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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