GOT MILK ?? Branding a Commodity

GOT MILK ??Branding a CommodityPrepared BYAnkit Chauhan (08)Jagrut Patel (28)Atit Shah (41) Introductiongot 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, and the decline rate started to accelerateTo revitalize the product sales, MANNING and the ad agency GOODBY, SILVERSTEIN & PARTNERS together developed the got milk? campaign

The Dairy IndustryFarmersProcessorsRetailorsOther Distribution ChannelCMPBChallenges of Marketing a CommodityMore similar to product category than brandNo brand nameToo much input from suppliers (milk people) status quoHard to change attitudes toward a categoryLower budgets than competition (cola)Distribution levels are 100%, but no pressing need to purchaseDemand influenced by other products

Competitive Situation1,805 new beverages in 1991 aloneMedia spending $2 billion (beer and soft drinks)1975-1993 consumption of beverages increased 18% - but NOT MILK (dropped by 10%)

The Skinny on MilkGoal: 1 additional glass per week Some cannibalization of milkFamily unit link 89% consumed at homeNostalgia and ritual importantRegular times (meals) and with other food

Factors in Milk DeclineUDIA 1992 study [1252 interviews]Proliferation of other beveragesLack of portabilityLack of flavor varietyNot thirst quenchingLack of consumer mind shareCompetitive spending levelShared nature of consumption [cereal, cookies, PB&J]

The Marketing StrategyPeople 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 itMake consumers think about milk (mindshare)Halt sales decline

ContdTarget marketRegular users [70% Californians]Segmented by behavior what they liked to eat with milkWhen and where it is consumedResearchMilk deprivation research focus groups denied milk

Creative DevelopmentNo mention of health benefits (already knew that)Never show the milkTelevision ads using humorJoint promos with Wheaties, milk coupons, POPs, shelf talkers for complements, check out dividers, billboards, print

The Results [California]3 months 60% aided recall; 6 months 70% awareness levelNumber 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

Got Milk Goes NationalCombined budget: $180 millionCo-promos with General Mills, Nestle, Quaker, Keebler, Girl ScoutsAds with Trix, Rice Krispies, Cookie Monster, Dole even Hot Wheels

1) Association that consumers have for milkThe USP for milk was promoting its health benefits. Consumers were drawn to the healthy drink and the promotion of the idea of having milk along with complementary foods.

Implications of these associations in building brand equity: These associations enabled the commodity brand awareness, brand image and increased the mind share of its consumers. The brand milk also increased its salience with the introduction of complimentary foods used as promoting tools. Milk was easily targeted to all generations, old, middle-age and the young, thus focusing on the Brand Feeling. All this helped to build the brand equity.

2) CMPB Marketing Program in early 90s:A lot of struggle was required to change the behaviour of consumers towards milk and to ensure a rise in the sale of milk. Their Focus was to enforce a complete shift in the way people thought about milk.CMPB Marketing Program now: Today, the effort that CMPB is required to put in much less as compared to earlier times. Now its focus will be directed more on REMINDING its consumers of the experiences they feel when they think of milk.

3) Hispanic Marketing InitiativesThe Ad Campaigns like La Liorona and Licuados, which were solely directed to the Hispanic demographic in California gained favor to milk sales from the Hispanic-Californians No CMPB does not risk alienating its current consumer base as they had already succeeded in creating a strong brand image and mind share with its current consumer base

4) CMPB has several areas of growth:They need to focus on their future by concentrating on these new directions, like the Hispanic demographic and their cheese consumption for instance.

5) CMPB can continue to run the got milk? campaignso 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 prove sufficient to remind people of the commodity brand milk.