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

About MiloWith milk, chocolate, and malt as its main components, Milo is an Australian beverage product made by Nestlé and created by Thomas Mayne.. The majority of the powdered milk mar

PRINCIPLES OF MARKETING

GROUP ASSIGNMENT

MILO’S MARKET EXPANSION

STRATEGY IN VIETNAM

NAME: Bui Nhat Hieu – SS171178

Nguyen Le Phuong Uyen – SS11038

Nguyen Tan Nhat Quang – SS171191

Nguyen Thien Thanh Trung – SS171190

Lê Bá Phúc-SS171180

Subject: Principles of Marketing (MKT101)

Lecturer: Vo Thi Minh Phuong

Table Of Contents

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PRINCIPLES OF MARKETING

I Overview of VietNam dairy market

A big prospective «economic pie» with more than 97 million people is now being contested by more than 50 dairy enterprises in the Vietnamese dairy sector When compared to other Southeast Asian nations, Vietnam's dairy business is growing at a rather rapid rate As of 2017, Vinamilk has

a market share of 48.7% of the milk market, followed by Dutch Lady and Nestlé

II About Nestlé

Founded in Penang, Malaysia, as the Anglo-Swiss Condensed Milk Company in 1912, Nestlé later grew and extended to Kuala Lumpur Up

to this point, Nestlé had 6 distribution agents across the world and operated 8 sizable plants for the production of its goods As a public business with several companies and websites in 104 countries, Nestlé

SA currently generates 71 billion USD in annual revenue

III About Milo

With milk, chocolate, and malt as its main components, Milo is an Australian beverage product made by Nestlé and created by Thomas Mayne This product was initially launched in 1994 as milk powder and has since spread to numerous nations, including Malaysia, Singapore, China, Japan, India, Vietnam, etc The brand name is taken from the corporate name The majority of the powdered milk market share in Malaysia is held by Milo milk, making Malaysia the nation that consumes the most Milo globally Similar to places like Singapore, Vietnam, and India, Milo has established itself as a staple beverage in every household and has risen to become one of the top 10 dairy brands

in the world, securing its position as a market leader

Milo has been actively incorporating minerals into their products since

2010 Additionally, the company actively introduced new items and altered the looks of existing products

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PRINCIPLES OF MARKETING

IV Target market analysis

Persona The fit of the

segment with the

brand’s identity

Size and Grown Structural

attractiveness

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PRINCIPLES OF MARKETING

Bao Ngoc Genz is instantly

aware of the target

market for the

product which is

kids and young

adults

Particularly young

people like Bao

Ngoc aged 6 to 14

since children at

this age arc are

more active it is

important to

support their

growth and activity

⇒ Suitable

About 15.5% of children aged 6-14 in Vietnam need to promote the process of development and growth This age group represents both the largest prospective client base and can grow to be brand loyalists

=> Large segment

Milo is a company that makes an investment in social media marketing parents will have a significant indirect impact

Milo may therefore draw parents through marketing techniques

=> Easy to communicate (indirect), Many competitor

Quoc Bao Milo gives kids the

nutrients they need

to thrive need to get

through a

demanding day of

work or school

Customer Quoc

Bao belongs to the

GenZ generation

Milo will be a good

option for this age

group to recharge

for a demanding

workday

=> Relatively

suitable

20% of the Vietnamese population

is now GenZ-aged, and this figure appears

to be increasing year after year This group

of people spends roughly 2,500.00 VND each month on dining and shopping

However, the GenZ generation frequently innovates on common items to prevent monotony, so they are not steadfast brand supporters

=> Medium segment

Social networks,

in particular, have greatly advanced communication tools nowadays The GenZ generation is known for its propensity to spend a lot of time

on social media Because social networks are a comfortable and convenient location to purchase As a result, using widely used and social media

methods on social networks, it is extremely simple for people to connect with the brand

=> Easy to communicate (direct), many competitor

John Tran A product for

children and the

Gen Z crowd is

called Milo John

Tran is a wonderful

example of the Gen

X generation; he is

the one who

consistently favors

expensive goods

that are also

outstanding in

quality However,

Milo's products

seldom satisfy

everyday

necessities and

aren't particularly

appropriate for this

age

=> Not suitable

Gen Xers make up John Tran's generation With nearly 35% of Vietnam's population belonging to this generation, it is the biggest generation

However, they are devoted to the brands they have used and frequently purchase items like functional meals to safeguard their health

Milo-branded goods

=> Very small segment

Reaching people

in this market is challenging for companies Due to their tendency to stick with brands they have used in the past and other consumption habits, Vietnam's market share is quite small

=>Hard to communicate Many competitor

V Brand extension and product strategy

Brand extension and product strategy

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PRINCIPLES OF MARKETING

In addition to the younger generation and low-to high-income consumers who enjoy trying out new items, youngsters aged 6 to 14 make up the Milo brand's target market The new product will not only be a nutritious beverage produced from organic barley, but it will also include less sugar

to help fight obesity In addition, the new product switches out plastic straws for paper ones in an effort to reduce environmental pollution and eliminate hundreds of tons of plastic garbage

