Group assigment marketing strategy of nestlé milo chocolate malt milk

TABLE OF CONTENTS LIST OF FIGURES LIST OF TABLES CHAPTER |: INTRODUCTION TO THE NESTLE BRAND AND NESTLE MILO CHOCOLATE MALT MILK 011.... Over more than 150 years of development, Nestlé h

MINISTRY OF EDUCATION AND TRAINING THE STATE BANK OF VIETNAM

HO CHI MINH UNIVERSITY OF BANKING

HO CHI MINH CITY, NOVEMBER 2024

Phan Vo Thuy Linh 950610221038

Nguyen Truc

050610220659 Huyen Tran

Nguyen Hai Nguyet 050610221152

Phan Nguyen

Nhu Sa 050610221289

Vo XuanNgan 050610221123

Ngo Truc Phuong 050610220464

complete the full Word document Prepare the content fo the “Product and Pricing strategy”

section and create the presentation Prepare the content fo the “Target market an Market positioning”

section Prepare the content fo the “Introduction to brand and product”

section and create the presentation Prepare the content fo the “Place and Promotion strategy”

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TABLE OF CONTENTS

LIST OF FIGURES

LIST OF TABLES

CHAPTER |: INTRODUCTION TO THE NESTLE BRAND AND NESTLE

MILO CHOCOLATE MALT MILK 011 6

1 Introduction tO Nestđé - - << 1 HH HH 6 1.1 History

1.2 Nestlé VÏ@†IATNI - LH HH KH HH KH KH kh 6 1.3 Achievements in Vietnam - + + k1 HH Hà 7 1.4 Nestlé's core values «0.0 i tii ill lll nn nnn KH» KH KH nn Họ Họ Họ Họ Họ 7 I0 1000 ca on e.e 8

2 Introduction †O MÍLO - - c cọ SH Ki ki Ki ki kg 8 CHAPTER II: MARKETING ACTIVITIES FOR NESTLE MILO

CHOCOLATE MALT MILK a 10

1 Target market Of MILO 10

2 Market positioning of MILO 10 2.1 Point of Parity (POP) cà HH HH HH KH KH HH HH Hư Kr 10 2.2 Point of Difference (POD) - HH HH kh 10 0c He 20000000900) 5 1 e 11

3 Marketing mix (4Ps) analysis of Nestlé MILO malted milk 13 3.1 Definition of 4PS Marketing «20.0 eeeeeeeeee seer rete aeeeeeeneeeeeeeeneeeeesnneeeeneeneeeeenaas 13 E2 g(090c6 9 09000090 e 13 3.3 Pricing strategy of MILO -c cccnnn»n ng» HT TH Ho ti nh gh 16 3.4 Place strategy Of MILO ooo 17 3.5 Promotion strategy of MILO .- cà TH nh HH nh 18 CHAPTER III: EVALUATION OF NESTLE MILO CHOCOLATE MALT

DRINK STRATEGIES AND MANAGERIAL IMPLICATIONS

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3 Place strategy of MILO - nh HH Ho xi HH 25 Kh NA 9 hố Ốe 25

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NA 9 cố ỐeỐ 26 4.2 PrODOSAl SH HH HH HH Họ ĐT K 27 REFERENCES . SH HH HH HH HH KH TH KH tp 29

LIST OF FIGURES

Figure 1.2 Mission and Vision of NestÍÉ nh nhìn Họ xin ng 8 Figure 1.3 Logo of Nestlé MILO malted miilk cà xin 9 Figure 1.4 Logo of Nestlé MILO malted miilk . c5 3n ninxerrrrerree 9 Figure 2.1 Positioning map of MILO - - - - - SH HH cv rer 12 Figure 2.2 The distribution điagram of Nestlés MILO products - .-.- 17 Figure 2.3 E-commerce channels of Nestlé MÌLO .- s77 SẶSSS se sseeereersrer 18 Figure 2.4 Double day discoun† campaign - - - sen nh re 18 Figure 2.5 National children's football tournament (UT†1) Ắekke 19 Figure 2.6 Active Vietnam Camipaign - nàn ng 20 Figure 2.7 Nestlé MILO — Active Vietnam - Real Champions -. «- 21 Figure 2.8 "Say No to Plastic Straws” Campaign - - - che 22

