California Case Presentation

8/14/2019 California Case Presentation

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I like the taste of coldI like the taste of coldmilk.milk.

Milk is a healthful drink.Milk is a healthful drink.

Milk is a good source of Milk is a good source of calcium.calcium.

Milk is needed for growth.Milk is needed for growth.

Adults should drink milk.Adults should drink milk.

I should drink more milk than II should drink more milk than I

do.do.


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Case PresentationCase Presentationgot milk?:got milk?:

BRANDING A COMMODITY BRANDING A COMMODITY

Group Members:Gro

up Members:

Bijayshwori ShresthaBijayshwori ShresthaRashmi BaralRashmi BaralRicha MishraRicha Mishra

Sandeep BajracharyaSandeep Bajracharya

Saturday, April 04, 2009


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1. Jeff Manning was the executive director of CMPB which stands

for.. Consumer Milk Processor BoardCalifornia Milk Processor BoardCalifornia Milk Packaging BoardConsumer Meat Packaging Board

Quiz! Whiz!!Quiz! Whiz!! time*Best of Luck*


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2. Which of these groups do not make up dairyindustry:

DrinkersFarmersProcessorsRetailers



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3. got milk? ad in 2000 emphasized inpreventing which disease?

Common ColdBlood Cancer Osteoporosis

AIDS



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4. In 2004, California was ......Largest overallcheese producer in the nation.

firstsecondthird

fourth



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5. California milk began targeting whichethnic group in its

marketing campaign?

HispanicWhiteAmerican IndianBlack



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I like the taste of coldI like the taste of coldmilk.milk.

Milk is a healthful drink.Milk is a healthful drink.

Milk is a good source of Milk is a good source of calcium.calcium.

Milk is needed for growth.Milk is needed for growth.

Adults should drink milk.Adults should drink milk.

I should drink more milk than II should drink more milk than I

do.do.


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Case IntroductionOne of the most popular ad campaigns of the 1990swa

borne of necessity.

Jeff Manning: Executive Director of the CalifoProcessor Board (CMPB), reviewed reports on per capi

consumption of milk over the last fifteen years.two decades decline & was accelerating.

Manning only had a $23 million budget to be heard amon

noise


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got milk? revitalizationgot milk? revitalizationA milk deprivation strategy

reminded consumers of consequences of not having milk with certai

Positive response: more milk consumption

Licensed nationally & became a catchphrase all over America.

Successful in California & reversed the sales & consumption slide, wconsumption levels continued to decline nationally.

In 12 th year some questioned: effective sustainability


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The DairyThe DairyIndustryIndustryThree major groups :

Farmers:Farmers: the milk producer Processors:Processors: convert raw milk into whole lower-fat mRetailers:Retailers: sell the final product

By 2003: Milk remained the most frequently purchaseditem with U.S. milk industry value of $23.1 billion.


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Other Distribution ChannelsOther Distribution Channels Major sales: Grocery stores

Remaining sales: stores, schools & food serviceestablishments.Latest threat: School districts policy

1982: Five choices in childrens lunch including milk.

1986 to 1991: 3.8% decline in non-commercial foservice milk volume1991: Expense in food increased from 25 to 33%while commercial food service milk volume actuallydropped 23% instead of enjoying

BRANDS VSBRANDS VS


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marketingmarketin g BRANDS VSBRANDS VSCOM MODITIESCOMMODITIES

Supply Side DifferencesToo many decision makers.Small budgets

Slow budget processPush versus Pull

Complexities: Name, product categorization

Demand Side DifferenChanging a categorymarket share.Influenced by otherindustries.


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BACKGROUNDBACKGROUND The Beverage Category

In 1993 fierce competition among new beveragesMedia spending: Approached $2 billion, with over total accounted for by beer & soft drinks. Milk spent l10% what beer spent on media

While soft drink per capita consumption increased by 801975 to 1991, milk consumption dropped by 10 peraddition, milks market share dropped from 17% to 13%


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What aboutmilk promotion campaigns ???

P i C i i


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Promotion Campaigns prior1993Traditionally communicated a three messages:

Adults: Milk is good for you and should be aMilk is good for you and should be aregular part of the diet.regular part of the diet.Teens: Milk Milk makesmakes you beautiful and strongyou beautiful and strongKids: Milk is cool and fun.Milk is cool and fun.

