Professional Documents
Culture Documents
De La Salle University-Manila
2nd Term, A.Y. 2018 - 2019
In partial fulfillment
of the course
In MARKDIS K31
Submitted by:
Abcede, Aliya
Bangalan, Naaman
Cata-al, Reeana
De Castro, Celina
Hernandez, Katrina
Nunez, Victor
Submitted to:
Paula Nicola De Asis
April 4, 2019
I. Launch Objectives
1. Why will the manufacturer launch the new item? Take the manufacturer’s
viewpoint on this.
Nestle will be launching the Milo Cereal Bar to provide kids and teens with a
ready-to-eat snack version of their favorite cereal brand. It will also be an opportunity for the
brand to expand its reach and market as they venture into a different category. According to
Rappler, Milo is the fourth most purchased brand in the market with an 86.2% penetration hence,
solidifying its brand footprint in the market (2013). Through the introduction of the new Milo
Cereal Bar, it will provide a chance for the brand to diversify and tap into a different category.
The company could expand their market by not only targeting kids and teens but also young
adults. Since the Milo Cereal Bar is a ready-to-eat snack, it can also be a go-to snack for college
students and young professionals with busy schedules and lack time to prepare their own snacks.
They can eat the Milo Cereal Bar on their way to school/work or during breaks because the
product is a handy snack.
• What is the objective of the product in the category (increase penetration, average weight
of purchase, frequency)?
The cereal bar category is a relatively new segment in the market, therefore the objective
of the Milo cereal bar is to successfully penetrate the market and eventually become the market
leader of cereal bar category. Although the cereal bar segment is a new addition to the Philippine
market, it already has prominent household names like Nature Valley and Quaker Granola Bars.
Milo cereal bar was only launched last November 2018 which makes it a relatively new product.
However, Milo could utilize its position as one of the most distinguished brands in the market in
order to penetrate the category and establish itself as a viable competitor.
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• What are the objectives of this launch? What will be the key performance indicators
(KPI)/measures?
The objective of this launch is to influence the target market to try the new product
offering, Nestle’s Milo cereal bar. Since it is a relatively new product category, it is best that the
main focus of this launch is to capture a solid target market to build a following. Aside from that,
we would like to convince the loyal consumers of Milo to purchase the new form of the brand
which is the cereal bar. This may be done by putting up advertisements as an introductory move,
partnering with influencers to attract the target market, and having in-store promotions to engage
consumers. The key performance indicators would be the increase in sales, profits, and number
of repeat buyers.
Quantitative Objectives:
1,736,651,542.24
Qualitative Objectives:
1. Establish Milo Cereal Bar as the go-to brand in the cereal bar category
2. Increase the appeal of cereal bars to the public
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large amount of energy for everyday activities and require high energy foods to fuel up their
minds and bodies (Harvard Health Publishing, 2018). Moreover, the younger target market may
be reached through parents, particularly mothers, who are responsible in buying the snacks for
their child. The advantage of Milo cereal Bar over other snack options include energy on-the-go
whilst providing enough nutrition. These are factors that parents aged 30-45 consider in buying
snacks for their young ones. Over the years, Milo has developed a range of nutritious products to
help give consumers the energy they need, when they need it. Students and young professionals
may purchase the Milo cereal bar when they need quick energy but do not have time for a meal.
• What are the needs of category users? How will the new product meet their needs?
With a rise in health consciousness, Milo introduced their cereal bar to satisfy consumer
demand for healthier snack options. Today’s consumers are interested in health and convenience,
and the Milo cereal bar can meet their needs at an affordable price point. Skipping breakfast is an
everyday occurrence for consumers who do not have enough time to sit down and eat in the
morning (Smith, 2018). Milo cereal bar can be consumed as a breakfast substitute and can be
eaten on the way to school or work. Through highlighting the cereal bar’s ability to boost energy
and provide a good source of protein while saving time and money, Milo can attract shoppers
who have active or busy lifestyles.
Positive drivers include the category’s multipurpose appeal and on-the-go convenience.
To attract consumers for the Milo cereal bar, aside from advertisements, they can also do a joint
promotion with Bear Brand milk as an introductory strategy for the brand. The brand will offer a
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product bundle which includes the cereal bar and the milk, offered at a discounted price. With
this, Milo aims to keep the consumers delighted because of the savings. Both products being
under the same company, Nestle, will lead to an increase in sales for both brands. The company
could also have a promotion wherein a free Milo cereal bar is included when the consumers buy
the regular Milo cereal. By doing that, the consumers could have a free sampling of the new
Milo cereal bar and could result to repurchase.
• What are their barriers to using (or continuing to use) the brand?
