Table of Content

Contents
Introduction .............................................................................................................................................. 2
Objective Of Nestle ................................................................................................................................... 3
Nestls Marketing Tactics ........................................................................................................................ 4
Nestle Milo ................................................................................................................................................ 5
Product .................................................................................................................................................. 7
Product Branding .................................................................................................................................. 9
Product Packaging ................................................................................................................................. 9
Place ........................................................................................................................................................ 10
Promotion ............................................................................................................................................... 11
Types of Promotion ............................................................................................................................. 12
Effects of Promotion ........................................................................................................................... 12
PRICE ....................................................................................................................................................... 13
Marketing Mix Recommendation ........................................................................................................... 14
References .............................................................................................................................................. 15











Introduction

Nestle is the worlds leading food manufacturer and also the market leader in the products like
Coffee and mineral water. Nestle also have a very big presence in products like, ready to eat
dishes, milk based products and stuffs related to pharmaceuticals.
In the early 1930s, one of Nestls engineer, Thomas Mayne, started working on product that can
be used a healthy alternative to other drinking materials used at that time. So he prepared a drink
using his knowledge about the local milk products and Swiss nutrition with also a bit of Cocoa,
the drink was names as Milo.
The drink was named after the Greek Character Milo, who was the symbol of strength.
Nestle sold its products in every part of the world, Nestle as the name and the companies logo
suggest has come from the word Nest, which means a safe place or a kind of symbol of care for
their consumer. And this symbol of care has always been the base of all the innovative marketing
strategies made around the different products of Nestle.


Objective Of Nestle
The objective of the Nestle is that there products are being marketed in such a way that they are
able to sustain in the market for the longer period of time, enabling higher revenue growth and
good return of investment for the share holders.
This process include, creating the healthy business environment in and around the organization,
be it like the economic policies or working as per the government regulations and also taking
care of the employees working in the organization.














Nestls Marketing Tactics

Nestle has implemented a developmental human resource and social policy approach; with a
kind of management style which is based on the system of commitment of management and
involvement of people towards the company. Moreover, Nestle also had responsible corporate
employee, who are fulfilling their , shareholders, customers, communities and consumers.
From the day Nestle has started their business, they are well aware of the facts that food products
product they are going to launch should be marketed in such a way that they feels closely knitted
to the food habits of the local people, whether they are promoting it in Swiss market or in
international market. Marketing and product category should be as per the local requirement.
Nestle has always try to integrate as much as possible as per the local atmosphere of the market
and the people where they are going to launch the product, this helps them to understand the
requirement of the people and what are their like and dislike. In a way this marketing strategy
also helps them to save lot of money in a way that, they dont have to change their product a lot.
One clear example of the same is the type of Nestle melo, they sell in different part of the word,
and the Melo that sells in Ghana is different in stature to the one they sell in Australian market.
The one they sell in Ghana is bit in a size of grains, while the one that is sold in Australia is more
of a powdery in character. This is just because of their understanding of the local market
requirement, and in that way products do become successful.

Nestle Milo
Milo is the beverage that is was originated in Australia, it is the combination of products like,
Chocolate and Malt. The Milo was invented by the Engineer from Nestle, Thomas Mayne in
early 1930s. Since its discovery, Milo is also manufactured in countries like, Singapore,
Malaysia, China, India, Jamaica, Colombia, Peru, Nigeria and Ghana.
1940s Milo Tin
Milo which is manufactured outside Australia, is customized as per the local requirement. Like
when it is manufactured in countries like Ghana, Philippines, it is packed with the instruction
method that, mix with hot water or cold water, and with the option like add milk if desired. So
the reason behind that it is prepared differently in different countries is that of the marketing mix
and understanding the local environment.
Difference between Milo Products.

