5.

1 Business/Company Context

About Nestle

This is one of the major corporate brands specializing in the production of nutritional foods

known to many people around the world. Nestle is not only a leader in nutritional foods, but

it is also a leader in two different industries: coffee and mineral water. This brand provides a

variety of different product categories from fast food to baby food.

With more than 100 years of operation in the food production industry, Nestle has become

one of the major brands owning many prominent commodity brands. Nestle's products are

distributed worldwide, in the Vietnamese market and the international market.

Based on the correct development of Sodium in the past, it has helped Milo's snail and

crystallization strategies become better in the international environment.

About Milo

Milo, a flagship chocolate malt beverage produced by Nestlé, has been a staple in the

beverage market since its inception in Australia during the 1930s. Over the decades, it has

evolved into a globally recognized brand, particularly favored by children and young adults.

The unique flavor profile of Milo, combined with its nutritional benefits, has made it a

popular choice among consumers seeking both taste and health.

Product Versatility and Nutritional Benefits

Milo's versatility is one of its key strengths. It can be prepared in various ways—served hot

or cold, mixed with water or milk—making it adaptable to different consumer preferences

and climates. This flexibility allows Milo to cater to diverse markets, from warm tropical

regions to cooler climates where a hot beverage is more appealing.

Nutritionally, Milo is fortified with essential vitamins and minerals, including calcium, iron,

and various B vitamins. These nutrients are particularly beneficial for growing children and

active individuals, positioning Milo as not just a beverage but also a source of energy and

nourishment. The brand's marketing often emphasizes these health benefits, promoting Milo

as an ideal drink for sports and physical activities.

Global Expansion and Market Strategy

In recent years, Milo has strategically expanded its footprint in various international markets,

particularly in Asia and Africa. The brand has tailored its marketing strategies to resonate

with local cultures and preferences. For instance, in countries like Malaysia and Singapore,

Milo is often associated with local sporting events and community initiatives that promote

physical fitness among youth.

Milo’s branding heavily emphasizes energy and vitality, aligning with the aspirations of its

target demographic—active individuals who value both taste and nutrition. Sponsorship of

sports events and partnerships with schools have further strengthened its connection with

consumers. However, despite this robust market presence, Milo faces challenges from

increasing competition within the beverage sector and shifting consumer preferences towards

healthier options.
5.2 SWOT Analysis

1. Strengths

In Milo's advertising campaigns, milk products are known for their chocolate flavor as

the focus and green packaging. With sustainable development and maintaining

traditional features, the product is easily recognizable as a brand. Milo's marketing

strategy builds a strong and diverse distribution channel to all consumers. Milo's PR

campaign has always received the attention and attraction of many people and many

brands. The PR images revolve around the issue of nutrition for young people and the

image of healthy youth. Milo products are always one of the highly appreciated

products not only thanks to their flavor but also their nutritional content.

2. Weaknesses

My products are easily recognizable. Milo often does not replace the packaging

image, so its packaging printing is rarely improved and quite outdated. Milo's

marketing strategy will focus on flavor; From the past to the present, the flavor of

Milo has always been chocolate, although the degree of sweetness has been adjusted,

the taste has not changed.

3. Opportunity

Milo is one of the foods with many nutritional ingredients and good energy functions.

There, for those who are concerned about their health, they will definitely love this

drink. Because it was formed early and appeared early in the Vietnamese market, all

of Milo's advertising programs are of interest and loved by customers. In the new

year, its name has recently been built by Milo, which has designed packaging made of

paper to suit the environmentally friendly trend. This is considered one of Milo's

marketing strategies to help raise awareness of environmental protection and

consumer health.

4. Challenge

Food is probably one of the industries that is no longer too strange, but it has a lot of

potential competitors. The market is currently seeing the emergence of many new

brands that bring freshness to consumers, which is a challenging factor for Milo's PR

campaigns.
5.3 Competitor Analysis

1. Vinamilk

- Market positioning: One of the largest dairy companies in Vietnam, offering a wide

range of dairy products including milk, yogurt, cheese, and ice cream. It is positioned

as a provider of high-quality, nutritious dairy options for families.

- Product features: Offers a diverse product portfolio including fresh milk, powdered

milk, yogurt, and cheese.

- Target audience: Targets a broader audience, including families, health-conscious

consumers, and individuals of all ages seeking dairy nutrition.

- Marketing strategies:Utilizes a wide range of advertising channels, including TV,

social media, and community events and focuses on promoting the quality and

nutritional benefits of its dairy products, often highlighting local sourcing.

- Pricing strategy: Pricing varies by product category, with a focus on affordability

while maintaining quality, making it accessible to a broad segment of consumers.

- Distribution channels: Distributed through supermarkets, grocery stores,

convenience stores, and local markets, ensuring widespread availability across

Vietnam.
2. TH true milk

- Market positioning: Positioned as a premium milk brand that emphasizes purity,

natural ingredients, and health benefits. It often markets itself as a wholesome option

for families.

- Product features: Made from fresh, high-quality milk without additives or

preservatives

- Target audience: Appeals to health-conscious families, individuals seeking premium

dairy options, and consumers interested in organic products.

- Marketing strategies: Focuses on the purity and health benefits of its products and

utilizes storytelling in marketing to connect with consumers about the origin and

quality of the milk

- Pricing strategy: Often priced as a premium product, reflecting its quality and

sourcing practices, appealing to consumers willing to pay more for health benefits.

- Distribution channels: May also be found in supermarkets but could have a stronger

presence in health food stores and organic product retailers

5.4 PESTLE Analysis

1. Political

● Regulations on Food and Beverage: Compliance with food safety standards

and regulations in different markets.

● Government Policies: Support for nutritional programs and initiatives

promoting healthy diets can benefit Milo's positioning.

● Trade Policies: Import/export regulations can affect the availability and

pricing of ingredients used in Milo.

2. Economic

● Economic Conditions: Economic growth or recession in target markets can

influence consumer spending on non-essential goods like beverages.

● Pricing Strategies: Fluctuations in raw material costs (e.g., cocoa, malt) can

affect pricing strategies.

● Income Levels: Changes in disposable income levels can impact the

purchasing power of consumers, particularly parents buying for children.

3. Social

● Health Consciousness: Growing awareness of health and nutrition can lead to

increased demand for healthier beverage options.

● Lifestyle Changes: Busy lifestyles may drive the demand for convenient,

ready-to-drink products.

● Cultural Preferences: Variations in taste preferences across different regions

can influence product offerings and marketing strategies.

4. Technological

● Production Technology: Advances in food processing and preservation

technologies can improve product quality and shelf life.

● E-commerce: The growth of online shopping presents opportunities for

expanding distribution channels.

● Social Media: Utilizing social media for marketing and engagement with

consumers is crucial for brand awareness and loyalty.

5. Legal

● Food Safety Laws: Compliance with local and international food safety

regulations is critical for product acceptance.

● Advertising Regulations: Adherence to regulations regarding advertising to

children, especially for products marketed towards young audiences.

● Trademark Protection: Ensuring brand protection and managing intellectual

property rights to prevent counterfeiting.

6. Environmental

● Sustainability Practices: Increasing consumer preference for sustainable and

ethically sourced ingredients can impact ingredient sourcing and production

practices.

● Environmental Regulations: Compliance with environmental regulations

regarding waste management and packaging can affect operational costs.

● Climate Change: Variability in climate can impact the supply chains for key

ingredients like cocoa and malt, potentially affecting availability and prices.
Chiến lược Marketing của Milo: bí quyết trở thành “ông lớn” ngành fmcg | bởi Ori Marketing

Agency | Brands Vietnam