Abstract
This paper focuses on a case study of Cow Wow Cereal Milk, a business that sells milk flavoured with morning cereal that particularly appeals to kids between the ages of 5 and 12. However, the product deviated from its initial target demographic and became well-liked among millennials due to unanticipated media attention and prosperous sales on a college campus. The product’s strengths include distinctiveness, organic ingredients, and favourable publicity are positives. Inadequate market research and pricing strategy are examples of weaknesses. Targeting the collegiate market and increasing distribution are opportunities. However, competition and shifting consumer preferences are risks. The uniqueness, restricted availability, pricing issues, and viral publicity of the product are all examined in the marketing mix study (4Ps). To effectively address both target audiences, the action plan offers a hybrid strategy that includes market research, product differentiation, distinctive branding, specialized marketing campaigns, and competitive pricing. By employing this tactic, Cow Wow Cereal Milk can exploit its current appeal to youngsters and tap into the millennial generation’s burgeoning demand, ensuring long-term success in both markets.
Introduction
The case study revolves around Cow Wow Cereal Milk, a company founded by Christopher Pouy. The company caters to children between the ages of 5 and 12 by producing milk with breakfast cereal flavours (Grossmann, 2014). However, the company needed help in identifying the correct clients due to unanticipated media attention and prosperous sales on a college campus. Christopher Pouy came up with the concept of cereal-infused milk with intriguing flavours because he was inspired by his childhood experiences and wanted to make something he was enthusiastic about. Despite having excellent PR from publications like Jimmy Kimmel, Cosmopolitan, and BuzzFeed, the exposure was seen by people who were not kids.
Statement of Identified Problem
The identified problem is that Cow Wow Cereal Milk’s branding and marketing strategy was primarily intended for children aged 5 to 12, but the product quickly became very popular among millennials and college students. Due to this success with an unforeseen market, Mr Pouy began to doubt his target market and began to think about rebranding and repositioning the product (Grossmann, 2014). Therefore the problem is finding the correct market segment and developing a solid marketing plan to connect with the right customers.
SWOT Analysis
Strengths
Innovative and unique product: By merging milk with the flavours of breakfast cereal, Cow Wow Cereal Milk delivers a unique product that taps into the founder’s fondest childhood memories.
Organic and Responsible Ingredients: The use of organic cocoa powder, cinnamon, and 1 per cent organic milk and no artificial flavours or colours appeals to consumers and parents concerned about their children’s health.
Positive publicity: BuzzFeed, Jimmy Kimmel, and Cosmopolitan, among other media sources, unexpectedly and significantly publicized Cow Wow, raising interest in the brand.
Weaknesses
Poor Market Research: The company first focused on children between the ages of 5 and 12 without considering the tastes and spending power of their key consumers, parents.
Pricing Strategy: The product’s pricing was around 20 cents higher than that of flavoured milk from other companies, which may have hurt sales by discouraging budget-conscious customers.
Limited Distribution: Cow Wow’s initial local distribution was modest, which restricted its appeal and level of market penetration.
Opportunities
Targeting the College Market: The response has been well received at Santa Monica College, which points to potential success among millennials and college students who are already fans of the product. A new market might be accessible by rebranding and reformulating products to appeal to this group.
Increased Distribution and Wider Audience Through Kroger’s National Presence, there is a chance to improve sales at Kroger supermarkets.
Diversification of Packaging: Wide-mouth resealable bottles could be used as an alternate package to increase the product’s convenience and appeal.
Threats
Market Competition: It is difficult for Cow Wow to draw clients and increase market share due to competition from well-known brands like Organic Valley and Horizon Organic.
Consumer Preferences Are Changing: The target market’s preferences, particularly those of young consumers, might change quickly and without warning, which could cause variations in demand.
Resource limitations: The company’s inability to compete in the market may be hampered by its low resources and lack of expertise in specific pricing and marketing strategies.
Critical Analysis: Marketing Mix “4Ps”
Product
In order to appeal to children between the ages of 5 and 12, Cow Wow Cereal Milk is a novel Cow Wow Cereal Milk is a unique product that offers milk in various breakfast cereal flavours, designed to evoke childhood nostalgia and appeal to children aged 5 to 12. Christopher Pouy, the company’s founder, drew inspiration from his childhood recollections of sweet breakfasts to offer flavoured milk beyond the usual selections of chocolate, vanilla, and strawberry (Grossmann, 2014). Cow Wow employs 1 per cent organic milk to satisfy the needs of health-conscious parents, does not use artificial flavours or colours, and adds organic chocolate powder and cinnamon (Grossmann, 2014). Tetra Pak packaging gives the goods a longer shelf life without refrigeration. However, the unanticipated viral popularity did present some difficulties because millennials were the primary audience for the media coverage. Despite having initially intended to target children, the brand has found success among young adults and college students.
