Topic design the customer oriented marketing strategy of nestlé milo vietnam

VIETNAM - KOREA UNIVERSITY OF INFORMATION AND COMMUNICATION TECHNOLOGY FACULTY OF DIGITAL ECONOMY AND E-COMMERCE STRATEGY OF NESTLE MILO VIETNAM Teacher instructions Group Class Da Nang

VIETNAM - KOREA UNIVERSITY OF INFORMATION AND COMMUNICATION TECHNOLOGY FACULTY OF DIGITAL ECONOMY AND E-COMMERCE

STRATEGY OF NESTLE MILO VIETNAM

Teacher instructions Group

Class

Da Nang, May 2023

: MSc Dang Thi Thanh Minh : 1, Pham Tran Ngoc Thuy

2 Nguyen Thi Nhu Quynh

3 Vo Thi Phuong Thanh

4, Le Chau Ngoc :22GBA

VIETNAM - KOREA UNIVERSITY OF INFORMATION AND

COMMUNICATION TECHNOLOGY FACULTY OF DIGITAL ECONOMY AND E-COMMERCE

STRATEGY OF NESTLE MILO VIETNAM

Teacher instructions Group

Class

Da Nang, May 2023

: MSc Dang Thi Thanh Minh : 1, Pham Tran Ngoc Thuy

2 Nguyen Thi Nhu Quynh

3 Vo Thi Phuong Thanh

4 Le Chau Ngoc :22GBA

NESTLE MILO VIETNAM

THANK YOU

First, our team would like to express our deep gratitude to MSc Dang Thi

Thanh Minh, a lecturer in the Basic Marketing course This is a fairly new

subject for us, so it 1s difficult to absorb and understand the knowledge

However, thanks to his enthusiastic teaching, as well as his lively and

understandable way of communicating, our lessons become no longer boring

but more interesting Through her very practical teaching, we have learned a lot

of useful lessons, which will help us a lot in our future work

For this report, we tried our best to perfect 1t as good as possible Even so,

time is limited and our knowledge 1s still somewhat limited, so mistakes can't

be avoided, hope you can ignore these mistakes, and give suggestions, so we

can complete this report, and we can also draw lessons for the following

reports

We sincerely thank you!

Da Nang, May 2023

Leader Pham Tran Ngoc Thuy

Group: Molies

NESTLE MILO VIETNAM

INTRODUCTION

For Vietnamese consumers today, the dairy industry is certainly no stranger Vietnam's milk and dairy products production and processing industry

in recent years has always had a dynamic development, providing a variety of

products for the national economic life, meeting the needs of the domestic and

foreign markets water In addition, the industry has made significant

contributions to the state budget, created many jobs for workers, and

contributed to ensuring the people's lives Despite being affected by many

factors such as epidemics, but the dairy industry has always grown strongly,

even rapidly, in the two years 2020 - 2021, despite difficulties due to the

epidemic of market revenue Vietnam's milk in 2020 is estimated at 113,700

billion VND and in 2021 is estimated at 119,300 billion VND Sales of dairy

products in Vietnam grew by 10.3% So, what has contributed to such a

growth in the dairy industry? That is thanks to the marketing strategy - an

indispensable strategy and customer orientation in dairy corporations in

Vietnam And when it comes to using effective marketing and customer

orientation strategies , it is impossible not to mention the famous milk brand

Nestlé Milo, a brand trusted by Vietnamese people since 25 years ago since its

appearance in Vietnam Vietnam Is a typical example of a type of high-tech

product, which is patented and distributed directly to consumers by

manufacturers In addition to always trying to do everything to build trust and

love from customers, Milo always strives to lead or follow the consumer trend

of the market, constantly researching and learning to create and meet product

needs Therefore, in the Vietnamese market, Nestlé has to compete with many

big competitors such as Vinamilk, Nutifood, Dutch Lady, Ovantine, but

despite such fierce competition, Nestlé Milo still ranks third on the list dairy

market in Vietnam, after Vinamilk and Dutch Lady

This report has the purpose of analyzing the customer-oriented marketing strategy of Milo milk of Nestlé Vietnam And from there, make comments and

