it’s on everybody’s lips!
DESCRIPTION
IT’S ON EVERYBODY’S LIPS!. VENDED MILK IS A HIT WITH KIDS…. KIDS LOVE MILK. SO IT’S NO SURPRISE THAT A RECENT STUDY SHOWS THAT VENDED MILK IS A BIG HIT IN SCHOOLS. SCHOOL PER CAPITA CONSUMPTION. 0.25. 0.20. 0.18. Units Per Consumer Per Week. (3 WEEKS). …AND WITH ADULTS!. - PowerPoint PPT PresentationTRANSCRIPT
IT’S ON EVERYBODY’S LIPS!
VENDED MILK IS A HIT WITH KIDS…
KIDS LOVE MILK. SO IT’S NO SURPRISE THAT A RECENT STUDY SHOWS THAT VENDED MILK IS A BIG HIT IN SCHOOLS.
0
0.05
0.1
0.15
0.2
0.25
All Weeks InstallationPeriod
Base LinePeriod
School Test Per CapitaConsumption
SCHOOL PER CAPITA CONSUMPTION U
nits
Per
Con
sum
er P
er W
eek 0.20
0.25
0.18
(3 WEEKS)
…AND WITH ADULTS!
WHAT IS SURPRISING IS THAT A SIMILAR STUDY SHOWS
THAT ADULTS LIKE VENDED MILK JUST AS MUCH.
0
0.05
0.1
0.15
0.2
0.25
0.3
0.35
All Weeks InstallationPeriod
Base LinePeriod
School Test Per CapitaConsumption
B&I Per CapitaConsumption
SCHOOL AND B & I PER CAPITA CONSUMPTION
Uni
ts P
er C
onsu
mer
Per
We
ek
0.20
0.25
0.18
0.27
0.34
0.25
(3 WEEKS)
THE SOURCE
THE STUDIES WERE CONDUCTED BY FMSTI - THE FLUID MILK
STRATEGIC THINKING INITIATIVE. THE OBJECTIVE WAS TO
EVALUATE THE OPPORTUNITY FOR MILK VENDING IN TERMS
OF:
• SALES POTENTIAL
• OPERATING DYNAMICS
• OPTIMAL PRODUCT MIX
THE RESULTS - GIVEN THE RIGHT PLACEMENT AND
PRODUCT MIX, VENDED MILK REPRESENTS A HUGE SALES
OPPORTUNITY ACROSS ALL VENDING CHANNELS.
VENUES– BUSINESS AND INDUSTRY– COLLEGES AND UNIVERSITIES– PUBLIC LOCATIONS
SCOPEFOUR MARKETS
2 IN THE SOUTHWEST
ONE EACH IN THE MIDWEST AND SOUTHEAST
THE MULTI-CHANNEL VENDING TEST
VENDER TYPES INCLUDED LIVE- DISPLAY, CLOSED-FRONT,
AND GLASS FRONT VENDORS.
PRODUCT OFFERINGS RANGED FROM A WIDE VARIETY (7+) TO
A MORE LIMITED SELECTION (4).
VENDER AND PRODUCT MIX
THE TEST SHOWED THAT THE DEMAND FOR VENDED MILK
AMONG ADULT POPULATIONS WAS STRONG.
THE DEMAND FOR VENDED MILK WAS STRONG…
Un
its P
er
We
ek
Pe
r V
en
de
r
AVERAGE WEEKLY SALES PER VENDEREXCLUDING POOR PERFORMING VENDERS(1)
(1) Venders with sales lower than the estimated requirement for profitability.
SALES WERE CONSISTENT
WITH INDUSTRY STANDARDS!
96.5
0
20
40
60
80
100
120
140
B&I Public C&U
All Vendors
Excluding PoorPerforming Labor
125.7
75.9
116.6
85.0
104.5
POST-INSTALLATION SALES WERE BETTER THAN INDUSTRY
AVERAGE.
…AND STEADY!
0 10 20 30 40 50 60 70 80 90 100
EstimatedIndustry Average
Multi ChannelTest
SALES RETENTION FOLLOWING INSTALLATION PERIODINSTALLATION PERIOD EQUALS THREE WEEKS
% % % % % % % % % % %
VENDERS THAT CARRIED MORE SKUS (7+) SOLD ALMOST
TWICE AS MUCH AS THOSE THAT CARRIED ONLY LIMITED (4)
MILK PRODUCTS.
