For each campaign identify elements of the marketing mix:

• product planning
• price structure
• place and distribution system
• promotional program.

The deregulation of the milk market has thrown open new opportunities for national brands, but consumers will remain loyal to their old state brands in the near-to-medium-term.

That's the view of dairy processor Pauls' new group sales and marketing boss, Ian McMillan.

McMillan, who also runs Pauls' operation in Queensland, the most recent state to be deregulated in January this year, said the dairy industry is still "steeped in the past" and state borders will prove difficult to break down for brands competing for national status.

"There aren't any truly national milk brands at the moment. The marketplace is likely to remain regional for quite a long period and I don't necessarily anticipate any rationalisation of the industry, if and when it does become more national.

"In 20 years' time, the market will be significantly different, but there's plenty of opportunities in the meantime," he said.

 As well as its whole milk brand, the company also supplies a range of modified milks including Trim, Slim, PhysiCAL and PhysiCAL Skim.

In the race to create a dominant national flavoured milk brand, Pauls' competitors include New South Wales' Dairy Farmers Group and National Dairies. Pauls currently invests in television, radio, press and outdoor ads for its Breaka flavoured milk as well as sponsorships, such as the Noosa surfing festival in February - March 1999.

Another key Pauls brand receiving a big marketing push is its Icebreak iced cofee, which recently won four finalist places at the London Advertising Awards in the non-alcholic beverages category for its "Iceman" radio ads.

"State brands keep loyalty," says Pauls' milk marketer, Professional Marketing, February - March, 1999, p.4.

 The Australian Dairy Corporation is claiming a win/win through teaming up with cereal manufacturer Kellogg in a bid to halt declining milk sales and promote healthy breakfasts.

Firstly, it has solved the problem of promoting a non-branded, generic product by linking millk with a strong brand.

ADC marketing manager Konrad Markham says Kellogg's Cornflakes is the hero of the breakfast table' and milk will get clear knock-on benefits.

And secondly, it has halved its marketing budget as Kellogg and ADC have split the $1 million marketing budget down the middle.

 The humorous ads are designed to educate young mothers about the nutritional importance of giving their children milk for breakfast while pushing cornflakes.

Featuring the tagline "Little people can do big things with the right breakfast", a young pupil called Michael takes art classes a step further and paints the Sistine Chapel relief on his school ceiling in the style of his near namesake Michelangelo.

Milk producers have been hit hard by young people skipping breakfast or relying on McDonald's or a cereal bar instead.

 Plain milk sales are falling,while UHT and flavoured milks grow. Around 40% of milk is consumed at breakfast time and kids aged three to twelve years are the biggest consumers.

"We are now looking at the possibility of future partnership ads with Kellogg," says Markham, adding he is particulary keen to reverse the trend which means 18 to 25-year-olds are more likely to skip breakfast than any other age group.

"We may target young women looking to manage their weight by educating them that skipping breakfast is bad for their metabolism ­ meaning they burn less fat."

Milk and Kellogg team up, Professional Marketing, April/May, 1999, p. 4.

 Australia's milk consumption is increasing. National milk consumption for the first quarter of the financial year jumped ten million litres, setting a positive environment for the second stage of the Milk. Legendary Stuff campaign. The campaign, jointly developed by the Conference of Australian Milk Authorities (CAMA) and the Australian Dairy Corporation, was launched in February last year to arrest a decline in milk sales, and the results have been very encouraging.

It has captured the imagination of consumers, got people thinking and talking milk and has picked up national and international advertising awards. . .

Sales figures for the first three months of the 1998/99 financial year were 2.1% up on the same period last year. Leading the increases were South Australia with 5.1% increase, Western Australia with 3.7% and Victoria with 2.4%

The Milk. Legendary Stuff campaign is part of an overall strategy to position milk as an essential part of life in an emotional, involving and credible way. Its objective is to increase per capita consumption to five litres over the next two yesrs.

According to Sara Sahely, Marketing Manager for Australian Milk Marketing, "up until now our marketing effort has concentrated on two aspects of a consumer's relationship with milk. First, on a rational level, consumers know they need milk. For example, the need for calcium for teeth, bones and to prevent osteoporosis is well understood by consumers.

 This is due to the extensive health and nutritional activity that has been undertaken by state milk marketing bodies and the Australian Dairy Corporation. Secondly, on an emotional level, people want milk. Past advertising campaigns and the Legendary Stuff commercials have raised milk's profile as a beverage and made people look at milk differently: it's now OK to drink milk. Now that these two areas have been established, we felt it was time to focus on consumer behaviours, especially purchase beheaviour.'

A recent survey conducted by Sweeney and Associates showed that 39% of Australian households, i.e. more than 2.7 million homes, were running out of milk at least weekly. Of these 67% found it really annoying .

Ms Sahely said "milk consumption would increase if out-of-milk occurrences were reduced. Having more milk in the fridge is a sure way to increase consumption," she said.

Konrad Markham, Australian Dairy Corporation Marketing Manager, said the campaign has had a positive impact on consumers' perceptions and attitudes towards milk.

"There have been significant increases in the perception of milk's good taste, its refreshing qualities, being essential for good health and being natural. At the same time negative perceptions, such as milk being boring and high in calories, have been significantly reduced." he said.

Milk consumption rises, Food Australia, Vol 51, No 4, April, 1999, p. 133.

Reproduced with permission Food Australia

• increased exposure
• 40% of milk is consumed at breakfast
• reduced marketing costs

• nutritive value
• milk as a beverage
• teenage market: Breaka
• consumer behaviour: running out of milk
• mothers of young children: Kellogg promotion