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Astrid JamesAbdulwali Alaji
Ryan Rego
Sayyed Latif
Pralahad Naik
Group 5 :Brand Management
Case: got milk?BRANDING A COMMODITY
Group 5
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INTRODUCTION
got milk?One of the most powerful ad campaigns of the
1990s was borne out of necessity.
There had been a steady decline in milk consumption, andthe decline rate started to accelerate.
To revitalize the product sales, MANNINGand the ad
agency GOODBY, SILVERSTEIN & PARTNERS together
developed the got milk?campaign.
The campaign revolved around the m ilk d epr ivat ion
STRATEGYthat reminded consumers of the need and
importance of milk in their routine lives.
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THE DAIRY INDUSTRY
FARMERSwho produce milk
PROCESSORSwho convert raw milk into whole &
lower fat milk
RETAILERS
who sell milk OTHER DISTRIBUTION CHANNELS who sell milk
CMPB California Milk Processor Board
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MARKETING BRANDS V/SCOMMODITIES
The strategies behind marketing a commodityand a branded
productare very different !
SUPPLY SIDE DIFFERENCES Too many decision makers
Small Budgets
Slow Budget Process
Push v/s Pull
DEMAND SIDE DIFERNECES
Changing a Category v/s market share
Influenced by other Industries
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THE BEVERAGE
CATEGORY
Beverages
Water Flavoured
Non-Alcoholic
MilkHot
BeveragesJuices Soft Drinks
Alcoholic
Wine BeerDistilledSpirits
The Beverage Industry
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PREVIOUS
MILK PROMOTION CAMPAIGNS
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AD CAMPAIGNS
Adults: Milk is good for you & it should be a regular part ofyour Diet
Teens: Milk makes you Beautiful & Strong
Kids: Milk is Cool & Fun
Milk Does A Body Good
Good Fast Food
GOT MILK? Milk Mustache
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THE UDIA CONSUMER STUDY
The United Dairy Industry Association commissioned a
marketing research study, that attempted to gauge consumer
preferences by conducting personal interviews with
consumers of all age groups
The UDIA study revealed certain factors that could be thecause for decline in milk consumption:
Proliferation of other beverages
Lack of portability
Lack of flavor variety Not thirst quenching
Lack of consumer mind share
Shared nature of consumption
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Cmpbs branding strategybranding a commodity
Developing a Strategy:
Invest in R&D to expand available flavors
Expand potential usage occasions
Initiate Joint Promotions with consumer packaged goods
Develop an Advertising Campaign to clarify health benefitsof milk
Use advertising to Generate a new image for milk
Target Hispanics and Aging Californians
3 Campaign Objectives needed satisfaction:
CHANGE CONSUMER BEHAVIOR
INCREASE MIND SHARE
HALT SALES DECLINE
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Cmpbs branding strategy Target Market:
Regular Usersof milk were targetedformed 70% of Californianmarketand they already had favorable attitude towards drinking milk
got milk?Creative Development:
Deprivation Strategyto increase mind share for milk
Television Ads:
TV ads built up the tension that was critical to the deprivation strategy
It used food compliments to promote the NEED felt for milk!
The campaign managed to make changes to the new milkadvertisements in 2 important areas:
Informing how milk benefits diet
Showing complimentary food but NOT milk in the ads
Print ads using the tagline got milk?have featured countless
celebrities with the trademark milk mustache
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Cmpbs
branding strategy
Additional Communications Programs: The Creative StrategyIncreasing milk
purchase by using complimentary foodsas a promoting tool
The CMPB ran joint promotions withmajor brands like Oreos and Wheaties.
Billboards were used extensively to
reinforce the TV campaign
All campaigns leveraged the food-milkrelationship & capitalized on theadvertising budgets of several major
brands of cereals and cookies.
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Cmpbs branding strategy
Media Strategy: Decision to communicate message at 3 ideal times:
1. At Home
2. On the way to the store
3. In the store
The CMPB launched a heavy outdoor campaign to targetconsumers on the way to the store and inside the store
got milk?signs and billboards were put up in the localityas a reminder to purchase milk
Milk was soon placed among the top 10 advertisingspenders in all of California
For the first time in advertising history, milk commodity wasin a position to compete with other beverages
BUT Would the
deprivation strategy
work?
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Cmpbs branding
strategyFirst Phase strategy: To Remind milkdrinkers of the anxiety anddisappointment that came when milkwasn't available at crucial moments.
