishing it is available in 1/4
Liter, 1/2 liter and 1 liter.

Key Benefits

Guaranteed Clean/Bacteria Free

Homogenized
Standardized
Economical

DAIRY QUEEN
OLD PACKING

DAIRY QUEEN
NEW PACKING

Strategic Mission
To diversify the market
To increase the consumption of packed milk.
Dairy Queen has been launched to diversify the market because Haleeb is
marketed tea making milk and Dairy Queen is positioned as purely drinking milk and is
available in only half-liter pack for affordability and economy.
Secondly the market of Haleeb milk was stagnant, so CDL launched Dairy Queen
to increase the market share and to increase the consumption of packed milk.

15

Market Objective
The following are the market objectives of Dairy Queen:
Expand consumer awareness of Dairy Queen from 5 to 25% over the planning
period by spending 8 percent of the turnover on the promotional budget.
Aim for average price of 13 RS and create price uniformity.
To achieve sales of 20 million RS by December 2003.
To achieve the break even by October 2003.

Market Situation
Pakistan's dairy industry produces UHT, pasteurized, powdered and condensed
milk, butter, yogurt, cheese, cream and some butter oil. Of a total of 38 dairy plants with
a total daily rated capacity of 2,180,000 liters per day, 11 with a rated capacity of 948,000
liters per day have been in operation. The total milk consumption in Karachi is 3.8
million liters per day and the consumption of packed milk is 10% of 3.8 Million. Pakistan
now produces an estimated 27.5 billion liters (or27.5 million metric tons) of milk
annually, of which only one million liters is processed daily. Approximately half of this
amount is processed into UHT milk, 40 percent into powdered milk, and the remaining
10 percent into pasteurized milk, yogurt, cheese and butter.
The seasonal nature of supply as well as demand for milk powder from the
bakeries and confectioneries, as well as dairy plants themselves, has necessitated the
import of powdered milk.

Competitive analysis
Currently milk is sold either directly through milkmen or in tetra packs. The main
problem with milkmen is that they mix substantial amount of water in the milk, which
dilutes it, thus affecting purity. Dairy Queen is launched to compete with loose milk as its
priced at 12 RS per half liter pack. The price is very competitive and there are no
competitors in the market as no other milk is sold in Tetra Fino Packaging.
Currently the Dairy Queen has three major competitors in the dairy industry:

Milk pack (Nestle Milk pack Limited)

Milk Flow
Loose Milk Shops
Powdered Milk (Various Brands)

16

The price of Dairy Queen is relatively lower than both 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 milkmen 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
milkmen milk.

Distribution Situation
Company is using 2 channels for distribution of Dairy Queen
Retail outlets (indirect channel)
Sales promotion officers (direct channel)

Retail Outlets (indirect channel):

There are many outlets all over the country, which provide every day consumable
items to the consumers. 80 percent of the milks sales would be through indirect
channels.

Direct Sales Promotion Channel:

Dairy Queen is being distributed to institutions like government institutes, offices,
teashops, caters, schools, colleges and marriage halls. Company has a sales team of 5
members for the direct sales promotion. This channel will constitute 20 percent of the
total milks sales.

Distribution and Warehousing:

There are many authorized distributors of Dairy Queen each having more than 8
warehouses to store the milk.
Company has its own network of vans, which deliver the milk to all the retail
outlets early morning.

17

Financial Analysis
Dairy Queen is charged at 13Rs to the final consumer. Company has a trade
margin of 6.84 %. Company to retailer trade margin is 4 percent.

Market Targeting Strategy

Target Market and segmenting strategy
Dairy Queen has identified large group within the dairy market with similar
wants, geographical location and buying attitudes and has segmented the market on the
basis of geographic, demographics and Psychographic of the consumers.
Positioning
Dairy Queen is positioned as Fresh and hygienic drinking milk at a very
reasonable price with new convenient packaging.

Product Line
Dairy Queen will be launched in 1/4th liter pack after one year of operation in the
market.

Price
Dairy Queens price is below the competitors prices.

Distribution Outlets
To increase the distribution of milk in the remaining 4000 untapped retail outlets.

