Topic the impact of nestle's green marketing activities on consumer purchasing behavior

HO CHI MINH CITY UNIVERSITY OF FOREIGN LANGUAGES AND INFORMATION TECHNOLOGY FACULTY OF INTERNATIONAL RELATIONS MARKETING RESEARCH Topic: The impact of Nestle's green marketing activit

HO CHI MINH CITY UNIVERSITY OF FOREIGN LANGUAGES AND

INFORMATION TECHNOLOGY FACULTY OF INTERNATIONAL RELATIONS

MARKETING RESEARCH

Topic: The impact of Nestle's green marketing activities on consumer purchasing behavior

Members:

Name: Nguyễn Hà Nhã Linh MSSV: 21DH703061 Name: Lại Yến Như MSSV: 21DH718495

Ho Chi Minh City, April 10", 2024

Contents

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Summary

In the context of environmental instability and negative impacts of industrial

activities, awareness of environmental protection and sustainable development has become an important trend in modern society Companies today are increasingly aware of the importance of implementing green marketing activities to create

sustainable value for their products In this field, Nestle Vietnam Limited Company has stood out with notable green marketing activities related to its Milo barley cocoa

milk product

This topic aims to analyze the effects of green marketing activities of Nestle Vietnam

Limited Liability Company on consumer purchasing behavior for Milo barley cocoa milk products The research will focus on evaluating consumer awareness of green marketing, the influence of green marketing factors on purchasing decisions, and the influence of Nestle's green marketing activities on with consumer product choices The research will use data analysis methods from secondary sources, including related

research reports, scientific articles and documents from Nestle Vietnam Limited

Company In addition, data analysis from the online survey will be conducted to collect consumers’ opinions and views about Nestle's green marketing activities and

their purchasing behavior

The results of this study are expected to provide detailed information about the

influence of Nestle Vietnam Limited Liability Company's green marketing activities

on consumer purchasing behavior The research will help to better understand the key factors in green marketing and their importance to consumers, thereby providing recommendations on how to improve green marketing and increase awareness

environmental protection in this field

Introduction

Background

About Nestle

Nestle is a multinational company headquartered in Switzerland Nestle was founded

in 1866 and became one of the world's leading companies in the food and beverage

industry

Nestle was founded by Henri Nestlé, a Swiss chemist Henri Nestlé founded the company in 1866 in the city of Vevey, Switzerland He developed a food for infants

who could not be breastfed and named it "Farine Lactée Nestlé" (Nestlé Milk Cereal) This product became the foundation for the development of the Nestlé company and

opened the doors to the production of many different food and beverage products

Nestle manufactures and sells a wide range of food and beverage products Below are some of Nestle's main product lines:

Consumer food: Nestle provides consumer food products such as condensed milk, powdered milk, fresh milk, ice cream, instant noodles, soft drinks, instant noodles, cooking powder, MSG, candy, chocolate and other sweets

Baby food: Nestle offers baby products, including infant formula, baby supplements

and baby food

Coffee and beverages: Nestle is one of the leading companies in the coffee sector,

including famous brands such as Nescafe They also produce beverages such as

mineral water, energy drinks and soft drinks

Functional foods: Nestle provides functional food products such as dietary

supplements, nutritional powders, vitamin and mineral supplement drinks

Pet food: Nestle also produces and sells pet food, including wet and dry food for dogs and cats

These are just some of Nestle's main product lines, and the company also has many

different brands in each product area

Nestle's development and history:

Nearly 30 years of operation in the Vietnamese market, Nestlé has adopted

commitments and orientations in its sustainable development strategy to deploy many

activities to improve consumer health and protect the blue planet This business is also recognized as the top 1 most sustainable business in Vietnam

Specifically, in 2022 this enterprise will reach a revenue of 17,298 billion VND, an

increase of 8.6% compared to 2021 and 12.2% compared to 2020

According to Vietdata, despite a difficult business period when many costs increased, Nestlé still maintained its after-tax profit of more than 1,400 billion VND

