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Making the Most of MilkPEP Tutorial Session National Dairy Sales and Marketing Meeting July 28-30, 2008 What This Tutorial Is About Provide insight and understanding on how your investment is used to develop programs to help you sell milk

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Making the Most of MilkPEP Tutorial SessionNational Dairy Sales and Marketing MeetingJuly 28-30, 2008

what this tutorial is about
What This Tutorial Is About
  • Provide insight and understanding on
    • how your investment is used to develop programs to help you sell milk
    • how you can maximize your investment in the MilkPEP program
    • all the various components of the program that are available to you
  • Give you an opportunity to ask specific questions about use of the programs
  • Provide an opportunity to learn from those who maximize their investment
agenda
Agenda
  • About MILKPEP
  • Program Development Process
  • Types of Programs You Can Be Involved In
    • Retail
    • Schools
    • Grassroots
    • Local Marketing
  • MilkPEP and DMI Working Together
  • Overcoming Obstacles
  • How To Make The Most of MilkPEP
  • Who Uses the Programs/Best Practices
milkpep s mission
MilkPEP’s Mission
  • The primary objective of MilkPEP is to sell more milk
  • MilkPEP does this by enhancing market conditions for milk
    • Improving milk’s image
    • Communicating milk’s nutritional benefits
    • Activating milk sales
    • Identifying real business-building opportunities
  • The primary tool by which MilkPEP carries out it’s mission is the national “Milk Mustache/got milk?” campaign
    • A consumer driven campaign to increase their consumption of milk
what is milkpep
What Is MilkPEP?
  • MilkPEP is a national milk marketing program created, funded and overseen by the fluid milk processing industry
    • The Milk Industry Foundation (MIF) sought legislation which established the “Act & Order” which created the MilkPEP program
    • Processors then voted a mandatory assessment of 20 cents per cwt of Class 1 fluid milk
    • The assessment is on those processors who process 3MM pounds of milk or more each month

What does this mean? It means YOU pay for the program.

why was milkpep created
Why Was MilkPEP Created?
  • MilkPEP was created in 1993 to stop the decline in milk consumption
    • Since the 1970’s per capita consumption of milk has steadily declined in the wake of all the other beverage choices available to consumers
  • The industry realized that milk needed to be more competitive in how it was marketed to consumers so it would not lose any more ground to competitors
who does milkpep benefit
Who Does MilkPEP Benefit?
  • The MilkPEP program is funded by approximately 90 dairy companies across the county equating to 250 processing locations
    • These processors are large, medium and small
  • By law the program must benefit all of these processors equally, regardless of size or dollar contribution
    • The variety of programs and materials available make it easy to participate on the level each processor deems appropriate for them
      • National retail promotions
      • Grassroots events
      • Other marketing materials to be used locally (MM celebrity posters, generic POS materials, school materials, etc.)
  • Every processor who pays into the program should get worth from their investment
milkpep s equitability clause
MilkPEP’s Equitability Clause
  • By law the program must benefit all processors paying into the program. That’s why we can’t…
    • Execute account specific programs
    • Customize materials using MilkPEP dollars
      • Processors, can however, use MilkPEP provided artwork to create their own customized materials
    • Give money to retail accounts, processors, schools, etc. to create their own programs
how does milkpep work
How Does MilkPEP Work?
  • MilkPEP is overseen by a 20 member Board of Directors made up of various milk processing companies throughout the country
  • MilkPEP staff has a rigorous planning process during which key research and trends are identified that will maximize milk consumption
  • MilkPEP staff meet with the Board three times per year to review messaging, programs and budgets
    • Board meetings are held in January, April and July
  • The Board is very active in the planning of the programs and approves all messaging and programs before they are executed
milkpep board committees
MilkPEP Board Committees
  • Each Board member serves on a planning committee
    • Moms Committee
      • Development programs that reach general market moms
    • Hispanic Committee
      • Develops programs that reach Hispanic moms
    • Teens Committee
      • Develops programs that reach the teen target in schools and beyond
    • Business Development/Research Committee
      • Incubates and identifies opportunity areas for the development of milk sales
milkpep staff
MilkPEP Staff
  • Kurt Graetzer – CEO
  • Julie Buric – VP, Marketing
  • Julia Kadison, VP, Marketing
  • Mike Simmons, Director, Processor Relations
  • Kikke Riedel - Director, Research
  • Victor Zaborsky – Director, Marketing
  • Alison Kiczek, Manager, Marketing
  • Miranda Robertson, Manager, Marketing Communications
  • Crystal Monkman, Marketing Coordinator
milkpep agencies
MilkPEP Agencies
  • Lowe Worldwide
    • Celebrity Campaign
    • National Advertising
  • Draft FCB
    • Retail Promotions
    • School Promotions
  • Weber Shandwick
    • National and grassroots PR
  • Siboney
    • Hispanic Advertising and PR
  • Outloud LLC
    • Processor and trade communications
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National Advertising

