Currently on the market, most dairy free milks are original flavor, developing vegan milk with cocoa flavor will provide Milo an opportunity for market growth.. On the report of a survey
INTRODUCTION & EXECUTIVE SUMMARY
Introduction
Nestlé, a global FMCG giant, has had a remarkable presence in Vietnam for over a century Its journey began in 1912 with the establishment of a representative office in Saigon, marking the commencement of a century-long legacy of growth and contribution to the Vietnamese market.
Milo milk was first invented by Australian inventor Thomas Mayne in 1934, after which Nestlé acquired the formula for mass production and distribution worldwide Nestlé's Milo has been present and continuously growing in the Vietnam market for more than 17 years and is a prestigious brand, leading in quality and market share in the nutritional cocoa drink industry for children aged 6-12
As a subsidiary of Nestlé, Milo inherited much of Nestlé's vision: To be a leading, competitive, nutrition, health and wellness company delivering improved shareholder value by being a preferred corporate citizen, preferred employer, preferred supplier selling preferred products
Milo also works with its owner brand core value: Creating shared value, which Nestlé ties to all of the company's operations According to their commitment to Vietnam, Milo is also constantly creating playgrounds and programs for children, contributing to building a healthy and dynamic generation of young people, completely true to the core values that Nestlé has set.
Executive summary
As consumers in Asia are including more dairy alternatives in their diet, Nestlé is launching plant-based versions of some of its most-loved brands in the region There is a new plant-based version of Milo, the world's leading chocolate malt beverage that is enjoyed in many Asian countries
It has launched in Asia, starting first in Malaysia, a country with generations of Milo fans going back 70 years to its launch there in 1950 It has appeared on shelves since April This new version replaces the milk in the original recipe with almond and soy, but the other two core ingredients malt and cocoa remain the same Each bottle offers 6.5 – – grams of protein and is also low in sugar, with a combination of vitamins and minerals to support effective energy release
In Vietnam, more and more people are shifting to more plant-based diets, so this will be a potential product to develop in this market Currently on the market, most dairy free milks are original flavor, developing vegan milk with cocoa flavor will provide Milo an opportunity for market growth Therefore, we came up with a marketing plan with the expectation of achieving 1.17% share of the Vietnam drink milk market through unit sales volume of 19.911 million liters in the first year At the same time, aim to maintain positive, strong growth each quarter (notwithstanding seasonal sales patterns)
SITUATION ANALYSIS & SWOT
Market Summary
The profile for the typical Milo customer consists of the following demographic, psychographic, and behavioral factors:
Demographic Income: Mainly dependable on family
Income: Unstable, may have support from family
Income: Stable, yet must take care of the family
Income: Stable, high affordability for products
Lifestyle: Mostly prefer delicious drinks and are not aware of healthy products
Lifestyle: Start care the “green” lifestyle and healthy products and ingredients, willing to try something new
Lifestyle: A healthy life is a big concern, searching more for healthy products, open to try
Lifestyle: Take serious care about health, not willing to try something new
Benefits sought: refreshments, looking for a new milk taste, delicious, easy to drink, cheap price
Loyal status: low, always looking for new things
Benefits sought: refreshments, looking for a new milk - new taste, good for health, trendy and have a reasonable price
Loyal status: low to medium, often try new things
Benefits sought: refreshments, looking for a new milk, good for health, reasonable price
Loyal status: medium, may consider new things
Benefits sought: refreshments, prioritize products' quality over price that are good for health
Loyal status: medium to high, based on their habits and experiences
Milo is providing the community with a wide range of beverages made from cocoa The company seeks to fulfill the following benefits that are important to its customers:
• Rich nutritional values: Customers buy a drink to benefit its vitamins, minerals, and energy, especially those seeking plant-based ingredients For “Milo sữa hạt”, it’s lower in fat and sugar, therefore, it is great for people with lactose intolerance or those seeking a dairy free alternative
• Delicious taste: One purchasing a beverage wishes for a good taste of the drink in order to drink it on a daily basis
• Inexpensive price: Buyers cannot afford a daily beverage with a large amount of money, which could cause them to be less loyal to a brand
• Attractive packaging: An eye-catching design makes the customers, especially children, pay more attention to products produced by Milo
According to a recent survey by Global Data, more than 40% of consumers in Asia are transitioning to a plant-based diet, with 11% choosing vegetarian and vegan foods At the same time, the demand for plant-based milk alternatives is also increasing, due to the delicious taste and great nutritional benefits that those goods offer
Plant-based milk alternatives offer health benefits for the elderly and individuals managing chronic conditions like diabetes and high cholesterol Their popularity is also driven by an increase in milk allergies and lactose intolerance These factors contribute to the growing demand for non-dairy milk substitutes among consumers seeking healthier and specialized dietary options.