Sales Force
Currently operational with 5 sales promotional officer who are responsible for the
direct sales to institutions, marriage halls, caters , offices ,schools an tea-shops.

Sales Promotion
Dairy Queen has developed a new advertising campaign that supports the
positioning strategies and has increased the advertising budget by 10 percent.

18

SWOT ANALYSIS:

STRENGTHS:

ISO 9002 Certification - a Quality Management System

Using strong brand name Haleeb on Dairy Queen pack.
Good will amongst the customers.
Unique Positioning of Dairy Queen.
Competitive price of Dairy Queen.
New advertising strategy and increase in advertising budget.
Strong distribution channel.

WEAKNESSES
Failure in the first attempt
Inconvenient packaging initially which lead to customer complaints and
dissatisfaction.
Uncertainty about the future of Dairy Queen.
Popularity of CDLs own brand Haleeb that is cannibalizing the sales of Dairy
Queen.
Unavailability of Dairy Queen in 1 liter and 1/4th liter packs.
Lack of awareness amongst the majority of population about the benefits of
packed milk.

19

Opportunities

Serving additional customer groups

Expanding to new geographic areas
Expanding product line
Vertical integration
Take market share from rivals
Openings to extend brand name/image

Threats

Entry of potent new competitors

Loss of sales to substitutes
Slowing market growth
Adverse shifts in exchange rates
Costly new regulations
Reduced buyer needs for product

20

Summary
Although Dairy Queen failed in the market in the first attempt but the team of
dedicated employees came up with the second version of Dairy Queen. Popularity of
Haleeb is a threat for Dairy Queen but the unique positioning; pricing and promotional
strategies of Dairy Queen can overcome this weakness.

21

Industry competition:
Industry is a group of firms that offer a product or class of products that are close
substitutes for each other. Industries are classified according to the number of sellers,
degree of product differentiation, presence or absence of entry, mobility and exit barriers,
cost structure, degree of vertical integration and degree of globalization.
The industry competition for Dairy Queen includes Tetra packed milk; loose milk
offered by milk shops and powdered milk. All of these are close substitutes for each
other.
Dairy industry is monopolistic competition as there are many companies like
Nestle, Milk flow some foreign brands who are offering milk in various forms and
packaging and are able to differentiate their offerings on the basis of price and
positioning. All these companies are focusing on market segments where they can meet
customers needs in superior way and command a price premium.

IDENTIFYING COMPETITORS:
Competitive Analysis
The competitive frame work Dairy Queen can be classified as following;

Company

Product

Competitive Network Frame

Category
Class
Size

Name
Nestle

Name
Milk

Homogenized

Royal

Pack
Everyday
Milk

Milk
Tea max
Pasteurized

Flow
Milk

Milk
Flavored

Flow

Milk

Dairies

NURPUR

Market

Tetra Pak

rupees
1L, 0.5L, 55,30,15

Share
41%

Tetra pack
Tetra Pak

0.25L
0-50ml
1L,0.5L

11
28.14

4%

1L,0.5L

28.14

/ 1L,0.5L,

40,25

P. Tetra Pak

[P=Pasteurized]
NURPUR Pasteurized

Bottled

Milk

Tetra Pak

Milk

Price in

3%

300ml

22

Currently milk is sold either directly through milkmen or in tetra packs. The main
problem with milkmen is that they mix substantial amount of water in the milk, which
dilutes it, thus affecting purity.

23

Currently the Dairy Queen has three major competitors

Loose milk shops
Tetra pack (Nestle Milk pack Limited)
Milk flow (royal dairies)
Dairy Queen faces tough competition from CDLs other brands like Haleeb and
Candia. CDLs product constitutes 52 % of the market share.
The price of Dairy Queen Milk is relatively lower than both 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.

24

Competitors profile
Nestle Milk pack limited
Nestle Milk pack limited is a joint venture of the Nestle, Switzerland and Milk
pack limited Lahore. The two companies entered into a joint venture in 1988 and today
produces UHT milk, butter, cream, orange juice, fruit-based drinks, milk powder, infant
cereals, infant milk, dairy whitener, pre-cooked noodles and confectionery. The joint
venture then commenced local packing of imported coffee.

