Milo Thailand Marketing Plan
1.0 EXECUTIVE SUMMARY
“Milo”, a brand of chocolate/malt powder beverage of Nestle, which is once known in the past as number one brand in customers’ mind in Thailand. But nowadays Milo is not that well perceived as before but another leader, Ovaltine, had triumph the position and become market leader in the segment. With the nature of Nestlé that utilize generic marketing strategy such as cost leadership in business, the company is currently struggling hard time finding the competitive advantage for Milo, when it comes to face to face with its main rival, Ovaltine. The main objective of this marketing plan is to provide useful of marketing strategies, explanation and sales forecast to make Milo become the market leader in Thailand. Models and concepts such as Ansoff’s Model, SWOT Analysis and Porter’s Five Forces Analysis are implemented to help us analyze external factors. Our group uses both primarily data from field survey and secondary data from a research firm, AC Nielsen Thailand, to help us gaining more insight and customers’ deeper perception toward the brand. This information provides solid foundation in the process of forming the effective marketing strategies for Milo.
Marketing Management: MILO Marketing Plan
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2.0 SITUATION ANALYSIS
Nestlé’s Milo had entered Thailand market for decade and then become the second leader in chocolate/malt related products market. The brand from Nestlé, in the past, was consisted of many business units from UHT chocolate milk, chocolate/malt powder beverage, chocolate ice-cream, chocolate bar and chocolate cereal. However, some product lines started to shown not enough positive sign in term of sales volume. Nestlé Thailand, the company which core competency is the economy of scales model, then decided to outsourced the chocolate UHT, and ice-cream category to F&N Diaries (a major manufacturer of sweetened condensed milk from Malaysia), the chocolate bar to DKSH Group, Diethelm (market expansion service company).
“Milo”, a brand of chocolate/malt powder beverage of Nestle, which is once known in the past as number one brand in customers’ mind in Thailand. But nowadays Milo is not that well perceived as before but another leader, Ovaltine, had triumph the position and become market leader in the segment. With the nature of Nestlé that utilize generic marketing strategy such as cost leadership in business, the company is currently struggling hard time finding the competitive advantage for Milo, when it comes to face to face with its main rival, Ovaltine. The main objective of this marketing plan is to provide useful of marketing strategies, explanation and sales forecast to make Milo become the market leader in Thailand. Models and concepts such as Ansoff’s Model, SWOT Analysis and Porter’s Five Forces Analysis are implemented to help us analyze external factors. Our group uses both primarily data from field survey and secondary data from a research firm, AC Nielsen Thailand, to help us gaining more insight and customers’ deeper perception toward the brand. This information provides solid foundation in the process of forming the effective marketing strategies for Milo.
Marketing Management: MILO Marketing Plan
1
2.0 SITUATION ANALYSIS
Nestlé’s Milo had entered Thailand market for decade and then become the second leader in chocolate/malt related products market. The brand from Nestlé, in the past, was consisted of many business units from UHT chocolate milk, chocolate/malt powder beverage, chocolate ice-cream, chocolate bar and chocolate cereal. However, some product lines started to shown not enough positive sign in term of sales volume. Nestlé Thailand, the company which core competency is the economy of scales model, then decided to outsourced the chocolate UHT, and ice-cream category to F&N Diaries (a major manufacturer of sweetened condensed milk from Malaysia), the chocolate bar to DKSH Group, Diethelm (market expansion service company).