Presentation is loading. Please wait.

Presentation is loading. Please wait.

IT’S ON EVERYBODY’S LIPS!. VENDED MILK IS A HIT WITH KIDS… KIDS LOVE MILK. SO IT’S NO SURPRISE THAT A RECENT STUDY SHOWS THAT VENDED MILK IS A BIG HIT.

Similar presentations


Presentation on theme: "IT’S ON EVERYBODY’S LIPS!. VENDED MILK IS A HIT WITH KIDS… KIDS LOVE MILK. SO IT’S NO SURPRISE THAT A RECENT STUDY SHOWS THAT VENDED MILK IS A BIG HIT."— Presentation transcript:

1 IT’S ON EVERYBODY’S LIPS!

2 VENDED MILK IS A HIT WITH KIDS… KIDS LOVE MILK. SO IT’S NO SURPRISE THAT A RECENT STUDY SHOWS THAT VENDED MILK IS A BIG HIT IN SCHOOLS. SCHOOL PER CAPITA CONSUMPTION Units Per Consumer Per Week (3 WEEKS)

3 …AND WITH ADULTS! WHAT IS SURPRISING IS THAT A SIMILAR STUDY SHOWS THAT ADULTS LIKE VENDED MILK JUST AS MUCH. SCHOOL AND B & I PER CAPITA CONSUMPTION Units Per Consumer Per Week (3 WEEKS)

4 THE SOURCE THE STUDIES WERE CONDUCTED BY FMSTI - THE FLUID MILK STRATEGIC THINKING INITIATIVE. THE OBJECTIVE WAS TO EVALUATE THE OPPORTUNITY FOR MILK VENDING IN TERMS OF: SALES POTENTIAL OPERATING DYNAMICS OPTIMAL PRODUCT MIX THE RESULTS - GIVEN THE RIGHT PLACEMENT AND PRODUCT MIX, VENDED MILK REPRESENTS A HUGE SALES OPPORTUNITY ACROSS ALL VENDING CHANNELS.

5 VENUES –BUSINESS AND INDUSTRY –COLLEGES AND UNIVERSITIES –PUBLIC LOCATIONS SCOPE FOUR MARKETS 2 IN THE SOUTHWEST ONE EACH IN THE MIDWEST AND SOUTHEAST THE MULTI-CHANNEL VENDING TEST

6 VENDER TYPES INCLUDED LIVE- DISPLAY, CLOSED-FRONT, AND GLASS FRONT VENDORS. PRODUCT OFFERINGS RANGED FROM A WIDE VARIETY (7+) TO A MORE LIMITED SELECTION (4). VENDER AND PRODUCT MIX

7 THE TEST SHOWED THAT THE DEMAND FOR VENDED MILK AMONG ADULT POPULATIONS WAS STRONG. THE DEMAND FOR VENDED MILK WAS STRONG… Units Per Week Per Vender AVERAGE WEEKLY SALES PER VENDER EXCLUDING POOR PERFORMING VENDERS(1) (1) Venders with sales lower than the estimated requirement for profitability. SALES WERE CONSISTENT WITH INDUSTRY STANDARDS!

8 POST-INSTALLATION SALES WERE BETTER THAN INDUSTRY AVERAGE. …AND STEADY! SALES RETENTION FOLLOWING INSTALLATION PERIOD INSTALLATION PERIOD EQUALS THREE WEEKS %%%%%%

9 VENDERS THAT CARRIED MORE SKUS (7+) SOLD ALMOST TWICE AS MUCH AS THOSE THAT CARRIED ONLY LIMITED (4) MILK PRODUCTS. VARIETY DRIVES SALES AVERAGE WEEKLY PER CAPITA CONSUMPTION FULL VS. LIMITED PRODUCT LINE (4 Varieties) (7+ Varieties)

10 FLAVORED MILK SALES WERE SURPRISINGLY STRONG, WHILE WHITE MILK SOLD THREE TIMES AS WELL AS IT DID IN THE SCHOOL TEST. WHITE MILK AND FLAVORS BOTH SOLD WELL Other 11% White 27% Strawberry 15% Chocolate 47% FLAVOR VARIETY ANALYSIS Flavor Totals White 27% Chocolate 47% Strawberry 15% Other 11% Total 100% Significantly higher than 9% in School test

11 EVERY VEND OPERATOR WHO PARTICIPATED IN THE TEST SAYS MILK WILL LIKELY BECOME A PROFITABLE COMPONENT OF THEIR VENDING BUSINESS! BEST PRACTICE FULL VARIETY OF MILK PRODUCT OFFERINGS PLACED NEXT TO SNACK AND/OR FOOD MACHINES PLACE MILK AND HEALTHY BEVERAGE PRODUCTS TOGETHER OPTIMAL PLACEMENT PUBLIC VENUES WITH EXTENDED HOURS OF ACCESS/OPERATION B&I WITH 300+ POPULATION C&U LOCATIONS WITH HEAVY FOOT TRAFFIC OPERATORS LIKED THEIR FIRST TASTE OF MILK

12 VENUES –MIDDLE SCHOOLS –HIGH SCHOOLS SCOPE 86 VENDING MACHINES 5 DIVERSE MARKETS THE SCHOOL VENDING TEST

13 ALMOST ONE-THIRD OF ALL STUDENTS PURCHASED MILK ONCE A WEEK. VENDED MILK PASSES THE TEST IN SCHOOLS SALES WERE CONSISTENT WITH INDUSTRY STANDARDS! Units Consumed During Test Period AVERAGE WEEKLY SALES High SchoolMiddle School Total

