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10 STEPMarketing Plan for MILO

Ma. Camille Villagarcia5 Nov 2010

5 Steps for Part 1 (PTM and Positioning)

1. MILO PTM are “future champions”2. Who want to be the best that they can

be.3. Can choose Ovaltine, Chocquick, etc.4. Gap is all other brands focusing on

providing kids a healthy chocolate drink

5. The market size is P 6 Billion. MILO niche is P5.04 Billion (84%).

5 Steps for Part 2(Marketing Mix & Strategy)

6. MILO chocolate flavored drink

7. Is 13% premium 8. Uses TV, radio, prints,

internet/social networks and events

9. Is distributed nationwide10. Uses a NICHE approach to

win

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Positioning to the Primary Target Market

Part 1:Steps 1 to 5

1. MILO primary target market (PTM) are the ‘future champions” Demographics (3 – 13 years old,

M/F, ABC, single) Lifestyle (study, plays sports, into

competitions, interested in an active lifestyle)

Behavior (20g, at least once a day, daily, strong, healthy)

I need a nutritious drink

I am complete when I have succeeded and become a

champion in my life

I am proud when I accomplish things

I need to belong

2. “future champions” NWE

Future champions…

Need to get nutritious drinks, to belong (social), Self-Esteem, Self actualization

Choose Milo over other chocolate drink because of its… brand, taste, packaging, nutritional facts, credibility & awareness of company, promos, endorsers

Expect these when they use Milo healthier mind and body, active lifestyle,

become future champions,

3a. Milo has many formidable competitors

Direct: Ovaltine, Chocquick, Rich-O 3-in-1, Sustagen Chocolate

Indirect: Ready-To-Drink chocolate, milk (powdered & fresh), energy drinks

Variables: Age, Price, packaging, specific use, convenience of use, availability, Occasion of use, endorser, popularity, events/promos and brand

Age / Price Matrix: Milo is #1 in high priced product for 0-13 yrs

Price/ Age Matrix

3-13 yrs 14-24 yrs 25-49 yrs 50yrs up

High price

Low Price

Price vs. Age Matrix

Milo

OvaltineSustagenJr.

Chocquick

Rich - O

SustagenPremium

SustagenKid

Positioning vs. Brand Matrix

Competitive Positioning Map(Brand Matrix)

  Milo Ovaltine Sustagen Chocquick Rich-O

Rich chocolatey taste          

Has calcium          

Easy on the pocket          

Best for kids          

Nutritious          

Reputable endorsers          

Strong advertisements          

Supports sports events          

Supports humanitarian causes

Encourages active & competitive lifestyle          

4. Milo is strongly positioned in a niche market…

Milo is the only chocolate drink product that…

- actively supports sports events- encourages an active and

competitive lifestyle- promotes excellence, competition,

camaraderie and social awareness to the youth

Others merely focus on providing nutritional chocolate drink to the youth.

5a. According to research, the powdered chocolate drink market is about P6 Billion

Source: http://www.ats.agr.gc.ca/ase/4669-eng.htm

5c. Consumer data indicates a size of P 11 billion

Powder chocolate drink consumption1. As of 2009, estimated population is

92,226,600 --- 35.2% are 0-14 yrs old2. Assuming 1/4 of them will drink 1 glass

a day (20g/day w/c costs P4.3875)3. (92,226,600/4) x 35.2% x 4.3875 =35

Billion

5. Concluded that powdered chocolate drink market is billion

1. Competitor data= P 6 B

2. Company data = Data not available

3. Usage data = P 35 B

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The Marketing Mix Strategy

Part 2:Steps 6 to 10

6a. Product Shots of Powdered Chocolate Milk Products

Milo

Milo’s leading competitors

6b. Product Description

Milo is a powdered chocolate drink that is made from malted barley combined with other ingredients to provide a source of energy for active bodies.

2 Variants – Milo and Milo 3-in-1 Only comes in chocolate flavor It is available in 6 sizes – 20g, 26g,

200g, 300g, 600g, and 1,000g

7. Price – Milo is 13% premium price Milo 20g (12pcs) – P52.65 (~P4.39/pc) Milo 26g – P7.80 Milo 200g – P43.30 Milo 300g – P62.00 Milo 600g – P121.00 Milo 1,000g – P195.80

Milo’s price is almost at par with Ovaltine’s and is about 28% higher than Chocquick and 11% higher than Rich-O.

8a. PromoOnline Advertising

Events

Promos

TVCs

8b. Competitor promo

8b. Competitor TVC

9. Milo is distributed nationwide by Nestle

Supermarkets, sari-sari stores, convenience outlets, drugstores, market stalls

Nationwide Pick-up by customers Cash and credit transaction

10. Milo is a niche leader

Milo’s strategy is to capture and dominate the niche market of 3-13 yrs old future champions.

It benefits from the huge distribution leverage of Nestle.

Has an excellent, premium priced, excellent product distributed nationwide.

Has an active and excellent campaign towards sports that entices the youth.

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SUMMARY

5 Steps for Part 1 (PTM and Positioning)

1. MILO PTM are “future champions”2. Who want to be the best that they can

be.3. Can choose Ovaltine, Chocquick, etc.4. Gap is all other brands focusing on

providing kids a healthy chocolate drink

5. The market size is P 6 Billion. MILO niche is P5.04 Billion (84%).

5 Steps for Part 2(Marketing Mix & Strategy)

6. MILO chocolate flavored drink

7. Is 13% premium 8. Uses TV, radio, prints,

internet/social networks and events

9. Is distributed nationwide10. Uses a NICHE approach to

win

My Recommendation

Since Milo is has the biggest part of the market share, it should continue it’s strong marketing campaign.

They could expand their market by offering a new flavor to cater it’s market’s different taste/preference.

They should continue taking advantage of the events and social networking sites that help them promote their product.

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10 STEPMarketing Plan for MILO

Ma. Camille Villagarcia5 Nov 2010