Introduce
Introducing about Nestlé S.A
“Nestlé S.A or Société des Produits Nestlé S.A is a Swiss multinational food and drink processing conglomerate corporation headquartered in Vevey, Vaud, Switzerland It is the largest food company in the world, measured by revenue and other metrics, since 2014 It ranked No 64 on the Fortune Global 500 in 2017 and
No 33 in the 2016 edition of the Forbes Global 2000 list of largest public companies.”
The founder of Nestle is the pharmacist - Henri
Nestlé, was born on August 10 in 1814 in Frankfurt am
Man, Germany He was the 11th out of 14 people in a wealthy, bourgeois family The Nestlé family originated in western Swabia, Germany In Swabian, "Nestlé" means a bird's nest and that is why for over 140 years,
Nestlé has had a small bird's nest in its logo
In 1860, the rate of children born in Switzerland had a high mortality rate up to 15-20%, this was the impetus for the pharmacist Henri Nestlé to think of the idea of producing a nutritious powder for infants With his knowledge and expertise in the field of pharmacology along with another partner is Jean Balthasar Schnetzler - a food scientist with an extremely practical mind In 1867, Henri and Jean invented a nutritious infant formula and experimented directly with Jean Balthasar Schnetzler's son when he was born
And also in 1867, Nestlé had known a baby was born 1 month premature and could not be breastfed He brought the baby home and tried his own ready-to-drink cereal Miraculously, the baby recovered very quickly after a few days Quickly, the news spread and spread to all European countries, reaching all mothers who were unable to breastfeed their babies Since then, Nestle has shaped its brand in the world in general and in Europe in particular.
Growing to this day, Nestle has more than 400 factories in 85 countries around the world Nestle's wide range of products includes baby products, healthy food, bottled water, breakfast cereals, coffee and tea, confectionery, dairy products, ice cream , frozen food, pet food and snacks Nestlé's sub - brand include: Lavie; Kitkat; Oreo; Nescafe; Maggi along with Nestlé Milo - a foodstuff made from cocoa and aromatic barley from Australia associated with childhood memories of many generations
1.2The history of Neslé Milo
MILO was first introduced in 1934 by chemical engineer Thomas Mayne of Smithtown, New South Wales, in the Royal Sydney Easter Show The name MILO is named after a sports legend from Cortona, Italy with extraordinary health who has won consecutive championships in 6 international Olympics
At this time, Australia as well as other countries in the world are affected by the great economic recession At that time, Nestlé wanted to develop a water that provides energy for children, thereby providing children with essential vitamins and minerals for the body at an affordable price This drink must be made from local ingredients such as barley, cocoa and dried milk… Nestle has partnered with Mayne, established Nestle Milo and distributes them worldwide In Asia, Milo is very popular in Indonesia, Malaysia and Singapore, where people love chocolate-flavored drinks: Milo has a 90% market share in Malaysia This is because Milo was once used as a nutritional supplement when it was first introduced in the country, and has thus gained a reputation as a 'must have' drink for the young and old
Nestle joined Vietnam early, in 1912 built its first office in Saigon and has been with the Vietnamese family for more than 100 years In 1998, Nestle established the first company in Dong Nai and started to build a factory Up to now, Nestlé is operating 6 factories, 2 production lines and nearly 2300 employees nationwide With a total investment of more than 600 million USD, Nestlé not only shows commitment to the company's long term development in Vietnam, but also the desire to improve - the quality of life and contribute to a healthier future for customers Vietnamese family generation
At Nestlé, with the vision of becoming a leading company in the field of nutritional and health food for customers Nestle has one mission: “to be the world's leading health and nutrition company” With the criterion of “Good Food, Good Life” giving users the best choice in a variety of foods and beverages from morning to night The aim is to improve the quality of life and contribute to a healthier future for generations of Vietnamese families.
For 80 years, Nestlé Milo has nonstop been providing nutrition and energy to children in more than 40 countries around the world With 80 years of global experience and 20 years of attachment, understanding the nutritional needs of
Vietnamese children, Nestlé Milo aims to develop quality as the foundation for future success
This is the message Milo wants to convey for many years, with the desire that the young Vietnamese generation to have health training and toughness Besides training Vietnamese children will learn lessons about determination to overcome all challenges, nurturing passion and building teamwork in a healthy body That's all the value sport brings.
