P. 1
Report-Nestle-Milo

Report-Nestle-Milo

|Views: 3,142|Likes:
Published by Shanti Sharma

More info:

Published by: Shanti Sharma on Mar 12, 2011
Copyright:Attribution Non-commercial

Availability:

Read on Scribd mobile: iPhone, iPad and Android.
download as PDF, TXT or read online from Scribd
See more
See less

07/26/2011

pdf

text

original

Sections

  • Executive summary
  • Introduction
  • Objective of Nestle
  • Nestle Corporate Philosophy
  • Nestle Marketing strategy
  • Nestle Malaysia
  • Introduction to Milo
  • Product Life Cycle
  • Product Line width
  • The Marketing Mix of Nestle Marketing
  • 1. Product
  • Nutrition in Milo
  • Product branding
  • Product Packaging
  • Information in Milo Packaging
  • Product Differentiation
  • Product recommendation
  • 2. Place
  • Product positioning
  • Channel function
  • Channel structure
  • Product transportation
  • Optimizing Networks
  • Pilot with Schenker
  • Place recommendation
  • 3. Promotion
  • Advertising
  • Type of Advertising Media used by Nestle
  • Effects of advertising
  • Segmented and Target Market
  • Promotion Recommendation
  • Price strategy
  • Setting the right price
  • Pricing Tactic Diagram
  • Factor Affecting the Pricing
  • Price recommendation
  • S.W.O.T Analysis for Milo
  • PEST Analysis
  • Corporate Social Responsibility
  • Nestle Research and Development
  • Conclusion

MKT260

Acknowledgement
Assalamualaikum WBT, Alhamdulillah, we are very grateful to the Almighty God, who have bestowed us the will to complete our assignment about “Nestle Milo” which is connected to our scheme Introduction to Marketing, MKT260. Here, we would like to take this opportunity to express our highest gratitude and compliment to the people who are involved directly or indirectly in this assignment especially our beloved Miss Najihah bt Abd Rahim which is our MKT260 lecturer.. In this assignment, we examine that the important of the marketing strategies for the international firm like Nestle. Among the BBC global top 30 brands, we have analysis of how a product’s sales are driven by brand name, weighted for market leadership, stability and ability to cross national borders. The consumers are not aware of their origins. Beside, the product’s prices usually reflect its proper value in the eyes of the consumer. It’s always not a good idea that the strategy of offering lower prices is to penetrate the advantaged economies and to pay the costs for the unknown quality of their goods. Thank you to all people who are involved in making our assignment a successful one and may all your help and effort are blessed. Thank you

(Muhammad Salihin Jaafar)

(

Anisha bt Ramli

)

(

Nur Adilah bt Md Zain

)

(Nurul Zamieza bt Ahmad)

1|Page

MKT260 Executive summary
The main aim of international marketing is to provide solid foundations that are useful for explanation, prediction and control of the international business activities. We are not an expert in nestle but we have analysis the firm’s global marketing strategy in the field of their brand awareness, products and system design, product positioning, advertising, packaging, distribution and customer service. We have notice that the firm utilized generic marketing strategy such as low cost leader in business, differentiated good and services satisfy the needs of customers through a sustainable competitive advantage. International marketing refer to using common products, price, promotions and distribution program on a world basis. My secondary data is the most of important for our research and I contributed in the area such as group or segment those types of potential customers that are most likely to benefit from their product line. That is why we effectively utilized the periodical articles which can be a great source of product, marketing and industry information. (Periodicals refer to magazines, journals and newspapers. Although we are living in an electronic age, there is still much information that can only be or best be found in print resources or books at library. Nestle management level is a decentralized as possible, within the framework compulsory by fundamental policy and strategy decisions requiring increasing flexibility and operational efficiencies, as well as the group-wide need for alignment and people development, may also set limits to decentralization.

2|Page

MKT260

Introduction
Nestle SA , the world’s leading food manufacturer and the market leader in both coffee and mineral water, produces a wind range of products including prepared dishes and cooking aids, milk-based products, cereals, instant coffee, pharmaceuticals and baby foods. Nestle SA is a publicly owned company, with subsidiaries across the world. It website addresses in 104 countries. It is also the world largest food and beverage company with $71 billion in annual sales and almost 230,000 employees around the world. It markets some 8000 brands that include instant coffee. Remarkably, its products are sold in every country in the world, including in North Korea. Nestle coat of arms, the bird’s nest, which refers to his name, has become a symbol for the products being a safe care for their consumer product safety and quality. Research and development based innovation capacity and strong brands are priority for Nestle.

Objective of Nestle
“ Nestle business objective is to manufacture and market its products in a way that creates value that can be sustained over the long term for shareholders, employees, consumers, business partners and national economies in which Nestlé operates”. The aim of the creating values for the company include with improve business condition for the firm. To obtain more reliable and high qualify source of raw materials, improved government functioning and regulatory, employed skill and loyal workforce and superior quality products which successfully complete.

3|Page

MKT260 Nestle Corporate Philosophy
• •

Be the leading multinational company in food, nutrition and wellness. Produce and sell world-class products of the highest consistent quality, reliability and convenience based on business excellence principles throughout our operations.

• •

Maximizes the use of good quality local raw materials. Be an exemplary employer with a progressive human resource and social policy; with a management style that is based on "Management Commitment and People Involvement"

Be a responsible corporate citizen, fulfilling all obligations to Government, shareholders, customers, communities and consumers.

Protect the environment by being committed to environmentally sound business practices and taking into account the need to preserve natural resources and save energy.

Guarantee that all products manufactured, imported and distributed by Nestlé Malaysia are certified HALAL by authorised Islamic certification bodies.

Deliver shareholder value through the achievement of sustainable and profitable long-term growth.

4|Page

the firm delivered shareholder value through the achievement of sustainable and profitable long-term growth. nationality. Nestle activities to integrate itself as much as possible into the cultures and traditions where it is present. From its beginning. The brands of Nestle are a key strength but the executive levels are very aware today that brands alone are not enough to win. Part of the branding strategy is the brand plan for each product. religion. Perhaps.MKT260 Nestle Marketing strategy The firm applied a progressive human resource and social policy. the firm had responsible corporate citizen. shareholders. gender or age. the environment is changing very rapidly and in particular customers are looking for answer to their concerns. global thinking and strategies can best be expressed through local action and commitment as showed as Nestle Malaysia. with a management style that is based on management commitment and people involvement. For example. Protest the environment by being committed to environmentally sound business practices and taking into account the need to preserve natural resource and save energy. fulfilling obligation to government. That is why Nestle form the very start has always shown respect for diverse cultures and traditions. Nestle embrace cultural and social diversity and does not discriminate on the basis of origin. Precisely. imported and distributed by Nestle Malaysia are certified HALAL by authorized Islamic certification bodies. adding also to the local environment its own set of values. Nestle developed its business internationally and became aware of the fact that food products have to be closely linked to local eating and social habit. Branding strategy is corporate. This is an integrated strategy. customers. And of course. Moreover. Furthermore. race. communities and consumers. It’s a wide area research the branding. guarantee that all products manufactured. To our opinion. Therefore. Nestle applied “think globally act locally” as well as thinking out of the box idea in their product and distribution with the help of strategic global marketing. 5|Page . Nestle believes that is activities can only be of long term benefit to the company if they are the same time beneficial to the local community.

