5033 - Assignment 2

ASSIGNMENT 2 FRONT SHEET
Qualification BTEC Level 4 HND Diploma in Business
Unit number and title Unit 2. Marketing Processes and Planning
Submission date Date Received 1st submission
Re-submission Date Date Received 2nd submission
Student names & codes Final scores Signatures
1.Nguyễn Thị Nam Anh – BH01449
2. Lâm Thị Thu Hà – BH01499

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Class MA07101 Assessor name Ngo The Nam
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Contents
PART A:........................................................................................................................................................................ 11
I.INTRODUCTION......................................................................................................................................................... 11
II.COMPARE THE 7P MARKETING STRATEGY WITH COMPETITORS .......................................................................... 11
III. EVALUATE BUSINESS GOALS ................................................................................................................................. 28
1. Milo ..................................................................................................................................................................... 28
2.Ovaltine ................................................................................................................................................................ 28
PART B ......................................................................................................................................................................... 29
I. EXECUTIVE SUMMARY............................................................................................................................................. 29
II. SITUATION ANALYSIS ............................................................................................................................................. 30
1. Market description ............................................................................................................................................. 30
2. Competion and difference.................................................................................................................................. 30
3 Macroenvironment of Nestle Milo ..................................................................................................................... 31
3.1 Political and legal factors............................................................................................................................... 31
3.2. Economic ...................................................................................................................................................... 32
3.3. Technology factor ......................................................................................................................................... 32
3.4 Demographic environment ........................................................................................................................... 33
3.5 Environmental ............................................................................................................................................... 33
3.6 Social.............................................................................................................................................................. 34
III. Marketing strategy ................................................................................................................................................ 34
1. Segment .............................................................................................................................................................. 34
1.1. Demographic ................................................................................................................................................ 34
1.2. Psychology .................................................................................................................................................... 35
1.3. Lifestyle......................................................................................................................................................... 35
2. Positioning strategy ............................................................................................................................................ 35
3. Differentiation .................................................................................................................................................... 35
4. Marketing mix 7ps .............................................................................................................................................. 38
4.1. Product ........................................................................................................................................................ 38
4.2. Price .............................................................................................................................................................. 41
4.3. Place ............................................................................................................................................................. 42
4.4 Promotion...................................................................................................................................................... 43
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4.5. People ........................................................................................................................................................... 45
4.6. Process.......................................................................................................................................................... 49
4.7. Physical Evidence.......................................................................................................................................... 50
III. ACTION PROGRAM ........................................................................................................................................ 51
PART C ......................................................................................................................................................................... 52
I. A MEDIA PLAN .................................................................................................................................................... 52
1. Media Goals and Objectives ............................................................................................................................. 53
2. Target Audience .............................................................................................................................................. 54
II. Quote source ......................................................................................................................................................... 55
Bibliography................................................................................................................................................................. 55
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PART A:
I.INTRODUCTION
Nestlé is the world's largest food and beverage corporation. They have over 2000 different brands from iconic global brands to local brands.
Milo products are one of the products that are loved by people around the world, especially children. Currently Nestle is present in 191 countries
worldwide including Vietnam. Nestle is a large corporation with a long history of business operations, founded in 1866 by Mr. Henri Nestlé. In
the 1960s, he invented a food for infants who could not be breastfed, in order to reduce the rate of infant mortality due to malnutrition. After
successfully saving the baby's life, this first product was widely sold and popular in Europe under the name Farine Lactée Henri Nestlé. These are
some important milestones in the formation and development of Nestlé in the food sector. Nestlé operates in the food and beverage industry,
with headquarters located in Vevey, Switzerland. Nestlé's current products range from mineral water, baby food, coffee and dairy products.
Milo is a supplement drink brand from the famous FMCG company Nestle. It was invented by an Australian man - Thomas Mayne - in 1934. This
means that even though it was born very early, up to this point, Milo is still very popular and used by many users. love it, even remember it
deeply in your mind. Milo is currently present in many countries from Asia to America, Europe, even Africa. The name Milo was inspired by the
name of a Greek athlete. The composition of Milo milk has a harmonious combination of milk with malt and chocolate, creating a nutritious,
sweet, delicious and greasy drink that makes people ecstatic (NESTLEMILO, 2021)
II.COMPARE THE 7P MARKETING STRATEGY WITH COMPETITORS
Company name Nestle ( Milo ) Wander AG (Ovaltine )

1. Product
1.1. Products Some of Milo's main product categories include: Some forms of Ovaltine products:
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• Canned milk: New Milo teen provides protein and calcium • Ovaltine in traditional box form with Power 10 formula
to help develop height and strengthen bones. helps supplement many essential vitamins and minerals
• Instant milk bags: Convenient and suitable for consumers' for the body.
diverse choices when they want to change their • Ovaltine DHA+ contains nutrients including choline and
preferences. 7 vitamins and minerals necessary for the comprehensive
• Milk powder in plastic cans and rectangular paper boxes: development of children.
Pure milo powder, helping consumers prepare and mix • Ovaltine can is recommended for adults who need a lot
according to their taste, suitable for both adults and of energy to exercise, exercise, play sports, etc.
children. (Anh, 2022)
(NESTLEMILO, 2023)
Through this, we can see that Milo has tried to diversify its
products to meet customer needs
1.2.Product brand Brand: Nestlé Brand: Wander AG