Marketing Mix of Nestls Milo
First lets understand what is marketing mix; Marketing mix is originating from the single P
(price) of microeconomic theory (Chong, 2003). McCarthy (1964) offered the marketing mix,
often referred to as the 4Ps, as a means of translating marketing planning into practice
(Bennett, 1997). Marketing mix is just a method not a scientific theory, it is only the framework,
that helps the decision making managers to understand what exactly can be the requirement of
their customers. The tools can be used to develop both long-term strategies and short-term
tactical programs (Palmer, 2004).
The Marketing mix is often revolves around the 4Ps of the marketing, which are like Product,
Price, Promotion and Placement of the product and the complete strategy of the product is made
developed around those 4Ps only. Kent (1986) refers to the 4Ps of the marketing mix as the holy
quadrupleof the marketing faithwritten in tablets of stone. Marketing mix has been
extremely influential in informing the development of both marketing theory and practice
(Mller, 2006).
Now we will discuss in detail about the Marketing Mix of Nestls Milo with the 4Ps of
marketing.
1) Product
2) Place
3) Promotion
4) Price
Product
Milo is a very well accepted and known product and has the number of product items under the
same brand name Milo. The different Milo that Nestle is promoting are mentioned below in
detail.
i) The Original Milo
The Original Milo has the icon of nutrition on each pack which refers to the nutritious
properties it is having and also enforces the customer that its every cup is full of
nutrition and other healthy material.
ii) Milo Fuze
Milo Fuze is the product that comes in 3 different flavors, and it is very easy to use
and having the Actigen-E inside it as a nutrition with other ingredients. The 3 variants
of Fuze are as Cereals for hunger, 3in1 for customers convenience and the last one is
high Calcium for strong bones.
iii) Pack Extra Nutrition with Milo
Milo extra nutrition comes in a ready to drink pack, and is also comes with nutritious
chocolate malt beverage is its nutrition and bring health in new attractive package that
invites users to buy the product. It has all the nutrition that a normal body requires,
like as Actigen-E, and Protomal T in a more convenient pack.
iv) Milo Bar
This is one of the another major product of Nestls Milo brand, with a layers of
Crispy Milo and sprinkled with kibbles on the top, It also contains, the Actigien E,
and also contain the energy needs for the daily requirement. It also helps children for
betterment of their senses.

Nestl has always promoted the products on the basis of their ingredients, this has given them the
advantage over the other products they are competing with, the advantage with Milo is that, it
has always comes with the proteins and other healthy ingredients which helps it capture more
market then the other competitors.
LaLonde (1977) found product related criteria to be most important, followed by distribution,
price, and promotion. Perreault and Russ (1976) found that product quality was considered most
important, followed by distribution service and price.
The major ingredients that, Milo is using in its products and they are promoting the same while
doing the marketing are like as;
Natural Goodness - of malt, skimmed milk, and cocoa.
Actigen-E - a combination of 8 vitamins and 4 minerals which helps in the optimal release of
energy.
Protomalt - a malt extract with a mixture of different Carbohydrates that provides energy and
nutrients the body needs.

Product line in the companies are considered as the singular entities whereas even being singular
there are most companies which even do not sell them in isolation there major reason behind that
is the marketing mix, but in case of Milo things are different where Nestle has created the
complete product line for the Milo and this have given them the advantage in terms of Promotion
and targeting the specific customers.
Product Branding
Branding is the type of the thing that comes with the type of attributes with which the consumer
expects from the final products, and branding is one thing that influences the customer to buy the
product. There can be different ways of branding either by the company name or even by the
singular entity of the product, in case of Milo it was sold as the single entity brand not on the
companys name.
A catchy name and interesting packaging of the product are considered as the important part f the
product marketing, as it directly strikes to the consumer mind, which is considered as the true
essence of the product success. Company has to be aware of the consumer expectation and has
to keep on changing in the product and product line time to time. Nestle has done the same with
Milo product, they have time to time doing changes in the product line of the Milo which keeps
on attracting users to the products with the way it is being branded.
Product Packaging
Packaging of the Milo product is the largest and one of the biggest communications, that
company has delivers for the product promotion and it has impressed the consumer in the same
way. With the packaging the company has also delivered the wellness messages on the
packaging which has always given the product an interest towards the consumer.


Milo Packaging
Place
Place is not all about the way the product is being marketed and where the product is being
marketed, be is like the placement if hording, billboard or doing the promotion through the
channels like ATL and BTL, but it also about the storing, distribution and transportation of
products.
More effective is the distribution network of the product, lesser will be the cost and also helps in
enhancing the product quality.
The most effective way of marketing placement is either opening up a Milo specific center in the
place which have a high footfall of consumers, where people can look in to the complete product
line of the Milo, these type of stores can be opened in places like Shopping malls, or even
billboard can also be placed to attract the customers around the areas of shopping mall. The place
should not only have the Milo drink but should also have the other goodies like, the drinking
Mugs, Kids School bags, keychains etc.
This type of product placement increases the product popularity and also helps in building the
specific customer base, who are devoted to the product and also to the product line.