Singapore and Indonesia. Malaysia. This is more of a 'warm' beverage rather than a 'hot' one and is a more popular version of hot Milo for children. Also very popular is the "Magic Milo" which involves adding Milo to a small amount of milk with sugar and whipping it to increase the amount of air in the milk. Milo can be stirred into steamed milk or hot water to create something similar to hot chocolate or cocoa. Malaysia. Hong Kong. Nestlé Malaysia now manufactures its products in 8 factories and operates from its head office in Petaling Jaya. Another possible use is making a normal cup of cold Milo and microwaving it for approximately 40–60 seconds. Sugar can be added to the Milo beverage. and 6 sales offices nationwide. Vietnam. Chile. Milo is also manufactured in other countries. Philippines. it is mixed 6|Page . China. The name derives from the famous Greek athlete Milo of Crotona.MKT260 Nestle Malaysia Nestlé began in Malaysia in 1912 as the Anglo-Swiss Condensed Milk Company in Penang and later. appreciating it for its subtle chocolate flavor. Milo manufactured outside Australia is customized for local methods of preparation. New Zealand. A final layer of whipped cream topped with extra Milo or chocolate sprinkles. Syria and Taiwan. Since 1962. produced by Nestlé and originating from Australia. Jamaica. it retains the gritty texture of its raw state. Nigeria. Papua New Guinea. Another popular use is to sprinkle it on ice cream. Milo can also be sprinkled on breakfast cereals. Indonesia. the Philippines. Ghana. Thailand. In Ghana. Peru. especially vanilla ice cream. with its first factory in Petaling Jaya. Japan. It was developed by Thomas Mayne in 1934. Milo is often the favored beverage for the Tim Tam Slam. Kenya. growth and expansion made a move to Kuala Lumpur necessary in 1939. Introduction to Milo Milo is a milk beverage with chocolate and malt. after his legendary strength. This gives the Milo drink a biscuit cover on top. thereby doubling it in size. India. When combined with cold milk. but many people enjoy it without the addition of sweeteners. Sri Lanka. South Africa. including Singapore. Trinidad & Tobago. Then one adds small amounts of hot water and milk in layers stirring each new layer vigorously to maintain its lightness. Milo is added to hot or cold milk to give it a malted chocolate flavor and extra texture. Colombia.

" Other countries the packaging is green and has people playing sports on the tin. and has thus gained a reputation as a 'must have' drink for the old and the younger generations. with the instructions "Add milk and sugar if desired. where the brand name is synonymous with chocolate flavored drinks: Milo has a 90% market share in Malaysia (not the often quoted 90% worldwide share of Milo consumption)[4].MKT260 with hot or cold water instead of milk. Milo in Hong Kong Differentiation between Milo 1940’s Milo tin Product Life Cycle 7|Page . Milo in Malaysia is served in kopitiams and mamak stalls offering versions such as "Milo Dinosaur" (a cup of Milo with an extra spoonful of powdered undisclosed Milo added to it). because it has a low glycemic index. "Milo Godzilla" (a cup of Milo with ice cream and/or topped with whipped cream) and "Neslo" (combined with Nescafe powdered coffee). The packaging of Milo tins in Singapore are also green and also have people playing sports on the tins. or with ice added for a cold drink. and Malaysians were said to be the world’s largest consumers of Milo. Milo is very popular in Malaysia.[5] This is because Milo was once used as a nutrient supplement when it was first introduced in the country. The commercials and taglines are "Go and go and go with Milo" and a popular commercial is 4 generations of women on a skipping rope singing "and my mum gave me Milo to go and go and go" and the line "I need my Milo Today". Milo manufactured in Malaysia is made to dissolve well in hot water to produce a smooth hot chocolate drink. It gained popularity in Singapore soon after. children participating are given small packets of Milo to eat or drink. There is an organization called "Milo Cricket" which operates in most areas by volunteers.

Nestlé has initiated a pilot with Schenker. Without compromising product quality there was a reduction of 392 000 tones of packaging material between 1991 and 2008. In this way. distances driven and fuel type used. There are varieties of each product lines for each type of products. prepared food. Nestlé's initiatives aim to improve the environmental performance of the products along their entire life cycle. Product Mix Width Beverage Milo Nescafe Canned Drink UHT Milk Nespray Neslac Prepared Food Maggi Buitoni Ice Cream Drumstick Trophy Mat Kool Cereals Honey Star Koko Crunch Cookie Crisp Chocolates Kit Kat Smarties Milky Bar Nestle Crunch The Marketing Mix of Nestle Marketing 8|Page . milk. Product Line width Nestle Malaysia product consist of 6 main aspect which is beverage.MKT260 At Nestlé. reducing energy consumption and minimizing air emissions by moving to different fuel types. Another significant step in the value chain is transport. Through internal research and development at Nestlé there have also been significant advances in the environmental impact of refrigerants and packaging. cereals and chocolates. They also will upgrade their product lines through the changing of the lifestyle form time to time. to favor the use of sustainable-managed renewable resources and to target zero waste. they apply a product life cycle approach involving their partners from farm to consumer in order to minimize the environmental impact of their products and activities. ice cream. These include sourcing sustainable raw materials. Their aim at all stages of the cycle is to use natural resources efficiently. an international logistics company. they intend for their brands to stand for environmental sustainability. to evaluate the effect of different types of transport. Nestlé invests an average of CHF 40 million a year to reduce its air emissions.

• The original Milo The original Milo contain nutritional icon on each pack reinforces the nutritional properties that consumer can get from every cup of nutritious and great-tasting Milo. patented technology and basically selling directly to consumers and this whole business is growing rapidly. We choose Milo since it is a brilliant example of where as the superior quality.MKT260 The following consideration included in our marketing analysis of the Nestle. 9|Page . creating and responding to demand for its products. adhering to and favoring the rules of free competition within a clear legal framework. • • • • Product Place Promotion Price 1. Product Product item Nestlé seeks to earn consumers’ confidence and preference and to follow and anticipate consumer trends. These are the type of Milo that Nestle have been produce. Therefore Nestlé is driven by an acute sense of performance. Malaysia also is the world’s largest consumers of Milo. Milo has been around for decades. Product item depth Milo is a very well known product and Milo also has variety of product items under the same brand which is Milo. and it is one of Malaysian favorite chocolate malt drink to everyone.

and last one is high calcium for stronger bones. It will also tantalize children senses. 3in1 for consumer convenience and better taste. 10 | P a g e . It contains ACTIGEN-E and it has 3. • Milo Wafer bar Milo Wafer bar made with layers of crispy wafer and sprinkled with Milo kibbles on top.6% of our daily energy needs (based on 2000 Kcal). It is vary by 3 types which is cereals for hunger pangs. the ready-to-drink format of Malaysia’s best-known nutritious chocolate malt beverage is nutritious and healthier in a new attractive design. • Pack Extra Nutrition with Milo A healthier choice in new design UHT pack. It contains all the nutritional benefits of Milo such as ACTIGEN-E and PROTOMALT in a convenient pack.MKT260 • Milo Fuze Milo Fuze comes in three variants and is the easy tasty way to enjoy nutritious Milo with Actigen-E and other nutritious ingredients. Milo UHT packs.