VARIETY DRIVES SALES
Limited Product
Full Product
AVERAGE WEEKLY PER CAPITA CONSUMPTION
FULL VS. LIMITED PRODUCT LINE
.32
.18
(4 Varieties)
(7+ Varieties)
FLAVORED MILK SALES WERE SURPRISINGLY STRONG, WHILE
WHITE MILK SOLD THREE TIMES AS WELL AS IT DID IN THE
SCHOOL TEST.
WHITE MILK AND FLAVORS BOTH SOLD WELL
Other 11%
White 27%
Strawberry 15%
Chocolate 47%
FLAVOR VARIETY ANALYSISFlavor Totals
White 27%
Chocolate 47%
Strawberry 15%
Other 11%
Total
100%
Significantly higher than 9% in
School test
EVERY VEND OPERATOR WHO PARTICIPATED IN THE TEST
SAYS MILK WILL LIKELY BECOME A PROFITABLE COMPONENT
OF THEIR VENDING BUSINESS!
BEST PRACTICE• FULL VARIETY OF MILK PRODUCT OFFERINGS• PLACED NEXT TO SNACK AND/OR FOOD MACHINES• PLACE MILK AND HEALTHY BEVERAGE PRODUCTS TOGETHER
OPTIMAL PLACEMENT • PUBLIC VENUES WITH EXTENDED HOURS OF ACCESS/OPERATION • B&I WITH 300+ POPULATION• C&U LOCATIONS WITH HEAVY FOOT TRAFFIC
OPERATORS LIKED THEIR FIRST TASTE OF MILK
VENUES– MIDDLE SCHOOLS– HIGH SCHOOLS
SCOPE86 VENDING MACHINES
5 DIVERSE MARKETS
THE SCHOOL VENDING TEST
ALMOST ONE-THIRD OF ALL STUDENTS PURCHASED MILK
ONCE A WEEK.
VENDED MILK PASSES THE TEST IN SCHOOLS
SALES WERE CONSISTENT WITH
INDUSTRY STANDARDS!
0
50
100
150
200
250
300
350
400
450
INSTALLATIONPERIOD - FIRSTTHREE WEEKS
BASELINE PERIOD- AFTER FIRSTTHREE WEEKS
ALL WEEKS
Uni
ts C
onsu
med
Dur
ing
Tes
t P
erio
d
AVERAGE WEEKLY SALES
High School Middle School Total
415
263
307321
174
213
388
238
280
PROJECTING THE RESULTS OVER A SCHOOL YEAR, EACH
STUDENT WOULD CONSUME ON AVERAGE AN ADDITIONAL
ONE GALLON!
THE POTENTIAL MARKET FOR VENDED MILK IS HUGE
7.9-8.67.2-7.9
VENDED MILK PROJECTED ANNUAL PER CAPITA CONSUMPTION
Uni
ts C
onsu
med
Dur
ing
Sch
ool Y
ear
2
4
6
8
10
7.2-7.9
Middle School High School Total
• AN ALTERNATIVE TO OTHER VENDED FARE
• AVAILABLE THROUGHOUT THE SCHOOL DAY
• A WIDE VARIETY OF FLAVORS
WHY KIDS PREFER VENDED MILK
IN SCHOOLS, FLAVORED MILK OUTSOLD WHITE MILK 9 TO 1!
FLAVOR VARIETY DRIVES SCHOOL SALES
Strawberry Milk 27 %
Other 1% *
White Milk 10%
Chocolate Milk 60%
FLAVOR VARIETY ANALYSIS
*Flavors beyond chocolate and strawberry sold well where they were offered. During the test, coffee made up 29% of all flavors sold at Boston schools. In Omaha, orange made up 10% of all flavors sold.
OPERATORS ARE COMING UNDER INCREASING PRESSURE
TO IMPROVE THE NUTRITIONAL VALUE OF VENDED FARE IN
SCHOOLS. MILK CAN HELP!
72% OF MOMS WITH KIDS 2-14 SAID
THEY ENCOURAGE THEIR CHILDREN
TO DRINK MILK*.
