How to boost fresh milk consumption in Singapore? The key to driving higher value sales is by increasing the purchase frequency of smaller pack products. In Singapore, F&N has launched a marketing campaign to encourage consumers to switch to the smaller 1-litre pack.
|Cold Storage Supermarket – the 2-litre family pack is quite popular in Singapore|
F&N is encouraging shoppers to “buy two one-litre packs of fresh milk instead of a two-litre bottle.” It cites the Agri-Food and Veterinary Authority of Singapore’s (AVA) guidelines that fresh milk is best consumed within three days of opening. Since Singaporeans lead a busy urban lifestyle, the company claims the smaller pack size is ideal for the busy lifestyle as the milk can be easily consumed freshly within three days.
The other plus point for going for smaller pack is smaller pack size is more expensive on a per unit basis than the bulk pack. The shift to a smaller pack size can potentially boost the underlying sales value.
|Marigold HL 2 litre pack launched in Malaysia in September 2014|
Across the causeway in Malaysia, instead of encouraging consumers to purchase the 1-litre pack, F&N launched a 2-litre family pack HL low-fat milk during the second half of 2014. The company is encouraging Malaysian consumers to drink more fresh milk and one of the ways to ensure fresh milk appears affordable is selling it in a larger pack.
|Tesco Online Malaysia – 18 May 2015. Promo price|
|Marigold HL milk line up in Malaysia|
So we have two different developments. In a more mature fresh milk market like Singapore, F&N is shifting away from the bulk pack strategy to smaller pack to encourage higher purchase frequency to drive value growth. In Malaysia where the consumption of fresh milk on a per capita basis is lower than Singapore, the same company uses the 2-litre pack strategy to provide more value to customers to spur higher volume consumption.