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AGRICULTURAL economics project report
June 1975
DAIRY PROMOTION How Effective is It?
DAIRY PROMOTION -- HOW EFFECTIVE IS IT?
By
R. A. Cropp and T. F. Graf
R. A. Cropp is J\ssociate Professor of Agricultural Industries, University of Wisconsin - Platteville; and T. F. Graf is Professor of Agricultural Economics, College of Agricultural and Life Sciences, University of Wisconsin - Madison.
This report is based on work carried on under North Central Regional Research Project NC 101 "Alternative Solutions to New Problems of Dairy Marketing Cooperatives," and supported by the College of Agricultural and Life Sciences, University of Wisconsin - Madison.
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...
INTRODUCTION
r~ETHODOLOGY
TABLE OF CONTENTS
CHARACTERISTICS OF CONSUMERS SURVEYED Age Income Marita 1 status Children
FACTORS INFLUENCING CONSUMER PURCHASE OF DAIRY PRODUCTS ON THE DAY SURVEYED
Impulse vs. Various Factors Age and Income
FACTORS INFLUENCING CONSUMER PURCHASE OF DAIRY PRODUCTS OVER LONGER RUN
AWARENESS OF ADVERTISEMENTS ON DAIRY PRODUCTS Various media and age of consumer Various media and presence of children Various media and type of product
AWARENESS OF SPECIAL DISPLAYS OF DAIRY PRODUCTS Various products Location of display Age of consumer and recall of a special display
EVALUATION OF ADVERTISING AND PROt10TION Degree of infonnativeness about various products De gree of informativeness and the influence of children
3
3
4
4
9
12
18
20
AWARENESS OF SPONSORSHIP OF VARIOUS DAIRY PRODUCT ADVERTISEMENTS 24 Reasons for not purchasing dairy products
CONSUMER KNOWLEDGE OF THE FAT CONTENT OF DAIRY PRODUCTS 28
ADVERTISING AND PROMOTION OF DAIRY PRODUCTS BY RETAIL FOOD STORES 32 Advertising and Promotion Methods Frequency of Advertising Dairy Beverages Frequency of Advertising nanufactured Dairy Products Advertisin~ and Promotion Objectives Advertising and Promotion Expenditures
Sources of Dairy Advertising and Promotional Material
su~~r~ARY
Per capita consumption of dairy products has declined continuous1y for three decades. As a result, advertising, promotion and merchandising have been receiving increasing attention as a means of improving per capita consumption of dairy products. This report analyzes the effectiveness of dairy adverti sing and promoti ona 1 programs in infl uencinq consumer fJurchases.
This study, through a questionnaire-survey of 1 ,399 t~adison and ~~ilwaukee, Wisconsin consumers randomly selected and the managers of stores where they shopped determined; (a) consumer awareness of dairy advertising and promotional activities through newspapers, magazines, radio, television and retail food stores, (b) importance of advertising and promotion in influencing consumers' decision to purchase dairy products, (c) consumer knowledge and attitudes about specific dairy products and (d) attitudes of retail food store managers about advertising and promoting dairy products.
Over 88 percent of Wi scons in consumers cited "needed i til as thei r major reason for purchasing a dairy product, either on a particular day, or over the long run. "Taste" and "nutritional val ue" were the second and third most important reasons given for purchasing dairy products.
Only 13 percent of consumers said they were influenced by advertising and promotion to buy dairy products, and 5 percent by merchandising and displays.
Advertising and promotion were more important in cheese and ice cream purchases than for any other product. Advertising had more inf1uence on consumers' purchases of margarine than of butter. Advertisements and store displays on margarine were recalled more frequently than ads on butter or any other dairy product.
Except for cheese. yogurt and ice cream, merchandising and display had little influence on consumers' decision to purchas~ a dairy product.
Apparently dairy advertising, promotion, and merchandising has had only limited influences on Wisconsin consumer purchase decisions -- a real challenge to the dairy industry.
"Needed it" was a more important influence in the purchase of basic dairy products such as beverage milk and butter -- than dairy products used as meal alternatives -- cheese, cottage cheese, ice cream, etc. where "taste" and "nutritional value" were more important.
Seventy-two percent of consumers purchase butter because of "taste", compared to only 50 percent for margarine. Butter is preferred over margarine for taste, but margarine is purchased because of lower price and the perceived "cholesterol ll issue.
Most dairy products are not considered a IIgood price buyll. Except for powdered milk, less than 50 percent of consumers indicated "good buy" as an important factor in purchasing a dairy product. The three most important reasons for not buying dairy products are "too expensive", IIhigh in cholesterol II and IItoo fattening". The dairy industry must convey to consumers more infonnation on nutrition and costs of dairy products.
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Televisi on (based on consumer response) is the most effective medium to advertise dai ry products. foll owed by newspapers and maqazines. Over 73 percent of the consumers recalled seeing an advertisement of dairy products on televis ion. A larger percentage of the younger consume rs recalled seeing a t elev ision , newspaper, or magazine advert i sement on da iry products than older consumers, therefo re IIs l anting" dairy ads to the younger age group offe rs promi se.
Fewer consumers recalled advertisements on spec ific dairy products than on dairy products general l y. Less than 20 percent of consumers recalled seeing special grocery sto r.e di sp l ays of specific dairy products . Thus , improved da iry merchan dis ing also offers a special challenge to the dairy industry .
Onl y 46 percent of consumers surveyed knew the correct fat content of regular who l e mi l k) with one-third thinking it had over 5% fat. This is in contrast to 81 percent It/ho kne't' the correct fat content of 112 pe rcent II mil k, It/here the fat contan t is in t he title. Almost one-half of consumers (43%) didn't t hink dairy adve r t i sing informed them about t he food value of regular whole mil k.
t~ore effect ive dai ry advertising and labeling of fat and nutritional content of dairy products may i ncrease consumer knowledge and a\'<Iareness about dairy products' composition and therefore be a pl us sal es factor . At present, most consumers have i naccurate or inadequate knowledge about the content of dairy products, a si t uati on whi ch dairy advert is ing and nut ri t ional educati onal programs coul d hel p correct .
On ly 36 percent of consumers knew the correct fat content of butter. Consumers generally are of t he op inion t hat margarine is l ower in fat than butter, when in reality t he fat content is identi cal . Al so over half (52%) of consumers fe lt margarine is better nutriti onal ly than bu t t er. Butter has a poor image in t he eyes of many consumers. Nut r itional education and advertising programs may hel p correct these misconcepti ons by consumers, and thus help dairy sales.
There is a need t o more effectively communicate t o consumers the nutritional value of indi vidual dai ry products. With t he present substitutes for butter and cream and the t hreat of imi tati on and f ill ed mi lk and cheese substitutes, the dairy indust ry needs to i ncrease i ts advertising and consumer educational programs to prevent further sUbsti t ution and lower per capita dairy consumption.
Over 85 percent of the retail food stores surveyed had weekly ads of dairy products in newspapers -- the most frequent method of advertis ing dairy products. ~10st of the stores also had special displ ays of dairy products in their store at some t ime during the year. However, daily advert ising of dairy products was al most non-existent, as was da il y or weekly use of magazines, special flyers, radio, or t elevision.
Stores generally advertised dairy products only occas ionally , or when they had a pri ce special. Si nce beverage milk conlpetes with other beverages such as soft dri nks , which are heavily advertised, th i s lack of advert ising may adversely affect sales of dai ry beverages.
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The major objective of advertising and promotion of dairy products by the most store managers (90 percent) was lIattract customers to the store so as to increase total store sales". "Increase sales of dairy products ll was a far distant second, with "informing consumers on nutritional aspects of dairy products," and "informing consumers of table and cooking uses of dairy products," ranking even further down the scale as reasons far in advertising and promoting dairy products.
Store advertising expenditures for dairy products averaged 1.5% of dairy product sales, compared to an average 3.1% of all product sales. Dairy advertising expenditures by stores were therefore low compared to other store products.
Retail stores were receiving substantial quantities of advertising and promotional materi al from the American Dai ry Associ ation, the United Dai ry Industry Association, the National Dairy Council, and the Wisconsin Dairy CounC"il, but stores view dairy products as only a small segment of their operation.
The dairy industry will have to look to itself, and not retailers, for more effective dairy sales and promotion programs.
INTRODUCTION
Per capita consumpti on of dai ry products decl ined for three decades --from 819 pounds milk equivalent in 1940 to 558 pounds in 1971, a decrease of 32 percent. Although per capita consumption increased slightly to 561 pounds in 1972, it declined to 543 pounds for 1974. This long run decline may continue unless consumer desire to purchase dairy products is enhanced. The dairy industry also continues to face competition of dairy substitutes and imitations -- all of which compete for the consumer's attention and money.
This report evaluates the effectiveness of dairy promotion programs' influence on consumer buying. "Dairy promotion" -- advertising, merchandising, and nutritional education has been viewed as a means of improving per capita consumption of dairy products. Those who furnish money for promotion --dairy farmers in particular, are asking \'/hether dollars spent for dairy promotion expenditures yield economic returns, the same as dollars spent for other business purposes. Thus there is a need to evaluate the effectiveness of dairy promotional programs in influencing consumer purchase decisions -- the purpose of this study.
