Transcript Got Milk? - Villanova University

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
• Goodby, Silverstein campaign
reversed accelerating decline but has
not increased consumption beyond 23
gal per person. Here is what they did.
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
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
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%)
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
Factors in Milk Decline
UDIA 1992 study [1252 interviews]
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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]
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
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
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
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
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
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?