In Vietnam, the intent of consuming plant-based milk is also increasing sharply On the report of a survey of Viracresearch in 2019, up to 66% of Vietnamese consumers want more products made entirely from natural materials.Alternatives to cow’s milk such as soy milk, almond milk, rice milk, oat milk, coconut milk, cashew milk, etc will become progressively attractive to consumers, with different needs depending on the region
Plant-based drinks, including milk and soy milk with rice, nuts, grains or seeds added, have become a new trend in Vietnam, according to the latest monitor report from market research firm Kantar Worldpanel The growth rate of alternative milk has been declining since 2013 But it is the only product line with the CAGR that has steadily increased from 2016 onward, when the consumer demand for dairy products increased following the comparative information on nutrient levels for animal milk lines It is forecast that in 2018-2022, the double growth rate of alternatives will reach 15%, the highest in traditional milks
SWOT Analysis
The following SWOT analysis captures the key strengths and weaknesses within the company and describes the opportunities and threats facing Milo
Brand image is excellent CRP jumped up 6 places and reached by 69% (Kantar Worldpanel’s Brand Footprint 2015) Milo is a familiar brand with consumers in Vietnam, when a new product is launched, it will save a part of advertising costs for the product Nestlé's R&D center in Singapore serves as the regional innovation hub for the development of plant-based dairy alternatives in Asia This new type of product has been tested in the Malaysian market since April 2021 Thus, it is possible for Milo to learn from experience and limit the risks when launching the products in the Vietnam market within the next year
Milo has not yet mastered the domestic source to make nut milk
The cost of plant-based ingredients from nuts can be more expensive than cow's milk
As consumer preferences evolve, the Asia region is witnessing a significant shift towards plant-based diets GlobalData's 2021 survey reveals that over 40% of consumers are embracing this trend, with 11% adopting vegetarian or vegan lifestyles and a substantial third transitioning to "flexitarian" diets that prioritize plant-based options This growing preference for plant-based products is driven by the increasing demand for dairy alternatives that offer both taste and nutritional value, as families seek healthier and more sustainable dietary choices.
The plant-based milk market is unsaturated, with a lot of potential for Milo to enter
Vietnamese consumers, especially between the ages of 5 and 18, are used to the typical Milo flavor; they may not be familiar with the combination of cocoa and nut milk Moreover, many customers still assume that plant-based milk is not as delicious and nutritious as cow's milk
On the market, there are many products made from nut milk with different flavors from many famous brands such as Vinamilk, TH True Milk, Vinasoy This could be a big challenge for “Milo sữa hạt” product when entering this new market.
Besides, the market size of domestic plant-based milk is still rising, but only accounts for a small proportion (12% in 2018 by Viracresearch ).
The supply of almond raw materials in Vietnam may not be able to meet Milo's production needs, leading to dependence on imported raw materials
The Covid-19 outbreak may put pressure on the process of launching this new product.
Competition
Arcording to VIRAC in 2018, the domestic nut milk market accounted for 12% of the liquid milk market structure
Vinasoy, a soymilk producer from Quang Ngai Sugar Joint Stock Company, has achieved significant market growth By the end of 2019, Vinasoy's milk consumption had risen by 13%, with a corresponding 15% increase in revenue (Nielsen).
Moreover, the nut milk market really started to kick off when Vinamilk and TH True MILK invested and launched diversified plant-based products in 2018
TH true NUT product line from TH true MILK was the pioneer in the nut milk market with fresh milk flavor combined with heart-healthy macadamia nuts and date palm fruit that brings natural sweetness Shortly afterwards, the trinity of Vinamilk’s soymilk products combined with walnuts, almonds and red beans has also drawn consumers’ attention for its delicious, easy- -drink, but nutritious from these nuts to
In addition, with long-term participation in the market, Vinamilk and TH true MILK have gained certain competitive advantages, preventing competitors from entering the industry Given the availability of raw materials, dairy products from these two brands offer a more competitive price than Milo (12500 VND - TH Nut MILK 180ml and 6500 VND - Vinamilk 180 ml) Moreover, with the diverse milk flavors and designs, it will also be a big challenge for “Milo sữa hạt” product when entering the Vietnam market.
