PRINCIPLE OF MARKETING

FINAL ASSIGNMENT
----------
DEVELOP AN ANNUAL MARKETING PLAN
FOR MILO

INS200306
GROUP 9

HA NOI – 2022
 GROUP 9

NGUYỄN THỊ MỸ UYÊN – 20070379

NGÔ THỊ THANH NGA – 20070263
NGUYỄN HẢI HÀ – 19071344
VŨ THÙY DƯƠNG – 20070438
NGUYỄN KHÁNH DUY – 20070431

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 EXECUTIVE SUMMARY
The Nestlé Vietnam Company is one of the largest food and beverage in the world. The
company is constructing a comprehensive one-year marketing plan for a present product
in Vietnam - Milo. A marketing plan facilitates the company directs its advertising
dollars to in which it will have the most impact. A successful marketing strategy takes
time and commitment, and that takes patience. The primary goal of this project is to
create a comprehensive business and marketing plan for Milo, a product of the Nestlé
company. Through researching official websites and reliable information sources, our
team designed a complete marketing plan for this project. Our marketing plan has nine
core sections. First, in sections number one and two, we analyzed the company through
its strengths, weaknesses, and the situation of current marketing. In these parts, we
provided you with a competitive analysis involving either brand or industry-level and a
macro-environmental analysis of forces impacting the market. At the same time, we
have pointed out the challenges and opportunities of Nestle company in selling Milo
dairy products. Next, we determined the plan's objectives according to the SMART
principle to move in the right direction that the company has set out before. In addition,
we made a projected marketing budget to control the effectiveness of the project.
Finally, our team deployments a specific action plan. It helps us to observe our
development progress as well as to deal with the problems which could be occurred.

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 TABLE OF CONTENT
I. Company Analysis 5

1. Overview 5

2. Future orientation. 5

3. Mission & Vision Statement. 6

II. Current Marketing Situation Analysis 6

1. Market overview 6`

2. Product review 7

3. Competitors 7

4. Macro environment analysis 8

5. Competitive analysis involving either brand 10

III. Opportunity Analysis 11

IV. Objectives12

V. Marketing Strategy 13

1. Market Segmentation 13

2. Choose the target markets 14

3. Product positioning 15

4. Some marketing campaigns in Vietnam 15

VI. Marketing Mix 16

1. Product 16

2. Price 17

3. Places 18

4. Promotions 19

VII. Projected Marketing Budget 20

VIII. Action Program 23

IX. References 25

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I. Company Analysis
1. Overview
The Nestlé Vietnam Limited Liability Company was set up in 1995. It is a 100%
foreign-invested company. It is under the Nestlé S.A Group that is one of the largest
food and beverage groups. Moreover, it presents in 191 countries with 328,000
employees globally. The headquarters of Nestlé is in Vevey, Switzerland.
Nestlé's current brands in the Vietnam market include Kit Kat, Koko Krunch, Maggi,
Cerelac, MILO, Nestea, Nesvita, Nescafé, La Vie, etc. Nestlé Vietnam currently has six
food, water, and beverage factories located at Dong Nai, Long An, and Hung Yen. The
company also has employed about 2.300 people nationwide.
Furthermore, with a total investment of more than 600 million dollars, Nestlé Vietnam
now no longer handiest demonstrates its dedication to long-term development in
Vietnam, but additionally its desire to improve the life quality and contribute to a
healthier future for generations of Vietnamese families.
According to The Vietnam Business Council For Sustainable Development (VBCSD),
in 2021, Nestlé Vietnam was the most sustainable enterprise in the manufacturing
sector. This is the third year in a row that Nestlé Vietnam has been among the three most
sustainable businesses and the first year that it has been named the most sustainable
business in Vietnam.
2. Future orientation. 
 Market growth.
- Nestlé Vietnam serves not only the domestic market but also international markets.
At present, our “Made in Vietnam” products have been exported to some 25
countries all over the world.
- Consolidate and expand the marketplace segment for target customers as well as
useful marketing tools to research the market then meet the need and attract more
customers.
 Branding goals.
- Nestlé Vietnam is the leading, sustainable, and “global” company of Vietnam.
- The company’s goal is that improving the quality of life and contributing to a
healthier future.
- Nestlé Vietnam wants to create a better and healthier world as well as inspire people
to live healthier lives.
3. Mission & Vision Statement.
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  Mission.
- Becoming the leading nutrition, health, and wellness company in the world.
- Nestlé’s mission of "Good Food, Good Life" is to provide consumers with the best
tasting, most nutritious choices in a wide range of food and beverage categories and
eating occasions, from morning to night.
 Vision.
- Nestlé is a leading, competitive, Nutrition, Health, and Wellness Company delivering
improved shareholder value by being a preferred corporate citizen, preferred
employer, preferred supplier selling preferred products.
 Key factor.
- Customer: Vietnamese consumers who demand for nutrition, health food and
beverage categories
- Industry: Nutrition, health food and beverage
- Market: Vietnam
- Investing in processing plants with the most modern scale and technology

II. Current Marketing Situation Analysis

1. Market overview
Milo Nestle milk brand name is associated with the childhood of many Vietnamese
children. The product is popular for its good quality and reasonable price. The Milo
brand is a prime example of a high-tech product, patented and distributed directly to
consumers by suppliers. In addition to always trying to do everything to build trust and
love from customers, Milo always strives to lead or follow the consumer trend of the
market, constantly researching and learning to create and meet product needs.
In addition to powdered milk products, the Milo brand also develops many other
products such as instant milk, sandwiches, lozenges, etc. They are all named Milo and
taste similar. It helps businesses provide customers with more choices, solving many
problems that powdered milk products cannot meet as convenience and speed.
The success of product development in Milo's marketing strategy is enforcing the
nutritional value of each product provided to consumers. The main reason why Milo
stands out in the Malaysian market is the company's commitment that the product can
provide enough nutrition and energy for children every day. Over the years, the nutrition
communication content has gradually improved to meet the growing market demand: a
newly introduced milk formula containing ACTIGEN-E (8 vitamins and 4 minerals
good for the body) and PROTOMALT (barley sprouts), which contributes to
strengthening the belief from customers that this is a nutritious and essential product for
children.
2. Product review 