Nestlé Milo has become a close friend in the child's development journey Not only providing energy every day Nestlé Milo also encourages children to participate in physical activities and sports that are beneficial to health For 12 consecutive years Nestlé Milo accompanies the football tournament ”Hội Khỏe Phù Đổng” since 2007 Since 2016, Nestlé MILO has cooperated with the Ministry of Education & Training and the General Department of Sports to implement programs ”Năng động Việt Nam” towards building a dynamic Vietnam generation and health.
Nestlé Milo is the pioneer brand in the work of encouraging children to participate in sports with a long-term energy source to help children learn valuable life values to become their own true champions.
Vision and Mision
At Nestlé, with the vision of becoming a leading company in the field of nutritional and health food for customers Nestle has one mission: “to be the world's leading health and nutrition company” With the criterion of “Good Food, Good Life” giving users the best choice in a variety of foods and beverages from morning to night The aim is to improve the quality of life and contribute to a healthier future for generations of Vietnamese families.
For 80 years, Nestlé Milo has nonstop been providing nutrition and energy to children in more than 40 countries around the world With 80 years of global experience and 20 years of attachment, understanding the nutritional needs of
Vietnamese children, Nestlé Milo aims to develop quality as the foundation for future success.
Message
This is the message Milo wants to convey for many years, with the desire that the young Vietnamese generation to have health training and toughness Besides training Vietnamese children will learn lessons about determination to overcome all challenges, nurturing passion and building teamwork in a healthy body That's all the value sport brings.
Nestlé Milo has become a close friend in the child's development journey Not only providing energy every day Nestlé Milo also encourages children to participate in physical activities and sports that are beneficial to health For 12 consecutive years Nestlé Milo accompanies the football tournament ”Hội Khỏe Phù Đổng” since 2007 Since 2016, Nestlé MILO has cooperated with the Ministry of Education & Training and the General Department of Sports to implement programs ”Năng động Việt Nam” towards building a dynamic Vietnam generation and health.
Nestlé Milo is the pioneer brand in the work of encouraging children to participate in sports with a long-term energy source to help children learn valuable life values to become their own true champions.
Marketing Environment
Macro – environment
As one of the developing countries with the golden population pyramid along with the top 15 population in the world, as of December 31, 2020, Vietnam's population is estimated at 97,757,118 people In which, under 15 years old accounts for about 25.2% Vietnam is a country with a young population structure and an average of 4234 children are born every day, creating very good conditions for products to provide nutrition for children Currently, the urbanization rate in Vietnam is quite fast, along with the population distribution has also changed a lot The structural transformation of economic sectors by decreasing the share of the value of the agricultural sector and increasing the share of industry and services also changes the structure of the population According to statistics, the proportion of the population working in agriculture accounts for over 50%, so this gap can be shortened Not to mention the increasing income of people, this number has exceeded
2000 USD/person/year in 2019 In today's life, the needs of people are extremely diverse and rich, this is a great opportunity for dairy businesses to conquer Vietnamese people
Children between 6 and 15 years old often refuse to eat nutritious foods such as shrimp, crab, fish, leading to calcium deficiency along with nutrients According to research by scientists, children from 4 to 10 years old require a Calcium intake of 450-500 mg/day and from 11 to 18 years old the body needs more calcium with about 800-1000mg/day, so the need for calcium-fortified milk is very large On average, a child needs at least 12 cans of milk a day Because of this feature, Milo with chocolate barley flavor is different from milk produced mainly from cows like other brands, which has stimulated the sensitive taste buds of this age group Thanks to such population characteristics, Vietnam is a potential market for Nestle Milo.
