assignment principles of marketing marketing plan for milo

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PRINCIPLES OF MARKETING

MARKETING PLAN FOR MILO

Sơn T. NguyễnLuân K. Nguyễn

Trung M. VũKhang M. Nguyễn

Nghi G. CổÁnh N. TrầnMKT101: Marketing PrinciplesInstructor: Nguyễn Minh Ngọc Quỳnh

March 18, 2023

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MARKETING PLANMILO

Executive summary

1. Current position

- Milo is a popular chocolate malt drink that has gained a strong foothold inmany countries around the world. Its delicious taste and unique nutritionalbenefits have made it a beloved beverage for people of all ages, particularlychildren who enjoy its rich, chocolatey flavor.

- With its global expansion, Milo has become one of the most popular drinks inmany countries. In Singapore, for example, Milo ranked among the top 10most popular drinks in 2017, a testament to its widespread appeal. In othercountries such as India, Australia, and Vietnam, Milo has also gained asignificant following and ranks highly in terms of popularity.

- The success of Milo has been recognized by the industry, as the brand haswon the prestigious Apac Effie Awards two years in a row, a testament to itsmarketing and branding excellence.

- In addition to its popularity and accolades, Milo has also earned the supportand trust of many customers, particularly children. The drink has been

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recognized for its ability to promote height and intelligence, making it a go-tochoice for parents looking to provide their children with a nutritious and tastydrink.

Overall, Milo's expansion and success are a reflection of its appeal to peopleof all ages and its ability to deliver on both taste and nutrition. Whetherenjoyed hot or cold, Milo is a drink that has won the hearts of millions ofpeople around the world.

2. Key issues

- Milo is a well-known nutritional supplement that is commonly recommendedfor breakfast to provide energy for daily activities. Its unique combination ofchocolate and malt flavors, along with its high nutritional content, make it adelicious and healthy option for those looking to start their day off on the rightfoot.

- In addition to its use as a breakfast supplement, Milo is also known forproviding energy during sports competitions and playtime. The brand haslaunched successful campaigns such as "Tiếp sức giờ ra chơi," whichencourages children to drink Milo before engaging in physical activities toensure they have the energy they need to perform at their best.

- Despite its popularity as a breakfast supplement and sports drink, theafter-school period has been overlooked as a key time to promote the use ofMilo. This time slot provides a great opportunity to convey messages aboutthe importance of providing energy to children after a long day of school andextra-curricular activities. By effectively leveraging this time slot, Milo canincrease its sales, reach more customers, and solve their problems.- To take advantage of this opportunity, marketers should focus on developing

creative and compelling campaigns that highlight the benefits of drinking Miloduring the after-school period. This could include showcasing how Milo canhelp children stay focused during homework time, or providing tips on how tomake healthy and delicious after-school snacks using Milo as an ingredient.- By effectively leveraging the after-school period, Milo can further cement itsposition as a go-to nutritional supplement for children and parents alike. Withits delicious taste, high nutritional content, and proven track record forproviding energy, Milo is well-positioned to become an even more belovedand trusted brand among its target audience.

Corporate Strategy

1. Corporate mission/ objectives

- Rashid Qureshi, the general manager of Nestle Vietnam, recently delivered aspeech highlighting Nestle MILO's mission to promote a nutritious lifestyleand a passion for sports among children. In his speech, Qureshi emphasized

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the importance of instilling values such as respect and equality in children'sattitudes towards sports, which would contribute to their overall happinessand health.

- Qureshi's speech underscored Nestle MILO's commitment to providing adrink that not only supports a healthy diet but also encourages children tolead an active lifestyle, promoting both physical and mental well-being. Thebrand's focus on promoting sports and an active lifestyle is reflected in itssuccessful campaigns such as "Tiếp sức giờ ra chơi," which encourageschildren to drink Milo before engaging in physical activities.

- By emphasizing the importance of instilling values such as respect andequality in children's attitudes towards sports, Qureshi's speech reflectsNestle MILO's dedication to promoting a holistic approach to health andwellness for children in Vietnam. The brand's mission is not just aboutproviding a nutritious drink but also about helping children develop healthyhabits that will last a lifetime.