METHODOLOGY
Data for this study was collected in the metropolican areas of Madison and Milwaukee, Wisconsin in March 1973. Two questionnaires were developed and pretested in the two markets -- one for conS~lers, and one for managers of retail food stores.
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Twelve re ta il food stores were then randomly selected in each of the metropolitan areas for the purpose of disseminating questionnai res to conSLBTIers. In each of the metropolitan areas, 2,250 questionnaires with selfaddressed envel opes were handed to consumers in the twelve stores during the course of one day. In Madison, 685 (30.4%) of the consumer questionnaires were ret urned, and in Milwaukee 714 (31.7%), resulting in a total response of 1,399 (31. 1% ).
Questionnaires pertaining to advertising and promot ional practices of dairy products were distributed to 16 food stores in Mi lwaukee , and 20 in Madison. Eight managers of these stores in Milwaukee, and 14 i n Madison answered the questionnaire.
CHARACTERISTI CS OF CONSUMERS SURVEYED
Con sumers su rveyed were of similar ages in both Milwaukee and Madison. The majority (3/4) were in age brackets that purchase most of t he food -- 21 to 65 years . Thus , data in this study is from age brackets t hat make most food purchase dec i sions. (33% were 21 to 35, 22% were 36 tp 50, and 20% were 51 to 65 ) , (Table 1) .
Income
Income pa t terns among consumers in ~1adison and Milwaukee were simil ar . Slightly over one half (56.6%) had less than $15,000 annual famil y income. (Table 2). This compares with a national average of 70.2%. Thus the sampl e is reasonably representative of the situation nationall y.
Ma r i tal Status
Eighty percent of consumers surveyed were married and 20% sing l e (Tabl e 3) , aga in qu ite similar to the national average of 78% and 22%. The marital status of consumers s~rveyed in Milwaukee and Madison were practically ident ica l .
Children
Forty three percent of respondents who were married had children under age 6, 32% between the ages of 6 and 12, and 39% between the ages of 13 and 18 (Table 4). Thus a large proportion had children -- major consumers of dairy products, and therefore likely were more than casually conscious of dairy products .
FACTORS INFLUENCING CONSUMER PURCHASE OF DAIRY PRODUCTS ON THE DAY SURVEYED
Impu1_~~Various_ Factors
Less than 9% of consumers indicated they were not influenced by promotional economic taste, or nutritional factors in the purchase of dairy products (Table 5). The major reason (89% of consumers) for purchasing a dairy
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AGE
20 and under
21 - 35
36 - 50
51 - 65
Over 65
Gave no age
TOTAL
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TABLE 1
AGE OF CONSUMERS SURVEYED, MILWAUKEE AND MADISON, WISCONSIN, MARCH 1973
MILWAUKEE MADISON NO. % NO. %
13 1.8 12 1.8
200 28.0 267 39.2
163 22.9 144 21.2
156 21.8 118 17.4
47 6.6 27 3.7
135 18.9 117 16.7
714 100.0 685 100.0
* Source: Survey conducted durinq March 1973 in retai 1 stores in Madison, Wisconsin.
TOTAL NO. %
25 1.8
467 33.4
307 21.9
274 19.6
74 5.3
252 18.0
1399 100.0
Hi 1 \.,tau kee and
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'fABLE 2
ANNUAL GROSS HOUSEHOLD INCOMES OF CONSUMERS SURVEYED, MILWAUKEE AND MADISON, WISCONSIN, MARCH 1973
MILWAUKEE MADISON INCOME NO. % NO. % NO.
-------
Under $5,000 71 9.9 61 8.9 132
$ 5,000 - 9,999 122 17.1 135 19.8 257
$10,000 - 14,999 224 31. 4 178 26.2 402
$15,000 - 19,999 102 14.3 103 15.2 205
$20,000 - 24,999 45 6.3 52 7.6 97
$25,000 - 29,999 16 2.2 18 2.6 34
$30,000 and over 12 1.7 16 2.3 28
Gave no income 122 17.1 122 17.4 244
TOTAL 714 100.0 685 100.0 1399
TOTAL
%
9.4
18.4
28.8
14 07
6.9
2.4
2.0
17.4
100.0
MARITAL STATUS
Married
Single
TOTAL
CHILDREN'S AGES
Under 6
6 - 12
13 - 18
TOTAL*
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TABLE 3
MARITAL STATUS OF CONSUMERS SURVEYED, MILWAUKEE AND MADISON, WISCONSIN, MARCH 1973
MILWAUKEE MADISON
NO. % NO. %
568 79.5 549 80.1
146 20.5 136 19.9
714 100.0 685 100.0
TABLE 4
CONSUMERS SURVEYED WITH CHILDREN LIVING IN THE HOUSEHOLD, BY AGES OF CHILDREN MILWAUKEE AND MADISON, WISCONSIN, MARCH 1973
MILWAUKEE MADISON
NO. % NO. %
312 54.9 172 31. 3
191 33.6 167 30.4
249 43.8 182 33.2
568 ----- 549 -----
* Total of consumers surveyed who were married.
TOTAL
NO. %
1117 79.8
282 20.2
1399 100.0
TOTAL
NO. %
484 43.3
358 32.1
431 38.6
1117 -----
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TABLE 5
FACTuRS THAT INFLUEf~CED MILWAUKEE AND MADISON CONSUr"ERS TO PURCHASE DAIRY PRODUCTS ~N THE DAY THEY RECEIVED THE QUESTI ONNAIRE. BY AGE AND INCOME -- MARCH 1973
FACTORS
AGE ADVERTISING MERCHANDIS- NUTRITIONAL NOT AND ING AND GOOD BUY NEEDED IT TASTE VALUE INFLUENCED
PROMOTION DISPLAYS
NO. % NO. % NO. % NO. % NO. % NO. % NO. %
20 and under 3 12.0 2 8.0 8 32.0 22 88.0 12 48.0 10 40.0 2 8.0 21 - 35 46 9.8 13 2.8 177 37.9 423 90.6 244 52.3 221 47.3 30 6.4 36 - 50 35 11.4 14 4.6 105 34.2 269 87.6 122 39·7 129 42.0 25 8.1 51 - 65 48 17.5 17 6.2 63 23.0 242 88.3 116 42.3 112 40.9 21 7.7 Over 65 20 27.0 7 9.5 14 18.9 64 86.5 30 40.5 31 41.9 20 27.0
TOTAL ~/ 152 13.3 53 4.6 367 32.0 1020 88.9 524 45.7 503 43.9 98 8.5
INCOME
Under $5,000 31 22.0 9 6.3 43 30.5 115 81.6 67 47.5 57 40.4 17 12.1 $ 5,000 - 9.999 35 13.6 10 3.9 89 34.6 224 87.2 137 53.3 125 48.6 32 12.5 $10,000 - 14,999 49 12.2 19 4.7 126 31. 3 358 89.1 173 43.0 164 40.8 25 6.2 $15,000 - 19,999 20 9.8 11 5.4 72 35.1 187 91.2 78 38.1 91 44.4 13 6.3 $20,000 - 24,999 11 11. 3 4 4.1 27 27.8 88 90.7 43 44.3 38 39.2 5 5.2 $25,000 - 29,999 2 5.9 1 2.9 9 26.5 27 79.4 16 47.1 15 44.1 3 10.7 $30,000 and over 4 14.3 0 0.0 7 25.0 27 96.4 15 53.6 10 35.7 2 7.1
TOTAL ~/ 152 13.1 54 4.6 373 32.0 1026 88.1 529 45.5 500 43.0 97 8.3
~/ 1147 consumers responded by age.
~/ 1164 consumers responded by income.
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product on that day was that they "needed it". Taste and nutritional value were the next two most important reasons given (46% and 44%). Therefore, good quality and consumer education on the nutritional value of dairy products appear to be important factors in influencing consumer rurchases of dairy products.
Only 13% of the consumers indicated they were influenced by advertising and promotion to purchase dairy products, and less than 5% by merchandising and displays. Thus the dairy industry still has a major challenge in influencing dairy purchases through ads, promotion and merchandising.
Age and Income
Data in Table 5 indicates a larger percentage of consumers over age 65 than under age 65 were not influenced by economic, taste, and nutritional factors in the purchase of dai ry products (27% of consumers over age 65 and 6 to 8% of those under age 65). Nevertheless, a higher percentage of the older than younger consumers indicated being influenced by advertising and promotion (18 to 27% of consumers over age 51 and 10 to 12% of those under 51 ye a rs old).
FACTORS INFLUENCING CONSUMER PURCHASE OF DAIRY PRODUCTS OVER LONGER RUN
The same factors were important in influencing consumer purchase of dairy products over the longer run as on the day they received the questionnaire. The most important factor for purchasing dairy products over the lonrJer run was IIneed for the product", followed closely by "taste" and "nutritional value" (Table 6). Again the factors of "advertising and promotion" and "merchandising and di spl ay" \A/ere re 1 ati vely un important in infl uencing consumers to purchase dairy products over the longer run.
"Needed it" was rated by consumers as a very important factor i nfl uencing purchase of regular whole milk and 2% milk ( 86%and 83% of consumers, respectively). Only 71% indicated "needed itll was very important in their decision to purchase butter, compared to 85% for margarine, another important challenge to the dairy industry in their promotion programs.
