Opportunities ❖ Health consciousness: Since more and more people have concerns about their health, as an energy product, Nestlé Milo has the potential to increase public awareness of fi
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I INTRODUCTION
Nestlé Milo, a brand under the Nestlé company, is definitely not a strange name in Vietnam market,
especially among the health-conscious and active First appeared in 1934 as a nutritious chocolate malt
drink, Milo is well-known for its unique mix of malt, cocoa, and essential vitamins Milo aims to
present itself as a crucial companion for those who enjoy an active lifestyle by emphasising its ability
to provide people of all ages an energy boost, especially for children and teenagers Hence, the purpose
of this essay is to analyse Milo’s marketing strategy and make some useful recommendations in order
to increase the brand awareness and expanding the customer base
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II SWOT ANALYSIS
This SWOT analysis looks at the internal factors that might affect Milo’s success as well as its
operational efficiency
Strengths
❖ Unique Selling Point: chocolate energy
drink is the brand’s only focus
❖ Diversity of goods: with the variety of
forms, sizes and types, customers have
plenty of options
❖ Affordability: both the quality and the
price of the products are good Also,
discounts, special offers and seasona
sales are also provided
Weaknesses
❖ Product Design: the packaging for Milo
products is out of date, in contrast to t
world’s rapid change There have not been
any signs of improvement in the old
fashioned tin box design and labelling
❖ Limited Flavour Options: Nestlé Milo is
only available in chocolate, therefore there
not a lot of choice in flavours
Opportunities
❖ Health consciousness: Since more and
more people have concerns about their
health, as an energy product, Nestlé Milo
has the potential to increase public
awareness of fitness and health
❖ Eco-friendly Products: Nestlé Milo is
already using eco-friendly packaging for
some products, but it should go further
to show its environmental concerns,
which can help the brand gain
recognition as a green business and
attract more customers
Threats
❖ Competitors: Similar goods from brands lik
Ovaltine and Kun pose an increasing threa
Nestlé Milo Some of these are wide
popular names that are luring customers aw
from Milo
❖ Latest trends: Unlike Nestlé Milo’s
antiquated design and package,
competitors showcase a variety in the
stages Furthermore, they keep changing t
brand and products based on consum
preferences and trends
Summary, Nestlé Milo should continue to develop new ideas and produce more goods, then promote
them through effective marketing strategies To get better results and stay competitive in the market,
this is specifically crucial for digital marketing considering the world’s current rapid expansion
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III MARKET SEGMENTATION, TARGET CUSTOMERS, BRAND
POSITIONING
1 Market segmentation
GEOGRAPHIC
Nations Worldwide
Cities From big to small cities such as Ha Noi, HCMC, Hue, Vinh,…
Neighbourhoods In all supermarket, convenience stores, shopping malls, grocery stores
Population
density Both urban and rural area
Climate From the torrid zone to the frigid zone
DEMOGRAPHIC
Age 6 - 14 years old
Life-cycle stage Childhood, adolescence
Gender Both male and female
Income ❖ Mostly financially dependent upon their parents
❖ Low to medium (3M VNĐ to 10M VNĐ)
Occupation Kindergarten student, student
PSYCHOGRAPHIC
Lifestyle Active, sportive, extroverted
Personality Interested in athletics, like to express themselves
BEHAVIORAL
Usage occasions Breakfast, gift
Benefits Convenient, distinctive flavour, tasty
User status Potential and regular fast food eaters
User rate Very high
Loyalty status Medium to high
2 Target customers
Nestlé Milo targets children aged 6 to 14 years old, focusing on a differentiated marketing strategy
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Childen in this age group have extremely vulnerable digestive systems, but they also need a lot of
nutrients to meet their developmental demands Milk is an essential supplement for children, especially
between the ages of 6 and 14, as it is important during this critical developmental era that affects
children' physical and mental development as well as their future development Hence, it's crucial to
have beverages that help children quickly replenish their energy While children are the end-users, their
parents make the final purchase decision Lots of parents, even those with smaller budgets, are still able
to supply enough milk because dairy products available in a variety of forms and prices In light of the
considerable market potential of this age range, Milo seeks to reach children and teenagers worldwide
3 Brand positioning
Nestlé Milo uses the message "Năng động Vi t Nam" to positions itself as a source of nutrition and ệ
