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- Introduction.
- Marketing Environment. (Macro and Micro environmet)
- Conclusion.
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Table of Contents
I. Introduction:..............................................................................................................................................11
II. Situation Analysis:...................................................................................................................................13
1. Marketing Environment and the impact on Business Activities:.................................................13
1.1. Micro Environment:......................................................................................................................13
1.2. Maro Environment:.......................................................................................................................15
1.3. SWOT analysis:.............................................................................................................................16
2. Marketplace Information:....................................................................................................................19
2.1. Dairy Industry Analysis:...............................................................................................................19
2.2. Market Trend:.................................................................................................................................20
3. Competition Analysis with the comparison in which way different organizations apply
Marketing Mix in their strategy:.................................................................................................................21
4. Customer Analysis:..............................................................................................................................22
5. Company’s internal capabilities:.......................................................................................................22
III. Marketing Campaign Objectives and Issues:..................................................................................27
3.1. Marketing Campaign Objectives:.......................................................................................................27
3.2. Issues:.....................................................................................................................................................28
IV. Marketing Strategy:.......................................................................................................................28
1. Segmentation, targeting, positioning:..............................................................................................28
1.1. Segmentation:................................................................................................................................28
1.2. Targeting:.......................................................................................................................................30
1.3. Positioning map:...........................................................................................................................31
1.4. Different strategies:......................................................................................................................32
2. Analysis 7Ps...............................................................................................................................................33
V. Action program..............................................................................................................................................40
VI. Budget..........................................................................................................................................................41
VII. Control.........................................................................................................................................................43
1. KPIs overview:...........................................................................................................................................43
2. Control:........................................................................................................................................................43
VIII. Conclusion..................................................................................................................................................43
References...............................................................................................................................................................45
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Assignment table sumarize
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I. Introduction:
- Nestlé S.A. or the Société des Produits Nestlé S.A. is the world's largest food and
beverage company. It was established in 1866 by Henri Nestle with headquarters in
Vevey, Switzerland. Nestlé has a unique business model of manufacturing and
distributing through a nationwide retail network. Nestlé offers consumers more than 2000
different brands and is present in 191 countries around the world. Nestlé's current
products range from mineral water, baby food, coffee and dairy products. It employs
about 250,000 people and has factories or operations in almost every country in the
world.
- In recent years, due to the influence of Covid-19, the consumer market has been
somewhat slow to develop. Therefore, to stimulate consumer demand, Nestlé has
launched many new products and unique designs that make customers discover more.
This report will analyze Nestlé's situation and identify the company's problems and goals.
From there, develop a marketing strategy to help the company increase revenue and
brand image in the market.
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Name Nestlé S.A
Career Food
Profile’s Company
Product
- Drinks & foods: Nescafe, Nestea, Nesvita, Nestle Yogu, Milo, Kitkat, …
- Nutritious cereals: Corn Flakes, Honey Stars, Koko Krunch, …
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- Medical nutrition products: Nutren – unior, Peptamen – unior, Boots Uptimum,
Peptanmen, …
- Prepared food: Maggi, Buitoni, …
- Besides the diverse products, Milo is one of the milk brands that are considered quite
successful in the Vietnamese market today. Nestlé's Milo Milk has been present and
continuously developed in the Vietnamese market for more than 17 years and is a
prestigious brand, leading in quality and market share in the nutritional cocoa drink
industry for children from 6-12 years old. [ CITATION Asind \l 1033 ]
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II. Situation Analysis:
1. Marketing Environment and the impact on Business Activities:
1.1. Micro Environment:
The company: Nestle is an economy of scale. Milo belongs to Netsle Group, a large
corporation with total assets in Vietnam alone reaching VND 8,281 billion in 2019 (Moc,
2019). Large financial resources will help the company's marketing strategies become
stronger, attract more customers as well as build a solid relationship with customers.
