3ADay A Big Idea for the Dairy Industry

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3-A-DayA Big Idea for the Dairy Industry

• March 7, 2002

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Agenda

• Why 3-A-Day
• Marketing Plan Overview
• NICHD Partnership
• Industry Support
• Next Steps

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Why 3-A-Day

• Despite widespread awareness of calcium, most
  people still dont get their daily requirement
• However, most moms think their kids always or
  usually get the recommended servings of
  milk/dairy products (1)
• In terms of forms of calcium, food is still the
  gold standard,(2) but not the only option
• Use of fortified foods and supplements are
  growing (3)
• Current consumption of dairy products is only 1.5
  servings per day
• (1) 1997/98 Gallup Study on Pre-teen Eating
  Habits and Nutrition
• (2)1998 Gallup Study of Womens Attitudes Toward
  Calcium
• (3) 1999 Gallup Study of Changing Food
  Preparation and Eating Habits

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3-A-Day can be a Strong Message for the Dairy
Industry

• Consumer Strategy Testing told us its Compelling
  to Consumers
• Provides new news
• Highly relevant
• Believable
• Strong Call to Action
• Tightly linked to purchase behavior
• Calcium in Dairy provides the reason why
• Similar to Produce Industrys 5 a Day for Better
  Health message, which has produced increased
  consumption
• Reinforces Dairys leadership role in providing
  calcium
• Simple to Communicate
• Ideal marketing message
• Clear and concise

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3-A-Day Idea

• Dairy Management Inc. (DMI) has been leading
  development of the concept, and put together a
  core team to assist
• National Cheese Institute
• International Dairy Foods Association
• Kraft
• DMI

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3-A-Day Charter

• Objectives
• Increase per capita consumption of dairy products
• Reinforce dairy products as the leading sources
  of calcium
• Strategy
• Launch an dairy industry-wide campaign to
  communicate a Three Servings of Dairy a Day for
  Stronger Bones message
• Consumer Target
• Moms with kids at home

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3-A-Day Charter

• Product Participation Guidelines
• Must be a dairy product in the milk, cheese or
  yogurt categories
• Products must have 20 the Recommended Daily
  Intake (RDI) for calcium per serving
• Products must have at least 10 the RDI for
  calcium/serving without fortification

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3-A-Day Marketing Brief

• Marketing ChallengeMost people think they are
  getting the calcium they need, so theyre not
  concerned about increasing their dairy
  consumption
• Target
• Moms who take a common sense approach to
  choosing nutritious foods that are appealing to
  their families

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3-A-Day Marketing Brief

• Consumer Insights
• I care about the well-being of my family so
  Im trying to establish sensible eating habits.
  Im overloaded with conflicting advice on healthy
  eating so Im open to practical nutrition advice
  that intuitively makes sense.
• Overarching Goal
• Get moms to establish 3 a day of dairy as a
  simple eating habit that her family will enjoy

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3-A-Day Marketing Brief

• 1 Thing We Need to Communicate
• Have 3 servings of dairy products a day for
  stronger bones
• Milk, cheese and yogurt
• Communication Hierarchy1) 3 a day2) milk,
  cheese, yogurt3) for stronger bones

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3-A-Day Marketing Brief

• Key Tasks
• 1) Share the news (about the calcium
  deficiency)
• PR, Internet, Health Association partnerships
• 2) Set the goal (3-A-Day of dairy is the
  solution)
• Advertising (print campaign and tagged), PR, on
  package, in-store, health association
  partnerships
• 3) Show me how
• On package, in-store, PR, web, health association
  partnerships

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Integrated Marketing Approach with these Core
Elements

• Logo (for packaging and other marketing elements)
• Print Advertising
• Public Relations
• In-Store

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Developed/Tested Logo with Consumers

• We needed a logo to clearly convey 3-A-Day
  message
• This logo was the clear winner (1)
• 3-a-day was telegraphic (logos shown on actual
  dairy product packaging)
• Respondents liked product illustrations
• stronger bones preferred over bone health
• No confusion identified with MilkPEP 3 Glasses
  of Milk a Day initiative
• (1) Methodology 19 11 interviews in
  Baltimore(9) and Chicago(10)

