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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.
4Ps
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.
Product Extension
Milo Wafer bar
Pack Extra Nutrition with Milo

Milo Fuze

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.
General information about product and product
ingredient on pack

• Product branding
• Product Packaging
• Eco-efficient Packaging
Product Differentiation
•
•
•
•
•

Improve the packaging
Product recommendation
Add more ingredients
Add more items.
Milo product enhancement
2. Place
1. Product positioning
2. 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 structure
4. Product transportation

Manufacturer

C & F agent

Local
Distributor

Distributor

Retailers

Customers

use of both railway & roadway

3. Optimizing Networks
4. Place recommendation

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

Channel structure
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 pricing
Milo 20g(12pcs) - Rs. 60.00
(5.00/pc)
Milo 45g - Rs. 15.00
Milo 200g - Rs. 44.30
Milo 300g - Rs. 62.00
Milo 600g - Rs. 121.00
Milo 1,000g - Rs. 195.80
Segmentation
1.
•
•
•
•

2.
•
•
•

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

Demographic .
Age
Gender
Income and occupation
Family Size

3. Psychographic .
• Social class and lifestyle
• Personality
4. Behavioural
1.
2.
3.
4.
5.
6.
7.
8.

Benefits
User status
Marketing Factors
Attitudes towards Product
Readiness stage
Loyalty status
Occasion
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. Threats
Milo 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

Threats

Economical

Strengths
Forecasting
•
•
•
•
•
•
•

Future customer.
Setting the right price
Establishing pricing goals
Estimate demand, costs and profit
Estimate Sales.
Operating cost.
Investments.
Nestle milo (relaunch).

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Nestle milo (relaunch).

  • 2. 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.
  • 3. 4Ps
  • 4. 1.Product. • • • • The original milo Product item Product item depth Image of product
  • 5.
  • 6. • 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.
  • 7. Product Extension Milo Wafer bar Pack Extra Nutrition with Milo Milo Fuze Milo chocolate bar
  • 8. • Available in different flavor. Chocolate, Strawberry, Mango, Normal. • Available in small pouch. 5 Rs. and 15 Rs. • Available in cans and tins.
  • 9. General information about product and product ingredient on pack • Product branding • Product Packaging • Eco-efficient Packaging
  • 10. Product Differentiation • • • • • Improve the packaging Product recommendation Add more ingredients Add more items. Milo product enhancement
  • 11. 2. Place 1. Product positioning 2. 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 )
  • 12. 3. Channel structure 4. Product transportation Manufacturer C & F agent Local Distributor Distributor Retailers Customers use of both railway & roadway 3. Optimizing Networks 4. Place recommendation Clearing & Forwarding Agents [C&F Agents] are appointed at various places. Such agents stock and sale goods on behalf of the principal Channel structure
  • 13. 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
  • 14.
  • 15. Free milo mug with every 600g milo pack.
  • 16. 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.
  • 18.
  • 19. 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.
  • 20. Pricing Tactics • • • • • • Quantity discount Cash discounts Functional discounts Seasonal discount Promotional allowances Rebates
  • 21. Milo Package pricing Milo 20g(12pcs) - Rs. 60.00 (5.00/pc) Milo 45g - Rs. 15.00 Milo 200g - Rs. 44.30 Milo 300g - Rs. 62.00 Milo 600g - Rs. 121.00 Milo 1,000g - Rs. 195.80
  • 22. Segmentation 1. • • • • 2. • • • Geographic. Country Regions Metro (city) Cities Town Population density Demographic . Age Gender Income and occupation Family Size 3. Psychographic . • Social class and lifestyle • Personality
  • 23. 4. Behavioural 1. 2. 3. 4. 5. 6. 7. 8. Benefits User status Marketing Factors Attitudes towards Product Readiness stage Loyalty status Occasion Usage rate
  • 24. Targeting 1. Differentiated Targeting …. Different Product For Different Market Segment . • Children • Youth • Working class • Senior citizen
  • 25. 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.
  • 26.
  • 27. 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.
  • 28. 2. Weaknesses. • • • • • Not enough investment in milo. Packaging(design of tin + labeling). Not innovative Low R&D Weak, damaged brand
  • 29. 3. Opportunities. • • • • Increased media availability (Mobile/internet) Increased fitness industry. Increase awareness of health and fitness. Sponsorship (through sporting events).
  • 30. 4. Threats Milo 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.
  • 33. Forecasting • • • • • • • Future customer. Setting the right price Establishing pricing goals Estimate demand, costs and profit Estimate Sales. Operating cost. Investments.