Group Assignment Milo’s Market Expansion Strategy In Vietnam.pdf

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<b>PRINCIPLES OF MARKETING</b>

<b>GROUP ASSIGNMENTMILO’S MARKET EXPANSION</b>

<b>STRATEGY IN VIETNAM</b>

<b>NAME: Bui Nhat Hieu – SS171178Nguyen Le Phuong Uyen – SS11038Nguyen Tan Nhat Quang – SS171191Nguyen Thien Thanh Trung – SS171190Lê Bá Phúc-SS171180</b>

<b>Subject: Principles of Marketing (MKT101)</b>

<b>Lecturer: Vo Thi Minh Phuong</b>

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<b>Table Of Contents</b>

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<b>PRINCIPLES OF MARKETING</b>

I. Overview of VietNam dairy market

A big prospective «economic pie» with more than 97 million people isnow being contested by more than 50 dairy enterprises in the Vietnamesedairy sector. When compared to other Southeast Asian nations, Vietnam'sdairy business is growing at a rather rapid rate. As of 2017, Vinamilk hasa market share of 48.7% of the milk market, followed by Dutch Ladyand Nestlé .

II. About Nestlé

Founded in Penang, Malaysia, as the Anglo-Swiss Condensed MilkCompany in 1912, Nestlé later grew and extended to Kuala Lumpur. Upto this point, Nestlé had 6 distribution agents across the world andoperated 8 sizable plants for the production of its goods. As a publicbusiness with several companies and websites in 104 countries, NestléSA currently generates 71 billion USD in annual revenue.

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III. About Milo

With milk, chocolate, and malt as its main components, Milo is anAustralian beverage product made by Nestlé and created by ThomasMayne. This product was initially launched in 1994 as milk powder andhas since spread to numerous nations, including Malaysia, Singapore,China, Japan, India, Vietnam, etc. The brand name is taken from thecorporate name. The majority of the powdered milk market share inMalaysia is held by Milo milk, making Malaysia the nation thatconsumes the most Milo globally. Similar to places like Singapore,Vietnam, and India, Milo has established itself as a staple beverage inevery household and has risen to become one of the top 10 dairy brandsin the world, securing its position as a market leader.

Milo has been actively incorporating minerals into their products since2010. Additionally, the company actively introduced new items andaltered the looks of existing products

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<b>PRINCIPLES OF MARKETING</b>

IV. Target market analysis

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<b>PersonaThe fit of thesegment with the</b>

<b>brand’s identity</b>

<b>Size and GrownStructuralattractiveness</b>

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<b>PRINCIPLES OF MARKETING</b>

Bao Ngoc Genz is instantlyaware of the targetmarket for theproduct which iskids and youngadults

Particularly youngpeople like BaoNgoc aged 6 to 14since children atthis age arc aremore active it isimportant tosupport theirgrowth and activity.⇒ Suitable

About 15.5% ofchildren aged 6-14 inVietnam need topromote the process ofdevelopment andgrowth. This agegroup represents boththe largest prospectiveclient base and cangrow to be brandloyalists.=> Large segment

Milo is a companythat makes aninvestment insocial mediamarketing parentswill have asignificant indirectimpact.

Milo maytherefore drawparents throughmarketingtechniques.=> Easy tocommunicate(indirect), Manycompetitor

Quoc Bao Milo gives kids thenutrients they needto thrive need to getthrough ademanding day ofwork or school.Customer QuocBao belongs to theGenZ generation.Milo will be a goodoption for this agegroup to rechargefor a demandingworkday.=> Relativelysuitable

20% of the

Vietnamese populationis now GenZ-aged,and this figure appearsto be increasing yearafter year. This groupof people spendsroughly 2,500.00VND each month ondining and shopping.However, the GenZgeneration frequentlyinnovates on commonitems to preventmonotony, so they arenot steadfast brandsupporters.=> Medium segment

Social networks,in particular, havegreatly advancedcommunicationtools nowadays.The GenZgeneration isknown for itspropensity tospend a lot of timeon social media.Because socialnetworks are acomfortable andconvenientlocation topurchase. As aresult, usingwidely used andsocial media

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methods on socialnetworks, it isextremely simplefor people toconnect with thebrand.=> Easy tocommunicate(direct), manycompetitorJohn Tran A product for

children and theGen Z crowd iscalled Milo. JohnTran is a wonderfulexample of the GenX generation; he isthe one whoconsistently favorsexpensive goodsthat are alsooutstanding inquality. However,Milo's productsseldom satisfyeverydaynecessities andaren't particularlyappropriate for thisage.

