Candia Milk

Management Information System

Huma Siraj Reg # _____

BBA-6b

ACKNOWLEDGMENT

We thank to al-mighty Allah the most gracious gracious and the most merciful, merciful, who gave us courage and ability to complete this project. we also ackn acknow owle ledg dge e Mr Mr.. Kash Kashif if (mar (marke keti ting ng depa depart rtme ment nt,, Hale Haleeb eb), ), Mr Mrs. s. Mehwish Waseem (brand manager manager ,Candia) who put special effort by providing us the required information with with detail so that we were able to make the proje project ct in time time with with comp comple lete te inform informat atio ion n and also also guiding us about the pattern and format of the project.

Foundation University

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Company Profile

Buildi Buil ding ng an exce excell llen entt repu reputa tati tion on over over the the year years, s, Hale Haleeb eb Food Foods s 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 intern internati ationa onall brands brands – Haleeb Haleeb,, Candia Candia,, Dairy Dairy Queen, Queen, Tea Max, Max, Skimz, Skimz, Tropic Tropico o and Good Good Day. Day. Apart Apart from from its extens extensive ive nation nationwi wide de distri distribut bution ion networ networks, ks, Haleeb Haleeb Foods Foods is also also servin serving g severa severall export export mark market ets s incl includ udin ing g Sout South h Kore Korea, a, Bang Bangla lade desh sh,, Afgh Afghani anist stan an and and the the Central Asian states. Haleeb Foods has the distinction of being the first company in Pakistan to use Tetra Pak’s novel packaging formats, Tetra Brick Aseptic (TBA) and Tetr Tetra a Fino Fino Asep Asepti tic c (TFA (TFA). ). Hale Haleeb eb Food Foods s has has also also intr introd oduc uced ed a numb number er of uniq unique ue prod produc ucts ts prev previo ious usly ly unkno unknown wn to the the Paki Pakist stan anii market market,, like like Haleeb Haleeb Labban, Labban, delici delicious ous tradit tradition ional al lassi lassi (butte (buttermi rmilk) lk) prepared prepared with pure thick milk and yogurt, yogurt, Candia Tea Max, cardamom cardamom flavored flavored tea whitener, whitener, Candia Candia milk, milk, packed packed in distinctive 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 Pakistan’s number 1 and fastest grow growin ing g pack packag aged ed Food Food Comp Compan any. y. As of fisc fiscal al 200 2006, its its annu annual al 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 and c) adeq adequ uacy acy of nutr nutriition tional al conte ontent nts. s. All All proc proce esse sses, fro from prep prepar arat atio ion n to qual qualit ity y assu assura ranc nce e to pack packag agin ing, g, are are unde undert rtak aken en 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) Hilal Certification.


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Company Profile

Buildi Buil ding ng an exce excell llen entt repu reputa tati tion on over over the the year years, s, Hale Haleeb eb Food Foods s 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 intern internati ationa onall brands brands – Haleeb Haleeb,, Candia Candia,, Dairy Dairy Queen, Queen, Tea Max, Max, Skimz, Skimz, Tropic Tropico o and Good Good Day. Day. Apart Apart from from its extens extensive ive nation nationwi wide de distri distribut bution ion networ networks, ks, Haleeb Haleeb Foods Foods is also also servin serving g severa severall export export mark market ets s incl includ udin ing g Sout South h Kore Korea, a, Bang Bangla lade desh sh,, Afgh Afghani anist stan an and and the the Central Asian states. Haleeb Foods has the distinction of being the first company in Pakistan to use Tetra Pak’s novel packaging formats, Tetra Brick Aseptic (TBA) and Tetr Tetra a Fino Fino Asep Asepti tic c (TFA (TFA). ). Hale Haleeb eb Food Foods s has has also also intr introd oduc uced ed a numb number er of uniq unique ue prod produc ucts ts prev previo ious usly ly unkno unknown wn to the the Paki Pakist stan anii market market,, like like Haleeb Haleeb Labban, Labban, delici delicious ous tradit tradition ional al lassi lassi (butte (buttermi rmilk) lk) prepared prepared with pure thick milk and yogurt, yogurt, Candia Tea Max, cardamom cardamom flavored flavored tea whitener, whitener, Candia Candia milk, milk, packed packed in distinctive 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 Pakistan’s number 1 and fastest grow growin ing g pack packag aged ed Food Food Comp Compan any. y. As of fisc fiscal al 200 2006, its its annu annual al 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 and c) adeq adequ uacy acy of nutr nutriition tional al conte ontent nts. s. All All proc proce esse sses, fro from prep prepar arat atio ion n to qual qualit ity y assu assura ranc nce e to pack packag agin ing, g, are are unde undert rtak aken en 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) Hilal Certification.