"Needed it" was not ranked very important by 47-66 percent of consumers for products such as cheese, cottage cheese, buttermilk, cream, and ice cream. These dairy products are not as basic to consumers as beverage milk, but rather are viewed as meal alternatives. Changing this consumer attitude through promotion programs may help the dairy industry through increased sales.
"Taste ll was rated by 70% of the consumers as an important factor influencing the purchase of dairy products. Consumers especially liked the taste of cheese, cottage cheese and butter. IITaste" was rated as very important by 85% of the consumers for cheese, and 72% for cottage cheese and butter -- compared to 50% for margarine. The taste of butter is preferred over the taste of margarine by a large percentage of consumers. The dairy industry should try to capitalize on this in their promotion programs.
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TABLE 6
FACTORS THAT NORMALLY INFLUENCE MILWAUKEE AND MADISON CONSUMERS TO PURCHASE VARIOUS PRODUCTS, MARCH 1973
FACTOR AND ITS IMPORTANCE IN INFLUENCING DECISION
CONSUMERS TO PURCHASE PRODUCT
PRODUCT RESPONDING NOT VERY IMPORTANT IMPORTANT I MPORTANT
NO. NO. % NO. % NO. L ADVERTISING AND PROMOTION
Regular Whole Milk 392 322 82 47 12 23 6 2% Milk 453 358 79 52 11 43 10 Skim Milk 299 256 86 26 9 17 5 Powdered Milk 321 260 81 44 14 17 5 Cheese (Cheddar) 551 370 67 114 21 67 12 Cottage Cheese 474 358 76 71 15 45 9 Buttermilk 252 230 91 18 7 4 1 Cream 291 260 89 20 7 11 J~
Butter 295 318 80 38 10 39 10 Yoghurt Margarine 538 333 62 98 18 107 20 Ice Cream 535 340 64 106 20 89 16
MERCHANDISING AND DISPLAY
Regular Whole Milk 368 317 86 39 11 12 3 2% Milk 419 360 86 42 10 17 4 Skim Milk 279 250 90 21 7 8 3 Powdered Milk 298 265 89 25 8 8 3 Cheese (Cheddar) 529 361 68 108 20 60 12 Cottage Cheese 451 341 76 72 16 38 8 Buttermilk 234 208 89 20 8 6 2 Cream 275 249 91 17 6 9 3 Butter 269 310 84 34 9 25 7 Yoghurt 301 222 74 44 15 35 12 Margarine 483 371 77 66 14 46 9 Ice Cream 493 367 74 80 16 )~ 6 10
GOOD BUY
Regular Whole Milk 417 190 46 77 18 150 36 2% Milk 499 179 36 86 17 234 47 Skim Milk 300 161 54 43 14 96 32 Powdered Milk 387 113 29 38 10 2 36 51 Cheese (Cheddar) 622 189 30 148 24 285 46 Cottage Cheese 511 192 38 118 23 201 39 Buttermilk 250 182 73 29 12 39 15 Cream 287 205 71 26 9 56 20 Butter 401 219 55 55 14 127 32 Yoghurt 333 167 50 65 20 101 30 Margarine 696 102 15 98 14 496 71 Ice Cream 599 196 33 124 21 279 47
(continued)
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TABLE 6 (con It. )
FACTOR AND ITS IMPORTANCE IN INFLUENCING DECISION
CONSUMERS TO PURCHASE PRODUCT PRODUCT RESPONDING NOT VERY
IMPORTANT IMPORTANT IMPORTANT
NO. NO. L NO. L NO. % NEEDED IT
Regular Whole Milk 622 76 11 22 3 564 86 2% Milk 685 84 12 34 5 567 83 Skim Milk 385 104 27 36 9 245 54 Powdered Milk 406 106 26 41 10 259 54 Cheese (Cheddar) 738 97 13 141 19 500 58 Cottage Cheese 653 119 18 108 17 426 65 Buttermilk 322 139 43 32 10 151 47 Cream 387 101 26 31 8 255 66 Butter 578 111 19 60 10 407 71 Yoghurt 350 179 51 55 16 116 33 Margarine 834 62 7 68 8 704 85 Ice Cream 662 207 31 113 17 342 52
TASTE
Regular Whole Milk 473 105 22 73 15 295 67 2% Milk 491 122 25 89 18 280 57 Skim Milk 303 148 49 43 14 112 37 Powdered Milk 323 190 59 49 15 84 26 Cheese (Cheddar) 790 30 4 90 11 670 85 Cottage Cheese 639 70 11 111 17 458 72 Buttermilk 292 138 47 39 13 115 40 Cream 321 127 40 42 13 152 47 Butter 527 92 18 54 10 381 72 Yoghurt 384 83 22 62 16 239 62 Margarine 593 154 26 141 24 298 50 Ice Cream 807 32 4 85 11 690 85
NUTRITIONAL VALUE
Re gular Whole Milk 539 80 15 72 13 387 72 2% Milk 595 73 12 72 12 450 76 Sk im Mj.lk 359 98 27 46 13 215 60 Powder'ed Milk 388 121 31 42 11 225 58 Cheese (Cheddar) 723 90 12 148 21 485 57 Cottage Cheese 681 76 11 108 16 497 73 Buttermilk 284 144 51 30 10 110 39 Cream 296 186 63 41 14 69 23 Butter 459 167 36 66 14 226 50 Yoghurt 393 94 24 79 20 220 56 Margarine 604 189 31 135 22 280 47 Ice Cream 600 190 32 156 26 254 42
Nutritional value was rated by consumers as a very important fa ctor in their purchase of skim milk, powdered mi l k, cheese , and yogurt (60, 58 , 57 and 57% of the consumers, respectively). These product s are often used as sources of protein in the meal or in special health diets . Thirty-nine percent of consumers indicated nutritional value was an important factor in the purchase of buttermilk, and 42% in the purchase of ice cream. Ice cream is often bought because people like it, and it goes good as a dessert or snack •
. Consumer response indicates it may be profi table to stress the nutritional value of dairy products. Consumers appear to be health conscious.
Most dairy products were not considered a good buy because of price. Margarine ranked hig her than any dairy product (71% ), and except for powdered milk, less than 50% of the consumers indicated "good buy " as a very important factor in t he purchase of any dairy product. For exampl e , only 47% felt ice cream and 2% mil k was a "good buy", and 35% that regu l ar mi 1 k was a II good buy". Getting the low nutritional cost of da iry products across to consumers could help the dairy industry.
Less than 17% of the consumers indicated advertis i ng and promotion \'1as a very important factor in influencing them to purchase dairy products. AdvertisinS' and promotion was adjudged most important for cheese and ice cream. Twenty-one percent and 20% respectively indicated t hey were important factors in the ir dec is i on to purchase cheese and ice cream.
Advert is ing and promot ion appeared to have more influence on consumers to purchase ma rgarine than to purchase butter. Thirty-ei tht percent indicated this fact or was important or very important in t heir decision to purchase margar ine compared to only 20 percent for butter. Advertising is needed to hold the sales volume when there are close substitutes .
Except for cheese, yogurt, and ice cream, merchand is ing and dis play appeared to have l,ittle influence ori consumers' decision to buy dairy products. Thirtytwo percent indicated merchandising and display were either important or very importan t influences on their decision to purchase cheese (27% for yogurt and 26% for ice cream). In contrast, 76 to 90% ind i cated merchandising and display were not important in their decisions to pu rchase these dai ry products .
Although merchandising and display appeared t o have a relatively small influence on consumer purchases of dairy products, more and improved emphasis in this area may favorably influence sales. r~e rchan di s ing and display was more importan t for cheese, yogurt and ice cream than other dairy products. These products are more frequently on special display or given speci al emphasis on merchandi sing by food reta il ers. Beverage mil k products , butter and powdered mi 1 k are rarely given special display emphasis in retail food stores -- therefore less impetus fo r consumer purchases.
AHARENESS OF ADVERTISEr~ENTS ON DAI RY PRODUCTS
Various media and age of consumer
Television appears to be the most effective medium to use in advertising dairy products. Over 73% of the consumers surveyed recall ed a dairy product
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advertisement on television (Table 7). A larger percentage of younger consumers recalled seeing television ads on dairy products than older consumers over 93% 20 years and under, and 87% who were 21 to 35; compared to 60% who were 51 to 65, and 53% of those who l"iere over 65. Di recti ng T. V. dai ry ads at the younger age groups makes sense. It appears they're the ones with whom such ads register to the greatest extent.
The second and third most important advertising media for recalling dairy advertisements appear to be newspapers and magazines (67 and 60% respectively of consumers recalled). There was a lesser difference by age with these media than with television. Nevertheless, the largest percent of the consumers recall ing dairy advertisements in newspapers and magazines ~'ere between the ages of 21 and 35 (74% for ne\'Jspapers and 68% for magazi nes) and the lowest percent were over age 65 (38% for newspapers and 43% for magazines). Aiming newspaper and magazine ads toward the younger age groups may also be beneficial.
Over 54% of the consumers recalled hearing a dairy advertisement over the radio. The trend by age was similar to that of magazines and newspapers, with 62% between ages 21 and 35 hearing a radio ad and only 33% over age 65. The same downward trend by age also existed with respect to seeing dairy advertisements on billboards.
