assignment principles of marketing marketing plan for milo

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

PRINCIPLES OF MARKETING

MARKETING PLAN FOR MILO

Sơn T Nguyễn Luân K Nguyễn Trung M Vũ Khang M Nguyễn Nghi G Cổ Ánh N Trần MKT101: Marketing Principles

Instructor: Nguyễn Minh Ngọc Quỳnh

March 18, 2023

TABLE OF CONTENTS

1 Corporate mission/ objectives 4

2 Summary of overall position and corporate strategy 5 External and Internal Analysis 6

2 Specific marketing programmes (products, place, promotion, price) 11

2 Critical success factors 17

MARKETING PLAN

MILO

Executive summary

1 Current position

- Milo is a popular chocolate malt drink that has gained a strong foothold in many countries around the world Its delicious taste and unique nutritional benefits have made it a beloved beverage for people of all ages, particularly children who enjoy its rich, chocolatey flavor

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

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

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

recognized for its ability to promote height and intelligence, making it a go-to choice for parents looking to provide their children with a nutritious and tasty drink

Overall, Milo's expansion and success are a reflection of its appeal to people

of all ages and its ability to deliver on both taste and nutrition Whether enjoyed hot or cold, Milo is a drink that has won the hearts of millions of people around the world

2 Key issues

- Milo is a well-known nutritional supplement that is commonly recommended for breakfast to provide energy for daily activities Its unique combination of chocolate and malt flavors, along with its high nutritional content, make it a delicious and healthy option for those looking to start their day off on the right foot

- In addition to its use as a breakfast supplement, Milo is also known for providing energy during sports competitions and playtime The brand has launched successful campaigns such as "Tiếp sức giờ ra chơi," which encourages children to drink Milo before engaging in physical activities to ensure they have the energy they need to perform at their best

- Despite its popularity as a breakfast supplement and sports drink, the after-school period has been overlooked as a key time to promote the use of Milo This time slot provides a great opportunity to convey messages about the importance of providing energy to children after a long day of school and extra-curricular activities By effectively leveraging this time slot, Milo can increase 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 Milo during the after-school period This could include showcasing how Milo can help children stay focused during homework time, or providing tips on how to make healthy and delicious after-school snacks using Milo as an ingredient

- By effectively leveraging the after-school period, Milo can further cement its position as a go-to nutritional supplement for children and parents alike With its delicious taste, high nutritional content, and proven track record for providing energy, Milo is well-positioned to become an even more beloved and trusted brand among its target audience

Corporate Strategy

1 Corporate mission/ objectives

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

the importance of instilling values such as respect and equality in children's attitudes towards sports, which would contribute to their overall happiness and health

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

- By emphasizing the importance of instilling values such as respect and equality in children's attitudes towards sports, Qureshi's speech reflects Nestle MILO's dedication to promoting a holistic approach to health and wellness for children in Vietnam The brand's mission is not just about providing a nutritious drink but also about helping children develop healthy habits that will last a lifetime

- In addition to promoting a healthy lifestyle, Nestle MILO has also been actively involved in community initiatives aimed at promoting education and social welfare For example, the brand has launched campaigns aimed at providing clean drinking water and basic education to underprivileged communities in Vietnam

To sum up, Rashid Qureshi's speech highlights Nestle MILO's commitment to promoting health and wellness among children in Vietnam By fostering a passion for sports and promoting healthy habits, Nestle MILO is not just providing a drink but also contributing to the development of a healthier and happier 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's product line includes condensed and powdered milk, baby foods, chocolates, candies, instant coffees and teas, soups, seasonings and condiments, frozen foods, ice cream, and bottled water In addition, Nestlé also produces pharmaceuticals

- Among Nestlé's many products, Milo is one of its most popular brands Milo is

a 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 and trusted by parents and kids alike, Milo products offer essential vitamins and minerals

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

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

to meet the increasing demand and taste of Vietnamese consumers Nestle Milo has been in the Vietnam market for more than 20 years and is a prestigious brand that leads in quality and market share in the cocoa beverage sector for children between 6-12 years old

- Milo is committed to collaborating with parents in nurturing their children to unlock their full potential The brand recognizes that academic achievement alone is not sufficient for a child to succeed and emphasizes the importance

of instilling life skills and values in children By providing a nutritious and delicious beverage, Milo aims to support parents in promoting a healthy and active lifestyle for their children

In conclusion, Nestlé SA's commitment to quality and innovation is reflected in the success of its brands, including Milo With a long history of providing delicious and nutritious products, Nestlé has become a trusted household name 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, commitment

to corporate social responsibility, versatility, and alignment with consumer trends towards health and wellness

- In addition to Nestle's marketing efforts, Milo's popularity in Vietnam can also

be attributed to its strong distribution network Nestle has established partnerships with various distributors and retailers across the country to ensure that Milo is widely available in both urban and rural areas This has helped the brand to reach a wider consumer base and build brand

recognition

- Another key factor that has contributed to Milo's success in Vietnam is the brand's commitment to corporate social responsibility Nestle has

implemented various initiatives to support the local community, including providing nutritional education and promoting physical activity among children This has helped to build trust and loyalty among consumers who appreciate 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 a convenient and adaptable option for various occasions This versatility has made it a popular choice not only for children, but also for adults who enjoy the drink as a quick and easy source of energy and nutrition

2 Competitor analysis

- In the highly competitive Vietnamese beverage market, Milo has managed to maintain 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 the diverse preferences of Vietnamese consumers

- One of Milo's key competitors is Ovaltine, which is also a popular chocolate malt drink with high nutritional value However, Milo has managed to differentiate itself by introducing new flavours and packaging formats that appeal to changing consumer preferences Milo has also invested in marketing and advertising campaigns to maintain brand awareness and loyalty among its customers