Television and print

Research

national got milk?/

Milk Mustache platform

Indicates planning trends to help sell more milk

National Public Relations

media impressions

Delivers health and nutrition messages

Promotions

Grassroots Events/Local PR

Provides local marketing opportunities to processors

Drives sales at all retail outlets

Tools for local marketing

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Primary target:

Moms

(general market and Hispanic)

Secondary Target: Teens/Tweens

  • Makes family’s purchase decision and does the shopping
  • Oversees the health and happiness of her family
  • Influences what her family consumes
  • Risk target with consumption declining around 9 years old
    • Begin to make their own decisions
    • Mom makes consumption choices before age 9
  • Important to capture market now as teens rarely return as milk consumers later in life

Who Does MilkPEP Target?

milkpep websites
Trade WebsiteMilkPEP Websites

Processor Website

MilkPEP.org

Milkdelivers.org

The site for retailers, schools, food service, etc. with information on programs and research

For milk processors only with all information on programs and research

Consumer Website

Consumer Website

Consumer Website

Hispanic website

Whymilk.com

Eligeleche.com

Bodybymilk.com

Mom website

Teen website

Note: gotmilk.com is the website of the California Milk Processor Board and is not related to MilkPEP

the difference between milkpep and dmi
The Difference Between MilkPEP and DMI
  • MilkPEP
    • Works on behalf of milk processors
    • Is fluid milk only
    • Administers the National Milk Mustache/got milk? Campaign
    • Is located in Washington, DC
  • Dairy Management, Inc. (DMI)
    • Works on behalf of milk producers (dairy farmers)
    • Is milk, cheese and yogurt
    • Administers the 3-A-Day of Dairy program
    • Is located in Rosemont, IL
planning calendar
Planning Calendar
  • MilkPEP staff and agencies begin the planning process 1 year before release of new programs.

JAN

MAR

NOV

Initial planning meeting to identify issues, key trends, implications, and optimal time periods that will impact upcoming year

MilkPEP Committee to review preliminary programs by target

Present key planning implications and guiding principles to the Board

MAY - JUN

JUL

APR

Final Development of program Details

MilkPEP Board meeting to review and approve final plan for upcoming year

National Dairy Sales and Marketing Meeting to present programs to the dairy industry

the national dairy sales and marketing meeting
The National Dairy Sales and Marketing Meeting
  • The National Dairy Sales and Marketing Meeting marks the kick-off of a new year of programs
    • Review where we’ve been the previous year with results
    • Introduces new planning platforms and campaigns
    • Provides workshops on all new programs
      • Small setting to encourage questions and provide input
    • Provides specific examples and case histories to illustrate how to use the programs and make them your own
other ways we communicate to processors
Other Ways We Communicate to Processors
  • MilkPEP has developed an arsenal of communication tools that are used to communicate the new programs and other information to processors

Alerts

Informs processors of breaking news

MilkPEP.org

Website for milk processors where all information and resources can be found

Monthly Email Updates

Provides up to the minute updates and action steps

Monthly Email Updates

Newsletter issues three times per year focused on key time frames

Daily Trade Activity - Trade ads, editorials stores, etc.