Surprisingly, an average of only 74% of consumers could recall seeing a dairy product store display. However, 80% of those between the ages of 21 and 35 recalled seeing such a store display, emphasizing the need to structure such displays to the interests of this age group if promotional return is to be maximized.
All in all, it appears that advertisements of dairy products should be directed mainly towards consumers between the ages of 20 and 35. They are the ones that seem to notice them most, and remember them the longest.
Various media and presence of children
The presence of children in the home affects the consumer recall of dairy advertisements. For all types of media -- magazines, newspapers, radio, television, billboards, and store displays -- a larger percentage of consumers with children living at home could recall an advertisement of dairy products, than those with no children at home (Table 8). Consumers with children living at home buy larger quantities of dairy products and as a result are more likely to be aware of dairy ads. Dairy promotion programs should attempt to capitalize on this phenomena.
Various media and type of product
Consumers were asked to indicate whether or not they could recall hearing, reading, or seeing an advertisement of various products IIwithin two weeks" of receiving the questionnaire (Table 9), and whether they could Bever recall" such an advertisement (Table 10), In comparing Tables 9 and 10 with Table 7, a considerably smaller percentage of consumers recalled advertisements on "specific" dairy products than "some type ll of advertisement on dairy products. The majority of consumers could recall dairy product advertisements, but considerably fewer were able to recall what IIspecific ll dairy product was being advertised.
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TABLE 7
NUMBER AND PERCENT OF CONSUMERS SURVEYED WHO RECALLED HEARING, READING OR SEEING AN ADVERTISEMENT THROUGH VARIOUS MEDIA ON DAIRY PRODUCTS, BY AGE,
MILWAUKEE AND MADISON, WISCONSIN, MARCH 1973*
ADVERTISING MEDIA
STORE AGE MAGAZINE NEWSPAPER RADIO TV BILLBOARD DISPLAY OTHER
NO. -----.L NO. _%- NO. -----.L NO. -----.L NO. -----.L NO. -----.L NO. -----.L 20 and under 17 60.7 16 57.1 12 42.9 26 92.9 23 82.1 12 42.9 2 7.1
21 - 35 374 68.4 406 74.2 341 62.3 473 86.5 407 74.4 300 80.2 44 8.0
36 - 50 209 59.2 238 59.2 191 54.1 245 69.4 170 48.2 169 47.9 27 7.7
51 - 65 157 51.6 192 63.2 151 49.7 183 60.2 118 38.9 117 38.5 15 4.9
Over 65 38 43.2 33 37.5 29 33.0 47 53.4 27 30.7 27 30.7 1 1.1
ALL AGES 795 60.2 885 67.1 724 54.9 974 73.8 745 56.4 625 47.4 89 6.7
* 1320 of the 1399 consumers answered the question by age.
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TABLE 8
NUMBER AND PERCENT OF CONSUMERS SURVEYED WHO RECALLED HEARING, READING OR SEEING AN ADVERTISEMENT THROUGH VARIOUS MEDIA ON DAIRY PRODUCTS, BY CHILDREN
MILWAUKEE AND MADISON, WISCONSIN, MARCH 1973
ADVERTISING MEDIA
CHILDREN IN STORE THE HOME MAGAZINE NEWSPAPER RADIO TV BILLBOARD DISPLAY OTHER
NO. ----.L NO. ----.L NO. ----.L NO. -----L NO. % NO. _%- NO. -----.L Yes 458 63.6 507 70.3 409 56.7 543 75.3 416 57.7 348 48.3 54 7.5
No 384 56.7 438 64.7 358 52.9 489 72.2 381 56.2 318 47.0 41 6.0
TOTAL 1398 60.3 1398 67.7 1398 55.0 1398 74.0 1398 57.0 1398 47.7 1398 6.9
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TABLE 9
NUMBER AND PERCENT OF CONSUMERS SURVEYED WHO RECENTLY HEARD, READ, OR SAW THROUGH VARIOUS MEDIAS AN ADVERTISEMENT ON VARIOUS PRODUCTS
MILWAUKEE AND MADISON, WISCONSIN, MARCH 1973*
ADVERTISING MEDIA
STORE PRODUCT MAGAZINE NEWSPAPER RADIO TV BILLBOARD DISPLAY OTHER
NO. % NO. % NO. -.L NO. -----.L NO. ~ NO. -----.L NO. _%-
Regular Whole Hilk 41 5. 5 167 22.2 79 10.5 295 39.2 92 12.2 78 10.4 27 3.6
2% Milk 11 1.5 146 19.4 64 8. 5 75 10.0 33 4.4 98 13.0 27 3.6 Skim Milk 20 2.7 117 15.6 0 0.0 111 14.8 42 5.6 54 7.2 25 3.3 Powdered Milk 41 5. 5 113 15.0 63 8.4 154 20.5 24 3.2 46 6.1 29 3.9 Cheese
(Cheddar) 147 19.6 209 27.8 73 9.7 143 19.0 33 4.4 131 17.4 34 4.5 Cottage Cheese 100 13.3 156 20.7 71 9.4 58 7.7 28 3.7 91 12.1 35 4.7 Buttermilk 55 7.3 87 11.6 67 8.9 38 5.1 23 3.1 28 3.7 16 2.1 Cream 58 7.7 87 11.6 48 6.4 39 5.2 26 3.5 42 5.6 34 4.5 Butter 151 20.1 136 18.1 64 8.5 111 14.8 39 5.2 63 8.4 45 6.0 Margarine 214 28.5 231 30.7 80 10.6 440 58.5 43 5.7 72 9.6 42 5.6 Yoghurt 85 11. 3 119 15.8 76 10.1 80 10.6 22 2.9 78 10.4 35 4.7 Ice Cream 120 16.0 191 25.4 66 8.8 150 20.0 41 5.5 83 11. 0 48 6.4 Dairy Products
in General 157 20.9 154 20.5 84 11. 2 173 23.0 76 10.1 100 13.3 56 7.5
Number of consumers who saw an advertisement = 752 Percent of consumers who saw an advertisement = 75.8%
* 992 out of 1399 consumers answered this question. Percents are the percents of the 752 consumers who indicated seeing an advertisement of a particular product within two weeks of receiving the questionnaire.
-17-
TABLE 10
NUMBER AND PERCENT OF CONSUMERS SURVEYED WHO COULD "EVER" RECALL HEARING, READING, OR SEEING THROUGH VARIOUS MEDIA AN ADVERTISEMENT ON VARIOUS PRODUCTS,
MILWAUKEE AND MADISON, WIS CONS IN , MARCH 1973*
ADVERTISING MEDIA
STORE PRODUCT MAGAZINE NEWSPAPER RADIO TV BILLBOARD DISPLAY OTHER
NO. -----L NO. -----L NO. -L NO. ----L NO. _%- NO. % NO. ----L Regular
Whole Milk 358 25.6 415 29·7 344 24.6 506 36.2 313 22.4 259 18.5 32 2.3 2% Milk 281 20.1 251 17.9 134 9.6 183 13.1 57 4.1 176 12.6 16 1.1 Skim Milk 215 15.4 179 12.8 67 4.8 198 14.2 43 3.1 104 7.4 13 0.9 Powdered Milk 231 16.5 162 11. 6 65 4.7 276 19.7 17 1.2 117 8.4 12 0.9 Cheese
(Cheddar) 392 28.0 306 21.9 150 10.7 410 29.3 165 11.8 310 22.2 20 1.4 Cottage Cheese 349 25.0 278 19.9 231 16.5 299 21.4 56 4.0 212 15.2 17 1.2 Buttermilk 242 17.3 93 6.7 67 4.8 102 7.3 22 1.2 85 6.1 11 7.9 Cream 237 16.9 113 8.1 37 2.6 84 6.0 23 1.6 94 6.7 16 1.1 Butter 395 28.2 324 23.2 201 14.4 250 17.9 399 28.5 166 11. 9 37 2.6 Margarine 469 33.5 460 32.9 198 14.2 622 44.5 101 7.2 203 14.5 12 0.9 Yoghurt 235 16.8 229 16.4 182 13.0 195 13.9 39 2.8 174 12.4 11 0.8 Ice Cream 355 25.4 430 30.7 179 12.8 358 25.6 174 12.4 246 17.6 25 1.8 Dairy Products
in General 324 23.2 393 28.1 332 23.7 347 24.8 213 15.2 227 16.2 30 2.1
* 1399 consumers were surveyed; percents are the percent of the consumers who could ever recall an advertisement of a particular product.
-18-
Also a larger percentage recalled an advertisement on dairy products at "some time" than ilwithin two weeks" of receiving the questionnaire. Consumers should be able to recall specific dairy products and favorable at tributes of these products, if advertising is to reach max imum ef fe ctiveness.
Unfortunately for the dairy industry, advertisements on margarine are recalled more frequently than advertisements on butter or any other dairy product. This was particularly true in television advertisemen ts. A television advertisement on margarine was "recently" recalled by 59% of the consuemrs compared to only 15% recalling a recent television adverti sement on butter (Table 9). The difference in recall was similar when consumers vlere asked i f they could ever recall such an advertisement (Table 10) . Th i s l arge diffe rence has an adverse influence on butter sales, since tel evision is one of the most effective dairy advertisinq media, and suggests an area of additional emphasis by the dairy industry. ~1argarine i s more frequently advertised on tel evis ion. and consumers know it.
