![Page 1: Got Milk? The California Milk Processor Board: Branding a Commodity](https://reader035.vdocuments.us/reader035/viewer/2022072013/56649e705503460f94b6dbc0/html5/thumbnails/1.jpg)
Got Milk?
The California Milk Processor Board:
Branding a Commodity
![Page 2: Got Milk? The California Milk Processor Board: Branding a Commodity](https://reader035.vdocuments.us/reader035/viewer/2022072013/56649e705503460f94b6dbc0/html5/thumbnails/2.jpg)
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.
![Page 3: Got Milk? The California Milk Processor Board: Branding a Commodity](https://reader035.vdocuments.us/reader035/viewer/2022072013/56649e705503460f94b6dbc0/html5/thumbnails/3.jpg)
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
![Page 4: Got Milk? The California Milk Processor Board: Branding a Commodity](https://reader035.vdocuments.us/reader035/viewer/2022072013/56649e705503460f94b6dbc0/html5/thumbnails/4.jpg)
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
![Page 5: Got Milk? The California Milk Processor Board: Branding a Commodity](https://reader035.vdocuments.us/reader035/viewer/2022072013/56649e705503460f94b6dbc0/html5/thumbnails/5.jpg)
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%)
![Page 6: Got Milk? The California Milk Processor Board: Branding a Commodity](https://reader035.vdocuments.us/reader035/viewer/2022072013/56649e705503460f94b6dbc0/html5/thumbnails/6.jpg)
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
![Page 7: Got Milk? The California Milk Processor Board: Branding a Commodity](https://reader035.vdocuments.us/reader035/viewer/2022072013/56649e705503460f94b6dbc0/html5/thumbnails/7.jpg)
Factors in Milk DeclineUDIA 1992 study [1252 interviews]
• 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]
![Page 8: Got Milk? The California Milk Processor Board: Branding a Commodity](https://reader035.vdocuments.us/reader035/viewer/2022072013/56649e705503460f94b6dbc0/html5/thumbnails/8.jpg)
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
![Page 9: Got Milk? The California Milk Processor Board: Branding a Commodity](https://reader035.vdocuments.us/reader035/viewer/2022072013/56649e705503460f94b6dbc0/html5/thumbnails/9.jpg)
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
![Page 10: Got Milk? The California Milk Processor Board: Branding a Commodity](https://reader035.vdocuments.us/reader035/viewer/2022072013/56649e705503460f94b6dbc0/html5/thumbnails/10.jpg)
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
![Page 11: Got Milk? The California Milk Processor Board: Branding a Commodity](https://reader035.vdocuments.us/reader035/viewer/2022072013/56649e705503460f94b6dbc0/html5/thumbnails/11.jpg)
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
![Page 12: Got Milk? The California Milk Processor Board: Branding a Commodity](https://reader035.vdocuments.us/reader035/viewer/2022072013/56649e705503460f94b6dbc0/html5/thumbnails/12.jpg)
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
![Page 13: Got Milk? The California Milk Processor Board: Branding a Commodity](https://reader035.vdocuments.us/reader035/viewer/2022072013/56649e705503460f94b6dbc0/html5/thumbnails/13.jpg)
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?