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Organic Valley: Thoughts on Positioning John Carvalho / January 2, 2014

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Some thoughts on Organic Valley and their positioning. A luxury, yet still a commodity, they have to grow share in a brutally tough category, and do it without alienating their "diehards". This is, in effect, "craft milk." Here I put forth an idea, while not wholly novel, is certainly somewhat new in the context of being applied to this category.

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Page 1: Organic Valley

Organic Valley: Thoughts on Positioning

John Carvalho / January 2, 2014

Page 2: Organic Valley

Organic Valley’s problem: grow share without alienating diehards.

How do we create “loyalty beyond reason” in a commodity market with razor-thin margins?

Page 3: Organic Valley

Step 1: Figure out what makes these Diehards tick.

Page 4: Organic Valley

They ask for “the best” and are directed to organic.

A hint comes from understanding Diehards’ at-shelf behavior. According to my sampling of Whole Foods employees, these customers don’t come in asking for organic.

Page 5: Organic Valley

So, we start to untangle the relationship between “best” and “organic” in search of a brand value proposition that can resonate with both Diehards and the untapped middle.

Page 6: Organic Valley

Instead of buying Organic Valley because it’s organic, what if we instead propose that you buy Organic Valley because it’s simply the best choice, and let “organic” become a supporting value?

Page 7: Organic Valley

But, being the best does not simply mean the most epicurean, the most fancy. Epicurean appeals to Diehards, but doesn’t appeal to middle-America moms, and doesn’t help truly broaden appeal.

Gourmet

Page 8: Organic Valley

Instead, let’s consider two ideas that are often placed in opposition to each other:

Simplicity / Luxury

Page 9: Organic Valley

We’re constantly told luxury is a

question of more. More horsepower. More flavors. More features. Instead, we propose something radical: that the quality of a product is not related to its number of ingredients. The luxury of less. The superiority of simplicity. Organic Valley is pure, simple, and the absolute best choice. And there’s a luxury in that.

Page 10: Organic Valley

What does this do for each of our target audiences?

Page 11: Organic Valley

Diehards: profoundly affirming: all we’re doing is reminding them that the choice they’re already making is the choice they should have been making all along.

Page 12: Organic Valley

Untapped Middle: This is someone who is one step away from purchase, but is a casualty of information overload: buy this because Omega-3 promotes heart health- buy that because DHA promotes brain health. She’s heard organic is a good idea, but doesn’t feel she knows enough. She wants the best, not as a badge of status, but because having the best lets her know she’s taking care of herself and those in her life. She fully understands she can’t maximize everything, so she wants to maximize the things that count with the time and dollars she has. Milk, a family staple, is one of those things.

In a world of noise and inauthenticity, a simple message of genuine, attainable luxury can shine through like a beacon. What a relief to know you’ve made the best choice- to not have to evaluate the benefits of different additives because there aren’t any.

Page 13: Organic Valley

How to Execute

Think of Honest Tea. Buy it at Whole Foods? You’d think it was a small batch brand launched last week. Glass bottles. Unsweetened blends. Simple labels.

Buy it at Cub Foods, suddenly you can tell it’s owned by Coca-Cola. Plastic bottles. Sweetened flavors. Next to the Gatorade.

We don’t need to bring Whole Foods into Cub Foods- we just need to create a brand that can live in both places.