Q1: What associations do consumers have for milk? What are the implications of these associations in terms of building brand equity for and increasing the consumption of milk?
Associations consumers have for Milk: 1. Health One of the most primary and important association consumers have with Milk is of health. Traditionally, Traditionally, this has also been promoted throuh advertisin and marketin campains to increase and retain the consumer base. !. "eatu eaturres Milk is not very vers versatile atile in terms of features and have a simple plain taste. There#s a lack of variety and $avors and is also not considered very ood ood for %uenchin thirst. &ut it is considered as a reat source of enery and nutrition. '. (maery Milk is seen mostly as a complementary beverae with other food items like Oreos, cereals or )elly sandwiches. *sually it is seen a baby food for kids. +. orta ortabi bili lity ty Althouh it is confused on a daily basis but still portability factor is missin in milk. Mostly, it is purchased in allons and enerally not available in small packs. -. omp ompet etit itiv iven enes ess s Milk is very weak in competitiveness as it is a commodity product and its competition like soft drinks have very stron brandin.
(mplications of associations: /ookin at the associations built with Milk, some of the associations have been very evidently used to brand it. "or e0ample, traditionally Health association of the Milk has been used widely to promote consumption of Milk for all roups of aes. Apart from that some of them are very weak like direct competitiveness with soft drinks, since they provide a totally dierent set of features but nonetheless they can#t be inored because they take a bier portion of their market share. Apart from that (maery part of the association can be utili2ed as a complement as such done in the 3ot Milk4 campain. Apart from that ortability ortability is one factor where there is opportunity to rab, if it is made more portable like the soft drinks and other beveraes in fast pace life of today then it can increase in the consumption of milk.
Q2: Evaluate the C!" marketing program no# and back in the early $%s& What do you see as its strengths and #eaknesses? What changes #ould you make?
5ierence between Old and 6ew marketin campain: 1. Ob)ective: The foremost dierence between the old and new marketin campains was the primary ob)ective. The old marketin campain was more focused on conveyin the health bene7ts of milk to the consumers. 8hereas the ob)ective of the new campain was to stop the declinin number of milk consumers and increase the consumption rate of milk. !. Approach: The new marketin campain was very creative and was more like a marketin campain for a &rand rather than a commodity. 9ince, milk as a commodity was facin touh competition from brand of soft drinks and other beveraes, it was necessary to be more creative. Also, the budet spendin of the brand usually is more than the averae commodity marketin spendin. &ut for this new campain the marketin budet was also increased once it was successful. '. Testin: The new campain was 7rst of its kind for a commodity therefore it was 7rst tested in alifornia to see whether the new approach will work in increase of the milk consumption. +. hannels: The marketin channels used in the old marketin campain were dierent than the new marketin campain. (n the old marketin, traditional channels were used such as T ads but in the new marketin campain new channels were used such as runnin )oint promotions with the ma)or brands of Oreos or cereal bo0es to et more attention and convey the messae. -. Taret Audience: The taret audience in the old marketin campain were slihtly dierent in a manner that they were more focused to convey the health bene7ts to the consumers. 8hile, in the new marketin campain the taret audience were also those who weren#t consumin milk anymore or were consumin it less, thus in a way they were new consumers of milk. ;. &uildin &rand <%uity: The old marketin campain was done in a traditional way, thus only focusin on milk as a commodity. 8hereas in the new marketin campain, most of the brandin elements were involved creatin a more focus approach to create =3ot Milk4> brand e%uity. ?. ush@ull mechanism: (n the new marketin campain reverse psycholoy was used to create a sense of depravation for the milk in the ads. This created in a way a pull mechanism for consumers that they were to be pulled more towards
consumption of milk. 8hile in the old marketin campain, a push of health bene7ts was done towards to consumers.
9trenths
8eaknesses
(t was a very creative approach.
5eprivation concept was not very eective on the Hispanics 9ome of the ads were depressin.
Approach was like a &rand which was suitable to compete with brands. artnerships with other &rands like Oreos. hane of Mindset was tareted as outcome which is more eective. *sed the riht timins for the communication for the tareted consumers breakfast, lunch and late at nihtB *sed collaborative marketin with other brands.