suggestions for the strategy to contribute to Nestlé Milo's more complete

marketing strategy and clearer customer orientation, helping the company

develop more and increase its market share Its share in the Vietnamese dairy

market in the future

Group: Molies

NESTLE MILO VIETNAM

Table 2.1 GDP indicator and inflation rate 2020-202 1-2022 7

Table 2.2 Minimum wages by region 10

Table 3.1 Characteristics of market segments 15,16

Table 3.2 Characteristics of each age segment 16

Number Table name Page

Picture 1.1 Logo and Slogan of Nestle Corporation 1

Picture 1.3 Nestlé Milo dairy products in Vietnam 4

Picture 2.1 NESTLE Lotus Factory specializes in Milo production in 8

Hung Yen

Picture 2.2 | Environmental protection body temperature cooling system 9

Picture 2.3 The pipeline system in the Nestlé factory 9

Picture 2.4 Milo’s “Sport is a great equalizer” campaign 11

NESTLE MILO VIETNAM

CHAPTER 1 INTRODUCTION OF BUSINESS OVERVIEW s000008 1

1.1 Overview of Nestlé’s Viefnam €C0mDATV - o5 5G co 5 S15 5555 1

LALA, Introducing Nestlé’s logo drHỈ SỈOĐŒ1 c.ĂĂĂĂSĂSĂS<eSe<es<< I

1.1.3 The history of formation and development of Nestlé Vietnam

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CHAPTER 2 ANALYSIS OF THE MARKETING ENVIRONMENT 6

2.1.1.2 Family size and HIƒ€ CVCÏ€ àà ST nhàn 6

3.1.3 Main market segmentation Criterid.iccccccccccccssssccssessesssessseeess 16

3.3.1 Product positioning based on product attributes 17 3.3.2 Product positioning based 0H COTHDGFIÍOFS «<<<<<< lô CHAPTER 4 CONCLUSIONS AND SUGGESTIONS 19

Group: Molies

NESTLE MILO VIETNAM

Group: Molies

NESTLE MILO VIETNAM

CHAPTER 1 INTRODUCTION OF BUSINESS

OVERVIEW

1.1 Overview of Nestlé’s Vietnam company

Nestlé Vietnam Co., Ltd was officially established in 1995, is a 100%

foreign-invested company, belonging to Nestlé SA Group - the world's largest

food and beverage corporation headquartered in Vevey — Switzerland ,

presently present in 191 countries with 328,000 employees worldwide

Nestlé Vietnam Co., Ltd specializes in manufacturing and distributing nutritional, food and beverage product lines that are familiar to Vietnamese

consumers such as Milo, Nescafé, Maggi, Up to now, Nestlé 1s operating 6

factories in Vietnam and more than 2,500 employees nationwide According to

Vietnam Report, currently Nestlé Vietnam Co., Ltd is ranked first in the Top

10 prestigious food companies in 2020 - Sugar, confectionery and other

nutritious foods

LAI1, Introducing Nestlé’s logo and slogan

Mr Henri Nestlé - Founder of Nestlé designed and built his brand identity

.les:3

Good Food, Good Life

Picture 1.1 Logo and Slogan of Nestle Corporation

( Source: nestle.com.vn ) Nestlé’s first trademarked logo was based on his family's coat of arms,

featuring a bird in a nest This takes its cue from the family name Henri Nestlé ,

with the word Nestlé meaning "bird's nest" in German The logo image is the

mother bird feeding the young birds towards the "family" value of the

company's mission and also creating a strong bond associated with his

company's original infant cereal product

Besides, Nestlé Group always aims to bring value to consumers with good food for health and life through the slogan "Good food, Good Life" The

NESTLE MILO VIETNAM

tagline conveys a message of commitment to consumers It is our commitment

that every day, everywhere, consumers will be provided with healthy food and

beverage options that enhance quality of life The slogan is only 4 words, but as

people say, it is 4 "golden" words when it 1s short, concise, using common

words and easy to understand No need to use fancy words, but the slogan

brings good messages, contributing to making the brand familiar and easy to

remember

1.1.2 Nestlé's Vision and Mission

Vision None of Nestlé's packaging, including plastic, is released into the environment as garbage Striving to contribute to creating a future without

waste

Mission Individual family: Helping 50 million children lead a healthier life Communities: Improved livelihoods for 30 million households in communities directly related to the company's business

Planet: Strive for zero impact on the environment in all activities

1.1.3 The history of formation and development of Nestlé Vietnam

Nestlé's famous bird's nest symbol has become a familiar brand for

generations of Vietnamese families for decades Below are the important

milestones for Nestlé's presence in Vietnam :

1992: Established La Vie Company, a joint venture between Perrier Vittel

(under Nestlé Group) and Long An Trading Company

1993: Nestlé officially returned to Vietnam when opening a representative office in Ho Chi Minh City

1995: Established Nestlé Vietnam Co., Ltd and started construction of

Dong Nai Factory

1998: Inaugurated Nestlé Dong Nai Factory in Bien Hoa II Industral Park, Dong Nai Province

2002: Put into operation La Vie's second factory in Hung Yen

2009: Expansion of MAGGI production line at Nestlé Dong Nai factory

2011: Started construction of Nestlé Tri An Factory and acquired Nestlé Binh An Factory from Gannon

