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Campina International - Focus on what you have

But how do you differentiate yourself in a market where your pro­ duct is available at a far cheaper price, and where, even legally, there would seem to be no distinctive capacity? Could they? Yes, we can, thought Campina. And they could. Admirably so.

Innovation at the source Focus on what you have and innovate at the source. Campina realised four things. People are concerned about the consequences of globalisation. People are worried about genetic manipulation and the natural value of their foods. Lifestyles are becoming increasingly healthy. And sustainability is a lasting phenomenon. They subsequently reflected on how these four issues could be related to their product and the Campina brand and decided to roll out four corporate principles to address the consumer concerns and justify the higher price of their products. Campina had to be: • • • •

Campina found itself able to create a true innovation that takes place at the source - feeding their cows. To give their cattle better and natural food, they improved the fat balance of the milk, resulting in a clear benefit for consumers. An innovation that can create such a clear consumer benefit and takes all consumer restrictions about honest food into account is rare indeed.

recognisable (local) natural healthy sustainable

Recognisable and local People are worried about the origin of what they eat and drink. Campina decided therefore to stress the local origin of its products and make sure consumers understand that what they are drinking originates from their doorstep. Well, almost. In its main market, the Netherlands, Campina owns 30% of all pastures in the Randstad, the most densely populated area in Europe. The result is that most people live close enough to a Campina farmer to cycle there. Campina invited families to farm days and, offering activities for adults and children alike, stressed the tangibility and locality of their products. Natural Partly covered by the farm visits mentioned above and the associated experience of the origin, Campina emphasises the natural nature of its goods. In contrast to some of its competitors, they demand that their farmers take care of their cows and the landscape and encourage them to allow their cows to graze outdoors. This ensures content livestock and healthier milk full of natural nutrients. In a nationwide packaging campaign, this is driven home further through friendly, grass-like packaging on their milk packs.

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Innovation at the source Milk is a pure and honest product. Through intensive market studies, Campina learned that consumers are not looking for ‘artificial’ healthier milk – they want healthy products with the roots at the source from where they come.

Healthy In 1960, skimmed milk was the last major innovation in milk production, being costdriven at the time rather than for health considerations. Now, building on its reputation as an innovator, Campina has found a way to renew further its products healthwise by innovating at the source, i.e. through its cattle feed. By the end of 2007, the company plans to introduce milk with an even more balanced composition, achieved through a new combination of feed (see below also) and outdoor grazing. This will lead to higher levels of unsaturated fatty acids and omega-3 fatty acids. Sustainable So. Campina milk stands for caring for animals, humans. To round off the formula, it also focuses on the environment. In line with its drive to improve the healthy nature of its milk, Campina plans by 2010 to supplement its outdoor grazing with solely green, sustainable soy. Add its close cooperation with Dutch organisation Natuur en Milieu (nature and environment), the WWF and Solidaridad, and it has carved a unique niche as a sustainable and responsible dairy producer.

So, does the consumer believe all these measures justify the higher cost of Campina products, and has the company’s new brand positioning as a local, natural, healthy and sustainable producer worked?

Coolbrands: Maarten & Anouk in discussion with Taco Kingma

Quality’s bane – cheap competition It is a legal fact that milk is just milk. True or false? True actually. But not entirely in the eyes of Campina. In recent years, faced with supermarket price wars and the introduction of cheap house brands, Campina found itself out-priced and market share was under pressure. With house brands going for €0.40 per litre and its own milk for some €0.70 for the same, something had to be done.

Let the farmers do the talking The challenge for Campina was to communicate all the Campina brand essence in a clear and trustworthy format. Campina chose to let their own farmers tell the story about the new, healthier, milk: a brilliant choice. No campaign in Campina’s history has brought the brand awareness to such a high level. It has lifted milk prices and increased the company’s market share. Greater numbers of retailers are showing an interest in Campina milk as it differs from all the others. Campina has established a clear and recognisable communication platform with the Campina brand on its four, brand values: recognisable (local); natural; health and sustainable. Campina International Founded in 1947 following the merger of a number of dairy cooperatives, Campina is one of the Netherlands’ foremost dairy producers. With its passion for dairy, the company emphasises its drive to make its entire range of dairy goods something special through total devotion to its products. The company focuses on renewal, with transparent processes, critical mass and focus as its three basic drivers behind rapid and effective innovation. Moreover, the direct cooperation between three company-owned innovation centres and the marketing staff ensures innovations match consumer needs. Originally focusing on its home market the Netherlands, the company now has operations around the world.

CEO/Managing Director T. Sanders | Number of employees 6,000 | Company turn­over €3.6b | Brand values recognisable (local), natural, healthy, sustainable | Target group Dairy consumers | Primary advertising media TV, Print, Online, product packaging, Shops

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