Over the time the ads became very predictive <0pensive marketin. 9pecially for independent farmers. 6ational decline of sales in the start despite increase for several years in alifornia. 9hort Term eects. 8eakness of showin Health &ene7ts in the start, specially for 8omen Ce%uired a constant advertisement campain to eectiveness.
hanes re%uired: 1. Taret Audience: 8e see from the history of the 3ot Milk that it worked very eectively in some parts aliforniaB while in some places it failed miserable HispanicsB. (t is %uite clear that same stratey won#t work for all taret audience and the same depravation techni%ues can back7re sometime 5rysvilleB. Therefore, separate strateies should be used for dierent roup of people. !. ontinuous promotions: 3ot Milk increased the consumption of milk for some time when the promotion was runnin but the consumption would aain radually o down when the campains stopped. Therefore, continuous promotional activities are re%uired to keep a steady rowth to compete the brand whose promotional activities keep on oin around the year. '. (nnovation in packaes: One very important factor that wasn#t address was the packain of milk which makes it less portable and therefore consumers reach out more for the competitive products like soft drinks.
+. Other aspects of Mindset: (nstead of )ust creatin )ust depravation eects, the campain should also focus on other thins so that it#s eect doesn#t become very predictive and have a lon lastin eect.
Q': Evaluate their (ispanic marketing initiatives& )oes the C!" risk alienating its current consumer base?
(nitially, the campain miht have some risk in alienatin and rather losin the Hispanic consumer base because of the followin mistakes: 1. 5epravation of the Milk wasn#t considered somethin funny. !. The literal translation of 3ot Milk meant somethin else in 9panish. '. They didn#t keep in view the cultural dierences. Althouh, it was very important to correctly taret this sement because: 1. This was one of the hihest Milk consumin sement. !. opulation of Hispanic was very hih in alifornia almost ''DB and increasin. '. Their spendin spare on milk was much hiher. /ater onwards, the risk of alienatin this consumer sement was reduced by takin corrective measures such as: 1. &y showin the culture aspects and sacred elements like love, family and milk. !. 3ot Milk words were left untranslated. '. *sin a 9panish T spotE /a /lorona is a mythical Hispanic character. After this they felt like their culture was well understood and the eect of campain was more positive.
Q*: +here are several areas of gro#th that lay ahead of the C!", health- cheese- (ispanic- and ne# channels of distribution& .iven the trends- #hat should they do and ho# should they do it?
1. 9trateic 5ierentiation: 8e see from the history of the 3ot Milk that it worked very eectively in some parts aliforniaB while in some places it failed miserable HispanicsB. (t is %uite clear that same stratey won#t work for all taret audience and the same depravation techni%ues can back7re sometime 5rysvilleB. Therefore, separate strateies should be used for dierent roup of people. !. Health Aspects: They should show the health bene7ts of milk and its consumption. '. Hispanic:
The campain can focus more on the Hispanic community because they are one of the biest consumers of milk. +. ontinuous promotions: 3ot Milk increased the consumption of milk for some time when the promotion was runnin but the consumption would aain radually o down when the campains stopped. Therefore, continuous promotional activities are re%uired to keep a steady rowth to compete the brand whose promotional activities keep on oin around the year. -. (nnovation in packaes: One very important factor that wasn#t address was the packain of milk which makes it less portable and therefore consumers reach out more for the competitive products like soft drinks. ;. More hannels: They can create and promote more channel for the distribution of Milk to reach out consumers for e0ampleF promotin milk in schools, oGces or fast food restaurants. ?. C5: There should be more spendin in the C5 of milk to brin more $avors or innovation to compete the dierent brands of soft drinks. I. reate a lonElastin eect: (nstead of )ust creatin )ust depravation eects, the campain should also focus on other thins so that it#s eect doesn#t become very predictive and have a lon lastin eect.
Q/: (o# long can the C!" keep running the 0got milk? campaign? What can they do to keep the message and strategy fresh in the consumers minds? 3re there other e4amples of other successful campaigns that ran this long?
The M& has been runnin the =3ot Milk> campain since 1JJ' and since then it has seen popularity. Less Efectiveness: &ut apart from popularity, there hasn#t been much eectiveness of this campain. Very Expensive: Althouh it is very famous and has become a widespread sloan, but in reality there has been little improvement with it. The brands are still a very touh competition for Milk. (t is very costly for the M& and althouh they have won a court case and farmers have to pay for this commodity#s marketin, maybe in future they won#t win aain and it#s a very costly campain.
To keep the messae and stratey fresh in the consumer#s minds they have to constantly spend on this campain and keep remindin people of the messae, but as reviews have shown over the years the depravation eect has become a clichK and miht wear o soon and becomes very predictive. Althouh, for commodities such successful campains are rare, the are some successful brandin campains that are: 1. !. '. +. -. ;.
8endy#s: 8here#s the &eef4 6ike: Lust do it. (ntel: (ntel (nside. Mc5onald#s: (#m /ovin# it /#Oreal: &ecause you#re worth it. : Coti, apra, Makan. or &hutto 2inda hay, both very lon runnin campainsB.