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Company History

Haleeb Foods was established in 1986 and its first product was Haleeb milk. Since then, it has continued to provide quality products to its consumers with product and packaging innovations. Other products and their dates of launch are as follows: 1997 Haleeb Asli Desi Ghee 1998 Halee aleeb b Crea Cream m, Cand Candiia Skim kimz Milk Powde owderr 1999 Cand Candiia Mil Milk, Cand Candiia Ski Skimz Liquid quid Milk Milk 2000 Trop Tropiico Jui Juice Dri Drink, nk, Hale aleeb Dair Dairy y Quee ueen 2001 2001 Hale Haleeb eb N'ri N'rish sh Inst Instan antt Full Full Crea Cream m Milk Milk Powd Powder er 2002 2002 Hale Haleeb eb N'ri N'rish sh Fort Fortif ifie ied d Ins Insta tant nt Full Full Crea Cream m Mil Milk k Pow Powde derr Candia Tea Max Dairy Whitener, Haleeb Butter, Haleeb Plain 2003 Yogurt, Haleeb Lassi Drink Haleeb Good Day Pure Juice, Haleeb Fun Day Juice Drink, 2004 Candia Candy 'Up Flavored Milk Haleeb Cream With Honey, Haleeb Tea Max with Cardamom, 2005 Haleeb Labban, Haleeb Good Day(Mix Fruit, Red Grapes, Mango Pineapple) Haleeb Reshmi Pack, Candia Classic, Skimz Pouch, Tropico 2006 Nectar 2007 Haleeb Cheddar Cheese Haleeb Foods is Pakistan’s number 1 and fastest growing packaged Food Company. As of fiscal 2006, its annual turnover is Rs.9 Billion. Recently, Haleeb Foods has built yet another plant in Rahim Yar Khan whose purpose is to provide Haleeb’s quality products to maximum number of consumers. Mission


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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 Vision

Most Innovative and fastest growing food company offering products enjoyed in "every home every day"


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Our Value

• • • • •

Enterprise Empowerment Accountability Trust Teamwork

Policy

We are committed to: •

•

•

•

•

•

Build branded food business to improve quality of life by offering tasty, sage, hygienically processed, and 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.


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PRODUCT LINE Dairy Products

BUTTER

CHEESE

CREAM

GHEE


TEA MAX

YOGURT

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JUICES

FUNDAY


GOOD DAY

LABBAN

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TROPICO



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TROPICO NECTAR

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CANDY UP

DAIRY

UHT MILK

CANDIA QUEEN

HALEEB BOTTLE

HALEEB RESHMI PACK

HALEEB GOLD

SKIMZ POWDER

HALEEB MILK

SKIMZ

LIQUID


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KEY COMPANIES Nestlé

Since Henri Nestlé developed the first milk food for infants in 1867, and saved the life of a neighbor’s child, the Nestlé Company has aimed to build a business based on sound human values and principles. While our Nestlé Corporate Business Principles will continue to evolve and adapt to a changing world, our basic foundation is unchanged from the time of the origins of our Company, and reflects the basic ideas of fairness, honesty, and a general concern for people. OLPERS

Engro is essentially an agro-based company that has a holistic approach to business development. In 2005, the company took a major business diversification initiative by launching its wholly owned subsidiary Engro Foods Limited (EFL). During 2006, EFL launched UHT milk and cream under the brand name OLPER’s and HCLF milk under the brand name OLWELL. EFL plant located in Sukkur was set up at a cost Rs 1.0 billion and commenced commercial production in March 2006. Another plant near Sahiwal in the Punjab is nearing completion. The EFL plan envisages a fast track growth model, driven by innovative launches to command a product range across the dairy spectrum backed by compatible milk collection infrastructure and top end in the distribution of these products. EFL is well positioned to become a substantial player in the dairy sector during the next three years. OLPER ACHIEVE 1 billion sales in 2007 which is ultimately a milestone which they have achieved. NURPUR