Action: Make sure you are on our mail and email list

we also communicate to the trade
We Also Communicate to the Trade
  • MilkPEP also has an extensive communication plan to the trade to keep them abreast of opportunities and aid in sell in
    • Trade Ads
    • Online Banners on websites
    • Editorials
  • We communicate to all retail and to schools
the milk marketing kit
The Milk Marketing Kit
  • The Milk Marketing Kit is your marketing bible for MilkPEP
    • Provides sales brochures on each program
      • Overviews and details to date
      • Broken into target sections
    • Provides order forms so you can sign up for each program
    • Provides Grassroots Event Sign-up Sheets
    • Provides other resources to help you access the program
  • Graphics are not final. They are meant to provide a direction for sell in.
  • Once program details are finalized creative concepts are developed or refined
    • Creative may evolve from what’s shown in sales kit
    • Final artwork is typically available two months prior to the program’s in-market date for use in ad circulars, local extensions, etc.
    • The 2 month window allows for last minute sign up and to be sure we are printing enough materials to meet demand
questions about planning
Questions About Planning
  • Why does planning begin so early?
    • Our objective is to provide information to the industry in a timely fashion to allow for ample sell in and allow processors to plan early
    • The July/August timeframe for the sales meeting was established by talking with retailers and processors about an optimal time to receive information for their own planning purposes
  • Why aren’t all the programs finalized when we see them in July at the Sales Meeting?
    • There are many working parts to the development of programs such as partnerships, retail offers, celebrity use, legal review, etc. that often take more time to finalize
    • When we work with partners they sometimes change the details of their programs which in turn affect MilkPEP programs
questions about planning27
Questions About Planning
  • Then why doesn’t MilkPEP wait until later in the year to have the meeting?
    • MilkPEP feels it is best to inform the industry of the overall program as early as possible for sell in purposes and then finalize details like point-of-sale materials, events, etc. at a later date
    • This enables milk processors to lock up an entire calendar of events for milk promotion at an early date
  • My retailers won’t accept POS if they can’t see it beforehand. What can I offer them to secure their sign up?
    • POS materials are similar in size and shape from previous promotions, retailers can reference what they received previously
    • We also have sample kits available to ship one month before an event that can be shipped to your retail contacts per your request
typical programs for processor participation
Typical Programs for Processor Participation
  • There are basically four types of programs that processors can be involved in:
    • Retail Programs
    • School Programs
      • Body By Milk
    • Grassroots Events/Local Public Relations
      • Stimulated by the National PR team
    • Local marketing
      • Activities generated by processors using MilkPEP resources
  • Information on all current programs are included in the Milk Marketing Kit or on-line at milkpep.org
retail programs
Retail Programs
  • We currently utilize 3 types of retail programs:
    • Feature Incentive Programs
      • Encourages the feature of milk at retail to stimulate sales
      • Requirements:
        • Retailers promote all milk or flavored milk during a specified time period
          • Promotion includes feature ads, use of POS, sampling, displays, etc.
        • Retailers receive prizes for their promotion activity based on their activity level
        • Retailers must show proof of compliance before receipt of prizes
    • National Sweepstakes
      • Big news offer stimulates excitement at retail and product purchase (e.g., $100,000 Chief Health Officer Salary Sweepstakes)
      • Requirement: Post POS materials in the dairy case
    • Partner Offers
      • Offer of “get something with milk purchase” stimulates milk purchase (e.g., milk caps for free weeks at Curves)
      • Requirement: Post POS materials in the dairy case
dairy laws for promoting milk at retail
Dairy Laws for Promoting Milk at Retail
  • State dairy laws do exist that can prohibit milk promotion if it affects price
    • Commonly the states have price limits on milk and the price of milk cannot fall below these limits
    • Coupons and discounts on milk are the primary offenders
  • These laws should not stop you from using MilkPEP programs at retail
    • All MilkPEP programs are approved by all states
    • We send problem states information on our programs to get their approval
    • MilkPEP programs are not based on affecting the price of milk
      • Feature incentive programs do not have to be price based
      • National sweepstakes do not affect price
      • Partner offers do not affect price
retail program sign up
Retail Program Sign Up
  • POS can ship directly to stores for store manager installation
    • This is why we ask for store lists
  • Processors can request that a quantity of POS kits be sent directly to them for installation
    • No store list required
  • You must fill out an order form for either of these options so we can ship materials in accordance with your specifications
  • For Feature Incentive Programs you and your retailer must choose a level of feature activity so we know prize quantity to be ordered
    • Proof of compliance is a requirement if prizes are to be received
    • Compliance packages are sent to all participants and must be returned with copies of ads, pictures of POS, etc.
retail sell in process
Retail Sell-in Process
  • The sales brochures are to be used as sell in tools for your accounts
  • Processors are free to call on any of their accounts in their area
    • Grocery (chain and independent)
    • C-stores, Drug Stores, Mass Merchandisers
  • The S/Rs also make calls on what they call “Key Accounts”, the larger grocery stores
    • S/Rs have had long term relationships with these accounts
    • They do sell in the MilkPEP programs as well, but they are not exclusive
  • You are free to work with your accounts in any way you choose
    • Processor takes the lead with the account