Product Offering
Product’s name: “Milo sữa hạt” - Milo dairy free almond
Product offering: MILO Dairy Free is made with plant ingredients and does not contain animal derived ingredients Therefore, this variant is an alternative beverage for those who are lactose intolerant or who are seeking for plant-based or dairy-free options of their favourite MILO beverages
The meaning of dairy-free and plant-based:
• Plant-based: Made with plant ingredients and do not contain animal derived ingredients Plant-based products in general can be a good source of vitamins, minerals, dietary fiber, and in addition healthy fats
• Dairy-free: Do not contain dairy products such as milk, cheese, yogurt, butter and cream
Some of nutrients providing in product:
• Good Source of Plant-based Protein: Packed with 6.5g of plant-based protein, per serving (225ml) from almond and soy, equivalent to protein in 1 egg
• Low in fat: Meets Healthier Choice Logo (HCL) criteria It is lower in fat and sugar than HCL-free products in the same product category
• MILO Nourishing Energy: Packed with essential nutrients including B
Vitamins that help release energy from the foods you eat
• An Intolerant Lactose Alternative: Great for those who are lactose intolerant or who are looking for a dairy-free alternative
There are some keys that the company needs to consider to succeed in the Vietnam market There are three main points:
• Target Customers : any product should be launched because of customer need - the success or failure of any product is largely dependent on whether people use it or not Choosing the right target customers is an advantage for upcoming products
• Competition: Businesses need to pay attention to their competitors for similar products at both their price points and their target customers Get to know other businesses and identify gaps in their products that you can fill
• Finance: The financial resources of enterprises for their products need to be calculated properly It is necessary to have provisions for financial resources to avoid risks
Although it is a product launched in Malaysia, when brought to the Vietnam market, Nestlé has important problems to solve as follows:
Most Vietnamese consumers are used to Milo's original taste, so the company's job is to convince customers to accept the new taste of the product and make essential adjustments to suit Vietnamese consumers’ favours
Currently, the source of raw materials for the production of nut milk is limited This is also an important issue that Nestlé needs to resolve, finding ways to develop local sources of raw materials to cut costs of importing and transporting input materials because Vietnam's raw nut milk industry is still young and are on the way of standardizing to improve the quality of the orchard as well as the seed quality According to a research by VIRAC in July 2020, the input of plant-based milk materials such as macadamia nuts, walnuts, etc has not yet met the domestic quantity, almost having to import 100% of foreign materials For example, the input supply of TH True Milk, macadamia farms have been grown in the Central Highlands for more than 10 years, the planting area has reached nearly 2,500 hectares and is considered to be of good quality However, it is still not able to meet the demand for input materials for domestic production Vinamilk's new nut milk line, with ingredients mainly from walnuts, almonds and red beans, must also be imported mainly from US farms.
Critical issues
Although it is a product launched in Malaysia, when brought to the Vietnam market, Nestlé has important problems to solve as follows:
Most Vietnamese consumers are used to Milo's original taste, so the company's job is to convince customers to accept the new taste of the product and make essential adjustments to suit Vietnamese consumers’ favours
Nestlé faces challenges in securing raw materials for nut milk production due to the limited domestic supply and high import dependency Domestic raw nut milk production is nascent, with ongoing efforts to standardize quality According to VIRAC, Vietnam imports almost 100% of its plant-based milk inputs, including macadamia nuts and walnuts Despite TH True Milk's efforts to cultivate macadamia farms in the Central Highlands, they remain insufficient to meet domestic demand Similarly, Vinamilk's nut milk line relies heavily on imported ingredients from the US These challenges necessitate the development of local raw material sources to reduce import costs and improve sustainability.
MARKETING STRATEGY
Mission
“MILO® strives to inspire everyday Vietnamese to be all that they can be Our mission is to fill you with energy not just positive energy that gives you the self-belief to – perform at your best, but also physical energy to get through your increasingly active, busy days MILO® supports your drive to succeed and embodies the positive attitude and values you’ll need to get there so that you can enjoy the true achievement of reaching your personal best in sport and in life”.