Nurpur, being the Market Leader in several dairy products in Pakistan, has earned a name for itself due to consistently high quality standards. Nurpur is committed to supplying the consumer and our customers with the finest, high-quality products and to leading the industry in Foundation University

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healthy and nutritious products. Nurpur supports these goals with a corporate philosophy of adhering to the highest ethical conduct in all its business dealings, treatment of its employees, and social and environmental policies. NIRALA

Nirala is also contributing in Milk Market. SITUATION ANALYSIS I) GENERAL ENVIRONMENTS GENERAL STATE OF THE ECONOMY

There is still 77% market is still to be captured due to the potential in the Pakistani milk market ECONOMIC CONDITION OF THE INDUSTRY

Economic conditions are favorable to that industry as we know that Nestle has opened the biggest milk plant of Asia in Kabirwala so there is a lot of potential. CONDITION OF THE COMPANY IN INDUSTRY

It is a very sable and an established company. They span almost all of the major cities of the country. They have a number of renowned products in their credit. Their milk is the key product to their success. II) PRODUCT MARKET PRODUCT TYPES AND BRANDS

Haleeb Foods are specialized in packaged milk and cream products. Like Haleeb, Candia, Yogurt is itself their brand names. GROWTH RATE

In Afghanistan the growth rate is high due to their product usage. In Pakistan the growth rate is still low due to target market they are focusing in Pakistan. Market Share Foundation University

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Market share of the Candia is almost 90% in Afghanistan and 10% in Pakistan. III) CUSTOMER MARKETS DEMOGRAPHIC FACTORS

This product is basically meant for families and especially those who are health conscious and are associated to their culture. This is meant for all members of the family as it is a source of nourishment, which is a requirement of every body. LIFE STYLES & PATTERNS

Normally those people who are health conscious and are busy would prefer using this product as it is an instant source of energy. Now the time is change the life style and thinking of people is change people move from villages to cities and now they r becoming health conscious they are more health conscious as compared to price conscious. USAGE PATTERNS & BEHAVIORS

Generally people of tribal areas like more caramelized milk because they make green tea with that milk and add dry fruits in it. PREFERENCES AND SPECIFIC BENEFITS

Haleeb never compromise on quality they always keep on improving the quality of life by offering, tasty, safe, hygienically processed food. some time they give attraction to their customers cause their competitors also giving attraction to customer e.g. save rs.2 on one litre Haleeb. IV) MARKETING PROGRAMS ADVERTISING AND PROMOTIONAL PROGRAMS

Candia is promoting less by Haleeb because they are currently exporting it in Afghanistan. But in future they are planning to launch it in Pakistani markets with a totally new strategy.


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PRICING PRACTICES

Price is generally low from its own Haleeb Milk Product. As well as there is no competitor to share the price. RELATIONSHIPS WITH WHOLESALER, RETAILER

They have a brand name which is worth for a lot of years; dealers wish to work with such giants. Their market reputation is very good and people are very much satisfied with the people. Company have strongest distribution network so the relation ship with dealers and all the Retailers and whole sailors are very Good and cooperative.


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Product:

Candia is Europe's Number One selling milk. Haleeb Foods Limited and Candia of France have joined hands to bring you the highest quality milk. Candia is pasteurized, homogenized, 14 -standardized, double sterilized milk. This not only ensures the highest quality, but also the best taste ever. For the first time in Pakistan, Haleeb Foods Limited has introduced milk packed in food grade plastic bottles. These bottles are manufactured from imported materials at Haleeb Foods latest plant and guarantee longer shelf life, highest quality and storage with ease of use.

