got Milk: Branding a Commodity

Backdrop
Dairy Industry Stakeholders

Farmers
Processors Retailers

CMPB Formation (1993)

Milk consumption declined (70s & 80s) Beverage Category

Total growth of 18% (70s & 80s)

Question 1
A. What associations do consumers have for milk?
B. What are the implications of these associations in terms of building brand equity for and increasing the consumption of milk?

California Milk Processor Board Problems & Challenges

Decline
In Milk Consumption In Profit In Milks market share in beverages

Stakeholders
Conflicting Objectives Competitive nature of Processors Fund Raising

market

Competitors
Bigger Campaign budgets Brand focused Marketing Strong Brand Associations Coke Snapple

Commodity Marketing
Mostly Pull Strategy Changing Category Attitudes Cross Elasticity of Demand Target of Community Activist Limited Budgets

Consumer Associations
User Imagery -Children -Adults / Teenagers -Baby beverage: outside the home Usage Imagery -Taken at Home - Complements other food types

Product-Related Attributes -Not thirst quenching -Lack of flavour -Milk is White & Sold in Gallons

MILK

Brand Personality - Dull & Boring

Functional Benefits -Nutritious -Calcium Rich Experiential Benefits Filling Drink

History & Heritage -Nostalgia -Ritual

Harmful

Low consideration Credible Quality Nutritional drink Reliable

Style Missing

Implications of Associations Diminishing Behavioral

Loyalty Less Intense Activity Resonance

Social Approval
Judgments

Feelings

Health Dull & Boring Personality mismatch Rituals

Performance

Imagery

Salience

Milk

Question 2
A. Evaluate the CMPB marketing program now and

back in early 90s. What do you see as its strengths and weaknesses? B. What changes do you make?

Old Marketing Campaign

Milk Does a Body Good Campaign - Displayed target group drinking milk - Emphasis on Nutrients and benefits - Milk was shown without food - Generated positive attitudes towards milk

New Marketing Campaign Building Brand Equity

Objectives - Change Consumer Behavior
- Increase Brand Breadth

- Make Consumers think about milk - Refine Brand Image - Halt Sales Decline

Target Market - Regular / Loyal users of Milk (70%) - Behavioral Segmentation

- When & Where consumers drink Milk

- Identify fresh insights of the target consumer - FGDs / Experiential Results

New Marketing Campaign Building Brand Equity

Got Milk Campaign Creativity at its Best - Deprivation Strategy: Food was shown without Milk - Sell Food + MILK - Entertain but sell: (FunnyRelevant) - Treat the consumer with respect: Get Milk or GOT MILK ! - Brand Signature: Got Milk ? - Longevity of the Campaign - Making Milk look cool - Co-branding

New Marketing Campaign Building Brand Equity

Integrated Communication Strategy - Priming purchases at PoS
Billboards Bus Stop ads Got Milk checkout dividers PoP displays Got Milk stickers on bananas etc.

Media Strategy - Ideal time to communicate

On the way to the store In the store At home

Synchronization of TV ads & consumption

timings
Breakfast, late afternoon, late evening

Evaluation Got Milk Campaign

6% increase in no of milk consumers. Changing

consumer behavior 1.07% increase in Sales Volume Sales Increase Ads - 60% Aided Recall within 3 months Making Consumers Think about Milk Licensing of Got Milk? National Dairy Advertisement of the Year | Effie Award 1995

Strengths & Weakness

Collaborative Marketing
Marketing with complementary foods

Right Target Customers Partnership with ad agency Extremely creative campaign Integrative Marketing
Television Billboards

Memorable and inspiring brand slogan and

signature
Got Milk? Iconic Status

Non Milk drinkers were not targeted (Weakness)

Question 3
A. Evaluate their Hispanic marketing initiatives ?
B. Does the CMPB risk alienating its current

consumer base?

Hispanic marketing initiatives

A. Hispanic population 32.5% of California
B. Highest annual expenditure on Milk per houshold

i.e., $165 C. Different meaning different perceptions

Question 4
A. There are several areas of growth that lay ahead of

CMPB health, cheese, Hispanic, and new channel of distribution. Given the trends, what should they do and how should they do it?

Brand Value Chain

Marketing Program Investment
Integrated Campaign Got Milk $23m Investment
- Clearly Communicated (Clarity) - Relevance - Deprivation Strategy (Distinctive) - Consistency
-Market Dynamics Investor -Growth Panel Sentiment -Risk Profile -Brand Contributions

Customer Mindset
Aided Recall 60% SFUs Assoc

Market Performance
Growth 1.07%

Shareholder Value
$1 Bn

MoM Growth 6%
in weekly household consumption

(Brand Goodwill)

Brand
Breadth

Program Quality

Marketplace Conditions

-Competitive reactions -Channel Support -Customer size & Profile

Question 5
A. How long can the CMPB keep running the got

milk campaign? B. What can they do to keep the message and strategy fresh in consumers minds? C. Are there other examples of other successful campaigns that ran this long?

Next Steps
Invest in R&D
Extend expiration date Expand number of Flavors

Channel Expansion Target Latino Market

Heavy Users with +ve attitude Largest growing section

Licensing
National Dairy Program Other Countries

Co-Branding Brand Extension

Thanks