The lack of product innovation and expanding options from competing categories may
challenge the sales of the Milo cereal bar. Attracting the attention of consumers away from
competing offerings will require Milo to emphasize and enhance its nutritional positioning
(Bloom, 2013). Milo competes with a wide variety of other health-focused snack options. Their
cereal bar is only recently gaining traction in the mainstream market as compared to
long-established snack sub-sectors with more potential to attract consumers. While sales are
growing, cereal bars still comprise a much smaller market compared to most leading snack
categories. Health concerns related to sugar content in cereal bars and related conditions such as
obesity also pose a threat to the market ("Consumer Trends: Snack Bars", 2014).
• What channel/s do your target market frequent? Where and how do they buy?
The cereal bar market is segmented by the distribution channel into supermarkets,
convenience stores, wholesalers, specialty food stores, online retailers, and others. Such stores
offer a convenient, healthy, and affordable snack to their consumers who mainly represent larger
households with children. With a share of more than 50%, the supermarkets' segment has the
highest number of sales ("Global Cereal Bar Market - Growth, Trends, and Forecasts", 2017).
With a broad retail distribution that encourages both planned and impulse purchases, Milo can
effectively cater to their target market. Students and young professionals usually go to
convenience stores at least once a week. They immediately know what they want to purchase and
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leave the store as soon as they have bought what they needed. Although many typically go for
single item purchases, they are more likely to buy on impulse. Parents, particularly mothers,
typically shop at large store formats. They go shopping at least twice a month on paydays to buy
in bulk and replenish their pantries ("From Carts to Baskets: the New Normal for Filipino
Shoppers", n.d.).
• To what extent will the new product concept cannibalize on one’s own product portfolio?
Milo cereal bars would likely not cannibalize from other products from the portfolio as
each product has different key features about them. It has its place as a filling snack that can
provide energy and satisfy hunger versus a drink that provides energy. Milo cereal bars would
then ideally be able to gain market shares and convert others who already consume cereal bars to
buy Milo instead as it would have the same original flavor from the drinks that is familiar to all.
• Which channels will you place your new product that will help achieve objectives on sales,
penetration, and distribution/availability?
Channels for Milo cereal bars for the target market would ideally be small store formats
such as convenience stores. Since Milo offers their cereal bars as individually-wrapped snacks,
having their product in a small store format would be ideal for consumers who purchase snacks
in small quantities or on impulse. With this in mind, Milo cereal bars should be strategically
placed in convenience stores to spark these impulses. Placing it near check-out counters and
other strategic areas would be ideal to gain the curiosity of customers. Another ideal channel for
the Milo cereal bar is the large store formats, reaching out parents who purchase snacks for their
children.
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• Explain how you came up with your target channels using the assumptions you made in
the channel prioritization tool.
Based on the assumptions we made in the channel prioritization tool, our product which
is the Milo cereal bar should be more tailored towards small store formats such as convenience
stores. As mentioned in our previous statements, Milo cereal bar is a go-to snack which suggests
an impulse buying behavior. According to Paulo, consumers have a high tendency to purchase
snack foods on impulse which consists of decisions that are automatic and habitual (2013).
Additionally, children can be reached through their mothers who are the primary shoppers in
their households. To cater to mothers who generally shop in bulk, Milo can also target large store
formats ("Moms' Shopping Habits and Their Path to Purchase", 2018).
V. Channel 5P Plan
Objective To penetrate the cereal bar market in the convenience store industry.
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combination
for on-the-go
individuals.
Table 5-1: 5p plan for Small Store Formats
Objective To penetrate the cereal bar market in the large retail channels.
Milo Cereal P23 ● Placing the Milo ● To promote ● Stand alone shelf in
Bar Cereal Bars their cereal the shape of a cereal
together with the bars, Milo can bar
6 Bar Pack P130 products of Milo conduct in-store ● Milo Cereal Bar
will provide an samplings to stickers would also
10 Bar Pack P220 opportunity for entice all
the product to be shoppers to be attached at the
introduced to the purchase their pushcarts and
loyal consumers product. baskets
of Milo
● a free taste booth
● A stall can also would also be
be placed near the located inside the
counter. Even
store
though the
prospect buyers
are already
finished with
their shopping,
they can still grab
their Milo Cereal
Bar on the way to
the counter or
while waiting in
line.
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Table 5-2: 5p plan for Large Store Formats
● Who do we sell to? How will you sell the product? How will you manage the
channels?
The target market of the Milo Cereal Bar would be young adults from the age of
18 - 25 who belongs to the socio-economic class B and C. The means of distribution will
mainly be done through small format distribution channels specifically convenience
stores. However, large format distribution channels like supermarkets will also be an
avenue for distribution. The shoppers here are mostly parents from the age of 28-45 who
belongs to the socio-economic class B and C. They are the ones responsible in choosing
the snacks of the younger target market.