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 Milo is a beverage product originating from Australia produced by Nestlé and developed
by Thomas Mayne in 1934. Netstlé's Milo barley drink is the perfect combination of the
uniquely delicious taste of cocoa and the source of nutrients nature rich in protein and
nutrients from milk, whole wheat germ, and vitamins and minerals.
MILO is a nutrient-rich, low GI malt powder drink, which gives kids who need a boost,
the nourishing energy they need to take on the day. MILO adds 32% more protein, 70%
more calcium, plus more iron (30% RDI), and more vitamin D (32% RDI). MILO is
also low GI to provide sustained energy for active kids. Milo brand also develops many
other products such as instant milk, canned milk, sandwiches, lozenges, etc. To maintain
the development vision health and help children reach out, NESTLÉ MILO has
constantly improved products in both design and quality over time.
Milo is a favorite product in many countries around the world, especially Malaysia
where the name Milo is used as a special word for chocolate-flavored drinks. In this
market, Milo milk accounts for 90% of the total milk powder market share, making
Malaysia the country using the most Milo in the world. Similarly, in Singapore, Milo
ranks No. 1 in the list of 10 favorite brands in 2017. Along with many other countries
such as India, Australia, Vietnam, etc. Milo has become an indispensable drink in every
family, becoming the dominant milk brand in many markets.
3. Competitors
In the market, main competitors often have a system of partners such as suppliers,
distributors, manufacturers of complementary products, etc. It is also the source of their
strength. In the market, Milo has a lot of competitors, but in Vietnam, Ovaltine is a
direct competitor of Milo as both brands focus on the baby milk segment.
Nowadays, the "great advertising war" is no stranger to large and small businesses.
Surely you have witnessed the fierce battles between marketing campaigns. One of the
most prominent battles is the confrontation between the two giants in the "barley milk"
product segment, Milo and Ovaltine, specifically between Nestlé Milo and
FrieslandCampina. It is not enough to have a "slant" communication strategy, because
Nestlé Milo has accompanied consumers with more than 20 years of active activity
compared to its "friend" Ovaltine that just woke up after many years. Milo brand also
increased "brand recognition" through this hit event, especially during the non-stop
discussion sessions on social networking forums.
Milo's wisdom is to continue to focus on other areas to compete, such as improving
product quality (Product), offering many discount campaigns (Promotion) rather than
worrying too much about communication. Because of the phenomenon of mixed
opinions, people floating - people sinking is a common thing, especially whether sales
and market share are guaranteed or not. The proof is that, in 2018, according to a

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 Nielsen report, Milo led the market with about 60.4% market share, ten times higher
than "rival" Ovaltine with only 5.9%, which has decreased by 0.6% compared to the
same period last year.
4. Macro environment analysis
 Suppliers
Nestle' is a leading corporation in the world in the field of food and nutrition. Nestle
provides not only high-quality products but also a good company culture. As a result,
Nestle's strategic partners are selected with great care.
Service suppliers to Nestle' should comply with the Business Principles that have
created Nestle's system of reliable suppliers and ensure that the high quality of the
products is maintained.
Principle 1: Integrity in business.
Principle 2: Sustainability.
Principle 3: Labor standards.
Principle 4: Safety and health.
Principle 5: Environment.
To ensure that supplier regulation is effectively performed,  the company reserves the
right to regularly evaluate a supplier's compliance with this regulation. In which, Thanh
Dat company organizes to provide product circulation services of Nestle company. It is
a famous, reputable, and quality transportation service provider that is recognized by
many leading professional companies in the world. Silk chooses DHL, YAMAHA, or
VNPT, Ariston.
The company contributes to the improvement of agricultural production, the social and
economic status of farmers, local communities, and the improvement of production
systems to build a more environmentally sustainable system school. To ensure that the
company's factories source competitively with raw materials of satisfactory quality and
safety.
The company is engaged in the development of sustainable agricultural farming
methods and systems that contribute to long-term production efficiency, satisfactory
income for farmers, and the transfer of agricultural knowledge to farmers provided.
The company supports the adoption of new technologies and agricultural advances,
including the opportunities offered by biotechnology when its positive effects on food
safety, environment, and farming methods in agriculture yields are confirmed by
scientific research and accepted by consumers.
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 Nestlé's Sustainable Agriculture Initiative (SAIN) guides participation in the farm
system to support sustainable farming practices, rural development, processes, and raw
material purchasing methods.
Material sources: Nestle uses ingredients from 2 core sources:

 Domestic raw materials account for 50% of total raw materials. The most used
ingredients are green coffee, sugar, malt, and packaging.
Import source: 30% of materials imported from abroad are sourced from other
Nestle in the world as milk powder, cereal powder, tea essence. The rest is
imported from many different countries under the comprehensive contracts of
Nestle such as super monosodium glutamate, flavoring, cocoa powder. Imported
raw materials are currently subject to a very high import tax rate. There are
materials subject to 50% export tax.
 Customers
When deciding to participate in the business process, not only the company but all
businesses must determine the specific market, determine the needs of the customers
that they are able to supply. Therefore, targeting the market is focusing on customers,
which is the top goal of the business.
Customer issues are an integral part of the competitive environment. Customer loyalty
can be the most valuable asset to any business. That credibility is achieved by better
satisfying the needs and tastes of customers than competitors. It is very important to find
out the needs and tastes of consumers for the company's products as well as learn the
factors that affect the shopping behavior of customers to offer ways to react flexible
response.
Research on shopping behavior patterns: Currently, beverage products on the market are
very diverse, companies compete with each other by launching products with many
different brands and flavors for consumers to choose from, so customers have a variety-
seeking shopping behavior.
Consumers change brands many times, at first, they can buy a certain brand without
much consideration, after consuming, they evaluate, comment, then they buy and use the
brand against other brands. Beverage products, especially nutritional drinks today, with
prices and quality not too different, sometimes changing brands is just to find variety,
not because of dissatisfaction.
Nestle's main goal is to enhance the quality of everyday life for consumers, everywhere,
by delivering better food and beverage products that are healthier and promote a better
lifestyle. strong. The company demonstrates this through the Group's slogan "Good
Food, Good Life". Guided by our commitment to Nutrition, Health, and Wellness, we
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 work to enhance the nutritional value of our products while enhancing consumer taste
and enjoyment. We also develop brand communications and information to encourage
and empower consumers to make informed choices about their diets.
The company is committed to demonstrating honesty, integrity, and fairness respecting
Nestle's uncompromising standards with its customers.
 The public
Nestle is a global leader in Food and Beverage with an extensive production and sales
network.
Nestle has 100 years of experience in the Vietnamese market, so it is trusted and highly
appreciated by the financial community, media, public authorities, localities, and social
organizations.
And especially the company's social marketing campaigns are widely supported by the
public because although it is a multinational company, it is these campaigns that have
helped Nestle have a firm place in the hearts of the Vietnamese people. Code of conduct
to treat each other with respect and dignity and expect each person to uphold individual
responsibility. The company employs capable and enthusiastic people who respect the
enterprise's values, give them equal opportunities to grow and advance, protect their
privacy, and do not compromise yield to any form of harassment or discrimination.
Therefore, employees in the company have had a comfortable, dynamic working
environment and promote all their potential abilities.
5. Competitive analysis involving either brand 
Nestle is a company that provides a variety of products, so having many competitors is
inevitable. However, there are also companies with unfair competition counterfeit
products of the company. Like the case in 2004, on Hang Buom Street, Hanoi suddenly
appeared a type of instant tea with the packaging that looked very similar to Nestea tea,
called Freshtea, produced by Thuy Huong Company. In addition to the similar name, the
details on the packaging such as the green color, the shape of the leaf, the cup, the
stone ... of Freshtea are similar to Nestea.
Meanwhile, Nestea has been a well-known trademark for many years now, registered as
an international trademark in over 100 countries. Many consumers have confused
between these two types of tea. The case was sued by the owner of the Nestea label, but
so far has not been resolved. The reason is that the Freshtea label has been granted a
trademark protection certificate by the National Office of Intellectual Property of
Vietnam, the Ministry of Science and Technology. The Market Management Authority
was extremely confused when the Freshtea brand owner issued this certificate.

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 Similarly, the Milo brand is also being rivaled by Mina Company's Good Cocoa label
and Royal Company's Info label. If consumers do not have experience, it will be
difficult to distinguish these types of cocoa milk from the wording of the brand in the
frame, the yellow image, the brown light... on the packaging of the two labels Good
Cocoa and Inso are both very similar to the Milo label.
In addition, the company's barley nutritional drink has another "strong" competitor,
Ovaltine, both of which have the same cocoa flavor but are different in taste, but also a
difficult choice for consumers. Although milo still accounts for the largest percentage of
this market, Ovaltine is also considered a danger with aggressive marketing campaigns
that strike right into the psychology of consumers. Next, it can be said that there are
substitutes for milo products in the country such as chocolate-flavored milk of brands
such as Vinamilk, Dutch girl, TH true milk, etc. Although not extracted mainly from
barley, the taste of such products may be the consumer's alternative. Recognizing such
reality, promoting marketing for strategic products of the company like milo has become
an important and urgent issue.

III. Opportunity Analysis

1. Strengths
- Nestlé has an intensive and different distribution system that is not simplest penetrated
in city regions however additionally rural regions. They always consolidate and expand
the relationships with suppliers, retailers, vendors, and distributors.
- Environmental sustainability effort is the most virtual success factor of Nestlé Vietnam.
Few of the firm's opponents may shape its efforts in sustainability, which leads to
decrease manufacturing costs, a cleaner environment, and better communities.
- The product portfolio is broader and more diversified than any of its rivals consisting of
powdered and liquid beverages, milk products and ice cream, prepared dishes and
cooking aids, nutrition, confectionery, water.
- It is the most valuable brand famous for nutrition, healthy food, and beverage and was
founded long ago in 1995.
2. Weaknesses.
- If Nestle is majorly dependent on advertising to market its products, it will increase the
product prices, leading to a high risk related to the revenue. Moreover, the company
received many negative public criticisms that affect customers' trust. Therefore, it
reduces sales due to the mistakes in defective products.
- Nestle’s product portfolio highly competes with various multi-national companies and
diverse native companies. With the arrival of additional technology and constant
disruptions within the industry, nestle is often at risk of losing its existing client base.
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 3. Opportunities.
- High market expanding due to wide distribution system and make opportunity in
introducing products into sectors other than food and beverages.
- Nestlé could source all of its materials from sustainably grown plantations and farms
that make quality materials to receive the trust and advocate from customers.
- The company could grow the number of small food startups under its popular brand and
become a partner with startups to promote its product’s brand.
4. Threats.
- Nestlé has previously faced many bad effects on consumers' reputation and trust after
failing to comply with food safety, leading to serious influence for the company.
- Nestlé's manufacturing is mainly dependent on the usage of water. Accessing clean
water through less expensive sources has become difficult for the company for several
reasons such as population growth, climate change, increased pollution, water waste,
etc.