Objectives
We estimate the Targeted Volume Sold based on the formulation provided by BrandsVietNam Besides, the data are collected from multiple reports and be calculated thoroughly to be as exact as possible since there are not many recent reports due to Covid-
• Estimated Sales based on expected target market share
Market Size (Volume) x Targeted Market Share % = Targeted Volume
Targeted Volume x Price = Gross Sales Value
• About Estimating the Market Size (Volume)
The Vietnam Dairy Association stated that despite the impact of the epidemic, milk production in 2020 would still grow well In which: liquid milk production is estimated at
1.702,4 million liters, up 1% compared to 2019 Powdered milk production is estimated at 131.6 thousand tons, up 9.1% over the same period
• About Estimating the Targeted Market Share
* Nestlé’s Market Share in liquid milk
VietNam’s liquid milk Market share in 2019
According to Euromonitor, Nestlé’s liquid milk market share is kept at a stable level, around 7% in 2019
* Almond milk Market share in liquid milk
Arcording to VIRAC in 2018, the domestic almond milk market accounted for 12% of the liquid milk market structure, with a compound annual growth rate CAGR of 18%, the highest among liquid milk lines With the CAGR of 18%, we estimated that the domestic nut milk market accounted for 12% x (1+18%) 2 in 2020
We have set aggressive but achievable objectives for the first year of market entry
• First - year Objectives: We are aiming for a 1,17% share of the Vietnam liquid milk market through Targeted Volume of 19,9115 million liters
• Second - year Objectives: We are aiming for a 1,38% share which is equivalent to 18% growth per year.
• Achieve a steady increase in market penetration
• Maintain positive, strong growth each quarter (notwithstanding seasonal sales patterns)
• Maintain a significant research and development budget (as a percentage relative to sales) to spur future product developments.
Target Market
Demographic Income: Unstable, may have support from family
Income: Stable, yet must take care of the family
Lifestyle: Start paying attention to the
“green” lifestyle and healthy products, be willing to try something new, care more about nutrition ingredients
Lifestyle: A healthy life is a big concern, searching more for healthy products, open to try
Benefits sought: refreshments, looking for a new milk - new taste, good for health, trendy and have a reasonable price
Loyal status: low to medium, often try new things
Benefits sought: refreshments, looking for a new milk, good for health, reasonable price
Loyal status: medium, may consider new things
Nielsen-US research indicates that Vietnamese consumers are increasingly prioritizing natural and health-conscious products Around 66% seek products with all-natural ingredients, while 79% actively adjust their diets for health benefits Notably, plant-based milk has emerged as a preferred choice, with nearly all Vietnamese (98%) perceiving nuts as a source of essential nutrients for daily health, beauty, and vitality.
They are “fashionable” customers who are well-informed, caring about their health and most of them are not afraid to use new products Modern people require liquid milk that not only benefits your beauty but also your health Plant-based milk, cereals with plant origin meet this demand and "this is the trend of green consumption, the trend of the future" As a result, they are actively changing their consuming habits to avoid health problems, towards a green lifestyle that repels cancers, heart diseases and animal milk allergies
In particular, the group of Gen Z cares a lot about antibiotics as well as growth hormone in cow's milk, safety issues, green life and humanitarianism While the group of Gen Y is seeking for an effective way to nurture the body from the inside, the nutritious ingredients such as protein, vitamins, fiber, and antioxidants contained in the products when having signs of age and health problems
In conclusion, the company came to a decision of choosing the differentiated marketing strategy to focus on groups of gen Z and gen Y for the “Milo sữa hạt”.
