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Making the Most of MilkPEP Tutorial Session National Dairy Sales and Marketing Meeting July 28-30, 2008 PowerPoint Presentation
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Making the Most of MilkPEP Tutorial Session National Dairy Sales and Marketing Meeting July 28-30, 2008

Making the Most of MilkPEP Tutorial Session National Dairy Sales and Marketing Meeting July 28-30, 2008

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Making the Most of MilkPEP Tutorial Session National Dairy Sales and Marketing Meeting July 28-30, 2008

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  1. Making the Most of MilkPEP Tutorial SessionNational Dairy Sales and Marketing MeetingJuly 28-30, 2008

  2. What This Tutorial Is About • Provide insight and understanding on • how your investment is used to develop programs to help you sell milk • how you can maximize your investment in the MilkPEP program • all the various components of the program that are available to you • Give you an opportunity to ask specific questions about use of the programs • Provide an opportunity to learn from those who maximize their investment

  3. Agenda • About MILKPEP • Program Development Process • Types of Programs You Can Be Involved In • Retail • Schools • Grassroots • Local Marketing • MilkPEP and DMI Working Together • Overcoming Obstacles • How To Make The Most of MilkPEP • Who Uses the Programs/Best Practices

  4. About The Milk Processor Education Program (MilkPEP)

  5. MilkPEP’s Mission • The primary objective of MilkPEP is to sell more milk • MilkPEP does this by enhancing market conditions for milk • Improving milk’s image • Communicating milk’s nutritional benefits • Activating milk sales • Identifying real business-building opportunities • The primary tool by which MilkPEP carries out it’s mission is the national “Milk Mustache/got milk?” campaign • A consumer driven campaign to increase their consumption of milk

  6. What Is MilkPEP? • MilkPEP is a national milk marketing program created, funded and overseen by the fluid milk processing industry • The Milk Industry Foundation (MIF) sought legislation which established the “Act & Order” which created the MilkPEP program • Processors then voted a mandatory assessment of 20 cents per cwt of Class 1 fluid milk • The assessment is on those processors who process 3MM pounds of milk or more each month What does this mean? It means YOU pay for the program.

  7. Why Was MilkPEP Created? • MilkPEP was created in 1993 to stop the decline in milk consumption • Since the 1970’s per capita consumption of milk has steadily declined in the wake of all the other beverage choices available to consumers • The industry realized that milk needed to be more competitive in how it was marketed to consumers so it would not lose any more ground to competitors

  8. Who Does MilkPEP Benefit? • The MilkPEP program is funded by approximately 90 dairy companies across the county equating to 250 processing locations • These processors are large, medium and small • By law the program must benefit all of these processors equally, regardless of size or dollar contribution • The variety of programs and materials available make it easy to participate on the level each processor deems appropriate for them • National retail promotions • Grassroots events • Other marketing materials to be used locally (MM celebrity posters, generic POS materials, school materials, etc.) • Every processor who pays into the program should get worth from their investment

  9. MilkPEP’s Equitability Clause • By law the program must benefit all processors paying into the program. That’s why we can’t… • Execute account specific programs • Customize materials using MilkPEP dollars • Processors, can however, use MilkPEP provided artwork to create their own customized materials • Give money to retail accounts, processors, schools, etc. to create their own programs

  10. How Does MilkPEP Work? • MilkPEP is overseen by a 20 member Board of Directors made up of various milk processing companies throughout the country • MilkPEP staff has a rigorous planning process during which key research and trends are identified that will maximize milk consumption • MilkPEP staff meet with the Board three times per year to review messaging, programs and budgets • Board meetings are held in January, April and July • The Board is very active in the planning of the programs and approves all messaging and programs before they are executed

  11. MilkPEP Board Members

  12. MilkPEP Board Committees • Each Board member serves on a planning committee • Moms Committee • Development programs that reach general market moms • Hispanic Committee • Develops programs that reach Hispanic moms • Teens Committee • Develops programs that reach the teen target in schools and beyond • Business Development/Research Committee • Incubates and identifies opportunity areas for the development of milk sales

  13. MilkPEP Staff • Kurt Graetzer – CEO • Julie Buric – VP, Marketing • Julia Kadison, VP, Marketing • Mike Simmons, Director, Processor Relations • Kikke Riedel - Director, Research • Victor Zaborsky – Director, Marketing • Alison Kiczek, Manager, Marketing • Miranda Robertson, Manager, Marketing Communications • Crystal Monkman, Marketing Coordinator

  14. MilkPEP Agencies • Lowe Worldwide • Celebrity Campaign • National Advertising • Draft FCB • Retail Promotions • School Promotions • Weber Shandwick • National and grassroots PR • Siboney • Hispanic Advertising and PR • Outloud LLC • Processor and trade communications