    • Do a coordinated sales calls with your S/R
    • Let the S/R take the lead on initial sell in then processor arranges a separate follow up call to secure promotion activity for their brands and make sure POS is installed
faq s for retail programs
FAQ’s for Retail Programs
  • Why is the order form so long?
    • We have to collect the appropriate information for materials shipping and tracking of participation
    • And we have to know the chosen feature activity to plan for the quantity of prizes to be ordered
  • Do I have to fill out one order form for each account I sign up?
    • Yes. If we do not get an order form for each account we cannot fulfill and track orders
  • Aren’t these retail programs only for grocery stores? What about my other accounts?
    • The retail programs offered can be used in any retail location to great success. For any given program we have many c-stores, drug stores, etc. that sign up and receive POS materials.
    • All retailers can also perform some type of feature activity. We are very flexible in the requirements for feature programs so that any retailer can participate
school programs
School Programs
  • Body By Milk is the national school program from MilkPEP
  • MilkPEP automatically ships banner and poster kits to 100,000 schools across the country
    • Processors do not have to order materials unless their schools did not receive the kits
  • MilkPEP also has a communication plan in place that informs school food service professionals about the Body By Milk program and gain acceptance of the materials in schools
  • The processor opportunity is to build on MilkPEP’s school efforts by doing their own local marketing in schools
    • Sampling
    • Contests
    • Adding flavors
  • Action: Processors work with schools to ensure implementation of Body By Milk materials
faq s for school programs
FAQ’s for School Programs
  • Do I have to order the kits for my schools?
    • No, they are shipped automatically two times per year
    • Go to milkpep.org to make sure your schools are on the mailing list
  • I’m confused about flavor formulation for schools. What are the requirements?
    • Currently, various recommendations are being considered but none are yet mandatory
    • MilkPEP recommends reformulating your flavored milks for schools to 150 calories per an 8 oz. serving
    • Flavor Formulation Seminars can be conducted for your dairy by calling Alison Kiczek at 202-220-3558
grassroots events local pr programs
Grassroots Events/Local PR Programs
  • These events are driven by the national PR team and are conducted to drive local media impressions for milk and give processors the opportunity to showcase their brands in the context of national programs
    • Milk Mustache Mobile Tour
    • Other local event tours such as Halloween
  • Our national PR team works with processors in various markets to set these events up and secure local PR
    • Information is sent to our processor mailing list with details about the events and to solicit processor sign up
    • Processors must fill out the form to get activity in their market
    • Our national PR team will call all processors in the areas to solicit participation
  • The processor opportunity is to show up at the events and sample their products to build their brands
faq s for grassroots programs
FAQ’s for Grassroots Programs
  • The Milk Mustache Mobile never comes to my market. Why not?
    • The primary objective of the MMM is to generate media and that is driven by market size
    • Usually every processor can be accommodated in one of their markets, so please fill out the form and the team will be in touch with you
  • Who is responsible for booking the MMM, the processor or the S/R?
    • The processor is the primary driver of selecting locations for the MMM. They are the brand owners.
    • The S/R’s may help with an event with the knowledge of the processor, but cannot make arrangements on their own
    • It’s best to work together to maximize the biggest opportunities
faq s for grassroots programs39
FAQ’s for Grassroots Programs
  • Do I have to take the MMM to a retail store?
    • No. You are free to have the MMM at consumer events or other venues such as state fairs
  • Can I have my own event or do I have to share with other processors?
    • If you request a specific event or account or school it’s all yours
    • Kick off events in markets are open to all processors in the area
local marketing
Local Marketing
  • Activity stimulated locally by processors using MilkPEP materials
  • The Milk Marketing Catalog features an assortment of materials that can be used throughout the year for any type of marketing activity
    • Event-In-A-Box Kits
    • Sampling kits
    • POS materials
    • Brochures
    • Celebrity posters
  • MilkPEP.org features other resources for local marketing materials
    • Premium liquidation information
    • Where to purchase got milk? Premiums
    • Artwork for packaging, POS, etc.
  • Processors can also request MilkPEP artwork to develop and customize their own materials
local marketing41
Local Marketing
  • Use of “got milk?”
    • You can use the approved MilkPEP or DMI materials with the got milk? logo
    • MilkPEP does not own the “got milk?” logo therefore cannot give the rights to its use
      • It is owned by the California Milk Processor Board (CMPB)
    • You can seek the use of “got milk?” for your brand from CMPB by calling Steve James at 949-481-6620
  • Use of the Milk Mustache
    • You must seek approval of the Milk Mustache for local use through MilkPEP
      • Send materials for approval to Mike Simmons
    • You cannot take national Milk Mustache materials or properties and use them locally without express approval from MilkPEP
      • Call Mike Simmons to seek approvals
faq s for local marketing programs
FAQ’s for Local Marketing Programs
  • Do these materials cost me anything?
    • The catalog materials are available to you for FREE
    • The premiums available through the liquidation program require you to pay for shipping and handling
      • S&H based on your total order
    • Are there limits to how much I can order?
      • Yes, sometimes there are limits. Those limits are communicated in the catalog or on the website
  • Are there limitations to the use of these materials?
    • Yes, the materials must be used for milk marketing purposes only
    • No personal use is permitted
slide44
DMI Business Plan “Go-To-Market” Role