CHAPTER |: INTRODUCTION TO THE NESTLE BRAND AND NESTLE

MILO MALTED MILK

1 Introduction to Nestlé

Nestlé is one of the largest food and beverage companies in the world, headquartered in Vevey, Switzerland Founded in 1866 by Henri Nestlé, the company initially produced food for infants who were unable to be breastfed Over more than 150 years of development, Nestlé has grown into a global powerhouse in the food industry, offering a diverse range of products including coffee, beverages, nutritional foods, dairy products, soft drinks, pet food, and health-related products

1.1 History

From a life-saving formula to a global food empire, this is a story of strong and diverse development over several decades:

° 1866: Henri Nestlé, a Swiss

7 FE for infants who could not be

breastfed This product, called Farine Lactée, quickly saved many young

\Ì lives and laid the foundation for the

Nestlé brand

— ° Early 20th century: Nestlé

Condensed Milk Company, a producer of condensed milk This

j merger allowed the company to Good Food, Good Life expand its production scale and

Figure 1.1 Logo of Nestlé competitive capability in the

international market

e Mid-20th century: During World War II, Nestlé played a vital role in providing food for the military Products like Nescafé, an instant coffee introduced in the 1930s, became an essential part of the soldiers' rations

e After the war: Nestlé continued to expand rapidly worldwide, acquiring many large companies and developing new product lines The Nestlé brand gradually became one of the most well-known and trusted food brands in the world, present

in various sectors from food and beverages to nutrition and healthcare

* Today, Nestlé operates in 190 countries, employs over 300,000 people, and offers more than 2,000 brands across various product categories, including coffee, beverages, nutrition, and health science products

1.2 Nestlé Vietnam

Nestlé Vietnam is a subsidiary of Nestlé S.A and a wholly foreign-invested company Nestlé first established a commercial office in Saigon in 1912 However, it

was not until 1995 that Nestlé Vietnam officially became a legal entity with the groundbreaking of its first factory in the Bien Hoa II Industrial Zone, Dong Nai Province To date, Nestlé operates stx factories across Vietnam, employing more than 2,800 people nationwide The company is known for producing and distributing a wide range of popular nutritional, food, and beverage products familiar to Vietnamese consumers, including MILO, Nescafé, and Maggi As of the end of 2023, Nestlé’s total investment in Vietnam has exceeded USD 600 million

1.3 Achievements in Vietnam

Awards and Honors

e National Quality Gold Award: In 2023, Nestlé Vietnam reaffirmed its prestige

by receiving the National Quality Gold Award from the Prime Minister, honoring its efforts in improving production processes and enhancing product quality

e Most Sustainable Enterprise: Nestlé Vietnam was recognized as one of the leading sustainable enterprises in the manufacturing sector in Vietnam in 2022, affirming the company's commitment to social responsibility and sustainable development

e Top 100 Best Places to Work: The company has been acknowledged as one of the best places to work in Vietnam, topping the list of multinational companies

in 2022 and 2023, highlighting its positive work environment and employee development

Revenue and Investment

e Revenue Growth: In the first quarter of 2023, Nestlé Vietnam's total revenue grew by 2% compared to the same period last year, demonstrating a strong recovery following the pandemic

e Investment in Vietnam: As of mid-2023, Nestlé has increased its total direct investment in Vietnam to approximately $700 million, reflecting the company's long-term commitment to the market and the local economy

1.4 Nestlé's core values

The core values of Nestlé play an indispensable role in the brand's identity and business practices These values are the pillars upon which Nestlé operates, acting as a compass guiding the behavior and decisions of the organization

Firstly, respect for diversity is deeply embedded in Nestlé's corporate culture As

a global company operating in multiple countries, Nestlé embraces and respects a diverse workforce and consumer base This respect for diversity allows the company to gain insights from various cultures and perspectives, enhancing its ability to innovate and adapt in different markets

Secondly, Nestlé shows a strong commitment to creating value for the communities they serve This commitment is seen in their continuous endeavors to improve the quality of life for individuals and communities Be it through providing nutritious products, creating employment opportunities, or engaging in social and environmental projects, Nestlé constantly strives to make a positive impact on

communities

Finally, an unyielding pledge to sustainable development is at the heart of Nestlé’s business operations They strive to ensure that their activities do not harm but contribute positively to the environment Nestlé’s sustainability initiatives include resource efficiency, waste reduction, responsible sourcing, and active efforts to reduce their carbon footprint

These core values of respect for diversity, creating community value, and sustainable development form the very essence of Nestlé’s corporate character They shape Nestlé’s culture, influence its strategies, and reflect its dedication to making meaningful contributions to society and the environment

1.5 Nestlé's mission and vision

Nestlé's mission statement is “The world's leading nutrition, health, and Wellness Company.”

