got milk banding a commodity

8/11/2019 Got Milk Banding a Commodity

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Astrid JamesAbdulwali Alaji

Ryan Rego

Sayyed Latif

Pralahad Naik

Group 5 :Brand Management

Case: got milk?BRANDING A COMMODITY

Group 5


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INTRODUCTION

got milk?One of the most powerful ad campaigns of the

1990s was borne out of necessity.

There had been a steady decline in milk consumption, andthe decline rate started to accelerate.

To revitalize the product sales, MANNINGand the ad

agency GOODBY, SILVERSTEIN & PARTNERS together

developed the got milk?campaign.

The campaign revolved around the m ilk d epr ivat ion

STRATEGYthat reminded consumers of the need and

importance of milk in their routine lives.


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THE DAIRY INDUSTRY

FARMERSwho produce milk

PROCESSORSwho convert raw milk into whole &

lower fat milk

RETAILERS

who sell milk OTHER DISTRIBUTION CHANNELS who sell milk

CMPB California Milk Processor Board


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MARKETING BRANDS V/SCOMMODITIES

The strategies behind marketing a commodityand a branded

productare very different !

SUPPLY SIDE DIFFERENCES Too many decision makers

Small Budgets

Slow Budget Process

Push v/s Pull

DEMAND SIDE DIFERNECES

Changing a Category v/s market share

Influenced by other Industries


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THE BEVERAGE

CATEGORY

Beverages

Water Flavoured

Non-Alcoholic

MilkHot

BeveragesJuices Soft Drinks

Alcoholic

Wine BeerDistilledSpirits

The Beverage Industry


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PREVIOUS

MILK PROMOTION CAMPAIGNS


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AD CAMPAIGNS

Adults: Milk is good for you & it should be a regular part ofyour Diet

Teens: Milk makes you Beautiful & Strong

Kids: Milk is Cool & Fun

Milk Does A Body Good

Good Fast Food

GOT MILK? Milk Mustache


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THE UDIA CONSUMER STUDY

The United Dairy Industry Association commissioned a

marketing research study, that attempted to gauge consumer

preferences by conducting personal interviews with

consumers of all age groups

The UDIA study revealed certain factors that could be thecause for decline in milk consumption:

Proliferation of other beverages

Lack of portability

Lack of flavor variety Not thirst quenching

Lack of consumer mind share

Shared nature of consumption


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Cmpbs branding strategybranding a commodity

Developing a Strategy:

Invest in R&D to expand available flavors

Expand potential usage occasions

Initiate Joint Promotions with consumer packaged goods

Develop an Advertising Campaign to clarify health benefitsof milk

Use advertising to Generate a new image for milk

Target Hispanics and Aging Californians

3 Campaign Objectives needed satisfaction:

CHANGE CONSUMER BEHAVIOR

INCREASE MIND SHARE

HALT SALES DECLINE


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Cmpbs branding strategy Target Market:

Regular Usersof milk were targetedformed 70% of Californianmarketand they already had favorable attitude towards drinking milk

got milk?Creative Development:

Deprivation Strategyto increase mind share for milk

Television Ads:

TV ads built up the tension that was critical to the deprivation strategy

It used food compliments to promote the NEED felt for milk!

The campaign managed to make changes to the new milkadvertisements in 2 important areas:

Informing how milk benefits diet

Showing complimentary food but NOT milk in the ads

Print ads using the tagline got milk?have featured countless

celebrities with the trademark milk mustache


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Cmpbs

branding strategy

Additional Communications Programs: The Creative StrategyIncreasing milk

purchase by using complimentary foodsas a promoting tool

The CMPB ran joint promotions withmajor brands like Oreos and Wheaties.

Billboards were used extensively to

reinforce the TV campaign

All campaigns leveraged the food-milkrelationship & capitalized on theadvertising budgets of several major

brands of cereals and cookies.


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Cmpbs branding strategy

Media Strategy: Decision to communicate message at 3 ideal times:

1. At Home

2. On the way to the store

3. In the store

The CMPB launched a heavy outdoor campaign to targetconsumers on the way to the store and inside the store

got milk?signs and billboards were put up in the localityas a reminder to purchase milk

Milk was soon placed among the top 10 advertisingspenders in all of California

For the first time in advertising history, milk commodity wasin a position to compete with other beverages

BUT Would the

deprivation strategy

work?