Nestle AG, the world's largest food company

Nestl is a well known name
Consumers trust its quality
Its a multi-national company
Financially strong

All above strengths were quoted by the research respondents.

Competitive position: The competitive position of Nestle is strong as it takes
independent decisions without endangering its long term position and can maintain its
long term position regardless of its competitors.

Reaction Pattern:
Nestle is one of the tigers in the Dairy industry in Pakistan. It reacts swiftly and
strongly to any assault or move of CDL. Nestle has introduced Everyday in quarter liter
pack for 7 Rs in reply of CDLs Dairy Queen half liter pack which is of 13Rs

25

MARKET SEGMENTATION AND TARGETING:

Market Segmentation:
Dairy Queen has identified large group within the dairy market with similar
wants, geographical location and buying attitudes and has segmented the market on the
basis of geographic, demographics and psychographics of the consumers.

Geographic:
Dairy Queen is targeting whole country.

Demographics:
Dairy Queen has segmented the market on the basis of their income level, social
class and age group.

Social Class:
Upper lower class, working class, middle class and upper class with particular
emphasis on bread earners of the family (males) and decision makers of household
purchases (housewives)
Income level:
5000-10,000Rs
11,000-25000Rs
26,000Rs and up
Age groups:
10-20 years
21 30 years
31-60 years
65 and up

Psychographics segmentation:
Dairy Queen has used value segmentation scheme. Dairy Queen is providing best
quality hygienic milk at an affordable price. Dairy Queen is providing value to its
consumers by delivering the best at a lowest price.

26

Patterns of Market Segmentation:

Consumers in the market have clustered preferences. The following are the
preferences of consumers:
For drinking purpose
For tea whitening
For cooking desserts and other items
Dairy Queen has positioned itself in the largest market segment, concentrated
market for drinking purposes.

MARKET TARGETING:
Single Segment Concentration:
Company selecting single segment for marketing its product is called single
segment concentration strategy.
Dairy Queen is targeting consumers who prefer packed milk for drinking purpose.
It is following concentrated marketing with the aim to achieve strong knowledge of the
segments need and strong market presence. Dairy Queens aim is to achieve operation
economics through specialization its production, distribution, and promotion. After
capturing segment leadership, it can earn a high return on its investment.
CDL Foods Limited has decided to promote two basic differences for Dairy Queen Milk,
these are:

Cost:
cost is most effective difference to promote Dairy Queen Milk consumer market
is very price sensitive while. There are various brands available in the markets which are
higher in price. CDL decided to promote Dairy Queen Milk on cost basis and has kept its
costs competitive with loose milk available in the market.

Quality:
In this competitive era customers are quality conscious Dairy Queen Milk is
premium quality milk with fresh taste.
Communicating the Companys Positioning
For communicating its differences CDL Foods Limited chooses effective media
like radio, television, billboards, buses etc to target its customers.

27

Sales and Profits.

PRICING:
Mark Up Pricing
The most elementary pricing method is to add a standard markup to the products
cost.
CDL has a markup pricing of 20 % on their cost of good manufacturing
The price of Dairy Queen is as follows:
Cost to the company

11.25 Rs

Distributors price (invoice price)

11.85 Rs

Trade Price (retail price)

12.27 Rs

Consumer price

13 Rs

Value Pricing:
CDL have adopted value pricing, and is charging fairly low price for a high
offering. Its offering high value to its customers.
Value pricing is not a matter of simply setting lower prices on ones products
compared to competitors it is a matter of reengineering the companys operations to
become a low- cost producer without sacrificing quality, and lowering prices significantly
to attract a large number of value-conscious customers.
An important type of value pricing is Everyday Low Pricing (EDLP), which takes place
at the retail level. Dairy Queen is sold at Every day low pricing as the price is kept low
throughout the year.

28

Price Discounts and Allowance

CDL has used Quantity Discounts that is a price reduction to those buyers who
buy larger volume; it is offered on a non cumulative basis (on each order place)

DISTRIBUTION CHANNEL:
Marketing Channels
These are the sets of the interdependent organizations involved in the process of
making a product or service available for the use of consumption.

