California Milk Processor Board (Branding a Commodity)

California Milk Processor Board (Branding a Commodity) Presented By Namrata Dutt 25 Narayan Kumar 26 Preetika Anand 28 Puneet Puri 30 Rahul Soni 32

Presentation Flow …. • Backdrop • Problems & Challenges • Consumer Association with milk • Implications on Brand Equity • Got Milk Campaign • CMPB Marketing Program • Evaluation • Strengths & Weaknesses • Next Steps

Backdrop • Dairy Industry Stakeholders • Farmers • Processors • Retailers • CMPB Formation (1993) • Milk consumption declined (70’s & 80’s) • Beverage Category • Total growth of 18% (70’s & 80’s)

(Q.1) Problems & Challenges • Stakeholders • Conflicting Objectives • Competitive nature of Processors • Fund Raising • Decline • In Milk Consumption • In Profit • In Milk’s market share in beverages market • Competitors • Bigger Campaign budgets • Brand focused Marketing • Strong Brand Associations • Coke • Snapple • Commodity Marketing • Mostly Pull Strategy • Changing Category Attitudes • Cross Elasticity of Demand • Target of Community Activist • Limited Budgets

Question 2 • A. What associations do consumers have for milk? • B. What are the implications of these associations in terms of building brand equity for and increasing the consumption of milk?

Consumer Associations … • User Imagery • Children • Adults / Teenagers • Baby beverage: outside the home Usage Imagery -Taken at Home - Complements other food types • Product-Related Attributes • Not thirst quenching • Lack of flavour • Milk is White & Sold in Gallons Brand Personality - Dull & Boring MILK • History & Heritage • Nostalgia • Ritual • Functional Benefits • Nutritious • Calcium Rich Experiential Benefits Filling Drink Harmful

Nutritional drink • Reliable • Style Missing • Moderate depth • Low breadth • Personality mismatch • Ritual • No PODs • POP’s • Low consideration • Credible • Quality • Social Approval • Health • Dull & Boring • Diminishing Behavioral Loyalty • Less Intense Activity Implications of Associations… Resonance Feelings Judgments Imagery Performance Brand Salience Salience

Question 2 • A. What associations do consumers have for milk? • B. What are the implications of these associations in terms of building brand equity for and increasing the consumption of milk?

Old Marketing Campaign • “Milk Does a Body Good” Campaign • Displayed target group drinking milk • Emphasis on Nutrients and benefits • Milk was shown without food • Generated positive attitudes towards milk

New Marketing Campaign – Building Brand Equity • Objectives • Change Consumer Behaviour : Increase Brand Breadth • Make Consumers think about milk : Refine Brand Image • Halt Sales Decline • Target Market • Regular / Loyal users of Milk (70%) • Behavioral Segmentation : When & Where consumers drink Milk • Identify fresh insights of the target consumer • FGDs / Experiential Results

New Marketing Campaign – Building Brand Equity • Got Milk Campaign – Creativity at its Best • Deprivation Strategy: Food was shown without Milk • Sell  Food + MILK • Entertain but sell: (Funny–Relevant) • Treat the consumer with respect: Get Milk or GOT MILK ! • Brand Signature: ”Got Milk ?” • Longevity of the Campaign • Making Milk look cool • Co-branding

New Marketing Campaign – Building Brand Equity • Integrated Communication Strategy • Priming purchases at PoS • Billboards • Bus Stop ads • Got Milk checkout dividers • PoP displays • Got Milk stickers on bananas etc. • Media Strategy • 3 ideal times to communicate • On the way to the store • In the store • At home • Synchronization of TV ads & consumption timings • Breakfast, late afternoon, late evening

Question 3 • A. Evaluate the CMPB marketing program ? • B. What do you see its strength & weaknesses ? • C. Would you do anything differently ? • D. What would be their next steps ?

Evaluation - Got Milk Campaign • 6% increase in no of milk consumers. – Changing consumer behavior • 1.07% increase in Sales Volume – Sales Increase • Ads - 60% Aided Recall within 3 months – Making Consumers Think about Milk • Licensing of Got Milk? – National Dairy • Advertisement of the Year | Effie Award – 1995

Brand Value Chain • Market Performance • Growth 1.07% • MoM Growth 6% • ⁭ in weekly household consumption • Marketing Program Investment • Integrated Campaign • Got Milk • $23m Investment • Customer Mindset • Aided Recall – 60% • SFU’s Assoc • ⁭ Brand Breadth • Shareholder Value • $1 Bn (Brand Goodwill) Program Quality Marketplace Conditions - Clearly Communicated (Clarity) - Relevance - Deprivation Strategy (Distinctive) - Consistency Investor Sentiment -Market Dynamics -Growth Panel -Risk Profile -Brand Contributions -Competitive reactions -Channel Support -Customer size & Profile

Strengths & Weakness • Collaborative Marketing • Marketing with complementary foods • Right Target Customers • Partnership with ad agency • Extremely creative campaign • Integrative Marketing • Television • Billboards • Memorable and inspiring brand slogan and signature • Got Milk? – Iconic Status • Non Milk drinkers were not targeted (Weakness)

Next Steps • Invest in R&D • Extend expiration date • Expand number of Flavors • Channel Expansion • Target Latino Market • Heavy Users with +ve attitude • Largest growing section • Licensing • National Dairy Program • Other Countries • Co-Branding • Brand Extension

Thank You

California Milk Processor Board (Branding a Commodity)