- In addition to promoting a healthy lifestyle, Nestle MILO has also beenactively involved in community initiatives aimed at promoting education andsocial welfare. For example, the brand has launched campaigns aimed atproviding clean drinking water and basic education to underprivilegedcommunities in Vietnam.

To sum up, Rashid Qureshi's speech highlights Nestle MILO's commitment topromoting health and wellness among children in Vietnam. By fostering apassion for sports and promoting healthy habits, Nestle MILO is not justproviding a drink but also contributing to the development of a healthier andhappier generation.

2. Summary of overall position and corporate strategy

- Nestlé SA is a multinational food product manufacturer based in Vevey,Switzerland, and operates factories in more than 80 countries. The company'sproduct line includes condensed and powdered milk, baby foods, chocolates,candies, instant coffees and teas, soups, seasonings and condiments, frozenfoods, ice cream, and bottled water. In addition, Nestlé also producespharmaceuticals.

- Among Nestlé's many products, Milo is one of its most popular brands. Milo isa chocolate malt beverage that can be prepared with hot or cold milk or water.The brand is particularly popular in Asia, Africa, and Oceania and is a"must-have" product for food service operators in these regions. Loved andtrusted by parents and kids alike, Milo products offer essential vitamins andminerals.

- The brand is named after the legendary athlete Milo of Crotona, Italy, whowon six Olympic championships and was known for his miraculous powers.Milo was first researched and produced by Thomas Mayne at the RoyalEaster Show in New South Wales, Australia in March 1934. Since then, Milohas been available in more than 40 countries around the world.

- In 1994, Nestlé started importing Milo powder for children into Vietnam, andafter four years, the company inaugurated a Milo powder factory in Dong Nai

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to meet the increasing demand and taste of Vietnamese consumers. NestleMilo has been in the Vietnam market for more than 20 years and is aprestigious brand that leads in quality and market share in the cocoabeverage sector for children between 6-12 years old.

- Milo is committed to collaborating with parents in nurturing their children tounlock their full potential. The brand recognizes that academic achievementalone is not sufficient for a child to succeed and emphasizes the importanceof instilling life skills and values in children. By providing a nutritious anddelicious beverage, Milo aims to support parents in promoting a healthy andactive lifestyle for their children.

In conclusion, Nestlé SA's commitment to quality and innovation is reflected inthe success of its brands, including Milo. With a long history of providingdelicious and nutritious products, Nestlé has become a trusted householdname in many countries around the world.

External and Internal Analysis

1. Overview of market

- Milo's success in Vietnam can be attributed to a combination of factors,including Nestle's marketing efforts, strong distribution network, commitmentto corporate social responsibility, versatility, and alignment with consumertrends towards health and wellness.

- In addition to Nestle's marketing efforts, Milo's popularity in Vietnam can alsobe attributed to its strong distribution network. Nestle has establishedpartnerships with various distributors and retailers across the country toensure that Milo is widely available in both urban and rural areas. This hashelped the brand to reach a wider consumer base and build brandrecognition.

- Another key factor that has contributed to Milo's success in Vietnam is thebrand's commitment to corporate social responsibility. Nestle hasimplemented various initiatives to support the local community, includingproviding nutritional education and promoting physical activity amongchildren. This has helped to build trust and loyalty among consumers whoappreciate the company's efforts to promote health and wellness.- Moreover, Milo's popularity in Vietnam can also be attributed to its versatility.

The drink can be prepared with hot or cold milk or water, making it aconvenient and adaptable option for various occasions. This versatility hasmade it a popular choice not only for children, but also for adults who enjoythe drink as a quick and easy source of energy and nutrition.

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2. Competitor analysis

- In the highly competitive Vietnamese beverage market, Milo has managed tomaintain its position as a leading brand by focusing on innovation, marketing,and distribution strategies. While there are many competitors in the market,Milo has continued to offer unique products and flavours that cater to thediverse preferences of Vietnamese consumers.