energy for children The brand achieved remarkable success thanks to its creative strategy involving of
children in sports and competitions to highlight the importance of early physical development This
strategy has impacted parents psychology, increasing brand trust and giving Milo ’ an advantage over
its competitors such as Ovaltine, Kun, Malto
According to the perceptual map below, Milo has a high qualified product line with a tasty flavour
Malto, on the other hand, is regarded as delicious taste but has poor nutrition than Nestlé Milo
Notably, there is tasty but nutritious milk like Ovaltine, which requires Milo to develop even more to
compete with this competitor in the long run because Malto knows how to please the customers by
offering flavourful, nourishing products
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IV MARKETING MIX STRATEGY
The marketing mix is a marketing model, providing insights into a company through its highlights on
the 4Ps: product, price, place, and promotion This essay will assess Nestlé Milo's business model by
examining its marketing aspects and mix The following is an outline of the marketing mix strategies
1 Price
1.1 Price setting method: Competition-based
Due to the high price elasticity of customers, Nestlé Milo has
adopted competition-based pricing with the aim of gaining market
share from competitors Milo milk is comparable to Ovaltine in
terms of strength These middle-class brands aim to energise
consumers between the ages of 6 and 14 and target to this group
The nutritional value, flavou and quality of both items are similar
therefore, Milo cannot raise its prices above Ovaltine without
risking losing customers In lieu of that, the price of Milo milk is
alike to Ovaltine milk, which cost about 31 500 VNĐ and 35 000
VNĐ respectively for a pack of 180ml milk Additionally, compared to other brands such as Kun,
Malto, Nuvi, this price is quite reasonable Besides, consumers often consider Milo as a product that
not only provides a satisfying taste but also contains essential nutrients The brand's association with
sports and energy further enhances its perceived value, positioning it as a choice for those seeking a
beverage that supports an active lifestyle
1.2 New product pricing strategies Penetration pricing :
Since the first product appear in Vietnam, Nestlé Milo has become a highly recognised beverage brand
At the time of launch, if the product's selling price is lowered to compete with its competitors, more
people will be aware of it and decide to give it a try This will attract large numbers of customers to the
brand
2 Promotion
2.1 Advertising strategy
Nestlé Milo utilised outdoor advertising which started from late 2020 at the intersection of Dinh Tien
Hoang Nguyen Thi Minh Khai (District 1, Ho Chi Minh City), Milo deployed billboards revealing –
the daily routine of a champion Throughout the day, different messages are sent through the content,
such as "Drink Milo after school for a tasty energy boost" from 4 10 pm and "Balanced nutrition for –
breakfast" from 5 9 am –
Furthermore, children who use Milo appear in the TV commercials become more energetic The ads
commonly include parents offering Milo to their children, intending to influence purchase decisions In
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April 2021, Nestlé Milo Vietnam collaborated with rapper Ricky Star and The Voice Kid 2021 winner
Le Dang Bach on the music video "Đủ Chất Thật Ngầu" to promote the "Milo balanced breakfast"
product The MV surpassed over 6 million views on YouTube
Additionally, Milo installed over 100 3D projectors at Coopmart and Lotte Mart supermarkets in
partnership with Asia Shopper Marketing to provide information on current promotions and products
2.2 Specifying channels
Nestlé Milo often employ a variety of specifying channels for promotion, including these factors listed
in the image below:
2.3 Messages
The "Năng động Việt Nam" program's promotion primarily encourages mothers to allow children take
part in more outdoor activities Nonetheless, this concept comes from the indifferent attitude toward
striking a balance between children's physical education and traditional Vietnamese educational
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practices
2.4 Goals
Convincing its target market that Nestlé Milo's products and services offer a significant advantage over
competitors is the main focus of Milo's promotional strategy Milo effectively presents the idea that
students will be more active, sportsmen will have more strength, and children would have a boost in
energy after consuming the product
3 Place
3.1 Distribution channels
Generally, Nestlé Milo has applied the retail and direct
channels as its two main distribution channels Milo sets its
marketing strategy on the target market Traditional
approaches such as television commercials, billboards, and
