Shatto Milk Co.: Profiting by Differentiation



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Code : COM0064

Year :
2005

Industry : Food, Diary and Agriculture Products

Region : USA

Teaching Note:Available

Structured Assignment :Not Available

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Abstract: Post 1970s, many small dairy farms in the US were struggling to keep up with their dairy operations because of declining milk prices and intense competition from the larger corporate dairy farms.

The lower price levels had resulted in the closure of more than 50% of the small dairy farms. In such a scenario, Robert Shatto of the Shatto Milk Co. decided to differentiate his milk from corporate dairies' milk.

The strategy was to sell milk just like the milkman of yesteryear, farm-fresh milk in glass bottles. His revenues have risen by more than 70% since he implemented the new strategy in 2003.

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Pedagogical Objectives:

  • To discuss the problems faced by the small dairy farms in the US and the differentiation strategies adopted by Shatto Milk Co.
  • To discuss the challenges faced by other smaller farms in emulating the success of Shatto Milk Co.


    Keywords : Shatto Milk Co, Robert Shatto, Small dairy farms, Corporate dairy farms, Product differentiation, Premium pricing, Dairy co-operatives, Marketing Strategies Case Study, Hormone-free milk and dairy products, Organic milk, Consumer and buyer behaviour, Niche marketing, Logistics of dairy operation, Differentiation strategies, Organic dairy products, Innovative packaging

    Contents :
    A Difficult Period for the Small Farms
    Shatto Milk Co.: Milking its Past
    Challenges in Emulating the Experience


    Case Introduction >>


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