Nestlé's first commercial registration symbol was based on The first Ovaltine was created in 1904 in Bern,
the family coat of arms of Henri Nestlé, with the image of a Switzerland, where it is still known as Ovomaltine. In
bird in a nest. This takes its cue from the family's name, 1909, when exported to England, due to a typographical
which means "bird's nest" in German. Henri Nestlé error, the brand name was changed to Ovaltine, a name
transformed his family crest by adding three baby birds that has since been used in English communities. The
being fed by their mothers, creating a visual connection Ovaltine letter is designed with a blue color combined
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between his name and his company's infant cereal with a red background combined with a vibrant image of
products. He began using this image as a commercial barley, showing dynamism and development,
symbol in 1868. Today, the same bird's nest logo continues symbolizing intellectual development. (Anh, 2022)
to be used on Nestlé products globally, and has been
changed over time. As for Milo milk products, the
company's name was changed to red and placed in the
same yellow frame as the word Milo. The entire Milo milk
product line has 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 green
background. (NESTLE, 2024)
1.3.Product Among the countless types of milk on the market, when Ovaltine is a popular instant drink worldwide, especially
characteristics mentioning chocolate-flavored milk with added nutrients, in providing nutrition to children. Provides a lot of
Milo will immediately appear in everyone's mind. From the vitamins and minerals to help children grow healthier
beginning, Milo has always considered supplementing and smarter. Such as vitamins A, B, C, D, E, fiber, protein,
nutrients from natural protein-rich ingredients to ensure protein, iodine. Ovaltine milk contains iron, zinc,
users' health as a guideline for the brand, and products can phosphorus, and taurine acid to help the brain function
be easily seen. Milo's is always known for being a quality better. In particular, Ovaltine milk contains calcium to
and safe product. To be able to create a difference in help children develop healthy bones and teeth. Ovaltine
products, helping to compete with other brands. Milo milk milk can be mixed with other types of milk. This is to
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has always been famous for its natural ingredients and stimulate the taste buds, increase the flavor of milk and
unique, unmistakable chocolate flavor. Milo is always not make children bored. If you know how to combine
committed to the quality of products rich in nutrition and them properly, it will bring surprising results. In short,
energy. This is also the characteristic and outstanding Ovaltine is not only a delicious drink but also an
advantage of Milo. important source of nutrition for both children and
adults. (Ngọc, 2021)
1.4.Product Milo's design features green as the main color, standing out Ovaltine is designed with the main color red, the patterns
packaging among other milk brands when combined together. The printed on the packaging are very meticulous and sharp.
packaging also has images of children playing different Because the main ingredient is wheat, the print is very
sports such as basketball, soccer, ...creates a very dynamic large and attractive, true to Ovaltine's designs, always
feeling. On the other hand, necessary information such as wearing a unique feature that when consumers look at it,
ingredients, instructions for use, etc. are printed fully and they can immediately remember it. The packaging often
clearly to help buyers grasp the information and easily features an image of a beautifully decorated and
evaluate the product and make purchasing decisions. . attractive Ovaltine milk glass or milk cup. This image can
Milo's packaging is designed in a variety of ways, from box be arranged to create the impression of the product's
to package, helping buyers choose the right product. juiciness and appeal. Detailed information about
Canned Milo is convenient to use right away. In addition, ingredients, nutrition and instructions for use are
putting it in the refrigerator also saves space. Canned Milo displayed clearly and easily to read, ensuring that
is designed to not be distorted when placed in tight places customers have full information before deciding to buy
like a briefcase, and the chilling time is also faster. the product. In this way, the packaging of Ovaltine milk is
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Powdered Milo Packed in small paper bags or large jars, not only an attractive contract, but also an effective way
buyers can choose the appropriate volume for their to introduce the product to consumers.
frequency of use. The brand is designed without too much
fuss with elegant, eye-catching colors to create a good
impression on customers. The product name and uses are
shown in a clear summary right in front of the product to
help customers understand product information easily,
quickly and conveniently so that customers can easily give
information. decide to buy the product (NESTLEMILO, 2021)
1.5.Product quality In many countries around the world, both developed and Ovaltine focuses on putting quality first and is used as
developing countries, the demand for consumption and use "material" for its Marketing campaigns. Ovaltine
of organic food has increased by an average of 20%, in some products contain some essential vitamins, minerals and
countries by up to 50% each year. Understanding this need, trace elements for children. It includes folic acid, calcium,
dairy companies around the world have also produced iron & zinc which are essential nutrients for pregnant
more and more types of milk with completely natural women. Ovaltine defines itself as a nutritional product
ingredients. Since its establishment, Nestle has always derived from soft drinks containing 4 vitamins and 6
considered developing the brand based on raw materials. minerals for a healthy lifestyle for children and the whole
Natural ingredients (Milo milk is made from barley) and family. (Hạnh, 2023)
ensure the health of consumers. Therefore, Nestle products
are always appreciated by consumers for their safety and
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quality, Milo milk products are no exception, which has
created a difference and a place in the hearts of consumers.
(NESTLE, 2022)
2.Price The Milo milk product line is aimed at parents with children It can be seen that Milo is the company's biggest
from 6-14 years old, with input sources ranging from low to competitor in the same FMCG industry. The difference in
high. With the determination from the beginning, the Ovaltin's pricing strategy is that its products are suitable
product is aimed at parents with children from 6-14 years for the target customer group of children aged 1 year and
old across the country. Therefore, the price of the Milo milk older. Ovaltine has exploited a customer group of
product line is relatively suitable for the average monthly children between the ages of 1-3 years old that Milo does
income of children. households in Vietnam (with an average not target. This is considered a strategy to fully exploit
GDP per capita of 2,200 USD/year according to the the target customer segment that Ovaltine aims to gain
Department of Statistics in 2016). The difference is not market share from "big guy" Milo. (VU, 2021)
significant compared to the prices of other dairy product Ovaltine milk comes in many forms such as powdered
lines. Milo liquid milk paper box 180ml: 27,500 VND/lot of milk, large cans of milk, and small cans of milk. Depending
4 boxes, Milo Balanced Breakfast 180ml: 25,000 VND/lot of on the type of milk you buy, there will be different prices.
3 boxes, Milo low sugar 180ml: 27,500 VND/lot of 4 boxes. According to many consumer reviews, Ovaltine milk has
In addition, the brand also announced that the actual price a fairly reasonable price, competitive with many other
of the product may vary slightly depending on the business suppliers. Currently on the market, Ovaltine milk
policy of each store or supermarket. (NESTLEMILO, 2021) products for children have the following prices:
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• Ovaltine milk box 110ml chocolate flavor costs 17,500
VND/1 block (4 boxes).
VND/1 block (4 boxes).
VND/1 box (48 boxes).
VND/1 box (48 boxes). (Ngọc, 2021)
3. Place Because Milo has been present in Vietnam for a long time Ovaltine's marketing strategy, in addition to cocoa milk
and Milo products belong to the category of common products combined with barley, in each market, the
consumer goods, Nestlé has applied a mass distribution company distributes and produces different types of
strategy for Milo products, helping the product become products based on customer trends and preferences.
popular. Widely distributed everywhere nationwide, from Ovaltine's distribution strategy includes a variety of
big cities to rural areas and provinces, Milo can be easily products distributed in many different countries with
found in supermarkets, convenience stores, grocery each product specific to each market. (VU, 2021)
stores,... • Indirect channel:
In addition to agent distribution, Ovaltine is still pursuing
Supplier: Nestle Vietnam Company => Retailer, Wholesaler modern distribution channels that are increasingly
=> Customer (NESTLE, 2024) popular with consumers such as supermarkets, grocery
The company always tries to bring products to consumers retailers or convenience stores nationwide. Overall,
in the most convenient way. In addition, widespread Ovaltine's product distribution strategy does not have
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distribution will help increase product recognition among many outstanding points. Accordingly, the product will
buyers. reach consumers through retailers. Ovaltine's current
Nestle is a company specializing in the FMCG industry, this partners include supermarket systems Co.op Mart, Bic C,
is the company's key product group related to food and Lotte,... and convenience store systems Circle K, Bsmart...
daily necessities. The two types of distribution channels •Direct channel:
used by Nestle are wholesalers and retailers. Both channels In addition to cooperating with agents and supermarkets
have many advantages in terms of high order frequency, nationwide, Ovaltine also cooperates with e-commerce
short shipping time and large customer base. These platforms such as Shopee, Tiki, Lazada to optimize
channels also have their own functions such as customer needs.
transactional functions (contact, promotion, negotiation,
risk taking), logistics functions (physical distribution,
storage, classification) and support functions. (research,
sponsorship).
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 decrease in
purchasing frequency and increase in purchase volume per
purchase, Vietnamese people also tend to order online in
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batches or cartons rather than buying retail like in the past.
(KIM THẢO, 2023)
4.Promotion
4.1. Advertising Through sports, children not only practice physical fitness, The advertising campaign "You don't need to win, you
but also learn many valuable lessons, cultivate positive just need to like it" is considered a strong leverage for
character and attitude, and care for people. Therefore, the Ovaltine in the Vietnamese market. The message of this
marketing campaign for the program "Dynamic Vietnam" campaign is considered a direct challenge to Milo and has
has been promoted by the brand through mass media such created a strong media effect, creating a huge coverage
as television, websites, newspapers,... by running Mainly its in the community. Ovaltine's target customer group is
advertisements for campaigns and products on television mothers with children of elementary school age. Insight
and social networks. Speaking of this, it is impossible not to of the vast majority of this target group wants their
mention the TVCs in the "Dynamic Vietnam" campaign, children to first be good at studying, then to be "good"
such as the TVC "Real Champion", TVC "Thank You Mom",... physically. Ovaltine's Insight are technology-savvy
thereby encouraging mothers Actively let children parents who tend to raise modern children, allowing
participate in more physical activities. Milo has also their children to freely develop themselves and become
continued to reach a wider audience through the themselves, not compete to be champions. (VU, 2021)
community voices of several KOLs. After launch, Milo's After the campaign "You don't need to win, you just need
advertising campaign reached 19 million views. This has to like it", Ovaltine has had a significant amount of people
created success for Milo in the international arena when it interested and known. It can be seen that Ovaltine's
won the prestigious APAC Effie Awards 2018 thanks to this social communication strategy has had great success
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campaign. It is known that Nestlé Milo is the first when the keyword "Ovaltine and Ovaltine's Marketing
Vietnamese F&B brand to receive this award. (GREENWAY, Strategy" is widely discussed. Ovaltine's wisdom in
2018) choosing to promote via Social Media has garnered a
In addition, the company has also invested in outdoor huge amount of discussion from the online community
advertising by placing large billboards on crowded roads. and customers. (VU, 2021)
Banners and billboards can be designed to be a bit unique
in size and image but still do not lose the meaning of the
message and Milo's unique personality. . Nestle also
delivers its advertising to consumers in many new and
innovative ways, such as with interactive video technology
in department stores and supermarkets and through
projection screens or printed posters and stands. hanging in
grocery stores. Specifically, Milo has cooperated with Asia
Shopper Marketing to install more than 100 3D projectors
at the CO.OPmart and Lotte Mart supermarket systems to
provide information about current promotions, as well as
product information. products are being sold on the
counter. (KIM NGOC, 2024)
4.2. Promotions Promotion is one of the indispensable steps when It can be said that compared to competitors in the same
implementing Milo's marketing campaign. Up to now, Milo industry, Ovaltine's promotional programs are also very
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has offered many promotional activities such as buying Milo diverse and not inferior. For large media campaigns,
and getting free swimming goggles, school supplies or Ovaltine also often comes with an attractive promotion
scratch cards, etc. The products created are all products program. When the target customers are children,
suitable for users' needs. use by young children. Milo has cartoon images will always be a smart and effective
run promotions in many different forms. Customers will choice to attract attention to the product. With this
receive learning kits and toys when purchasing the product. promotion, Ovaltine launches children's suitcases
In addition, in convenience stores or supermarkets, when designed with the famous Pirate Island characters,
purchasing Milo brand products at a set price, the buyer will making any child want this suitcase from Ovaltine.
receive additional vouchers, or when purchased with other (dtcworld, 2021)
products, they will receive a discount. (NESTLEMILO, 2023)
4.3.Public relations Nestlé is always mentioned as a brand that always focuses For Ovaltine, event activities are still average and do not
on children's health. Nestlé's campaigns always aim to help have too many highlights. Ovaltine carries out the project
children develop as completely as possible. In particular, "Spread the energy of love" with the initiative of
Milo and youth sports organizations create sports events, installing a series of "Nutrition cabinets - Receiving love".
which is considered a useful and professional playground Accordingly, with the Power10 formula that ensures daily
with careful investment from the brand. There, Milo supplementation of essential nutrients and energy for all
products were displayed and free drinks were given to all ages, the donated glasses of Ovaltine milk will help
who participated. This is an effective way to reaffirm the provide people, volunteers and medical staff with a
brand with products associated with sports activities, source of nutrition. better quality, maintain energy and
health training, creating sympathetic view from customers. improve health, especially in the context of complicated
Not only that, in order to enhance the role of sports, Milo disease developments. The Ovaltine brand provided
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organized a walking program "Milo - Green Energy 240,000 glasses of milk to the recruitment force and
Journey", the event attracted about 10,000 people, mainly 17,000 households at 5 quarantine and blockade hot
students and teachers. teachers and parents from primary spots in Ho Chi Minh City. Previously, within the
schools in the capital Hanoi. After 2 years of organization in framework of the "Spread the Energy of Love" program,
Ho Chi Minh City, the program has attracted more than Ovaltine also donated 3,000 USD to Children's Hospital 1
20,000 participants. In addition, the event also had the to support children in difficult circumstances. (Anh, 2021)
enthusiastic participation of athletes, famous artists and
experts in education and child nutrition such as MC Thanh
Bach, player Cong Vinh, and the face of The Voice.
Vietnamese children Quang Anh... The program used all
funds donated by the Milo brand and from souvenir sales at
the event to equip schools with sports equipment,
specifically giving an additional 100 Standard sports
equipment for 20 elementary schools in the city, creating
conditions for students to practice sports, develop
physically as well as have more fun when going to school..
(NESTLE, 2016)
5. People ~ Parents with children from 6 to 14 years old, want -Ovaltine is intended for children from one year of age
products that can support physical and intellectual and older as recommended by the manufacturer.
development. According to nutrition experts, mothers should give their
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~ People who don't like coffee in the morning, need a drink children Ovaltine between the ages of 3 and 6 years old.
to start the day and can help stay awake instead of coffee Because at this time the baby's digestive system is
~ Sports enthusiasts and students need products that can complete. Babies can fully absorb the nutrients in milk
provide the energy and nutrition needed for study and without bloating or indigestion.
physical activity.
-Consumers with special nutritional needs to provide
~ People who like new, different and attractive things, like
nutritional supplements that cater to those in need such
products with new breakthroughs in flavor instead of old
as the elderly, those exercising, or those recovering from
products that are too traditional and boring.
illness.
+ Children: are the main target group that Nestlé targets
when launching products such as powdered milk, fresh -Consumers who love coffee and chocolate drinks are
milk, cereal, etc. The products will help children grow and looking for fun and delicious drinks.
develop quickly physically as well as wisdom.
+ Adults: people aged 16-40 years old will be suitable for