With the long-standing concept of Vietnamese people that there is nothing better than breast milk, it is quite difficult to consume products for children aged 1 3 - years old, so Nestlé Milo focuses on older age Therefore, mothers will consider it as a supplementary drink instead of giving their children soft drinks that are harmful to health The condition of Vietnamese people is quite small compared to international friends, so the nutritional needs of children are an extremely urgent need, especially Calcium to help children develop fully in all aspects
In Vietnam, the habit of using sweets as well as canned products or dairy products belongs to a small part of the urban population On the other hand, the ability to access dairy products by the majority of the population with below-average living standards is very difficult With economic growth, people's access to information resources becomes more easily Therefore, people increasingly need the care and satisfaction of physical needs, so milk and products like juice, coffee, are extremely good For many people using that kind of product has become a daily routine Especially, creating trust in prestige and quality, Milo has made loyal customers use their products, because one of the points in the concept of Vietnamese people who often use one kind of products that they feel is secure, trust so that they rarely change using another products
VietNam is a country having a humid tropical monsoon climate lengthened from the North to the South Therefore, Nestlé Milo and all the milk companies have the same problem is how to keep in good repair their milks and products Because milk is a health product, preserving milk is very important If they use canisters for their product, in hot weather like Vietnam Milk will deteriorate quickly So, using the paper box is the best way to preserve the product Milk preservation needs extremely strict requirements when it is best stored between 4-6 degrees Celsius If high or lower, it will break down the structure of milk, causing changes in substances into harmful elements that greatly affect the health of users Besides, VietNam is a developing country, it's becoming more and more urbanized There are a lot of places to build factories, with abundant human resources Vietnam is a bestway for a company to come and invest.
Politics in Vietnam is very stable That's why a lot of foreign enterprises come to Vietnam for investing and development, including Nestlé Milo Besides taxing imported goods and products, the government in Vietnam has a lot of policies that are really helpful for businesses According to Policy Decision 3399/QD-BCT in
2010 approving the planning of the dairy processing industry to 2020 with a vision to 2025 has brought many opportunities to reduce raw material costs to create potential for development On the other hand, there are still a lot of threats for companies from competitors and suppliers can easily become a dỉrect competitors
Nestle's first office was first opened in "Hòn Ngọc Viễn Đông" in 1912 Therefore, it is not exaggerated to say that this group has almost grasped the economic situation of Vietnam right from the early days of industrialization in order to take the right steps into the Vietnamese market.
Specifically, from 2002 to 2019, GDP per capita increased 2.7 times, reaching over USD 2,700 in 2019, with more than 45 million people escaping poverty The poverty rate dropped sharply from more than 70% to less than 6% With the strong and rapid growth of GDP, the purchasing power for health and personal services also increased According to the Center for Industry and Trade Information (Ministry of Industry and Trade), in a market report by Euromonitor, in 2020, Vietnam's consumption of milk and dairy products will reach 1.76 million tons, an increase of
8 6% compared to 2019 According to the forecast, sales of milk and dairy products in Vietnam are expected to maintain at 7-8%/year in the period 2021 2025, reaching - a total value of about 93.8 trillion dong in 2025 With such a continuous increase in milk consumption, it shows that milk is a potential market in Vietnam Vietnam in the period of integration and globalization led to the penetration of many new dairy companies, including a prominent event that changed the Vietnamese dairy market when the milk price dropped by 5-10% in 2014
As a country in the process of industrialization and modernization, the application of industrial parks as well as advanced production lines will increase production capacity and increase the competitiveness of enterprises Recently, Milo is gradually making technological advances such as investing about 37 million USD
(2014) in Milo's instant milk production line Next, Nestle Milo is produced at Bong Sen factory (Hung Yen) belonging to one of six factories of the parent company Nestle in Vietnam Bong Sen factory was put into operation on May 18, 2017 with a total investment of 1,600 billion VND (about 70 million USD), with an area of 10 hectares to develop the MILO water nutritional drink product line to meet domestic demand The strong investment to modernize, increase productivity, product quality and diversify dairy products also presents many challenges and opportunities The current production lines are highly synchronous, used in automatic and semi- automatic forms to meet the needs of food safety and hygiene, and environmental protection is getting more and more attention According to Nestlé Vietnam, the factory uses the latest environmental technology, including an eco friendly cooling -
Micro – envỉronment
In terms of company strengths, Nestlé S.A is the most famous brand in the world It has developed a respectable reputation in the food and beverage sector providing high quality products for daily use across the globe According to Fortune Global 500, Nestle is ranked 69th in all the largest corporations in the word in 2018, which proves that Nestle SA has gained a great global recognition With the support and investment of the parent company, Nestlé Milo is now present in many countries around the world with huge consumption sources such as: China, India, Malaysia, Singapore, etc Nestlé Milo always tries to develop, strives to create a huge revenue