=> Not suitable

Gen Xers make upJohn Tran'sgeneration. Withnearly 35% ofVietnam's populationbelonging to thisgeneration, it is thebiggest generation.However, they aredevoted to the brandsthey have used andfrequently purchaseitems like functionalmeals to safeguardtheir health.Milo-branded goods.=> Very smallsegment

Reaching peoplein this market ischallenging forcompanies. Due totheir tendency tostick with brandsthey have used inthe past and otherconsumptionhabits, Vietnam'smarket share isquite small.=>Hard tocommunicateMany competitor

V. Brand extension and product strategy

<b>Brand extension and product strategy</b>

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<b>PRINCIPLES OF MARKETING</b>

In addition to the younger generation and low-to high-income consumerswho enjoy trying out new items, youngsters aged 6 to 14 make up theMilo brand's target market. The new product will not only be a nutritiousbeverage produced from organic barley, but it will also include less sugarto help fight obesity. In addition, the new product switches out plasticstraws for paper ones in an effort to reduce environmental pollution andeliminate hundreds of tons of plastic garbage.

<b>Brand elements</b>

The name of the product, «Milo-Low Sugar» encapsulates all of itsadvancements. The brand name «Milo» is followed by the product's newfeature, «Low Sugar,» which is the ideal way to describe the advantagesand functioning of the new item. Additionally, paper straws bearing thebrand's intended environmental conservation message have totally takenthe place of plastic straws.

VI. Competitor and positioning analysisCompetitor

The dairy industry in Vietnam is expanding and thriving year after year.● Direct competitors

When discussing Milo's rivals, it's hard to ignore Ovaltine, whoseadvertising slogans are entirely at odds with Milo's. The Swiss companyFrieslandCampina has the Ovaltine brand of cocoa barley drink, which isin the same healthy drink category for kids. Ovaltine is a competitor thatis younger than Milo in age.

● Indirect competitors

Baby milk companies like Vinamilk and Dutch Lady, which aresuccessful in the Vietnamese market, are some of Nestlé's indirect rivals.These two businesses have enjoyed a warm reception from consumers,and they currently have the greatest market share for dairy products inVietnam.

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Milo, though, is presently up against some fierce rivalry from otherbrands. Customers have a lot of options, so businesses must have adistinct positioning plan that is acceptable for them and gives them anedge over rivals.

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Because of its distinctive ingredients and chocolate flavor, Milo Milk isalready well known. Milo has produced a key characteristic and benefitfor the quality of the product line that is rich in nutrients and energy.Compared to other dairy products, Milo milk products have a very

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unique design. Products displayed in the booth that have blue as theirmain colour stand out from other products.

The image of lively youngsters doing sports is prominently shown on thegreen backdrop of the product, which also has fundamental andimportant product information for consumers, such as the expirationdate, primary components, and product name, to help them understand,assess, and make purchases. In order to give customers the best possibleexperience, the product's design is also quite varied in terms of itsinternal components and functionalities. Additionally, the firm is verysensitive when introducing Milo milk in cans so that the rucksack won'tdeform like a paper box when placed in confined spaces like a briefcase.In the meantime, Milo powdered milk products are packed for ease ofuse, cost effectiveness, and storage.

Additionally, Milo draws greater notice when it modifies productspecifics like straws. Many individuals have been so intrigued by thenovel concept of «4-way straws» that they are unable to control theircuriosity and must purchase the product right away. Milo, on the otherhand, is a company that consistently follows industry trends. Theproduct's packaging is also given attention throughout the design phaseto facilitate convenient purchase, usage, and transportation.

The product's packaging excites customers while still being practical andenvironmentally friendly. Because of this, the majority of productpackaging materials use tin cans or cardboard that take a long time todisintegrate but can still be recycled. Canning milk products will bepacked in cartons of 48 boxes, or 12 packs, in batches of 4 boxes . Adesign like this may be quite beneficial for the product's transportation,storage, and protection.

The Milo product range is targeted towards parents of childrenbetween the ages of 6 and 14 who have incomes ranging from lowto high.

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<b>PRINCIPLES OF MARKETING</b>

To reach customers, Nestlé Milo has prioritised using indirectdistribution channels. In order to significantly lower storage andsorting expenses across the nation, Milo works with shops thatoperate in huge chains, including Lotte, Go, Co-op Mart,7-eleven, and GS25, among others. Milo has a set of rigid criteria

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whenever an intermediary agent is chosen as the primarydistribution route

VIII. Conclusion

Both Nestlé and the Milo brand, in particular, have had great successwith their marketing campaigns. The majority of product lines are of safeorigin, very useful, and guarantee consumer health. Additionally, Milodairy product lines have readily asserted their place in the Vietnamesedairy sector and been brought closer to customers thanks to the rightmarketing mix approach

IX. Reference

1. Anon., 2018. BrandVIETNAM. [Online]Available at:

[Accessed 30 6 2022].

2. Anon., 2018. doanhnhasaigon. [Online]Available at:

[Accessed 29 6 2022].

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