The Natural 1st Choice Dairy Company
An Arla Foods case study

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Page 6: Marketing a new product

Setting up a production facility can be expensive, so it was important to undertake extensive market research before making an investment to produce balance risk and return. The marketing processes involved had to be focused upon identifying, anticipating and satisfying consumer requirements for a new milk to turn what was viewed as a commodity into a brand. At the same time the brand needed to provide a profitable return for Arla Foods.

Having established a new segment of the market for milk, it was important to position the Cravendale brand to reflect the thoughts and perceptions of consumers. For example, it was emphasised that 'the brand can do what fresh milk cannot' as well as that 'it contains milk so good the cows want it back!'

Developing a branded product within a 'brandless' market was not going to be easy. The packaging was developed to be distinctive, and also stopped UV rays to help preserve the milk. The name had to fit the product and reflect the values to benefits of the brand.

The milk was targeted at socio-economic groups ranging from ABC1 families with children. A premium price was charged to reflect the complexity of the production processes, the position in the market place and the value of the brand as a quality milk.

The brand was initially tested in the Meridian TV region in the South of England, followed by rollouts across TV regions in Yorkshire, Tyne Tees, Border, Central and Granada before going national as the company developed its capacity to meet consumer needs.

Arla Foods | The Natural 1st Choice Dairy Company