minerals and water! A mug of Milo of drink contains these nutrients. The protein needs (per Kg of the body weight) is highest when growth is rapid. childhood and adolescence. providing the right ratio of protein. as part of a balanced diet.MKT260 Product nutrition Nestlé Milo is not just any chocolate malt drink. skimmed milk. It is essential for healthy growth and development. Protein is one of the macronutrients (along with carbohydrate and fats) that is important to build and repair body tissue. the nutrient content has been improved to meet evolving demands. Sources: Protein is found in meat. Milo provides the energy required for an active lifestyle and will not be fattening. On its own. 11 | P a g e . dairy products. • • Natural Goodness ~ of malt. In growing with Malaysia. and cocoa. These calories come from the different ingredients of Milo. fats. is well-placed to fuel the action packed days of today’s children. skimmed milk. peas and lentils. mainly malt extract. ACTIGEN-E ~ a combination of 8 vitamins and 4 minerals which helps in the optimal release of energy. protein. poultry. Over the years. fish. palm oil and sugar. Nutrition in Milo Right balance in nutrition Milo provides energy (calories). The 6 basic classes of nutrients in food are: carbohydrate. The current formulation of ACTIGEN-E. Nestlé Milo stands firm in its commitment to provide every child the nourishment and energy needed every day. in combination with PROTOMALT. carbohydrates and fats. If consumed moderately. vitamins. Milo powder is nutritionally balanced. beans. There are 3 main components in each Milo product which is. • PROTOMALT ~ a malt extract with a mixture of different Carbohydrates that provides energy and nutrients the body needs. such as during infancy.

Complex carbohydrates are chains of sugar units. 12 | P a g e . What is BMR? Basal metabolic rate (BMR) is the energy used to carry out necessary body activities such as breathing. Micronutrients are those needed in small quantities (micrograms or milligrams). starch (e. It has to do with energy intake and energy output. For example. Energy output is the number of calories you use for BMR and activities. as well as vegetables oils and margarines. vegetables). Carbohydrates can be in the form of complex and simple carbohydrate.g.g. Imbalance of energy will result in weight gain and weight loss. Energy Carbohydrates supply the main source of energy for the body. lack of vitamin D lead to rickets. As fat contain higher calorie compared to carbohydrates and protein. potatoes) and fiber (e. though it helps to regulate bowel function. Atigen-E(vitamin and mineral) Here are two main groups of nutrients: macro-nutrients and micro-nutrients. grains. A deficiency of some vitamins can lead to diseases or metabolic disorders. Starches are broken down during digestion into glucose before being absorbed into the body. Vitamins are micronutrients essential to the human body. Macro-nutrients are those that are needed in large quantities (tens or hundreds of grams) every day. lack of vitamin C can lead to scurvy. Sources: Fats are found in animal and dairy products. and maintaining a heart beat.MKT260 Fats are essential component of body cells that are important for the absorption of fat soluble vitamins. Simple carbohydrates are sugars that our body can easily and quickly use for energy. These are carbohydrates. fruits. fiber and starches. excessive fat intake may also contribute to overweight and obesity problems. Sources: sugars. Energy intake is the number of calories we gain from food. protein and fats. These are vitamins and minerals. For example. regulating body temperature. Energy balance is the key to weight management. Fibers are not digested by our body.

Sources: B Vitamins are found in a variety of animal.MKT260 Calcium is an important mineral in childhood. childhood and adolescence period. The B Vitamins are needed for the release of energy from foods and some are important for red blood cell formation. It is. another good source of information to learn about the product ingredients/ contents would be from the ingredient list. sardines and anchovies with bones. breakfast cereals. breads and juices. and calcium fortified products e. 13 | P a g e . beans. It informs us what the product is made from. Protomalt PROTOMALT is proprietary to Milo powder which is a quality malt extract that provide a mixture of different types of carbohydrates that provide energy and nutrients the body needs. Did you know that besides reading the nutritional information on pack.g. bone growth is the greatest. it is important to get adequate amount of calcium at these stages of growth. So. Ingredients are listed in descending order by weight. milk. Sources: dairy milk products. General information The great choc malty taste of Milo is made from the natural goodness of malt. Based on the ingredient listing on Milo packaging. Calcium is essential for proper development of bones and teeth. important to consume adequate of B Vitamins. vegetable and grain products. and cocoa. dark green leafy vegetables. During infancy. the most ingredients in Milo is malt extract as it is the first ingredient listed on pack. soy-based foods. therefore.

the firm’s communicate wellness benefits in our beverage business. The packaging materials continue to be the main source of concern. Branding can be achieved using a company name . which will strongly influence their buying patterns.it can be applied generically or. A catchy name and distinctive packaging are vital ingredients in any brand image. But it’s not just there. but also to a lesser extent across metals and paper and broad. but the true essence of a brand identity lays in the consumer's mind i. as in the case of Milo. developing eco-efficient packaging. 14 | P a g e . And on the packaging. In a market where repeat purchases are the key to profitability. also in confectionery. Eco-efficient packaging Packaging is essential for food safety. such as quality and value for money. A company must be constantly aware of these perceptions and try to preserve and build on them through advertising and other promotions. Branding enables marketers to build extra value into products and to differentiate them from their competitors. The brand name promises the consumer particular benefits. on an individual basis. nutrition communication through to the new and existing consumers. the perceptions of the product. and providing meaningful information to consumers on recycling and disposal. and condiments. a brand name becomes paramount to a product's success. Product Packaging The Milo Nestlé’s packaging is the most direct and largest communication vehicle that the organization had with the most impressions they can deliver. mainly in plastics. A brand name is often considered by a company to be its most important intangible asset. Nestle strategy is based on optimizing materials. It also helps to avoid wastage before and after purchase by maintaining freshness for the consumer. with these expectations being built up over many years.e.MKT260 Product branding Branding is the collection of attributes that the consumer has come to expect from a product.

15 | P a g e . packaging material savings from 1991 to 2008 amounted to 392 000 tones and CHF 683 million on a worldwide basis. For example. We have reduced the volume of packaging material used per liter of bottled water by 20% over the last 5 years. Packaging Waste Recovery Nestlé Malaysia has established national waste recovery schemes for the collection. saving a huge 700 tones of packaging materials Packaging Source Reduction In 1991 Nestlé initiated a continuous review and assessment of packaging source reduction opportunities. Wherever possible they use recyclable packaging materials. Nestlé UK managed to use 30% less packaging overall. Nestlé use recycled material whenever it makes sense and it is legally permitted. for Easter 2009. This represents a saving of 44 000 tones of packaging material in 2008 alone. recycling and energy recovery. The company supports an integrated approach that favors source reduction. Nestlé has participated actively in setting up and managing these schemes. Nestlé UK replaced non-recyclable plastic with recyclable cardboard packaging in most of the 25 million Easter eggs it makes.MKT260 A key initiative in 2008 was their collaboration on PIQET. Nestlé is firmly committed to finding packaging solutions that contribute to a better environment. an important new packaging eco-design tool adopted by Nestlé. separation and recovery of used packaging. Design and technology innovations go hand in hand in order to reduce environmental impacts without compromising consumer needs. reuse. As a result.

