This paper concerns itself with decreasing milk consumption in the Port Elizabeth area and how the marketing mix influences marketing decisions. Personal interviews were conducted in different supermarkets to investigate consumer perceptions of milk, the brand purchased and how consumers use milk. The study indicated that people purchasing milk were very price conscious. Respondents showed almost no brand loyalty. However, respondents indicated that they were aware of the health benefits of drinking milk, although most used milk predominantly to whiten their tea and/or coffee. A comparison of the findings of this study to those of Geils (1981) and Hanekom (1990) indicates that the milk industry has the same problems in 1999 as it did in 1990 and in 1981. Findings reflect the unhealthy perception people have about milk. Many regard it as a child’s drink and others perceive it as fattening. Decreasing consumption figures indicate that there has been little effort or success from the dairy industry to change consumer perceptions of milk. Figures indicate that consumption of milk may be close to zero in 2015, if marketers of dairy companies do not improve the image of milk. However, a considerable amount of investment by overseas companies in Port Elizabeth dairies may increase marketing activities in the future. This paper begins with an overview of the major competitors in the Port Elizabeth area, highlighting their strengths and weaknesses. The importance of selecting the appropriate market mix for milk is discussed by explaining each mix element, namely, product, distribution, promotion and price. Distribution involves the delivery of the perishable product to outlets in the shortest space of time after production. Careful and efficient planning of refrigerated warehousing, transport and delivery services all indirectly contribute to the freshness and quality of milk. Promotion is one of the most important elements that can be used to change consumer perceptions of milk. It is necessary to select the correct message for the specific target group when advertising. Product benefits like milk’s purity, or naturalness, should be focused on rather than its creaminess and richness. Price constitutes the fourth element of the marketing mix. Price in the narrowest sense, is the amount of money charged for milk. The milk industry is intensely price sensitive which often results in price wars among competitors. Most consumers purchase the cheapest brand of milk indicating little brand loyalty, especially among top-end consumers.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:nmmu/vital:10827 |
| Date | January 1999 |
| Creators | Smith, Natalie Heather |
| Publisher | Port Elizabeth Technikon, Faculty of Management, Business Administration |
| Source Sets | South African National ETD Portal |
| Language | English |
| Detected Language | English |
| Type | Thesis, Masters, MTech (Management) |
| Format | x, 90 leaves, pdf |
| Rights | Nelson Mandela Metropolitan University |
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