  15. National Advertising Television and print Research national got milk?/ Milk Mustache platform Indicates planning trends to help sell more milk National Public Relations media impressions Delivers health and nutrition messages Promotions Grassroots Events/Local PR Provides local marketing opportunities to processors Drives sales at all retail outlets Tools for local marketing

  16. Primary target: Moms (general market and Hispanic) Secondary Target: Teens/Tweens • Makes family’s purchase decision and does the shopping • Oversees the health and happiness of her family • Influences what her family consumes • Risk target with consumption declining around 9 years old • Begin to make their own decisions • Mom makes consumption choices before age 9 • Important to capture market now as teens rarely return as milk consumers later in life Who Does MilkPEP Target?

  17. Trade Website MilkPEP Websites Processor Website The site for retailers, schools, food service, etc. with information on programs and research For milk processors only with all information on programs and research Consumer Website Consumer Website Consumer Website Hispanic website Mom website Teen website Note: is the website of the California Milk Processor Board and is not related to MilkPEP

  18. The Difference Between MilkPEP and DMI • MilkPEP • Works on behalf of milk processors • Is fluid milk only • Administers the National Milk Mustache/got milk? Campaign • Is located in Washington, DC • Dairy Management, Inc. (DMI) • Works on behalf of milk producers (dairy farmers) • Is milk, cheese and yogurt • Administers the 3-A-Day of Dairy program • Is located in Rosemont, IL

  19. The MilkPEP Program Development Process

  20. Planning Calendar • MilkPEP staff and agencies begin the planning process 1 year before release of new programs. JAN MAR NOV Initial planning meeting to identify issues, key trends, implications, and optimal time periods that will impact upcoming year MilkPEP Committee to review preliminary programs by target Present key planning implications and guiding principles to the Board MAY - JUN JUL APR Final Development of program Details MilkPEP Board meeting to review and approve final plan for upcoming year National Dairy Sales and Marketing Meeting to present programs to the dairy industry

  21. The National Dairy Sales and Marketing Meeting • The National Dairy Sales and Marketing Meeting marks the kick-off of a new year of programs • Review where we’ve been the previous year with results • Introduces new planning platforms and campaigns • Provides workshops on all new programs • Small setting to encourage questions and provide input • Provides specific examples and case histories to illustrate how to use the programs and make them your own

  22. Other Ways We Communicate to Processors • MilkPEP has developed an arsenal of communication tools that are used to communicate the new programs and other information to processors Alerts Informs processors of breaking news Website for milk processors where all information and resources can be found Monthly Email Updates Provides up to the minute updates and action steps Monthly Email Updates Newsletter issues three times per year focused on key time frames Daily Trade Activity - Trade ads, editorials stores, etc. Action: Make sure you are on our mail and email list

  23. We Also Communicate to the Trade • MilkPEP also has an extensive communication plan to the trade to keep them abreast of opportunities and aid in sell in • Trade Ads • Online Banners on websites • Editorials • We communicate to all retail and to schools

  24. The Milk Marketing Kit • The Milk Marketing Kit is your marketing bible for MilkPEP • Provides sales brochures on each program • Overviews and details to date • Broken into target sections • Provides order forms so you can sign up for each program • Provides Grassroots Event Sign-up Sheets • Provides other resources to help you access the program • Graphics are not final. They are meant to provide a direction for sell in. • Once program details are finalized creative concepts are developed or refined • Creative may evolve from what’s shown in sales kit • Final artwork is typically available two months prior to the program’s in-market date for use in ad circulars, local extensions, etc. • The 2 month window allows for last minute sign up and to be sure we are printing enough materials to meet demand

  25. Questions About Planning • Why does planning begin so early? • Our objective is to provide information to the industry in a timely fashion to allow for ample sell in and allow processors to plan early • The July/August timeframe for the sales meeting was established by talking with retailers and processors about an optimal time to receive information for their own planning purposes • Why aren’t all the programs finalized when we see them in July at the Sales Meeting? • There are many working parts to the development of programs such as partnerships, retail offers, celebrity use, legal review, etc. that often take more time to finalize • When we work with partners they sometimes change the details of their programs which in turn affect MilkPEP programs

  26. Questions About Planning • Then why doesn’t MilkPEP wait until later in the year to have the meeting? • MilkPEP feels it is best to inform the industry of the overall program as early as possible for sell in purposes and then finalize details like point-of-sale materials, events, etc. at a later date • This enables milk processors to lock up an entire calendar of events for milk promotion at an early date • My retailers won’t accept POS if they can’t see it beforehand. What can I offer them to secure their sign up? • POS materials are similar in size and shape from previous promotions, retailers can reference what they received previously • We also have sample kits available to ship one month before an event that can be shipped to your retail contacts per your request