products such as coffee, soft drinks, candies, snacks, etc.
+ Elderly people: Nestlé has milks for the elderly to support

strong, supple bones to maintain health.
6.Process Nestlé Vietnam has a closed production process, ensuring Ovaltine milk is strictly monitored from raw material
product quality. Nestlé Vietnam products are manufactured selection to production, so it completely meets
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according to international standards, meeting food safety international standards. Research and develop new
requirements. Nestlé takes many steps from farm to products or improve existing products based on
production to give consumers confidence that the products customer feedback and market trends. Ovaltine Vietnam
are of the best quality. launches 2X calcium barley milk drink, containing twice
At this stage, Nestlé will cooperate with farmers to instruct as much calcium as 250 ml of fresh cow's milk to support
how to use the automatic cooling and milking system and height development for children during the golden
apply special quality control measures to bring quality period. Throughout the manufacturing process, Ovaltine
products. Nestlé collects fresh milk from farmers at Special conducts periodic quality checks to ensure that products
Collection Centers every day and tests the milk on-site to meet the highest quality standards. This includes testing
confirm quality (NESTLEMILO, 2021) product samples, checking production processes and
Nestlé's product transportation methods are specially ensuring compliance with food safety regulations.
designed to ensure the products are kept in the best Ovaltine manages warehouses to store manufactured
condition during transportation. Delivery vehicles are products and prepare them for delivery to customers or
always periodically maintained by the company to ensure to retail locations. In addition, Ovaltine's marketing and
hygiene and safety without affecting the products. Before advertising campaigns use traditional and digital media
delivering to retailers or consumers, food is always to create brand awareness and increase sales.
thoroughly checked for quality, packaging, and expiration
date. After delivery, the products will be stored in a
warehouse that has been inspected and guaranteed to
meet food safety standards.
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Nestlé products, especially milk, will go through a number
of processes to ensure quality such as removing all
impurities and then being pasteurized to kill harmful
bacteria. In the Nestlé production factory, employees have
been provided with full protective clothing and are
disinfected. The factory is designed according to
international standards, with a clean, scientifically arranged
equipment system. To ensure quality, Nestlé products have
to go through many costly stages, so the business always
seeks to simplify the production and transportation process
and automate the process by introducing modern
technologies. focusing on operational processes, and
strengthening cooperation with reputable partners to
improve product efficiency and productivity for customers.
(NESTLEMILO, 2023)
7.Physical Evidence
7.1 Sales space
Nestlé Vietnam has a system of modern product display Ovaltine milk is displayed in small grocery stores,
stores, providing a convenient shopping experience for supermarkets, shopping centers or can be purchased
customers. In addition, the company also cooperates with through e-commerce sites. Before buying, you need to
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large and small supermarkets, grocery stores, etc. to display carefully check the production date, expiration date and
their products. Nestlé has a system of modern product other related information. (Ngọc, 2021)
display stores, providing a convenient shopping experience
for customers (NESTLEMILO, 2021)
7.2.Packaging and Nestlé Vietnam always focuses on designing product Most Ovaltine products have that color as the main color.
design packaging that is beautiful, eye-catching and suitable for Carry within yourself a state of interest, excitement,
Vietnamese culture. For example, the Milo Vietnam product exploration, and discovery. Ovaltine's products have
packaging is designed with bright colors, images of active pictures of teenage boys and girls on the front... along
children and the slogan "Be healthy every day", or the red- with an image slogan that goes hand in hand with the way
brown Nescafé coffee box represents warmth, along with to lead a free, happy, and fulfilling life colors when
with images of coffee to remind you of the taste, and some children can pursue the things they are passionate about.
other items (NESTLEMILO, 2021)
7.3.Customer care - Consumer advice: On the packaging of each Milo product, Ovaltine also focuses on developing customer support
service customers will be given detailed and thoughtful instructions services to serve customers, but in general, Ovaltine still
on how to use and preserve the product, if you still do not does not have too many outstanding points. In addition,
really understand or want advice. For more information Ovaltine also strengthens links, interactions, and
about the product, on the packaging of each product there supports diverse customers through Facebook, YouTube
is a phone number so that in case you want advice, you can channels,.... with a hotline to support and answer
contact us. customer questions.
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- Purchase support: For customers who do not have time to Currently, the Ovaltine Vietnam Facebook page has more
shop, they can easily shop through online sales sites such as than 75,787 followers. In addition, Ovaltine also focuses
lazada, shopee, sendo, ... on customer care through promotions and purchase
- Additional services for consumers: In addition to the above support through direct sales channels.
services, Nestle also provides many additional services for
consumers, as well as customer care programs. Milo milk's
website offers advice from experts in taking care of families
and children, creating a place where parents can discuss
with each other about raising children, ... Along with that
are promotional programs that allow customers to try out
the product before making a purchasing decision.
- Post-purchase service: After purchasing the product, when
encountering problems with the product, customers can
complain to receive advice on returning a new product. All
Milo milk products have contact information. with the
manufacturer or consumers can contact on the official Milo
website.
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III. EVALUATE BUSINESS GOALS
1. Milo
Based on the analysis of Milo 7P marketing mix, it can be seen that the company has a well-defined strategy and has implemented various tactics to achieve
its business goals. The company has a strong brand image and a reputation for producing high-quality dairy products.The company has invested in various
marketing initiatives such as advertising, social media and promotions to increase brand awareness and reach a wider audience. has also diversified its
product portfolio by introducing dairy products and expanding into other product categories such as ber...In terms of pricing, the company offers products at
different price points to cater to different market segments. The pricing strategy is competitive and based on the value proposition offered to the
customer.The company also offers promotions and discounts to attract customers and increase sales. Milo has established a strong distribution network,
both online and offline, to ensure that its products are easily accessible to customers. The company has also focused on providing a positive customer
experience by training its employees, ensuring the quality of its products and services, and maintaining a clean and inviting atmosphere in its stores. my
storeOverall, based on an analysis of Milo's 7P marketing mix, it appears that the company is on track to achieve its business goals. The company has
implemented a variety of tactics to build a strong brand, increase sales, and deliver a positive customer experience. However, it is important to note that the
success of a marketing strategy depends on many external factors such as market competition, consumer behavior, and economic conditions, which can
affect a company's ability to achieve its goals.
2.Ovaltine
Based on the analysis of Ovaltine's 7P marketing mix, it can be seen that the company has a clear strategy and has implemented various tactics to achieve its
business goals. The company has a strong brand image and a reputation for producing high-quality dairy products.In terms of products, Ovaltine offers a wide
range of dairy products and dietary supplements….The company has also introduced new products to meet the changing preferences of consumers.Ovaltine's
pricing strategy is competitive and based on the value proposition brought to customers. The company offers products at different price points to cater to
different segments of the market. The company also offers promotions and discounts to attract customers and increase sales.The company has a strong
distribution network, both online and offline, to ensure that its products are casily accessible to customers. The company has also focused on providing a
positive customer experience by training employees, demonstrating the quality of its products, and maintaining a clean and inviting atmosphere in its stores.
Overall, based on the analysis of Ovaltine's 7P marketing mix, it looks like the company is on track to achieve its business goals. The compa
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PART B
I. EXECUTIVE SUMMARY
The company is a leading enterprise in the dairy processing industry, currently accounting for 75% of the dairy market share in Vietnam.
- Conduct market research: To determine the target market, customer behavior, competitors, and trends in the Vietnamese coffee market,
market research is crucial.
- Develop a unique value proposition: To differentiate Milo from competitors, it is important to develop a unique value proposition that is
relevant to the Vietnamese market. This may include promoting high-quality ingredients, unique flavors, and brand convenience.
- Develop a marketing campaign: Market analysis and value proposition should serve as the foundation for a comprehensive marketing strategy.
This may involve using advertisements on both classic and new media platforms, such as television, radio, billboards, and social media.
- Building partnerships: Milo can build partnerships with local coffee shops and retailers to expand its reach in Vietnam. These partnerships may
involve co-branding, product placement, or joint advertising.
- Offer promotions and discounts: Promoting sales and discounts can draw in new clients and encourage recurring business. Free samples,
package offers, and discount coupons all fall under this category.
- Participate in events: Milo may reach its target audience by participating in regional events like dairy festivals or trade exhibits, which can also
increase brand recognition.
- Monitor and measure success: It is crucial to frequently assess the marketing campaign's effectiveness and modify methods as necessary. Sales
revenue, market share, internet traffic, and social media engagement -are a few examples of key performance indicators (KPIs).
(NESTLEMILO, 2023)
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II. SITUATION ANALYSIS
1. Market description
The Vietnamese dairy industry has so far seen consistent expansion in recent years. Increased knowledge of milk's advantages for human health
and the rise of Vietnam's economy, which results in higher household incomes, is what has caused this growth. Milo has made inroads into
foreign markets while maintaining a dominant position in the home dairy sector. Due to its brand's reputation and high caliber, Milo has potential
in the Vietnamese dairy industry. high during a long period of operation. The high regard with which Milo's products have always been held for
both quality and food safety has attracted many domestic customers. Additionally, Milo has the capacity to adjust to shifts in consumer demand
and produce new goods. Its product line has been diversified to include dairy products like yogurt, ice cream, and other useful items in addition
to fresh milk and powdered milk. They are able to maintain their competitiveness and grow their market share as a result. Nonetheless, It should
be mentioned that the dairy industry is very competitive due to several domestic and international players. It will need constant work and
investment in R&D, product quality control, and successful marketing tactics for Milo to maintain and strengthen its competitive edge (NESTLE,
2022)
2. Competion and difference