Convenience Stores
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● Convenience stores ● Single Bar (P25) ● Milo Cereal Bar could
are the go-to channels be placed in the
for snacks checkout counter to
● “Fuel on the go” increase impulse
tagline purchase.
● Milo Cereal Bar ● It will also have its
would be positioned own shelf stand right
as an energy snack for beside the snack
on-the-go individuals. section.
● Will include a Bear
Brand sterilized milk
drink as an
introduction
promotional strategy
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shipments needed to distribute the products to selected retailers and wholesalers in the
country.
3. Retailers/Wholesalers - These channels shelves and promotes the product within their
stores and entices customers to buy the products.
4. Customers - Customers are the final stop of the distribution model in which they buy the
product for their consumption.
Numeric Distribution
When Milo Nuggets were introduced in the Philippines, it became popular because of
social media and the availability of product in stores, particularly CVS. For the launch of Milo
Cereal Bar, since the means of distribution will mainly focus on small store formats, 3163 or
100% of the CVS will distribute the product, Milo Cereal Bar, in singles since the frequent
shoppers here are students and youngs professionals who are most likely to buy snacks on the go.
Moreover, since mothers are part of our target market, we will also be distributing our product to
552 or 80% of large store formats (Single Bar, 6 Bar Pack, 10 Bar Pack).
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VII. Shopper Communication
● Big Idea
The Big Idea of the shopper’s communication associates with the product’s tagline “fuel
on the go” . The tagline of the Milo Cereal Bar is really simple and straight to the point, which is
an advantage since shopper’s would easily understand the purpose of the product. The Milo
Cereal Bar is a product variant under Nestle’s Milo that is definitely a well accepted and highly
patronized brand at present. Consumers are familiar with the brand & the product taste and has
gained a number of loyal consumers already. The Milo Cereal Bar is a tasty breakfast/snack bar
which is fortified with Activ-Go for the slow release of energy. It is made with whole grain, with
no artificial colors or flavors, and a source of calcium and iron. Although the product was mainly
produced for children, the group believes that it can be beneficial for a wider age range and could
extend to all students and even to the young professionals. The Milo Cereal Bar can be an
on-the-go snack for people who have active lifestyles and hectic schedules and need a good
source of energy for their agendas.
MINDSET Young adults Young adults looking for a After evaluating all the
looking for a quick better alternative that will alternatives, young adults will
snack. satisfy their needs. choose a product with the greatest
value to them.
CALL TO “Boost your day! “Perfect pair to Jumpstart “Time to fuel up!
ACTION #FuelOnTheGo” your day! #FuelOnTheGo” #FuelOnTheGo”
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LOCATION ● Window ● Snack Shelf ● On top of the check-out
● Entrance ● Beverage Chillers counter
● Space at the checkout
counter where shoppers
place their items
Table 7-1: Small Store Format Path to Purchase Strategy
Key Visuals:
A. Awareness
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B. Consideration
C. Purchase
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LARGE STORE AWARENESS CONSIDERATION PURCHASE
FORMAT
MINDSET Shoppers have a Shoppers looking for a After evaluating all the
preconceived list of better alternative. alternatives, the shoppers will
products that they want to choose a product with the
purchase. greatest value to them.
CALL TO “Get ready to fuel up with “Fuel up with Milo!” “Energy pabaon for on-the-go
ACTION Milo!” Champions!
Free sampling / food #FuelOnTheGo”
demo
POSM ● Push Cart sticker ● A stand-alone free ● Stand alone shelf in the
taste booth shape of a cereal bar.
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Energy Bars are
located
Table 7-1: Large Store Format Path to Purchase Strategy
Key Visuals
a. Awareness
b. Consideration
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c. Purchase
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ADVOCACY
The product’s advocacy will be shared by both small and large store format. In line with
the big idea of the brand which is “Fuel On-The-Go”, Milo Cereal Bar will target the daily
commuters by conducting surprise visits at selected LRT stations around the metro. This will
enforce the goal of the product which is to satisfy the energy deficiency of on-the-go individuals.
A number of employees will be deployed to give out free Milo Cereal Bars to unsuspecting
individuals. The employees will be wearing a complete milo ensemble, while the theme song of
Milo is being blasted as they are handing out the free samples. This strategy will allow the brand
to leave a good impression to potential customers that could turn into purchasing individuals in
the future.
Aside from this, one train of the LRT will also be plastered with the design and tagline of
Milo Cereal Bar. In addition, the company will also be offering Milo beep cards that they can use
in several convenience stores and establishments. These beep cards would have a feature
wherein, they would receive 5 points on their Milo beep cards everytime they purchase one Milo
Cereal Bar on any FamilyMart establishment.
a. MRT/LRT
Milo Cereal Bars will be distributed in the platforms of the LRT stations with the
most foot traffic during rush hours around, 7-9 am in the morning and 5-8pm in
the afternoon.