Focused target members drinking a glass of milk with brief mention ofnutrients in each.


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Early 1990s: Two dominant campaignsMilk does a bodygood Good fast food 1992 UDIA national consumer survey revealed the acceptance:

80%,80%, I like the taste of cold milk I like the taste of cold milk ..89%,89%, Milk is a healthful drink Milk is a healthful drink ..91%,91%, Milk is a good source of calciumMilk is a good source of calcium83%,83%, Milk is needed for growthMilk is needed for growth ..74%,74%, Adults should drink milk Adults should drink milk ..

52%,52%, I should drink more milk than I doI should drink more milk than I do


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Exhibit 1: Fluid Milk Consumption per Capita (

35 -

30 -

25 -

20 -

15 -

10 -

5 -

1980 1983 1986 1989 1992

California

Source: USDA Economic Research Service

ENVIRONMENTENVIRONMENT

Trends in 1993

Decline of milk sales acceleratedfrom 1990 to 1993

31.3 million people with only 21million potential drinkers.

One glass per week increment inmilk consumption profits increaseover $100 million per year

rev ous a ver s ngrev ous a ver s ng


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rev ous a ver s ngrev ous a ver s ngcampaigns:campaigns:Effective in communicating health benefits

Gains in sales of low fat and skim milk had come at theexpense of sales in whole milk

By 1980s: Milk sales increased by 10.9% while populatio

increased by 26%.Average family included 2.5 kids decreased to 2.1 kids pfamily.

Increase of working mothers


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What comesthe next?????


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idea likea


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a orn a rocessorBoard (CMPB)

Observed accelerated decline of milk sales from 19901993.Therefore, specified its goal i.e. increase the sales &consumption of milk in California

Growth opportunityLatinos: fastest growing ethnic groups in the state, heavy

users

Very dangerous/dynamic/supernatural hero


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MPB

Initiation

Hired Jeff Manning as executive director

Raised about $23 million for promotion

Agreed to sponsor legislation requiring them to contributegallon of milk sold in the state in the 1st year, with slightly smalcontributions in the remaining years of its initial three-year charte

Group of processors to fund advertising

public relations programs for increase in msales & consumption.

Th UDIA C S dTh UDIA C St d


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The UDIA Consumer StudyThe UDIA Consumer Study

Probable factors for milk consumption decline :

Proliferation of other beveragesLack of portabilityLack of flavor variety

Not thirst quenchingLack of consumer mind shareShared nature of consumption

R l i hi f Milk i h O h F


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Relationship of Milk with Other Fo

With things like Oreos or any other kind of cookies or cnone of these would be good without a big glass of milk

- female, mid-30s

At night with cereal, or for dunking Oreos.- female, mid-20s

Its a pain in the a because you usually find out (thatyoure out of milk) just after you pour the cereal.

- male, late-30s

What are Cheerios? Theyre nothing. But you add milk

its everything. - male, late teens


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STRATEGY Developing a Strategy

Invest in R&D to expand the number of flavors availaExpand the potential usage occasions.

Cooperate with consumer packaged goods compa joint promotions.

Develop an advertising campaign to clarify the heaof milk.

Generate a new image for milk through advertising

Target Hispanics and aging Californians


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Milk consists of

Need for new innovative advertisin


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Need for new, innovative advertisincampaign

Change in consumer behavior

Break the mold for milk advertising, grab atand shake consumers out of their milk malaise

Strong brand images by taking a more light-happroach, which talked directly to consumers


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Manning reflected back on the decision:

The dairy industry has taken itself too seriously

Eating is a form of entertainment...the mopopular form of entertainment in California, USA, & the world.

Get people smiling at your advertising and thwill look, listen, and, we believe, consume mmilk


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Campaign objectives

Change consumer behavior

Increase mind share

Halt sales decline

Target market


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Target market

regular users of milk70

percent of the Californiamarket

behavior segmentationstrategy focused when andwhere consumers drink milk

go m rea ve


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go m rea veDevelopmentUsed Deprivation Strategy without milk