Vietnam's dairy industry is incredibly vibrant and competitive. There are several domestic and foreign competitors striving for market share and
customer interest. A number of factors, including product quality, pricing, brand image, distribution methods, product innovation, and marketing
techniques, contribute to the heated rivalry. The industry is now seeing increased competition due to consumers' shifting preferences, increased
health awareness, and demands for a variety of dairy products. (GLOBAL, 2022)
• Market Leadership and Brand Recognition - Vinamilk is one of the market leaders in the Vietnamese dairy sector, and its brand is well-known
to customers and has a solid reputation. It has an edge over many rivals because to its established presence and reputation. Other companies
may not be as well-known or may have just entered the market, which might make it difficult for them to compete with Vinamilk's well-
established position.
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• Product Portfolio and Diversification - Vinamilk has a wide range of dairy products, including milk, yogurt, cheese, condensed milk, and
nutritious items for different age groups. Vinamilk also boasts a diversified and extensive product portfolio. While other dairy companies may
only provide certain product categories, Vinamilk 's wide selection of products enables it to serve a variety of customer groups.
• Investment in Research and Development - Vinamilk has constantly made investments in R&D, resulting in new product developments and
ongoing improvement. Their dedication to R&D helps businesses stay ahead of the curve when it comes to adapting to shifting customer wants
and tastes. Some other dairy companies might not put as much money into research and development, which can restrict their capacity to
launch new and improved products and lower their competitiveness.
• Distribution Network and Market Reach – Vinamilk has a strong, far-reaching distribution network that allows its goods to be sold in a variety
of urban and rural areas throughout Vietnam. Despite the fact that rival companies may have distribution networks, Vinamilk 's broad reach
enables it to have superior market penetration and accessibility, particularly in rural places.
• International Market Presence - Vinamilk has effectively accessed international markets and extended its business outside Vietnam, creating
a worldwide footprint and generating money. Other dairy companies could be largely domestically oriented, missing Vinamilk 's global
exposure and income diversification.
Due to its market dominance, diversified product line, R&D investments, vast distribution network, and successful international growth,
Vinamilk has a significant position in Vietnam's brutally competitive dairy sector. Other dairy companies fight in the market using their distinct
advantages, but Milo has been able to maintain a significant competitive advantage in the fast-moving dairy industry thanks to its established
market presence, well-known brand, and wide range of product offers. Other companies must differentiate themselves via product innovation,
branding, efficient distribution, and strategic market growth in order to compete effectively (GREENWAY, 2018)
3 Macroenvironment of Nestle Milo
3.1 Political and legal factors
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Vietnam has a stable political system that is very convenient for the business activities of enterprises. This greatly affects the marketing activities
of businesses and marketing decisions are strongly influenced by the development of the political environment. This environment is made up of
laws, government organizations, and pressure groups that have an impact on and limit different community organizations and members.
-Political and legal factors affect all businesses in a territory, and legal and institutional factors can threaten the viability and growth of any
business. Milo must adhere to regional legal and institutional requirements while conducting business in an administrative unit. We will look at
stability based on regional factors. Such conflicts can create favorable conditions for business activities and conversely, where institutions are
unstable, conflicts will adversely affect business activities in their territories.
-Tax policy: Import and export tax policies, consumption tax, income tax, etc… directly affect the revenue and profit of enterprises.
-Policies: Government policies will affect Milo, they can create profits or challenge Milo businesses, such as trade policies, industry development
policies, economic development, taxes, etc., as well as competition regulation and consumer protection policies. Create an equal environment
for Milo's businesses to operate. (HBR, 2023)
3.2. Economic
Vietnam's economic factors are on the rise, there are many new exponential cooperation and linkage opportunities. This has a great impact on
the research enterprises in our country. Specifically with Milo: The current economic growth rate of our country is quite high, creating many
opportunities for Milo to invest in expanding production and business activities. However, at present, Vietnam's economy is quite unstable; The
increasing growth rate but accompanied by rising inflation and a devaluation of the currency has caused difficulties for many business activities
of Milo, especially the procurement of imported materials. (HBR, 2023)
3.3. Technology factor
In order to meet the increasing demands of consumers, in recent years, Milo has constantly
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innovated technology, invested in modern machinery and equipment, and improved management and product quality. Advanced processing
technology, UHT sterilization technology and aseptic filling technology are becoming important factor in creating fresh flavors and can keep
them for up to 6 months without chemicals. preserve. In addition, cold storage and UHT sterilization processing are also being used to help
eliminate harmful bacteria and preserve the natural flavor, nutritional components of the product. Information technology is also applied by
Milo to improve management and business efficiency, provide widespread and timely services, in addition, it is also the fastest way to reach
consumers, in order to create competitive advantages. of Milo in the market (HBR, 2023)
3.4 Demographic environment
In 2024, the natural population growth rate is positive because the number of births exceeds the number of deaths by 879,634 people. Due to
migration, the population decreased by 94,928 people (DANSO, 2024). With a rapidly growing population, this will help Nestlé's market expand,
create more consumption opportunities and increase the business's revenue. The increasing standard of living of people also creates favorable
conditions. Conditions for Nestlé's coffee, milk, confectionery, etc. production industries to develop. Depending on age, Nestlé has different
customer targets. In 2018, Vietnam had more than 14 million children recommended by the National Institute of Nutrition to supplement nutrition
every morning. This is the age that needs the most energy for children's play and learning activities. Nestlé Milo focuses mainly on children aged
6-14 years old. Due to regional differences, regions will have different tastes. Nestlé also captures and produces products with many flavors.
Unique characteristics. Thanks to understanding the population situation, urban and rural population growth, migration rate..., Nestlé offers many
products that keep up with market trends.
3.5 Environmental
Vietnam's natural conditions are relatively good, with few natural disasters. Coffee grown in Vietnam includes Robusta coffee accounting for 90%
of the area, tea coffee 10% and jackfruit coffee 1%. Robusta coffee likes to live in the tropics, with suitable altitudes below 1000 m, temperatures
around 24 - 29°C, rainfall over 1000 mm and requires a lot of sunlight to grow these types of coffee in Vietnam. (VCCGROUP, 2020) This
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explains why Vietnam has become the leading green coffee supplier in the world. With the above advantages, producing instant coffee at low cost
is extremely favorable for Nestle Group in Vietnam.
3.6 Social
Because Vietnam went through difficult times, the issue of nutrition was almost forgotten. Due to war and poverty, people can only think about
how to eat enough. Today, thanks to the strong development of media, people are more aware of the importance of daily nutritional needs. Demand
levels have increased from 0.50 kg in 2005 to 7.50 kg in 2011. This positive change could open up a promising market for Nestle in the country
to enter. In general, the beverage market in Vietnam is a market with a lot of potential, especially in cities and towns, where modern lifestyles are
becoming increasingly popular, leading to an increase in food demand. processed and packaged products. In addition, nutritional drinks are also
becoming popular with the consumption of nutritional drinks. We can see that the Vietnamese beverage market will develop strongly in the near
future. upcoming. Requires companies to continuously improve their products to meet the increasing needs of consumers.
III. Marketing strategy