IV. Objectives
1. Specific
The calculation of the title is usually determined by three questions: What? Why? and
How? 

 What ?: Stable or high revenue each year to become one of the leading dairy
companies in Vietnam and bring MILO to every consumer across the country 
 Why ?: To meet the development requirements of the company as well as
effectively exploit the resources that the company has. 
 How ?: Develop strategic human resource management, maintain and manage
operations with solid development goals
2. Measurable 
MILO's goal: Vietnam has 24 million households, but Nestlé MILO has only
approached half of them. Therefore, MILO continues to strive to reach rural areas. 

 Achieving higher sales than other dairy products such as Vinamilk, Ovaltine,
Moc Chau, etc. 
 There are already 3 Nestlé factories in Vietnam, including Nestlé Dong Nai
factory, Nestlé Binh An factory (Dong Nai), and Nestlé Bong Sen factory (Hung
Yen). So want to expand production scale Milo

3. Achievable

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 Over the past 25 years, Nestlé MILO has invested nearly 5,500 billion VND to research,
develop, and manufacture products in Vietnam, providing more than 10.5 billion boxes
of MILO. In addition, MILO is the most active brand on social media in January 2021 in
the dairy industry in Vietnam.

 MILO has grown continuously over the years, leading the "energy milk" market
with a 60.4% market share, the highest figure ever (10 times higher than
Ovaltine), an increase of 5.6% (almost equal to the entire market of Vietnam).
Ovaltine)
 POSM with 3D Animation technology is deployed by Milo in 140 supermarkets
nationwide in Vietnam so the goals set out above are not too difficult to achieve
4. Realistic
It is a dairy product that is facing fierce competition in the Vietnamese market against
competitors such as Ovaltine, Dutch Lady, Vinamilk, Nutifood, Fami, etc. Realizing that
today most parents tend to want their children to focus on learning and achieve good
academic results, but forget that sports play an essential role in the all-round
development of children. Through sports, children not only practice physical fitness but
also learn many valuable lessons, practice character, and positive attitude, care about
people. And Milo is a nutritional supplement product and organizes a series of health
training programs for children. Therefore, Milo's campaigns and goals are completely
consistent with the actual situation. 
5. Timebound 
MILO has more than 20 years of presence in the market and continuously launches new
quality products, focuses on increasing sales points, actively implements meaningful
promotional programs for consumers. To continue to maintain the performance of a
Market Leader, the milestone for Milo Nestlé to achieve its goal in the coming years
after the complicated Covid-19 pandemic.

V. Marketing Strategy
1. Market Segmentation
 Segmentation by age
 From 0-6 years old:
 For children under 1 year of age, usually they will use their mother's milk, or
some canned breast milk because children at this age need to not only provide a
certain amount of nutrition, but also ensure The types of milk used should be
suitable for the child's digestive system

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  For children 1-5 years old: This is the time when children learn to eat but also
need a daily amount of milk to provide anti-infective substances because the
digestive system at this age is not really good, so it is necessary to provide
nutrients, anti-infective to protect the body from diseases such as allergies,
intestinal infections.
 From 6-14 years old:
Milk is indispensable food at this age. This is the most important developmental
age for children, children at this age have the most development needs in terms of
height and intelligence, besides this is the age when children start school and have
many activities have more fun, so besides providing substances to develop height
and intelligence, it must provide enough energy for children to be able to develop
in the most comprehensive way. Therefore, children at this age should use milk
with many components of calcium, iron, vitamin C, folate, etc.
 Greater than 14 years old:
This is the time when children should stop using regular dairy products and
instead provide nutrients by eating other foods.
 Income:
Targeting people with low income and above, so they can also buy Nestlé products like
Milo. The product saves the pocket money of people with limited income. Compared to
the prices of other brands, Nestlé products are relatively affordable for all classes due to
their reasonable prices.
 Behavior:
Milo is a famous brand for delicious and nutritious beverage products that are loved by
all families from generation to generation with its signature chocolate flavor. It can be
served cold or hot with milk chocolate containing healthy substances for the body and
that is favored by all consumers in Vietnam and like this product.
2. Choose the target markets
Through different criteria as above, we can clearly see that the target market of Milo
milk product of Nestle Vietnam companies wants to target which is parents with
children’s aged from 6 to 14 years old.
As mentioned at the beginning of the article, society is increasingly developing and
people's living standards are gradually increasing, providing milk and nutrients for
children are an indispensable thing for parents. For parents, children are always put first
and milk products are becoming increasingly diverse in terms of products and prices. In
fact, there are many parents who can provide enough milk for their children while the
family's income is only low or moderate. Therefore, Milo targets customers in all areas