MKT260 Information in Milo Packaging 16 | P a g e .

but nowadays Milo have been through the transformation by using faces of national athletes to attract more customers. By doing this transformation Milo will be more up to date and can build loyal customer and as well as to be more different than their competitor such as Oligo Coco which are using the same green color for their packaging. This improvement can attract children to drink Milo. Besides. Milo also contains a lot of nutrition which does not contained in the other competitor’s product such as Oligo Coco. This is because 3 in 1 Milo already has added creamer and sugar for consumer convenience. This is for the customers that do not have enough time or in rush because they only need a short time to make it. Even kids also can do it by themselves because it already complete and they do not have to add anything.MKT260 Product Differentiation Improve the packaging Nestle Milo have improve the packaging by replacing the old one with adding the interesting picture. so that they produce 3 in 1 Milo from the normal powder Milo. This Milo is very suitable for consumer that concern about healthy and on diet because cereal can avoid people from feeling hungry and contain fiber that good for digestion. Oligo Coco is just a normal chocolate malt drink and they do not have nutrition such as Milo. Milo product enhancement Milo has realized and able to fulfill customer needs. Add more ingredients To differentiate Milo from other product they have produce a healthy Milo by adding cereal in Milo Fuze. 17 | P a g e . Milo also has adding more colorful color beside of their green color which is their main color. Before this. Milo packaging only have their brand name.

In our opinion. Milo also can specify their target market based in their age and lifecycle. Milo should add some vanilla flavor in order to make their product line more variable. Milo for a diabetic patient. there’s a lot of people who were suffering the diseases. This product item is suitable for children and also adult. Other than that. they can produce their product according to their customer age. Besides produce Milo for beverages. or people in high cholesterol. is also sort of our idea because nowadays. Product recommendation For product recommendation. So that. consumer will have a lot of choices to buy Milo product and as well as positioning Milo as an established brand with a lot of choices than the competitors such as Oligo Coco and Ovaltine. Nestle Milo also have create new product item such as Milo ice cream. 18 | P a g e . For example. Milo can make their product more variety by adding new flavor. By doing this.MKT260 Add more items. Milo will be part of the compulsory product that will include in their shopping list. Milo wafer and Milo energy bar.

Wisma TNB No. Persiaran Waja Kawasan Perindustrian Bukit Raja. Jalan Delima 1/1 Subang Hi-Tech Industrial Park. Bangunan Petronas. 23. The major distribution channel include with geographically consideration with the manufacturing place situated. Jalan Anson. Place Place relates to decisions about the storing and transporting of products. Johor Tel : 07-2334500 Fax : 07-2334600/2334670 EAST MALAYSIA Sabah Branch Nestlé Products Sdn Bhd Level 4 (3rd Floor) Wisma 202018 Kuantan Branch Nestlé Products Sdn Bhd No. It’s very cost effective way for the firm’s expenses in distribution its products to targeted market. Choosing the right distribution channel (i. HEAD OFFICE UNIT Nestlé (Malaysia) Berhad Nestlé House. 41050 Klang.Jalan Skudai 81200 Johor Bahru. Effective inventory management drives down costs and enhances product quality. Selangor Tel : 03-56297000 Fax : 03-56297154 Penang Branch Nestlé Products Sdn Bhd Tingkat 12. Batu Tiga40000 Shah Alam. and also about selecting the products channel of distribution.O. 30. 10400 Pulau Pinang Tel : 04-2381700 Fax : 04-2381898 Johor Bahru Branch Nestlé Products Sdn Bhd 4th & 5th Floors. Box 162. should we sell through middleman firms or should we sell directly to the end-user) Direct energy cost pressures have eased in recent months. Selangor Tel : 03-33447850 Fax : 03-33436171 BRANCH ADMINISTRATION OFFICES & AREA SALES OFFICES PENINSULAR MALAYSIA Kuala Lumpur Branch Nestlé Products Sdn Bhd Lot 14. Selangor Tel : 03-7965 6000 Fax : 03-7965 6767 National Distribution Centre Lot 1.e. Bandar Baru UDA. 25720 Kuantan.MKT260 2. 4 Lorong Persiaran Barat 46200 Petaling Jaya. Jalan Gambut 2 P.Pahang Tel : 09-5118600 Fax : 09-5118798/5118799 Sandakan Area Sales Office Nestlé Products Sdn Bhd c/o Harrisons Trading (S) Sdn Bhd 19 | P a g e . These decisions are critical to the success of an organization.

Selangor Tel : 03-55195333 Fax : 03-55102028 20 | P a g e . 20 Jalan Tiga 90000 Sandakan. Sarawak Tel : 085-653054 / 663415 Fax : 085-661648 2nd Floor.O. Sabah Tel : 089-223201 Fax : 089-225498 Sarawak Branch Nestlé Products Sdn Bhd Menara MAA. 93100 Kuching. Piasau Industrial Estate Jalan Dtk Patinggi Hj Abd Rahman Yakub 98000 Miri. Jalan Then Kung Suk. Box 8081. Box 7010 40700 Shah Alam. Box 1319 96008 Sibu. Sarawak Tel : 084-214672 / 213064 Fax : 084-214727 FACTORIES Nestlé Foods (Malaysia) Sdn Bhd Petaling Jaya 25. Man Tong Shing BuildingTB 20. Block 4 Miri Concession Land District. Sabah Tel : 089-776365 Fax : 089-753211 Miri Area Sales Office Nestlé Products Sdn Bhd Lot 1894. Jalan Dunlop. P. Level 7 Jalan Ban Hock / Central Timur. Selangor Tel : 03-55195333 Fax : 03-55106263 Nestlé Foods (Malaysia) Sdn Bhd Chembong Jalan Perusahaan Utam Nestlé Foods (Malaysia) Sdn Bhd Shah Alam Shah Alam Complex Jalan Playar 15/1 P. Box 7010 40700 Shah Alam. Upper Lanang. Tawau.O.O. Sarawak Tel : 082-235918 Fax : 082-417066 Sibu Area Sales Office Nestlé Products Sdn Bhd Lot 480.O. Pejabat Pos Kelana Jaya 46781 Petaling JayaSelangor Tel : 03-77811822 Fax : 03-77813823 Nestlé Foods (Malaysia) Sdn Bhd Batu Tiga Jalan Playar 15/1 40000 Shah Alam.MKT260 Jalan Belia 88100 Kota Kinabalu.Jalan Tandang P. Sabah Tel : 088-243030 Fax : 088-237498 Tawau Area Sales Office Nestlé Products Sdn Bhd 4th Floor. Selangor Tel : 03-55195333 Fax : 03-55102028 Nestlé Foods (Malaysia) Sdn Bhd Raja Muda Shah Alam Complex Jalan Playar 15/1 P.