1. Segment
1.1. Demographic
Gender - all genders because milk is an easy-to-use product, regardless of gender.
Age - Nestle has a wide range of dairy products that can be used by both adults and children.
Income - Nestle has a price ranging from 20 to 1 million VND, suitable for all people with low to high income.
Occupation - Nestle dairy products have many uses, supplement many nutrients for the body, suitable for all occupations from students, students to workers
of different professions.
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1.2. Psychology
In Vietnam, when customers buy Nestle's dairy products in particular or all other dairy products on the market in general, they all have the purpose of
choosing clean milk, providing sufficient nutrients for the body and at a reasonable price pocket of the customer. So those thoughts will influence the buying
behavior of customers. In which, Nestle is the most popular because this is a product that is widely available in all stores with reasonable prices and fully
meets the requirements of consumers. Besides, Nestle's repair products are advertised heavily on websites, newspapers and television in order to bring
customers the best products.
1.3. Lifestyle
Most of Nestle's milk buyers are of working age, are parents and students with the aim of improving resistance to clean milk products. Besides, the advertising
of products heavily by famous people partly affects customers and their buying experience.
2. Positioning strategy
Marketing strategy of Nestle has successfully applied the concentrated marketing strategy to effectively occupy the high-income segment. Nestle wishes to
improve the physical fitness of children and aim to nurture young talents like preschoolers is considered the mainstay of the nation tomorrow. The middle-
class population is increasing and they are starting to focus more on the value of the product rather than the value of the product price. This will result in
100% organic Nestle being able to have more customers.
3. Differentiation
Nestle's competitive advantage
– Overall market leader and number one or two brand in most sectors.
– The enormous scope of Nestlé's business provides significant economies of scale in production, marketing and administration.
– The research and development capabilities enable the Company to lead in innovation for maximum portfolio flexibility.
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Supplier
Nestlé strictly manages suppliers with separate codes. Nestlé requires these suppliers to comply with standards, ensuring environmental sustainability, labor,
safety and health, and employment. This is carefully monitored by Nestlé through each stage and stage of supplying raw materials and products.
• 96% of suppliers, key suppliers and quality suppliers conform to Nestlé's sourcing policy.
• 75.2% of the volume of Nestlé purchases is consistent with Nestlé suppliers. For agricultural raw materials and packaging materials that are supplied through
complex trade channels.
Nestlé brand
Most people know Nestlé through their brands. Nestlé's portfolio includes virtually every food and beverage category – giving consumers tastier and healthier
products to Enjoy at every mealtime and throughout all stages of life including times of special nutritional needs. Below is a sample of some of Nestle's brands:
 Baby food: Cerelac, Gerber, Gerber Graduates, NaturNes, Nestum