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Cmpbs branding

strategyFirst Phase strategy: To Remind milkdrinkers of the anxiety anddisappointment that came when milkwasn't available at crucial moments.

Next Phase: Converting the milk-deprived emotional state into a phrasethat everyone might instantlyunderstand. . . Got Milk???

Goodbys campaign's well-knowngrammatically-challenged tagline gotmilk?& milk deprivation strategy werewidely used for televisionadvertisements all over California.


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ADVERTISING STRATEGY

The Got Milk Campaign: What could you say about milk? It waswhite and came in gallons. People felt they knew all there was toknow about it, so it was hard to find a strategic platform. - JeffManning

Changing the perception of milk: Thus changing buying andconsumption habits

Push vs. Pull Promotion Strategy: Appealing to the masses

http://www.youtube.com/watch?v=hnIjgw5A-iI

http://www.youtube.com/watch?v=KKQf2AP-V3I

http://www.youtube.com/watch?v=pu2Q714TuZ8&feature=related
http://www.youtube.com/watch?v=hnIjgw5A-iIhttp://www.youtube.com/watch?v=KKQf2AP-V3Ihttp://www.youtube.com/watch?v=pu2Q714TuZ8&feature=relatedhttp://www.youtube.com/watch?v=pu2Q714TuZ8&feature=relatedhttp://www.youtube.com/watch?v=KKQf2AP-V3Ihttp://www.youtube.com/watch?v=KKQf2AP-V3Ihttp://www.youtube.com/watch?v=KKQf2AP-V3Ihttp://www.youtube.com/watch?v=hnIjgw5A-iIhttp://www.youtube.com/watch?v=hnIjgw5A-iIhttp://www.youtube.com/watch?v=hnIjgw5A-iI


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ADVERTISING STRATEGY

The budget for the turn around in perception$23 million/year marketing budget. On a percapita basis (California's population wasRoughly 20% of the US),

Consumers between 18 and 24 drank 44gallons of soft drinks, but they drank only17.2 gallons of milk.

Shift in Perception:

Milk is boring Milk is

cool

TOFROM


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PROMOTION

CAMPAIGN

Timing & Resources, the dairy ran the MilkMustache Mobile Tour promotion beginning in latesummer 2006 and repeated it in spring 2007.

Coordination with MilkPEP, the dairy and theamusement park needed to take place severalmonths in advance of the tour to establish tourdates, plan marketing materials, etc.

This may have taken a day or twos worth of timein the months leading up to the promotion.


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PROMOTION

CAMPAIGN

Grassroots/ Local Marketing Using the Milk MustacheMobile Tour to Increase Milk Consumption at a Theme ParkThe Milk Mustache Mobile Tour and coordinating MilkPEPmarketing materials (static clings, signage, giveaways) wereprovided at no cost to the dairy.

The dairy incurred costs to create artwork and placeadvertising on billboards and market umbrellas.

Free publicity from the Milk Mustache

TV contest wasinvaluable. This dairy received an above average payoff froman average level of resources to increase milk sales in anunconventional milk outlet.


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got milk?success

Immediate Results seen in California:

The campaign zoomed to a 60% aided recall level in aspan of 3 months.

Enjoyed 70% awareness within 6 months.

Surpassed the campaign It does the Body Goodin top-of-mind awareness in less than 1 year.

The got milk?campaign quickly became a consumerfavourite.

The Ad Campaign exceeded initial sales expectations. As seen in Exhibit 2, milk consumption increased for the

first time in years.

Califirnias household consumption increased every monthin the 1styear of got milk?campaign, except for the first

two months.


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got milk?success got milk?Goes National & International:

In 1995, the got milk?advertisements won an Effie Awardand top honors from several other major advertising awardcommittees.

In September 1995,

got milk?

was licensed to theNational dairy farmers group, the Dairy Management Inc.

(DMI)

Thus got milk?was receiving national advertisingexposure along with the existing MilkPEPs milk

mustachecampaign.

After seeing the sales in California, the UKs MilkDevelopment Council (MDC) approached the CMPB tolicense got milk?.

In 2004, got milk?went international and Ads began

running throughout England, Wales and Scotland.


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got milk?success

Products and Partnerships:

The got milk?campaign started to fuel a cult of buyinggot milk?licensed productslike:

Mugs, baby bottles, t-shirts, campaign themed barbie

dolls.

Partnershipswith companies like Nestle, General Mills,Quaker, Keebler and even the Girls Scouts of America, ledto numerous creative advertisements and promotions.