Television Ads Aaron Burr Heaven

The got milk? tagline urged consumers to run to therefrigerator and make sure the answer was yes.humorous ads and well received by focus groups

go m rea ve
http://c/Users/sandeep/Desktop/MBA%204th%20Term/Product%20Brand%20Management/got%20milk%20commercial%20ads/Aaaron%20Burr.mp4http://c/Users/sandeep/Desktop/MBA%204th%20Term/Product%20Brand%20Management/got%20milk%20commercial%20ads/Heaven.flvhttp://c/Users/sandeep/Desktop/MBA%204th%20Term/Product%20Brand%20Management/got%20milk%20commercial%20ads/Heaven.flvhttp://c/Users/sandeep/Desktop/MBA%204th%20Term/Product%20Brand%20Management/got%20milk%20commercial%20ads/Aaaron%20Burr.mp4


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The campaign broke away from previous milk

advertisements in two important ways:

there was never any mention of how milk couldbenefit a healthy diet

milk was never actually shown in the ads (foodshown without milk)

go m rea veDevelopment

Additional


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AdditionalCommunications Programs

CMPB ran joint promotions with major brands such as Wheaties and Oreos

These promotions included coupons, gotmilk? logos on cereal boxes, point-of-purchase displays, shelf talkers at the

complementary food locations, and gotmilk? check-out dividers.

Billboards were used extensively to

reinforce the television campaign


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StrategyReached consumers during threeideal times to communicate themilk message:at home where milk could beimmediately consumed,on the way to the store,and in the store


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primary focus on television andconcentrated on targeting consumers

when they drank the most milk:

mornings during breakfast, afternoon snacktime, and late evening snacksheavy outdoor campaign to targetconsumers on the way to and inside grocerystores. got milk?

Strategy

S


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Annual budget of $23 million doubled the previo

years spending

This placed milk among the top ten advertisingspenders in all of California

the campaign helped to compete with other beverages for the first time in milk advertising hi

Strategy


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Would the deprivation strategwork??????

SUCCESS


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SUCCESSThe campaign zoomed to a 60 percent aided reca

level in only three months,enjoyed 70 percent awareness within six monthscampaign in top-of-mind awareness in less than ayear The got milk? campaign quickly became a confavorite

SUCCESS


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Exceeded initial sales expectations

A year after the launch, sales volume increased 1.07 perc$13 million, for a total turnaround of $31 million

Milk consumers jumped from 72 percent at the start of tcampaign to 78 percent a year later

For rest of the country consumption declined over the samperiod by 0.1 percent

SUCCESS

and International


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and International

In 1995, the ads won an Effie Award and top honors

from several other major advertising award committe

got milk? licensed to the national dairy farmers grDairy Management Inc. (DMI) who ran the campaign

nationally.

In 2004, got milk? went international and the adsbegan running throughout England, Wales, andScotland.

National Milk Processors


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Education program (MilkPEP)In 1995 MilkPEPs milk

mustache with slogan Milk.What a surpriseFocused on good for youIn 1996 changed tagline toWheres your mustache?In 1998 obtained licensing rightsto got milk?

ro uc s anP hi


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ro uc s anPartnershipsproducts included t-shirts, babybottles, mugs bearing the got milk?logo, and even a got milk? themedBarbie doll.

General Mills, Nestle, Quaker,Keebler, and the Girl Scouts of America worked with CMPB

ro uc s anP hi


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In October 1998, the CMPBestablished the www.gotmilk.com

In 2005, the CMPB licensed apparelmaker MJC Corp. to produce mensclothing to be sold through Wal-Mart.

got milk? baby products wereexpanded into Babies R Us, BuyBuy Baby, Baby Depot andMacys.com.

ro uc s anPartnerships

R i i th D i ti St t
http://www.gotmilk.com/http://www.gotmilk.com/


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got milk

R id d

Revising the Deprivation Strategy Drysvilles ad Deprivation was only happening to

the people of Drysville, not to consMilk Branches Out

Portable and flavored milk produmanufactured, chugs Milk wher

want it got chocolate milk? Healthier types of milk grew ; sorganic milk

Growth Slows


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Growth SlowsExhibit 1: Fluid Milk Consumption per Capita (gallons)

35 -

30 -

25 -

20 -

15 -

10 -

5 -

1980 1983 1986 1989 1992 1995 1998 2001 2004

CaliforniaU.S.

Source: USDA Economic Research Service

California Class 1 Milk Sales in Millions o

ew rec ons n go mMarketing


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gMarketingBack to health

milk is healthy

Milk, a necessary ingredient to stay healthy and get riOsteoporosisPrevents PMS

Launch of Gravity Tour (1998)Official sponsor of Major League Soccer.Theme developed Strength comes from within.