 Bottled water: Nestlé pure Life, Perrier, Poland Spring, S.Pellegrino
 Cereals: Chocapic, Cini Minis, Cookie Crisp, Estrelitas,...
 Drinking milk: Juicy, Milo, Nesquik, Nestea juice
 Chocolate & confectionery: Aero, Butterfinger, Cailler, Crunch, Kit Kat, Orion, Smarties, Wonka
 Coffee: Nescafé, Nescafé 3 in 1, Nescafé Cappuccino, Nescafé Classic,...
 Ice cream: Dreyer, Extreme, Haagen-Dazs, Mövenpick, Nestlé Ice Cream…
 Nutritional health care: Boost, Nutren Junior, Peptamen
Nestlé quality management system
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Nestlé's Quality Management System is the foundation that Nestlé uses globally to ensure food safety, conformity to quality standards and create value for
consumers. Nestlé's internal quality management system is audited and certified by an independent certification organization to demonstrate compliance
with internal standards, ISO norms, laws and regulatory requirements.
Nestlé has a long history of working with farmers in rural communities to help them improve the quality of their products and adopt environmentally
sustainable farming practices. Quality management systems not only ensure Nestlé's continuous access to high quality raw materials. It also allows farmers
to protect or even increase their income. Often the living standards of entire rural communities are raised as a result. This system helps address important
global environmental and social issues.
Marketing sales
According to the function of trying to build Nestlé's brand, Marketing is right at the center of Nestlé's work. Indeed, “Branding the Nestlé Way” is a unique
process that sets Nestlé's marketing functions from outside to within the industry. Nestlé's marketing team provides an end-to-ead marketing service reflected
in three key areas: brand management, communications and consumer insights. More importantly, marketing is not a stand-alone activity here – Nestlé
focuses on the consumer, ensuring that Nestlé provides a seamless service, working hand-in-hand with Nestlé's customers and sales teams.
Services
Through science-based nutrition products and services, Nestlé will help improve people's quality of life by providing medical support and care to consumers
with special needs. Nestlé continues to help people lead fuller, happier lives by developing and delivering innovative, effective, nutritional products
scientifically proven to have functional benefits, designed to help children healthy growth and development, strong adults; to promote peak physical and
mental performance and to address weight problems.
Differences between Nestle and other dairy companies:
a) Nestlé milk (Milo) and TH True
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Nestle (Milo) has more product lines, more diverse in types, designs, and styles such as fresh milk, pasteurized milk, reconstituted powdered milk, and
sweetened condensed milk. Meanwhile, TH True Milk only focuses on producing pasteurized fresh milk, drinking water and ice cream. The nutritional
ingredients of Nestle milk (Milo) are mainly Protein, Iron, Calcium, supporting immunity and helping children increase height better.. As for TH True Milk,
each product has its own value and provides for each specific goal. groups like TH School Milk, TH True Yogurt Top Kid/Top Teen. Nestle (Milo) focuses on
developing delicious, attractive flavors, suitable for all tastes. TH True Milk is considered to have a fattier milk taste and less sugar so the flavor will be more
delicate.
b) Nestle(Milo) and Ovaltine
Nestle(Milo) is the leading milk brand in Vietnam while Ovaltine originates from the Swiss company Wander AG. Nestle(Milo) has many products for customers
to choose from while Ovaltine mainly focuses on liquid milk products. The price difference between Nestle (Milo) and Ovaltine is quite clear, the price
competition is extremely close.
c) Nestle(Milo) and Nutifood
Nestle(Milo) offers many types of barley milk while Nutifood only focuses on formula milk. Nestle (Milo) products target everyone, while Nutifood only focuses
on children and pregnant and postpartum women.
4. Marketing mix 7ps
4.1. Product
4.1.1 Products
Some of Milo's main product categories include:
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• Canned milk: New Milo teen provides protein and calcium to help develop height and strengthen bones.
• Instant milk bags: Convenient and suitable for consumers' diverse choices when they want to change their preferences.
• Milk powder in plastic cans and rectangular paper boxes: Pure milo powder, helping consumers prepare and mix according to their taste,
suitable for both adults and children.
In addition to dairy products, Milo also develops many other products such as: breakfast cereals, sandwiches, lozenges, etc. all named Milo and
have similar flavors. This helps businesses provide customers with more choices, solving many problems that powdered milk products cannot
meet such as convenience and speed. (NESTLEMILO, 2023)
Thereby, we can see that Milo has tried to diversify its products to meet customer needs, for example, Milo in cans with added protein and
calcium to provide a source of lasting energy for children. baby or Milo breakfast made from milk and 3 types of cereals to help supplement
necessary nutrients. Because the main ingredients are cocoa, the products are all sweets, can be used directly or easily combined. with other
ingredients to create a new and attractive dish such as Milo shaved ice, Milo milk tea,... With the drink product line, also known as liquid milk,
for growing children, the brand The company has focused on developing 3 main products including: Milo milk in cans, Milo milk in cans and Milo
powder.
4.1.2 Product brand
Brand: Nestlé
Nestlé's first commercial registration symbol was based on the family coat of arms of Henri Nestlé, with the image of a bird in a nest. This takes
its cue from the family's name, which means "bird's nest" in German. Henri Nestlé transformed his family crest by adding three baby birds being
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fed by their mothers, creating a visual connection between his name and his company's infant cereal products. He began using this image as a
commercial symbol in 1868. Today, the same bird's nest logo continues to be used on Nestlé products globally, and has been changed over time.
As for Milo milk products, the company's name was changed to red and placed in the same yellow frame as the word Milo. The entire Milo milk
product line has 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 green background. (NESTLE, 2024)
4.1.3 Product characteristics
Among the countless types of milk on the market, when mentioning chocolate-flavored milk with added nutrients, Milo will immediately appear
in everyone's mind. From the beginning, Milo has always considered supplementing nutrients from natural protein-rich ingredients to ensure
users' health as a guideline for the brand, and products can be easily seen. Milo's is always known for being a quality and safe product. To be
able to create a difference in products, helping to compete with other brands. Milo milk has always been famous for its natural ingredients and
unique, unmistakable chocolate flavor. Milo is always committed to the quality of products rich in nutrition and energy. This is also the
characteristic and outstanding advantage of Milo.
4.1.4 Product packaging
Milo's design features green as the main color, standing out among other milk brands when combined together. The packaging also has images
of children playing different sports such as basketball, soccer, ...creates a very dynamic feeling. On the other hand, necessary information such
as ingredients, instructions for use, etc. are printed fully and clearly to help buyers grasp the information and easily evaluate the product and
make purchasing decisions. . Milo's packaging is designed in a variety of ways, from box to package, helping buyers choose the right product.
Canned Milo is convenient to use right away. In addition, putting it in the refrigerator also saves space. Canned Milo is designed to not be
distorted when placed in tight places like a briefcase, and the chilling time is also faster. Powdered Milo Packed in small paper bags or large jars,
buyers can choose the appropriate volume for their frequency of use. The brand is designed without too much fuss with elegant, eye-catching
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colors to create a good impression on customers. The product name and uses are shown in a clear summary right in front of the product to help
customers understand product information easily, quickly and conveniently so that customers can easily give information. decide to buy the
product (NESTLEMILO, 2021)
4.1.5 Product quality
In many countries around the world, both developed and developing countries, the demand for consumption and use of organic food has
increased by an average of 20%, in some countries by up to 50% each year. Understanding this need, dairy companies around the world have
also produced more and more types of milk with completely natural ingredients. Since its establishment, Nestle has always considered
developing the brand based on raw materials. Natural ingredients (Milo milk is made from barley) and ensure the health of consumers. Therefore,
Nestle products are always appreciated by consumers for their safety and quality, Milo milk products are no exception, which has created a
difference and a place in the hearts of consumers. (NESTLE, 2022)
4.2. Price
4.2.1 Factors affecting price
~ Production costs: Nestle in Vietnam has promoted and expanded the Milo production line worth 37 million USD instead of importing as before.
Officially, by 2005, Milo liquid products were produced in Vietnam. Therefore, business profits will also increase due to saving on import costs.
~ Input raw material costs: Nestlé continuously expands its production scale in Vietnam by building a series of factories to produce its product
portfolio. This gives Nestle Milo a scale advantage, exploiting the experience curve effect and cutting costs, when in Vietnam resource costs such
as cheap land rent and affordable labor resources are available. low salary. In addition, preferential tax policies in Vietnam are also of interest
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for Nestlé to decide to invest towards the goal of significantly lowering product costs. Currently, up to 90% of products that consumers use in
Vietnam are produced by Nestle factories exported on the spot
~ Competitors' prices: Nestle operates in a product line where consumers have a high bargaining position. From here, the pressure on Nestle to
reduce costs in industries providing products with popular demand like the above products is extremely large. Typically, the Milo product in
Vietnam, a 180ml box priced at 11,000 VND, has been replaced by a 180ml product priced at 7,000 VND. Compare with Vinamilk 180ml sterilized
fresh milk: 39,500 VND/lot of 4 boxes, difference of about 2,000 VND. (NESTLE, 2024)
4.2.2 Pricing strategies
The Milo milk product line is aimed at parents with children from 6-14 years old, with input sources ranging from low to high. With the
determination from the beginning, the product is aimed at parents with children from 6-14 years old across the country. Therefore, the price of
the Milo milk product line is relatively suitable for the average monthly income of children. households in Vietnam (with an average GDP per
capita of 2,200 USD/year according to the Department of Statistics in 2016). The difference is not significant compared to the prices of other
dairy product lines. Milo liquid milk paper box 180ml: 27,500 VND/lot of 4 boxes, Milo Balanced Breakfast 180ml: 25,000 VND/lot of 3 boxes,
Milo low sugar 180ml: 27,500 VND/lot of 4 boxes. In addition, the brand also announced that the actual price of the product may vary slightly
depending on the business policy of each store or supermarket.
4.3. Place
4.3.1 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 products, helping the product become popular. Widely distributed everywhere nationwide, from
big cities to rural areas and provinces, Milo can be easily found in supermarkets, convenience stores, grocery stores,...
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Supplier: Nestle Vietnam Company => Retailer, Wholesaler => Customer (NESTLE, 2024)
The company always tries to bring products to consumers in the most convenient way. In addition, widespread distribution will help increase
product recognition among buyers.
4.3.2 Distribution channels
Nestle is a company specializing in the FMCG industry, this is the company's key product group related to food and daily necessities. The two
types of distribution channels used by Nestle are wholesalers and retailers. Both channels have many advantages in terms of high order
frequency, short shipping time and large customer base. These channels also have their own functions such as transactional functions (contact,
promotion, negotiation, risk taking), logistics functions (physical distribution, storage, classification) and support functions. (research,
sponsorship).
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 decrease in purchasing frequency and increase in purchase volume per purchase, Vietnamese people also tend to order
online in batches or cartons rather than buying retail like in the past. Just go to Milo's official store on these applications, there are a full range
of products for buyers to choose from, and you can also order in large quantities, helping consumers save on shipping costs as well. like time to
go shopping (KIM THẢO, 2023)
4.4 Promotion
4.4.1 Advertising
Nestle has tried to implement an advertising strategy by emphasizing the product's outstanding features and utilities by making customers
believe that Milo's products can supplement nutrition and help children be more active. Realizing that nowadays, most parents tend to want
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their children to focus on studying and achieve better academic results, forgetting that sports plays an important role in children's comprehensive
development. . Through sports, children not only practice physical fitness, but also learn many valuable lessons, cultivate positive character and
attitude, and care for people. Therefore, the marketing campaign for the program "Dynamic Vietnam" has been promoted by the brand through
mass media such as television, websites, newspapers,... by running Mainly its advertisements for campaigns and products on television and
social networks. Speaking of this, it is impossible not to mention the TVCs in the "Dynamic Vietnam" campaign, such as the TVC "Real Champion",
TVC "Thank You Mom",... thereby encouraging mothers Actively let children participate in more physical activities. Milo has also continued to
reach a wider audience through the community voices of several KOLs. After launch, Milo's advertising campaign reached 19 million views. This
has created success for Milo in the international arena when it won the prestigious APAC Effie Awards 2018 thanks to this campaign. It is known
that Nestlé Milo is the first Vietnamese F&B brand to receive this award. (GREENWAY, 2018)
In addition, the company has also invested in outdoor advertising by placing large billboards on crowded roads. Banners and billboards can be
designed to be a bit unique in size and image but still do not lose the meaning of the message and Milo's unique personality. . Nestle also delivers
its advertising to consumers in many new and innovative ways, such as with interactive video technology in department stores and supermarkets
and through projection screens or printed posters and stands. hanging in grocery stores. Specifically, Milo has cooperated with Asia Shopper
Marketing to install more than 100 3D projectors at the CO.OPmart and Lotte Mart supermarket systems to provide information about current
promotions, as well as product information. products are being sold on the counter. (KIM NGOC, 2024)
4.4.2 Promotions
Promotion is one of the indispensable steps when implementing Milo's marketing campaign. Up to now, Milo has offered many promotional
activities such as buying Milo and getting free swimming goggles, school supplies or scratch cards, etc. The products created are all products
suitable for users' needs. use by young children. Milo has run promotions in many different forms. Customers will receive learning kits and toys
when purchasing the product. In addition, in convenience stores or supermarkets, when purchasing Milo brand products at a set price, the buyer
will receive additional vouchers, or when purchased with other products, they will receive a discount. (NESTLEMILO, 2023)
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4.4.3 Public relations
Nestlé is always mentioned as a brand that always focuses on children's health. Nestlé's campaigns always aim to help children develop as
completely as possible. In particular, Milo and youth sports organizations create sports events, which is considered a useful and professional
playground with careful investment from the brand. There, Milo products were displayed and free drinks were given to all who participated.
This is an effective way to reaffirm the brand with products associated with sports activities, health training, creating sympathetic view from
customers. Not only that, in order to enhance the role of sports, Milo organized a walking program "Milo - Green Energy Journey", the event
attracted about 10,000 people, mainly students and teachers. teachers and parents from primary schools in the capital Hanoi. After 2 years of
organization in Ho Chi Minh City, the program has attracted more than 20,000 participants. In addition, the event also had the enthusiastic
participation of athletes, famous artists and experts in education and child nutrition such as MC Thanh Bach, player Cong Vinh, and the face of
The Voice. Vietnamese children Quang Anh... The program used all funds donated by the Milo brand and from souvenir sales at the event to
equip schools with sports equipment, specifically giving an additional 100 Standard sports equipment for 20 elementary schools in the city,
creating conditions for students to practice sports, develop physically as well as have more fun when going to school.. (NESTLE, 2016)
4.5. People
4.5.1 Customers
~ Parents with children from 6 to 14 years old, want products that can support physical and intellectual development.
~ People who don't like coffee in the morning, need a drink to start the day and can help stay awake instead of coffee
~ Sports enthusiasts and students need products that can provide the energy and nutrition needed for study and physical activity.
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~ People who like new, different and attractive things, like products with new breakthroughs in flavor instead of old products that are too
traditional and boring.
+ Children: are the main target group that Nestlé targets when launching products such as powdered milk, fresh milk, cereal, etc. The products
will help children grow and develop quickly physically as well as wisdom.
+ Adults: people aged 16-40 years old will be suitable for products such as coffee, soft drinks, candies, snacks, etc.
+ Elderly people: Nestlé has milks for the elderly to support strong, supple bones to maintain health.
4.5.2 Partners
Nestlé products are always highly appreciated for their appearance because Nestlé Vietnam has a close partnership with suppliers of raw
materials, packaging, equipment, etc. Nestlé Vietnam is always looking for A capable, reputable supplier with the ability to provide high quality
raw materials, packaging, and equipment to meet the production requirements of the business. There are also strategic partnerships with
distributors, supermarkets, retail stores, etc. Nestlé Vietnam cooperates with distributors to bring the company's products to consumers. used
quickly and conveniently. Nestlé cooperates with the Ministry of Agriculture and Rural Development and the Central Highlands Institute of
Agriculture and Forestry Science and Technology to distribute over 28 million high-yield disease-resistant seedlings to farmers to help them
increase income. Nestlé also signed with many partners to promote the brand, such as the Department of Education and Training of Ho Chi Minh
City, which targets students, the National Institute of Nutrition, which targets mainly consumers, or the Stand Tall Vietnam Milk Fund. Nestlé
will support children in difficult circumstances to drink milk every day
46
+ Crazy infrastructure supplier, electricity and water repair
+ Raw material supplier
+ Manufacturing factory
+ Distribution house
+ Retail stores and supermarkets
+ E-commerce products
+ Transport unit
4.5.3 Employees
Nestlé has succeeded in building an ideal and effective working environment and culture: Frankness - Respect - Trust.
First, the Nestlé environment requires employees to be "Frank" at work. That is an important factor that helps each individual or group
accurately evaluate their performance to improve and develop.
Second, all opinions and viewpoints are always "respected" from leaders to staff. Each member, no matter what position they hold, needs to
constantly improve their knowledge and skills. The spirit of eagerness to learn is considered an indispensable condition if you want to work at
Nestlé.
47
Third, "The greatest gift you can give a person is to believe in them" - a wonderful thing at Nestlé when everyone "Trusts" each other at work,
believes in the mission being carried out. every day, working together to bring the best products to consumers. They are always willing to share
knowledge and experience with their colleagues. Nestlé Vietnam always affirms that its staff are well-trained in professional knowledge,
professional skills and working attitude. Outstanding in Nestlé's human resources policy is its commitment to training Vietnamese leaders.
Currently, the proportion of Vietnamese people accounts for nearly 40% of the company's leadership team, 86% of senior management positions
and 99% of middle management positions. Nestlé has a personnel training policy that includes the following goals:
Integration training: The program is mainly aimed at newly recruited employees so that they can better understand the culture, corporate
organizational chart, regulations and work processes in the position they are recruited for.
Professional skills training: Enhance and help employees deepen their professional knowledge at work to take them further.
Soft skills training: During the working process, employees will learn the necessary skills in the department and position they are working in.
Leadership training: This program will help employees gain knowledge about leadership and management to prepare for higher-level positions
in the future. (NESTLE, 2022)
4.5.4 Shareholders
Nestlé Vietnam is a joint stock company, so the interests of shareholders are given special attention by Nestlé Vietnam. Nestlé Vietnam always
strives to bring profits to shareholders, while ensuring the sustainable development of the business. According to Nestlé Vietnam's 2022 financial
report, the company's largest shareholder is Nestlé Vietnam. Nestlé group, owns 99.9% of shares. Nestlé Group is a Swiss multinational company,
specializing in manufacturing and trading food, beverages and health care products. Nestlé Vietnam's second shareholder is Investment and
Development Joint Stock Company. Ho Chi Minh City Development (Saigon Investment and Development Corporation - ICD), owns 0.01% of the
48
shares. ICD is a Vietnamese real estate investment and development company. Nestlé Vietnam always considers people as the most valuable
asset of the business. Nestlé Vietnam always strives to build good relationships with customers. partners, shareholders and customers.
4.6. Process
4.6.1 From a customer perspective