Brand elements

The name of the product, «Milo-Low Sugar» encapsulates all of its advancements The brand name «Milo» is followed by the product's new feature, «Low Sugar,» which is the ideal way to describe the advantages and functioning of the new item Additionally, paper straws bearing the brand's intended environmental conservation message have totally taken the place of plastic straws

VI Competitor and positioning analysis

Competitor

The dairy industry in Vietnam is expanding and thriving year after year

● Direct competitors

When discussing Milo's rivals, it's hard to ignore Ovaltine, whose advertising slogans are entirely at odds with Milo's The Swiss company FrieslandCampina has the Ovaltine brand of cocoa barley drink, which is

in the same healthy drink category for kids Ovaltine is a competitor that

is younger than Milo in age

● Indirect competitors

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

Milo, though, is presently up against some fierce rivalry from other brands Customers have a lot of options, so businesses must have a distinct positioning plan that is acceptable for them and gives them an edge over rivals

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PRINCIPLES OF MARKETING

Location map:

VII Marketing mix

Product

Milo product lines are currently available in powder, beverages, cereals, and snacks Products come in a wide range of sizes and quantities, and prices also change to accommodate the demands of various items depending on certain tasks Nearly every Milo product line has the same design To make it simple, quick, and convenient for buyers to learn about the product, the package also concisely outlines its name, intended application, and primary ingredients

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

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

The image of lively youngsters doing sports is prominently shown on the green backdrop of the product, which also has fundamental and important product information for consumers, such as the expiration date, primary components, and product name, to help them understand, assess, and make purchases In order to give customers the best possible experience, the product's design is also quite varied in terms of its internal components and functionalities Additionally, the firm is very sensitive when introducing Milo milk in cans so that the rucksack won't deform like a paper box when placed in confined spaces like a briefcase

In the meantime, Milo powdered milk products are packed for ease of use, cost effectiveness, and storage

Additionally, Milo draws greater notice when it modifies product specifics like straws Many individuals have been so intrigued by the novel concept of «4-way straws» that they are unable to control their curiosity and must purchase the product right away Milo, on the other hand, is a company that consistently follows industry trends The product's packaging is also given attention throughout the design phase

to facilitate convenient purchase, usage, and transportation

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

Price

The Milo product range is targeted towards parents of children between the ages of 6 and 14 who have incomes ranging from low

to high

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PRINCIPLES OF MARKETING

Place

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

whenever an intermediary agent is chosen as the primary distribution route

Promotion

Outdoor communication

In many nations, Milo is well known for supporting sports programs, particularly competitive athletic activities

Social media

One of these is the «Champ in Children» campaign that Milo unveiled in 2020 With a focus on children aged 6 to 14, this campaign has had a significant influence on awareness, an active lifestyle, regular exercise, and sports in the Vietnamese community and has gained a lot of traction on social networking sites like Facebook

VIII Conclusion

Both Nestlé and the Milo brand, in particular, have had great success with their marketing campaigns The majority of product lines are of safe origin, very useful, and guarantee consumer health Additionally, Milo dairy product lines have readily asserted their place in the Vietnamese dairy sector and been brought closer to customers thanks to the right marketing mix approach

IX Reference

1 Anon., 2018 BrandVIETNAM [Online]

Available at:

https://www.brandsvietnam.com/14751-Nganh-sua-Viet-Nam-dan-thay-d oi-vi-the

[Accessed 30 6 2022]

2 Anon., 2018 doanhnhasaigon [Online]

Available at:

https://doanhnhansaigon.vn/kinh-doanh/nganh-sua-viet-nam-dan-thay-do i-vi-the-1084053.html

[Accessed 29 6 2022]

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PRINCIPLES OF MARKETING

3 Anon., 2019 plo [Online]

Available at:

https://plo.vn/hanh-trinh-25-nam-va-10-5-ty-hop-milo-cho-tre-em-viet-p ost516793.html

[Accessed 2 7 2022]

4 Anon., 2021 Dairyvietnam [Online]

Available at:

https://dairyvietnam.com/vn/TT-Sua-Viet-nam/Thi-truong-sua-nuoc-Cuo c-chien-thi-phan-ngay-cang-nong.html

[Accessed 30 6 2022]

5 Anon., 2021 ViETSTOCK [Online]

Available at: https://finance.vietstock.vn/du-lieu-vi-mo/43/thu-nhap.htm [Accessed 2 7 2022]

6 Hạnh, L., 2021 marketingai [Online]

Available at:

https://marketingai.vn/chien-luoc-marketing-cua-milo-con-duong-tro-tha nh-chi-dai-cua-nganh-fmcg/

[Accessed 29 6 2022]

7 Hiền, L M., 2022 brandsvietnam [Online]

Available at:

https://www.brandsvietnam.com/congdong/topic/324225-Nestle-MILO -su-dung-ong-hut-giay-bao-ve-moi-truong

[Accessed 2 7 2022]