Hardship Conversations in Milk Category

In the milk category "Value and Quality Perception" has been questioned by the consumers due to increase in prices and has resulted in changes in their purchasing behavior.

eBrandValue Marketing Operations
eBrandValue Marketing Operations
May 10, 2022
Hardship Conversations in Milk Category

“Pricing”, one of the cornerstones of marketing,  is an important factor that determines the value of the relevant product and the income it will provide to a business. Price is also an important factor in  consumers’product choices and purchasing actions. We have analyzed how pricing is perceived and how it affects the satisfaction and loyalty of consumers in the long term.

Milk category saw price increases of 45%-50% in December'21 which penetrated 19% of the social media driven conversations in the soft drinks sector and the subsequent price transitions remained on the consumers’ agenda for a while.


*Mindshare: The ratio of unique authors creating related content to the overall number of unique authors creating content in the industry during the specified time frame

The price perception of consumers is shaped by "rational and psychological" factors. Rational factors show the value and quality of the product. Price increases in the milk category include statements like the product is a "basic food" product and exorbitant price increases have been replaced by the belief that "highly priced product is of higher quality". Some of these expressions are; “milk not raki”, “dairy products are luxury foods ”, “alcoholic beverages or dairy products?”

Category affinity analysis, on the other hand, show that the milk category weakened on the basis of "price talk" against other categories. The following switching analysis shows the category's consumer gain and loss versus other categories as a daily average. If the category is in the light gray area in the left graph, it means that it is in a strong position, and if it is in the dark gray area, it means that it is in a weaker position.

As seen in this analysis, the role of pricing on consumer purchasing behavior is quite strong and impacts the behavior of the consumer positively or negatively.

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