So when the campaign first aired (followed by the exposé on A Current Affair), I’m sure the entire design, marketing and dairy industries were poised – watching the supermarket shelves to see how long it took for competitors to respond. And to no surprise, the biggest players in the milk market (Woolies and Coles) confirmed that their private-label products would become permeate-free. And they sure didn’t disappoint.

Label printers in Australia must have made record profits in the following months, because it didn’t take long before numerous brands were all milking the frenzy.

What’s the benefit to Dairy Farmers?

• They knew some competitors were likely to copy because Dairy Farmers didn’t own a long-term monopoly and couldn’t patent the process of making permeate-free milk, which in fact simplifies production
• They admit that permeate isn’t bad because even though it’s a watery by-product it’s natural, reduces costs, removes the need to dispose of it, and the Dairy Farmers website even states this clearly
• The campaign would have been expensive because producing a high-quality TVC and airing it on numerous channels (including prime time) costs a lot, while competitors selling permeate-free milk benefited from the education campaign and only paid for new labels

So given the above points, was there really any benefit to their shareholders or their brand?

Absolutely.

• They were first to market and for a short period effectively owned it because there were no well-known competitors making the same claim
• Even though they’ve been copied some consumers will still see them as market leaders and assume by inference that it’s the best product on the market
• The media coverage of their campaign (and the permeate debate in general) has exposed their brand to millions
• They’ve justified why their permeate-free milk is more expensive

What’s the benefit to consumers?

You could probably say it’s the right to choice. Now most consumers know about permeate, and they can decide what they prefer.

I’m hopeful that somehow it will result in full disclosure on all labels. Not just the marketing spin of “permeate-free”, but milk manufacturers having to disclose what percentage of permeate they re-add.

Need professional designers who bring clarity and creativity to your brand story? Call 3366 8166 or contact us today.

The post Was Dairy Farmers’ permeate-free a success? appeared first on Creative Passion.

Let’s forget about design, and just concentrate on the message on the above banner’s message for a minute.

This banner outside a local hospital missed the motives of most prospective clients. I’d suggest that for most prospective clients, that quality and convenience motives (such as the following) are likely to be more important to prospective clients than price:

• Is this reversible surgery?
• Is anaesthetic or pain relief included?
• Is the surgeon a specialist in this area?
• Is the surgery invasive?
• Does the surgery take long?
• How long will I need off work?

Another example

The three traditional selling propositions are quality, convenience and price. And whether you like it or not, most successful businesses focus mainly on one or two of these – but certainly not all three.

The pizza industry is a great way to explain the difference:

Quality

• Best pizza
• Gourmet pizza
• Best variety in town
• Great client service

Convenience

• Delivers to you
• Opening hours
• Convenient location
• Online ordering

Price

• Cheapest pizza in town
• Cheapest bundle deals

If you adopt price as your sole selling proposition, then may God had mercy on your soul. That’s because all competitors have to do is offer a cheaper price. And it’s difficult model to sustain, unless you own a patent or something which competitors can’t copy or beat.

The 1990s Australian pizza wars revolved around price with 2-for-1 deals and coupons. And the bottom line is that you can only reduce costs/quality/services so far before you lose customers or go broke.

Nowadays new competitors and even traditional pizza shops are competing on quality and convenience with toppings, different crusts and custom pizzas.

Need an honest, passionate look at your marketing? Call 3366 8166 or contact us — we’ll help you find what your audience will love.

The post Quality, convenience or price? appeared first on Creative Passion.