Positioning
The “Milo sữa hạt” is made with nutritious almond and tasty soybeans but still maintain the original flavour of Milo The product is low in fat while providing a good source of plant-based protein The “Milo sữa hạt” is ideal for those who are lactose intolerant and those who are embarking on a plant-based diet
The “Milo sữa hạt” will not only provide the feelings of peace in mind but also nourish the body with ingredients which are rich in nutrition and protein Ensuring your everyday positive attitude when having known that you are on the right track for pursuing such a healthy lifestyle
- Compared to other competitors, Milo s“ ữa hạt” is the richest in protein as one bottle contains 2,8-gram protein per100 ml, nearly three times more than that in TH True Milk (1,1-gram protein per 100 ml) (TH True Milk, n, d) –
Marketing strategies
Brand name: The MILO brand is named after a legendary athlete from Croton, a small town in ancient Greece, in the 6th century BC (Milo website) Today, it is Milo that is the world’s leading chocolate malt beverage that can be prepared with hot or cold milk or water
Slogan: The slogan of “Milo sữa hạt” illustrates the spirit of nurturing the body from the inside
Packaging: Using plastic bottle packaging with less than about 40% other normal plastic bottles, towards the company's sustainable development goals
We keep the traditional Milo logo on the product packaging and continue to design the paper packaging To move into the product growth phase, we continue to research and expand the depth of the product mix, launch and upgrade multiple versions for the campaigns Product packaging will be designed to suit each occasion/ event
In quarter 1, we mainly focus on packaging design to serve at Tet holiday
In quarter 2 and 3, we expanded the depth of product mix and packaging version to give our customers more choices
In quarter 4, we continue to make more eye-catching versions of the product's depth for annual special occasions in this quarter
We have adopted a Value based-pricing method and combined with the Penetration pricing strategy for the first quarter at 83% of the original price After that, we sell the product with a retail price of 15000 VND, combined with the Product bundle pricing strategy These strategies are used to gain market share from competitors
In the introduction phase, only familiar and loyal selling points in major provinces and e-commerce channels are used After that, we will expand distribution channels to other traditional channels in the growth phase, and continue to distribute to vending machines, etc We also ramp up operations in modern distribution channels, until we cover all major markets Especially, we cooperate with our key accounts in large cities to make a new and close-knit channel Finally, we plan to arrange special payment terms for retailers that place volume orders
As all stated above and due to the Consumer marketing channels, we have adopted an
Intensive distribution strategy and maintained a non-stop growing network with their distributor partners
We push our products to retail channels through the use of various forms of POSM (Point of Sales Materials), but sometimes change their concepts to make them new and interesting, contributing to increasing brand awareness as well as supporting resources for distribution channels
• Poster: appear on LED screens at mini to big supermarkets
• Booth + test: give sampling at booths, also make mini games to exchange gifts
• Divider: well-designed and suitable size to appear on the shelves at mini to big supermarkets
• Gondola end: creative design with Milo's signature colors and placed at the begin or end of the shelf in mid- nge supermarkets or large supermarkets ra
• Island display: build a display island with a uniform design at supermarkets in 3 days
• Dangler: pretty and attractive design, hanging on the ceiling of large supermarkets (Van Hanh Mall, Vincom, Aeon, Saigon Centre…)
Otherwise, we support a 10% commission for large retailers and distributors Display shelf support for dealers: Apply the program to give away shelves for the first display order
Conditional commission percentage on excess revenue and tiered commission plan
We work with newspapers to support our press conference We run TVC on digital platforms, collaborate with programs, groups, fanpages, influencers and hold related online campaigns to promote the product
We organize campaigns related to environmental protection, sponsor competitions, events, and cooperate with partners to hold health-related events
In the early phase in quarters 1 and 2, we test our products by sampling and pushing flash sales on double days Then, in quarters 3 and 4, we create a lucky award campaign
Give samples at selling points and place booths with an event to attract customers so that customers can easily try out products and make purchasing decisions
We maintain contact with customers by contacting via email We will send notifications for product launches, holidays and anniversaries, and send codes and QR codes for discount vouchers.
Marketing Research
We will have our products tested with focus groups of target customers, including those who are not interested in plant-based milk and those who have already had needs and habits of using plant-based milk By which, we will get feedback from customers on product quality (nutrition, taste), packaging and design, and then make the improvements
To optimize our marketing strategy, we will conduct product testing with diverse users to assess consumer perceptions of competing milk brands Market research will evaluate the efficacy of our messaging and media channels in driving brand awareness We will also monitor the market's response to our initiatives to gauge their impact and identify areas for improvement.
