Alaska owns 85 percent of the evaporated milk market and 65 percent of condensed milk market.
In the hypercompetitive world of consumer goods, even those brands with a seemingly comfortable stranglehold on the market can lose their market share.
Milk company Alaska, however, was determined to not be counted among those doomed brands, and effective marketing campaigns had a lot to do with the dominance it still enjoys.
Behind many of these marketing campaigns is Ma. Belen M. Fernando, Alaska vice president for marketing, who shares here her thoughts on how to compete and win in the market.
Q: In your marketing career, what are the three most memorable marketing campaigns that you initiated? Can you elaborate?
A) The Alaska Value Line—During the series of price increases in the mid-2000, our Alaska evaporated/sweetened condensed milk line was under siege. It was losing market share, declining in volume offtake and household penetration. This was our heritage brand. Moreover, researchers were declaring the Evaporated and Sweetened Condensed markets as sunset markets that would soon disappear. In short, the brand had lost its original relevance among consumers. The category had reached its pricing threshold and no amount of advertising and promotions could turn around the declines in the category.
Hence, I thought of launching a counterpart “Alaska Evaporada” and “Alaska Condensada,” with the concept of using milk as a way of improving the lives of Filipino families. We priced this at 20 percent less than the heritage/classic line in order to capture those who had tuned out of the category over the past years. The target were housewives who wanted to help augment their family’s income so that they could have a better life. We called them “mompreneurs,” the negosyantes who would open small businesses. The center of the business was Filipino food preps, with halo-halo as the showcase.
Within one year, Alaska was able to reverse the declining trend of both Evaporated and Sweetened Condensed Milk markets. Furthermore, our market shares took quantum leaps each year. Today, Alaska Evaporada is a P2.5-billion business.
The first campaign was a road trip around the Philippines showing how different halo-halo was in each province. Today, we have moved out of halo-halo but expanded to ‘sa malamig’ and other Pinoy refreshing beverages and snacking.
The campaign has consistently won creative and effectiveness awards. It has also opened a new market for Alaska Milk—the underground economy, helping bring the lives of the lower income D class to better levels through the spirit of entrepreneurship. Today, Alaska owns 85 percent of the evap market and 65 percent of the condensed milk market and the market remains stable. Household penetration is now at 59 percent, up from 32 percent years earlier.
This campaign proved that advertising works—halo-halo, sa malamig, kakanin, etc., were in oblivion and were considered “rural” food preps. We elevated the Filipino snacks and beverages into the consciousness of the people. This campaign was beyond business. It was also an advocacy.
B) The Alaska Powdered Milk Drink (APMD) was a far second to Bear Brand. Its share was only about 10 percent. We put together a major plan to relaunch APMD, touching the 6Ps. On communications, we stumbled on a very unique story, “The Growth Gap” years. The Growth Gap years was a period in a child’s development when his growth slows down after a huge spurt. It was supported by scientific studies. In about two years, Alaska reached a 20 percent share of the market. Moreover, “growth gap” and the iconic “paper dolls” became highly memorable elements in the campaign and this was proven via research.
C) The Bar Mixed Drinks was launched in February 1986, right on the week of the Edsa Revolution. I thought it was the end of my career (which had only started then). The Bar had limited budget and being a raw, start up marketing practitioner, I just had to create new ways of promoting the brand. This was when I learned the strength of activation programs. The 360 marketing plan of The Bar was simple: Sampling in all shows/concerts, a unique distribution program based on community dealers plus a compelling, single-minded advertising (TV, radio). The Bar became such a big hit.
It was the newest fad in town targeting a young market that was looking for an alternative to beer. It earned millions. The brand has since been sold to international distillers and has been relaunched. However, it has never reached the same heights as when I launched it in 1986, straight out of grad school with no real experience in brand management.
Q: How did your early years in marketing influence you?
A: My marketing career actually started in URC—hands on, roll up sleeves, patience, know everything, etc. In short, do everything you can to learn all aspects of marketing. Have an entrepreneurial spirit! Enjoy your job.
Do not go analysis-paralysis like some multinational companies. Analysis-paralysis wastes the market opportunities that are within grasp.
Ma. Belen Fernando, Alaska VP for Marketing
Handling The Bar Mixed Drinks taught me to be creative, open to new things and ideas, and unafraid to try out something new.
In all my earlier years, two of my biggest learnings are:
(1) Integrity. One must keep to this no matter how difficult. It is the foundation of all values in one’s career.
(2) Relationships. Build, develop and keep them. Learn how to look back at those who helped you during your “struggling” and start-up years. When the time comes, you can always count on them to help you.
(3) Excellence. Big or small, do it with excellence and passion. Raise the bar of excellence for yourself each time.
Q: What are your hard-to-forget marketing failures? What did you learn from them?
A: I can name two major failed launches.
A) Alaska Hi-Calcium Powdered Milk to compete with Anlene (during the height of the osteoporosis news). We were convinced by our New Zealand milk powder suppliers that “colostrum” was the next big thing in the market. Unfortunately, no one believed that “colostrum,” which came from mother’s milk, would be found in a high calcium powdered milk. There was just too many ideas in one communications platform. Likewise, when we researched the high calcium powdered milk market, it was growing double digits. However, we launched after almost two years but we did not check the market again via consumer research because we were confident. By that time, the market was on a decline but we did not pick it up fast enough.
B) Alaska Fortified Growing Up Milk, the predecessor of Growing Up Milk.
Alaska Milk was the first to launch this in the Philippines. Unfortunately, it was too early. We did not take into account several points:
(1) The confusion of the new product versus our mainstream regular powdered milk.
(2) Our distributors were not capable of handling new products in new categories.
(3) Management was not patient in building the category.
(4) We did not wait for the product test results of nine months prior to the launch.
I learned the hard way from these two failed launches.
1) We should always do our homework. Check and review your environment at every step of the way. There could have been new changes or new influences that were not there when you first started the project.
2) Roll up your sleeves and be willing to do the hard work. It pays.
3) Be patient. Some categories are slow-burn. You cannot build a sustainable business overnight.
4) The brand must be profitable, not just popular or a market leader. If it is not sustainable, then there is no sense keeping into the business.
5) Research is vital to any marketer. However, one must not use it as a crutch. We must also listen to our “gut feel” and business sense.
6) Develop the ability to “feel” the market or use gut feel. Imagine the plan in your head as it unfolds step by step. If you cannot imagine the plan, then there is something missing.
(The author is chair of marketing training firm Mansmith and Fielders Inc. Please visit www.josiahgo.com for the complete interview with Ma. Belen Fernando and other thought leaders.)