Work proactively and in partnership with leaders and innovators to increase and apply knowledge that leverages opportunities to expand dairy markets

CURRENT CONSUMER SALES

PROCESSING & FILLING

DISTRIBUTION

COW

POTENTIAL SALES

UNMET DEMAND

44

slide45
DMI Long-Term Goals
  • Increase current and life-long consumption of dairy products among children by an improved product experience and increased nutrition knowledge.
  • Improve availability of strategically important and consumer desired dairy products and ingredients that lead to category growth.
  • Motivate utilization of knowledge and information among leaders and influencers to enhance value and drive dairy sales.

45

slide46
DMI and State & Regional Priorities

Milk/Cheese/Ingredient

Innovation

Processor/Manufacturer

Collaboration

Child Nutrition &

Fitness Initiative

NFL Partnership

Nutrition Affairs

-Nutrient Rich Foods

-Food Groups to

Encourage

-3 Servings of Dairy

School Partners

Health Professional Partnerships

Leverage Knowledge to Stimulate Growth

Export Opportunities

Nutrition Science & Product Research

Dairy Aisle Reinvention

On-Farm Values

and Technology

Issues/Crisis

Management

Sustainability

Protect Dairy’s Nutrition Franchise

Enhance Dairy Industry Image

46

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Get to know key contacts in local market

Understand MilkPEP and DMI/SR resources

Discuss programming calendar and roles

Look to State & Regional units for:

Retail program support

State and local nutrition affairs and communications

Look to DMI functional experts for:

Nutrition and Product Science

Market and Consumer Research

Business Development Testing/Support

How Can We Coordinate Activities?

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Overcoming Obstacles
  • My stores have a clean floor policy – no POS allowed. What do I do?
    • The Feature Incentive programs don’t require POS installation. You can promote milk in any way that is acceptable to the retailers
    • Promotional graphics are available to use in retail ads and other promotional vehicles
    • Go to www.milkpep.org to download or call 1-800-945-MILK
  • I don’t have the time to present the program.
    • We find that after the first sell-in retailers know what to expect and sell in requires little time
    • Coordinate sell in on your regular account calls
    • Coordinate with your S/R to help with sell in
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Overcoming Obstacles
  • I’m unsure about how to use the program.
    • We are here for you, we offer a number of support options
      • Go to www.milkpep.org for information, instructions, and ideas
      • Call 1-800-945-MILK with questions
      • Contact Mike Simmons ([email protected] or 202-420-0468)
  • Do the programs work?
    • MilkPEP performs several sales analyses each year that indicate all milk marketing activity is contributing to incremental milk sales
      • Matched store sales analysis showed stores that participated in the Halloween 2006 program had a 10% increase in volume versus those that did not participate
      • Our annual Marketing Mix Analysis showed that MilkPEP promotional activities drove 22.2MM incremental gallons in 2007*

