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

Ministry of Education and TrainingHO CHI MINH CITY OPEN UNIVERSITY

SCHOOL OF ADVANCED STUDY

towards the brand NESTLÉ MILO

Class: MK201C

Lectures: Dr Đỗ Khắc Xuân DiễmName Of Members: Nguyễn Tấn Đạt

Nguyễn Mai Hoàng Phúc

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

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

First, we would like to express our deep gratitude to the School of Advanced for introducing the subject of customer behavior into the curriculum In particular, we would like to express our deep gratitude to the subject lecturer - Dr Do Khac Xuan Diem, who wholeheartedly taught and imparted valuable knowledge to us during the last semester During the time attending her class, we have had access to many useful and necessary knowledge for our future study and work process.

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

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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 of Australian origin produced by Nestle and developed by Thomas Mayne, with ingredients from milk, combined with chocolate, and malt This drink is produced in many countries such as Malaysia, Singapore, China, Japan, India, Vietnam,…The product name Milo is derived from the name of a Greek athlete known for them magical powers.

2 Reasons for choosing the topic

Nestlé's milo milk has been present and continuously in the Vietnamese market for more than 27 years and is a prestigious brand, leading in quality and market share in the industry Nestle's Milo Milk Barley Drink is the perfect combination of the uniquely delicious flavor of cocao Not only high quality in the industry, but Milo's campaigns are also highly appreciated However, Milo still has many product problems that customers 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 understanding your customers Companies can create new products, and marketing campaigns, and increase profits by looking at consumer psychology and the forces behind customer buying behavior Companies should communicate with consumers, prevent disappointment, and most importantly, identify their needs and expectations Understanding the importance of customer behavior research, our team divided the research 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 services from manufacturers, through intermediaries and to consumers.

1.5 Customer care

Customer care strategies will help businesses retain old customers and expand their potential customers.

2 Habitual buying behavior

Habitual consumer behavior is described as when a consumer is less involved in a purchase decision In this case, consumers notice only some significant differences between brands.

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

3 Customer behavior model

Customer behavior model has the following 5 stages: Need awareness; Look for information; 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 consumers need 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 and contrast 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 shop online.

Stage 5: Post-purchase behavior

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

III Situation analysis

Use attractive advertising videos and TVCs, attracting the attention of viewers They clearly state what ingredients are in their products, suitable for specific audiences, to stimulate shopping demand from customers Promotion activities are expanded on mass media such as TV, radio, billboards on the street, etc.

In addition, they also promote the promotion strategy methodically, bringing great revenue and profit for themselves.

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

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 and expanded 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 nationwide with a total investment of more than 600 million USD.

Human Resources:

The company is building an internal knowledge-sharing system that creates specific images such as quality value and care The company is focusing on building strong customer relationships with its employees.

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

1.2 Customer analysisLife 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 of this group of buyers is junior office staff, office workers, freelancers, etc Indirectly affected by Friends, colleagues, and groups on social networks Like to take care of their children and grandchildren.

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

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

=> 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 height are relatively low compared to the rest of the world Mothers always wish to increase the height of their children with pure products such as milk, calcium, exercise, and sports and expect their children to be provided with adequate nutrients for total growth.

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

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 the overall growth of children Milo has many essential nutrients to promote physical health as well as supplement energy.

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 media campaigns Customers know Milo through media such as TV, Newspapers, Social Networks, and Word of Mouth And social networks account for the most % at 64%.

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

According to the customer satisfaction survey for Milo's products, the survey results are 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 percentage saying that milo doesn't have many promotions is 28% and the next 28% see Milo's promotions as normal This shows that MILO should apply more promotions to attract customers and retain customers.

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

1.3 Competitor analysis:Vinamilk:

The target customers that Vinamilk targets are children and teenagers With a variety of product lines, Vinamilk provides good product lines to consumers Vinamilk also constantly offers healthy products to meet the needs of users In terms of price, Vinamilk is also the leading brand in reducing prices and increasing production capacity at certain times Regarding distribution, Vinamilk has created a distribution network with more than 5000 stores nationwide In addition, Vinamilk has also developed its own e-commerce channel, giacmosuaviet.com.vn, to meet the online shopping needs of customers Regarding marketing, Vinamilk focuses on advertising on different channels such as television channels, newspapers, social networks, outdoor advertising banners,

From that, it can be seen that Vinamilk is a major competitor of Milo, the largest dairy 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 been active in the source of raw materials: dependent on imported materials (60%).

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 distributed from supermarkets, and grocery retailers to wholesale agents nationwide Therefore, Ovaltine's products are easily accessible to all segments of customers with different incomes in the Vietnamese market In terms of promotion, Ovaltine offers promotional messages (No need to translate, JUST LIKE) with messages that challenge Milo (Champion made from MILO) to create media effects.

In terms of strengths, the marketing strategy hits on the psychology of mothers and children to do what they like and Milo's children can become champions, which is also 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 and unremarkable The Ovaltine brand's advertising campaign only offers slogans that are symmetrical or comparable to each other, not a similar message, or a product that has much 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 In Farm, they are considered as new brands entering the Vietnamese market For TH True Milk, although entering the dairy industry quite late in 2010, TH True Milk has managed to keep up with the fast development speed with a sustainable growth rate.

2 Macro environment analysis2.1 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 the Vietnam National Institute of Nutrition to have a nutritional supplement in the morning 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 The characteristics of the age group 6-18 are the age that needs the most comprehensive development in terms of height, intellect as well as physical This is the age that needs the most energy for children's play and learning activities.

2.1.2 Family Size and Life Cycle