NESTLE MILO

History of Milo• MILO comes from humble Aussie roots? • MILO derived its name from MILON, a

champion athlete of ancient Greek mythology. He was renowned for his feats of strengths.

• MILO was developed in the 1930s • 1934: Launched in Australia as a Tonic Food

Drink. • 1936: Sponsored the Olympic Games.

1939: MILO was introduced in South Africa.2001: In South Africa, MILO was enriched with B Vitamins. 2007:

MILO is the Malt Chocolate energy drink that is synonymous with energy, good health and success, using sport as a metaphor for life.

4PsProduct

Place

Promotion

Price

1.Product.• The original milo • Product item• Product item depth• Image of product

• Balanced nutrition-the nutrient content has been improved to meet evolving demands. There are 4 main components in each Milo product which is;

1. PROTOMALT-a malt extract with a mixture of different Carbohydrates that provides energy and nutrients the body needs.

2. ACTIGEN-E -a combination of 8 vitamins and 4 minerals which helps in the optimal release of energy.

3. Natural Goodness-of malt, skimmed milk, and cocoa.

4. Protein- Protein is one of the micronutrients that is important to built and repair body tissue.

Milo Wafer bar Pack Extra Nutrition with Milo

Milo Fuze

Product Extension

Milo chocolate bar

• Available in different flavor.

Chocolate, Strawberry, Mango, Normal.• Available in small pouch. 5 Rs. and 15 Rs.• Available in cans and tins.

• Product branding• Product Packaging• Eco-efficient Packaging

General information about product and product ingredient on pack

Product Differentiation

• Improve the packaging• Product recommendation• Add more ingredients• Add more items.• Milo product enhancement

2. Place1. Product positioning2. Channel function-The two types of channel are by using

retailer and merchant/wholesaler. These channel also have their own function such as

transactional function(contacting, promotion, negotiating, risk taking ),

logistical function ( physically distributing, storing, sorting ) and

facilitating function (researching, financing )

3. Channel structure4. Product transportation use of both railway & roadway

5. Optimizing Networks6. Place recommendation

Manufacturer C & F agent

DistributorLocal Distributor

Retailers Customers

Channel structureClearing & Forwarding Agents [C&F Agents] are appointed at various places. Such agents stock and sale goods on behalf of the principal

3. Promotion• FREE 1 MILO sporty tumbler

with every purchase of MILO 1kg pack.

• Buy Milo 1 Kg free 1 Juara Cup

• Buy MILO 400g free 50g • Free Raya Cards for any 6 cans

purchase

Free milo mug with every 600g milo pack.

Advertising• Television• Outdoor media-Nestle also collaborate with Ministry

of Sports and Youth in order to organize national and international sport event.

• Internet- Facebook, own site.• Printed Media-Printed media includes newspapers,

magazines as well as posters.

Outside Promotion

4. Price• Price strategy-It consists of 3 type of pricing

strategy which is• Price skimming-Marketer sets a relatively high price for a product or service

at first, then lowers the price over time.

• Penetration pricing-Setting a relatively low initial entry price, often lower than the eventual market price, to attract new customers.

• Status quo pricing-Marketing approach that aims at keeping things as they are by not trying to grab a larger market share , thus avoiding direct and

expensive confrontation with the competitors.

Pricing Tactics

• Quantity discount • Cash discounts• Functional discounts• Seasonal discount • Promotional allowances• Rebates

Milo Package pricingMilo 20g(12pcs) - Rs. 60.00 (5.00/pc)Milo 45g - Rs. 15.00 Milo 200g - Rs. 44.30Milo 300g - Rs. 62.00Milo 600g - Rs. 121.00Milo 1,000g - Rs. 195.80

Segmentation1. Geographic.• Country Regions• Metro (city) Cities• Town• Population density

2. Demographic .• Age Gender• Income and occupation• Family Size

3. Psychographic . • Social class and lifestyle• Personality

4. Behavioural

5. Benefits6. User status7. Marketing Factors8. Attitudes towards Product9. Readiness stage10.Loyalty status11.Occasion12.Usage rate

Targeting

1. Differentiated Targeting …. Different Product

For Different Market Segment .

• Children

• Youth

• Working class

• Senior citizen

Positioning

• Malt based energy health drink. • Different types for different age groups and sports

group.• Various flavors (chocolate, Strawberry, Mango).• Effective advertisement.• Attractive Packaging.• Maintaining good relation with customer.• Satisfying customer wants.

SWOT analysis

1. STRENGTH.• Brand itself.• Product quality.• Energy drink.• Value for money.• Part of Nestle(reputation) funds used for nestle promotion.• Unique selling point.• Available in different flavor. main focus is on chocolate energy food drink.• One product for 2 different age categories.• It is available in different shapes and types.

2. Weaknesses.• Not enough investment in milo.• Packaging(design of tin + labeling).• Not innovative• Low R&D• Weak, damaged brand

3. Opportunities.• Increased media availability (Mobile/internet)• Increased fitness industry.• Increase awareness of health and fitness.• Sponsorship (through sporting events).

4. ThreatsMilo has many formidable competitors.• Competition.• Competitors could use aggressive marketing tactics cut

prices/ increases promotion .• Competitors bring out similar products.• Competitors have diversity in packaging (bottles

pouches, cans, etc.

TOWS Matrix

PEST Analysis

Political

Economical

Strengths

Threats

Forecasting

• Future customer.• Setting the right price• Establishing pricing goals• Estimate demand, costs and profit• Estimate Sales.• Operating cost.• Investments.

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