Milo Vs Ovaltine Case Summary
“Choquik: A Quickly Chocolaty Death”
Given the same product quality, i.e. the same taste, texture, color, and smell, consumers will generally prefer cheaper brands, right? If the market perceives powdered chocolate drinks as commodities, then this is true for Milo, Ovaltine and Choquik. Pricing strategies and price wars will kick in, and the cheapest brand may get the bigger market share. This is not the case. The market considers Milo and Ovaltine as two distinct brands. Some consumers claim that Ovaltine tastes best, while some claim that the brand pales in comparison to Milo. The market talks about Milo vs. Ovaltine, like Black vs. White, two parties that vie for the biggest market share.
Where then is Choquik in the picture? …show more content…
Is it inferior to Milo and Ovaltine as to its product quality? One user from Sulit.com.ph says:
Why is a product that may be at par, or better yet, chocolatier than Milo, not performing as well as it should?
Intuitively, a better product should translate to a better performance, but the market today says “not necessarily”. Consider the following data:
• In a forum discussion on Milo vs. Ovaltine, users were divided as to what taste best. (www.sulit.com.ph)
• In a forum discussion on Milo vs. Choquik, users almost unanimously voted for Milo. (www.totalgirl.com.ph)
Why did users vote for Milo? Interestingly, there were those who say that Choquik, contrary to the forum post above, tastes like sugar instead of cocoa. Judging from the general disposition of the voters, their perceived quality of Milo as against Choquik may be distorted by their biases.
Most forum posters, however, prefer Milo because they have NEVER tried Choquik before.
Consumers are not TRYING out their product
The brand may be sweeter and tastier than Milo, or even against Ovaltine, but consumers will never know unless they try it out. This is entirely different from capturing repeat buyers. Even if Choquik succeeds in making consumers try their product, biases may distort how buyers taste …show more content…
Choquik.
Milo and Ovaltine has been vying for the market share longer than the existence of Choquik in the Philippine market. Consumers will inevitably compare emerging brands of powdered chocolate malt drinks to either Milo or Ovaltine. In fact, there is no better benchmark for Choquik than Milo and Ovaltine. Notice how these two brands in powdered chocolate malt drink position themselves:
Milo: The Winning Energy Drink Ovaltine: For Active Minds
Milo positioned itself as an energy drink for active bodies. It appeals to active consumers and further promotes its message through sponsorships of sports clinics, and even through young iconic athletes like Japoy. Ovaltine positioned itself as a brain-boosting malt drink packed with nutritional ingredients. To make consumers aware of its message, salespersons in grocery stores even dress up in an orange graduation gown and graduation caps.
What exactly is the message that Choquik is trying to convey? To be fair, Choquik deserves merit for trying to make consumers try out—but not support—their product. Note their jingle two years ago:
“Choquik, Choquik, Choquik Tikim na!” They had a pretty straightforward message—try out our product! But why should consumers buy their product in the first place? Choquik urges consumers to try their product, but what reasons do they have to forego purchasing and consuming Milo? Consumers do not try their product for a reason and that is,
Consumers do not have a REASON to buy the brand
Because of this, the brand is wasting away its potential to capture a larger market instead of playing a minority. On the other hand, it may have an effective message that may prove to be ineffective against a saturated market. Milo and Ovaltine has penetrated the market to the point that people debate over which brand is better. These are brands that are automatically associated with powdered chocolate malt drinks whenever consumers hear the word Milo and Ovaltine.
M asarap
I numin
L asang
O valtine
Some were even creative enough to make a joke out of both brands:
Milo has a major target market, and so does Ovaltine. It would be unwise for Choquik to compete in these foreign territories. If Milo and Ovaltine dominates the industry in the Philippine market, how does Choquik compete and survive in the market today? It seems that Choquik opted for the most intuitive solution.