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3-A-Day Print Advertising Recommendations
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Team Developed Three Print Ad Campaigns for
Consideration
Cows
Food
Bones
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Quantitative Consumer Test Conducted of Three
Campaigns

• Test Objectives
• Communication of 3 A Day concept
• Total dairy message - milk, cheese, and yogurt
• Intent to consume and serve milk, cheese, yogurt
  at least on par with current campaigns
• Focus on Moms - intent to serve

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Research Design
Test Campaigns
Benchmark
Control
Got Milk
Power of Cheese
Bones
Cows
Food
No Ad
Communication Intent to Consume Milk,
Cheese, Yogurt Intent to Serve Milk, Cheese,
Yogurt Attribute Ratings
Not asked in control cell
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Strong Communication of 3-A-Day Message
Bones
Cows
Food
Aided Mentions
Control
Adults
70
71
73
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Moms
72
70
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Q According to the Food Pyramid, a healthy diet
consists of a recommended number of servings from
each of the various food categories. For
each of the food categories below please indicate
what you believe is the daily recommended
servings.?
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Food More Focused on 3-A-Day
Bones
Cows
Food
Unaided Mentions
Adults
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20
30
Moms
20
19
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Q When you think about the three ads together,
what are the main ideas being communicated by the
ads?
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Motivation Measures
Moms Adults

• After seeing the three ads, how likely are you to
  consume the following in the future?
• More About Less
• Than in The Past The Same Than in
  The Past
• MILK
• CHEESE
• YOGURT
• After seeing all three ads, how likely are you to
  serve the following to your kid(s) in the future?
• More About Less
• Than in The Past The Same Than in
  The Past
• MILK
• CHEESE
• YOGURT

Moms
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Food Drives Consumption Intent
Food
Mom Target
More likely to consume in future
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Milk
Cheese
13
Yogurt
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(a)
Q After seeing the three ads, how likely are
you to consume the following in the future?
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Not a Polarizing Message
Mom Target
Intended Milk Consumption
Q After seeing the three ads, how likely are
you to consume the following in the future?
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Food Drives Moms Serving Intent
Food
Mom Target
More likely to serve in future
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Milk
Cheese
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Yogurt
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(a)
Q After seeing all three ads, how likely are
you to serve the following to your kid(s) in the
future?
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Again . . . No Tradeoff
Mom Target
Intended Milk Servings
Q After seeing all three ads, how likely are
you to serve the following to your kid(s) in the
future?
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Winning Campaign - Food

• Communicates 3 A Day
• With Dairy focus
• Motivating
• Adult consumption
• Moms serving to children
• Floats all boats . . .
• 3 primary dairy categories positively impacted

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Communications Plan

• Key Tasks
• 1) Share the news (about the calcium
  deficiency)
• PR, Internet, Health Association partnerships
• 2) Set the goal (3-A-Day of dairy is the
  solution)
• Advertising (print campaign and tagged), PR, on
  package, in-store, health association
  partnerships
• 3) Show me how
• On package, in-store, PR, web, health association
  partnerships

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Media Recommendations

• National Magazines
• Efficient media vehicle
• Reach builder, allows for continuity if
  affordable
• Ideal editorial environment (e.g.
  Health/Nutrition, Food)
• Allows visual demonstration of products, logo
  recognition
• Select titles/categories with strong composition
  of moms
• Parenting, Health/Fitness, Lifestyle, Womens
  Service, Shelter
• Maximize scheduling via relevant editorial
• Parenting, Health/Nutrition, Well-being, Food

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Media Recommendations

• Stage 1 - Awareness
• Generate maximum impact and reach in order to
  educate moms about how 3-A-Day will fulfill their
  daily calcium requirements
• 60 to 70 monthly reach
• Typical print reach goal for product introduction
• Consider running 3 consecutive right hand pages
  (CRHP) to launch the first month of the campaign
• Stage 2 Reminder/Continuity
• If affordable, maintain strong levels in order to
  remind moms about 3-A-Day servings and their
  benefits
• 45-50 monthly reach
• Strong sustaining levels typical for packaged
  goods