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 (urban, rural). Besides, children aged 6-14 make up about 16.7% of the country's
population. Therefore, this age is the potential market of Milo milk products.
3. Product positioning
- The growing babies milk market in Vietnam is a promising market with steady growth
year after year, which has led to milk brands offering a wide range of products with
new dairy products to maximize the potential of this market.
- Milo milk products are facing fierce competition from other brands, with products in
the same dairy industry and in the same segment that Nestle's products are targeting,
such as milk for children at a young age. The growing ages of "Vinamilk fresh milk" of
the popular company Vinamilk, or "Dutch girl" milk one of the first foreign dairy
products to be present in Vietnam of FrieslandCampina, the companies mentioned
above received a lot of welcome from customers and are the 2 brands with the largest
milk market share in Vietnam. The products are all competitively priced and at the
same time target a certain group of customers.
- In addition, Nestle products also face indirect competition from products in the same
dairy industry but in different segments such as yogurt, fruit juice, yogurt. These can be
mentioned as Vfresh juice of Vinamilk company or TH true Yogurt of TH truemilk
company… All of these have led to consumers facing many choices in choosing to
consume products for their children, so brands must have clear positioning strategy,
suitable for customers and create an advantage over direct competitors.
4. Some marketing campaigns in Vietnam
- Milo aims at consumer psychology in Vietnam and especially the psychology of
parents here. Then, Milo can modify and create a variety of nutritional supplements for
the body. By capturing customer psychology, Milo has succeeded in making a good
impression on Vietnamese consumers.
- In addition, Milo has been very diverse when combining different types of advertising
to achieve the best effect in making users remember the brand. Not is only using
billboards for outdoor space, Milo also uses low-level advertising (Street furniture) or
mobile advertising on vehicles to ensure that its brand is present everywhere. With this
strategy, it helped capture the courtiers and raise the brand value for Milo.
- Producing a variety of Milo products with many styles and especially Milo's goal in
Vietnam is to create a dynamic Vietnamese generation, providing the best and safest
nutrition, ensuring comprehensive development for children to be ready to reach out
every day. This also is the aspiration of all consumers in Vietnam to aim for. That's
why Milo has achieved almost the maximum score to stand firmly in the Vietnamese
market.