Nestlé's "Good Food, Good Life" mission is to give buyers the most delicate tasting and great nutrient-rich options across various product sections and consuming events, from breakfast to dinner

Nestlé's vision statement is “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.”

Figure 1.2 Mission and Vision of Nestlé

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Today, MILO continues to actively enhance its existing products by adding more minerals while also introducing

a variety of new offerings Additionally, several new production facilities for MILO milk have been established to meet the increasing consumer demand The logo of the MILO brand predominantly features a green color scheme, while the word "MILO" is represented in brown, symbolizing barley

CHAPTER II: MARKETING ACTIVITIES FOR NESTLE MILO

CHOCOLATE MALT DRINK

1 Target market of MILO

Geography: MILO targets customers in many different areas, but focuses more

on urban areas, where consumers tend to care about high nutrition

Demographics: MILO targets two main customer groups

e Children aged 6-14 years: These are the direct users of the product, who need to supplement energy and nutrients for learning and entertainment activities

e Parents: This is the group of customers who decide to buy the product MILO focuses on messages about health benefits and the comprehensive development of children, creating trust for parents when choosing products for their children

Psychology: MILO targets people who are highly conscious about nutrition and tend to spend a lot on health

Consumer behavior: Targets parents who prioritize providing adequate nutrition for their children and tend to choose brands with high reputation

2 Market positioning of MILO

2.1 Point of Parity (POP)

Basic nutritional ingredients: Like other dairy products, MILO also has essential nutrients such as protein, fat, and a number of other nutrients to help provide more energy and supplement the necessary nutrients for physical development in children Convenient consumption: MILO comes in many convenient formats such as instant bottles, powders, and sachets This adaptability makes the product comparable

to other ready-to-drink malt and chocolate milk products in terms of consumer convenience

Attraction to young consumers: Like other dairy beverages, MILO targets children and adolescents as its primary consumer base, emphasizing both health benefits and flavor appeal to satisfy both parents' expectations and young drinkers

Competitive price: MILO's pricing strategy is generally on par with similar products in the milk and chocolate beverage categories, helping the product reach its target market without being perceived as a premium product

2.2 Point of Difference (POD)

Unique flavor: MILO's special blend of malt, cocoa, and milk provides a unique flavor experience, completely different from TH true milk, Vinamilk, and most other kinds of milk on the market MILO's signature malted chocolate flavor, less sweet and

richer than other chocolate beverages, appeals to consumers who prefer a lower-sugar alternative

Increase energy and nutrition: MILO not only provides delicious flavor but also provides a range of essential vitamins and minerals Ingredients such as calcium, iron, and B vitamins in MILO help support children's comprehensive development In particular, MILO's "Activ-Go" formula is designed to increase endurance and improve athletic performance The product not only provides energy but also helps maintain strength throughout the activity, helping children confidently participate in physical activities and sports

Use environmentally friendly products: MILO differentiates itself from other milk brands by pioneering the use of environmentally friendly paper straws This not only reduces plastic waste but also helps educate children about environmental protection Despite the challenge of durability, MILO has made efforts to improve the quality of straws to bring a better experience to users, affirming its commitment to sustainable development

Active lifestyle positioning strategy: MILO's brand is closely associated with sports and an active lifestyle This image is reinforced through sponsorship of sporting events, such as youth t ournaments, school sports days, and national competitions This positioning as an "energy drink for champions" differentiates MILO from other dairy drinks that may not emphasize athletic performance

2.3 Positioning map

To create a clear perception map for MILO, this analysis will compare MILO with its direct competitors in the barley-based beverage segment Key competitors likely include Ovaltine and MALTO, as they also target similar demographic groups, such as children and young athletes, with a focus on nutrition and energy

Table 2.1 Comparison table between MILO, Ovaltine, and MALTO

Target Can be used for childr¢Can be used ft

audience | over 2 years old children over 1 year o

ingredients such :

whole wheat germ, mil

powder, and cocc

B, D3, and calcium by nutrition, chocolate

do not have hig} minerals, ang Nutritional

with 6 types of Vitamin| nutritional content lik¿ vitamins (B1, B3, B6 (B2, B3, B6, B12, ©, DMILO D3, K2-MK7)

and minerals (Calciun

Phosphorus, Iron) Hid

Calcium content reach

106mg/180ml

Provides quick energ

Benefits of | restores strength suppc

use movement and musc

growth

Supplement energ and nutrients fo children, hele increase resistance

Supports digestion, Enhances resistance, and develops brain

an average price compared to competitors in the nutritional drink segment This makes the product more accessible to many customer segments Compared to Ovaltine (high price positioning), MILO has a price advantage, providing high-quality products at a more reasonable price The ability to balance quality and price has helped MILO build trust with consumers, especially middle-class families who want to find quality products that still fit their budget