A larger percentage of consumers could recal l advertisements in margarine than butter in other media as well - magazines and newspapers . There was little di fference in recall for radio and store displ ays . However, for billboards, a la rger percentage of the consumers cou l d na t one time" recall seeing an advertisement of butter than margarine (29 and 7%, respectively). This probably reflects the work of organizations such as the American Dairy Associati on of Wisconsin and suggests dairy promotional messages can be gotten across to consumers.
The four most frequently recalled product adverti sements in order of recall for the vari ous media we re: (a) maqazines -- ma rgarine , butter , cheese regular whole milk; (b) newspaper -- margarine, i ce cream , regular whole mi lk, dairy products in general; (c) radio -- regular whol e milk, dairy product s in general, cottage cheese, butter; (d) television -- marqarine, regular whole milk, cheese, dairy products in general; (e) bill boards -- butter, regular whole mi lk , ice cream, dairy products in general ; and (f) store displays -cheese , regular whole milk, ice cream, dairy products in general . The high posit ion for margarine in terms of consumer reca ll poses a serious cha llenge to the dairy industry in its dairy promotion programs.
In terms of the percent of consumers who could recall an advertisement from the various media, (a ) television was the most import ant for regular whole milk, cheese, and margari ne; (b) magazines for 2 percent milk, skim milk, powdered milk , cott age cheese, buttermilk, and cream; (c) magazines and neli/spapers about equal recall for yogurt and ice cream; and (d) bi llboards and magazines equal recal l fo r butter.
The dairy indl1stry should emphasize the app ro priate media for various products, in its promotional programs.
AWARENESS OF SPECIAL DISPLAYS OF DAIRY PRODUCTS
Various products
Less than one-fifth of the consumers recalled seeing recent speci al sto re displays of specific dairy products, and less than one-thi rd recalled overall displays of dai ry products and margarine (Table 11). A larger percentage of
-19-
TABLE 11
NUMBER AND PERCENT OF CONSUMERS SURVEYED WHO "RECENTLY" SAW A SPECIAL DISPLAY OF VARIOUS PRODUCTS IN A GROCERY STORE,
MILWAUKEE AND MADISON, WISCONSIN, MARCH 1973*
PRODUCT NO.
Cheese (Cheddar, Swiss, Etc.) ....... 166
Cottage Cheese .. 48
Sour Cream. . . 62
Fluid Milk (Regular, 2%, or Skim) 53
Powdered Milk . 50
Butter ... . 131
lI1argarine . . . . . 179
Chip Dip. . . . . . . . . . . . . • . . . . 122
Ice Cream . 90
Yoghurt . . . . . 152
TOTAL SEEING A DISPLAY 313
* 995 of 1399 consumers answered the question.
_%-
16.7
4.8
6.2
5.3
5.0
13.2
18.0
12.3
15.3
31.5
-20-
consumers (18 percent) recalled special displays of margarine than any da iry product .
Consumers most readily recalled seeing special st ore di splays of cheese, yogurt, butter, chip dip, and ice cream (17,15,13, 12 and 9% of t he consumers, respectively). Obviously the dairy industry has a long way to go in maximizing sales potential from store displays. Ach i evi ng greater "recal l" by consumers of store displays of dairy products, could increase dai ry sales.
Location of display
Fo r several products -- cheese, fluid milk, butter and ice cream -- almos t as many consumers recalled seeing special displays at state or county fairs as in grocery stores (Table 12). Sixty-one percent of the consumers recalled seeing special displays of dairy products in grocery st ores and 49% at state or county fa i rs (Table 13). This situation further emphasizes the potential for improved store displays of dairy products.
Age of consumer and recall of~ial disp1ay
The ability to recall a special display did not vary si gnifi cantl y by age of consumer except for those over 65, where recall was subs tantially lower -fo r example , 40% recalled store displays compared to 57 to 65% fo r the ot her age groups (Table 13). Store displays need not be geared t o spec ific age groups. All but the older group had comparable recal l.
EVALUATION OF ADVERTISING AND PROMOTION
Degree of informativeness about various~roducts
Over three-fourths of respondi ng consumers indi cated adve rti si ng \'Jas either informative or very informat ive as to the food val ue of speci fic dairy products and margarine (Table 14).
Consumers indicated advertisements of buttermilk and cream were the most ;nforulative (75% indicated very informative). The next two advert i sements in order of informativeness were yogurt and ice cream (53 and 52% indicated very informative) .
Forty-nine percent of consumers indi cated butter advert ; sements \'l/ere very informative v/ith respect to food value compared to 47% for margarine . Butt er ads have not convinced consumers butter has more food value than margarine -another chall enge for the dai ry industry.
Advertisements for skim mi"lk and 2 percent milk were considered more informative as to food value, than advertisements of regular whole milk (42, 41 and 33% respectively, indicating very informative).
A substantial number of consumers feel they are being i nfo rmed through advertisements as to the food value of various dairy products -- a pl us for t he dairy industry. However, consumers are not as aware of the nutrit ional val ue of food products as they should be. Therefore, in order to maintain or increase the sales of dairy products, it ;s extremely important that adver t isements convey a clear message to consumers as to the food value of these products.
-21-
TABLE 12
NUMBER AND PERCENT OF CONSUMERS SURVEYED WHO RECALLED SEEING A SPECIAL DISPLAY OF VARIOUS PRODUCTS AT VARIOUS LOCATIONS,
MILWAUKEE AND MADISON, WISCONSIN, MARCH 1973*
PRODUCT
Cheese (Cheddar, Swiss, Etc.)
Fluid Milk
Cottage Cheese
Powdered Milk
Sour Cream
Butter
Chip Dip
Margarine
Ice Cream
Yoghurt
* 1399 consumers surveyed
GROCERY STORE
NO.
475
178
258
222
121
194
408
246
310
280
_%-
34.0
12.7
18.4
15.9
8.7
13.9
22.2
20.0
LOCATION OF DISPLAY
STATE OR COUNTY FAIR
NO.
495
267
133
55
66
277
72
59
267
53
_%-
35.4
19.1
9.5
3.9
4.7
19.8
5.2
4 .2
19.1
3.8
WORLD DAIRY EXPO
NO.
138
107
37
20
34
78
22
26
49
23
9.9
7.7
2.6
1.4
2.4
5.6
1.6
1.9
3.6
1.6
-22-
TABLE 13
NUMBER AND PERCENT OF COHSUMERS SURVEYED WHO RECALLED SEEING A SPECIAL DISPLAY OF VARIOUS PRODUCTS AT VARIOUS LOCATIONS, BY AGE,
MILWAUKEE AND MADISON, WISCONSIN, MARCH 1973*
----LOCATION OF DISPLAY
GROCERY STATE OR WORLD DAIRY AGE STORE COUNTY FAIR EXPO
NO. ~ NO. -L NO. ~
20 and under 16 57.1 17 60.7 2 7.1
21 - 35 357 65.3 307 56.1 43 7.9
36 - 50 221 62.6 170 48.2 39 11.1
51 - 65 180 59.2 125 41.1 30 9.9
Over 65 36 40.1 25 28.4 7 8.0
ALL AGES 810 61.4 644 48.8 121 9.2
* 1320 of the 1399 consumers answered the question by age.
-
-23-
TABLE 14
DEGREE OF INFORMATIVENESS OF ADVERTISING ABOUT THE FOOD VALUE OF VARIOUS PRODUCTS, AS INDICATED BY MILWAUKEE AND MADISON, WISCONSIN CONSUMERS, MARCH 1973
NUMBER OF DEGREE OF INFORMATIVENESS
CONSUMERS WHO VERY NOT PRODUCT ANSWERED~/ INFORMATIVE INFORMATIVE INFORMATIVE
NO. 'E../ %'E../ NO. 'E../ %'E../ NO. 'E../ %E../
Regular Whole Milk 696 231 33.1 164 23.6 301 43.3 2% Milk 499 205 41.1 144 28.9 150 30.0 Skim Milk 441 185 41. 9 138 31.3 118 26.8 Powdered Milk 492 187 38.0 165 33.5 140 28.5 Cheese
(Cheddar, Sw iss, Etc.) 689 296 43.0 209 30.3 184 26.7 Cottage Cheese 554 237 42.8 186 33.6 131 23.6 Buttermilk 314 234 74.5 53 16.9 27 8.6 Cream 321 241 75.1 54 16.8 26 8.1 Butter 555 274 49.3 143 25.8 138 24.9 Margarine 703 329 46.8 174 24.8 200 28.4 Yoghurt 511 271 53.0 138 27.0 102 20.0 Ice Cream 622 322 51.8 162 26.1 138 22.1
a/ 1399 consumers were surveyed, however, not all consumers saw an advertisement on a particular product, nor did all consumers answer with a degree of informativeness.
'E../ Number and percent of those consumers who answered for a particular product.