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VI. Marketing Mix
1. Product
 Products of the brand Milo
 There are four products that belongs to the brand Milo:
- Drinks: Milo can, Milo for breakfast, Milo low sugar box, Milo instant drink box, Milo
pure powder in jars and sachets.
- Cereals: Milo cereal box, Milo cereal bar,
- Ice cream: Milo ice cream cone, Milo ice cream box, Milo ice cream popsicle
- Chocolate: Milk chocolate bar, Milo candies 
Thereby, we can see that Milo has tried to diversify its products to meet customers'
demands. For example, Milo cans with added protein and calcium content to provide
sustainable energy for babies or Milo breakfast made from milk and bowls of cereal to
help supplement the necessary nutrients. Because the ingredients are mainly cocoa and
the products are all sweets, they can be used directly or easily combined with other
foods. Other ingredients create a new and attractive dish as Milo shaved ice, Milo milk
tea, etc. With a product line of drinks, also known as liquid milk for growing children,
the brand name has focused on developing three main products including canned Milo
milk, and Milo powder.
 Product brand
- Brand: Nestlé
- Nestlé logo: Today, the bird's nest logo continues to be used on Nestlé products
globally and has changed slightly over time. As for Milo milk products, the company
name is changed to read and is in a gold frame with the word Milo, the entire Milo milk
product line is designed with the same branding in design and color. Although the
design is simple, it still highlights the Milo brand along with the company name on a
blue background.
 Product characteristics
Features among the many types of milk on the market, when it comes to chocolate-
flavored milk, supplemented with nutrients, Milo will immediately appear in everyone's
mind. From the very beginning, Milo has always considered the addition of nutrients
from natural protein-rich ingredients to ensure the health of users as a guideline for the
brand, where products can be easily seen. Milo's has always been known as a quality
and safe product. The theme can create a difference in the product, helping to compete
with other brands. Milo milk has always been famous for its natural ingredients and
unique chocolate flavor. Made with PROTOMALT® 32% (extract from malted barley,
tapioca starch), sugar, skimmed milk powder, cocoa powder, vegetable oil, whey
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 powder, minerals (dicalcium phosphate, disodium phosphate, iron pyrophosphate),
butter oil (from milk), glucose syrup, vitamins (vitamin C, niacin, vitamin Bo, B2, D,
BI12),... Milo is always committed to quality products rich in nutrients and energy. It is
also a distinctive feature and an outstanding advantage of Milo.
 Product packaging
- The image of Milo is featured with green as the core color, stands out among other milk
brands when put together. On the package, there are pictures of children playing
different sports such as basketball, soccer, etc. It feels very dynamic. On the other hand,
necessary information such as ingredients and instructions for use are printed fully and
clearly to help buyers grasp information, evaluate products and make purchasing
decisions. Milo's package is designed in a variety of ways from box to package. It helps
buyers to choose the right product. Milo cans are convenient to use right away. In
addition to saving space in the refrigerator, Milo cans are designed to be placed in tight
places such as bags without being distorted, cooling time is also faster. Milo powder
form packed in small paper bags or large plastic boxes, buyers can choose the
appropriate volume according to their frequency of use.
- In addition, Milo also attracted more users when interested in the design of the straws,
with the unique idea of "4-way straws" that made many people unable to stop their
curiosity but had to experience it right away. When the design was just launched, Milo
also introduced to consumers a paper straw for the Milo Breakfast product line in 2020,
contributing to reducing 6.7 tons of plastic waste, which has helped Milo receive a lot
of support and enthusiasm response from many consumers.
2. Price
 Factors affecting the price
- Production cost: Nestlé in Vietnam has been promoting and expanding the production
line of Milo worth 37 million USD instead of importing it as before. By 2005, Milo
water products were manufactured in Vietnam. Therefore, the profit of the enterprise
will also increase due to the saving in import costs
- Cost of input materials: Nestlé continuously expands its production scale in Vietnam by
building a series of factories to manufacture its product portfolio. It gives Nestlé Milo
the advantage of scale, exploitation, experience, and cost reduction. In Vietnam, the cost
of resources such as cheap land rental, low-paid labor sources. In addition, the
preferential tax policies in Vietnam are also a concern for Nestlé to decide to invest to
bring down product costs significantly. Currently, up to 90% of products that consumers
use in Vietnam are produced on-site by Nestle factories.
- Competitor's price: Nestlé's business is in an industry where consumers have a high
bargaining position. From here, the pressure on Nestlé to reduce costs in industries that
17
 supply products with such popular demand as the above products is immense. Typically,
the Milo product in Vietnam, a 180ml box priced at 11,000 VND, has been replaced
with a 180ml product priced at 7,000 VND. Compared with Vinamilk 180ml
pasteurized fresh milk: 39,500 VND/4 boxes, the difference is about 2,000 VND
 Pricing Strategies
The Milo milk product line is aimed primarily at parents with children aged 6-14, with
low to high-income sources. With identification right from the start, the product is
aimed at parents with children aged 6-14 across the country. Therefore, the price of Milo
dairy products is relatively consistent with the average monthly income of households in
Vietnam (with GDP per capita of 2,200 USD/year according to the Bureau of Statistics
in 2016). The difference is not significant compared to the price of other dairy products.
For example, Milo liquid milk 80ml paper box: 27,500 VND 4 boxes, Milo Balance
Breakfast 180ml: 25,000 VND/3 boxes, Milo low sugar [80ml: 27,500 VND/4 boxes. In
addition, the brand also informs that the actual price of the product may vary slightly
depending on the business policy of each store or supermarket.
3. Places
 Distribution strategy
Because Milo has been present in Vietnam for a long time and Milo products belong to
the category of common consumer goods, Nestlé has applied a mass distribution
strategy for Milo's products. It helps the product to gain popularity widely distributed all
over the country, from big cities to rural areas, small provinces. Moreover, it is possible
to easily find and buy Milo in supermarkets, convenience stores, grocery stores, etc. It
can be seen that the company always tries to bring products to consumers in the most
convenient way. In addition, the wide distribution will help increase the awareness of
the product to the buyers.
 Distribution channels
Nestle is a company specializing in the FMCG industry. It is the company's key industry
group related to food and daily necessities. The two types of distribution channels used
by Nestlé are wholesalers and retailers. Both of them have many advantages of high
order frequency, short shipping time, and a large customer base. These channels also
have their functions as transactional functions (contact, promotion, negotiation, risk-
taking), logistics functions (actual delivery, storage, sorting), and support functions
(research, funding). In addition to cooperating with agents and supermarkets nationwide,
Milo also cooperates with e-commerce platforms such as Tiki, Shopee, and Lazada.
Thanks to the strong development of information technology, Vietnamese consumers'
shopping habits, and behaviors have also changed significantly. With the reduction of
purchase frequency and an increase in the volume of purchases per purchase,
18
 Vietnamese people also tend to order online in batches and boxes rather than buying
retail as in the past. Just go to Milo's genuine store on these apps, there are many
products for buyers to choose from. In addition, they can also order in bulk that helps
consumers save on shipping costs and shopping time.
4. Promotions
 Advertising
Nestlé has tried to implement an advertising strategy by strongly hitting the outstanding
features and benefits of the product by making customers believe that Milo's products
can supplement nutrition and help children be more active. Realizing that today, most
parents tend to want their children to focus on learning and achieve good academic
results, but forget that sport plays an important role in the all-around development of
children. Through sports, children not only practice physical fitness but also learn many
valuable lessons, practice character, and positive attitude, care about people. Therefore,
the marketing campaign for the program "Dynamic Vietnam" has been promoted by the
brand through mass media such as television, website, press,... by running. Their
advertising samples about campaigns, products on television, and social networks are
mainly. It is impossible not to mention the TVCs in the "Dynamic Vietnam" campaign,
such as TVC "True Champion", TVC "Thank you Mom",... thereby encouraging
mothers actively to encourage children to participate in more physical activities. Milo
has also continued to reach a wider audience through the community voices of some
KOLs. After its launch, Milo's ad campaign reached 19 million views. It has been a
success. Nestlé also sends their advertising to consumers in many new and innovative
ways, such as with interactive video technology in department stores, supermarkets, and
through screens mats or posters, standees hung in grocery stores. Specifically, Milo has
cooperated with Asia Shopper Marketing to install more than 100 3D projectors at
CO.OPmart and Lotte Mart supermarket systems. Therefore, it can provide information
about promotions, as well as information about products being for sale on the counter.
In addition, the company has also invested in outdoor advertising by placing large
billboards on crowded streets. Banners and billboards can be designed a little different
in size as well as images but still do not lose the meaning of the message as well as
Milo's substance.
 Promotional campaign
Milo has run promotions in many different forms. Customers will receive learning kits
and toys when purchasing products. In addition, in convenience stores or supermarkets,
if the buyers buy Milo brand products at the specified price, they will receive additional
vouchers or receive a discount.
 Public Relations
19
 Nestlé is always mentioned as a brand that always pays attention to children's health.
Nestlé's campaigns always aim to help children develop as fully as possible. In
particular, Milo and youth sports units create sports events, which are considered a
useful and professional playground with careful investment from the brand. Milo
products are on display and free drinks are available to all who participate. It is an
effective way of re-affirming the brand with products associated with sports and fitness
activities, creating a favorable look from customers. Not only that, to enhance the role of
sports, Milo organized the walking program "Milo - Green energy journey", the event
attracted about 10,000 people mainly students, teachers, and parents from primary
schools in the Hanoi capital. After two years of being held in Ho Chi Minh City, the
program has attracted more than 20,000 participants. In addition, the event also had the
enthusiastic participation of famous athletes, artists, and experts in education and child
nutrition such as MC Thanh Bach, Cong Vinh football player, The voice kid Quang
Anh... The program used all funds donated by the Milo brand and from the sale of
souvenirs at the event to equip schools with sports equipment, specifically giving away
100 more exercise equipment standard sports for 20 primary schools in the city, creating
conditions for students to practice sports, develop physically as well as have more fun
when going to school.

