Page 5: Values in action - Cravendale
Other than flavoured milks, there has been little innovation in the fresh milk market. For the consumer, the trigger to purchase is both need and the colour of the cap on the plastic container in the supermarket. The market is declining with a movement away from doorstep delivery towards supermarket purchase. Within a values-driven culture, there was a need to challenge existing practices and explore ways of innovating to discover and meet the changing needs of consumers such as an improved taste profile, a greater level of purity and remaining fresher for longer - 20 days unopened and 7 days once opened.
Backed by their strong supply of product (milk) and having built a business environment that would encourage new product development (NPD), Arla wanted to introduce growth into the market place. In Canada there has been some innovation in the milk market, with the development of pure filtered milk with less bacteria. It was felt that this type of innovation would provide an opportunity to reflect the changing way in which milk is purchased, and yet at the same time, provide a host of other benefits for consumers.
A large investment in new plant machinery meant the company could produce pure filtered milk. New products need unique selling points (USPs) to differentiate them in the market place. The main benefits of Cravendale over its competitors are that it:
- stays fresher for longer, up to 20 days unopened and 7 days opened
- can be distinguished by its creamier and pure taste which consumers prefer
- is a branded product perceived as providing the consumer with more value.