Channel Function and Flows

A marketing channel performs the work of moving goods from producer to
consumers. It overcomes the time, place and possession gaps that separate goods and
services from those that need or want them. It perform number of functions
They gathering information about potential and current customer, competitors, and
other actors and forces in the marketing environment.
They develop and disseminate persuasive communication to stimulate purchasing
They place an order to the company
They provide for the successive storage and movement of the physical products.

29

Channel Level
It is a two-level channel, CDL has its own distributors which are suppose to
deliver the Dairy Queen milk to the wholesaler as well as to the retailer, through which it
reach to the final buyer or consumer.

Manufacturer
Direct

Indirect

channel

channel

Distributor

Direct Sales Force

Wholesaler
&
Retailer

Consumer

Consumer

30

Multi Channel marketing system:

With the proliferation of customer segments and channel possibilities , more
companies have adapted multi channel marketing. CDL is using 2 marketing channels to
reach different customer segments.
The 2 different types of intermediaries of channels used by the company for the
distribution of Dairy Queen is as follows:

Indirect channel:
Company has a network of distributors and retailers who sell the milk to the final
consumers. Dairy Queen has many authorized distributors throughout the country which
distribute the milk to 8000 retail outlets in Karachi. Indirect channel constitutes 80% of
total sales of Dairy Queen Milk.

Direct channel:
CDL has several sales promotion officers in Karachi which are involved in direct
sales of the milk. Direct channel can be further divided into:

Direct:
The sales force distributes Dairy Queen to government offices and institutions.

Indirect:
Dairy Queen Milk is distributed to teashops, offices, schools, caters, marriage
halls etc by the direct sales distribution network of CDL. Direct channel constitutes of 20
% of the total sales of the Milk. In the future CDL has plans to expand the direct channel.

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ADVERTISING:
Ads are cost effective way to disseminate message, build brand preference or to
educate people. Most companies use an outside agency to help create advertising
campaigns and select and purchase media. CDL Food Limited has contract with the
agencies to develop advertising campaign. CDL Food Limited has three advertising
agencies which guides the company what should be the next move and also give feedback
regarding the market and competitors. CDL has three agencies:
Orient McCann
MPL
Asiatic Advertising

1. Setting the Advertising Objectives

The advertising objectives must flow from prior decisions on target market,
market positioning, and marketing mix. Advertising objectives can be classified
according to whether the company aims is to inform, persuade, or remind.

Informative Advertising:
In the introduction stage CDL will give detailed informative advertising about
Dairy Queen Milk. At this stage the advertising duration in television will be of 45
seconds.

Persuasive advertising:
After getting awareness in the market, CDL will emphasize on persuasive and
comparative advertising to present additional and competitive features of Dairy Queen.
At this stage the media channels will remain same, but tenure in television will be shorter
than before.

Reminder Advertising:
At the maturity stage of Dairy Queen, CDL will give only reminder advertising to
its customers that Dairy Queen exists in the market. At this stage the CDL will reduce the
frequency of its ads in television and in radio and will shortlist the billboards and
advertise only at rush and potential areas.

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2. Deciding the Advertising Budget

Deciding about advertising budget is a crucial decision. Following are the factors,
which a company should consider:
Stages in the Product Life Cycle: The advertising budget should be appropriate
according to the product life cycle; it varies with the different stages i.e. introductory,
growth, maturity and decline. Dairy Queen is newly launched product it will require huge
advertising budget to build awareness and to gain consumer attention.
Market Share and Consumer Base: High market share brands like Haleeb require
less advertising to maintain market share. Usually it is perceived that higher the
advertising frequency higher would be the consumers reaction and higher the sales.
Dairy Queen will be advertised heavily by using radio, print media, televisions, billboard,
metro buses etc to attract a large market.

Competition and culture:

There are large number of competitors in the market, so in their presence, CDL
has advertise Dairy Queen heavily to counter competition.

Advertising Frequency:
At initial stage of Dairy Queen in the market, repetitive advertising will be
persuaded and ad will run three times in a day for 5 days a week in first three months of
the re launch .

