Talking Points

Talking Points
by Pamela Accetta Smith
Senior Editor
Some of the dairy industry’s marketing professionals offer their views on what keeps their niche ahead of the game.
Marketing can make or break a product.
It’s true — the best food or beverage in
the world might not get off the ground without the proper positioning.
Dairy Field recently spoke with these members of
processors’ marketing teams who are utilizing several marketing tools
to their best advantage:
Dave Holdsworth, vice president of sales and
marketing, Old Home Foods Inc., St. Paul, Minn.
Kathy Holstad, marketing director, Tillamook
County Creamery Association, Tillamook, Ore.
Jim Hayhurst, advertising manager, Blue Bell
Creameries LP, Brenham, Texas.
Q: What have been your most
successful marketing strategies or campaigns over the years?
Holdsworth: Several
years ago, we launched a new brand positioning, articulated with our
tagline: “For the way you live.” This platform reinforces the
longevity and heritage of Old Home Foods as a care-giving brand in family
lives. Our company, for more than 80 years, has built a foundation around
remaining relevant with our consumers by providing products that fit their
needs and lifestyles — products that moms can be sure their families
will love. Our campaign has been consistent throughout the years and has
incorporating prominent package visuals while contemporizing the brand with
bold/bright colors.
Holstad: Our most
successful marketing strategy has been to focus on quality, consistency and
taste in everything we do. We focus most of our marketing efforts on
cheddar cheese, which is our best-selling product line, and highlight
attributes of being naturally aged and made with high-quality milk from
cows not treated with the growth hormone rBST. As we grow as a brand, we
will not sacrifice any of these attributes. We have also focused on the
fact that we are a farmer-owned and operated cooperative committed to
sustaining family farms, and doing good things in the communities in which
we sell our cheese. All of our marketing and PR events are focus on family,
food and community.
If we try to stray from what Tillamook stands for, we
risk alienating our core customers. This has taught us to remain true to
the core values outlined above.
Hayhurst: Years ago,
our management believed that being located out in the country, so far away
from the big markets, might be a disadvantage to Blue Bell. However, our Houston-based ad agency at the time — the Metzdorf
Agency, and specifically their creative adman, the late Lyle Metzdorf
— saw it as an advantage. Lyle crafted an ad campaign that made being
located in the beautiful countryside with rolling hills, flagrant
wildflowers and happy cows an advantage, thus our “Fresh from the
Little Creamery” campaign was born. “The Little Creamery”
theme allowed us to promote “the best ice cream in the country”
made with the freshest ingredients by hard-working folks doing business the
old fashioned way, via nostalgic down-home commercials. This continues to
be our strategy today.
I wouldn’t say anything has been unsuccessful,
but our biggest challenge is going into a new market where we have little
or no brand recognition. For years, most of our expansion was in southern
states where folks, due to the oil industry, tend to move back and forth
and because of their familiarity with our product, gave us a big reception.
Q: What is your company
currently doing to gain share of stomach?
Holdsworth: Our
drive-time radio and outdoor billboard campaign has been an extremely
successful combination for us. Also, we have strong ties with our retailer
partners to drive in-store sampling and ongoing coupon activity. We have
also benefited from our community involvement; with our strong St. Paul
roots we’ve generated awareness with sponsorships of the VISA
Championships (the national championships of USA Gymnastics), St. Paul
Saints baseball and other local promotions.
Holstad: We
hired a new advertising agency, Leopold Ketel, late last year and have just
launched two new ad campaigns — one that focuses on our general
consumer in magazine print ads and the other that focuses on our gourmet
consumers in gourmet-type magazines. We are focusing on core attributes
that our loyal consumers know about us, which we want to share with
consumers who don’t know about us. Those attributes are mainly that
Tillamook Cheese has been farmer owned since 1909, Tillamook cheddar is
aged naturally and is made from the highest-quality milk from cows not
treated with artificial growth hormones. We also sponsor many community
events such food drives, neighborhood rejuvenation efforts and fun family
event days, as well as many other product donations for events evolving
around family and health. And we sponsor a national macaroni and cheese
recipe contest, which draws hundreds of entries each year, which is
entering its third year.
Hayhurst: Since
we’re a regional company with markets in parts of just 17 states, one
of the avenues to gain share is opening new markets. This year we opened
Louisville and surrounding markets in the state of Kentucky, some with
sales areas which extend into Indiana.
Q: What does your company do
to go above and beyond in terms of marketing its products?
Holdsworth: We have an
unparalleled commitment to product quality and integrity. Our cottage
cheese was recently awarded the first-ever Best in the Nation award in the
2007 U.S. Championship Cheese Contest. We are also in the process of
introducing a new product that outperformed our competition in a taste
test. As a premium dairy company, it is essential that we continue to
evolve to meet the needs of our consumers.
Holstad: We love to
have direct contact with our consumers and really develop a relationship.
We do this by providing personal quick responses to our consumers through
our customer service department, through the events we participate in that
Tillamook employees are a part of and by participating in as many events as
possible that support our markets. Our consumers are very loyal to
Tillamook and we want them to know that we care about what is important to
them.
Hayhurst: Since
the marketing process includes distribution, one of the key things we do to
insure product freshness is direct store delivery. This means that no one
but Blue Bell employees handle the ice cream from the time it is made until
it is placed in the grocer’s freezer. This is an expensive process,
but is a key competitive advantage for us, and a genuine benefit to the
consumer.
Q: Where do you see dairy
marketing strategies going in the future?
Holdsworth: I
definitely feel that we will see a continued shift toward stronger
marketing to women initiatives, focusing on the health benefits of dairy.
Holstad: I think
innovation of convenience for consumers will continue to grow, as well as
health concerns — specifically weight and ingredients in our foods.
Over the past few years, we have received increased numbers of questions
related specifically to milk from cows treated with rBST, and we believe
the number of these kinds of questions will continue to increase.
Hayhurst: Due to
evolving competitive pressure in the grocery industry, it is more important
now than ever for products to have a very strong brand connection with the
consumer. All advertising, promotional activities and Internet initiatives
must reinforce the brand and product benefits.
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