-24-
Degree of informativeness and the influence of chi ldren
Even though advertisements of dairy products are frequentl y di rected towards the audience of parents with children~ point ing out the nut ritional va lue of these products, these consumers do not feel any more informed about the food value of dairy products than consumers without chi l dren (Tabl e 15) . This is a reflection on the difficulty of dairy product advertisements in communicating with target audiences~ another area of concern for the dairy industry .
AWARENESS OF SPONSORSHIP OF VARIOUS DAIRY PRODUCT ADVERTI SEMENTS
Consumers were more aware of advertisements of dairy products sponsored by the American Dairy Association (ADA) than any other sponsor. Almost onehalf recalled seeing a dairy advertisement sponsored by ADA (Tabl e 16 ). Dairy product advert isements sponsored by retail grocery store s~ and dairies were recalled by 41 and 40% of the consumers, respect ively .
Advertisements by these two sponsors differ f orm those of the ADA. The ADA is concerned with increasing the overall consumption of dairy products . Grocery stores and dairies are more concerned with increas ing the sales of their particular business operation. Often this type of advert i sement is for competitive purposes rather than to increase the overall sales of dairy products in the industry.
Twenty-four percent of the consumers recalled seei ng dairy product ad vertisements sponsored by the I'lisconsin Department of Agr iculture, very likely Vlisconsin cheese, or in conjunction with the Alice in Da iryland program.
Reasons for no~urcha~dairy products
Dairy products are "too expensive", and dairy products are "high in cholesterol" were the most important reasons given fo r not purchasing dairy products (13% of consumers)(Table 17). The high cholesterol i mage has been a problem of the da iry industry for several years. There is a con t inued need for effective advertising and consumer education to reduce this negative image of dairy products.
Dairy products are "too expensive ll is more recen t among consumers. The 1970 l s ha ve seen considerable consumer protest over food prices, es peci all y meat prices, and more recently, dairy prices -- mainly beverage milk products . Advertising is needed to convey to consumers the nutritional value and the relatively good buy of dairy products for meal pl anning.
Dairy products are IItoo fattening" was the third reason given by consumers for not purchasing dairy products (11%). One fad among consumers today i s weight watching. Consumers are concerned about eating high fat foods, suggesting the dairy industry must do a better job in explaining t he animal fat vegetable fat issue with respect to "weightll.
avera 11, consumers 1 ike the tas te of da i ry products and consider them of good quality. Only 3% indicated they did not purchase dairy products because of taste and 2% because of poor quality.
-25-
TABLE 15
DEGREE OF EFFECTIVENESS OF DAIRY ADVERTISEMENTS IN NEWSPAPERS, MAGAZINES~ AND ON TELEVISION, AS INDICATED BY MILWAUKEE AND MADISON, WISCONSIN CONSUMERS,
BY CHILDREN, MARCH 1973
MEDIA AND PRESENCE OF CHILDREN IN THE HOME
Magazines Children No children All consumers
Newspapers Children No children All consumers
Television Children No children All consumers
NUMBER OF CONSUMERS WHO ANSWERED~I
546 461
1007
567 480
1047
604 518
1122
DEGREE
VERY INFORMATIVE
NO. _%-
184 33.7 142 30.8 326 32.4
219 38.6 193 40.2 412 39.4
184 30.5 148 28.6 332 29.6
OF INFORMATIVENESS
NOT INFORMATIVE INFORMATIVE
NO. -----.L NO. -----.L
204 37.4 158 28.9 174 37.7 145 31. 5 378 37. 5 303 30.1
180 31. 8 168 29.6 161 33.5 126 26.3 341 32.6 294 28.1
169 28.0 251 41. 6 145 28.0 225 43.4 314 28.0 476 42.4
~/ 1399 consumers were surveyed, however, not all consumers saw a dairy advertisement in various media, nor did all consumers answer with a degree of informativeness.
-26-
TABLE 16
NUMBER AND PERCENT OF MILWAUKEE AND MADISON, WISCONSIN CONSUMERS WHO RECALLED SEEING DAIRY ADVERTISEMENTS BY
VARIOUS SPONSORS, MARCH 1973
CONSUl.,1ERS CONSUMERS TOTAL SPONSORS
Dairies
Grocery Stores
American Dairy Association
Wisconsin Dept. of Agriculture
=-=~.
WHO SAW
NO. -L 561 40.1
576 41. 2
686 49.1
339 24.3
WHO DID NOT CONSUMERS
NO. _%- NO. %
836 59.9 1397 100.0
821 58.8 1397 100.0
711 50.9 1397 100.0
1058 75.7 1397 100.0
AGE
20 and under
21 - 35
36 - 50
51 - 65
Over 65
ALL AGES*
* The total for the fact that surveyed.
-27-
TABLE 17
REASONS GIVEN BY MILWAUKEE AND MADISON CONSUMERS FOR NOT PURCHASING DAIRY PRODUCTS,
BY AGE OF CONSUMER, MARCH 1973
REASONS FOR NOT PURCHASING DAIRY PRODUCTS
TOO HIGH IN EXPENSIVE FATTENING DISTASTEFUL CHOLESTEROL
NO. 1 NO. 1 NO. 1 NO. 1 4 14 2 7 2 7 5 17
82 15 46 8 23 4 51 9
38 11 42 12 5 1 52 15
35 12 43 14 2 1 53 17
13 15 11 13 0 0 17 19
183 13 152 11 35 3 186 13
all ages is greater than the sum of consumers under each age some consumers did not indicate their ages. All ages include
POOR QUALITY
NO. ! 1 4
10 2
5 1
5 2
1 1
23 2
group due to all consumers
-28-
There was little difference between ages of consumers and reasons given for not purchasing dairy products. A slightly higher percentage of older than younger consumers indicated they did not purchase dairy products because the were fattening. People in their mid-30's and older are generally more weight conscious.
Consumers 36 years of age and older were also more concerned about cholesterol than those between the ages of 21 to 35. Many consumers believe consumption of dairy products wil' raise the cholesterol level in the body. causing a potential for high b'lood pressure and heart t rouble. Older consumers are mo re likely to be concerned about these health problems than younger ones .
The level of income of consumers appears to have some influence on their opinion as to whether dairy products are too expensi ve . Twenty-two percent with incomes under $5,000 indicated they did not purchase dai ry products because of price~ compared to 9% with incomes of $30,000 and over (Table 18). Not much variation in "too expensive" existed in the $5 , 000 - $30, 000 income bracket -- generally 11 to 15%. The proportion of consumers considering dairy products too expensive, is high enough especially at the l ower income level, to justify added emphasis by the dairy industry on the real f acts of the dairy price si t uation.
CONSUMER KNOWLEDGE OF THE FAT CONTENT OF DAIRY PRODUCTS
Not only are consumers concerned about their weight , but unfortunately the majority think dairy products are "high in fat". Seventy-nine percent thought regular whole milk contained more than 3.25% fat, with 46% peggi ng the fat content at 3.25 to 4.9%, 20% at 5.0 to 9.9% fat, and 13% at 10% or more (Table 19).
Ei ghty-one percentindi cated the correct fat cont ent of 2 percent mil k. Although fat content of regular milk is stated on mi l k cartons , consumers are more aware of the true fat content of 2 percent mi lk since the fat content is in the title. Conspicuous labeling of fat content and other nutritional contents of dairy products would be helpful.
One-third of the consumers overstated the correct fat content of skim, and 36% overstated the fat content of butter.
Unfortunately for the dairy industry, consumers feel margari ne has less fa t than butter -- with two-thirds pegging the fat content of marg arine at less t han 50%. In reality the fat content of the two products is identical . Bu tte r al so has a poor image in the eyes of many consumers. Fifty-two percent fel t that margarine is better nutritionally than butter (Table 20). Increased butter sales may be difficult without informing the consumers as to the correct nu·~ tritional contents of butter in comparison to margarine.
With substitutes for milk, cheese, butter, and cream widely available, the dairy industry needs to more effectively communicate to consumers the true nutritional value of individual dairy products.
-29-
TABLE 18
NUMBER AND PERCENT OF MIUIAUKEE AND MADISON, WISCONSIN CONSUMERS INDICATING THEY DO NOT PURCHASE DAIRY PRODUCTS
BECAUSE OF PRICE, BY LEVEL OF INCOME, MARCH 1973
CONSUMERS LEVEL OF INCm~E NO. %
Under $ 5,000 34 22
$ 5,000 - 9,999 36 12
$10,000 - 14,999 59 13
$15,000 - 19,999 27 11
$20,000 - 24,999 8 7
$25,000 - 29,999 6 15
$30,000 - and over 3 9
TOTAL* 183 13
* 183 of the 1 ,399 consumers surveyed indicated they did not purchase because of price.