In Vietnam, not only Nestle Milo but also most foreign companies entering Vietnam have the support of the world's largest corporation, so it is not difficult for Milo to dominate a large market with the same network They have a team of seasoned experience from production to sales to bring products to consumers As you know, in the food industry, the trust of customers must be on the top priority, so all the products from Nestlé Milo always focus on quality, they always achieve a high rating of almost 5 stars on the market forums Next is their Marketing team with two years receiving the APAC Effie Awards - a prestigious award in the field of communication and marketing in the Asia Pacific region, and this is the right direction of Nestlé MILO
Besides the strengths that Nestlé Milo has, they still have problems such as: Price fluctuations at retail stores; Control gap and organizational structure; etc But most of all, the biggest weakness is Nestlé Milo needs to improve the quality of their products in the near future Milo had made the mistake of mixing milk to make a chocolate barley drink containing up to 50% sugar This is extremely dangerous to the health of users, especially young people the future of an entire country - Especially, the number of people with diabetes is increasing, so Milo needs to consider and fix this weakness in the near future
With the company Nestlé Milo in particular and Nestl S.A in general, both é have received many criticisms from society Therefore, Nestlé S.A and its brands have lost a lot of their trust in customers, it has left many bad images in the minds of customers In 2014, with the destruction of more than 37,000 tons of Maggi noodles in India due to lead contamination with the scandal of excessive use of water and forced child labor in developing countries, Nestle has discredited its products to customers in general and countries in particular
According to a number of research articles, consumers nowaday tend to buy products with clear and accurate labels Up to 62% of consumers will choose products with no harmful elements Consumers are increasingly concerned and conscious about where the food they are using comes from and how it is prepared And the habits of some young people today tend to put sustainability as an important deciding factor when buying products Therefore, with the scandal about the label providing nutritional information about Nestle Milo's products in the past, they need to improve, fix the production line and provide accurate information about the product for customers Then, customers will have more trust in Milo and put their loyalty in it
Besides, under the 4.0 era, everything is becoming faster, convenience comes first, FMCG products will be an advantage for Nestle Milo Each box of pre-packed cool milk will be a delicious bait for customers who are children Furthermore, the huge consumption in Vietnam has opened up great opportunities for Milo With that, Nestle Milo has a notable opportunity to promote its e-commerce websites and online shopping platform A very few FMCGs are offering online services to make the shopping experience more comfortable and pleasant While Nestle has online stores in a few countries, expanding its online offerings into more areas would prove a rewarding decision for the company
The dairy market in Asian and Southeast Asian countries is no different from a "cake", so every year there are many competitors participating in the competition Combined with the strong development of the media and consumer demand strictly from customers, Milo mustn’t make any mistakes, even the smallest
Besides, Government regulations play an equally important role, which can affect Nestle's business In addition, increasing commodity prices force the company to increase product prices It will lead to a decrease in sales as consumers can switch to other brands that are available at a low cost
Following Nestl S.A: “We rely on more than 5 million farmers in rural areas é to supply raw materials for our production We are working on a variety of programs to ensure that rural areas become places to live, work and invest in for future generations”.With requirements that Nestlé Milo Service Providers need to comply with business practices It is these rules that have created Nestlé Milo a system of reliable suppliers and more than half guaranteed to maintain product quality:Integrity in business; Sustainability; Standard labor Safety and health; Environment.;
Nestlé has worked wisely with partners including the Ministry of Agriculture and Rural Development to distribute more than 28 million disease resistant seedlings with high yield for farmers Increase over 30% of people's income without affecting the ecosystem and environment In addition, Thanh Dat company provides product preservation services for Nestlé Milo They are Supplier providing transport services and quality reputation are many leading companies choose as DHL, YAMAHA, VNPT, Ariston, etc
In the micro environment, marketing intermediaries play the primary role of selling and distributing the company's products The more the company's marketing intermediaries the greater the number of products that reach users.
+ Shopping mall: Aeon Mall, Big C, Coopmart
+ Convenience stores: GS25, Circle K, Family Mart
+ Large and small household grocery stores
Thanks to the reseller, Milo's products have great coverage After a period of exposure to milo's products Customers will form thoughts “Milo is an essential product”
When starting a business, all businesses need to define the market as customers that have the ability to meet their needs The customer is the core element of the micro environment Because all marketing activities are customer- centric and customer satisfaction.