Shipping Units: •

500


ml

Bottle:

12

bottles/carton 14


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1000 ml Bottle: 12 bottles/carton

PRICE:

The price is compatible with its similar product therefore it is affordable. PLACEMENT:

10 % PAKISTAN (Major Portion of N.W.F.P) 90 % AFGANISTAN (QANDOOR AND HIRAAT) POSITIONING:

"DOODH KA AISA MAZA JO PEHLI BAR MILA" PROMOTION: CHANNEL OF DISTRIBUTION AFGANISTAN

Manufacturer---Distributor---Wholesaler No promotional activities No incentives and other techniques for motivating distributers or whole seller CHANNEL OF DISTRIBUTION PAKISTAN

Manufacturer--Distributor--Warehouses--Retailer


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TACTICS PRODUCT: MILK COLLECTION AREA There are 14 zones for self-collection of milk having 28 Main centers (PHE) HFL MILK COLLECTION AREA Sr. Milk Collection No. Zones 1 Arifwala 2 Bahawalnagar 3 Bahawalpur 4 Bhowana 5 Mian Channu 6 Haveli 7 Jhang 8 Pakpattan 9 Okara 10 Rahim Yar Khan 11 Shah Jewna 12 Narowal 13 Upper Sindh 14 Lower Sindh After collecting the milk and testing for the quality the production of milk is divided to major parts They HFL have to manufacturing plants in Pakistan Bhai Peru Candia is no more manufactured in Bhai Peru plant Rahim Yar Khan Candia which is manufactured in Rahim Yar khan plant is supplied in the areas of NWFP and Afghanistan. PRICE: PAKISTAN Brands /SKU Candia 500 Ml 1000 Ml

Packaging

Retail Price

1*12

Per Pack

240 480

20 40

Afghanistan Foundation University

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The Candia has adopted a pricing policy in which there distributor is free to set his own price. Haleeb charges the same price + Transportation Expense. PLACE:

In Afghanistan the milk is available in the main wholesale markets of kandhar and Kabul, because there is no concept of retail stores. In Pakistan Candia is available in wholesale markets as well as on retail stores in NWFP. PROMOTION: DISTRIBUTION CHANNEL GENERAL

Dairy Farmer

Gawala

(Milkman)

VMCC

PHE

Company Vehicle

Sweet/Milk Shop Company Milk Plant

Retailer

Consumer


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For Candia (channel of distribution) (RahimyarKhan -NWFP--Kandhar, Kabul MARKETING STRATEGY

Candia has adopted pull strategy where the costumer has to place order to distributors on the basis of which the distributor books the order to manufacturer and on the basis of that order manufacturer the milk and then it is supplied as demand. COSTUMER--Wholesaler--Distributor--Manufacturer PROMOTIONAL DETAILS: AFGANISTAN:

IN Afghanistan there is different culture because of that there is no need of proper advertisement campaigns because demand is more through the people who are brand loyal due to Islamic background and other geographic factors. The Distributors are taking very active part there due to brand loyalty. Pakistan:

In Pakistan currently there is no promotional activities because the behavior of the people of NWFP is same as the Afghani's population so there also there is also distributor playing the major role but as compare to Afghanistan there is little bit promotions going on through billboards etc.    

Advertisement on cable News paper Banners Pamphlets


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7. KEY PRODUCT

This is also the biggest strength of the Candia milk that there is not any single product like Candia Reason for this that the Candia milk is 3 times more thicker then any other normal milk even we compare it with Haleeb. 5. UNCONTROLABLE ENVIRONMENTS

SOCIO CULTURAL

The Haleeb Is Recognized all over the world as an Islamic food company. It’s also clear from its product names like HALEEB Itself an Arabic word and LABBAN. To maintain its Islamic recognition they made several arrangements like HILAL Certification from South African Foundation University

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Hilal Council. As Ramadan is the very respectable month for the Muslims so they advertisement on aired in the last few years in the moth of holy RAMADAN also reflect that. To The dress code the women employees is also according to the Islamic values POLITICAL & LEGAL

Pakistan

has

uncertain

and

unstable

Political

conditions.

Its

government can change any day or anytime. Even people can’t recall all the names of presidents and prime ministers of Pakistan. When new government comes, it tries to impose its own rules and regulations. So in Pakistan there are certain laws for milk or diary products. So Haleeb tries to meet the requirements of all relevant legislations and regulation related to the customer satisfaction and safety, environment and other applicable laws etc. Haleeb follows all rules & laws COMPETITION

There is no competition of specific Candia product so they are not facing any competition problem. ECONOMICAL AND TECHNOLOGICAL FACTORS

The economy of Pakistan has worsened from past few years. The product Candia is a result of merger of Haleeb foods with Candia (French) so they adopted exactly the same advanced technology which the Candia (French) has in abroad. So technology wise they are superb with international standards.