MKT260 Kawasan Perindustrian Chembong 71300 Rembau.O. promotion and distribution. these strategies must be flexible and relevant to each new generation of consumers. Nestle Malaysia are using two type of channel intermediaries to market its product which is Milo. Negeri Sembilan Tel : 06-6853944 / 6853952 Fax : 06-6853926 Nestlé Foods (Malaysia) Sdn BhdKuching Lot 844. Block 7 Plot 47.O. Block 7 Muara Tebas Land District Demak Laut Industrial Park. Since Nestle Milo is an established brand name. The primary objective for Milo is to maintain its position as the Malaysia’s number one selling chocolate malt drink brand.O. Sarawak. Sarawak Tel : 06-6853944 Tel : 082-439439 Fax : 06-6857602 Fax : 082-439097 Product positioning Having decided its corporate objectives and strategy. Box 710 [Formerly known as Nestlé Cold Storage 93714 Kuching. great care must be taken not to damage the perceptions of the product built up over decades of marketing. product development. Perak 93714 Kuching. Box 37. Lorong Bemban Bemban Industrial Muara Tebas Land District Park Demak Laut Undustrial Park. Nestlé can set marketing objectives for each of its product. but at the same time. It is convenience for 21 | P a g e . P. The two types of channel are by using retailer and merchant/wholesaler. Nestlé Manufacturing (Malaysia) Sdn Bhd P. in this case an individual product which is Milo. This will involve individual strategies for pricing. Channel function Nestle Malaysia have 8 factories and 6 sales offices nationwide. Negeri Sembilan Nestlé Manufacturing (Malaysia) Sdn Tel : 06-6853944 Bhd Fax : 06-6857602 [Formerly known as Nestlé Cold Storage (Malaysia) Sdn Bhd] Kuching Nihon Canpack (Malaysia) Sdn Bhd Lot 915. P. In order to achieve this. Nestlé has to develop a marketing strategy that will take into account all the elements of the marketing mix. (Malaysia) Sdn Bhd] Chembong Tel : 082-439439 Jalan Perusahaan 4 Fax : 082-439097 Kawasan Perindustrian Chembong 71300 Rembau. Box 710 31000 Batu Gajah.

These channel also have their own function such as transactional function (contacting. financing). promotion. negotiating. risk taking). storing.MKT260 Nestle Malaysia since both channel have a lot of advantages in high frequency of ordering. Channel structure Retailer Channe l Producer Wholesale r Channel Producer Wholesaler s Retailers Consumers Retailers Consumers 22 | P a g e . sorting) and facilitating function (researching. logistical function (physically distributing. shorter time for shipment and have high number of customers.

Combining road and rail transport also helps to optimize distribution and reduce vehicle journeys. Optimizing Networks Working with contractors and co-operating with other producers allows the free vehicle capacity of one company to be matched with the available loads of another. a software tool to assess and recommend pallet layouts. This led to a significant reduction in numbers of pallets. Paper board “slip sheets” and innovative pallet designs have also improved load utilization. and therefore vehicles and journeys. Pilot with Schenker 23 | P a g e .MKT260 Product transportation Methods have been developed to ensure that vehicles. as has the development of dual temperature vehicles enabling consolidation of deliveries of products such as ice cream and confectionery. Examples of initiatives include the development of Opal. Computerized milk-collection systems have reduced driving distances by as much as 10%. containers etc are used in the most efficient way.

they also can sell miscellaneous item such as a unique mug with Milo’s logo. hospital. Improving transportation and distribution of products from factories and distribution centers to customers and consumers leads to environmental benefits and cost reductions. or a backpack for the sporty person. to determine the environmental impact per unit of product delivered in one of their European land transport networks. Place recommendation For the place that we recommend. Other than that. fewer emissions and less waste. This represents about 10% of CO2 generated during the manufacturing process and is equivalent to emissions released by a standard passenger car travelling for 100 kilometers. specific Nestlé guidelines highlight opportunities and best practices related to managing transport resources. Therefore. Milo can build their own shop in a mall or any other strategic place whereby the shop only sell Milo’s product. Promotion 24 | P a g e . school and any other place. It results in less noise. a key chain. The results of this study showed that transport generated on average some 15 kg of CO2 emissions per ton of product delivered. less congestion. a school bag complete with the stationary for children. airport.MKT260 Nestlé initiated a pilot with Schenker. less fuel consumption. one of the leading international integrated logistics companies. Besides. 3. Milo’s can put their vending machine in a place that always full of people such as shopping mall.

radio. With the increasing fragmentation of traditional mass media choices. Nestle are also using other form of advertising such as non-media communication or advertising. Those are the tools that used by Nestle to persuade customer and build customer relationship with their product. priced or distributed. sponsorship activities. A differential advantage is a set of unique features of a company and its product that are perceived by the target market as significant and superior to the competition.MKT260 Few good or services. Promotional strategy is a plan of optimal use of the elements of promotions that is used by Nestle to promote Milo. public relations and sales promotion such as giving freebies with good. Advertising 25 | P a g e . cannot survive in the marketplace without effective promotion which is a communication by marketers that informs. Beside the promotion or communication above. As example. Some of the ways that Nestle have done are by participating exhibitions. excellent service or a feature not offered by other competitor. Nestle carries their promotional effort trough traditional mass media such as television. Nestle does not emphasis too much in attracting competitors customers since 90% Malaysian consume Milo. Such features can include high product quality. The main function of Nestle promotional strategy is to convince target customers that their goods and services offered provide a differential advantage over the competition. They also effectively communicate this differential advantage through advertising featuring Malaysia top national athlete such as Datuk Nicol Ann David. Nestle also sending their advertisements to consumer in many new and innovative ways. Milo convinced their customer that children will be more energetic if they consume Milo. no matter how well developed. newspaper and etc. low prices. or reduced price offers on Milo product. such as with interactive video technology located in departmental stores and supermarkets and through Internet Web. persuades and reminds potential buyers of a product in order to influence their opinion.

It is established so that consumer can easily find information about their particular product and also as a medium for consumer to leave their suggestion in order for Nestle to improve their product. • Outdoor media Nestle Milo is well known for their commitment and sponsorship efforts for any sport events in Malaysia especially for any primary and secondary school.milo. Nestle also have their own website for each product that they sell (e. Nestle also have their own website for each countries that is under Nestle including North Korea and Israel.com. television.g.nestle. They normally open a booth in every event they sponsored and giving out free Milo drinks.com and there are more than 100 countries are registered under this website. magazines. • Printed Media 26 | P a g e . or the Internet). The communication is not just about advertising only. radio.my ) which is estimated around 30. Also shown in the commercial break is the boy’s parent provide Milo for their children. Uniquely. and the communication often creates a creative slogan in order to make sure consumer will remember Milo.MKT260 Advertising is defined as any paid form of product information that is delivered to potential customers in a non-personal way (such as through newspapers. It is really effective since it can instill relationship between product and consumers. www. This strategy is to attract the consumers especially children and parents to buy this product.000 products worldwide. Milo sponsors almost all type of sport event and Nestle also collaborate with Ministry of Sports and Youth in order to organize national and international sport event. Type of Advertising Media used by Nestle • Television Nestlé applied this source for Milo product. • Internet Nestle have their own website which is www. billboards. which in the commercial break is about a boy or a girl that are more energetic in their daily live if after they consume Milo.

