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Dairy Industry S.W.O.T. Analysis

Updated: May 1, 2020

Marketing S.W.O.T. Analysis - 29 Design Studio Research Assignment

By: Eileen Lent



Introduction:

There are several challenges faced by the New York State Dairy Industry. Change in consumer taste, a move to non-dairy alternatives, misperceptions involving nutritional quality and impact, and the sophisticated and demanding nature of Millennials and Gen Z spending power. Dairy companies need to understand, connect, and energize current and future consumers.


This report reflects the research, analysis, and evaluation that has been conducted to determine the landscape of the dairy industry in New York State, particularly focusing on Upstate New York dairies and creameries. This analysis of Upstate New York’s dairy industry will be based on its Strengths, Weaknesses, Opportunities and Threats (SWOT).




SWOT ANALYSIS:






GENERATIONAL SHIFT:

Millennials and Gen Z have a combined spending power of over $3 trillion dollars. The two generations are hyper-connected through the utilization of digital, online, and mobile technology. In developing a marketing strategy for New York dairy promotions, there needs to be a strategic approach to highly target these demographics. Below is a visual representation of media consumption by Gen Z and Millennials.








NEW YORK INDUSTRY OVERVIEW:


Under the umbrella of the New York State Department of Agriculture Markets there are multiple marketing and promotional campaigns focused on promoting dairy consumption.

Examples include:


  • All-Star Advocates: to advance advocacy skills, generate demand for people going into the field

  • Milk for Health on the Niagara Frontier: $460,000 advertising budget, a generic website, limited social media (1-star rating on Facebook), bland, not strategic and does not use any sourcing.


The existing campaigns and promotions developed and orchestrated by the New York Dairy Agricultural board are not effective and do not reflect the powerful buying demographics of Millennials and Gen Z. The existing campaigns are stagnant as they utilize websites and general information. Campaigns to market dairy need to be more dynamic with digital advertising, social media campaigns, and influencers.


NEW YORK SMALL-SCALE DAIRIES SNAPSHOT:


This section contains brief overviews of small-scale dairies in the Upstate New York dairies.

Sunset View Creamery

Sunset View Creamery is a small-scale creamery located in Odessa, NY. This family-owned creamery offers fresh dairy products, cheeses, raw milk, cheese and wine pairings, and more. The creamery markets these products under the brand of Sunset View Creamery. Sunset view sells its products through their very own farm store, online market, and specialized distribution channels. One event they partake in annually is the Finger Lakes Cheese festival. “The exceptional care we take in raising, feeding, and handling our cows results in consistently high quality milk which translates into exceptional tasting farmstead cheeses” (Sunset View Creamery). Sunset View Creamery wants its customers to appreciate where their food comes from.


Byrne Dairy

Byrne Dairy is located in Syracuse, NY. Byrne Dairy works with a number of family owned farms in the New York area to produce dairy products. Farmers include: Hourigan Family Dairy, Silver Spring Farm, The Elmer Richards & Sons Farm, Jerry Dell Farm, Waltz Farm, McMahon’s Farm, Antique Valley Farm, Doubledale Farm, and Cowles Dairy Farm. For generations, Byrne Dairy has been the relied upon co-packing partner for Extended Shelf Life (ESL) milk and yogurt. Products include: Extended Shelf Life milk and yogurt, Fresh Dairy, Ice Cream, and Cultured products.

Upstate Niagara Cooperative

Upstate Niagara Cooperative is located in Buffalo, NY. It is one of the largest and most stable dairy cooperatives in the United States. This farmer-owned cooperative consists of over 300 family-owned. Products include: milk, cream, butter, yogurt, half and half, juices, eggnog, cottage cheese, sour cream, ice cream mix and chip dips.

Stoltzfus Family Dairy

Stoltzfus Family Dairy is located in Vernon Center, NY. All of the Stoltzfus Family Dairy products are sourced from three family farms within 10 miles of the plant in Vernon Center. Products include: All natural yogurt, Cheese curds, Latte and Mocha Latte, and Farmstead Cheeses.

Lively Run Dairy Farm and Creamery

Lively Run Dairy Farm and Creamery is located in Interlaken, NY. This creamery is one of the longest operating commercial goat dairies in the country. Lively Run Goat Dairy prides itself on award winning cheese and the taste of their goat and cow cheeses.



BUILDING FOR THE FUTURE:

The following are preliminary ideas and concepts to engage consumers (highlighting Millennials and Gen Z) to promote the increased consumption of dairy products.


  • Establish a consistent message to be delivered across all distribution channels

    • High profile influencers i.e. Cardi B, Rob Gronkowski, Ali Marpet (HWS Grad) etc.

  • Utilize digital marketing campaigns

    • Twitter, blog posts, podcasts, Instagram, Facebook, TikTok etc.

  • Create highly credible nutritional reports that are focused on fitness and dairy consumption

  • Establish and active strategic partnerships with high profile fitness brands

    • i.e. Chocolate milk tie in with planet fitness post workout campaign

  • Diversify and partner with new and innovative products and promotions

    • Incorporate A2 Milk campaign into the overall strategy

  • Promotional tie in with new products

    • NesQuino personal healthy superfoods

  • Define the brand with comprehensive marketing and media campaign

    • Logo development tag-line and messaging

  • Step by step Public Relations campaign

  • Smaller brand campaigns or strategies

    • Millennials and Gen Z have higher trust for smaller brands.


There is a tremendous opportunity to create excitement and a “buzz” around the dairy industry.












Works Cited


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