The Nestle brand offers a unique service experience in the Vietnamese dairy market. The brand focuses on high-quality ingredients,processed and
preserved using high-quality technologies to ensure safety to create the unique flavor customers seek.
4.6.2 From an organizational perspective
- The manufacturing process – Milo has designed and managed its service processes to ensure
consistency in the customer experience. Milo adheres to high-quality production processes to ensure that its products meet the requirements and
desires of its customers. The company controls the entire milk production process from input materials to packaging, ensuring quality and
consistency throughout, all of which are strictly controlled and monitored. The company has well-trained staff who provide customers with
personalized service and help them choose the milk that is best for them. This improves productivity and quality in delivering products and services
to customers.
- Advertising and marketing - using advertising channels such as TV, radio, newspapers, social networks, and websites to introduce their products
to customers. Milo uses marketing campaigns such as discounts, coupons, or promotions to attract consumers' attention. This marketing process
enhances brand recognition and attracts customers' attention.
- Sales Milo’s - sales process can take place through many channels such as supermarkets, stores of large distribution chains, or online sales
channels. Sales staff are trained to understand the product well and answer any questions from customers.
4.6.3 Customer service
Services of Milo- In addition, Milo pays great attention to customer service. Milo's service processes are designed to deliver the desired customer
experience by linking different service operating systems. For example, the nutrition consulting service - Milo has a team of experienced
49
nutritionists who are always willing to advise and answer questions related to nutrition and the use of the company's products to support customers
more attentively. Besides, Milo has developed an online ordering and delivery service, allowing customers to enjoy products at home, saving their
time and effort. In addition, Milo also has after-sales service - Milo is committed to providing high-quality after-sales service to customers. This
may include handling complaints, providing technical support, or providing product-related information.
4.6.4 Customer relationship management
Milo built a customer relationship management (CRM) system to track customers' personal information, preferences, and feedback from
consumers. This helps Milo understand customers' needs and create appropriate marketing campaigns.
4.7. Physical Evidence
4.7.1 Sales space

Nestlé Vietnam has a system of modern product display stores, providing a convenient shopping experience for customers. In addition, the
company also cooperates with large and small supermarkets, grocery stores, etc. to display their products. Nestlé has a system of modern
product display stores, providing a convenient shopping experience for customers (NESTLEMILO, 2021)
4.7.2 Packaging and design
Nestlé Vietnam always focuses on designing product packaging that is beautiful, eye-catching and suitable for Vietnamese culture. For example,
the Milo Vietnam product packaging is designed with bright colors, images of active children and the slogan "Be healthy every day", or the red-
brown Nescafé coffee box represents warmth, along with with images of coffee to remind you of the taste, and some other items (NESTLEMILO,
2021)
4.7.3 Customer care service
50
- Consumer advice: On the packaging of each Milo product, customers will be given detailed and thoughtful instructions on how to use and
preserve the product, if you still do not really understand or want advice. For more information about the product, on the packaging of each
product there is a phone number so that in case you want advice, you can contact us.
- Purchase support: For customers who do not have time to shop, they can easily shop through online sales sites such as lazada, shopee,
sendo, ...
- Additional services for consumers: In addition to the above services, Nestle also provides many additional services for consumers, as well as
customer care programs. Milo milk's website offers advice from experts in taking care of families and children, creating a place where parents
can discuss with each other about raising children, ... Along with that are promotional programs that allow customers to try out the product
before making a purchasing decision.
- Post-purchase service: After purchasing the product, when encountering problems with the product, customers can complain to receive advice
on returning a new product. All Milo milk products have contact information. with the manufacturer or consumers can contact on the official
Milo website
III. ACTION PROGRAM