+ Consumer markets: Households, students and children, …
+ Business markets: Businesses doing services such as schools, …
+ Reseller markets: Supermarket chains such as Big C, Coopmart, Eon, convenience stores, …
+ Government markets: Volunteer organizations belonging to the government, charitable organization
In terms of the dairy market in Vietnam, Nestle Milo has to face two giants, Vinamilk and TH true milk, who have a wide variety of products and equally wide customer belief They have great technology and a huge influence on the Vietnamese people For example: Vinamilk is a dairy company in Vietnam, associated with many
Vietnamese generations Moreover, Vietnamese people have a personality about buying consumer goods that is: "Vietnamese people use Vietnamese goods" Or, TH true milk is famous for its clean and pasteurized milk, which has won many customers's trust in this milk brand It can be said that their products are substitutes of Nestle Milo
Nestlé Milo is a company that mainly supplies milk from barley, so Nesté Milo has a very strong competitor, Ovaltine Both of which carry the same cocoa flavor, although different in taste, but are also difficult choices for consumers Although Nestlé Milo still holds the largest percentage of this market, Ovaltine is also considered a danger with aggressive marketing campaigns that hit the customers' mind
S - T P Strategy –
Segmentation
The company needs to understand their customers' needs Researching the market helps businesses which divide the market into many small segments And then, they choose one segment to focus on Nestlé Milo have divided their market by demographic, specifically about the age They divide Vietnamese market in 5 segments: 0 - 6; 6 14; 14- - 18; 18 25; >25 years old Every single segment has - their own feature
Income: No income, depend on family
Family-life cycle: Babies, preschool - age children
Social Class: Low class, - Mid - class, Working class, - Upper - clas s
Motives: Can’t make decision, depend on their parents
Lifestyle: Affected by their families, active andghty
User status: Non users, - potential users, first-time users
Price Sensitivity: Don't sensitive to price
Gender: Both Boys and Girls
Income: No income, depend on family
Social Class: Low class, - Mid - class, Working class, - Upper - class
Motives: Attracted by appearance , colorful
Lifestyle: Like explore, learning, hang out
Benefit Expectation: Flavor and Appearance
User status: Non-users, ex - user, potential users, first-time users, regular user
Price Sensitivity: Don't sensitve to price
Gender: Both Boys and Girls
Income: No income, depend on family
Family-life cycle: Teenager, not married
Social Class: Low class, - Mid - class, Working class, - Upper - class
Motives: Attracted by appearance , colorful and flavor
Lifestyle: Like explore, learning, hang out
Benefit Expectation: Flavor and Appearance
User status: Ex-user, regular user
Price Sensitivity: Less sensitive to price
Single or Newly married couples young (no children)
Social Class: Low class, - Mid - class, Working class, - Upper - class
Motives: Care about quality, brand and price
Lifestyle: Like explore, easy change
User status: Ex-user, Regular user
Price Sensitivity: Less sensitive to price
Occupation: Both white - collar and blue collar - workers
Family-life cycle: Have married and have a children
Social Class: Low class, - Mid - class, Working class, - Upper - class
Motives: Care about quality, brand and price
Lifestyle: Take care the family and health
Price Sensitivity: Very price sensitive
Targeting
After analyzing and segmenting their market, businesses will choose a suitable segment and based on that determine the targeting market to implement their marketing plans.
Nestle Milo is a famous barley milk brand that has used a differentiated marketing strategy Strong focus on the second segment of children from 6 to 14 years old In this age range, the digestive system of children is extremely weak but the amount of nutrients to meet the development needs is extremely high along with the great attention from mothers, so they are extremely focused in children's daily food choices For children from 6 to 14 years old, milk is an indispensable complementary food for children because this is an extremely important developmental age that affects the child's future development both physically and mentally This is also an extremely active age, it is difficult for daily meals to meet energy consumption needs Therefore drinks to help children replenish energy quickly is an essential issue The users of the product are the children, but the one who decides whether to buy or not is the parents Dairy products today are becoming more diverse in terms of products as well as prices There are many parents who can provide enough milk for their children while the family's income is only low or moderate So Milo targets customers in all areas (urban, rural) This is an extremely potential age of the dairy industry.
Positioning
Positioning is the business' use of marketing activities to build the image of products and brands that have a special position in the perception of customers, which helps create the greatest competitive advantage in the target market.