Billboards with Girl Scouts, Partnership with Dole and aventure with Mattel promoted the campaign.


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got milk?

reconsidered

Revising the deprivation Strategy:

To make the got milk?advertisements less familiar orpredictable, they sought alternatives to the currentdeprivation strategy.

Showing depressed people in a Town Deprived of Milk.

Did not affect consumers immediate consumption.

Worked on peoples heads, rather than on theirmouths and stomachs.


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got milk?

reconsidered Milk Branches Out:

New Product Launch- Portable Flavoured Milk.

Midwest-based Deam Foods, invested $40 million toproduce Chugs- portable flavoured milk packaged in

plastic containers like old-fashioned glass bottles. The company spent an additional $12 million on an

integrated national marketing campaign to supportadvertising for the new product.

By 1999, Chugs generated more than $100 million in

sales to the company and contributed to 40% of the totalgrowthin milk sales that year, even though it comprisedonly 6% of the total milk sales.

General Mills and Dean Foods invested in products likesoy and organic milk.


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got milk?

reconsidered Growth Slows:

The got milk?& milk mustachehelped fuel a 1% growthin national milk sales during 1997, but were not successfulin the following year.

As seen in Exhibit 1, Milk sales dropped by 0.4% in 1998and continued for the decade, then remained flat or down inthe following years.

Milk prices were increased to account for the draggingsales.

?


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NEW DIRECTIONSBack To Health:

Target elders:Awareness of Preventing Osteoporosis, and othersuch health problems as the benefits of the beverage milk.

Target teens: Featuring Gravity Tours, to promote coolnessofaction sports and the role of milk in enhancing athletes bone density.

CMPB took milks health message to the next level by developingthe theme Strength comes from withinimportance of healthybones.

gotmilk.coms website highlighted various researches on the

benefits of milk like: Increases bone mass in teens and adults, prevents PMS and

osteoporosis and improves sleep.

Positioning of milk as a super foodfor strength & stamina


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NEW DIRECTIONS

Expanding Distribution:

The Obesity Crisis leaded to another area of growth for milkand a scope to send out health messages, and expanddistribution into vending machines, schools and fast-food

restaurants. Improved Portable packaging and introduction of a variety of

milk flavors, led to expansion of vending machines. Thisincreased sale of milk by 45% in 2003.

The Child Nutrition Act, Mc Donalds and Wendys also played

a huge part in promoting milk sales.


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DISCUSSION QUESTIONS

1) Association that consumers have for milk: The USP for milkwas promoting its health benefits. Consumers were drawn to thehealthy drink and the promotion of the idea of having milk along withcomplementary foods.

Implications of these associations in building brand equity:

These associations enabled the commodity brand awareness, brandimage and increased the mind share of its consumers. The brandmilk also increased its salience with the introduction of complimentaryfoods used as promoting tools. Milk was easily targeted to allgenerations, old, middle-age and the young, thus focusing on the

Brand Feeling. All this helped to build the brand equity.

Implications of these associations in consumption of milk:

Consumption of milk overall increased by 1% in national milk sales

during 1997


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2) CMPB Marketing Program in early 90s:

A lot of struggle was required to change the behaviour ofconsumers towards milk and to ensure a rise in the sale of milk.

Their Focus was to enforce a complete shift in the way peoplethought about milk.

CMPB Marketing Program now:

Today, the effort that CMPB is required to put in much less ascompared to earlier times.

Now its focus will be directed more on REMINDING its consumersof the experiences they feel when they think of milk.


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3) Hispanic Marketing Initiatives:

The Ad Campaigns like La Liorona and Licuados, which weresolely directed to the Hispanic demographic in Californiagained favor to milk sales from the Hispanic-Californians.

No CMPB does not risk alienating its current consumer baseas they had already succeeded in creating a strong brand

image and mind share with its current consumer base.


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4) CMPB has several areas of growth:

They need to focus on their future by concentrating on thesenew directions, like the Hispanic demographic and theircheese consumption for instance.


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5) CMPB can continue to run the got milk?campaign,

so long as they keep up their milk sales and consumption.

The marketing investments of the got milk?campaign will prove

beneficial in the long run.After a while Resonating the got milk?advertisement will provesufficient to remind people of the commodity brand milk.


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BIBLIOGRAPHY


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DISCUSS QUERIES

got milk banding a commodity

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