Place
Initially, Cow Wow Cereal Milk only had a small local customer base; some products were sold at Legoland, the Los Angeles Zoo, convenience stores, and petrol stations. Through media coverage and buzz on websites like BuzzFeed, Cosmopolitan magazine, and Jimmy Kimmel Live, the product saw unanticipated success. Following its first success, the business was able to secure shelf space in 900 Kroger stores to grow (Grossmann, 2014). However, due to resource limitations, Cow Wow could not provide discounts or coupons, which led to the product’s pricing being slightly more than that of rivals Organic Valley and Horizon Organic’s equivalent Tetra Pak flavoured milk offers. Additionally, the business successfully brought Cow Wow into the food court at Santa Monica College, which turned out to be a potential market for millennials.
Price
Cow Wow Cereal Milk confronts pricing issues as it caters to children and millennials, two separate markets. Because Cow Wow used 1% organic milk and stayed away from artificial components, the product initially cost around 20 cents more than comparable flavoured milk in Tetra Paks from competing manufacturers. Targeting millennials would necessitate cost-cutting tactics like switching to a nonorganic formula because it is said that this age group is less concerned with nutrition. Additional expenses would result from the product being rebranded, redesigned, and reformulated and marketing initiatives in campuses and convenience stores (Grossmann, 2014). Cow Wow would need to develop two separate marketing campaigns if it wanted to pursue the strategy of simultaneously promoting to both age groups. This would require tripling the marketing budget, costing an estimated $200,000. Target markets showed clear evidence of price sensitivity. Children, who represent younger consumers, maybe more price flexible, whereas health-conscious millennials may be willing to pay more for organic components.
Promotion
Cow Wow Cereal Milk gained unexpected publicity when it went viral after being featured on prominent media outlets like Jimmy Kimmel’s late-night show, Cosmopolitan magazine, and BuzzFeed. While the publicity created enthusiasm, it also drew a millennial audience that differed from the company’s intended audience, creating a dilemma for them. The marketing strategy initially catered to children with packaging showing kid-friendly cows and appealing tastes like Fruity Trudy and Chocolate Chip Cathy (Grossmann, 2014). However, the brand’s link with millennials prompted the idea of a complete rebranding to target this fresh market niche. Cow Wow would need to create two separate marketing campaigns to adopt the hybrid marketing strategy targeting kids and millennials. The goal of this strategy was to double the company’s marketing expenses. Social media and digital marketing are essential for brands to connect with millennial consumers. It may be possible to use social media sites like Instagram, TikTok, and Twitter to provide compelling content and work with influencers who cater to the interests of millennials. For its initial target audience of kids, Cow Wow might consider supporting school initiatives, partnering with kid-friendly events, or running ads on children’s TV networks. Parents, who ultimately decide what to buy for their children, would be attracted by a product’s organic and healthful qualities.
Action Plan/Conclusion
To address the challenges Cow Wow Cereal Milk faces, Christopher Pouy should consider adopting a hybrid strategy that simultaneously targets both age groups, mothers and millennials. Therefore, to make this method effective, the following actions should be taken:
Market Research: To fully understand the tastes, purchasing patterns, and demands of both target groups, moms and millennials, it is first necessary to undertake extensive market research (Alnoor et al., 2022). Finding out what appeals to each group and their preferred distribution routes will offer insightful information for future strategy creation.
Product Differentiation: Cow Wow Cereal Milk should adjust its product offerings to meet the unique needs of each target market. The business should release fresh, cutting-edge flavours that appeal to millennials while preserving the current flavours for kids. These can offer nostalgic cereal combinations or novel flavour experiences to appeal to the elder demographic.
Packaging and branding should be created separately for the two different target markets. The kid-friendly packaging with its brightly coloured cows and entertaining pictures can be kept around for kids. In addition, a contemporary, streamlined design should be used to complement millennials’ tastes and appeal to their sense of fashion and beauty (Alnoor et al., 2022).
Marketing Initiatives: Cow Wow should create separate marketing strategies to reach both target audiences properly. Considering millennials’ extensive use of social media, influencer marketing, and interactive events, these strategies can be used to engage them (Pride & Ferrell, 2019). Parenting blogs, school collaborations, and child-centric channels should be used to increase brand visibility and trust among mothers.
Pricing strategy: Cow Wow Cereal Milk should offer items at attractive prices to appeal to both target demographics. Cost-conscious mothers looking for value in their purchases can be drawn to sporadic discounts or bundle choices. Limited-edition and speciality flavours can be introduced to entice millennials and entice them to try novel and distinctive offers.
References
Alnoor, A., Khaw, K. W., Al-Abrrow, H., & Alharbi, R. K. (2022). The hybrid strategy on the basis of Miles and Snow and Porter’s strategies: An overview of the current state-of-the-art of research. International journal of engineering business management, 14, 18479790221080214.
Grossmann, J. (2014). A sweet breakfast memory that connects with the wrong market.
Pride, W. M., & Ferrell, O. C. (2019). Marketing. Cengage Learning.
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