  27. Types of Programs You Can be Involved In

  28. Typical Programs for Processor Participation • There are basically four types of programs that processors can be involved in: • Retail Programs • School Programs • Body By Milk • Grassroots Events/Local Public Relations • Stimulated by the National PR team • Local marketing • Activities generated by processors using MilkPEP resources • Information on all current programs are included in the Milk Marketing Kit or on-line at

  29. Retail Programs • We currently utilize 3 types of retail programs: • Feature Incentive Programs • Encourages the feature of milk at retail to stimulate sales • Requirements: • Retailers promote all milk or flavored milk during a specified time period • Promotion includes feature ads, use of POS, sampling, displays, etc. • Retailers receive prizes for their promotion activity based on their activity level • Retailers must show proof of compliance before receipt of prizes • National Sweepstakes • Big news offer stimulates excitement at retail and product purchase (e.g., $100,000 Chief Health Officer Salary Sweepstakes) • Requirement: Post POS materials in the dairy case • Partner Offers • Offer of “get something with milk purchase” stimulates milk purchase (e.g., milk caps for free weeks at Curves) • Requirement: Post POS materials in the dairy case

  30. Dairy Laws for Promoting Milk at Retail • State dairy laws do exist that can prohibit milk promotion if it affects price • Commonly the states have price limits on milk and the price of milk cannot fall below these limits • Coupons and discounts on milk are the primary offenders • These laws should not stop you from using MilkPEP programs at retail • All MilkPEP programs are approved by all states • We send problem states information on our programs to get their approval • MilkPEP programs are not based on affecting the price of milk • Feature incentive programs do not have to be price based • National sweepstakes do not affect price • Partner offers do not affect price

  31. Retail Program Sign Up • POS can ship directly to stores for store manager installation • This is why we ask for store lists • Processors can request that a quantity of POS kits be sent directly to them for installation • No store list required • You must fill out an order form for either of these options so we can ship materials in accordance with your specifications • For Feature Incentive Programs you and your retailer must choose a level of feature activity so we know prize quantity to be ordered • Proof of compliance is a requirement if prizes are to be received • Compliance packages are sent to all participants and must be returned with copies of ads, pictures of POS, etc.

  32. Retail Sell-in Process • The sales brochures are to be used as sell in tools for your accounts • Processors are free to call on any of their accounts in their area • Grocery (chain and independent) • C-stores, Drug Stores, Mass Merchandisers • The S/Rs also make calls on what they call “Key Accounts”, the larger grocery stores • S/Rs have had long term relationships with these accounts • They do sell in the MilkPEP programs as well, but they are not exclusive • You are free to work with your accounts in any way you choose • Processor takes the lead with the account • Do a coordinated sales calls with your S/R • Let the S/R take the lead on initial sell in then processor arranges a separate follow up call to secure promotion activity for their brands and make sure POS is installed

  33. FAQ’s for Retail Programs • Why is the order form so long? • We have to collect the appropriate information for materials shipping and tracking of participation • And we have to know the chosen feature activity to plan for the quantity of prizes to be ordered • Do I have to fill out one order form for each account I sign up? • Yes. If we do not get an order form for each account we cannot fulfill and track orders • Aren’t these retail programs only for grocery stores? What about my other accounts? • The retail programs offered can be used in any retail location to great success. For any given program we have many c-stores, drug stores, etc. that sign up and receive POS materials. • All retailers can also perform some type of feature activity. We are very flexible in the requirements for feature programs so that any retailer can participate

  34. School Programs • Body By Milk is the national school program from MilkPEP • MilkPEP automatically ships banner and poster kits to 100,000 schools across the country • Processors do not have to order materials unless their schools did not receive the kits • MilkPEP also has a communication plan in place that informs school food service professionals about the Body By Milk program and gain acceptance of the materials in schools • The processor opportunity is to build on MilkPEP’s school efforts by doing their own local marketing in schools • Sampling • Contests • Adding flavors • Action: Processors work with schools to ensure implementation of Body By Milk materials

  35. FAQ’s for School Programs • Do I have to order the kits for my schools? • No, they are shipped automatically two times per year • Go to to make sure your schools are on the mailing list • I’m confused about flavor formulation for schools. What are the requirements? • Currently, various recommendations are being considered but none are yet mandatory • MilkPEP recommends reformulating your flavored milks for schools to 150 calories per an 8 oz. serving • Flavor Formulation Seminars can be conducted for your dairy by calling Alison Kiczek at 202-220-3558