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3-A-Day PR Recommendations
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PR Role
Step 1 Set the stage
Step 2 Share the news/Set the goal
Step 3 Show mom how
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Set the Stage

• Develop program materials/messages and soft-test
  with key audiences
• Dairy-friendly moms, HPs, media
• Lay the groundwork with key audiences
• Host 3-course luncheon with long-lead consumer
  magazine editors
• Host briefings with key health professional
  groups

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Share the News

• 3-A-Day Launch Media Bonanza
• New Years national press conference launch in DC
  
• Speakers to include NICHD, calcium crisis
  experts, everyday moms
• Unveil the 3-A-Day pledge as the New Years
  resolution for stronger bones invite national
  health officials to take the pledge
• Release national VNR/ANR, press materials

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Influencer Extensions

• Continue special education efforts direct to key
  mom influencer groups
• ADA, AAP, Retail RDs, etc.
• Provide training and materials
• Exhibit at national, local meetings
• Use key health professionals as conduit to mom
• Develop and distribute waiting room education
  materials touting 3-A-Day tips
• Timing January 2003-April 2003

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Show Mom How

• Bringing 3-A-Day Home
• Host local 3-A-Day celebrations
• Local health officials sign 3-A-Day pledge and
  declare national 3-A-Day Day
• Pitch 3-A-Day pledge and Calcium Champion contest
  to moms
• RDs, chefs provide moms with real/tasty calcium
  solutions -- especially for picky eaters
• Giant 3s appear in conjunction with 3-A-Day
  retail sampling, highlighting tasty solutions to
  calcium crisis

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Launch Moms Calcium Champion Contest

• Partner with moms magazine to sponsor search for
  moms who believe they are true calcium champions
  in their families
• Recognize and reward top three moms
• Contest entrants all become part of Calcium
  Champion moms club
• Sign 3-A-Day pledge for selves and families
• Get special e-letter, micro-site access to
  experts and other moms, Power of 3 toolkit,
  etc.
• Timing April 2003on

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PR Timeline

• Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

• Step One
• Enlist partners
• Develop materials
• Long-lead outreach
• Step Two
• National press conference
• Launch tactics follow-up
• Step Three
• 3-A-Day local celebrations

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3-A-Day Retail Recommendations
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3-A-Day Retail Program

• Objectives
• Set the goal (3-A-Day of Dairy is the solution)
• Show moms how to do it (Make it actionable)
• Strategy
• Develop marketing communication elements for
  mid-level accounts (1/3 ACV)
• Develop major, account-specific 3-A-Day retail
  events for key national accounts (1/3 ACV)

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Mid-Level Accounts

• How well do it
• Develop and distribute 3-A-Day Merchandising Kits
  to HQ-level Dairy Category Managers
• Kits would contain marketing communications
  elements to implement program
• Distributed via DMI S/R retail staff to
  approximately 50-60 accounts
• Sales Deck
• Order Form

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Mid-Level Accounts

• Kit elements
• Customizable 3-A-Day radio creative (4515)
  available for use by retailers and manufacturer
  partners (in-store and out-of-store)
• Scripts for announcer tags of retailers and
  manufacturers own radio advertising
• Signage samples available for order
• 3-A-Day Logo Static Cling-Ons for Dairy Case
• Laminated 3-A-Day Flip Booklet to grab attention
  and provide usage tips
• 3-sided or 3-panel Chalk board above dairy case
  for Moms 3-A Day dairy shopping list
• Employee hats, buttons

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Mid-Level Accounts

• Kit elements
• Moms Club Power of 3 toolkit (fridge magnet,
  calcium counter, etc.)
• Information on Calcium Champion Contest
• Graphics, i.e., ad slicks, photography, etc.
• CD-ROM would contain above elements, plus
  instructional video on how to leverage 3-A-Day
  in-store (could be sent to store-level)
• Kits would also go to Retail RDs/Consumer Affairs
  Directors

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National Accounts

• How well do it
• Create custom, account-specific 3-A-Day events
  with the top 5 chains beginning Q1 03
• Wal-Mart
• Kroger
• Albertsons
• Safeway
• Ahold
• These chains collectively represent approximately
  33 of US ACV

