Institute Of Business AdministrationBrand Management
got milk?branding a commodity
Written Case Analysis
Name of group Members:ALIRAZAUMAIR AHMEDMUHAMMAD FASIEHMOHSIN ALI HASANSAJJAD AHMED
The case deals with milk losing its appeal among the school children and the increasing preference to soft drinks in the US during the late 1980’s and early 1990’s. California people were drinking less milk every year. Milk consumption per capita in California had dropped 6 percent between 1987 and 1992. Realizing that the dairy industry is declining and needed outside assistance, the California Department of Food and Agriculture formed the California Milk Processor Board (CMPB) in 1993. A few months later the CMPB released it’s famous ‘‘Got Milk?’’ campaign.
For this purpose they hired Jeff Manning as executive director and raised a reasonable budget for promotion. The ad agency Goodby, Silverstein and Partners (GS&P) created ‘‘Got Milk?’’ with the CMPB’s $23 million annual budget. Previous campaigns had been intended at people who did not consume milk, but the agency’s research led it to target a sundry audience: people who were already milk drinkers. The consumers of California responded the campaign quickly, embracing the ads and also started consuming more milk. In USA outside California, the milk moustache ‘Got Milk?’ campaign is jointly funded by America's milk processors and dairy farmers: The Milk Processor Education Program (MilkPEP) and Dairy Management. The goal of the multi-faceted campaign is to educate consumers on the benefits of milk and to raise milk consumption. The campaign was founded on a milk deprivation strategy and recognized that milk is not often a stand-alone beverage. Its consumption is permanently linked to a select number of meals and food occasions. And also, perhaps, the only time anybody cares passionately about milk is when they run out. The campaign was very successful in the USA.
BRIEF OVERVIEW AND FACTS
* According to the Exibit#1 from 1980 to 1993 annual milk consumption in California dropped from around 29 to 24 gallons of milk per person. * Milk industry spends less than 10 percent what beer spent on media. * The change in school district policy in 1982, which increases the options for children in lunch further reduce the milk consumption. * Two major reasons for declining in milk consumption are: the modern family size was shrinking and the number of working women had increased. * Hispanic population was increasing in USA (California in particular) and they drank significantly more whole milk than the rest of the population. MAJOR ISSUES AND PROBLEMS
* Got milk? Campaign was a huge success in California resulted in quick increase in milk consumption but it was not equally successful nationally or internationally. National sales continue to decline for some time and then stables up to some extent but didn’t increased like in the California. * The milk market was declining market as compared to beverages market. Consumer study revealed that there are some reasons behind the continuous decline like proliferation of other beverages, lack of portability, lack of flavor variety, not thirst quenching, lack of consumer mind share and shared nature of consumption. * High price of milk in California during 1999 as compared to the rest of the country was another major issue as compared to its competitor beverages industry. Positioning milk as cool refreshing and energy boosting drink suffered due to its increasing prices also results in declining in sales. * Mind set of consumer. Although many people drink milk everyday, but still milk suffered a complete lack of consumer mind share. Milk has always been a somewhat forgettable beverage. * Media spending in the beverage categories approached $ 2 billion with half of the total accounted for beer and soft drinks but still Milk being a commodity suffered from lack...
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