-30-
TABLE 19
OPINIONS OF MILWAUKEE AND MADISON, WISCONSIN CONSUMERS ON THE FAT CONTENT OF VARIOUS PRODUCTS,
MARCH 1973
PRODUCT AND FAT CONTENT
Regular Whole Milk: less than 3.25% 3.25 - 4.9% 5.0 - 9.9% 10% or more
2% Milk: less than 2%
2% 2.1 - 9.9% 10% or more
Skim Milk: less than .5% .5 - 1.9% 2.0 - 9.9% 10% or more
Butter: less than 50% 50 - 79% 80% or more
Margarine less than 50% 50 - 79% 80% or more
CONSUMER OPINIONS
NUMBER
69 154
67 45
89 509 16 12
304 136
8 4
114 74
104
261 64 68
PERCENT
20.6 46.0 20.0 13.4
14.2 81.3 2.6 1.9
67.2 3001 1.8
.9
39.0 25.3 35.7
66.5 16.3 17.2
-31-
TABLE 20
OPINIONS OF MILWAUKEE AND MADISON, WISCONSIN CONSUMERS ON THE NUTRITIONAL VALUE OF BUTTER V.S. MARGARINE,
MARCH 1973
OPINION
Butter is better than margarine
Margarine is better than butter
No difference between margarine and butter
TOTAL
CONSUMERS
NO. %
288 24.8
601 51.8
271 23.4
1160 100.0
-32-
ADVERTISING AND PROMOTION OF DAIRY PRODUCTS BY RETAIL FOOD STORES
Questionnaires pertaining to advertising and promotional practices of dairy products were distributed to 16 food stores in f1ilwaukee and 20 in Madison. Eight managers of these stores in Milwaukee and '14 in Madison answered the questionnaire. A summation of their informat ion is presented below.
Advertising and Promotion r~ethods
All the primary methods of advertising and promoting dairy products -newspapers, magazines, special mailer or flyer, radio station, TV stati on, and special store displays -- were utilized by responding retail food stores (Table 21).
The newspaper was the most frequent method of advertising dairy products . Over 85% of the retail food stores surveyed in Mi lwaukee and Madison had weekly ads of dairy products in newspapers. However, da i ly advertis i ng of da iry products was almost non-existent, as was daily or weekly use of magazines, special flyers, radio stations, and TV stations. Furthermore, onl y a small proportion used newspapers for advertising dairy products duri ng June dairy month or the Chri stmas holodays.
Radio and TV stations were also used only occasionall y to advertise dai ry products -- by 50 and 25% respectively of the Milwaukee stores and 14 to 21 % respectively of the Madison stores.
Most stores did have special displays of dairy products i n their store at some time du r ing the year. Thirty-eight percent of Mi lwaukee stores and 7% of Madison stores had daily displays of dairy products. Twenty-five percent of Milwaukee stores and 21% of Madison stores had an occasi onal spec ial display of dairy products in their stores. However, only a smal l proport i on of t he stores had special displays during June dairy month, or the Chr istmas holidays.
r~agazines were not used to any great ext ent by t he stores to advertise dai ry products. Only 25% of the food stores i n Milwaukee and 7% in r1adison used magazines to advertise da iry products and then only occas ionally .
Frequency of Advertising Da~everages
Stores genera 11 y advertised da i ry products on 1 y oecas i ona 11 y, or when they had a price special (Table 22 a and 22 b).
Only 13% of the Milwaukee stores surveyed advertised regul ar wh ole milk weekly, 25% only during June, 13% only during the Christmas hol idays, and 63% when a price special was in effect. None of the Madison stores advert ised regular whole milk weekly, only during June, or the Christmas holidays, and only 21% when they had price specials.
Two percent milk and skim milk were advertised even less than reg ul ar wh ol e milk. Only 43% of the Madison food stores surveyed advertised skim mi lk occasionally, 29% when price specials were in effect, and none advertiserl skim milk weekly, only dur"ing June, or only during the Christmas holidays. Twenty-five percent of the Milwaukee stores advertised skim milk occasionally, 38% when price specials were in effect, but none only during June or the Christmas holidays.
-33-
TABLE 21. METHOD AND FREQUENCY OF ADVERTISING AND PROMOTION OF DAIRY PRODUCTS BY RETAIL FOOD STORES, MILWAUKEE AND MADISON, WISCONSIN, 1973
MILWAUKEE, WISCONSIN - 8 STORES
Frequency of use*
Method of When Have Advertising
Newspaper Magazines Special Mailer or Flyer Radio Station TV Station Special Display in
the Store
Newspaper Magazines Special Mailer or Flyer Radio Station TV Station Special Display in
the Store
Newspaper Magazines Special Mailer or Flyer Radio Station TV Station Special Display in
the Store
Daily
No.
1 a a a o
3
a a a a a
1
1 a o a a
4
%
12.5 0.0 0.0 0.0 0.0
37 .5
0.0 0.0 0.0 0.0 0.0
7.1
4.6 0.0 0.0 0.0 0.0
18.2
Weekly
No.
7 a 1 a 1
2
12 a 1 1 a
2
%
87.5 0.0
12.5 0.0
12.5
25.0
85.7 0.0 7.1 7.1 0.0
14.3
Occasionally
No.
a 2 5 4 2
2
%
0.0 25.0 62.5 50.0 25.0
25. a
During June
No.
a a 2 a a
1
%
0.0 0.0
25.0 0.0 0.0
12.5
MADISON, WISCONSIN - 14 STORES
1 1 8 2 3
3
7 .1 7 .1
57.1 14.3 21.4
21. 4
1 a a a a
1
7.1 0.0 0.0 0.0 0.0
Xmas Holidays Price
No.
a a 2 a a
2
1 a 1 o a
2
%
0.0 0.0
25.0 0.0 0.0
25.0
7.1 0.0 7.1 0.0 0.0
14. 3
Specials
No.
a a 3 a a
2
2 a 1 a a
2
%
0.0 0.0
37.5 0.0 0.0
25.0
14.3 0.0 7.1 0.0 0.0
14.3
ALL RBTAIL STORES SURVBYBD - 22 STORES
19 a 2 1 1
4
86.4 0.0 9.1 4.6 4 . 6
18.2
1 3
13 6 5
5
4.6 13.6 59.1 27.3 22.7
22.7
1 a 2 a a
2
4 . 6 0.0 9.1 0.0 0.0
1 a 3 a a
4
4.6 0.0
13.6 0.0 0.0
18.2
2 a 4 o a
4
9.1 0.0
18.2 0.0 0.0
18.2
* The number of responses to a method of advertising will not total the number of stores since a store may have indicated more than one frequency or not have used a method of advertising.
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TABLE 22a . DA!RY PRODUCTS ADVERTISED BY RETAIL FOOD STORES AN D FREQUENCY OF ADVE RTISING , MI LHAU KEE AND MADISON, WI SCONSIN, 1973~/
Frequency of Advertising
DAI RY PRODUCT Dai ly Weekly Occasionally
Milwaukee Madison Mi lwaukee Madison Milwaukee Madison No. % No. % No. % No. % No. % No. %
Regular Whole Milk 12. S 1 7.1 1 12.5 0 0.0 4 SO.O 6 42.9
2 Percent Mi 11< a 0.0 7.1 2 2S.0 1 7.1 4 SO.O 7 SO.O
Skim Mi 11< 0 0.0 7.1 1 12.5 0 0.0 2 25.0 6 42.9
Powdered Milk 0 0.0 7.1 0 0.0 0 0.0 3 37.S 3 21.4
Cheese (Cheddar, etc.) 0 0.0 7.1 2 2S.0 1 7.1 4 SO.O 7 SO.O
Cottage Cheese a 0.0 a 0.0 0 0.0 0 0.0 S 62.5 10 71.4
Buttenni 1 k 0 0.0 0 0.0 0 0.0 () 0.0 4 SO.O 7 50.0
Cream a 0.0 a 0.0 0 0.0 0 0.0 3 37.S 7 50.0
Butter a 0.0 7.1 12.5 1 7.1 3 37.S 5 35.7
Margari ne~1 0 0.0 a 0.0 5 62.5 3 21.4 2 25.0 7 50.0
Yoghurt 0 0.0 a 0.0 2 25.0 2 14.3 3 37.5 6 42.9
Ice Cream 0 0.0 1 7.1 2 2S.0 1 7. 1 2 25.0 10 71.4
~I Eight retail stores in Milwaukee and 14 in Madison.
~I Margarine was included as a comparison to butter.
/ {
DAI RY PRODUCT
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TABLE 22b. DAIRY PRODUCTS ADVERTISED BY RETAIL FOOD STORES AND FREQUENCY OF ADVERTISING, MILWAUKEE AND MADISON, WISCONSIN, 1973~/
Frequency of Advertising
During June£/ Xmas Ho1idays£/ \~hen Have
Price Specia1s£/
Milwaukee Madison Mi 1 waukee Mad; son Mi lwaukee Madison No. % No. % No. % No. % No. % No. %
- -
Regular Whole Milk 2 2S.0 0 0.0 1 12.S 0 0.0 S 62.S 3 21.4
2 Percent Mi 'j k 1 12.S 0 0.0 0 0.0 0 0.0 S 62.5 3 21.4
Skim Mi 1k 0 0.0 0 0.0 0 0.0 0 0.0 3 37.S 4 28.6
Powdered Milk 1 12.S 0 0.0 1 12.S 0 0.0 7 87.S 3 21.4
Cheese (Cheddar, etc.) 2 2S.0 2 14.3 2 2S.0 2 14.3 S 62.S 4 28.6
Cottage Cheese 2 25.0 2 14.3 2 2S.0 3 214 --7 7 87.S S 3S.7 • Buttenni 'j k 2 2S.0 1 7. 1 1 12. S 7.1 6 7S.0 4 28.6
Cream 2 2S.0 1 7. 1 4 SO.O 6 42.9 7 87.S 5 3S.7
Butter 2 2S.0 1 7.1 2 2S.0 1 7.1 6 7S.0 2 14.3
Margarine~/ 1 12.S 7. 1 2 2S.0 1 7.1 4 50.0 4 28.6
Yoghurt 1 12.S 0 0.0 1 12.S 1 7.1 6 7S.0 7 50.0
Ice Cream 2 25.0 3 21.4 3 37.S 3 21.4 6 7S.0 6 42.9
~/ Eight retail stores in Milwaukee and 14 in Madison. b/ Margarine was included as a comparison to butter. -£/ If a retail food store indicated advertising a dairy product weekly, its response would be in the "weekly" column
rather than "during June", IIXmas holidays", or "price specials",
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Advertising frequency for 2 percent milk, cream, and buttennilk generally followed the same pattern as for skim milk in the two citi es.
