(Tiểu luận) topic study the consumer behavior of customerstowards the brand nestlé milo

After surveying 100 people, here are customers'opinions who want Milo to improve ● Want to improve on straws especially paper straws ● Add programs, and product campaigns to attract cust

Ministry of Education and Training

HO CHI MINH CITY OPEN UNIVERSITYSCHOOL OF ADVANCED STUDY

towards the brand NESTLÉ MILO

Class: MK201C

Lectures: Dr Đỗ Khắc Xuân Diễm

Name Of Members: Nguyễn Tấn Đạt

Nguyễn Mai Hoàng Phúc

Acknowledgement 4

Contribution level assessment table 5

I Introduce 6

1 Company profile 6

2 Reasons for choosing the topic 6

3 Objectives of the study 7

II Theoretical background 7

1 Marketing Mix 7

2 Habitual buying behavior 8

3 Customer behavior model 8

III Situation analysis 10

1 Microenvironment analysis 10

1.1 Company 10

1.2 Customer analysis 11

1.3 Competitor analysis: 14

2 Macro environment analysis 16

2.1 Demographic factors 16

2.2 Economic factors 17

2.3 Technological factors 18

2.4 Political-law factors 18

2.5 Social factors 19

IV.Marketing strategies 19

4.1 Availability advantage of Milo 19

4.2 Milo's product strategy (Product) 20

4.3 Milo's weakness in product strategy 20

4.4 Building a new product strategy for Milo 21

4.5 Milo's promotional strategy (Promotion) 22

4.6 Building a new marketing strategy for Milo 24

V Implementation 25

VI Conclusion 27

VII Source 28

Customer Behavior is an interesting and extremely rewarding subject However,our knowledge and skills in this subject are still limited Therefore, our essay is hard to avoid errors We hope that the teachers will review and give suggestions

to help us improve our essays

We sincerely thank you!

Contribution level assessment table

Nguyễn Mai Hoàng Phúc

100%

Võ Thị Anh Thi

ID: 2054010689

Complete assigned work, look up documents

100%

Trịnh Đỗ Anh Thư

ID: 2054012303

Complete assigned work, look up documents

100%

Nguyễn Tấn Đạt

ID: 2054012071

Complete assigned work, look up documents

70%

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I Introduce

1 Company profile

Nestlé is a company specializing in the

production and sales of food and drink

lines mainly from natural barley sources,

bringing high nutritional value to

consumers Nestle has been present in

Vietnam since 1920 and is constantly

growing and becoming familiar to Vietnamese families Milo is a beverage product ofAustralian origin produced by Nestle and developed by Thomas Mayne, withingredients from milk, combined with chocolate, and malt This drink is produced inmany countries such as Malaysia, Singapore, China, Japan, India, Vietnam,…Theproduct name Milo is derived from the name of a Greek athlete known for themmagical powers

2 Reasons for choosing the topic

Nestlé's milo milk has been present andcontinuously in the Vietnamese market formore than 27 years and is a prestigious brand,leading in quality and market share in theindustry Nestle's Milo Milk Barley Drink isthe perfect combination of the uniquelydelicious flavor of cocao Not only high quality in the industry, but Milo's campaignsare also highly appreciated However, Milo still has many product problems thatcustomers want Milo to improve After surveying 100 people, here are customers'opinions who want Milo to improve

● Want to improve on straws (especially paper straws)

● Add programs, and product campaigns to attract customers

● Diversity of products and product packaging

(Excerpt from the customer behavior survey that the team has studied)

3 Objectives of the study

Customer behavior research has emerged as an important tool for understandingyour customers Companies can create new products, and marketing campaigns, andincrease profits by looking at consumer psychology and the forces behind customerbuying behavior Companies should communicate with consumers, preventdisappointment, and most importantly, identify their needs and expectations.Understanding the importance of customer behavior research, our team divided theresearch objectives into 4 main ideas as follows:

● Segmentation and customer retention

● Build marketing campaigns in line with market trends

● Change and compete for growth

● Improve product quality in the market

II Theoretical background

1 Marketing Mix ( Using behavioral theory to propose a Marketing Mix plan) 1.1 Promotion – Sales promotion

In the sales promotion section, marketers need to identify: Target customers; Targets: Sales, brand coverage, new market expansion; Means of sale; Advertising

media; From the above information, the unit will build the program, run the test, complete and evaluate.