Promotion

There are different type of goods and services that requires effective promotion to capture the
market irrespective of how well the product is being developed, the company has to plan an
effective promotion strategy that can help the organization to persuade the potential buyers, in
order to influence the potential buyers of the organization.
While promoting the Milo as a product one of the major strategy of the Nestls is how they are
going to convince the customer for their product, and also letting the customer know about the
distinct advantages Milo is having other product range of the same category. Frey (1961)
suggests that marketing variables should be divided into two parts: the offering (product,
packaging, brand, price and service) and the methods and tools (distribution channels, personal
selling, advertising, sales promotion and publicity).
Nestle has carried their promotional campaign through the traditional efforts like Mass Media,
that can be distributed as, Television commercials, radio, newspaper etc. As the choices in
traditional mass media is also increasing, Nestle is also taking the advantage of the same by
promoting the Milo products in more innovative ways that has been done before, the new
technology has also proved and added advantage for the promotion of the product, which is the
important part of the marketing Mix.
With addition to the tradition promotional methods, Milo product is also being promoted in other
different ways like the non media promotion, like putting up the exhibitions of their product,
working on public relations, sales promotions giving the freebies to the customer, these are the
different tools that Nestl is using for the product promotion of Milo.
Types of Promotion

i) Television
Milo is a very frequent product that is being promoted on the TV commercials and
the same has helped the organization to capture more customers.
ii) Outdoor Media
Milo being a nutritious drink is always interested in sponsoring the sports event, and
being the sports loving country, Australians can always s see the Milo hording in the
cricket ground or on the rugby field, this is the way of Outdoor promotion for Milo.
Effects of Promotion




Different ways of Promotions are like giving the packet free with the other packet like they are
doing buy a 1KG pack and get the another KG absolutely free, these are the promotion tactics
that has always interested the consumer of any category.

PRICE

Price is one of the important factor of the Marketing Mix, or what we can better say for product
marketing, Marketing mix is originating from the single P (price) of microeconomic theory
(Chong, 2003). New Ps were introduced into the marketing scene in order to face up into a
highly competitively charged environment (Low and Tan, 1995). Price is one of the thing that
has a direct impact on the customer, if the price is competitive the product is accepted by the
masses, if the product is over priced than it has to marketed in such a way that a particular
category of people should buy it.
What Nestls has done with Milo or can say with some of their other products they have applied
the ethnocentric policy, which means no matter where there product is being sold it will be of the
same price everywhere.
The Pricing strategy is dependent on the few points like, how much profit they are going to earn
from the final product, what will be the market segment they will be targeting, these things help
them to fix the price in such a way that they can capture the maximum market share.
Having the clear pricing strategy is one of the most important factor of the marketing mix, it
helps the organization to clearly understand the product worth and also what will be the
expectation of customer from the product.

Marketing Mix Recommendation

To make Milo as the well-known product all over the country, Nestls should have to make lot
of promotions in different areas of the county which is dissimilar with the promotions that they
have implemented earlier. After we have been through the discussion, we all have agreed that
Milo can wider their marketing strategies by the ways of promotion, effective distribution
channels or we better say the ways of product placement. For that they can even try things like
making a contest or a lucky draw in different areas of the country depending upon the
demographics of that area that will help them to analyze the target customers. Besides that, Milo
can make a different packaging style. They should combine all their products in one pack that
include mini pack of Milo powder, Milo energy bar, Milo fuze, and so much more and can sell
that pack on the lower price than the individual product cost, that will help the consumer to
reduce their cost of buying and it can also be considered as the innovative marketing tactics.
With that they can also make use of their effective distribution channel network
By doing this style of Marketing, Milo can promote all their delicious product to the customer so
that they are able to try all the product that produced by Milo. If they interested with one or all
the product, for sure they will but it again and again. This will increase the profit.






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