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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

http://www.youtube.com/watch?v=9qhqU8SkZu0http://www.youtube.com/watch?v=9qhqU8SkZu0

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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

http://01.mov/http://01.mov/

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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

http://russian_family001.mov/http://russian_family001.mov/http://russian_family001.mov/http://russian_family001.mov/

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Thanks