About Milo

Milo is a supplement drink brand from Nestle

belongs to the FMCG industry (Fast Consumer Goods - consumer goods industry

fast) This brand was developed by Thomas Mayne in

1934 It can be seen that, although it has been operating for many years in the market

Currently, Milo is still popular with users, even yes extremely profound impression Milo milk brand has covered many countries from Europe, Asia, America to Africa

The brand is named after a legendary ancient athlete from Croton, a small town in ancient Greece, in the 6th century BC Legend has it that he was known as a "god of strength" because he could lift a bull on his shoulders and walk everywhere This strength legend won the Olympics 6 times, as well as won a series of prestigious titles

at various large and small competitions at that time

Milo is sold in powder form and comes in a green can, which can be mixed with milk and hot or cold water to create a delicious and nutritious drink Milo's ingredients and

flavors may vary by country and region Currently, Milo is present in more than 40 countries worldwide, especially in Australia, Asia and Africa In addition to Milo powder products, this brand also develops and supplies other products such as

breakfast cereals, energy bars, sponge cakes, ice cream, etc

With more than 30 years of operation in Vietnam, Milo always accompanies the young generation of Vietnam, encouraging the spirit of sports and active lifestyle Milo has become a favorite nutritional drink brand because of its delicious taste and high nutritional value

Regarding the baby milk powder industry, Milo's market share in Vietnam accounts

for 6.5% (according to Nielsen IQ 2021) Compared to Vinamilk, which has a market

share of 22.3%, this number is still quite low However, Milo's sales are also amazing According to Metrics, sales of Milo Milk products in May 2023 reached the highest level with 6.1 billion VND and 18.8 thousand in output The Milo Milk market scale

in December 2023 reached 1.7 billion in sales and grew 23.9% lower than November

2023 Another notable point is that, according to a report by Metrics from January

2023 to December 2023, analyzing the Milo Milk market there are more than 29 brands accounting for 92.5% of total revenue Comparing among the top 10 brands, Milo's market share in Vietnam accounts for 88.24% of revenue

Specifically, in 2022 this enterprise will reach a revenue of 17,298 billion VND, an increase of 8.6% compared to 2021 and 12.2% compared to 2020

Nestlé's outstanding green campaigns

Campaign "Say no to plastic straws"

“Say no to plastic straws” is Milo's PR campaign in 2021, aiming to show the brand's concern and responsibility for the environment and sustainability Milo's

communication message in this campaign is "Milo chooses paper straws for a

dynamic and green Vietnam", with the purpose of promoting the Milo dairy product

line with environmentally friendly paper straws, contributing to protect our blue

planet

Green Dragons (Green Dragons)

In 2022, understanding the major challenges that the environment is affecting, the Green Ambassador group organized a reforestation activity with the theme "Sowing green seeds - Nurturing life", celebrating World Environment Day (World

Environment Day) Day), and Nestlé employees contributed 1,000 large trees to Dong Nai Cultural Nature Reserve, helping to regenerate and restore the ecosystem, while limiting the negative impacts of climate change

On September 10, 2022, to join hands to solve waste challenges, the Green

Ambassador group and nearly 200 Nestlé Vietnam employees volunteered to collect waste along the coast of April 30, Can Gio district, City Ho Chi Minh City with the

theme "For a blue ocean", responding to the World Cleanup Day campaign In just

5

one morning, nearly 1.5 tons of trash was collected and transported and treated by the

environmental company according to regulations This is one of the activities within many initiatives to realize Nestlé's sustainable commitment towards a waste-free

future

Through two programs, the Green Ambassador group has made certain contributions

to the community and the planet From small actions, employees will participate in the company's sustainable development process, creating great positive impacts, contributing to environmental protection, and gradually realizing the dream of a

sustainable future A green, clean, and beautiful future is not far away

Problem statement

The objective of this study is to evaluate customer awareness and satisfaction with the canned Milo barley cocoa milk product in the Ho Chi Minh City market

The problem statement:

e Are consumers aware of Nestle Vietnam's green marketing activities?

e How does information from Nestle's advertising, product packaging and green communication activities affect consumers' awareness of green

marketing?

e How does information about product ingredients, raw material origin,

production and recycling processes affect consumers' purchasing decisions?

e Does green marketing influence consumers’ purchasing decisions more than other factors such as price, product quality and brand?

e ls there a change in consumer purchasing behavior after being exposed to Nestle's green marketing activities?