VII. Projected Marketing Budget

Milo's revenue is expected to reach 100 billion, so 10% of profit is easy to spend on
marketing activities:

 Setting budget by objective and task method

 Marketing budget of $935.000 million VND will be split as a table

PROJECTE
CAMPAIGN D PROJECTED COMMENT
QTY
TYPE COST PER SUBTOTAL S
UNIT
National Marketing SUBTOTAL $ 120,000.00

Banner Ads 4 $ 5,000.00 $ 20,000.00

Sponsorships 5 $ 20,000.00 $ 100,000.00
$ -
Local Marketing SUBTOTAL $ 37,000.00
Newspaper 10 $ 1,000.00 $ 10,000.00
In-Store Marketing 5 $ 5,000.00 $ 25,000.00
POP 2 $ 1,000.00 $ 2,000.00
$ -
Public Relations SUBTOTAL $ 76,500.00
Public Events 20 $ 1,500.00 $ 30,000.00

20
 Sponsorships 5 $ 2,000.00 $ 10,000.00
Press Releases 8 $ 2,000.00 $ 16,000.00
Webinars 5 $ 2,500.00 $ 12,500.00
Conferences 3 $ 1,000.00 $ 3,000.00
Client Events 5 $ 1,000.00 $ 5,000.00
$ -
Content Marketing SUBTOTAL $ 97,500.00
Sponsored Content 10 $ 100.00 $ 1,000.00
Landing Page 12 $ 8,000.00 $ 96,000.00
White Papers /
5 $ 100.00 $ 500.00
ebooks
$ -

Social Media SUBTOTAL $ 95,000.00

Twitter 20 $ 1,500.00 $ 30,000.00

Facebook 20 $ 1,500.00 $ 30,000.00
Pinterest 10 $ 1,200.00 $ 12,000.00
Instagram 10 $ 1,500.00 $ 15,000.00
Google+ 4 $ 1,000.00 $ 4,000.00
Linkedin 4 $ 1,000.00 $ 4,000.00
Online SUBTOTAL $ 20,000.00
Blog 10 $ 800.00 $ 8,000.00
Website 5 $ 800.00 $ 4,000.00
Mobile App 10 $ 200.00 $ 2,000.00
Mobile Alerts 10 $ 100.00 $ 1,000.00
Email Newsletter 5 $ 1,000.00 $ 5,000.00
$ -

Advertising SUBTOTAL $ 228,900.00

Online 20 $ 500.00 $ 10,000.00

Print 5 $ 700.00 $ 3,500.00
Outdoor 10 $ 1,500.00 $ 15,000.00
Radio 2 $ 200.00 $ 400.00
Television 10 $ 20,000.00 $ 200,000.00
$ -
$ -
Web SUBTOTAL $ 51,500.00
Development 1 $ 44,000.00 $ 44,000.00
Pay-Per-Click
3 $ 2,000.00 $ 6,000.00
Marketing
SEO 1 $ 1,500.00 $ 1,500.00
$ -
$ -
Market Research SUBTOTAL $ 7,300.00
Surveys 6 $ 800.00 $ 4,800.00
Impact Studies 5 $ 500.00 $ 2,500.00
$ -
Sales Campaigns SUBTOTAL $ 80,000.00

21
 Sponsorship "AFF
Cup Football 1 $ 20,000.00 $ 20,000.00
Tournament"
Accompanying the
5 $ 8,000.00 $ 40,000.00
School
Tet Discount
1 $ 20,000.00 $ 20,000.00
Promotion

Other SUBTOTAL $ 121,300.00

Premiums 3 $ 10,000.00 $ 30,000.00

Corporate Branding 2 $ 30,000.00 $ 60,000.00
Business Cards 15 $ 20.00 $ 300.00
Signage 10 $ 100.00 $ 1,000.00
Service client 3 $ 10,000.00 $ 30,000.00

1. National Marketing
- It accounts for 13% and it including: Banners ads and sponsorship cost.
- Places to place billboards will be at large supermarkets or train stations, where many
potential customers can be attracted.
- Sponsor supermarket chains or retail stores so that our products can be widely sold.
2. Local Marketing
- It account for 4%
- It includes developing advertising through newspapers and at the point of sale.
3. Public Relations
- Account for 8%.
- Accelerate the release of new products, organize outdoor events and hold product
launch press conferences.
- Organized the launch of a new product "4-way straw", attracting targeted customers at
the age of 8-16.
4. Content Marketing
- Account for 10%.
- Pay for a team of copywriters, content writers to publish in magazines, nutrition
newspapers or social platforms.
5. Social Media
- Account for 10%
- The cost of running advertising and marketing for major social networking platforms
Milo is targeting such as Facebook, Instagram, etc.
6. Online
- Account for 2%
- The cost of paying for product recommendation apps on their platform.
- In addition, there is the cost for the tool to automatically forward for old customers,
notify about products and promotions on Email or Apps.
22
 7. Advertising
- Account for 24%
- Advertising is mainly on TV channels, investing big money in times when many people
use TV such as the break between football matches of the Vietnamese team or Miss
World.
- In addition, some people use the radio while driving or on public transport, so we
should spend some money on both printing leaflets and producing radio advertising
content.
8. Web
- Account for 6%
- Pay per click and web development costs help users easily access, buy, sell and find out
product information and increase suggestions on social networks for users to pay more
attention to products
9. Market Research
- Account for 1%
- Learn about the market, supply and demand, and user feedback for the product.
10. Sales Campaigns
- Account for 9%
- There are sales campaigns based on big events like AFF Cup or there are discount
programs with products or using new products to stimulate product demand.
11. Other
- Account for 13%
- Costs of customer care, cooperation and branding also need to be boosted.
- Milo can partner with sports event organizers to expand brand awareness. Can be
combined with sports and educational environment to target the age group of 8-16
people who need to drink Milo to supplement nutrients and increase height.