*Marketing Management Analytics TTL US Grocery YTD 1/07/07 – 11/04/07

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Overcoming Obstacles
  • I want to build my brand and I’m still unclear of how MilkPEP can help with that.
    • The Feature Incentive programs are all about getting your brand in displays and in feature ads
    • The local PR events attract local media and many consumers. Being present at the event and sampling your brand builds awareness and allows you to build your identity in your market
    • You can use MilkPEP artwork to create your own branded materials
  • I don’t have any marketing dollars available to me to market milk.
    • MilkPEP programs are free to you. You just need to fill out the order forms.
    • The Milk Marketing Catalog has a variety of free materials to help you market milk
slide54
Overcoming Obstacles
  • The programs are geared to be used by only the large grocery chain accounts.
    • For any given promotion a total of approximately 15,000 Independent Groceries, Mass Merchandisers, C-Stores, and Drug stores have executed the MilkPEP promotions
  • The MilkPEP program favors larger processors.
    • We have plenty of examples of all types of processors, large, medium and small using the MilkPEP programs and materials to great success
    • You’ll see the examples during the MilkPEP Awards luncheon and in the workshops
    • Or go to milkpep.org to see the success stories
slide56
Appoint One “Point Person” at Your Location
  • A best practice we have seen is to have one person per processing location be the owner of the MilkPEP program
    • They become the “trainer” for the entire sales and marketing staff
    • They receive all information and updates and disseminate that information to the team
    • They are the “go to” person for the staff
    • They have a close connection with Mike Simmons, Director of Processor Relations, and will receive all up to date information and instruction
    • They will help your location maximize your investment in MilkPEP
slide57
Utilize the Resources Available in the Milk Marketing Catalog
  • The Milk Marketing Catalog contains FREE resources you can use in your everyday marketing efforts
    • Milk Mustache celebrity posters
    • Sampling kits
    • Educational brochures
    • Generic POS Materials
  • Shop on-line at milkpep.org
  • Call 1-800-945-MILK

The Materials are FREE

slide58
Be Present at Grassroots Events in Your Market
  • Grassroots events are huge brand building opportunities for your dairy
    • Be present and sample your product
    • Hand out marketing information on your brand
    • Hand out coupons to stimulate purchase
    • Bring your mascot to the event to build brand affinity
  • Create your own grassroots events using local materials available through the Milk Marketing Catalog
slide59
Use MilkPEP.org
  • This is the processor website where you can find all the most up-to-date information and resources
    • Promotion details
    • Packaging artwork
    • Ad artwork
    • Order premiums
    • Order materials
slide60
Use the Milk Marketing Kit
  • The Milk Marketing Kit is your starting point for sell in
    • It contains sales brochures to use with your accounts
    • It gives you a head start on sell in
  • Use it to lock up an entire year’s worth of dairy promotions
  • Display the Integrated Program Calendar in your sales room so it’s an easy reminder for you and the entire sales team of what’s coming up
access the milk promotion hotline
Access the Milk Promotion Hotline
  • Call 1-800-945-MILK for questions on orders, accounts, marketing materials, etc.
    • Live call center and customer service line
    • Handles Retail Kit Sign-ups and Fulfillment
      • Manages order forms
      • Provides kit packing and shipping services
    • Request the Milk Marketing Catalog and place orders
    • Find Information on Feature Incentive Compliance and Fulfillment
    • Provides status of prize fulfillment for Feature Incentive programs
slide62
Call Mike Simmons
  • Mike is the man in the field and is available to you for questions and visits

202-420-0468

[email protected]

slide63
Milking It: Make the Most of MilkPEP

MilkPEP Award entries from 2007 and 2008 were reviewed to develop Success Stories for Processors to apply. Twenty-nine stories were researched and summarized to provide further information and advice for application in your market.

Look for the Success Stories on www.milkpep.org under the tab “Make The Most Of MilkPEP”

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