Nestlé Milo has positioned its brand as a product that provides nutrition and energy for children with the message “Năng động Việt Nam” Faced with the fierce competition of substitute products such as Vinamilk milk and TH true milk, Milo made the right move, when they created a very different communication channel by encouraging children to participate in the competition and participate in sports activities During the developmental period, giving children sports activities is extremely necessary Milo has hit the psychology of parents, this helps the product to be trusted by parents Besides, Nestlé Milo has products that are different from other brands in terms of ingredients Most of Nestle Milo's products are extracted from barley and some other foods, completely different from TH true milk, Vinamilk and most other milks on the market which are produced from cow's milk farms With the use of different ingredients compared to other brands in the same industry, cow's milk, this seems to be an advantage that helps Milo make a difference when using products to bring a new experience to consumers.
Marketing Mix
Product
Since its inception, Nestle Milo has tried to build its product as a convenience product They have continuously improved from product packaging to new product lines, to meet the best for user needs
About product lines: Nestle Milo focuses on expanding the with of its product lines
Milo's product lines currently include: Powders, Drinks, Cereals, Snack These products are divided into separate lines based on the main ingredients that make it up to meet the increasing and diverse requirements of customers Products have many different functions and quantities, and at the same time, depending on certain functions, prices also fluctuate, in order to meet the shopping needs of many different objects.
The market is a fierce place, in order to have a foothold in the market, businesses must have their own colors and characteristics From there, they can create a highlight in the mind of the customer And so is Nestlé Milo, they also have their differences
The biggest factor affecting the success or failure of a product is the quality it delivers Milo has mainly barley ingredients, so it possesses substances such as Protein, Iron, Vitamin C and Vitamin B1 In addition, as the information on the packaging is provided, Milo milk also contains other minerals such as Mg, dicalcium phosphate, iron pyrophosphate, biotin, calcium pantothenate, vitamins B2, B3, B6, B12, etc Full of nutrients and minerals Most prominently, in 2006, Nestle Milo developed its formula In the new formula, Nestle Milo introduces it containing ACTIGEN E and PROTOMALT which proves that Milo wants to assert itself as a nutritionally rich food supplementation necessary energy for children Thus, it can be affirmed that Milo is a very nutritious drink for our body This has helped consumers feel more secure in using the product
The core value of Milo products is the addition of Calcium, Vitamins and minerals to provide energy for children's long days of play and learning Thanks to barley extract, vitamins and minerals, Milo milk is considered an essential food to help release energy in the body At the same time, strengthen the function of the skeletal system, actively support the intellectual activities of the child and increase the child's ability to concentrate better in learning
The model of the Milo milk products line is quite different from other dairy product lines The product is designed with green color, with a very eye-catching design to create the feeling that the product is made from natural ingredients, the information is shown in a full and clear way to help consumers to evaluate and select In addition, with the image of childs and barleys on its products, Nestle Milo secretly affirms that its products have ingredients from barley as an energy supplement, helping children to stay healthy, active and playful Moreover, the design of the product varies depending on the function and ingredients, for example: Milo milk is packaged in paper boxes for convenience in immediate use; Milo can is designed to be stored in tight places, such as in a briefcase, to create the most favorable conditions for consumers
The slogan "Good Food, Good Life" of the parent company has followed the brand since its inception and is still the slogan used by the company as a core message The tagline is both characteristic of the food industry and conveys a message of commitment to consumers It is a Nestlé Milo commitment that every day, everywhere, consumers will be provided with healthy food and beverage options that enhance quality of life They don’t need to use fancy words, but the slogan brings good messages, contributing to making the brand familiar and memorable in the hearts of customers
Packaging for the product is also focused in the design stage, so that it is easy to buy and suitable for the characteristics of the product In all Milo products, they always use one concept and one main color The right color not only helps to impress the buyer but also does not lose the beauty of the product Milo also pays great attention to the design of the product's packaging so that it is both convenient for each consumer case and also protects the environment Therefore, most product packaging is made from degradable carton paper or tin alloy cans that are both not oxidized and corroded and can be used for recycling For box form, Milo is divided into batches, one each batch is four boxes and placed in a carton with 48 boxes of 12 packs With such designs, it helps a lot to protect the product, facilitate movement and storage For powder products, they will be packed into rectangular cartons that are easy to decompose in the environment and do not cause pollution like other plastic packaging The Milo cans are made of tin, sold individually in convenience stores
On the packaging of each Milo product, customers will be instructed on how to use and preserve the product in detail and thoughtfully If you don’t understand or want more advice on the product, then on The packaging of each product has a phone number so that in case you want to consult, you can contact In addition, customers can also buy Milo's products through online sales sites such as Tiki, Lazada, Shopee, On the Milo homepage designed to help shoppers learn from experiences in raising children, caring for family members or product knowledge from Milo's stories
Nestle Milo product line in Vietnam has passed the period of strong development and is in the stage of saturation Initially, the product line built its reputation and success in the Vietnamese market The Milo product line is constantly looking for loyal customers and bringing the product line closer to customers In addition, their products are also constantly improving characteristics and improving product quality to create diversity and meet the increasing needs of users.