1.2 Product – Product strategy

Based on the strengths of the product compared to similar products in the same segment and the business's strengths, the product strategy will be built to create an impression, differentiate the product through channels, and promote consumer buying behavior

1.3 Price – Price Strategy

Pricing strategy is a tactic that uses the cost of a product/service to help businesses

or units achieve one or more marketing goals

1.4 Place – Distribution Strategy

Distribution strategy can be understood as the way to move products and servicesfrom manufacturers, through intermediaries and to consumers

1.5 Customer care

Customer care strategies will help businesses retain old customers and expand theirpotential customers

2 Habitual buying behavior

Habitual consumer behavior is described as when a consumer is less involved in apurchase decision In this case, consumers notice only some significant differencesbetween brands

When consumers buy products that they use for daily living, they don't have tothink twice They buy their favorite brand, the brand they use often, the brandavailable in the store, or the lowest-priced brand

3 Customer behavior model

Customer behavior model has the following 5 stages: Need awareness; Look forinformation; Evaluation of the plan; Decide to buy; Post-purchase behavior

Stage 1: Need awareness

This is an important stage, which is the basis of the next stages, because consumersneed to be aware of the need to consume necessary products and services

Stage 2: Finding information

After identifying the need, they begin to seek information from a variety of sources

It can be from family, friends, etc or from comments and reviews on the mass media

Stage 3: Evaluation of alternatives

When the necessary information has been collected, they begin to compare andcontrast products with each other and choose a product that suits their needs, criteria

as well as available economic conditions

Stage 4: Decide to buy

Consumers decide to buy when they have chosen the product that is right for them.The customer behavior shown at this stage is that they go to the store to buy or shoponline

Stage 5: Post-purchase behavior

This is the stage where consumers begin to use and assess whether the product'squality has fully met their expectations If satisfied, they will continue to purchase andreturn feedback If they are not satisfied, they will express their attitude, do notcontinue to use the product, even complain to those around them.

III Situation analysis

In addition, they also promote the promotion strategy methodically, bringing greatrevenue and profit for themselves

In particular, Milo also uses the Outdoor communication strategy with typical eventssuch as sports across the countries where it is present They sponsor tournaments frombig to small to improve their brand awareness and name, making Milo's image moreand more popular linking its products with health training activities, and sportsactivities, creating a lot of sympathy in the hearts of customers

Finance

Currently, Nestlé Vietnam's total investment in Hung Yen province has also increased

to about 100 million USD

From 2017 to now, Nestlé Vietnam has three times increased investment capital andexpanded operations in Hung Yen This expansion is part of Nestlé Vietnam's strategy

to further strengthen its leadership position in the northern provinces

Up to now, Nestlé is operating 6 factories and nearly 2,300 employees nationwidewith a total investment of more than 600 million USD

Human Resources:

The company is building an internal knowledge-sharing system that creates specificimages such as quality value and care The company is focusing on building strongcustomer relationships with its employees

Management principles also describe leadership styles Accordingly, each Nestlémanager is required to motivate and mobilize employees, always looking for ways toimprove the way they work, create an atmosphere of change, and promote innovation.They have personally experienced working in an international environment, alwaysrespecting the world's cultures, and attaching importance to a long-term strategicapproach rather than a short-term one

1.2 Customer analysis

Life style

During the age of most important growth in the mental body Attending school,

being active, and participating in many outdoor recreational activities The main job ofthis group of buyers is junior office staff, office workers, freelancers, etc Indirectlyaffected by Friends, colleagues, and groups on social networks Like to take care oftheir children and grandchildren

Demand

Children between the ages of 6 and 14 need a lot of nutrients for their overallgrowth Besides, at this age, young children also need to be supplemented with energysources for recreational activities, learning, and walking

With the development of society, people's living standards are increasing, forparents, children are always on top and milk types are becoming more and morediverse, so the choice of brand Quality milk for your children to use is the mostconcern.

=> There is always a need to find the best products for children.

