PROBLEM FACE BY CMPB AND MARKETING CAMPAIGNS FOR INCREASING MILK CONSUMPTION IN CALIFORNIA

ABSTRACT
After continuous declining of milk consumption in California, milk processors made California milk processors board. In this board they generated fund for milk marketing advertising and promotion. Some marketing campaigns also started in which got milk got famous. But all these campaigns proved old as time passed and new milk consumption increasing campaign needed like chocolate, banana and strawberry flavored milk. 1:Please evaluate the CMPB marketing program: what do you see as its strengths and weakness? Suppose you are its marketing manager, what changes would you make?

CMPB MARKETING PROGRAM:

It came into existence in 1993, when processors of fluid milk joined together for increasing consumption of milk. They funded a pool of fund for advertising expenses and public relations. The idea for its formation was only to increase sale and consumption of milk. They for this purpose made contributions of three cents per gallon of milk in the fund. In the first year of its formation they raised about $23 million for marketing promotion of fluid milk. It is administer by California department of food and agriculture. It is a cabinet level agency in government of California. It is established in 1919 by California state legislature. It is responsible for food safety and invasive species and for promoting California agriculture industry.

EXECUTIVE DIRECTOR OF CMBP:

In February 1993 Jeff Manning became its executive director. He was reviewing reports on US consumption of milk for last fifteen years, previously was senior vice president with ketchum advertising. He had also worked in commodity marketing of bananas, eggs, potatoes and beef and has gathered a wealth of experience.

CMPB STRENGHTS:
GOT MILK CAMPAIGN:
By seeing a steady decline in milk consumption over two decades, manning started a got milk campaign in November 1993 with Goodby and Silverstein & Partners ad agency. It is based in San Fransico. Its client includes Got Milk, Nintendo, National basketball association and Chevrolet. Agency was established in 1983. The tagline was first introduced in television commercial Aaron Burr directed by Michael Bay. The commercial was then entered in CLIO awards advertising hall of fame. The slogan was licensed by national milk processor board in 1995. It included celebrities from field of entertainment, sports and characters from tv commercials like Simpsons, batman Mario and powerpuff girls sporting milk moustache. Campaign was based on deprivation strategy of milk that how it feels inconvenient to be without milk with certain foods like cereal, brownies and chocolate chip cookies. Consumers responded well to this campaign and started to consume more milk and got milk became a catch phrase all over the America.

ETHNIC COMPOSTION OF CALIFORNIA:

California is composed of different ethnic groups like white population had minor contribution in population, while Latinos were in majority. So CMPB focused on Latinos as were the fastest growing ethnic groups in the state. Latinos also consumed more milk than any other ethnic group individual that was one third more milk than the average individual. And they also bought larger sizes of milk packs.

CMPB STRATEGIC PLANNING:

Invest in R&D to expand number of flavors available. Expand potential usage occasions. Cooperate with consumer packaged goods companies for joint promotions.

Develop an advertising campaign to clear up confusion about health benefits of milk. Generate a new image for milk through advertising. Target Latinos and aging Californians.

Jeff Manning and CMPB advertising agency members decided that previous strategies gave positive shift in milk consumption. They had to change consumer behavior continuously so that they focused on milk nutrients like calcium and other vitamins.

CAMPAIGN OBJECTIVES:
To change consumer behavior so that consumption could be increased. Make consumer think about milk also outside home rather than at home. Creative advertising for increase in milk sales by consumption of more milk.

One memorable ad showed that an obnoxious business person run over the truck after informing the person on the other side of phone that they are fired. In next scene he opened his eyes in the heaven where he saw a refrigerator with rows full of milk, but all that was empty. The theme of advertising was that milk like other beverages always be in refrigerator.

CMPB WEAKNESSES:
LACK OF BUDGET:
CMPBs marketers were lacking budget for promotion and marketing of milk. In contrast, other beverages marketers were spending more and more on marketing campaigns.

DEPRIVATION STRATEGY:
This strategy did not worked no longer and all advertising campaigns were based on it. Each ad in the campaign highlighted milk perfect compliments and at the end delicious food without milk.

HEALTH BENEFITS IGNORED:

Each ad focused on milk deprivation and not health benefits as 25-49 years old female market segment was concerned with health benefits.

IF I SEE MYSELF AS MARKETING MANAGER IN CMPB:

I will make advertising strategy in which doctors will be shown focusing on the benefits of milk for all ages of people. For infants MORINAGA (HAGIKUM) milk powder. For teenagers skimmed milk and senior people with low fat milk. Chocolate flavor milk as it is more appealing in children ages of 5-10 years and for this MILO chocolate flavor milk by NESTLE should be benchmarked. Use of milk in coffee for stronger taste.

2:What are the marketing problem/challenges faced by the CMPB now that milk consumption has reached a plateau?

