The California Milk Processor Board:
Branding a Commodity

• 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.

• 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

• 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

• 1,805 new beverages in 1991 alone
• Media spending $2 billion (beer and soft drinks)
• 1975-1993 consumption of beverages increased 18% - but NOT MILK
(dropped by 10%)

• 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

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]

• 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

• 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

• 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

• 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

• 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

• 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?