27 | P a g e . Posters are usually distributed to all wholesaler and retailers who are selling Milo which can help people to recognize the places that do sell Milo. Nestle normally promotes Milo in children’s magazine since they are the main target market for the product and Nestle also sponsor sport column in the newspapers. magazines as well as posters. Effects of advertising Promotion The pictures below show some example on how Milo’s promote their products to the customer.MKT260 Printed media includes newspapers. The advertising normally sports public figures such as Datuk Nicol Ann David in order to attract sportsmen and children who are involves in sports.

they will get 3 edition Raya cards with different design and this promotion valid on the period that have been stated. • FREE 1 MILO sporty tumbler with every purchase of MILO 1kg pack. If the customers buy 1 KG pack of Milo. Segmented and Target Market A market segment consists of a group of customers who share a similar set of wants. This kind of promotion will attract all the kids and even the adult to buy it. • Buy MILO 400g free 50g This promotion is for customer that likes to save their money. they will get 1 Juara Cup. The marketer does not create the segments. This is because Milo’s have make a promotion which is they will get free 50gm with every purchased of Milo 400gm pack. This is because the tumbler is easy to carry everywhere and it is very fit to sporty person that have to move a lot. • Buy Milo 1 Kg free 1 Juara Cup This is the second example on how Milo’s promote their product. the marketer’s task is to identify the 28 | P a g e .MKT260 • Free Raya Cards for any 6 cans purchase special If the customer buy 6 cans of Milo. This promotion will attract sporty person to buy it.

People with blue collar jobs can be targeted by telling them that the Milo 29 | P a g e .MKT260 segments and decide which one (s) to target. The company can create a more fine-tuned product or service offering and price it appropriately for the target segment. and it will also have a clearer picture of its competitors. they will purchase. For older people it already has clinical nutrition. The company can more easily select the best distribution and communications channels. Our market segment is based on our observation. • Cities: Consumption of Milo is more in the cities as compared to the villages due to various factors such as income and education level. Nestle should focus more on making Milo available in the every places where people are willing and able to buy. analysis as well as we is in Nestle shoes. If they are convinced that the Milo will be good for their families. But Nestle can segment the market on the basis of season. which are the companies going after the same segment. Demographic Segmentation: • Age: Nestle can easily target various age groups. For children it can introduce Milo with additional nutritional contents such as vitamins and minerals. • Gender: It will be very beneficial to target women as they usually shop for their family. In hotter regions the consumption pattern doesn’t change much. Geographic Segmentation: • Regions: Commonly people prefer to drink Milo throughout the year. The consumption of cold Milo goes down during the rainy season as people prefer to have hot Milo. • Income and occupation: People will buy Milo when they have enough monetary resources. 2. The customers can be classified according to the following variables: 1. Segment marketing offers several benefits over mass marketing. It just needs to get its product known among these people. The most important of these groups are children and old people. Nestle should target people in the higher income groups.

Promotion Recommendation To make Milo being well-known all over the country. they should make a lot of promotions which is dissimilar with the promotions that they have done before. Besides that. Such people can be easily targeted as they are very health conscious. Nestle can urge these people to buy Milo which is rich in nutrition. we have all agreed that Milo can wider their promotion by making a contest or a lucky draw. 4. • Personality: People who are outdoorsy and are involved in sports can also be targeted by tagging the brand with some sport celebrity. and so much more. Domestically Nestlé’s Milo manufactured finished products may be force to switch to offshore sourcing of certain 30 | P a g e . Price The firm has several options for addressing the price. for sure they will but it again and again. If they interested with one or all the product. They should combine all their products in one pack that include mini pack of Milo powder. • Psychographic segmentation: Social class and life style: People belonging to the higher social classes tend to spend more on luxuries as compared to people in the lower classes. Milo energy bar. They just need to put a lucky number behind the packaging and the end of the month. After we have been through the discussion. Milo can make a different packaging style. Life cycle stage can also be important because families with younger kids will want to buy Milo. By doing this style of packaging. Milo fuze. the will pick a lucky number and the lucky customer can redeem their price at the nearest Milo’s branch. Milo can promote all their delicious product to the customer so that they are able to try all the product that produced by Milo.MKT260 will help them in their daily routine. 3. This will increase the profit.

An extension or ethnocentric pricing policy describe that the per-unit price of an item to be the same no matter where in the world the buyer is situated. Another factor is a through audit of the distribution structure in the target markets. The organizations revenue represented that the food and beverage like Milo’s product gain more return on investment than other. It represent that the potential sustainable growth market for the firm. they did not fully informed about company experience when they set prices. long-term pricing framework. Nestlé’s executive level monitor consciously on the freight and import duties according to the Malaysia market. This type of approach is sensitive to the local market.MKT260 component to keep costs and prices competitive. which establishes the initial price for a product and the intended direction for price movements over the product life cycle. Nestle Malaysia currently practicing penetration pricing to market Milo which is a way where Nestle charges a relatively low price for a product (Milo) initially as a way to reach the mass market. Penetration pricing and Status quo pricing. The management level consciously and systematically seeks to ensure that accumulated national pricing experience is influenced and applied wherever relevant. 31 | P a g e . Price strategy Price strategy is a basic. The disadvantage facing in the company is local managers are free to price in the way they see fit. It consists of 3 type of pricing strategy which is Price skimming. The price harmonization from headquarter is necessary in dealing with international accounts. The firm utilizing independent distributors were the most likely to apply polycentric pricing. Adaptation or polycentric pricing policy allows subsidiary or affiliate managers or independent distributors to establish whatever price they feel is most desirable in their circumstances.

The marketers need to have an understanding of trends and changes in the market place to set a goal. demand and changes in Product Life Cycle. If Nestle Milo have decide to go for profit maximization objective. they must be able to afford large sum of investment. So they have to require a careful analysis before setting the price.MKT260 Setting the right price Establish price goals Estimate demand.yy Fine-tune base price Establishing pricing goals Marketers have 2 choices whether to use profit oriented profit maximization or satisfactory pricing. 32 | P a g e . It is easy to follow competitors pricing but they may not have the best considering cost. costs. and profits Choose a price strategy High $ Skimming Status quo Penetration n Low $ Evaluate results Set price $x.

costs and profit. costs and profit. For example. If they set higher price. Nestle Milo have to estimate demand. So they need to estimate the profit that they will earn. It is important for Nestle Milo to know the corresponding cost for each product price. After the pricing goals have been established. they will choose a good pricing strategy that will give them direction of price movements over the Product Life Cycle. the competitors also will influence the pricing strategy. Nestle Milo are aware about higher price. determine level of price and how much market share they will get. they have to produce a good quality of Milo. Besides that. if Nestle Milo introduces a new product that same with competitors. the price will be restricted and close to the price of competitors. Unless. Pricing Tactic Diagram 33 | P a g e . Choose the price strategy When Nestle Milo has decided the product price. Nestle Milo can differentiate and convince consumers. they can set the higher price for the product.MKT260 Estimate demand.