Expectations when buying milk:

The physical characteristics of Vietnamese people are that their weight and heightare relatively low compared to the rest of the world Mothers always wish to increasethe height of their children with pure products such as milk, calcium, exercise, andsports and expect their children to be provided with adequate nutrients for totalgrowth

Media behaviors

Milo has many unique advertising campaigns, attracting children and especially

parents They are very interested in the activities and campaigns that Milo organizes

Motivation

What makes people use Milo milk

● Delicious taste

● Beloved by the events of Milo

● Referred from friends

Realizing that the nutritional composition in milo milk is very suitable for theoverall growth of children Milo has many essential nutrients to promote physicalhealth as well as supplement energy

Fence

Why people don't use Milo

● Don't like the taste (cocoa) Irritation (hot drink), allergy, liking cow's milk,

● Prefer Ovaltine

● Being directly affected by the group of descendants

CONSUMER SURVEY ON MILO RICE MILK PRODUCTS

SURVEY RESULTS

Based on the survey results, we see that Milo is doing very well with their mediacampaigns Customers know Milo through media such as TV, Newspapers, SocialNetworks, and Word of Mouth And social networks account for the most % at 64%

(Excerpt from the customer behavior survey that the team has studied)Customer satisfaction:

Satisfaction

level

disagreementMILO has a

According to the customer satisfaction survey for Milo's products, the survey resultsare as follows:

70% of customers think that MILO has a reasonable price, suitable for everyone,especially students

There are many different opinions about the promotions of MILO, the percentagesaying that milo doesn't have many promotions is 28% and the next 28% see Milo'spromotions as normal This shows that MILO should apply more promotions to attractcustomers and retain customers

Regarding product variety, there are also many opinions, but the percentages in thetable above show that customers still want milo to have more products for them toexperience and use

1.3 Competitor analysis:

Vinamilk:

The target customers that Vinamilk targets arechildren and teenagers With a variety of productlines, Vinamilk provides good product lines toconsumers Vinamilk also constantly offershealthy products to meet the needs of users Interms of price, Vinamilk is also the leading brand

in reducing prices and increasing production capacity at certain times Regardingdistribution, Vinamilk has created a distribution network with more than 5000 storesnationwide In addition, Vinamilk has also developed its own e-commerce channel,giacmosuaviet.com.vn, to meet the online shopping needs of customers Regardingmarketing, Vinamilk focuses on advertising on different channels such as televisionchannels, newspapers, social networks, outdoor advertising banners,

From that, it can be seen that Vinamilk is a major competitor of Milo, the largestdairy market share in Vietnam (36%) Scale: 12 factories, 6 domestic subsidiaries, 5

overseas subsidiaries/affiliates Vinamilk brand is valued at 2.4 billion USD in 2020,

an increase of 200 million USD compared to 2019 However, Vinamilk has not beenactive in the source of raw materials: dependent on imported materials (60%)

Ovaltine:

Target customers are mothers with children in primary

school In terms of products, Ovaltine's product lines are

made from barley, which helps to improve life, improve

health, and focuses on providing nutrients to be good for

children In terms of pricing, Ovaltine adopts a competitive

pricing strategy with Milo In terms of distribution, Ovaltine's products are distributedfrom supermarkets, and grocery retailers to wholesale agents nationwide Therefore,Ovaltine's products are easily accessible to all segments of customers with differentincomes in the Vietnamese market In terms of promotion, Ovaltine offerspromotional messages (No need to translate, JUST LIKE) with messages thatchallenge Milo (Champion made from MILO) to create media effects

In terms of strengths, the marketing strategy hits on the psychology of mothers andchildren to do what they like and Milo's children can become champions, which isalso a joy Delicious cocoa-flavored barley milk for children over 1 year old Milo's is

a nutritious drink

Weaknesses: Ovaltine's marketing strategy is considered to be quite lackluster andunremarkable The Ovaltine brand's advertising campaign only offers slogans that aresymmetrical or comparable to each other, not a similar message, or a product that hasmuch in common with Milo

Positioning map: Brand awareness and market share

In general, Vinamilk is leading in terms of brand recognition and market share.Standing behind are Milo and Dutch Lady Speaking of Meadow Fresh and Love InFarm, they are considered as new brands entering the Vietnamese market For THTrue Milk, although entering the dairy industry quite late in 2010, TH True Milk hasmanaged to keep up with the fast development speed with a sustainable growth rate

2 Macro environment analysis

2.1 Demographic factors

2.1.1 Age

For Milo targeting demographic factors are children, students, and alumni In 2018,Vietnam had up to 14 million children aged 6-12 and it was recommended by theVietnam National Institute of Nutrition to have a nutritional supplement in themorning The recommended intake for older children 6 years and older is 2 servings

of Milo Children aged 2-6 can still take milo but in smaller portions Thecharacteristics of the age group 6-18 are the age that needs the most comprehensivedevelopment in terms of height, intellect as well as physical This is the age that needsthe most energy for children's play and learning activities

2.1.2 Family Size and Life Cycle