  36. Grassroots Events/Local PR Programs • These events are driven by the national PR team and are conducted to drive local media impressions for milk and give processors the opportunity to showcase their brands in the context of national programs • Milk Mustache Mobile Tour • Other local event tours such as Halloween • Our national PR team works with processors in various markets to set these events up and secure local PR • Information is sent to our processor mailing list with details about the events and to solicit processor sign up • Processors must fill out the form to get activity in their market • Our national PR team will call all processors in the areas to solicit participation • The processor opportunity is to show up at the events and sample their products to build their brands

  37. FAQ’s for Grassroots Programs • The Milk Mustache Mobile never comes to my market. Why not? • The primary objective of the MMM is to generate media and that is driven by market size • Usually every processor can be accommodated in one of their markets, so please fill out the form and the team will be in touch with you • Who is responsible for booking the MMM, the processor or the S/R? • The processor is the primary driver of selecting locations for the MMM. They are the brand owners. • The S/R’s may help with an event with the knowledge of the processor, but cannot make arrangements on their own • It’s best to work together to maximize the biggest opportunities

  38. FAQ’s for Grassroots Programs • Do I have to take the MMM to a retail store? • No. You are free to have the MMM at consumer events or other venues such as state fairs • Can I have my own event or do I have to share with other processors? • If you request a specific event or account or school it’s all yours • Kick off events in markets are open to all processors in the area

  39. Local Marketing • Activity stimulated locally by processors using MilkPEP materials • The Milk Marketing Catalog features an assortment of materials that can be used throughout the year for any type of marketing activity • Event-In-A-Box Kits • Sampling kits • POS materials • Brochures • Celebrity posters • features other resources for local marketing materials • Premium liquidation information • Where to purchase got milk? Premiums • Artwork for packaging, POS, etc. • Processors can also request MilkPEP artwork to develop and customize their own materials

  40. Local Marketing • Use of “got milk?” • You can use the approved MilkPEP or DMI materials with the got milk? logo • MilkPEP does not own the “got milk?” logo therefore cannot give the rights to its use • It is owned by the California Milk Processor Board (CMPB) • You can seek the use of “got milk?” for your brand from CMPB by calling Steve James at 949-481-6620 • Use of the Milk Mustache • You must seek approval of the Milk Mustache for local use through MilkPEP • Send materials for approval to Mike Simmons • You cannot take national Milk Mustache materials or properties and use them locally without express approval from MilkPEP • Call Mike Simmons to seek approvals

  41. FAQ’s for Local Marketing Programs • Do these materials cost me anything? • The catalog materials are available to you for FREE • The premiums available through the liquidation program require you to pay for shipping and handling • S&H based on your total order • Are there limits to how much I can order? • Yes, sometimes there are limits. Those limits are communicated in the catalog or on the website • Are there limitations to the use of these materials? • Yes, the materials must be used for milk marketing purposes only • No personal use is permitted

  42. MilkPEP and DMI:Working Together

  43. DMI Business Plan “Go-To-Market” Role Work proactively and in partnership with leaders and innovators to increase and apply knowledge that leverages opportunities to expand dairy markets CURRENT CONSUMER SALES PROCESSING & FILLING DISTRIBUTION COW POTENTIAL SALES UNMET DEMAND 44

  44. DMI Long-Term Goals • Increase current and life-long consumption of dairy products among children by an improved product experience and increased nutrition knowledge. • Improve availability of strategically important and consumer desired dairy products and ingredients that lead to category growth. • Motivate utilization of knowledge and information among leaders and influencers to enhance value and drive dairy sales. 45

  45. DMI and State & Regional Priorities Milk/Cheese/Ingredient Innovation Processor/Manufacturer Collaboration Child Nutrition & Fitness Initiative NFL Partnership Nutrition Affairs -Nutrient Rich Foods -Food Groups to Encourage -3 Servings of Dairy School Partners Health Professional Partnerships Leverage Knowledge to Stimulate Growth Export Opportunities Nutrition Science & Product Research Dairy Aisle Reinvention On-Farm Values and Technology Issues/Crisis Management Sustainability Protect Dairy’s Nutrition Franchise Enhance Dairy Industry Image 46

  46. DMI and State & Regional Capabilities

  47. State & Regional Structure 48

  48. Get to know key contacts in local market Understand MilkPEP and DMI/SR resources Discuss programming calendar and roles Look to State & Regional units for: Retail program support State and local nutrition affairs and communications Look to DMI functional experts for: Nutrition and Product Science Market and Consumer Research Business Development Testing/Support How Can We Coordinate Activities?

  49. Overcoming Perceived Obstacles