TAKING ADVANTAGE OF MILK’S ‘HEALTH HALO’
*Source: 4Q 2002 Knowledge Networks Milk Consumption & Attitude Tracker
MILK IS A POWERFUL SOURCE OF CALCIUM, SOMETHING
EXPERTS SAY AMERICAN KIDS NEED MORE OF.
MILK IS NATURE’S BEST SOURCE OF CALCIUM
0
5
10
15
20
25
30
35
Fat FreeMilk
ChocolateMilk
Cola FruitPunch
OrangeJuice
SportsDrink
Water
MILK IS NATURE’S BEST SOURCE OF CALCIUM
% of daily values is based on a 2,000- calorie diet. The daily requirement isbased on an 8 oz. serving.
SOURCE: US Dept. of Agriculture Nutrient Analysis
30%30%
2%0% 0% 0% 0%
% Daily Calcium Requirement
RESEARCH SUGGESTS THAT 3-4
SERVINGS OF DAIRY A DAY AS PART
OF A REDUCED-CALORIE DIET CAN
ALSO HELP PROMOTE WEIGHT LOSS.
PROVIDING MILK AS A HEALTHY
ALTERNATIVE WILL HELP ENSURE THE
LONG -TERM VIABILITY OF SCHOOL
VENDING.
MILK AND THE FIGHT AGAINST OBESITY
WHY MILK’S POPULARITY IS GROWING NATIONWIDE
MILK HAS BEEN EXPERIENCING A SURGE OF POPULARITY
AMONG ALL CONSUMERS. CONTRIBUTING FACTORS
INCLUDE:
• NEW FLAVORS
• NEW PRODUCTS
• INTEREST IN HEALTHIER EATING
MILK IS THE SECOND MOST POPULAR BEVERAGE IN
AMERICA AND #1 IN AMERICAN HOMES!
THE SWEET TASTE OF SUCCESS
ALMOST 1/3 OF MILK’S GROWTH WAS DUE TO THE
POPULARITY OF FLAVORS.
Flavored Milk 27%
Eggnog 1%White Milk 72%
FLAVORED MILK SHARE GROWTH
SOURCE:IRI 52 weeks ending10/07/01 and total 2000
NEW FLAVORS AND TRADITIONAL FAVORITES ARE ALL
EXPERIENCING REMARKABLE GROWTH
THE SWEET TASTE OF SUCCESS
0 20 40 60 80 100 120
All other Flavors
Coffee
Vanilla
Banana
Strawberry
Chocolate
Total Flavored Milk
THE GROWING POPULARITY OF FLAVORED MILK
Percent growth
Source : IRI 52 Weeks ending 10/07/01 and total 2000
MILK CONSUMPTION AMONG TEENAGERS IS UP
TWO YEARS IN A ROW!
ANOTHER CONTRIBUTOR TO MILK’S NEW SUCCESS IS
SINGLE-SERVE PACKAGING. CONSUMERS PREFER IT
BECAUSE:
• IT TASTES BETTER
• IT KEEPS COLD LONGER
• IT’S PORTABLE
PLASTIC SINGLE-SERVES – YOU CAN TAKE IT WITH YOU!
MILK’S LONG ASSOCIATION WITH
GOOD HEALTH MAKES IT A PERFECT
MATCH FOR BUSY FAMILIES LOOKING
FOR NUTRITIOUS ALTERNATIVES.
MILK AND THE HEALTH CONSCIOUS CONSUMER
MILK IS THE ULTIMATE BEVERAGE !
MILK IS AN IMPORTANT SOURCE OF NINE ESSENTIAL NUTRIENTS
THE NATIONAL "Milk Mustache got milk?" CAMPAIGN, ONE OF THE MOST
SUCCESSFUL MARKETING CAMPAIGNS IN HISTORY, CAN HELP YOU
PROMOTE MILK TO YOUR CUSTOMERS.
CONTACT YOUR MILK SUPPLIER TO SEE HOW THE CAMPAIGN CAN HELP
YOUR BUSINESS. OR VISIT WWW.MILKDELIVERS.ORG
LEVERAGING THE POWER OF ‘GOT MILK?’