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Introduction
Feb 1993: Jeff Manning newly appointed Executive Director Of California Milk Processor Board
Steady decline in the milk consumption over the previous two decades Competition with the cola giants , Snapple Ice teas and Calistoga bottled waters.
What could you say about milk? It was white and came in gallons. People felt they knew all there was to know about it, so it was hard to find a strategic platform. - Jeff Manning
Dairy Industry
Comprised of relatively short list of intermediaries
Three major group in the industry :
Farmers
Farmers have become more efficient than in the past
The number of dairy farms has dwindled to a mere 150,000. Small owned farms have been replaced by growing number of large farms called factory farms
In order to raise money for a national advertising campaign each farmer has to contribute some private funds
Processors
Function is to transform raw milk into the products whole, 2 percent, 1 percent and skim milk. The relationship between the processor and the producers has been one of conflict due to incompatible goals.
Retailers
Two primary retailers: Safeway Food Stores Lucky Food Stores Apart from them there are a number of secondary grocery stores.
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Contd..
Concerned with long-term declining milk sales, California's largest milk processors voted to fund a marketing board that would be charged with creating advertising dedicated to selling milk. The processors agreed to finance the California Milk Processor Board by contributing three cents for every gallon of milk they processed. This assessment allowed for a $23 million/year marketing budget. On a per-capita basis this budget approximated those of the largest national auto, beer, finance, and pharmaceutical brands. The processors agreed that they would assess the new board's effectiveness every three years.
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"And 90% said it had calcium, and a fair percentage said that calcium helped prevent osteoporosis.
The problem was that the old ads didn't change consumers' behavior."
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Competitors' Symbolism
Compared to the proliferation of brightly colored beverages in myriad, imaginative packages, milk had an image problem.
Milk was still associated with domesticity and it was apparent to him that most consumers were no longer excited by the tamed life. If milk had represented a domesticity that had fallen out of style, many of its new competitors had accrued altogether different meanings-like youthful rebellion, eclectic individuality, and street smart fashion. In the 1990s, Gatorade, Snapple, Mountain Dew, and Sprite led the way.
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Based on this logic, Manning and Goodby quickly agreed that their best hope of reviving sales was to prod this 70% to increase their consumption.
Recalling a strategy that his Ketchum co-worker had explored a few years earlier, Manning suggested that people who drank milk tended to think of it as an accompaniment to certain sweet and sticky foods that they loved.
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Expand the market through other channels such as foodservice and school cafeterias
Cooperate with consumer packaged goods and do joint promotions
Embark on a Campaign to clear the confusion about the health content of milk
Generate an image for Milk Through Advertising
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Question 1:
What are the problems or challenges faced by the CMPB?
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Problems
Accelerating decline in milks consumption Loss of $50 million dollars of profit every year Drop in milks MS from 17 to 13 percent. Competition from other Beverages (Alcoholic and Non-Alcoholic) Confusion about nutritional value of various prevalent varieties of milk Per capita increase in expenditure outside home: this trend is not good for milk which is consumed mostly inside home.
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Challenges
Revitalize sales and increase Consumption Overcoming the barriers of : 1. Proliferation by other beverages 2. Portability 3. Flavor Variety 4. Low media spending 5. Creating Loyalty 6. Making milk an important part of consumers life 7. Milk being a childrens drink 8. Milk being boring compared with other drinks
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Question 2 :
What associations do consumers have for Milk? What are the implications of these associations in terms of building brand equity for and increasing the consumption of milk?
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Answer
Consumers associations were: Identifying milk with the complementary foods such as cereals, cookies, cheerios, sandwiches etc.
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Question 3:
Evaluate the CMPB marketing program. What do you see as its strengths and weakness? Would you do anything differently? What should be their next steps?
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Answer
There were three objectives to the Got Milk? campaign: To change the publics behavior regarding milk To create the idea of milk occasions by associating the product with certain foods To curb the decline in sales by convincing people to buy milk more often and in larger quantities.
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Strengths
Use of Deprivation Strategy:
Was founded on a very simple strategic idea; i.e. that running out of milk when you have a mouth full of peanut butter or bowl full of cereal is a pain in the butt.
It' was intensely competitive coz just wouldn't make sense to substitute Coke or Snapple for milk. Went mass-market without any exclusions
Recognition of Brand:
Brand struck us as hip, intelligent, funny rather than being boring as earlier campaigns Campaign and not product defined the brand
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Strengths
Simplification of Brand:
Consumers and marketers alike need brands that are simple, clear and fit squarely into their lives.
The plan's sole objective was to reach people who liked milk at home watching TV within 50 feet of the fridge. Focus: The California Milk Processor Board (CMPB) chose to target regular milk drinkers, who constituted more than two-thirds of the market and were already favorably disposed toward the product and thus more open to influence, especially in the short-term.
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Contd..
Use of Multiple Media: Got Milk?" broke consumer behavior down to its component parts to create a highly targeted strategy: Purchase and use locations (supermarket and home) Effective message timing (en route to store, in store, at home) Product use times (breakfast, late evening snacks, etc.) Principal consumers (children in the morning, adults at night) Complementary media: TV, billboards, bus shelter signage, cross-promotion milk coupons on compatible foods, POP displays, and checkout dividers
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Contd..
Fortification of Brand:
Going together with associated cereal and cookies brands helped in building up this brand as they drove milk sales.
Flexible Brand Proposition: This pliancy is critical to success (or even viability) in the face of shifting demographics, changing lifestyles, economic trends, competitive assaults, legislation and even litigation, which was evident in the campaign. As it did not stick to one core proposition but brought in flexibility instead
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Weaknesses
Relying solely on Associations: Got Milk campaign relied heavily on associations with complementary foods.
Deprivation Strategy was core of brand: The campaign used deprivation strategy, and any deviance from this identity would kill the brand
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Future Steps
Ensuring availability of milk supplies Bringing out more advertisements similar on these lines Aggressive Promotion Making milk as only drink to be consumed inside home
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Consumers School Districts Associations & Boards Dairy processors Substitutes Coffee/Tea Coca-Cola Bottled Water Pepsi Juices Ice Tea/Cold Coffee Soft Drinks
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