PROBLEMS FOR CMPB:

MILK CONSUMPTION: Milk consumption outside the home is less than the inside of home. People shows less motivated behavior to drink milk outside their homes. LIMITED MILK FALVORS: Milk comes in limited flavors as other beverages comes in different tase. NOT THIRST QUENCHING: Milk is not a thirst quenching beverage therefore it lacks of refreshment. NATURE OF CONSUMPTION: Milk is usually forgotten on special occasions as it could not be use with fast food like burgers etc. Milk became a part of families through rituals and nostalgia. BUDGET FOR PROMOTION:

Budget of milk promotion and advertising agency is less as compared to other beverage companies as they hold more than 50% of their budget for promotion and marketing. CONFLICT BETWEEN PRODUCERS AND PROCESSORS: Producers and processors of milk have conflict among them. Producers like to produce milk for as little as possible and to sell it for as much as possible, while processors like to buy low and sell high. LIMITED CHANNELS OF DISTRIBUTION: Milk distribution channels are limited; there is no direct sale force to build relation with retailer. CONSUMERS TATSE: People enjoy beverages rather than milk juices. INELASTICTY OF DEMAND AND SUPPLY: There is imbalance of demand and supply due to pooling of milk as quota by state legislation. NUTRITIONAL VALUE OF MILK IGNORED: Even though campaigns has stressed for benefits of milk, consumers are remain confuse about nutritional value of whole, low fat and skim milk. FAT CONTENTS: Confusion regards effect of fat contents on consumer health, as inability of some people to absorb calcium. DR. SPOCK REPORT: Dr. Spock report which advises mothers not to feed their children under age of any milk at all as it causes childhood diabetes. WORKING FEMALES: As female gender increased in working place so that women consumes less milk at home which is not a good sign for milk consumption. NOT PERFECT COMPLEMENT:

Milk is not food complement as other beverages due to which consumers use beverages with food in general and milk in particular. POPULATION GROWTH RATE: Population growth rate in California decreased due to which milk consumption has also decrease. AWARENESS BUT NOT CONSUMPTION: Marketing campaigns have like got milk and milk moustache has increased awareness but not consumption. REACTIVE NOT PROACTIVE: Like other products market milk industry is reactive not proactive.

3:Pick one particular marketing problem/challenge among those you addressed above (that you answered in question 2) and solve the particular problem with your power of marketing communication. Please explain your recommended marketing communication activities to solve that particular problem/challenge.

FEULING LIMITED MILK FLAVORS:

Milk flavors should be increase and for this benchmarking practices should brought from Asian countries as they have developed variety of milk flavors like milk in banana, strawberry and chocolate flavors. In benchmarking firm selects best firm from related industry and compare results and processes with later firm. Benchmarking techniques includes; Identify problem areas.

Identify other industries that have similar processes. Identify organizations that are leader in that industry. Survey the organizations for measures and practices. Identify leading edge practices. Implement new and improved business practices.

BENCHMARKIN TYPES:
FINANCIAL BENCHMARKING: It involves performing a financial analysis and comparing the results in an effort to assess your overall competitiveness and productivity. COMPETITIVE BENCHMARKING: It involves observing how others compete. This type is usually not industry specific, meaning it is best to look at other industries. PROCESSES BENCHMARKING: If focuses on investigation of business processes with a goal of Identifying and observing the best practices from one or more benchmark firms. This activity will be required cost and efficiency.

COSTS IN BENCHMARKING:
VISIT COSTS: This includes hotel rooms, travel costs, meals, a token gift, and lost labor time. TIME COSTS: Members of the benchmarking team will be investing time in researching problems, finding exceptional companies to study, visits, and implementation. This will take them away from their regular tasks for part of each day so additional staff might be required. BENCHMARKING DATABASE COST:

Organizations that institutionalize benchmarking into their daily procedures find it is useful to create and maintain a database of best practices and the companies associated with each best practice now. The cost of benchmarking can substantially be reduced through utilizing the many internet resources that have sprung up over the last few years. These aim to capture benchmarks and best practices from organizations, business sectors and countries to make the benchmarking process much quicker and cheaper

MARKETING COMMUNICATION ACTIVITIES:

PUSH STRATEGY:
In this strategy product is communicated through television commercials like making of ad and billboard signs. This strategy is applied on following circumstances; Production and distribution decisions based on long term forecasts. Past orders received from retailers. To meet changing demand patterns. Large and variable production batches. Less advertising expenditure than pull strategy.

In an ad focusing on people after playing games like hockey, football, cricket, basket ball, base ball take milk for their revival of energy. By this milk will come in competition with Gatorade and other energy drinks. Creative label which state milk nutrition will import idea in youngsters that fresh and natural diet is more important than artificial flavors. People after playing basketball, football, cricket, baseball take chocolate flavor milk for their lost nutrition.

BONUS QUESTION:

PROBLEM DEFINITION:
How to develop national dairy supply chain management?

ANALYSIS SECTION:
As of this writing, the debate over supply management plans is still very active, but it may be gaining some ground among producers, at least in broad strokes. Although hardly scientific, an August 2010 dairyline.com Web-based poll of 234 respondents showed that 61% supported the idea of supply management in general, with 20% of the total having changed their opinion to one of support.62 This number compares to the same website s July 2009 poll of 573 responses where only 50% favored supply management generally. Western United Dairymen conducted a supply management survey of 200 of their members and found majority support lacking for any proposed plans.63 However, even among this small and relatively-selective respondent pool, the survey analysis found that a low level of understanding of the different bills stands out. Many other organizations and individuals hold strong positions on various plans but are reluctant to come forward publicly on either side of the issue. And even among those who believe that any one of such programs could work in theory, the perceived political resistance to such plans in general and poor understanding of the particular ones under discussion makes their passage highly uncertain.

RECOMMENDATIONS:
Proposed supply management programs are a vital among dairy industry stakeholders and policymakers. Despite ideological objections to expansion of arbitrary mechanisms into milk pricing, numerous such precedents already exist in this highly-regulated industry. By comprehensively addressing severe supply-demand imbalances, an effective supply management regime could reduce or eliminate the need for public funds to go to export subsidies and direct assistance to dairies. Other potential benefits include an improved ability to strategically plan and innovate across the value chain, distribution of market power to producers, and avoidance of governmental direct-support costs to dairies. Democratic support are needed to pass such legislations.