1 / 13

Got Milk?

Got Milk?. The California Milk Processor Board: Branding a Commodity. The Issue at Hand. Steady decline in milk consumption over 20 years – accelerated pace $23 million ad budget Based on milk deprivation research

nakia
Download Presentation

Got Milk?

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Got Milk? The California Milk Processor Board: Branding a Commodity

  2. The Issue at Hand • Steady decline in milk consumption over 20 years – accelerated pace • $23 million ad budget • Based on milk deprivation research • Goodby, Silverstein campaign reversed accelerating decline but has not increased consumption beyond 23 gal per person. Here is what they did.

  3. The Players • Farmers – fund campaign from profits • Processors – transform raw milk into products that hit grocer’s store • Retailers – one of most profitable products for grocery stores • Distribution channels – grocery, school districts, food service establishments [all contribute to decline in consumption] • CMPB – want to increase sales and consumption of milk

  4. The Challenge of Marketing a Commodity • More similar to product category than brand • No brand name • Too much input from suppliers (milk people) – status quo • Hard to change attitudes toward a category • Lower budgets than competition (cola) • Distribution levels are 100%, but no pressing need to purchase • Demand influenced by other products

  5. Competitive Situation • 1,805 new beverages in 1991 alone • Media spending $2 billion (beer and soft drinks) • 1975-1993 consumption of beverages increased 18% - but NOT MILK (dropped by 10%)

  6. The ‘Skinny’ on Milk • Goal: 1 additional glass per week • Some cannibalization of milk • Family unit link – 89% consumed at home • Nostalgia and ritual important • Regular times (meals) and with other food

  7. Factors in Milk DeclineUDIA 1992 study [1252 interviews] • Proliferation of other beverages • Lack of portability • Lack of flavor variety • Not thirst quenching • Lack of consumer mind share • Competitive spending level • Shared nature of consumption [cereal, cookies, PB&J]

  8. The Marketing Strategy • People had positive attitudes toward milk; but there is not a corresponding change in behavior. • Objectives: • Change consumer behavior – increase 1 glass & change way consumers think about it • Make consumers think about milk (mindshare) • Halt sales decline

  9. The Marketing Strategy • Target market • Regular users [70% Californians] • Segmented by behavior – what they liked to eat with milk • When and where it is consumed • Research • Milk deprivation research – focus groups denied milk

  10. Creative Development • No mention of health benefits (already knew that) • Never show the milk • Television ads using humor • Joint promos with Wheaties, milk coupons, POPs, shelf talkers for complements, check out dividers, billboards, print

  11. The Results [California] • 3 months – 60% aided recall; 6 months – 70% awareness level • Number of people using “several times/wk” jumped from 72% to 78% • One year later – sales volume increased 1.07% or $13 million for a total turnaround of $31 million

  12. Got Milk Goes National • Combined budget: $180 million • Co-promos with General Mills, Nestle, Quaker, Keebler, Girl Scouts • Ads with Trix, Rice Krispies, Cookie Monster, Dole – even Hot Wheels

  13. The Here and Now… • Consumption has reached a plateau. What now? • Evaluate the marketing strategy. What changes would you make? • What associations do consumers have for milk? How does this translate into brand equity?

More Related