- One of Milo's key competitors is Ovaltine, which is also a popular chocolatemalt drink with high nutritional value. However, Milo has managed todifferentiate itself by introducing new flavours and packaging formats thatappeal to changing consumer preferences. Milo has also invested inmarketing and advertising campaigns to maintain brand awareness andloyalty among its customers.

- Another competitor that Milo faces is Vinamilk, a long-standing brand trustedby many families for their daily milk consumption. To stay ahead of thecompetition, Milo has focused on providing quick energy and nutrition, whichis an area where Vinamilk is not as strong. By emphasizing its nutritionalvalue, Milo has positioned itself as a drink that not only tastes good but alsoprovides essential vitamins and minerals.

- TH True Milk is another strong competitor that has a high market share inVietnam. To compete with TH True Milk, Milo has focused on providingenvironmentally friendly products, which is an area where TH True Milk hasnot yet made significant investments. Milo's commitment to sustainability hasresonated with many Vietnamese consumers who are becoming increasinglyaware of the impact of their purchasing decisions on the environment.- In addition to these competitors, Milo has faced challenges from local and

international beverage brands that offer similar products and flavours. To stayahead of the competition, Milo has focused on expanding its distributionnetwork to reach more consumers in different regions of Vietnam. The brandhas also leveraged customer data to better understand consumer preferencesand needs, which has helped it develop more effective marketing andadvertising campaigns.

- Milo has successfully navigated the competitive Vietnamese beverage marketby focusing on innovation, marketing, and distribution strategies. By offeringunique products and flavours, emphasizing its nutritional value andsustainability, and expanding its distribution network, Milo has managed tomaintain its position as a leading brand in Vietnam.

3. Future trends

- In the future, Milo is likely to continue to focus on collecting and utilizing customerdata to better understand and cater to the preferences of its consumers. With theincreasing popularity of digital platforms, Milo may explore new ways to collectcustomer data, such as through social media and mobile apps. By gathering moredetailed information about their customers, Milo can gain insights into theirpreferences and tailor their products and marketing campaigns accordingly.

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- Another trend that Milo may prioritize is the shift towards more environmentallyfriendly products. As sustainability becomes an increasingly important concern forconsumers, Milo may look for ways to reduce their environmental impact, such asusing more eco-friendly packaging materials or sourcing their ingredients fromsustainable and ethical sources. This can help to appeal to consumers who areincreasingly conscious of their environmental footprint and make Milo a moreattractive choice for those looking for more sustainable beverage options.- Providing quick energy and nutrition is likely to remain a key priority for Milo in the

future. As busy lifestyles and on-the-go consumption continue to increase inpopularity, Milo may look for ways to make their products even more convenient andaccessible to consumers, such as through single-serve packaging or new productformats. Additionally, Milo may continue to explore ways to enhance the nutritionalvalue of their products, such as by adding more vitamins and minerals or reducingthe sugar content. By staying ahead of these trends and continuing to innovate, Milocan maintain its position as a popular and trusted brand in the Vietnamese market.

4. SWOT

- Strengths:

+ Milo has a high brand value and reputation: It has been in existence since1934 and has been available in Vietnam for over 17 years. The brand has asolid market position and has been popular among millions of childrenglobally for a long time. Milo's marketing strategies have also contributedsignificantly to its brand creation and building customer trust, which increasestheir confidence when using the product.

+ The product meets the quality standard: The products of this brand arepackaged and sold in many countries around the world. All of them haveundergone strict food quality checks and a closed production cycle to ensuresafety and quality for consumers.

+ Widespread distribution network: Milo is a global brand that has apresence in many countries around the world. The strong distribution networkof the Nestlé brand makes it easier for consumers to access Milo products.Additionally, Milo products are available through various online saleschannels, supermarkets, and retail stores, making them accessible to bothurban and rural customers.

