Marketing Mix (4 P’s) of MILO

Milo:

In Greek mythology there was a Roman athlete named MILOn

who was famous for his feats of strength. Legend has it that he

once carried a four-year-old bullock through the stadium in

Olympia, Greece! You may not grow as strong as Milon by

drinking MILO, but it is a very tasty way to get many of the

nutrients you need to grow strong.

Product:

‘Milo’ the energy drink nestled into the Indian market in 1996. The responsibility of

launching the drink in a market dominated by time tested Bournvita and Boost was no

easy task for Nestle. Being the fifth player in the brown beverage market, the drink was

up against Bournvita which had an enviable market share of 40% and SmithKline

Beecham, a strong contender, especially in the south. After establishing Milo as the

world’s number one energy drink and its taste benefits, the attention shifted to presenting

its emotional benefits too. The focus was now on revamping the brand image from being a

tasty energy drink to one that provided extra energy to ‘win’. NewMilo is for active,

growing children its energy releasing B vitamins give them the extra energy, vitality and

stamina that make them winners. Milo, the chocolate milk beverage targeted essentially

at teenagers in the urban marketplace is the fastest selling product here. The only

surprise finding being that instead of growing up kids, senior citizens like to have it

everyday with their glass of milk.

Milo now has Actigen – E which consists of

Promotion:

Using the consumer insight that mothers are driven by a need to support their sons’ hard

work and help them succeed when under pressure, the agency launched an impressive ad

campaign. The research following the campaign revealed the need for Milo to be

perceived as a drink with 2 strong deliverables- Energy and Taste. Thus a strategy was

adopted wherein the agency targeted children belonging to the age group of 7-12 years

and through them their mothers. The strategy worked and led to a 40% volume growth,

with the market share growing to 8.8%. The agency came up with commercials addressed

to children as the target audience and mothers as the secondary audience. The campaign

proved to be successful with the drink emerging as the No. 2 brand in 3 out of 4 zones,

and its market share growing to an impressive 11.4%. Not satisfied, the agency undertook

another research, which revealed two issues that needed to be addressed immediately.

Firstly the pester power, which in this category was not very high and secondly, the fact

that Milo’ s brand promise of winning was unfortunately being perceived as an

advertising/ marketing claim. Hence Nestle embarked into yet another campaign, this

time with the intention of improving the brand image by overcoming a mother’s

apprehensions and getting her to subscribe to the brand promise. Other than that it takes

an active part in the sponsorship of sports event at both school & colleges, they also

distribute T-Shirts having Milo logo and other such apparel. This helps company to

promote their product as well as build their Brand Awareness.

Place:

Distribution is the most important thing next to sales. Sales are not possible if the

distribution network is not effective. If the product is not available in the market at the

right time & at the right place the customer may switch to another product which can be

a great loss the company.

Distribution Pattern followed by Milo:

Price:

Taking competition into consideration Milo provides its product at an affordable price to

the customer than any other HFD in the market and no compromise on quality is made.

Because of such competitive price it is also catering to the middle class & lower middle-

class.

Milo

Content Box pack (RM)

200 g

500 g

1000 g

180 ml

250 ml

Ice Cream

3 in 1

Milo Cereal

Milo Sejuk

Milo nuggets

Chocolate bar

Packing:

Milo comes in an attractive Box pack which is green in color which is very attractive

and eye catching other than that it is light weight as compared to the bulky glass jars of

other companies, and it is also convenient to store & handle. With glass jar there is

always a chance of breaking and harming the child if he tries to have milk on his own. But

the packaging of Milo is so convenient that a child can easily prepare his own milk

preparation and have it whenever he wants.