california case presentation
TRANSCRIPT
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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
Quiz! Whiz!!Quiz! Whiz!! time*Best of Luck*
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3. got milk? ad in 2000 emphasized inpreventing which disease?
Common ColdBlood Cancer Osteoporosis
AIDS
Quiz! Whiz!!Quiz! Whiz!! time*Best of Luck*
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4. In 2004, California was ......Largest overallcheese producer in the nation.
firstsecondthird
fourth
Quiz! Whiz!!Quiz! Whiz!! time*Best of Luck*
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5. California milk began targeting whichethnic group in its
marketing campaign?
HispanicWhiteAmerican IndianBlack
Quiz! Whiz!!Quiz! Whiz!! time*Best of Luck*
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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 (
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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
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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)
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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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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.