Approach to the problem

Promotional strategy is a plan of optimal use of the elements of promotions that is

used by Nestle to promote Milo The main function of Nestle promotional strategy is

to convince target customers that their goods and services offered provide a

differential advantage over the competition A differential advantage is a set of unique

features of a company and its product that are perceived by the target market as

significant and superior to the competition Such features can include high product

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quality, low prices, excellent service or a feature not offered by other competitor.”

(Peter Wong Yew Min)

The above observation confirms that effective advertising is very important to ensure

the survival of a product in the market, even if the product is well developed,

reasonably priced and widely distributed Advertising is a form of communication by

marketers that informs, persuades, and reminds potential customers about a product in

order to influence their opinions

For Nestle, green marketing activities are part of the advertising strategy to promote

Milo products The main objective of Nestle's advertising strategy is to convince target customers that the goods and services they offer offer a distinct advantage over their competitors A differential advantage is a set of unique characteristics of a

company and its products that are seen by target customers as important and superior

to their competitors These characteristics may include high product quality, a

reasonable price, excellent service, or a feature not offered by a competitor

Analyzing Nestle's green marketing activities on consumer purchasing behavior, we can infer that green marketing activities can influence consumers' purchasing

decisions If Nestle can create a distinct advantage through green marketing, such as providing information about product ingredients, raw material origins, manufacturing and recycling processes, then consumers can look here is an important factor in their

purchasing decisions In addition, green marketing activities can also create positive interactions with other factors such as price, product quality and brand, thereby

influencing consumer purchasing behavior

;

Advertising response

- reinforce positive attitude

- affect how consumer rank board

Graph 1 effect of advertising response

The urgency of doing this research

In theory, research on green marketing is to understand and evaluate urgent

environmental issues, thereby finding appropriate marketing measures and bringing

positive impacts to the environment and society festival Understanding aspects of

consumer behavior theory will help Nestle deeply understand the research object,

thereby designing many suitable campaigns

In fact, research can provide important information needed to help companies reach target audiences, create green marketing strategies and create many benefits in sales growth, Meet customer wishes and create a loyal customer base

Objective

Evaluate consumer awareness of Nestle's green marketing:

Ltd.'s green marketing activities

e Research factors that influence consumer awareness, including information from advertising, product packaging, and Nestle's green communication

activities

Analyzing the impact of green marketing on consumer purchasing decisions:

e Research the influence of green marketing factors, such as information about

product ingredients, raw material origin, production and recycling processes,

on consumers' purchasing decisions

e Analyze the relationship between green marketing and other factors such as price, product quality and brand to better understand the influence of green marketing on purchasing decisions

Evaluate the effectiveness of Nestle's green marketing activities on consumer purchasing behavior:

to Nestle's green marketing activities

° - Measure changes in purchasing behavior, including changes in product

choice, purchase frequency and loyalty to the Nestle brand after receiving

information about green marketing

> These research objectives will provide important information about the influence of

Nestle's green marketing activities on consumer purchasing behavior, thereby

providing recommendations and green marketing strategies effectively to create

sustainable value for the company's cocoa and Milo barley milk products

Limitation

Although many efforts have been made in the process of implementing the project, due to short time and limited research capacity, the team realized that there are still

some limitations as follows: Due to increasing scientific demands, the Clarifying the

topic takes a lot of time time and research experience The main weakness of this

study is the lack of necessary data or reliable sources Collecting and synthesizing documents is quite complicated, affecting the project implementation process

However, within the limits of practical experience, presenting the topic will lead to explanations that are not as expected and will not achieve maximum effectiveness