Marketing strategy Action program Time-bound Responsible
Person
Towards sustainable "Accompanying health Start implementation Head of Department of
growth and consumer care for 1 million from 2012 to 2020 Milk powder Milo
health, with a focus on the Vietnamese patients and
elderly and the domestic elderly people”
market
Milo has been Milo organizes activities From May 31 to Managing Director
implementing for children on the June 4, 2022
51
World Milk Day and occasion of World of Research &
International Children's Milk Day & Development of Milo
Day on June 1 for many International
years in order to develop Children's Day 1.6
the business
Develop people's lives, Milo and the rising milk April 14, 2023 Chairman of the Board of
create and create many fund Vietnam kick off the Directors of Nestle
core values 16th year journey in Company
Quang Ninh
In the idea of not leaving Nestle Milo gave 10 October 21, 2021 Managing director
any children behind, the billion VND and provided
community campaign 1 million glasses of milk
"You are Healthy, to children in need
Vietnam is Healthy" has afflicted by the Covid-19
assisted the company in epidemic.
gaining many positive
public perceptions.
PART C
I. A MEDIA PLAN
Nestle's media plan includes both digital and offline TV channels to achieve the set goals of increasing sales and brand recognition, building
customer loyalty and level of interaction social media interaction
For digital media channels: Nestle will set up, manage and develop popular social media accounts such as Youtube, Facebook, Instagram,
Twitter and TikTok. Besides, Nestle will use email and Zalo to keep in touch and announce new information about the company's products to
loyal and loyal customers. In addition, TH TRUEMILK will spend on PPC advertising on search engines and social media platforms.
For offline communication channels: Nestle will invest in advertising on popular TV channels and deploy billboards and banners in crowded and
noticeable locations. In addition, the Company will also place advertisements in magazines and newspapers that many people read.
52
To ensure the success of the above Communication Plan, Nestle will regularly monitor and evaluate the performance through KPIs. The
Company will also make necessary adjustments and changes based on previous results to achieve the desired objectives.
1. Media Goals and Objectives

The communication plan clearly states the communication goals and objectives of Nestle. Communication Purposes and Objectives serve as a
road map for the selection and implementation of communication strategies. This section provides a clear vision of how the planned
communication strategy will be implemented and describes the communication goals and objectives that have been set for Nestle. To ensure that
the communication plan helps the company achieve the set goals, the communication objectives and targets have been carefully formulated to
correspond to Nestle's overall marketing goals and objectives
Media goals and Specific Measurable Achievable Relevant Time-bound KPI
objectives
Increase sales and Communication 25% increase achievable targets increase sales in in the next sales revenue,
revenue plan to increase in sales and based on past relation to overall financial year customer
sales and revenue revenue in the performance and business goals acquisition and
for Nestle next fiscal year market trends retention rates
Increase brand a strategy for 25% increase achievable targets Raise brand in the next the number of
awareness raising brand in brand based on past awareness in financial year brands mentioned
recognition of awareness performance and relation to overall get social media
Nestle among the through market trends business goals engagement and
intended market a communication web traffic
strategy
Increase communication 50% increase Goals can be increasing social in the next year number of
interaction on plan to increase in social media based on past media followers, likes,
social networks interactive engagement in social media engagement is comments and
reading on the next year engagement and relevant to the shares on
Nestle.'s social market trends overall business Nestle’s media
networking sites goal of
increasing brand
awareness and
sales revenue
Build The customer achievable building customer within the next Customer
customer communication satisfaction goals based loyalty in line six months Satisfaction
loyalty rating of 90% on the responses with the overall Rate and Loyalty
53
plan aims to build within the next and comments in business goal of Retention
loyal customers six months the surveys increasing sales Rate
for Milo by and revenue
highlighting the
product's
packaging and
quality.
2. Target Audience
Nestle's target customers are Women, aged 13-35, living in urban areas, No. 2 big streets (HCMC and Hanoi), belonging to group AB, interested
in health and nutrition issues. Nutritious foods are good for physical and mental health. The portrait of Nestle's target customers can be
described through factors such as demographics, geography, psychology and communication.
Demographic
Age - Milo's target customers are mainly teenagers (13-18 years old); Youth (18-24 years old); Mature (25-35 years old); Depends on product
type and brand.
Gender - Milo's target customers are Female.
Income - Milo's target customers have families in income group A Class (15 - 150 million VND); Group B Class (7.5 – 15 million VND).
Education level - Milo's target customers are concentrated in the Primary School group; Secondary School (Secondary School); High School
(High School); College (College); University (University); Post-graduate (Post-graduate); depending on the product type.
Marital status - Milo's target customers are concentrated in the group of Young singles; Young married without children (Young married without
children); Young married with children (Young married with children); Middle-aged married with children; depending on the product type.
Behavior and psychology Psychology - Milo's target customers belong to the group of careful, thoughtful and sensitive personalities.
Life behavior - Vinamilk's target customers are interested in health and nutrition issues, prefer nutritious foods, beneficial for physical and
mental health.
Shopping behavior
54
Shopping occasions - Milo's target customers often use Buy products for meals (usually Breakfast). Shopping purpose - Milo's target customers
are Habitual and Problem Solving buyers; depending on the product type.
Usage behavior
Frequency of use - Milo's target customers usually use the product 1-2 times/day; 4-5 days/week. Usage volume – Milo's target customers often
use products of 10 liters/month or more. (Brade Mar,2022)
Geography
Milo's target customers tend to live in urban and suburban areas. Mainly in Vietnam and targeting Asian markets.
Media venue
Where to buy directly - Milo's target customers often buy products at home consumption channels (Supermarkets, Mini Supermarkets,
Convenience Stores, Markets, etc.); Local consumption channels (Schools, etc.) Where to buy online - Customers often find and buy products in
many different communication places such as social networks and websites, television, radio, online shopping, e-commerce platforms
II. Quote source
Bibliography
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ASSIGNMENT 2 FRONT SHEET

Qualification BTEC Level 4 HND Diploma in Business

Unit number and title Unit 2. Marketing Processes and Planning

Submission date Date Received 1st submission

Re-submission Date Date Received 2nd submission

Student names & codes Final scores Signatures

1.Nguyễn Thị Nam Anh – BH01449

2. Lâm Thị Thu Hà – BH01499

Class MA07101 Assessor name Ngo The Nam

Description of activity undertaken

Assessment & grading criteria

How the activity meets the requirements of the criteria

Description of activity undertaken

Assessment & grading criteria

How the activity meets the requirements of the criteria

Description of activity undertaken

Assessment & grading criteria

How the activity meets the requirements of the criteria

Description of activity undertaken

Assessment & grading criteria

How the activity meets the requirements of the criteria

Description of activity undertaken

Assessment & grading criteria

How the activity meets the requirements of the criteria

Grade: Assessor Signature: Date:

Signature & Date:

II.COMPARE THE 7P MARKETING STRATEGY WITH COMPETITORS

Company name Nestle ( Milo ) Wander AG (Ovaltine )

1.2.Product brand Brand: Nestlé Brand: Wander AG

+ Adults: people aged 16-40 years old will be suitable for

+ Elderly people: Nestlé has milks for the elderly to support

2. Competion and difference

3 Macroenvironment of Nestle Milo

3.1 Political and legal factors

3.3. Technology factor

3.4 Demographic environment

III. Marketing strategy

Gender - all genders because milk is an easy-to-use product, regardless of gender.

 Baby food: Cerelac, Gerber, Gerber Graduates, NaturNes, Nestum

Nestlé quality management system

Differences between Nestle and other dairy companies:

a) Nestlé milk (Milo) and TH True

b) Nestle(Milo) and Ovaltine

c) Nestle(Milo) and Nutifood

4. Marketing mix 7ps

4.1.4 Product packaging

4.1.5 Product quality

4.2.1 Factors affecting price

4.2.2 Pricing strategies

4.3.1 Distribution strategy

+ Raw material supplier

+ Retail stores and supermarkets

4.6.1 From a customer perspective

4.7. Physical Evidence

4.7.1 Sales space

4.7.3 Customer care service

III. ACTION PROGRAM

1. Media Goals and Objectives

Gender - Milo's target customers are Female.