VIII. Action Program

February - July -
Time January May - June October - December
April September
Shows the
association of its
Attract
To persuade products with Convince consumers
Reach out to readers who
and motivate fitness activities, to buy Milo's
parents are children
Objectiv consumers to sports activities products when
through this and
e consume and and helps the parents and children
popular customers
use products Milo brand gain find it interesting and
program who love
and services a lot of attractive to watch.
sports
sympathy from
customers

23
 Sponsor or
Collaborating
organize sports
Free Milo to sponsor
Sponsor the events across the
teddy bear and upload
Key program country, Advertising through
when buying famous
activities "Super tournaments TVC
a carton of athletes'
Intelligence" between
Milo milk images with
elementary and
Milo's logo
middle schools

Give away
Give away books posters
Other Tiktok Discount, Giving Tet gifts to
printed with printed with
activities Challenge Banner ads poor students
Milo logo athletes with
Milo logo
Social media,
Social Social
PR,
media, PR, media, PR, Social media, Social media, PR,
Marcom Reviewer,
Reviewer, Reviewer, PR, Reviewer, Reviewer, Banner
tools Banner
Banner Banner Banner display display, KOLs
display,
display display
KOLs
Budget $165,000 $190,000 $225,000 $135,000 $220,000
1,000,000 700,000 900,000
1,000,000 reach
reach and reach and reach and 10,000,000 reach and
KPI and 8,000,000
6,000,000 4,000,000 5,000,000 8,000,000 impression
impression
impression impression impression

24
IX. References
1. Components of an Effective Marketing Plan. [Online] CMG Consulting. Available at:
https://www.cmgconsulting.com/post/effective-marketing-plan [Accessed on August 12,
2020]
2. Công Ty TNHH Nestlé Việt Nam. [Online] VNR Top 500 Company. Available at:
https://vnr500.com.vn/Thong-tin-doanh-nghiep/CONG-TY-TNHH-NESTLE-VIETNAM-
Chart--271-2015.html [Accessed on May 24, 2020]
3. Nestlé Việt Nam được vinh danh doanh nghiệp bền vững nhất Việt Nam. [Online] Báo điện
tử của Bộ Tài nguyên và Môi trường. Available at: https://baotainguyenmoitruong.vn/nestle-
viet-nam-duoc-vinh-danh-doanh-nghiep-ben-vung-nhat-viet-nam-334719.html [Accessed on
December 11, 2021]
4. Nestlé Việt Nam đầu tư 132 triệu USD để tăng gấp đôi công suất chế biến. [online] Báo
Điện Tử Của Chính Phủ Nước Cộng Hòa Xã Hội Chủ Nghĩa Việt Nam. Available at:
http://baochinhphu.vn/Doanh-nghiep/Nestle-Viet-Nam-dau-tu-132-trieu-USD-de-tang-gap-
doi-cong-suat-che-bien/448542.vgp [Accessed on October 4, 2021]
5. Nestlé/ Về chúng tôi. [online] Nestlé. Available at: https://www.nestle.com.vn/vi/aboutus
[Accessed on September 27, 2020]
6. Nestlé/ Mission & Vision. [online] Nestlé. Available at:
https://www.nestle-esar.com/aboutus/missionvision [Accessed on May 9, 2021]
7. Nguyen Kim Khang, 2020.Chien luoc marketing cua Milo-tuoi tho cua bao tre em Viet Nam
[online] .Web page : Truong doanh nhan HBR . Available at :
https://hbr.edu.vn/marketing/chien-luoc-marketing-cua-milo-tuoi-tho-cua-bao-tre-em-viet-
nam.html [Accessed at : 2nd September 2020]
8. Luong Hanh, 2021. Chien luoc Marketing cua Milo – Con đuong tro thanh “chi dai” nganh
FMCG [online]. Web page : Marketingai.vn .Available at : https://marketingai.vn/chien-
luoc-marketing-cua-milo-con-duong-tro-thanh-chi-dai-cua-nganh-fmcg/ .[Accessed at : 30th
December 2021]
9. Quoc Dung, Phan tich chien luoc kinh doanh cua Nestlé [online]. Web page:
dungnq2912.wordpress.com. Available at :
https://www.google.com.vn/amp/s/dungnq2912.wordpress.com/2020/09/10/phantich-chien-
luoc-kinh-doanh-cua-nestle/amp/.[Accessed at : 30th December 2021]
10. https://www.google.com.vn/amp/s/nongnghiep.vn/tron-25-tuoi-milo-dat-moc-105-ty-hop-
sua-tai-viet-nam-d237565.amp. [Accessed at : 30th December 2021]
11. https://blog.tomorrowmarketers.org/milo-ovaltine-ngay-ay-gio-ra-sao/ . [Accessed at : 30th
December 2021]
12. Nhà vô địch của Milo là biết vượt lên chính mình. Available at : https://zingnews.vn/nha-vo-
dich-cua-milo-la-biet-vuot-len-chinh-minh-post929487.html. [Accessed at : 30th December
2021]
13. Milo sales promotion project, Available at :
https://www.behance.net/gallery/33228653/MILO-sales-promotion-project. [Accessed at :
16th December 2021]

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