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National Accounts

• Events could include
• Combination of media (4514 radio, loyalty direct
  mail, etc.) and in-store (sampling, POS) --
  elements would vary based on each retailers
  preference/priority
• Brand-ownable elements (sampling, features,
  tagged radio, coupons, etc.)
• Partner with 3-A-Day Manufacturers
• Multiple brands within the three categories

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National Accounts

• 3-A-Day Event at Kroger example
• 3-A-Day themed direct mail sent to key Kroger
  Plus Card families (target light dairy users?)
• Mailer would share the news about the crisis, set
  the goal of 3-A-Day as a good daily habit, and
  show Mom how (usage ideas, recipes, dairy
  shopping list, etc.)
• Include dairy coupons funded by partners
• 3-A-Day Feature ads in Kroger Circulars
• Sampling (distribute usage ideas, calcium
  counter, etc.)
• POS Signage

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Retail Timeline

• Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

• Mid-Level Accounts
• Develop kit materials
• Introduce S/Rs to program/begin retail sell-in
• National Accounts
• Meet w/5 accounts, introduce program,
  plan,develop events
• Launch
• Partners
• Introduce retail program, plan joint events

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NICHD Partnership
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NICHD Partnership Wants to be Lead Health Prof.
Org.

• Background
• National Institute of Child Health and Human
  Development is part of the National Institutes of
  Health, U.S. Department of Health and Human
  Services
• NICHD administers a multidisciplinary program of
  research, research training and public
  information

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NICHD Partnership Wants to be Lead Health Prof.
Org.

• NICHD Role
• They see their role as similar to that of the
  National Cancer Institute with 5-A-Day
  program, i.e.,
• Funding research Basic science research and
  Consumer Research
• Public education Public relations, Educational
  materials (e.g., Milk Matters)
• Next Steps
• They will provide a Memorandum of Understanding
  proposing their role in the 3-A-Day program in 1Q
  2002

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Industry Support
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Approach

• Assume that base national effort funded by
  Industry participation
• Allocation of Cost Model
• Retail Raw Milk Volume/Pounds
• Milk Consumption/Target Audience
• Cheese Volume--Branded/Private Label
• Minimum Category Participation

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Budget Splits

• Raw Milk-Retail
• Milk 55/Cheese Yogurt 45
• Milk Target Audience
• Kids/Moms 2/3--Adults/Teens 1/3
• Cheese
• NCI 2/3-- DMI 1/3
• Yogurt
• Category Minimum--5 of Total Budget

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Costs per/ million support

• Milk 55 550,000
• DMI 375
• Milk Processors 175
• Cheese/Yogurt 45 450,000
• DMI 125
• NCI 275
• Yogurt Category 50
• 
  __________
  
• Total
  1,000,000

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For Example 4,000,000 Plan

• Milk 2170
• DMI 1470
• Milk Processors 700
• Cheese 1630
• DMI 530
• NCI 1100
• Yogurt 200
• 4000

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Branded Participation

• Support of base national communications plan
  provides access to
• Package logos
• Communication Materials
• Retail promotion participation
• Materials will be billed at cost

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Recommended NCI Member Participation
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NCI Industry and Member Benefits Ubiquitous
Exposure
Natl PR and Advertising
Logo-in-Generic Campaign Support from
DMI (Cheese and Milk)
Logo in Manufacturer Packaging, Public
Relations, and Advertising
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NCI Funding Model

• Requested campaign contributions based on NCI
  annual dues factored by
• Nature of business
• Non-retail participants less than 100
• Branded and private label retail participants
• 100-200

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Next Steps
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Timeline
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

• Introduce Full Marketing Plan to Industry
  Partners
• SMART Marketing
• Milk IDFA/MilkPEP Board,
  Individual Processors
• Yogurt National Yogurt Association, Dannon,
  General Mills
• Cheese NCI Board
• NICHD
• Finalize industry support, funding
• Develop program materials

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Timeline
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
3-A-Day Logo put in packaging inventories DMI
S/R Sales and PR staff begin implementation 3-A-D
ay Launch
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2003