8. SWOT ANALYSIS


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STRENGTH   

The Major strength of Candia is the product itself because there is no other product with such uniqueness in the market. Its thickness: it is more caramelized milk in its nature. It’s Convenience: Because it’s in bottle shape and easier to open just lid off and pour milk.

WEAKNESS  There product is ignoring female taste; Mostly Men use to drink thickest milk as compare to Women.  There is not any promotion running Only Niche Markets are there to serve like N.W.F.P and Punjab OPPORTUNITIES Big Market is there because there is 77% market share is still to be captured or waiting. 

THREAT Haleeb bottle Milk is it Biggest threat because there will be a cannibalizing situation in the market. Tetra Pack is the biggest threat for CANDIA because it is the only bottled nature product in Pakistan. 



STRENGTH AND WEAKNESSES WITH RESPECT TO 5P’S PRODUCT

There product Candia is itself Haleeb’s strength. PRICE:

Price is low as compare to uniqueness of the product because of which it act like a weakness. PLACE:

They are exporting Candia to Afghanistan which becomes there strength but in Pakistan Candia is only placed in NWFP which act as the strongest weakness because in the major cities of Pakistan is not available. PROMOTIN Foundation University

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Overall the main weakness of Candia is there poor promotion. Although they have promoted in Pakistan when it was initially launched but after that 5 years has been passed but still they are claiming to be planned. In Afghanistan though because of culture difference there is no specific need of promotion but still they can promote to capture the market from NESTLE and OLPER, BCG MATRIX (BOSTON CONSULTING GROUP)

AFGANISTAN---

<--- PAKISTAN

In Afghanistan because of its growth rate and market share which is constantly increasing Candia ranks under the star which they are eager to maintain In Pakistan the product comes under dog due to its poor advertisement MASLOW’S THEORY


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<------CANDIA


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FUTURE OUT LOOK OF THE COMPANY

Company wants to carry on with food products As well as wants to become a multinational company. The entrance in the Afghanistan market is also apart of their long term strategy because there success will motivate them to enter in other world market. CONSUMER RESEARCH

In consumer research we had interviewed couple of youngsters who are actually the target audience of Candia. On inquiring it further it was revealed that actually they doesn’t know what is Candia for there was lack of awareness .Some of them who has tasted that before said that they prefer Candia on other milk but actually because its not placed in our major areas so they have no choice to drink other milk like Olpers and Nestlé. They like the packaging and taste of Candia except one female who said that she got skin problem after using Candia for more then 2 week and after that she was asked by doctor to skip it as it was major cause of her skin problem. Generally female’s response was not positive because they like to have skimmed milk with low calories where Candia is the milk which 3 time more thicker than the normal tetra packed milk. Overall Male response after making them aware of its uniqueness was positive and they want it to be marketed professionally in whole Pakistan. MARKETING STRATEGY TARGET MARKET

health conscious people. Foundation University

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PRODUCT

Same Product Same Packaging Same Labeling PRICE

Introductory price will be same but actually the selling price will be increased at least 10% more then Haleeb to let the people realize that it’s something special. PLACE

As far as it is concerned about place Candia will be placed all over the Pakistan. All major cities like Karachi Lahore Islamabad PROMOTION CHANNEL OF DISTRIBUTION

MANUFACTURE--DISTRIBUTER-WHOLESALER-RETAILERCONSUMER

(There will be free contact through Toll free number & mail be provided to

consumer

be

in

direct

contact with manufacturer to get updated with consumer taste) PROMOTIONAL DETAIL

Promotional budget of Rs.10 Million. AWARENESS PROGRAMS Foundation University

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Karachi Lahore Peshawar (In schools free samples are distributed to young youth which is actually over target audience) EVENTS

Marathon race Lahore (February 08) will be sponsored though printing of banners of marathon race having Candia’s logo and every participant will be provided free sample. POINT OF PURCHASE

In famous marts highlighted portions will be hired for 6 months to 1 year depending upon sale of that Mart In Karachi In Lahore In Islamabad ELECTRONIC MEDIA

New advertisement of 20 sec will be on aired on these channels PTV GEO ARY SMART LOOK

This competition will be held on the major gyms of the major cities In Karachi In Lahore In Islamabad Foundation University

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Candia Milk

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