Price
Milo milk 26.500VND/4 cartons of milk 180ml
Ovaltine milk 27.000VND/4 cartons of milk 180ml
Vinamilk milk 29.500VND/4 cartons of milk 180ml
TH True Milk 33.000VND/4 cartons of milk 180ml
The Milo milk product line is aimed primarily at parents with children aged 6-
14, with low to high income sources With identification right from the start, the product is aimed at parents with children aged 6 14 across the country Milo chose - Competitive-Based Pricing Milo considers itself as the best energy and nutrition product in the market, and then sees how its competitors are doing and then offers a fair price for its products.
When entering the Vietnamese market, Nestle Milo has had many different pricing strategies to develop its business They start entering the market with a new Product Pricing Strategy and they focus on Market Penetration Pricing They start their products at low prices but compensate with high quality to be able to target the mass market After winning the trust of customers they raised the price to par with the market.
After gaining a place in the Vietnamese market, they have expanded their product lines with the goal of diversifying product sources as well as implementing the Product Mix Pricing Strategy: Milo has 4 main product lines, each line hav a e different price.
In addition, they also use a price strategy such as a Price-Adjustment Strategy -> Discount: When customers buy in bulk, they will enjoy extremely favorable prices or depending on different locations, Nestle Milo's suppliers will have separate prices.
Besides, the Price Change Strategy is also used by Nestle Milo: They lower - prices when the product has low sales or there are too many competitors; They will raise prices when production costs increase or because of inflation
Place
4.3.1 Distribution network and Channel behavior
With the goal of dominating the market so that the product can cover the target market along with building a product image Nestlé Milo focuses on indirect distribution channels:
Through indirect channels Nestlé has brought its products to consumers through intermediaries.
Nestle Milo cooperates with retailers with large chain chains such as Lotte, BigC, Coop mart, Cooperation with large retailers helps to reduce costs of storage, sorting, distribution on a large scale with a wide network In addition, Milo is also associated with e commerce platforms such as Tiki, Shopee, Thanks to the great - development of technology, people are also gradually changing with decreasing frequency of buying and increasing the number of goods purchased each time.
Next is the policy of distribution through wholesalers and then pushing the source of goods to rural areas, small areas without supermarket chains or convenience stores Significantly reduce transportation costs and still reach consumers in every alley, street corner or remote mountain, sea and island area.
Manufacturers => Agent => Wholesalers => Retailers => Consumers
Through large dealers, then to wholesalers and then widely distributed to each retailer, this policy is an effective method to combat counterfeit and poor quality goods
Milo uses an extensive distribution strategy This distribution strategy serves the goal of meeting the broad buying needs of consumers Therefore, it is necessary to get the product to as many retailers as possible To implement this distribution method, Milo widely uses intermediaries who are retailers in different locations Retail outlets are usually grocery stores Milo chose this strategy for the purpose of needing as many sales locations in the area as possible because customers need maximum convenient points of sale when buying products Thus, the number of intermediaries is not limited, the more the better Applying this strategy, Milo will lose control over product placement, display, service, and pricing Besides, with the expansion of the space for their products, it will create a large coverage of nestle milo, from which any customer will know about nestle milo as well as their products.
With the selection of intermediary agents as the main distribution channel, Nestle Milo always has extremely strict requirements for its intermediaries: Requires market coverage of the system; The desired channel control level Lowest total ; distribution cost; Ensure channel flexibility.
Besides, Nestle Milo also conducts a number of promotions to encourage and stimulate demand for its intermediaries, such as: Advertising Subsidies; Cost for product samples on display ; Subsidies for functional departments, warehouses Pay ; for the exhibition space; Pay some fixed furniture costs in the store.
