2 got milk
TRANSCRIPT
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got Milk: Branding a Commodity
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Backdrop
Dairy Industry Stakeholders
Farmers
Processors
Retailers CMPB Formation (1993)
Milk consumption declined (70s & 80s)
Beverage CategoryTotal growth of 18% (70s & 80s)
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Question 1
A. What associations do consumers have for milk?
B. What are the implications of these associations interms of building brand equity for and increasingthe consumption of milk?
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California Milk Processor Board
Problems & Challenges
Decline In Milk Consumption
In Profit
In Milks market share in beveragesmarket
Stakeholders Conflicting Objectives
Competitive nature of
Processors Fund Raising
Commodity Marketing Mostly Pull Strategy
Changing Category Attitudes Cross Elasticity of Demand
Target of Community Activist
Limited Budgets
Competitors Bigger Campaign budgets
Brand focused Marketing Strong Brand Associations
Coke
Snapple
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Consumer Associations
MILK
User Imagery
-Children-Adults / Teenagers-Baby beverage: outside the home
Product-Related Attributes
-Not thirst quenching-Lack of flavour-Milk is White & Sold in Gallons
Functional Benefits-Nutritious-Calcium Rich
Experiential Benefits
Filling Drink
History & Heritage-Nostalgia-Ritual
Usage Imagery
-Taken at Home- Complements other food types
Harmful
Brand Personality- Dull & Boring
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Implications of Associations
Salience
Performance Imagery
FeelingsJudgments
Resonance
Social
ApprovalHealth
Dull & Boring
Personalitymismatch
Rituals
Milk
Diminishing BehavioralLoyalty
Less Intense Activity
Lowconsideration
Credible
Quality
Nutritionaldrink
Reliable
Style Missing
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Question 2
A. Evaluate the CMPB marketing program now andback in early 90s. What do you see as itsstrengths and weaknesses?
B. What changes do you make?
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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
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New Marketing Campaign
Building Brand Equity
Objectives- Change Consumer Behavior
- 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
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Got Milk Campaign Creativity at its Best- Deprivation Strategy: Food was shown without Milk
- Sell Food + MILK- Entertain but sell: (FunnyRelevant)
- Treat the consumer with respect: Get Milk or GOTMILK !
- Brand Signature: Got Milk ?
- Longevity of the Campaign
- Making Milk look cool
- Co-branding
New Marketing Campaign
Building Brand Equity
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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- Ideal time to communicate
On the way to the store
In the store
At home
Synchronization of TV ads & consumption
timings Breakfast late afternoon late evenin
New Marketing Campaign
Building Brand Equity
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Evaluation
Got Milk Campaign
6% increase in no of milk consumers.Changingconsumer behavior
1.07% increase in Sales VolumeSales Increase
Ads - 60% Aided Recall within 3 monthsMaking
Consumers Think about Milk
Licensing ofGot Milk?National Dairy
Advertisement of the Year | Effie Award1995
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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 andsignature Got Milk? Iconic Status
Non Milk drinkers were not targeted (Weakness)
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Question 3
A. Evaluate their Hispanic marketing initiatives ?
B. Does the CMPB risk alienating its current
consumer base?
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Hispanic marketing initiatives
A. Hispanic population 32.5% of California
B. Highest annual expenditure on Milk per houshold
i.e., $165C. Different meaning different perceptions
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Question 4
A. There are several areas of growth that lay ahead of
CMPBhealth, cheese, Hispanic, and new
channel of distribution. Given the trends, what
should they do and how should they do it?
B d V l Ch i
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Brand Value Chain
Marketing
Program
Investment
IntegratedCampaign
Got Milk
$23m
Investment
Customer
Mindset
AidedRecall 60%
SFUsAssoc
BrandBreadth
Market
Performance
Growth1.07%
MoM Growth6%
in weeklyhouseholdconsumption
Shareholder
Value
$1 Bn
(BrandGoodwill)
ProgramQuality
Marketplace
Conditions
Investor
Sentiment
- ClearlyCommunicated(Clarity)
- Relevance
- DeprivationStrategy (Distinctive)
- Consistency
-Competitive reactions
-Channel Support
-Customer size & Profile
-Market Dynamics
-Growth Panel
-Risk Profile
-Brand Contributions
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Question 5
A. How long can the CMPB keep running the gotmilk campaign?
B. What can they do to keep the message and
strategy fresh in consumers minds?C. Are there other examples of other successful
campaigns that ran this long?
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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
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Thanks