 Functional discounts 34 | P a g e . or a marketing intermediary in return for prompt payment of a bill. This is to avoid bad debt. they are receiving a quantity discount.  Cash discounts Cash discount is a price reduction offered to a consumer.MKT260 Pricing tactics  Quantity discount When buyers get a lower price for buying in multiple units or above specified dollar amount.

It shifts the storage function to the purchaser. It is both a pricing tool and a promotional device.  Uniform delivered pricing If the marketing manager wants total costs. flat freight charge. is called a functional discount or trade discount.  Seasonal discount Seasonal discount is a price reduction for buying merchandise out of the season. to be equal for all purchasers of identical products.  Promotional allowances Is also known as trade allowance which is a payment to a dealer for promoting the manufacturer’s products. Seasonal discounts also enable manufacturers to maintain a steady production schedule year-around. such as wholesaler and retailer. The farther buyers are from the sellers. the more they pay. perform a service or function for the manufacturer. Functional discounts vary greatly from channel to channel. the firm will adopt uniform delivered pricing or “postage stamp. 35 | P a g e .  Rebates A rebate is a cash refund given for the purchase of a product during a specific period. This compensation.MKT260 When distribution channel intermediaries. depending on the tasks performed by intermediaries. they must be compensated. typically a percentage discount from the base price. Geographic pricing  FOB origin pricing FOB is “free on board” is a price tactic that requires the buyer to absorb the freight costs from the shipping point. The advantage of a rebate over a simple price reduction for stimulating demand is that a rebate is a temporary inducement that can be taken away without altering the basic price structure. the seller pays the actual freight charges and bills every purchaser an identical. including freight. With uniform delivered pricing.

regardless of the city from which the goods are shipped.MKT260  Zone pricing A marketing manager who wants to equalize total costs among buyers within large geographic areas. the seller designates a location as a basing point and charge all buyers the freight cost from that point. The manager may use this tactic in intensely competitive area or as a way to break into new market area.  Basing point pricing With this tactic. The price will be divided into segments or charges based on the zone that given.  Price lining 36 | P a g e . the seller pays all part of the actual freight charges and does not pass them in the buyer. but not necessarily all of the seller’s market area which will may modify the base price with a zone pricing tactic. Other tactics  Single price tactic A price tactic that offers all goods and services at the same price ( or perhaps two or three prices)  Flexible pricing A price tactic in which different customers pay different prices for essentially the same merchandise bought in equal quantities.  Freight absorption pricing In freight absorption pricing.

they need get raw material such as cocoa from the cocoa supplier.  Bait pricing A price tactic that tries to get consumers into a store through false or misleading price advertising and then uses high pressure selling to persuade consumers to buy more expensive merchandise. Factor Affecting the Pricing Cost  Product To produce one product.  Odd-even pricing A price tactic that uses odd-numbered prices to connote bargains and even numbered prices to imply quality. 37 | P a g e .  Unbundling Reducing the bundle of services that comes with the basic product. we need a good raw material.  Consumer penalty An extra fee paid by the customer for violating the terms of the purchase agreement. it also will affect the price of Milo because the Milo’s cost of production will also increase.MKT260 A price tactic in which a product is sold near or even below cost in hope that shoppers will buy other items once they are in the store. If the supplier increases the cocoa price. For Nestle Milo.  Two-part pricing A price tactic that charges two separate amounts to consume a single good or service.  Price bundling Marketing two or more products in a single package for a special price.

If a product has a high demand. they also will determine the geographical factor.MKT260  Promotion To make Milo more well-known all over the world. newspaper and so much more. All the producers will ‘fighting’ with each other to make their product more well-known or more favorable.00 but in East Malaysia. The cereal will increase the cost of production and at the same time. Because of competition. they sell it at RM12. they need to make a lot of promotion and using different way such as advertising. The competitors will start to offer a discount or they will offer bargain price. As a result. Milo’s sell the 3 in 1 Fuze at RM12. That is why quality factor can affect the price of Milo. they add some cereal in Milo 3 in 1 Fuze. they will increase the price of Milo’s product. For example in West Malaysia. it will attract other producer to produce the same or even better product. the price of Milo will also increase.50. Quality To make Milo more variety and more interesting to buy. These promotion activities will cost a lot and sometimes. Competition Different kind of product will have different level of demand from the communities. through television. This is because the transportation cost to East Malaysia is very high compare to West Malaysia. the price will be change. Milo need to pay high for the individual who involves in this promotion activity. For example. Price recommendation 38 | P a g e . And to cover the money that they have spent. internet. there will be a lot of competitors and competition. they will make something that can increase their product quality.  Place To set up price for Milo’s product.

A SWOT analysis analyses the internal factors that may influence the success of a business. they have to make sure that the quality and the quantity are suitable enough with the price. The initials SWOT stand for: Strengths Weaknesses Opportunities 39 | P a g e . This pack is affordable whereas not only the high income persons who are willing to buy it but people from low income are also able to buy. Milo should make a good pricing strategy. If they want to put a high price for the particular product.T Analysis for Milo We are going to produce a SWOT analysis to find out how effective Milo is operating and what internal factors may influence its success.MKT260 For the price. they also can do the packages which contain the chosen product in one pack and they will set the price for the pack in a moderate value. Generally we can conclude that Milo are not bias and are suitable for all level of person.W. By doing so. Other than that. S. This is also known as eco pack. consumers can make a good perception for the company who are concern with the society.O.

* Unique selling point. A PEST analysis analyses the external environment in which an organization operates and identifies how 40 | P a g e . * Part of Nestle (reputation) funds available for re-launch. * Big sales in other countries. shapes and type. pouches. * Value for money. The purpose of the PEST analysis is to analyze the organization (Nestle Milo) operates and to identify how it may influence marketing decisions. * It is available in different sizes. etc) Weaknesses * Not enough diversity in flavors * Packaging (design of tin + labeling) PEST Analysis We are going to produce a PEST analysis to find out what external influences may be affecting the product (Milo) and to what extent to which customers decide to buy them.MKT260 Threats Here is a SWOT analysis on Milo: Strengths * Focusing only on chocolate energy drink. * Promotion/advertising done in other countries. cans. energy drinks) * Well known successful brands as competitors * Competitors could use aggressive marketing tactics cut prices/increase promotion * Competitors bring out similar products * Competitors have diversity in packaging (bottles. * Widely available Opportunities * Increased media available (mobiles/internet) * Increased fitness industry * Increase awareness of health and fitness * Sponsorship (through sporting events) Threats * Competitors (hot chocolate.

