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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

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Got Milk?

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  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?

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