Choquik is competing by Price
And unfortunately, in doing so, it presents itself as a cheaper version of Milo and Ovaltine. Consider the following posts:
Price-wise, it found a place in the hearts of some consumers. Is this good for the brand? As long as it is earning and consumers are buying it, Choquik can expect a growth in its sales, right? Wrong again. What it did was it trapped itself in a “commodity trap”. People buy not because they like the product, but because they can afford the product. Increase their income and watch the sales of a “commodity” go down.
What can Choquik do to improve its performance?
One good move would be to target a market distinct from the market of Milo and Ovaltine. The challenge, however, is to look for the best positioning for the brand. Originally, Choquik targets families to try out their product.
"Mainit man o malamig, kay bunso man o kay lola...Choquik, Choquik, Choquik, tikim na!”
However, Milo and Ovaltine are positioned as energy drinks, nutritional breakfast drink and even as a family product. These brands have become an ordinary consumable in Filipino families. One suggestion would be to position itself as a comfort food.
Like Nescafe, it can put forward for its message the need to relax and sit back in this fast-paced culture. Milo has an energetic image, and Choquik can position itself as exactly the opposite: after one tiring and physically exhausting day, soothe yourself with a warm glass of Choquik. Choquik—A chocolaty and quick relief for a tired busybody.
Prices in SM Taytay, Hypermart
Ovaltine 300grams Approximately Php 59.00
Milo 300grams Approximately Php 57.00
Choquik 300grams Approximately Php 54.00 Why should it change its image as to radically oppose the positioning of Milo?
Choquik effortlessly had the market compare their product with Milo, albeit negatively.
From the time it entered the market, and even until now, Choquik is seen as the trying-hard-Milo-imitation. It has to separate itself from the Milo-mentality of consumers and repackage the brand as a non-Milo product or it will inevitably suffer from negative comparisons to its competitors.
Through giving the consumers a message distinct from Milo and Ovaltine, consumers may find a reason why they should buy Choquik. Their product quality and quality efforts to provide the consumers with the best chocolate drinks are put to waste without a proper market. As one professor in CBA always says, everything is market-driven.
More than the taste, consumers are looking for certain belongingness in buying such products. Currently, customers either belong to the Milo group or the Ovaltine group. They get additional value from the product by providing them social acceptance and by feeding their ego because they drink the most popular brand in the market.
To do this, Choquik also needs to break free from the “commodity trap”. Currently, the pricing strategy of Choquik is to under price both leading brands. Customers find value in cheap products, but only in terms of monetary savings, and even then they only save Php 3.00 per 300grams of Choquik when they choose to forego buying
Milo.
In repackaging its product, one possible pricing position is a price above Milo but lower than Ovaltine. This is to avoid being perceived as the cheaper version and an imitation of the current leading brand. Its green packaging strongly resembles Milo, making it vulnerable to negative comparisons, and its cheaper price aggravates its position in the market. Instead of adding value through lower prices, Choquik can add value to customers by forming a third party in the two-party system.
Positioning
Ovaltine For the active Mind
Milo For the active Body
Choquik For relaxing Both Mind and Body
Once it breaks free from biases by differentiating itself from Milo and Ovaltine, Choquik can better assess how its quality fares against its competitors. The more feedback it receives, the better amount of information is available for continuous improvement. Why should it break free from its current disposition before directing quality efforts to suit the taste of Filipino consumers? Again, in the market for powdered chocolate malt drinks, excellent quality efforts do not necessarily attract customers into buying a product. Continuing its current pricing strategy while trying to improve its quality can starve the brand to death.
To sum their problem in one long sentence: Choquik is not performing as well as it should because consumers do not have a reason to even try their product and that it has positioned itself in the market, though possibly unintentional, as a cheaper, lower-quality, Milo-imitation product and therefore undesirable as compared to leading brands.
To sum the solution to their problem: Choquik must repackage its product and reposition itself as a comfort drink, as opposed to the current trend of chocolate malt drinks as an energy drink and nutritional supplement, and change its pricing strategy to promote a better quality image in the market by pricing near the average prices of both Milo and Ovaltine.
