Rainbow Evaporated Milk: Creating a storm in a tea cup

Rainbow Evaporated Milk: Creating a storm in a tea cup

Prior to the oil boom, milk supply was limited in the Gulf region. Friesland introduced Rainbow evaporated milk as 'drinking milk' for it was easy to store and transport. However, with greater supply of fresh milk and aggressive marketing support by Nestle (Nido), Borden Foods (Klim) and New Zealand Diary Board (Anchor) in the 80's, the evaporated milk category started declining. The challenge for Rainbow was to identify a clear 'raison d'etre' and reverse the decline in volumes. The case shows that advertising investment over six years for Rainbow paid for itself 2.8 times over