ACTION PLAN
Packaging: New packaging for 2 packs of 6 bottles (Tet concept) X 250.000
Price Market penetration pricing strategy: 83% of the price for the first 15 million bottles
Product bundle pricing strategy: 4,000 off for 6 bottles 38.250.000
- Sign distribution/ commission contract with retailers/ distributors
- Prepare enough products to distribute to Loyal retailers/ distributors of Milo, Nestlé
(CVS, Supermarkets, etc) focus on 5 big cities
- Officially sell products on e- commerce channels (Shopee,
- Expand retail partners in 5 big cities and nearby provinces (from traditional to modern channels)
- Continue to sell products on e-commerce
- Distribute “Milo Sữa hạt” Tet version at major supermarkets and on e-commerce x
• Use of various forms of POSM: Poster, booth + test, divider, gondola end, island display, dangler
• Support a 10% commission for large retailers and distributors
• Display shelf support for dealers: Apply the program to give away shelves for the first display order
• Conditional commission percentage on excess revenue and tiered commission plan
Native ads for new products for 3 days
- Produce TVC 10s with 01 celebrity to introduce new product
10s TVC on TV: “Bản tin thời sự” at 19h on VTV1 and
- Partner with Thuy Minh to advertise Milo s“ ữa hạ ”t on
Facebook/Instagram to review/post product advertisements
- Cooperate with Duy Khanh, Huynh Lap, Quang Trung, Minh Du, Kha Nhu,
BB Tran, etc to make Tet comedy videos advertising
Skippable in-stream ads YouTube: 850.000 views + Facebook CPM plan:
Run 10s TVC on TV: “Bản tin th i sờ ự” at 19h on VTV1 and VTV3, “Sao nhập ngũ”,
Influencers are people who have a green lifestyle, care about their health on social networking platforms to increase brand recognition:
+ Giang ơi (Youtube) + Dino Vu (Youtube) + Tun Pham (Tiktok) + Ninh Tito (Youtube)
- Announce the launch date of the new product on press in 3 days
- Press conference for launching “Milo sữa hạt”
(renting venues, invite guests, hiring agencies, etc)
“Milo sữa hạt” for 2 regular milo packs (50.000 samples)
- Promotion: Buy paper pack 12 bottles for 20 red envelopes of “Milo Sữa hat”
2 times with 70% of the price (Shopee, Tiki, Lazada)
- Give 50,000 small trial cups at the selling points at supermarkets, consult and sell products if customers’ need arises
- Give 50,000 small trial cups at supermarkets, Tet festivals in the food court, consult and sell products if customers’s need arises
- Email to announce the launch of new products to Milo,
Nestlé customers with invitation to try the product
- Send Tet greeting emails with pictures of new product packaging with a
“call to action” to buy
“Milo Sữa hạt” as Tet presents
Celebrate International Women's Day with Nestle! As a special treat for our valued female customers, we're gifting 50,000 bottles of "Milo Sữa hạt" to the first 50,000 who scan the QR code at our participating major supermarkets (Coopmart, Coopxtra, Gogo, Vinmart, etc.) Surprise your loved ones with this refreshing and nutritious beverage on this special day, and don't miss out on this exclusive offer.
Product: The overall purchasing power of the whole country on the occasion of the
Lunar New Year 2021 increased from 3-5% compared to the normal month and increased 7-10% over the same period in 2020 despite the significant destruction of Covid-19 to the economy (Nguyễn Quỳnh, Vov.vn, 2021) Thus, we decide to create eye-catching packaging following the Tet Concept to stimulate consumption
Price: In the introduction phase, we decide to apply Market penetration pricing strategy in order to quickly gain market share and give customers opportunity to try our new product Beside that, we also apply Product bundle pricing strategy to encourage the purchasing power of customers
Place: We start to sell our product in 5 big cities to both gain a certain number of customers and collect different feedback as an opportunity to better our product It also paves the way for us to expand our distribution channels to other nearby cities in the future
In 2020, Vietnam had 49 million online shopping users, the third highest in Southeast Asia after Indonesia (137 million) and the Philippines (57 million) Along with the impact of the Covid-19 pandemic, shopping on e-commerce platforms has significantly increased (Appota, 2021) Facebook's report in late June 2021 showed that e- commerce shopping will become a new consumer trend rather than just a form of coping during the epidemic Accordingly, 81% of consumers say they have changed their shopping habits since the outbreak, 92% of them say they will continue this new behavior
21 long-term, whether it is still epidemic or not E-commerce platforms such as Shopee, Lazada and Tiki are the largest e-commerce platforms in Vietnam (Ranked in the order of popularity in different cities ranging from high to low: Shopee, Lazada, Tiki) (Decision Lap, 2021) These exchanges are also gaining more attention through double-day sales (January 1, February 2, March 3, etc.) with bustling discussions on social media sites Therefore, we decided to distribute "Milo sữa hạt" products to these trading floors to get the best business performance
Nestlé and Milo strategically employ a push strategy by establishing strong relationships with intermediaries through attractive incentives such as a 10% commission Furthermore, they leverage point-of-sale marketing materials (POSM) to enhance product visibility and drive sales at the retail level, augmenting the effectiveness of their push distribution channel.