Given the same product quality, i.e. the same taste, texture, color, and smell, consumers will generally prefer cheaper brands, right? If the market perceives powdered chocolate drinks as commodities, then this is true for Milo, Ovaltine and Choquik. Pricing strategies and price wars will kick in, and the cheapest brand may get the bigger market share. This is not the case. The market considers Milo and Ovaltine as two distinct brands. Some consumers claim that Ovaltine tastes best, while some claim that the brand pales in comparison to Milo. The market talks about Milo vs. Ovaltine, like Black vs. White, two parties that vie for the biggest market share.
Where then is Choquik in the picture? …show more content…
Is it inferior to Milo and Ovaltine as to its product quality? One user from Sulit.com.ph says:
Why is a product that may be at par, or better yet, chocolatier than Milo, not performing as well as it should?
Intuitively, a better product should translate to a better performance, but the market today says “not necessarily”. Consider the following data:
• In a forum discussion on Milo vs. Ovaltine, users were divided as to what taste best. (www.sulit.com.ph)
• In a forum discussion on Milo vs. Choquik, users almost unanimously voted for Milo. (www.totalgirl.com.ph)
Why did users vote for Milo? Interestingly, there were those who say that Choquik, contrary to the forum post above, tastes like sugar instead of cocoa. Judging from the general disposition of the voters, their perceived quality of Milo as against Choquik may be distorted by their biases.
Most forum posters, however, prefer Milo because they have NEVER tried Choquik before.
Consumers are not TRYING out their product
The brand may be sweeter and tastier than Milo, or even against Ovaltine, but consumers will never know unless they try it out. This is entirely different from capturing repeat buyers. Even if Choquik succeeds in making consumers try their product, biases may distort how buyers taste …show more content…
Choquik.
Milo and Ovaltine has been vying for the market share longer than the existence of Choquik in the Philippine market. Consumers will inevitably compare emerging brands of powdered chocolate malt drinks to either Milo or Ovaltine. In fact, there is no better benchmark for Choquik than Milo and Ovaltine. Notice how these two brands in powdered chocolate malt drink position themselves:
Milo: The Winning Energy Drink Ovaltine: For Active Minds
Milo positioned itself as an energy drink for active bodies. It appeals to active consumers and further promotes its message through sponsorships of sports clinics, and even through young iconic athletes like Japoy. Ovaltine positioned itself as a brain-boosting malt drink packed with nutritional ingredients. To make consumers aware of its message, salespersons in grocery stores even dress up in an orange graduation gown and graduation caps.
What exactly is the message that Choquik is trying to convey? To be fair, Choquik deserves merit for trying to make consumers try out—but not support—their product. Note their jingle two years ago:
“Choquik, Choquik, Choquik Tikim na!” They had a pretty straightforward message—try out our product! But why should consumers buy their product in the first place? Choquik urges consumers to try their product, but what reasons do they have to forego purchasing and consuming Milo? Consumers do not try their product for a reason and that is,
Consumers do not have a REASON to buy the brand
Because of this, the brand is wasting away its potential to capture a larger market instead of playing a minority. On the other hand, it may have an effective message that may prove to be ineffective against a saturated market. Milo and Ovaltine has penetrated the market to the point that people debate over which brand is better. These are brands that are automatically associated with powdered chocolate malt drinks whenever consumers hear the word Milo and Ovaltine.
M asarap
I numin
L asang
O valtine
Some were even creative enough to make a joke out of both brands:
Milo has a major target market, and so does Ovaltine. It would be unwise for Choquik to compete in these foreign territories. If Milo and Ovaltine dominates the industry in the Philippine market, how does Choquik compete and survive in the market today? It seems that Choquik opted for the most intuitive solution.