About nutrition: MILO provides higher nutritional value than competing products thanks to its superior nutritional content The product is made from good ingredients such as malt extract, milk, and vitamins, which help provide energy to both children and adults The brand has built an image as a healthy drink, especially for sports activities With its improved formula, MILO not only meets the need for taste but also

enhances nutrition, making it popular among parents and young people

In comparison with competitors: On the positioning map, it is easy to see that compared to Ovaltine, MILO has a price advantage, making the product more accessible

to the customer segment who wants to invest in quality but still consider the budget Compared to Lof Malto, MILO stands out in quality, creating a clear difference with low-priced but not high-quality products Thanks to that, MILO maintains its competitive advantage by meeting both quality and price factors, helping this brand gain trust and favor from consumers

3 Marketing mix (4Ps) analysis of Nestlé MILO chocolate malt drink

3.1 Definition of 4Ps Marketing

The 4Ps, known as the "marketing mix" include four key elements—product, price, place, and promotion—used when marketing a product or service The concept of the marketing mix was first popularized in the 1950s by Neil Borden, a professor of advertising at Harvard

Table 2.2 4Ps factors

A product can come in a variety of forms, such as a phy product, digital product, service, event, or experience The pr¢

PRODUCT is the actual item being sold; the features or attributes into pro

can help distinguish it from competitors

Price is the cost of a product or service and must be set to 4 profitability If the company aims to serve various custol PRICE segments, it will need to develop a tailored pricing strategy for ¢

Psychological factors also play a role in pricing; for insta products are often priced at $9.99 instead of $10 to make appear more appealing to consumers

Place refers to where the product is sold and the distrib channels used to deliver it to customers These can include ph PLACE stores, temporary locations like pop-ups or markets, or o

platforms through e-commerce websites or marketplaces Amazon, Etsy, or Shopee

Promotion involves the tactics used to raise awareness

products and convert prospects into buyers Promotional stra can include advertising, social media, and influencer marketin well as discounts and special offers

3.2 Product strategy of MILO

MILO positions its product as a convenient, energy-rich chocolate-flavored nutritional drink associated with an active, sports-oriented lifestyle MILO also differentiates itself by emphasizing specific benefits for consumers, making the brand stand out and attracting its target audience

Firstly, MILO highlights nutritional benefits, focusing on its formula rich in vitamins and minerals, such as calcium and B vitamins, to support physical growth, especially for children and adolescents This positioning appeals to parents looking for

a safe, nutritious product to support their children’s healthy development

Secondly, the benefit of energy provision—MILO’s products are promoted as offering appropriate energy for those with active lifestyles, especially children and teenagers participating in sports activities This helps position MILO as an effective support product for activities requiring endurance, from studying to playing, distinguishing it from other beverages that lack these benefits Over the years, media content on nutrition has gradually improved to meet the increasingly evolving demands

of the market: a new milk formula has been introduced, containing ACTIGEN-E (a blend of 8 vitamins and 4 minerals beneficial for the body) and PROTOMALT (barley malt extract), reinforcing customer trust that this is truly a nutritious product essential for children With extensive experience in producing not only energy-rich but also flavorful nutritional products, Nestlé has created a significant quality advantage for the MILO milk product line

Thirdly, another advantage that helps MILO "win over" most children is its flavor With its signature chocolate taste, most MILO products are easy to drink and bring a pleasant taste experience, making it easy for consumers, especially children, to adapt to and use the product daily

To meet the convenience needs of modern life, MILO offers a variety of product formats, such as ready-to-mix powder, cartons, and plastic bottles, suitable for different usage occasions The Nestlé MILO brand has developed and improved many product types: boxed milk with straws, boxed milk with twist caps (MILO Teen), instant beverages, and more With innovations like balanced drinks and low-sugar MILO milk products featuring nutritious ingredients like oats, brown rice, and wheat—all whole grains with higher nutritional value than standard refined starches