Dairy Processing - September/October 2022 - 50

SUPPLY CHAIN
Optimized
strategies
Dairy companies hone in on omnichannel opportunities.
by Kristen Putch | kputch@sosland.com
O
ver the past few years, the dairy industry has proven
its resilience and ability to meet consumer needs.
One trend that will continue to reshape the dairy
industry into the future is the Business to Consumer (B2C)
model, with more dairy manufacturers taking the initiative
to offer their products directly to end consumers. Consumer
behavior shaped by digital and social media has strongly
promoted the development of the B2C model, which was
further accelerated by the pandemic.
The digital and e-commerce revolution has drastically
changed how dairy brands are reaching their customers.
According to Digital Commerce 360 and the US Department
of Commerce, in just eight weeks at the start of the COVID19
pandemic in 2020, US e-commerce retails sales sped up
penetration by three-plus years, reaching 27% penetration by
the end of April 2020.
" E-commerce is a smart growth strategy for the dairy
industry, " said Beau Hayden, vice president of insights, Dairy
Management, Inc. (DMI) during a webinar with Midwest Dairy
Association. " It's really about evaluation and how behaviors
changed over the course [of the pandemic]. Eighty-four
percent of folk purchase food or beverages online, compared
to 76% pre-COVID. "
SMART GROWTH STRATEGY
According to Hayden, pricing is still a trigger for online
shopping in particular because consumers can go from one
retailer to another to compare prices, as well as shipping and
delivery information.
" The price is still a key decision factor and we'll see that
especially with Gen Z, where we're seeing they do compare
prices for one product across multiple websites or opening
multiple tabs. "
The customer journey has also changed dramatically with
the rise of e-commerce, a lot of which rides on optimized,
detailed product display pages and encouraging customer
advocacy with online reviews, link sharing and social media
posts about the products.
Hayden discussed his previous work with an unnamed
dairy brand and how the company was able to increase its
e-commerce engagement exponentially by optimizing the
product pages and imagery.
" They were humming along decent from an e-comm
perspective, " he said. " Once we engaged with them and
updated their product content and imagery - basically their
50 SEP-OCT 2022 | DAIRYPROCESSING.COM
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Dairy Processing - September/October 2022

Table of Contents for the Digital Edition of Dairy Processing - September/October 2022

Dairy Processing - September/October 2022 - Intro
Dairy Processing - September/October 2022 - 1
Dairy Processing - September/October 2022 - 2
Dairy Processing - September/October 2022 - 3
Dairy Processing - September/October 2022 - 4
Dairy Processing - September/October 2022 - 5
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