Choquik is competing by Price
And unfortunately, in doing so, it presents itself as a cheaper version of Milo and Ovaltine. Consider the following posts:
Price-wise, it found a place in the hearts of some consumers. Is this good for the brand? As long as it is earning and consumers are buying it, Choquik can expect a growth in its sales, right? Wrong again. What it did was it trapped itself in a “commodity trap”. People buy not because they like the product, but because they can afford the product. Increase their income and watch the sales of a “commodity” go down.
What can Choquik do to improve its performance?
One good move would be to target a market distinct from the market of Milo and Ovaltine. The challenge, however, is to look for the best positioning for the brand. Originally, Choquik targets families to try out their product.
"Mainit man o malamig, kay bunso man o kay lola...Choquik, Choquik, Choquik, tikim na!”
However, Milo and Ovaltine are positioned as energy drinks, nutritional breakfast drink and even as a family product. These brands have become an ordinary consumable in Filipino families. One suggestion would be to position itself as a comfort food.
Like Nescafe, it can put forward for its message the need to relax and sit back in this fast-paced culture. Milo has an energetic image, and Choquik can position itself as exactly the opposite: after one tiring and physically exhausting day, soothe yourself with a warm glass of Choquik. Choquik—A chocolaty and quick relief for a tired busybody.
Prices in SM Taytay, Hypermart
Ovaltine 300grams Approximately Php 59.00
Milo 300grams Approximately Php 57.00
Choquik 300grams Approximately Php 54.00 Why should it change its image as to radically oppose the positioning of Milo?
Choquik effortlessly had the market compare their product with Milo, albeit negatively.
From the time it entered the market, and even until now, Choquik is seen as the trying-hard-Milo-imitation. It has to separate itself from the Milo-mentality of consumers and repackage the brand as a non-Milo product or it will inevitably suffer from negative comparisons to its competitors.
Through giving the consumers a message distinct from Milo and Ovaltine, consumers may find a reason why they should buy Choquik. Their product quality and quality efforts to provide the consumers with the best chocolate drinks are put to waste without a proper market. As one professor in CBA always says, everything is market-driven.
More than the taste, consumers are looking for certain belongingness in buying such products. Currently, customers either belong to the Milo group or the Ovaltine group. They get additional value from the product by providing them social acceptance and by feeding their ego because they drink the most popular brand in the market.
To do this, Choquik also needs to break free from the “commodity trap”. Currently, the pricing strategy of Choquik is to under price both leading brands. Customers find value in cheap products, but only in terms of monetary savings, and even then they only save Php 3.00 per 300grams of Choquik when they choose to forego buying
Milo.
In repackaging its product, one possible pricing position is a price above Milo but lower than Ovaltine. This is to avoid being perceived as the cheaper version and an imitation of the current leading brand. Its green packaging strongly resembles Milo, making it vulnerable to negative comparisons, and its cheaper price aggravates its position in the market. Instead of adding value through lower prices, Choquik can add value to customers by forming a third party in the two-party system.
Positioning
Ovaltine For the active Mind
Milo For the active Body
Choquik For relaxing Both Mind and Body
Once it breaks free from biases by differentiating itself from Milo and Ovaltine, Choquik can better assess how its quality fares against its competitors. The more feedback it receives, the better amount of information is available for continuous improvement. Why should it break free from its current disposition before directing quality efforts to suit the taste of Filipino consumers? Again, in the market for powdered chocolate malt drinks, excellent quality efforts do not necessarily attract customers into buying a product. Continuing its current pricing strategy while trying to improve its quality can starve the brand to death.
To sum their problem in one long sentence: Choquik is not performing as well as it should because consumers do not have a reason to even try their product and that it has positioned itself in the market, though possibly unintentional, as a cheaper, lower-quality, Milo-imitation product and therefore undesirable as compared to leading brands.
To sum the solution to their problem: Choquik must repackage its product and reposition itself as a comfort drink, as opposed to the current trend of chocolate malt drinks as an energy drink and nutritional supplement, and change its pricing strategy to promote a better quality image in the market by pricing near the average prices of both Milo and Ovaltine.