● LRT 1: Connecting Stations
○ Doroteo Jose
● LRT 2: Connecting Stations
○ Araneta Center Cubao
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the product and
tagline
Key Visuals
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VIII. Execution
● Perfect Store Execution
The perfect store execution of the Milo Cereal Bar will be heavily dependent on
various forms of promotional sales material. It will try to disrupt the common routine of
the shopper in order to gain interest and purchase. For the small store format, there would
be streamers and standees at the entrance of the store to spark awareness from the
potential customers. As for the in-store point of sale material, there would be pop-up
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posters, custom counter shelf, chiller, and counter stickers. This will create a holistic
experience for the customers of the store.
For the large store format, there would be a giant inflatable Milo Cereal Bar at the
entrance of the store to generate curiosity from potential consumers. Aside from that,
Milo Cereal Bar stickers would also be attached at the pushcarts and baskets. In addition,
a free taste booth would also be located inside the store to further develop the interest of
the consumers. Lastly, a stand-alone shelf in the shape of a Milo Cereal Bar will also be
produced in order to entice the consumers, and for them to easily recognize and locate the
brand.
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As observed in various convenience stores both inside and outside Metro Manila, there
are only a small number of cereal bars or snack bars. There were only 4 choices namely Milo
Cereal Bar, Koko Krunch Cereal Bar, Fitness, and Fitbar. Three out of these four choices are
from the company Nestle. There were no point of sale materials like posters and banners for all
the brands. However, the products are kept on their boxes to draw more attention and entice the
shoppers to purchase the product. For Fitbar, the box shows the name of the product, its photo,
and its ingredients. It also says, “Healthy and Tasty Cereal Bar with MULTIGRAIN”. The brand
would like to highlight that Fitbar is a delicious and a healthy snack at the same time. Only in
one 711 branch was noticed that Fitbar was located both on the top shelf and the middle shelf.
On the other hand, Milo and Koko Krunch demonstrates both the products’ packaging and how
the products actually look like. There is also a statement saying, “Don’t go hungry! Grab your
(NEW) cereal on-the-go now!”. For these brands, the company would like to focus on product
taste recall and brand loyalty. Since the brands’ cereal bars variants are just new to the market,
they would like to communicate to the consumers that these cereal bars are a convenient and
on-the-go version of their favorite cereals. Furthermore, there is a promo wherein the Milo
Cereal Bar and the Koko Krunch Cereal Bar may be purchased for only P15 each when the
shopper presents the code on the box. In addition, the Nestle cereal bars are located on the top
shelf and on the middle shelf as well. By conducting this strategy, the shoppers would be able to
see the cereal bars at least twice more than the others. This could encourage them to choose these
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brands instead of the others. Lastly, on the checkout counter, a few pieces of Koko Krunch and
Milo Cereal Bars are located. This is a good marketing strategy because shoppers can easily grab
a cereal bar even though they are already in line or while they are waiting for their turn. This is
more effective for the target market, students to young professionals since they are more likely to
buy on impulse compared to moms and other shoppers.
In a wholesale setting, other cereal bar brands are shelved accordingly per brand along
the aisle. The boxes cover at most 5 feet wide of the allotted shelf and attract customers passing
by. There are no specific point of sale materials that was used in order to capture the attention of
the customers. In order to compensate they use boxes to tower the shelves and try to catch a
glimpse of the customer. However, in a grocery setting one brand stood-out which is Fitbar. For
the reason, that it had the most eye-catching display or placement compared to the other brands.It
was positioned at the top shelf wherein, it took up most of the space. The overall packaging was
eye-catching because its boxes were covered in a bright neon green color which grabbed the
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attention of the potential consumers. Lastly, the same applies to the supermarket setting where
there were no visible point of sale materials as well.
Standards/Practices to Implement
As a relatively new product concept, Milo Cereal Bar can implement different practices
by its competitors to attain their launch objectives. In the convenience store channel, Fitbar
products are conveniently located in a box on the top shelf. Printed on the box is a tagline that
reinforces Fitbar as a practical on-the-go snack. Its ingredients are also stated on the box to
highlight the product’s nutritional benefits. Individual bars are also located on the middle shelf to
maximize their visibility in the channel. With the large store formats, all competitors did not
have any prominent point of sale materials. By adopting some of these practices and surpassing
the standards of its competitors, the Milo Cereal Bar can successfully disrupt the routine of
shoppers and penetrate the market.
● Execution Strategies
a. Convenience Store Execution
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b. Large Store Format Execution
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