Promotional Budget
Estimated promotional budget of CDL for Dairy Queen Milk:
Billboards
Print ads
TV advertising
Second phase advertising
Total

62, 00,000 Rupees

30, 00,000 Rupees
20, 00,000 Rupees
40, 00,000 Rupees
152, 00,000 Rupees

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3. Choosing Advertising Message

Advertising campaign vary in their creativity. The creativity factor can is more
important than the number of rupees spent. Advertising goes through four stages to
develop a creative strategy:

Message Generation:
The product benefit message should be decided as part of developing the product
concept. As Dairy Queen is milk product, it will give the nutritional, rational, sensory
message to its customers, which will appeal them to buy it.
DOODH PEIGIAEY, DOODH HAZAR NEIMAT HE, GHIZIAT SE
BHARPOOR, MUNASIB QEEMAT DOODH BEHTREEN DAIRY QUEEN

Message Execution
The message impact depends not only upon what is said but also on how it is said.
. For executing the message there are different cohesive styles, tone, words and format.

A. Execution Style:
The advertisement of Dairy Queen Milk will be executed with striking musical
jingle, famous personality (pretty models), showing cows, buffaloes and farm houses to
give a natural image.

B. Execution Tone:
The executed tone of the ad will be positive and inkling towards Dairy Queen,
humor will be avoided as it takes attention away from the message.

C. Execution Words:
The memorable and attention-getting words will be used in the advertising of
Dairy Queen Milk, (HAR DAM TAZA, BEHTREEN ZAIQA, MUNASIB QEEMAT
DOODH BEHTREEN, DAIRY QUEEN.) so that the consumers could remember
the ad.

D. Execution Format:
TV advertisements will use attractive color combinations (the background and
presentation) with appealing musical jingle. Print ads will be using colorful pictures
(Dairy Farm) with product packaging and its information.

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Selecting Specific Vehicles:

The media planner must search for the most cost effective, dominant, and frequent
vehicles within each chosen media type. The planner has to rely on media measurement
service that provide estimate of audience size, composition, and media cost. As CDL
Foods Limited is a customer-oriented company, its aim is to serve maximum number of
customers. For advertising its products it has chosen advertising vehicles that are cost
effective, covering large number of audience. The vehicles, which are chosen by CDL,
are:

Electronic Media:
The electronic media will be only Radio and Television. CDL has decided to
advertise in FM 100, FM 101, and Radio Pakistan Karachi, Ads will be aired on PTV,
PTV World, Geo Television (Cable), and at ARY Gold (Cable).

Print Media:
The print media used will be Newspapers (Front Quarter page), i.e. Jang, The
News, Dawn, and Magazines (Quarter page) i.e. Akhbar-e-Jehan, Family magazine,
Khwateen Digest, Sunday magazine.

Billboards:
CDL had decided to advertise Dairy Queen milk on several billboards at
various locations covering the whole city.

4. Deciding on Media Timing

CDL Foods Limited has decided to adversities Dairy Queen on TV thrice a day
and t 5 days a week in first three months. The ad will go on air in the prime time
broadcasting like Drama hours; it will also be advertised daily in the mid break of
KHARBANAMA. Dairy Queen will also be advertised in the sports matches like Cricket
Matches, which has a very large viewer ship.

5. Deciding on Geographical Allocation

The company has to decide how to allocate its advertising budget over space as
well as over time. Dairy Queen will be advertised on a national level on all the national
radio and TV channels, national newspapers and magazines.
http://www.scribd.com/doc/31547539/22/POSITIONING-OF-CANDIA
http://www.scribd.com/doc/29476821/Marketing-Plan-of-Candi-Milk

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http://www.scribd.com/doc/142316131/Repostioning-of-Candia-Milk
http://www.scribd.com/doc/136933323/IMC-Plan-for-Candia-Milk
http://www.scribd.com/doc/27055238/haleeb-dairy-queen-milk#download
http://www.slideshare.net/SyedAhmedOwais/advertising-plan-of-nestle-milk-packrelaunch

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