14 PROJECTING THE RESULTS OVER A SCHOOL YEAR, EACH STUDENT WOULD CONSUME ON AVERAGE AN ADDITIONAL ONE GALLON! THE POTENTIAL MARKET FOR VENDED MILK IS HUGE VENDED MILK PROJECTED ANNUAL PER CAPITA CONSUMPTION Units Consumed During School Year Middle SchoolHigh SchoolTotal

15 AN ALTERNATIVE TO OTHER VENDED FARE AVAILABLE THROUGHOUT THE SCHOOL DAY A WIDE VARIETY OF FLAVORS WHY KIDS PREFER VENDED MILK

16 IN SCHOOLS, FLAVORED MILK OUTSOLD WHITE MILK 9 TO 1! FLAVOR VARIETY DRIVES SCHOOL SALES Strawberry Milk 27 % Other 1% * White Milk 10% Chocolate Milk 60% FLAVOR VARIETY ANALYSIS * Flavors beyond chocolate and strawberry sold well where they were offered. During the test, coffee made up 29% of all flavors sold at Boston schools. In Omaha, orange made up 10% of all flavors sold.

17 OPERATORS ARE COMING UNDER INCREASING PRESSURE TO IMPROVE THE NUTRITIONAL VALUE OF VENDED FARE IN SCHOOLS. MILK CAN HELP! 72% OF MOMS WITH KIDS 2-14 SAID THEY ENCOURAGE THEIR CHILDREN TO DRINK MILK*. TAKING ADVANTAGE OF MILK’S ‘HEALTH HALO’ *Source: 4Q 2002 Knowledge Networks Milk Consumption & Attitude Tracker

18 MILK IS A POWERFUL SOURCE OF CALCIUM, SOMETHING EXPERTS SAY AMERICAN KIDS NEED MORE OF. MILK IS NATURE’S BEST SOURCE OF CALCIUM % of daily values is based on a 2,000- calorie diet. The daily requirement is based on an 8 oz. serving. SOURCE: US Dept. of Agriculture Nutrient Analysis 30% 2% 0% % Daily Calcium Requirement

19 RESEARCH SUGGESTS THAT 3-4 SERVINGS OF DAIRY A DAY AS PART OF A REDUCED-CALORIE DIET CAN ALSO HELP PROMOTE WEIGHT LOSS. PROVIDING MILK AS A HEALTHY ALTERNATIVE WILL HELP ENSURE THE LONG -TERM VIABILITY OF SCHOOL VENDING. MILK AND THE FIGHT AGAINST OBESITY

20 WHY MILK’S POPULARITY IS GROWING NATIONWIDE MILK HAS BEEN EXPERIENCING A SURGE OF POPULARITY AMONG ALL CONSUMERS. CONTRIBUTING FACTORS INCLUDE: NEW FLAVORS NEW PRODUCTS INTEREST IN HEALTHIER EATING MILK IS THE SECOND MOST POPULAR BEVERAGE IN AMERICA AND #1 IN AMERICAN HOMES!

21 THE SWEET TASTE OF SUCCESS ALMOST 1/3 OF MILK’S GROWTH WAS DUE TO THE POPULARITY OF FLAVORS. Flavored Milk 27% Eggnog 1% White Milk 72% FLAVORED MILK SHARE GROWTH SOURCE: IRI 52 weeks ending 10/07/01 and total 2000

22 NEW FLAVORS AND TRADITIONAL FAVORITES ARE ALL EXPERIENCING REMARKABLE GROWTH THE SWEET TASTE OF SUCCESS THE GROWING POPULARITY OF FLAVORED MILK Percent growth Source : IRI 52 Weeks ending 10/07/01 and total 2000 MILK CONSUMPTION AMONG TEENAGERS IS UP TWO YEARS IN A ROW!

23 ANOTHER CONTRIBUTOR TO MILK’S NEW SUCCESS IS SINGLE-SERVE PACKAGING. CONSUMERS PREFER IT BECAUSE: IT TASTES BETTER IT KEEPS COLD LONGER IT’S PORTABLE PLASTIC SINGLE-SERVES – YOU CAN TAKE IT WITH YOU!

24 MILK’S LONG ASSOCIATION WITH GOOD HEALTH MAKES IT A PERFECT MATCH FOR BUSY FAMILIES LOOKING FOR NUTRITIOUS ALTERNATIVES. MILK AND THE HEALTH CONSCIOUS CONSUMER MILK IS THE ULTIMATE BEVERAGE ! MILK IS AN IMPORTANT SOURCE OF NINE ESSENTIAL NUTRIENTS

25 THE NATIONAL "Milk Mustache got milk?" CAMPAIGN, ONE OF THE MOST SUCCESSFUL MARKETING CAMPAIGNS IN HISTORY, CAN HELP YOU PROMOTE MILK TO YOUR CUSTOMERS. CONTACT YOUR MILK SUPPLIER TO SEE HOW THE CAMPAIGN CAN HELP YOUR BUSINESS. OR VISIT LEVERAGING THE POWER OF ‘GOT MILK?’

26

27


Download ppt "IT’S ON EVERYBODY’S LIPS!. VENDED MILK IS A HIT WITH KIDS… KIDS LOVE MILK. SO IT’S NO SURPRISE THAT A RECENT STUDY SHOWS THAT VENDED MILK IS A BIG HIT."

Similar presentations


Ads by Google