1. The California Milk Processor Board: Branding a Commodity
Got Milk?
The California Milk Processor Board:
Branding a Commodity

2. The Issue at Hand
Steady decline in milk consumption over 20 years – accelerated pace
$23 million ad budget
Based on milk deprivation research
Goodby, Silverstein campaign reversed accelerating decline but has not increased consumption beyond 23 gal per person. Here is what they did.

3. The Players Farmers – fund campaign from profits
Processors – transform raw milk into products that hit grocer’s store
Retailers – one of most profitable products for grocery stores
Distribution channels – grocery, school districts, food service establishments [all contribute to decline in consumption]
CMPB – want to increase sales and consumption of milk

4. The Challenge of Marketing a Commodity
More similar to product category than brand
No brand name
Too much input from suppliers (milk people) – status quo
Hard to change attitudes toward a category
Lower budgets than competition (cola)
Distribution levels are 100%, but no pressing need to purchase
Demand influenced by other products

5. Competitive Situation
1,805 new beverages in 1991 alone
Media spending $2 billion (beer and soft drinks)
consumption of beverages increased 18% - but NOT MILK (dropped by 10%)

6. The ‘Skinny’ on Milk Goal: 1 additional glass per week
Some cannibalization of milk
Family unit link – 89% consumed at home
Nostalgia and ritual important
Regular times (meals) and with other food

7. Factors in Milk Decline UDIA 1992 study [1252 interviews]
Proliferation of other beverages
Lack of portability
Lack of flavor variety
Not thirst quenching
Lack of consumer mind share
Competitive spending level
Shared nature of consumption [cereal, cookies, PB&J]

8. The Marketing Strategy
People had positive attitudes toward milk; but there is not a corresponding change in behavior.
Objectives:
Change consumer behavior – increase 1 glass & change way consumers think about it
Make consumers think about milk (mindshare)
Halt sales decline

9. The Marketing Strategy
Target market
Regular users [70% Californians]
Segmented by behavior – what they liked to eat with milk
When and where it is consumed
Research
Milk deprivation research – focus groups denied milk

10. Creative Development No mention of health benefits (already knew that)
Never show the milk
Television ads using humor
Joint promos with Wheaties, milk coupons, POPs, shelf talkers for complements, check out dividers, billboards, print

11. The Results [California]
3 months – 60% aided recall; 6 months – 70% awareness level
Number of people using “several times/wk” jumped from 72% to 78%
One year later – sales volume increased 1.07% or $13 million for a total turnaround of $31 million

12. Got Milk Goes National Combined budget: $180 million
Co-promos with General Mills, Nestle, Quaker, Keebler, Girl Scouts
Ads with Trix, Rice Krispies, Cookie Monster, Dole – even Hot Wheels

13. The Here and Now… Consumption has reached a plateau. What now?
Evaluate the marketing strategy. What changes would you make?
What associations do consumers have for milk? How does this translate into brand equity?