Next Phase: Converting the milk-deprived emotional state into a phrasethat everyone might instantlyunderstand. . . Got Milk???
Goodbys campaign's well-knowngrammatically-challenged tagline gotmilk?& milk deprivation strategy werewidely used for televisionadvertisements all over California.
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ADVERTISING STRATEGY
The Got Milk Campaign: What could you say about milk? It waswhite and came in gallons. People felt they knew all there was toknow about it, so it was hard to find a strategic platform. - JeffManning
Changing the perception of milk: Thus changing buying andconsumption habits
Push vs. Pull Promotion Strategy: Appealing to the masses
http://www.youtube.com/watch?v=hnIjgw5A-iI
http://www.youtube.com/watch?v=KKQf2AP-V3I
http://www.youtube.com/watch?v=pu2Q714TuZ8&feature=related
http://www.youtube.com/watch?v=hnIjgw5A-iIhttp://www.youtube.com/watch?v=KKQf2AP-V3Ihttp://www.youtube.com/watch?v=pu2Q714TuZ8&feature=relatedhttp://www.youtube.com/watch?v=pu2Q714TuZ8&feature=relatedhttp://www.youtube.com/watch?v=KKQf2AP-V3Ihttp://www.youtube.com/watch?v=KKQf2AP-V3Ihttp://www.youtube.com/watch?v=KKQf2AP-V3Ihttp://www.youtube.com/watch?v=hnIjgw5A-iIhttp://www.youtube.com/watch?v=hnIjgw5A-iIhttp://www.youtube.com/watch?v=hnIjgw5A-iI -
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ADVERTISING STRATEGY
The budget for the turn around in perception$23 million/year marketing budget. On a percapita basis (California's population wasRoughly 20% of the US),
Consumers between 18 and 24 drank 44gallons of soft drinks, but they drank only17.2 gallons of milk.
Shift in Perception:
Milk is boring Milk is
cool
TOFROM
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PROMOTION
CAMPAIGN
Timing & Resources, the dairy ran the MilkMustache Mobile Tour promotion beginning in latesummer 2006 and repeated it in spring 2007.
Coordination with MilkPEP, the dairy and theamusement park needed to take place severalmonths in advance of the tour to establish tourdates, plan marketing materials, etc.
This may have taken a day or twos worth of timein the months leading up to the promotion.
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PROMOTION
CAMPAIGN
Grassroots/ Local Marketing Using the Milk MustacheMobile Tour to Increase Milk Consumption at a Theme ParkThe Milk Mustache Mobile Tour and coordinating MilkPEPmarketing materials (static clings, signage, giveaways) wereprovided at no cost to the dairy.
The dairy incurred costs to create artwork and placeadvertising on billboards and market umbrellas.
Free publicity from the Milk Mustache
TV contest wasinvaluable. This dairy received an above average payoff froman average level of resources to increase milk sales in anunconventional milk outlet.
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got milk?success
Immediate Results seen in California:
The campaign zoomed to a 60% aided recall level in aspan of 3 months.
Enjoyed 70% awareness within 6 months.
Surpassed the campaign It does the Body Goodin top-of-mind awareness in less than 1 year.
The got milk?campaign quickly became a consumerfavourite.
The Ad Campaign exceeded initial sales expectations. As seen in Exhibit 2, milk consumption increased for the
first time in years.
Califirnias household consumption increased every monthin the 1styear of got milk?campaign, except for the first
two months.
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got milk?success got milk?Goes National & International:
In 1995, the got milk?advertisements won an Effie Awardand top honors from several other major advertising awardcommittees.
In September 1995,
got milk?
was licensed to theNational dairy farmers group, the Dairy Management Inc.
(DMI)
Thus got milk?was receiving national advertisingexposure along with the existing MilkPEPs milk
mustachecampaign.
After seeing the sales in California, the UKs MilkDevelopment Council (MDC) approached the CMPB tolicense got milk?.
In 2004, got milk?went international and Ads began
running throughout England, Wales and Scotland.
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got milk?success
Products and Partnerships:
The got milk?campaign started to fuel a cult of buyinggot milk?licensed productslike:
Mugs, baby bottles, t-shirts, campaign themed barbie
dolls.
Partnershipswith companies like Nestle, General Mills,Quaker, Keebler and even the Girls Scouts of America, ledto numerous creative advertisements and promotions.