2012: Celebrating 100 years of Nestlé's presence in Vietnam

2013: Inaugurated Nestlé Tri An Factory specializing in the production of

NESCAFE

2014: Expanding the Nestlé MILO instant drink production line worth 37

million USD

2015: Inaugurated a 80 million USD decaffeinated coffee bean factory

2016: Commencement of construction of Nestlé Bong Sen Factory in Hung Yen worth 70 million USD

NESTLE MILO VIETNAM

HANH TRINH 25 NAM _ 15

Nang cao chất lượng cuộc sống người Việt

Picture 1,2 Brief history of Nestlé Vietnam With a total investment capital of hundreds of millions of USD, Nestlé not only demonstrates the company's long-term development commitment in

Vietnam, but also wishes to always improve product quality, contributing to a

healthier future for all Vietnamese consumers

1.2 Nestlé Milo Vietnam

Nestlé MILO® powdered products were first introduced in Vietnam

through the Import and Distribution system in 1994 After 4 years of operation,

Nestlé officially inaugurated the powdered MILO factory in Dong Nai to meet

the needs of customers growing needs and tastes of Vietnamese consumers

Milo always actively participates in campaigns and activities to attract

customers to be more interested in products In 2003 Milo sponsored and

organized health and wellness associations in Vietnam In 2005 Milo officially

launched innovative powdered milk products with a superior 3-in-1 formula

Netstle's Milo Milk has been present and continuously developed in the Vietnamese market for more than 17 years and is a prestigious brand, leading

in quality and market share in the nutritional cocoa beverage industry for

NESTLE MILO VIETNAM

children since 6-14 years old Netstle's Milo Milk Barley Drink is the perfect

combination of the unique delicious taste of cocoa and the rich natural source

of protein and nutrients from milk, whole wheat germ and vitamins and

NESTLE MILO VIETNAM

1.3 Achievements of the business

In 2022, Nestlé Vietnam Company won a number of awards as follows:

+ The most sustainable enterprise in Vietnam (second year in a row) + Honored in Top 3 Most Sustainable Enterprises (fourth year) + Ministry of Natural Resources and Environment awarded Vietnam Environment Award (7th consecutive year)

+ Top 5 enterprises implementing the circular economy model, responding to climate change

Nestlé Vietnam is honored to be the only Foreign Direct Investment (FDI) enterprise in the ranking of "Typical Enterprises for Employees" in 2022 to

receive a certificate of merit from the Ministry of Labor, War Invalids and

Social Affairs This is a prestigious ranking organized by the Vietnam General

Confederation of Labor, in collaboration with the Ministry of Labour, Invalids

and Social Affairs and VCCI from 2014 to present

Besides, Nestlé Vietnam is in the Top 100 of the largest corporate income

tax payers in Vietnam From 2016 until now, since the General Department of

Taxation started to announce the list of 1,000 largest corporate income tax

payers in Vietnam, Nestlé Vietnam is always on the list of businesses that make

a lot of contributions to the state budget and national socio-economic

development goals

The above typical results are recognition for Nestlé Vietnam's efforts in

fulfilling its long-term investment commitment and for the sustainable

development of Vietnam, with a vision to become a locally connected global

company pioneering sustainable development

NESTLE MILO VIETNAM

Nestlé Milo Barley Milk is researched to provide energy and nutrition for

children aged 6 years and over But for children under 6 years old, children can

still use it depending on their needs For younger children, it can be used with a

small portion, but most mothers will not choose for their children

Especially in the age group from 6-12 years old, the Vietnam National

Institute of Nutrition recommends nutritional supplements in the morning

(2018) Seeing that factor, Milo has launched timely and appropriate products

aimed at the age group from 6-14 years old This age is the age for the

comprehensive development of children, so it is necessary to provide enough

nutrition every day This is also an age with a relatively good digestive system

and suitable for using milk with less anti-infective substances

In addition, many people outside the developing age also have a need to use Milo's products Due to the taste, preferences, long-term usage habits, it is

convenient to use instead of breakfast, refreshments

2.1.1.2 Family size and life cycle

Nestlé Milo offers their same product to customers in different cartons, paper boxes, plastic boxes and cans to meet different usage needs according to

the size of the family For example, Milo milk has milk cartons and batches,

boxes of different capacities Families with many members can buy large

cartons or powdered milk cartons with large capacity to use, one part can

satisfy everyone in the family and the other part can save money Small

families can also take small boxes to use

2.1.1.3 Income

Milo products are aimed at low-income people and people with small incomes Children of various ages who are not yet able to be economically

independent or students with low incomes

Milo has offered products with relatively reasonable prices compared to many other brands suitable for many classes and different income levels