supermarket distribution are used for older customers While
Milo uses social media, celebrity endorsements, and online
e-commerce platforms to reach younger When necessary,
Milo may use direct sales or distribution networks to target
specific markets or demographics
3.2 Logistics
Milo has developed a massive national network for product transportation, which will certainly
improve the accessibility of product To deliver the goods around the nation, a significant number of
well-maintained transport vehicles is provided
4 Product
4.1 Breadth & depth
Milo presently offers a range of products, including Powders, Drinks, Cereals, and Snacks These are
grouped based on their primary ingredients to meet demands of customers The products serve various
functions and come in different quantities
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BREADTH
Drinks Powders Cereals Ice cream
DEPTH
Drinks
Powder
s
Cereals
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Ice
cream
4.2 Packaging
Milo pays close attention to package design to make sure it is both
visually pleasing and matches the characteristics of the product
Customers are given a visual impression by the unified concept
and colour used throughout all Milo products, maintaining
consistency The company prioritises environmental concerns by
utilising recyclable tin alloy cans that resist oxidation and
corrosion, or recyclable carton paper For easy decomposition and
minimal environmental impact, powdered product packaging uses rectangular boxes
4.3 Features
The main aim of Milo products is to boost children' energy by adding calcium, vitamins, and minerals
With the inclusion of barley extract, Milo milk is recognised as a vital nutritional for providing energy
to the body At the same time, it strengthens the skeletal system, actively supports cognitive activities,
and boosts a child's ability to concentrate better during learning
4.4 Quality
Key barley ingredient in Milo include important nutrients such iron, protein, vitamin C, and vitamin as
B1 The product's packaging emphasises its significant nutritional content by highlighting additional
minerals including magnesium and vitamins B2, B3, B6, and B12 In 2006, Nestlé Milo enhanced its
recipe and added ACTIGEN E and PROTOMALT, showing its dedication to providing children with a
nourishing supplement to satisfy their energy needs consequently, Milo's image as an extremely
healthy beverage is proven, giving consumers more trust to use it
4.5 Branding
4.5.1 Logo
The name "MILO" is printed in brown capital letters inside a white oval on a
green background in the current Nestlé Milo logo, which is the result of
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three design changes This represents the brand's enthusiasm and passion for sports This is in line with
Milo's marketing as an energy drink for active people, especially children
4.5.2 Slogan
The slogan "Nhà vô địch làm t Milo" (Champions are made from Milo) implied that consuming Milo ừ
is related to characteristics and qualities that help people become successful or achieve champion-like
status It puts forth the idea that Milo is a product that encourages strength, excellence, and the
characteristics of a champion
4.6 Innovation
With a focus on both product innovation and consumer happiness, Nestlé has introduced choices like
as low-sugar Milo and enhanced formulas like ACTIV-GOTM xa Milo puts an intense focus on
environmentally friendly packaging, replacing paper straws for plastic ones in their balanced breakfast
drink to cut down on waste and protect the environment The brand wants to have a good influence on
both communities and customers
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V CONCLUSION & RECOMMENDATIONS
Nestlé Milo has effectively employed marketing strategies on its way to become a leader in the FMCG
sector Maintaining support for schools and sports programs is encouraged in order to increase its
influence in Vietnam through continued engagement with the General Administration of Sports and the
Ministry of Education and Training For environmental concerns, one of Milo's notable efforts is
switching to environmentally friendly packaging, such starting to use paper straws in May 2021 This
action marks a turning point for both Milo and the food industry as a whole Further efforts on social
media emphasise environmental responsibility Moreover, Milo’s factories should advance wastewater
purification for reduced environmental impact
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REFERENCES
1 https://iide.co/case-studies/swot-analysis-of-milo/
2 https://youtu.be/DA_cIvP-Zyg?si=kWOfbwLkoq6f00xQ
3 https://www.youtube.com/watch?v=qE0lwFZGzFI
4 https://youtu.be/jeIQ4LOlL4s?si=t4R89YfIkpfVDBnh
5 https://www.youtube.com/watch?v=VOd6Js5D2hA
6 https://www.nestle.com.vn/vi/media/nestle-milo-tiep-lua-sea-games-32
7 https://www.nestlemilo.com.vn/san-the-ben-bi-doi-qua-y-chi/the- -dieu-kienle