Pull Strategy: In the first phase, we aim to cover the market and bring the image of the products to the target customer as soon as possible In order to do that, we will use IMC (Integrated Marketing Communications) by collaborating on 5 main tools of Promotion such as Advertising, PR, Sales Promotion, Personal Selling and Direct Marketing This will help us quickly reach out to our customers, have them be awareness of the existence of “Milo Sữa hạt” and convince them to try it out Percifically, we will arouse their curiosity first by some posts and ads on social media and press to gain bigger attention the next time we launch our product By the time launching our product, we will use social media ads, sampling, email marketing, OOH, running TVCs in TV channels, etc to attract customers and urge them to try out “Milo Sữa hạt”
In addition, according to Google Analytics in 2019, newspapers such as Kenh14, Gia Dinh, Dantri, Vietnambiz, Cafebiz all have stable traffic information (from about 500 million pageviews for large newspapers such as Kenh14, Dan Tri to about 30 - 15 million pageviews for smaller museums) Moreover, in these newspapers, most readers aged 18 -
35 are also the target customers of the "Milo sữa hạt" That is why we chose these newspapers to inform about product information and run advertisements for "Milo sữa hạt"
According to Nielsen, up to 92% of customers say they trust the advice from KOLs, influencers more than the traditional ads This highlights the importance of influencers in contributing to the effectiveness of a successful media campaign Besides, the effectiveness of influencer marketing has been proven by the success of brands such as Shopee, Tiki (Tiki’s product purchases increased by 2.7 times, app installs increased by 17% and sales increased 3.3 times after the "Tiki đi cùng sao Việt" campaign) or Momo when using famous influencers such as Duc Phuc, Erik, Quynh Anh Shyn, Tran Thanh - Hari Won and achieved many effects (the “Lắc Xì 2021” program has had 39 million
“Heo Vàng” donated to the program, season 3 has attracted more than 11 million players with nearly 400 million shakes; more than 8 million Momo wallet users have used the Money Transfer / “Lì Xì” feature…) Thus, we believe that using influencers and KOLs will surely be efficient to our promotion plan
Product - Launch the carton box of 24 bottles - Product mix strategy: expanding the depth by launching
“Milo sữa hạt” of 1 Liter package x x
Price - Stop using Market Penetration Pricing Strategy, sell product with the price of 15.000
- Continue to use Product bundle pricing strategy , minus 20.000 VND when buying the package of 24 bottles x
Place - Find new partners and sign distribution/commission contract with them
- Distribute the “Milo sữa hạt” to vending machines which are located near potential customers such as Gym center, Yoga center, Stadium, Pitch, etc and canteen of business partners, etc x
• Use of various forms of POSM: Poster, booth + test, divider, gondola end , island display, dangler
• Support a 10% commission for large retailers and distributors
• Display shelf support for dealers: Apply the program to give away shelves for the first display order
• Conditional commission percentage on excess revenue and tiered commission plan.
+ “Sống xanh” challenge: lose fat, live healthily with
“Milo sữa hạt” on Facebook
+ The total value of rewards is 1 billion
VND (Include treadmill, Iphone 14, laptop, cash, voucher for using Milo Product in 3 - 12 months)
Influencers to join the challenge:
+ A Síng đi Đại Hàn (Fb)
+ Produce 15 seconds TVC to enhance consumers’ awareness of the benefits when using “Milo Sữa hạt” and introduce new version (A package of 1 Liter) with 02 Celebrities
TVC on TV: “Bản tin thời sự” at 19h on VTV1 and VTV3, “Sao nhập ngũ”, “Đường lên đỉnh Olympia”, “Bữa trưa vui vẻ”, “100 triệu 1 phút”
“Vòng xoay ký ức” to remind customers who are above 18 about the fellowships with Milo when they were young “Call to action” to use
“Milo sữa hạt”, tell them Milo always beside them
- Display ads: run ads for the campaign + Using Facebook CPM for 250.000 views
+ Long chun (Fb) bumper ads for 850.000 views
+ Using Facebook CPM for 250.000 views
- OOH: 15 buses covered with “Milo Sữa hạt bottles” new version (1L package)
+ Billboard: to introduce new version (1L package)
- Traditional Advertising: Run 15s TVC on TV:
“Bản tin thời sự” at 19h on VTV1 and VTV3, “Sao nhập ngũ”, “Đường lên đỉnh Olympia”,
- Celebrate the Earth Day 22/4, launch a campaign called “Đối chai cũ, lấy chai mới”
+ Consumers can exchange the used products’ packaging for the new product (10 used = 1 new,
50 used = A new package of 6 bottles)
*Only applied for the “Milo Sữa hạt” product,
+ The campaign is launched to inspire others to decrease the amount of plastic into the environment to both create a nicer brand image and pursue the Sustainable Development claim