- Another competitor that Milo faces is Vinamilk, a long-standing brand trusted

by many families for their daily milk consumption To stay ahead of the competition, Milo has focused on providing quick energy and nutrition, which

is an area where Vinamilk is not as strong By emphasizing its nutritional value, Milo has positioned itself as a drink that not only tastes good but also provides essential vitamins and minerals

- TH True Milk is another strong competitor that has a high market share in Vietnam To compete with TH True Milk, Milo has focused on providing environmentally friendly products, which is an area where TH True Milk has not yet made significant investments Milo's commitment to sustainability has resonated with many Vietnamese consumers who are becoming increasingly aware 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 stay ahead of the competition, Milo has focused on expanding its distribution network to reach more consumers in different regions of Vietnam The brand has also leveraged customer data to better understand consumer preferences and needs, which has helped it develop more effective marketing and advertising campaigns

- Milo has successfully navigated the competitive Vietnamese beverage market

by focusing on innovation, marketing, and distribution strategies By offering unique products and flavours, emphasizing its nutritional value and sustainability, and expanding its distribution network, Milo has managed to maintain 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 customer data to better understand and cater to the preferences of its consumers With the increasing popularity of digital platforms, Milo may explore new ways to collect customer data, such as through social media and mobile apps By gathering more detailed information about their customers, Milo can gain insights into their preferences and tailor their products and marketing campaigns accordingly

- Another trend that Milo may prioritize is the shift towards more environmentally friendly products As sustainability becomes an increasingly important concern for consumers, Milo may look for ways to reduce their environmental impact, such as using more eco-friendly packaging materials or sourcing their ingredients from sustainable and ethical sources This can help to appeal to consumers who are increasingly conscious of their environmental footprint and make Milo a more attractive 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 in popularity, Milo may look for ways to make their products even more convenient and accessible to consumers, such as through single-serve packaging or new product formats Additionally, Milo may continue to explore ways to enhance the nutritional value of their products, such as by adding more vitamins and minerals or reducing the sugar content By staying ahead of these trends and continuing to innovate, Milo can 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 since

1934 and has been available in Vietnam for over 17 years The brand has a solid market position and has been popular among millions of children globally for a long time Milo's marketing strategies have also contributed significantly to its brand creation and building customer trust, which increases their confidence when using the product

+ The product meets the quality standard: The products of this brand are packaged and sold in many countries around the world All of them have undergone strict food quality checks and a closed production cycle to ensure safety and quality for consumers

+ Widespread distribution network: Milo is a global brand that has a presence in many countries around the world The strong distribution network

of the Nestlé brand makes it easier for consumers to access Milo products Additionally, Milo products are available through various online sales channels, supermarkets, and retail stores, making them accessible to both urban and rural customers

- Weaknesses:

+ No change in packaging or design: Milo's packaging and labeling have remained the same, while other beverage products constantly update and introduce 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 flavor ingredient Although the flavor has been improved and adjusted to meet the needs of each country, they are not significantly different This makes it challenging for Milo to compete with other brands

+ No innovation and product development: The lack of innovation and product development is another weakness that this brand faces Although Milo continuously seeks ways to develop and improve its products, it still lacks innovation and the pace of product improvement is quite slow compared

to its competitors

- Opportunities:

+ The fast-paced social growth leads to an increasing demand for nutritional products 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 environmentally safe packaging methods for its products Currently, large companies that focus on environmental sustainability and consumer health are attracting a large customer base

+ With abundant financial resources from its parent company Nestle, Milo can heavily invest in major sports events that are broadcast globally, which helps

to enhance consumer awareness of the brand

+ Moreover, the development of Internet technology creates opportunities for Milo 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

Marketing objectives

1 Financial objectives

- Increase overall revenue: Increase sales revenue by 15% within the next fiscal year by expanding distribution channels:

Launched new packaging, theme for the entire campaign "After School" "A great solution for children in providing quick and convenient meal replacements With the necessary nutritional ingredients, the product will provide energy for their activities Not only that, the product is also designed with a beautiful design and suitable for personality and their dynamism, creating a love of using the product."

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

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

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

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

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

+ Children: After a long period of stressful study at school, students often look

to sports activities such as football and basketball to relieve stress and relax However, because of the busy study schedule, they do not have enough time

to eat enough nutrients needed for sports activities This makes their bodies don'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 of bread or a packet of sticky rice may not provide enough nutrients for their next activities such as tutoring, attending gifted classes, sports, etc Therefore, these parents are always looking for a product that can meet the needs of fully supplementing the nutrients necessary for the comprehensive development of their children."

- Increase sales: Increase brand awareness by 15% within the target demographic through improved advertising and social media campaigns Implement the production

of TVCs, advertising templates, and organise events for the children after school Cooperating with primary and secondary schools to open stalls that prepare MILO products 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 new market segment consisting of children between the ages of 6 and 16, somehow as well as parents with children in primary and secondary school by buying our products for their children These individuals tend to consume milk tea, soft drinks, and similar beverages 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 to customers who purchase at least 3 of our products

- Raise brand awareness through various measures such as conducting promotional stalls and increasing advertising efforts on our fanpage One of the metrics we will use to measure the success of these efforts will be the number of followers we have

on Facebook

- Reposition Milo as an energetic beverage for students and encourage them to consume Milo as an energy and nutrition drink The strategy aims to target the parents of students who are worried about their children's lack of energy after school and 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 collaborating with primary and secondary schools, outdoor parks, and sponsoring sports