Issue:

In the lead up to 2016, record numbers of Fonterra farmers were selling their shares in the co-operative and switching to competitors. With an average farm’s milk supply worth over $3 million to the co-op, Fonterra needed to win these lost farmers back.

Inspiration: Dairy is more than a job or a business, it’s their life’s work

The strategic leap was to abandon rational business messages and appeal to farmers’ hearts. This approach reflects the significance of their life’s work and communities.

Idea: What’s the story?

A personalised message focuses on their dreams and not Fonterra’s goals. This was a totally personalised approach ‘Better Together’ asked; ‘Does your dairy company do for you, what Fonterra is doing for its members? Tell us how you feel about that?’

Impact

The objective was to win back 5% of dairy farmers lost over the previous 5 years in year one. Within six months 160% of target for the 2017/18 agreed to return.

These farms will deliver 2.2 million kg of milk solids to the co-operative, so NZ$13M cash flow returned to the co-op. ROI for every $1 spent on this campaign is 342 : 1.

Conversion of 2.2 million kg of milk solids into litres is approx. 25 million litres. Multiplied by $1.10 revenue per litre delivers a return of NZ$27.8M for this activity.