+ Release press to introduce Campaign "Đổi chai cũ, lấy chai mới" and encourage everyone to enjoy to save the world for 2 days:
+ Gia Dinh newspaper: Article Type 1 (4h)
+ Dan tri newspaper: Group 1 link 2 (2h)
- Promotion: 1 free Porcelain cup when buying a new package (1 Liter)
- Flash Sale campaign for 2 times for new version (1L): 80% of the price (Shopee, Tiki, Lazada)
- 250 Selling Booths for “Vòng xoay ký ức” campaign near parks, mall centers, supermarkets in big cities to attract older target customers to buy the “Milo sữa hạt” when they take their children there
Sending email to customers, cheering the Earth Day, inform about the event “Đối chai cũ, lấy chai mới” and engage them to join in
Sending email to celebrate the International Children Day, introduce about the
”Vòng xoay ký ức” campaign x
Product: We expand the depth of product through Product mix strategy and make a new packaging version to give customers more choices whether they want to use more product without buying many times In addition, we also launched a car box of 24 bottles with a better price for customers who are already used to consuming our products regularly
Price: After customers are accustomed to our products, we will stop Market Penetration Pricing Strategy and continue to use Product bundle pricing strategy to encourage the purchasing power of them
Place: We believe that our product will be well consumed in places like Gym center,
Our target market includes yoga centers, stadiums, and pitches where individuals with health concerns seek healthier alternatives We will partner with firms housing white-collar workers, as research indicates a growing trend among these individuals towards plant-based milk consumption This stems from a heightened awareness of health and the desire to prevent conditions such as belly fat.
Push strategy: Continue to use the available plan in the previous quarter
FINANCIALS
Break-Even Analysis
Total first-year sales revenue for the “Milo sữa hạt” is projected at 1.327 billion VND, with an average wholesale price of 13.500 VND per unit and variable cost per unit of 4.300 VND for unit sales volume of 19,915 million liters
We anticipate a first-year Marketing budget of up to 80,356 billion VND Break- even calculations indicate that the “Milo sữa hạt” drink will become profitable after the sales volume exceeds 3.163.510 liters Our break-even analysis assumes per-unit wholesale revenue of 13.500 VND per unit, variable cost of 4.300 VND per unit, and estimated first-year fixed costs of 150.442.445.000 VND With these assumptions, the break-even calculation is:
= Fixed cost Price - Variable cost
We estimated that the COGS (Cost of goods sold) will be 6.000 VND (meaning 40% of the selling price) Furthermore, we estimated the variable cost based on The Average production fee structure of Vinamilk 2019
Fixed cost COGS - Variable cost = 6.000 - 4.300 1.700 VND
Finally, we estimated that our first-year profit will be 651.003.526.500 VND after excluding Variable cost, Fixed cost, Marketing fee and 10% of tax.
Expense Forecast
Milestone Start date End date Budget Manager Department
Marketing plan completion 1/1/2022 1/2/2022 0 VND Team Milo Marketing
Team Milo + Outside firm Marketing
Team Milo + Outside firm Marketing
Market Penetration Pricing Strategy 38.250.000.000 VND
Total Sales and Marketing Expense 80.356.118.000 VND
CONTROLS
Implementation
The milestones identify the key marketing programs It is important to accomplish each one on time and on budget.
Marketing Organization
Milo Vietnam Marketing Department and outside firms will be responsible for the marketing activities
CONCLUSION
These days, more and more consumers in Asia are transitioning to a plant-based diet That is an opportunity for Milo Vietnam to start with a new product which can get along with the market trend and target gen Z and gen Y who really care about their health MILO Dairy Free is made with plant ingredients and does not contain animal derived ingredients, which is very suitable for the growing trend of healthy living in Vietnam Besides, it is a good choice for those who can not consume dairy products
We used the Penetration Pricing Strategy in the first quarter and returned to the retail price with the Product bundle pricing strategy to gain market share We will continue to develop the design, expand the depth of the product mix and the selling point At the same time, we collaborated with the media to promote the product effectively
With comprehensive monitoring, we aim to swiftly address any contingencies and manage sales deviations from the projected plan Allocating approximately 10,535 billion VND for marketing and anticipating a profit of 138 billion VND, our strategy is set to span a year and achieve a breakeven point at 3,940,601 bottles sold Ultimately, we strive for widespread consumer acceptance, sustaining steady and robust growth for Milo Vietnam in the upcoming quarters.
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