Promotion
By using both Push and Pull of Promotion strategy, Milo has proven in the right direction in the fierce media battle between milk brands
With a Push strategy: The company uses a variety of communication activities to convince distributors to buy products When products come to distributors, Nestlé Milo continues to use communication for selling products Milo has implemented incentive programs to help its distribution channel such as discounts for agents to push goods to the warehouse, supporting the display advertising programs of distribution channels This strategy is implemented to create a large coverage for the Nestlé Milo brand From there, customers can know about Nestlé Milo’s products
With a Pull strategy: Opposite to Push strategy, “ Pull” means increasing advertising activities, public relations, promotions, organizing events to create impressions of consumers about products and stimulating curiosity to use products
To use the Pull strategy, it is necessary to have an important stepping stone of the
"push" strategy Because only when there is a wide distribution channel, it can meet the needs of users The purpose of this strategy is to attract customers to find Milo products and use them
The campaign message for the "Năng động Việt Nam" program mainly encourages mothers to actively engage their children in more physical activities However, this idea is taken from the very indifferent attitude in balancing physical training for children and the traditional concept of education in Vietnam
And two TVC (Television Commercials): “Nhà vô địch thực sự” and “Con cảm ơn mẹ”, integrated with various communication tools of popular social networks in Vietnam (Youtube and Facebook), and there is also the enthusiastic support of many KOLs, bringing great viral effect After its launch, Milo's advertising campaign has reached 19 million views, attracting 3,057,757 children to participate in sports activities within the framework of the "Năng động Việt Nam" campaign In Particular, there are over 181 thousand parents pledged to work with Nestlé Milo to build a healthier and more dynamic future in Vietnam
Nestle Milo's promotions appear everywhere in large supermarkets or on pedestrian streets and amusement parks This helps consumers use the product directly to evaluate whether to buy or not, in combination with discount promotions or bundled with learning tools and toys when buying products For example, the program to buy Milo and give away backpacks, when customers buy a carton of Milo milk, they will be given a Backpack with logos of Milo and Nestle Or the program to buy Milo texting to bring back many rewards such as Milo Gold Box equivalent to 01 amount of 24K SBJ gold, Milo Confident Bicycle, …
Popular events with the participation of celebrities such as Nestlé MILO accompany the Olympic Running Day "Vì sức khỏe toàn dân" held in District 1, Ho Chi Minh City in 2019, or the campaign that has been carried out for many years since 2016 in Vietnam is "Năng động Việt Nam" which attracts a lot of attention from parents as well as the Vietnamese press These events are not just a product launch but also activities designed to make a good impression on people and protect the image of the company
In addition, Nestle Milo sponsors many sports activities of primary and junior high schools across the country, typically: “Hội khỏe phù đổng dành cho học sinh tiểu học cấp tỉnh Bình Dương”; “Hội khỏe phù đổng dành học sinh trung học cơ sở cấp tỉnh Đồng Nai”; etc Besides organizing contests for candidates, the company also creates opportunities for contestants and spectators to try Milo milk for free.
Recommendation
On the way to becoming the "Big Boss" of the FMCG, Milo has applied many popular marketing strategies Our team would like to propose some ideas, so that Milo can continue to develop in the Vietnamese market
First, Nestlé Milo should continue to cooperate with the Ministry of Education and Training and the General Administration of Sports and Physical Education of Vietnam There have been many schools that have been sponsored by Milo, providing exercise equipment and sports, and many localities have been supported to organize sports and health training movements As a result, Nestlé Milo was able to reach more students than those within Milo's target group
With the extremely complicated situation of the Covid 19 epidemic in Vietnam today, this is a common concern of the whole society in general and businesses in particular Right now, doctors, police, and soldiers on the front lines against the epidemic need the "support" of the Vietnamese people Nestlé Milo shapes its brand on dynamism through motivational touched the hearts of consumers Nestlé Milo should continue to take advantage of the power to be able to "support" campaigns with more real life so that they can fight the epidemic together They can continue to raise funds for vaccines and donate milk to quarantine participants there
On environmental issues, Nestlé Milo has also implemented great strategies to contribute to environmental protection Our team recommends that Nestlé Milo should continue to promote the packaging and packaging stages of its products to be more environmentally friendly For example: In May 2021, Nestlé Milo officially switched to using plastic straws for its products This is a turning point for Nestlé Milo in particular and the food industry in general On milo's facebook page, there are always posts with the slogans "Green Milo for a green earth" or "1 minute using a plastic straw, hundreds of years of painful planet" In the coming time, Milo's factory should use advanced wastewater purification technology, strengthen monitoring and maintenance of the plant system to reduce the amount of toxic substances released into the environment
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