Pitching UHT Milk to America

MilkSmart Are you

MilkSmart?

Michael

Beebe

Carson

Locke

Brandy

Thiesson

Laura Coop

er

Nancy

Ma

IQ Consulting

Research of Advantages

Challenge:Americans extremely

apprehensive of the idea of consuming a dairy

product that hasn’t been refrigerated

Business Benefits• Reduced transportation

and storage costs• Purchase in bulk without

fear of spoilage

Consumer Benefits• More refrigerator space• Purchase in bulk without

fear of spoilage• Contributes to a

reduction in GHG emissions

Target Market

Businesses Consumers

Grocery Stores (Particularly organic-heavy Grocers)

Food service businesses for use in preparation

Coffee shops (Creamers, etc.)

Women (Primary Grocery Shoppers)

Particularly “green” conscious women

West coast market (Initially)

Market Positioning

The US milk industry is extensive, yet recent years have exposed a divide among consumers of whole, low-fat, and other milk-alternative products.

SurveyResults based on preference favored 1% Milk

Served as initial assessment of several major target demographics: west coast residents, the educated, and the environmentally friendly.

Based on new market niches, and the responses collected from our survey, we were encouraged that UHT had a viable opportunity to claim a piece of the pie.

Product Realities

Product Competitive Advantages

Increased portability and shelf life

Manufacturers and Retailers--benefit from significant decreases in transportation, distribution, and storage costs•Retailers and Wholesalers are able to maximize inventory efficiency

Consumers benefit from less refrigeration dependency, greater efficiency in bulk-buying, and

new-found portability (particularly families and those with active lifestyles)

Product Limitations

US consumers, historically, are unwilling to consume milk that is not delivered under

refrigeration (the “not fresh” stigma)

Initial market cost per ounce results in a premium paid for a low-involvement product

(FCB Grid Quadrant 3), and defects consumers to other more-affordable market goods

UHT product name is uninformative and unidentifiable

to consumers

Efforts to Compensate

Product type: a less involved, yet rational decision justifies cognitive

consumer appeals

Change product name to “MilkSmart” in an effort to hail consumers to the product and contribute to future brand awareness.

Educating consumers on the unique pasteurization process and far-reaching benefits

will yield a more open and aware consumer base.

Brand Message

Consumers are not just buying the product for its use or service alone, but rather are buying into the product’s integrity, and overall purpose.

• Functional: health benefits of milk, • Experiential: frustration of wasted milk or lost inventory• Symbolic: the desire for self-enhancement or group membership; in this case, status or practice within the environmental movement

In this way, UHT provides solutions to functional, symbolic, and experiential needs of consumers.

UHT leverages associations with values such as: intelligence, efficiency, and environmental friendliness (MECCA’s Model)

The recent surge in organic or “environmentally efficient” products is also reflected in the societal trend toward social responsibility, even among large corporations.

The “Milk Smart” campaign theme not only acknowledges this shift in interests, but capitalizes on the trend toward a more intelligent and aware populace.

Product Placement

• Viewers already like the shows and hosts

• Hosts are seen as experts in cooking and baking fields

Spots on Rachel Ray, Martha

Stewart, Food Network

In-store PromotionsIn-Store Promotions

Provide sampling and coupons to the customers to attract to purchase

Spread through word of mouth within the community

Use of social proof from others who have positive experiences with UHT

www.BeMilkSmart.comwww.BeMilkSmart.com

Give the consumer

base informatio

n about UHT milk and our

“MilkSmart”

campaign

Provide coupons

for visiting the

website that are

not available

elsewhere

Build a lasting

relationship with the

consumers by providing a resource they can

revisit

Business-to-BusinessBusiness-to-Business

Advertise in wholesale

catalogs and magazines

Introduce new

benefits of having UHT

on the shelves

Environmentally friendly

transportation and storage

Frequency of ExposureProduct

Placement

Online (Watchers of shows visit

website)

Magazines (Watchers of shows also

subscribers)

Frequency of Exposure

Both magazines & online reach audiences who are interested but may have missed the show

MagazinesMagazines

All three target a female audience with a different

lifestyle

Food Network Magazine- By 2010,

circulation reach of 1.1 million

Everyday with Rachel Ray

• Circulation of 1.5 million in October 2009

• In 2008, #24 in MPA’s Top 100 by circulation

Martha Stewart’s Everyday

Living- In 2008, #39 in MPA’s Top 100 by circulation

All three target a female audience with

a different lifestyle

Online Sites

Non-intrusive

Relevant to search

Interactive

Lead customers to

BeMilkSmart.com

All online advertisements

will appear twice during the month

MilkSmart is used on the

show

Internet Ads

Push & Pull

Push• Detailers will encourage

retailers• Increase frequency, ads placed

in wholesaler magazines: UNFI, Foods of America, Kroger Co.

• Trade promotions will provide incentives to carry MilkSmart

Pull• Consumer marketing

through product placement, magazines, online sites

Push & Pull

Implementation ScheduleImplementation Schedule

June – July

• Meeting with producers of shows to get dates setup as well as magazine ad and site ad

• Meeting with wholesaler magazines to place ads• Detailers will start meeting with distributors

August – October

• Launch of BeMilkSmart.com• Start online advertisements• Detailers will work on coupon deals and in-store sampling with retailers

November: 1st show – Food Network

• Thanksgiving Special• Studio audience member tasting & provided coupon for Trader Joe’s• 2 online ads• 1 magazine ad• Trader Joe’s in-store sampling

December: 2nd show – Martha Stewart

• Christmas Special• Coupon & in-store sampling for Kroger company

January: 3rd show – Rachel Ray

• Leftovers Special• Coupon & in-store sampling for Whole Foods

Benchmark: At least 3 exposures, coupon usage of 20%, and retailers agreement to carry MilkSmart

February – April

• Assessing how we are doing• Frequency: 3x or more• Links from show’s site used• Coupon usage

• Successful?• Move on to target new market• Starbuck’s co-branding

Thank You!

Any Questions?