Billboards with Girl Scouts, Partnership with Dole and aventure with Mattel promoted the campaign.
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got milk?
reconsidered
Revising the deprivation Strategy:
To make the got milk?advertisements less familiar orpredictable, they sought alternatives to the currentdeprivation strategy.
Showing depressed people in a Town Deprived of Milk.
Did not affect consumers immediate consumption.
Worked on peoples heads, rather than on theirmouths and stomachs.
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got milk?
reconsidered Milk Branches Out:
New Product Launch- Portable Flavoured Milk.
Midwest-based Deam Foods, invested $40 million toproduce Chugs- portable flavoured milk packaged in
plastic containers like old-fashioned glass bottles. The company spent an additional $12 million on an
integrated national marketing campaign to supportadvertising for the new product.
By 1999, Chugs generated more than $100 million in
sales to the company and contributed to 40% of the totalgrowthin milk sales that year, even though it comprisedonly 6% of the total milk sales.
General Mills and Dean Foods invested in products likesoy and organic milk.
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got milk?
reconsidered Growth Slows:
The got milk?& milk mustachehelped fuel a 1% growthin national milk sales during 1997, but were not successfulin the following year.
As seen in Exhibit 1, Milk sales dropped by 0.4% in 1998and continued for the decade, then remained flat or down inthe following years.
Milk prices were increased to account for the draggingsales.
?
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NEW DIRECTIONSBack To Health:
Target elders:Awareness of Preventing Osteoporosis, and othersuch health problems as the benefits of the beverage milk.
Target teens: Featuring Gravity Tours, to promote coolnessofaction sports and the role of milk in enhancing athletes bone density.
CMPB took milks health message to the next level by developingthe theme Strength comes from withinimportance of healthybones.
gotmilk.coms website highlighted various researches on the
benefits of milk like: Increases bone mass in teens and adults, prevents PMS and
osteoporosis and improves sleep.
Positioning of milk as a super foodfor strength & stamina
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NEW DIRECTIONS
Expanding Distribution:
The Obesity Crisis leaded to another area of growth for milkand a scope to send out health messages, and expanddistribution into vending machines, schools and fast-food
restaurants. Improved Portable packaging and introduction of a variety of
milk flavors, led to expansion of vending machines. Thisincreased sale of milk by 45% in 2003.
The Child Nutrition Act, Mc Donalds and Wendys also played
a huge part in promoting milk sales.
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DISCUSSION QUESTIONS
1) Association that consumers have for milk: The USP for milkwas promoting its health benefits. Consumers were drawn to thehealthy drink and the promotion of the idea of having milk along withcomplementary foods.
Implications of these associations in building brand equity:
These associations enabled the commodity brand awareness, brandimage and increased the mind share of its consumers. The brandmilk also increased its salience with the introduction of complimentaryfoods used as promoting tools. Milk was easily targeted to allgenerations, old, middle-age and the young, thus focusing on the
Brand Feeling. All this helped to build the brand equity.
Implications of these associations in consumption of milk:
Consumption of milk overall increased by 1% in national milk sales
during 1997
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DISCUSSION QUESTIONS
2) CMPB Marketing Program in early 90s:
A lot of struggle was required to change the behaviour ofconsumers towards milk and to ensure a rise in the sale of milk.
Their Focus was to enforce a complete shift in the way peoplethought about milk.
CMPB Marketing Program now:
Today, the effort that CMPB is required to put in much less ascompared to earlier times.
Now its focus will be directed more on REMINDING its consumersof the experiences they feel when they think of milk.
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DISCUSSION QUESTIONS
3) Hispanic Marketing Initiatives:
The Ad Campaigns like La Liorona and Licuados, which weresolely directed to the Hispanic demographic in Californiagained favor to milk sales from the Hispanic-Californians.
No CMPB does not risk alienating its current consumer baseas they had already succeeded in creating a strong brand
image and mind share with its current consumer base.
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DISCUSSION QUESTIONS
4) CMPB has several areas of growth:
They need to focus on their future by concentrating on thesenew directions, like the Hispanic demographic and theircheese consumption for instance.
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DISCUSSION QUESTIONS
5) CMPB can continue to run the got milk?campaign,
so long as they keep up their milk sales and consumption.
The marketing investments of the got milk?campaign will prove
beneficial in the long run.After a while Resonating the got milk?advertisement will provesufficient to remind people of the commodity brand milk.
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BIBLIOGRAPHY
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DISCUSS QUERIES