Social Factors Social trends are important because they have a direct influence on the demand for particular types of product. taxes. Technological Factors Development in technology gives rise to new products and market opportunities. Here are the advantages and disadvantages of using a PEST analysis: Advantages * Outlines government law on businesses * Can be compared to previous PEST analysis therefore changes in the market may possibly be anticipated 41 | P a g e . Economical Factors Consumer spending may be controlled by a range of economic factors such as income levels.MKT260 it should influence marketing decisions. including creating or reducing demand for particular products and services. e. inflation.T stand for: Political Economical Strengths Threats Political Factors The actions of governments can have major effects on business and markets. exchange rates and mortgage rates.S. unemployment. the rapid growing use of computerized reservations systems. The initials P.E.g.

advertising standards. it changes the price you end up paying) * Taxes (if they go up so will the costs for consumers) * Recession (people have less disposable income – would they buy Milo?) * Inflation (prices go up for the company and for the consumer) Social * Society more aware of healthy lifestyle/rise in fitness industry * More focus on leisure time * More disposable (can afford to buy luxury goods) income * Fashion (could Milo be the next fashionable drink) 42 | P a g e . consumer protection.MKT260 * It indicates whether business has improved or not Disadvantages * May be erroneous * Expensive (takes time to produce) * Problems in the PEST analysis cannot be rectified as they are all external issues Here is a PEST analysis on Milo: Political * Stay within the law (being aware of legislation health and safety. trades description * Restriction on imports * Government back ‘Milo’ as an energy drink Economical * Exchange rates (what are they here/abroad. If your buying from another country and the rates differs.

MKT260 Technological * Advanced in technology change product/packaging/flavors * Advance in science (add to Milo formula more energy/healthier) * Advances in production technology (more efficient + better quality/ less staff required = cheaper for Nestle = cheaper for customers) * Improved media/communication internet/mobiles etc. Corporate Social Responsibility The period under review posed considerable challenges to Milo. The Milo Fuze drink range also continued to grow in popularity and demand due to its attributes of convenience and nutrition for young adults. Milo products maintained its strong market share and the ubiquitous beverage remains a perennial favorite amongst Malaysian consumers. attributable to the sharp increase in commodity prices in 2007 and the introduction of Private Label competitors. and sponsorship programmers for the development of grass root sports continued unabated. However. as part of the commitment to build a healthier society through sports. which included:     2008 Le Tour de Langkawi 2008 SEA Junior Table Tennis Championship 1st Asian Indoor Hockey Championship Milo International Junior All Stars 43 | P a g e . Milo Gold nutritious chocolate malt drink was launched. further strengthening the brand’s nutritional image amongst its consumers by offering a complete Milo drink with more milk and nutrition. Some 200 events were held at both the local and international level. The brand continued its strong legacy of sports development. The highlight of the year was a new communications campaign. During the period under review. which emphasized the nutritional benefits of Milo chocolate malt powder under the header “10 Reasons Milo Does More for Your Child”.

Depending on each Nestle R&D team specialist. analysis. producing confectionery here involves a freedom that means your day doesn't follow routine. Milo also supported the Malaysian 2008 Beijing Olympic contingent by being the Official Nutritious Chocolate Malt Drink of the contingent. Nestle push limits. various youth development programmers organized by the Malaysian School Sports Council.MKT260   Tenpin Bowling Championship Milo International Junior All Stars International Squash Championship Local support included the National Schools Sports Championships. The global breadth of the firms networks both inside and outside nestle Research Center (NRC) give their scientists a unique working environment. 44 | P a g e . the largest Malaysian contingent in more than five (5) decades. this might mean researching and developing new process technologies or renovating existing products and technologies. Nestle Research and Development Based at Nestle Product Technology Centre in York. the scientist have access to the collective knowledge of the rest of the R&D Network and the whole Nestle group. just since Nestle are here to help the consumer which is you. as well as many opportunities to work with leading scientists in universities and research institutes worldwide. In addition to the eight scientific department’s specializing in highly focused disciplines. Ministry of Youth and Sports and National Sports Association. Olympic Council of Malaysia. They comprise of quality ingredients as well as incredible amounts of passion from all who make them. Nestle Malaysia join the various international teams which are together responsible for creating the new confectionery products and processes that will guarantee Nestlé's Malaysia future success. Malaysia was represented by 33 athletes. All in all. blend technical curiosity with professional expertise and work with confectionery at a molecular level. development and a huge amount of hard work and commitment. Each product involves research.

and clearly defined the direct role and responsibility of the Center in Nestle future. To lead into 21st century. The role of NRC within Nestle is pivotal in helping fulfill Nestlé vision of making good food for good life. but also as the world leading nutrition. This decision firmly positioned nutrition as a major driver for the Nestle Research center. good life”. Conclusion As the conclusion. NRC established the scientific knowledge base for Nestle. Health and enjoyment are the elements of wellness and well-being and the NRC is playing an important part in bringing precisely these qualities to consumers. It accumulates know-how in support of all sectors of activity and is the hub for all nestle R&D network. the Nestle Research Center is universally recognized as one of the world leading laboratories in the food and life sciences and as definite leader in several region. health and wellness company as embodied in the corporate logo. “good food. T recognized the scientific challenges in this area. Nestle management made the strategic decision to position Nestlé not just as a trusted food company. This change responds to the modern consumers need and desires for food that offer both enjoyments and nutritionally proven health benefits at all stages of life. brief interview should conduct with 45 | P a g e . we believe that the best way to research Nestle strategy in Malaysia is to try and contact Nestle and perhaps.MKT260 Opened in 1987. Today. Nestle has a well established reputation for excellence in research on food and nutrition that has benefited consumers for over a century.

It is also an umbrella name for. Although Nestle Milo is very established in Malaysia which 90% Malaysian consumer Milo. The efficiency and high frequency in distributing Milo nationwide has been a convenience for consumer since they can buy it easily at any store such as Mydin Mart. cheap.MKT260 the global brand such as Nestle. It is very competitive since the price is high in quality and most of the consumer does not thinking too much about the price. Nestle is a brand. But again we think it is differs from one region to another. TABLE OF CONTENT No 1 Title Acknowledgement Page 1 46 | P a g e . like Maggi for example. Carrefour and any convenience shop. but Nestle never take it for granted. Nestle also never run out of idea and they always introduce new Milo product for the customer convenience. Nestle shares its name with all its products. brand name for the company and family name for all nestle products in the market. The marketing channels that have been used by Nestle to distributed Milo are also one of the key successes of the product. for instance Nestle Milo or Nestle Nescafe. Unlike P&G or Uniliver. I think wider marketing strategy is universal across the globe. Nestle push their R&D team in order to make sure the product is up to date and attractive to stand out from competitor. Nestle also is a product for everyone which suitable for all income level since the price that set by the company is affordable and perhaps. This is instance part of their branding and their wider marketing strategy.

E.W.S.O.T Analysis P.T Analysis Corporate Social Responsibilities Nestle R&D Conclusion 2 3 4 5 6 6 8 9 19 25 31 39 40 42 43 45 47 | P a g e .MKT260 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Executive summary Introduction to Nestle Nestle Corporate Philosophy Nestle Marketing Strategy Nestle Malaysia Introduction to Milo Product Life Cycle Product Place Promotion Price S.

You're Reading a Free Preview

Download
scribd
/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->