Major dairy beverage products are not continuously adver ti sed duri ng the year by the majority of retail food stores in Milwaukee or Madison . Since beverage mi lk competes with other beverages such as soft drinks , which are heavily advertised, logically this lack of advertising may adversely affect sales of dairy beverages.
Frequency of Advertising Manufactured Dairy Products
Powdered milk was not widely advertised by surveyed retai l food stores in Milwaukee or Madison. However, 88% of the Milwaukee stores and 21% of the Madison stores advertised pO\,Idered milk when price specials on the product were in effect. At other times, little or no advertising wa s done.
Cheddar, swiss, and cottage cheese were only occasionally advertised or when price specials were in effect. Approximately two-thirds of t he Milwauke stores and one-third of the Madison stores advertised cheese when having a price special, and one-half the stores in each city further occas ional ly advertised these products.
Cottage cheese was advertised only slightly more frequent ly t han t he other cheeses. No daily or weekly advertising was done, and most advert ising occurred during price specials.
Butter was somewhat less frequently advertised than margari ne . In Madison butter was advertised weekly by 7% of the stores, compared to 21% of the stores advertising margarine. Butter was advertised occas ional ly by 36% of the Madison stores, and margarine by 50%.
In r1ih/aukee food stores, butter was advertised weekly by only 13% of the stores, and margar ine by 63%. Butter was advertised occasional ly by 38% of the stores, and margarine by 25%. Margarine was also generally as heavily advertised as butter, even during June dairy month and the Christmas season.
Yogurt was advertised primarily when on a price special -- by 75% of the Milwaukee stores and 50% of the Madison stores.
Seventy-one percent of the r1adison stores, and 25~G of the Mi lwaukee stores advertised ice cream only occasionally, while 43% of the Madison stores and 75% of the Milwaukee stores advertised ice cream when on price specia l . Thus , ice cream, similar to other dairy products, was not heavily advertised.
Advertising an_d_!Iomotio_n Objectives
Retail food store managers were asked to rank in order of importance various advertising and promotion objectives for dairy products.
The objective ranked as number one by the most managers (90%) was "Attract custoocrs to the store so as to increase total store sales" (Table 23 a and 23 b).
The second most important objective appeared to be "Increase sales of dairy products". (30% of the store manaqers surveyed ranked this object ive as number 1.)
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TABLE 23a. OBJECTIVES OF ADVERTISING AND PROMOTING DAIRY PRODUCTS BY RETAIL FOOD STORES, MILWAUKEE AND MADISON, WISCONSIN, 1973~/
Rank 27 Milwaukee Madison
2 3 4 5 1 2 3 4 5
No. % No. % No. 2£. No. 2£. No. 2£. No. 1 No. 2£. No. 1 No. % No. 1
Increase sales of dairy products 3 43 3 43 0 0 0 0 14 3 23 5 39 3 23 0 0 0 0
Inform consumers on nutritional aspects of dairy products 0 0 14 0 0 3 43 2 29 0 0 0 0 R 3 23 8
Inform consumers of table and cooking uses of dairy products 0 0 0 0 2 29 14 2 29 0 0 0 0 1 8 8 4 31
Increase profits 14 14 3 43 14 0 0 2 15 2 15 2 15 8 0 0
Attract customers to the store so as to increase total store sales 6 86 14 14 0 0 0 0 12 92 1 8 0 0 0 0 0 0
a/ Seven retail stores in Milwaukee and 13 in Madison. One store in each of the cities did not answer the questions.
~/ A "l II indicates most important, "2" the next most important, etc. Not all stores ranked each objective from "l II to "5". Some stores ranked more than one objective equally as important, thus total responses under a rank such as "1" may exceed total store numbers.
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TABLE 23b. OBJECTI VES OF ADVERTISING AND PROMOTING DAIRY PRODUCTS BY RETAIL FOOD STORES, MILWAUKEE AND MADISON, WISCONSIN, 1973~/
OBJECTIVE
Increase sales of dairy products
Inform consumers on nutritional aspects of dairy products
Inform consumers of table and cooking uses of dairy products
Increase profits
Attract customers to the store so as to increase
1
No. %
6 30
o 0
o 0
3 15
total store sales 18 90
Rank~/ All Retail Stores
234
No. %
8 40
1 5
o 0
3 15
2 10
No. %
3 15
5
3 15
5 25
5
No. %
o 0
6 30
2 10
2 10
o 0
5
No. ~
1 5
3 15
6 30
o 0
o 0
~/ Seven retail stores in Milwaukee and 13 in Madison. One store in each of the cities did not answer the questions.
~7 A "1" indicates most important, "2" the next most important, etc. Not all stores ranked each objective from "1" to "5". Some stores ranked more than one objective equally as important, thus total responses under a rank slJch as "1" may exceed total store numbers.
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"Increase profits" was the third most important objective,
"Informing consumers on nutritional aspects of dairy products" and "Informing consumers of table and cooking uses of dairy products" were relatively unimportant objectives of store managers in advertising and promoting dairy products. These objectives were consistently ranked as the 4th or 5th most important objective or not ranked at all by store managers.
With the increased availability of various dairy product substitutes in retail food stores, there is a need for more nutritional education for consumers of various dairy products. This need was not being met by advertising and promotion programs carried out by stores involved in this study.
Advertising and Promotion Expenditures
The majority of the store managers surveyed either did not know or were unwilling to disclose expenditures for advertising and promotion of dairy products. Only 27% indicated advertising expenditures for dairy products.
The percent of dairy product sales dollar spent for advertising dairy products ranged from .2% to 3.5%, \'lith an average of 1.5% (Table 24). This was less than for all products in the store where an average of 3.1% of the total sales dollar was spent for advertising. Dairy advertising expenditures were therefore low, not high, compared to other store products.
Sources of Dairy Advertising and Promotional Material
Seventy-five percent of the store managers received material from the American Dairy Association or the United Dairy Industries Association (92% of the Madison stores and 43% of the Milwaukee stores) (Table 25).
Nutritional material from the National bairy Council, or the ldisconsin Dairy Council was received by 35% of the retail food stores surveyed. Fortythree percent of the Milwaukee stores received this material and 31% of the Madison stores.
Thus, retail stores were receivinq substantial quantities of advertising and promotional material.
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TABLE 24. EXPENDITURES OF ADVERTISING AND PROMOTING DAIRY PRODUCTS BY RETAIL FOOD STORES, MIUIAUKEE AND MADISON, WISCONSIN, 1973*
Type of Expenditure
1. Percent of total sales dollar spent for advertising all merchandise:
Number of stores quoti ng a percent Number of stores indicating did not know Number of stores not answering Range and average of percents quoted
2. Percent of dairy product sales dollar spent for advertising dairy products:
Number of stores quoting a percent Number of stores indicating did not know Number of stores not answering Range of percents quoted
Mil waukee
2 or 25% 1 or 13% 5 or 63% 2 to 10%
Average of 6%
2 or 25% 1 or 13% 5 or 63%
.2 to 2% Average of 1.1%
*Eight retail sotres in Milwaukee and 14 in Madison.
~~adi son
7 or 50% 2 or 14% 5 or 36% 1 to 5%
Average of 2.3%
4 or 29% 4 or 29% 6 or 43%
.2 to 3.5% Average of 1.7%
All Stores
9 or 41% 3 or 14%
10 or 45% 1 to 10%
Average of 3.1 %
6 or 27% 5 or 23%
11 or 50% .2 to 3.5%
Average of 1.5%
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TABLE 25. MADISON AND MILHAUKEE RETAIL FOOD STORES RECEIVING DAIRY ADVERTISING AND PROMOTIONAL MATERIAL FROM VARIOUS SOURCES, 1913*
•
SOURCES OF ADVERTISING AHD PROMO':'IONAL
MATERIAL
Stores Receiving ~aterial Stores Not Receiving Material
1. Suppliers of dairy products
2. A~erican Dairy Assoc. or United Dairy Industries Assoc.
3. Nutritional material from National Dairy Council, or Hisconsin Dairy Council
:-1ilwallkee
No.
7 100
3 43
3
Madison
No. %
13 100
12 92
4 31
A.ll Stores Milwaukee Madison All Stores
I~ 0 • % No. % No. % No. %
20 100
15 15 4 51 1 8 5 25
35 4 51 9 69 13
*Seven retail stores in Milwaukee and 13 in Madison. One store in each city had not answered the questio!1s.