- Weaknesses:

+ No change in packaging or design: Milo's packaging and labeling haveremained the same, while other beverage products constantly update andintroduce new and modern designs, which makes consumers feel bored.+ No change in flavor: Milo's lack of significant changes in flavor is also one of

its weaknesses when analyzing the SWOT model of Milo. For many years,since its establishment until now, Milo has only maintained a chocolate flavoringredient. Although the flavor has been improved and adjusted to meet theneeds of each country, they are not significantly different. This makes itchallenging for Milo to compete with other brands.

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+ No innovation and product development: The lack of innovation andproduct development is another weakness that this brand faces. AlthoughMilo continuously seeks ways to develop and improve its products, it stilllacks innovation and the pace of product improvement is quite slow comparedto its competitors.

- Opportunities:

+ The fast-paced social growth leads to an increasing demand for nutritionalproducts. Milk is an essential food source for every Vietnamese citizen.+ In recent times, in line with the trend of eco-friendly and environmentally

sustainable products, Milo has started to use effective and environmentallysafe packaging methods for its products. Currently, large companies thatfocus on environmental sustainability and consumer health are attracting alarge customer base.

+ With abundant financial resources from its parent company Nestle, Milo canheavily invest in major sports events that are broadcast globally, which helpsto enhance consumer awareness of the brand.

+ Moreover, the development of Internet technology creates opportunities forMilo to easily market its products and brand to the global market.

- Threats:

Currently, there are many strong competitors vying for a share of the milk industry,which is a major challenge for the Milo brand. With increasingly strong competitors,Milo is forced to adopt bold strategies in order to remain competitive in the market.

- Boost profitability: Increase profit margins by 5% within the next two years byreducing production costs.

- Raise market share: Increase market share by 7% by launching new promotionaloffers and loyalty programs. For example:

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+Coordinate with amusement parks like Jump Arena to provide products as well ashave promotional programs help increase revenue, suitable for the benefits of bothparties.

+Sponsoring children's sports tournaments, children's events."

- Achieve a return on investment (ROI): of 15% for marketing campaigns within thenext 12 months by: Identify target audience:

+ Children: After a long period of stressful study at school, students often lookto sports activities such as football and basketball to relieve stress and relax.However, because of the busy study schedule, they do not have enough timeto eat enough nutrients needed for sports activities. This makes their bodiesdon't provide enough energy to play sports, causing fatigue and weakness.+ Parents: For parents who have time to pick up their children, adequate

nutrition is also an issue they care about. They understand that a piece ofbread or a packet of sticky rice may not provide enough nutrients for theirnext activities such as tutoring, attending gifted classes, sports, etc.Therefore, these parents are always looking for a product that can meet theneeds of fully supplementing the nutrients necessary for the comprehensivedevelopment of their children."

- Increase sales: Increase brand awareness by 15% within the target demographicthrough improved advertising and social media campaigns. Implement the productionof TVCs, advertising templates, and organise events for the children after school.Cooperating with primary and secondary schools to open stalls that prepare MILOproducts at school's departure time.

For example: Mixing dishes such as Iced Cacao, Milo pickles, ...

2. Marketing objectives

- The company's sales are expected to grow by 20% due to the addition of a newmarket segment consisting of children between the ages of 6 and 16, somehow aswell as parents with children in primary and secondary school by buying our productsfor their children. These individuals tend to consume milk tea, soft drinks, and similarbeverages after school hours.

- We will be introducing new packaging for our products- Setting up stalls at the schools.

- As an incentive, we will be giving out leaflets containing useful study tips tocustomers who purchase at least 3 of our products.

- Raise brand awareness through various measures such as conducting promotionalstalls and increasing advertising efforts on our fanpage. One of the metrics we willuse to measure the success of these efforts will be the number of followers we haveon Facebook.

- Reposition Milo as an energetic beverage for students and encourage them toconsume Milo as an energy and nutrition drink. The strategy aims to target theparents of students who are worried about their children's lack of energy after schooland encourage them to choose Milo as a solution to this problem

- Increase the brand's visibility and create a new trend in the market by collaboratingwith primary and secondary schools, outdoor parks, and sponsoring sports

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