Hurdles on the
http://c/Users/sandeep/Desktop/MBA%204th%20Term/Product%20Brand%20Management/got%20milk%20commercial%20ads/Funny__Commercials__Got_Milk___AvisoAd.Com_.flvhttp://c/Users/sandeep/Desktop/MBA%204th%20Term/Product%20Brand%20Management/got%20milk%20commercial%20ads/Osteoporisis.flvhttp://c/Users/sandeep/Desktop/MBA%204th%20Term/Product%20Brand%20Management/got%20milk%20commercial%20ads/PMS.flvhttp://c/Users/sandeep/Desktop/MBA%204th%20Term/Product%20Brand%20Management/got%20milk%20commercial%20ads/PMS.flvhttp://c/Users/sandeep/Desktop/MBA%204th%20Term/Product%20Brand%20Management/got%20milk%20commercial%20ads/Osteoporisis.flvhttp://c/Users/sandeep/Desktop/MBA%204th%20Term/Product%20Brand%20Management/got%20milk%20commercial%20ads/Funny__Commercials__Got_Milk___AvisoAd.Com_.flv


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Hurdles on theway

Independent Farmers Speak OutWon the Cochran case after three years and therefcontinued to campaign.

New directions in got milk


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New directions in got milkMarketingHispanic Consumers

32.5% of Californias total population (2001)Developed tagline targeting Spanish speaking households as

Amor Y Leche.Launched ad targeting Hispanics La Llorona which won TVawardCreated a campaign around the Mexican drink Licuados.

New rect ons n got m Marketing
http://c/Users/sandeep/Desktop/MBA%204th%20Term/Product%20Brand%20Management/got%20milk%20commercial%20ads/Got_Millk__La_Llorona.mp4http://c/Users/sandeep/Desktop/MBA%204th%20Term/Product%20Brand%20Management/got%20milk%20commercial%20ads/Got_Millk__La_Llorona.mp4


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Got Cheese?Cheese consumption grew every year reaching an all time high of 34 poundsin 2004.46% of all milk was used for cheeseproduction.

California was the second largestmanufacturer of cheese in the nation.

gMarketing

N di ti i g t ilk Marketin


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Expanding Distribution

Capitalizing obesity crisisImproved portable packaging and varietyof milk flavorsExpand distribution into vendingmachines, schools, and fast food

restaurants.Child Nutrition Act 2004Restaurants chains like McDonaldsbegan to serve milk with their meals.

New directions in got milk Marketin

New directions in got milk


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Whats next?Focus on new demographics

Russian FamilyCome up with fresh creative new innovative prodand packagingExpanded distribution ,or .what next?

New directions in got milkMarketing

n t at ves. oes t e r salienating its current consumer
http://c/Users/sandeep/Desktop/MBA%204th%20Term/Product%20Brand%20Management/got%20milk%20commercial%20ads/Russian.flvhttp://c/Users/sandeep/Desktop/MBA%204th%20Term/Product%20Brand%20Management/got%20milk%20commercial%20ads/Russian.flv


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alienating its current consumerbase?

Hispanic, being 32.5% of the totalpopulation, was a large market segmto be addressed.

CMPB risk was not alienating its cuconsumer base as it was addressingdifferent market segments differentl

the CMPB-health, cheese, Hispanic and newchannels of distribution Given the trends what


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channels of distribution. Given the trends, whatshould they do and how should they do it.

Work on Flavours Packaging Expansion of Milk Products Target emerging markets like India an

Exhibit 4: Annual Expenditures on Milk per Household, 2002


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180 -

160 -

140 -

120 -

100 -

80 -

60 -

D o l l a r s

Hispanic

White & Other Non-Hispanic

Bla

Source: Bureau of Labor Statistics

campa gn a can ey o o eep e messageand strategy fresh in the consumers minds? Arethere other examples of other successful campaigns


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p p gthat ran this long?

As long as people stop responding to the campaign.Call to action got ......?Continue with celebrity endorsements.Associate with sports and athletes.Sponsor different events.Increase the number of collaborations.Use of web ads in online magazines.


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Thank you.Thank you.got milk?got milk?

Have a Nice Day.Have a Nice Day.

Documents

California Case Presentation