1

2

Marketing Communication Strategy for Increasing Milk Value：Synergistic Effects of Generic Marketing and Brand Marketing

Name Reo Fukuda

Organisation Gakushuin University

Event name IDF Wourld Dairy Summit

Outline

1. The unique characteristics of the Japanese milk market

2. Japanese consumers and milk value

3. Ways of Generic and brand marketing used in Japan for increasing milk value

3

The annual fluid milk consumption per capita in Europe

(Kg)

4

Milk consumption in Europe ranges from about 40kg to 130kg

The annual fluid milk consumption per capita in Asia 5

Milk consumption in Japanese market is about 30kg which is also far below the average milk consumption in Europe

(Kg)

Milk consumption in Asia is far below Europe’s average.

The worldwide prevalence of lactose intolerance by region

Over 80% of people in Southeast Asia are lactose intolerant

6

Only 15 to 60% of people in Europe are lactose intolerant

Japan has a higher rate of people with lactose intolerance

Many Japanese children

– receive milk every day for nutrient

– become familiar with milk at this time

School milk programs in Japan7

Value structure of milk

How do Japanese consumers value milk?

No quantitative study has been done to show how these factors affect purchase

8

An analysis of the influence of these factors on purchase

(GLM, Logistic link) N = 5001Tasty

Emotional connection

Nutritional conscious

Sex（male=0, female=1）

Purchase（no=0,yes=1)

Age Group（20-29=1,70-79=7）

.353**

.202**

.336**

.094**

.125**

R2M&Z ＝.463**

※Robust standard error

※Standardized

9the predictions turned out to be relatively accurate

An analysis of the influence of these factors on purchasing frequency

(Regression) N = 3767 exclusion non-buying milk

Tasty

Emotional connection

Nutritional conscious

Sex（male=0, female=1）

Purchase frequency(by monthly=1, almost

everyday=6)

Age Group（20-29=1,70-79=7）

.216 **

.109 **

.145 **

.018

.104 **

R2 ＝.125**

※using Robust standard error

※standarized

10

all factors predicted the purchase frequency ratebut it is far less accurate than

Communication through advertising– Brand marketing

• E.g. TV commercial for specific brand

– Generic marketing• The “Milk mustache” campaign• The “Consult milk” campaign

Communication through the educational program– Brand marketing

• “Naruhodo Factory”(factory tour)• School visit

– Generic marketing• The “Dairy education farm”

Two ways of marketing communication11

Why not marketing communication through advertising?

The research, which examines the effect of this marketing, shows

– The marketing lead to a more positive attitude toward milk and an increase in the intention to drink milk

– This marketing does not lead to a greater knowledge of milk

This is doe to consumers’ low level of trust advertisements

12

Generic marketing through the education program

“Dairy education farm”Concept

– Create a value for the milk and dairy farmers– Communicate the value of life

Background– The Committee for the Promotion of Dairy Education was

established in 1998 by The Japan Dairy Council– Demanding from

• Educational interface• Dairy industry

13

A example program in a dairy education farmContents

Intro(10min)

1.Lets student image about farmer works2.Connects farmer story to milk

Middle(30min)

3.Introduces own ranch4.Tells cow life5.Tells our works

Last(5min) 6.Tells end of cow life7.Lets student think about the meaning“Thank you for the meal”

14

Some photos of“Dairy education farm” 15

Students learn via a farm visits

A certified facilitator conductsa lesson in a school

Generic marketing through the education program

“Dairy education farm”Number of participants(up to date)

– Over 650,000 people

The activity were found to lead (Tsujinaka 2011)– Students to positive attitudes toward milk

– Non-milk drinker to drink milk

– Students to Increase interest about the farmer, farm, pasture, cow and milk

16

Brand marketing through the education program

（Meiji)The Objective

– Leading students to form a value for the milk and dairy farmers

– Create a positive image of their brand and products

These activities are divided into three category

– Factory tour

– Food education

– Cooking class

17

Some photos of“Naruhodo factory” 18

cow model are used to allow children to experience milking

Participants can pick up individual brands and products

Small cooking class

At the product line in factory tour, product’s safeness is emphasized

Some photos ofschool visits 19

Unlike factory tours, school visits is a stronger focus on education

Individual products cannot be introduced, but children learn about health

Brand marketing through the education program

school visits and “Naruhodo factory”Number of participants

– Naruhodo factory• Over 13,000 people(in one year)

– School visits• Over 100,000 people(until now)

The effects(e.g. iizumi 2016)– Decrease milk waste– Emphasize product safeness– Develop consumer knowledge of milk– Introduce individual brand and products

20

A strength of the factory tour approach to marketing is that knowledge of individual products can be obtained

21

Role of each marketing activities

22

Role of each marketing activities

What is the Japan Milk Academic Alliances 23

Japan Milk Academic Alliances

Socialand

Cultural

Health Science

Milk Education

Thank you for your attention

24

25