Large capital helps Nestle Milo to increase production volume to sell more. Up to now,
Nestlé is operating 6 factories and nearly 2300 employees nationwide [ CITATION Nes201 \l
1066 ]. With a large number of employees, the work performance will increase leading to
enhanced growth potential of the company. Nestle also owns 6 factories in Vietnam that
help to bring more products to mass production.
The Suppliers: Nestle partners with suppliers all over the world to offer products and
brands in more than 187 countries. Nestlé supplies not only the raw materials of the
company's production process, but also its competitors. According to [ CITATION Dan14 \l
1033 ] nearly 52% of nestle raw materials expenditure goes toward the procurement of the
three key commodities: milk, coffee, and coco. Nestle also source a wide variety of the
commodities, such as, fruit, vegetable, and cereals. Ingredients are often sourced
through trade like: Nestle USA, Moga factory (India), Milk factory in Hulunbuir (city in
china). Nestle can really be in the market thanks to its excellent distribution network.
This is the strength of Nestle when compared to other companies.
The resellers: Nestlé is the world's largest food and beverage company, so it's not
difficult to understand that there are many wholesalers, agents, retailers... these
products. They help the company bring the product closer to the buyer and guarantee the
buyer convenient terms of time, place and purchase. Therefore, choosing to cooperate
with resellers is essential.
This is an opportunity for the company to expand the Nestle brand to consumers.
The Customers: Most of Nestlé’s products are suitable for all age groups. At the same
time, Nestlé’s price is reasonable along with good quality, so it is suitable for all classes
and needs of consumers. In addition, Nestle has a wide range of products from food to
beverages and cooking spices, all products have unique designs and special flavors, it is
difficult for customers to find alternatives. Nestle considers the customer as the center of
its business and always respects the needs and preferences of its customers. Therefore,
Nestle has a lot of consumer loyalty.
This is strength of the company.
The Competitors: Nestle is facing many big competitors such as Vinamilk, Ovaltine, TH
True Milk, etc. Moreover, the new businesses competing with Nestle have the
advantages of flexibility, low cost, advertising and strategies various sales promotion
services, among others. Milo Nestlé’s main competitor is now Ovaltine. The brand has
almost identical sales, advertising and prices, especially the taste is also somewhat
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similar. Therefore, Nestle needs new innovations and innovations to be able to
outperform Ovaltine in the future.
This is both a weakness and a threat to the company.
The public: Nestle also tries to spread the message of healthy living by promoting
activities and supporting organizations such as "Dynamic Vietnam" Nestle has donated
more than 400,000 boxes of MILO milk, fueling the energy to learn for students
participating in the high school graduation exam in 2020 [ CITATION BNE20 \l 1033 ] and in
the program "Stay tuned for the exam season", Nestlé Vietnam will immediately donate
50,000 cans of NESCAFÉ, 50,000 servings of NESCAFÉ dissolved 17g (2 packs/piece),
400,000 bottles of natural mineral water , 10,000 hats for volunteers, 840 umbrellas, 420
refrigerators and 500 million VND in cash to support the contest season relay program.
[ CITATION BNE20 \l 1033 ]
This is not only the opportunity but also the strength of Nestle.
1.2. Macro Environment:
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- The percentage of children under the age of 15 in Vietnam is 33.6% (danso.org, 2020).
This is the age that needs to use milk the most for intellectual development, weight and
height. The large number of children helps Milo to have more customers and potential for
development.
Cultural factor:
- The Vietnamese lifestyle has also changed. Vietnamese people prefer products that can
be used quickly and preserved for a long time. However, health is a factor that many
Vietnamese people care about. They will notice every single thing that is put into their
body. This is an opportunity for Milo to reach more customers. Milo milk provides essential
nutrients for the body such as calcium, magnesium, iron, etc.
- According to information published by the General Statistics Office (gso.gov.vn, 2019), the
number of Buddhists in Vietnam is 4.6 million, Buddhists account for 35.0% of the total
number of followers and 4 .8% of the country's population. Milo dairy product is a plant-
based milk product made mainly from cocoa and barley and can be used by Buddhists
who want to be vegetarian. Besides, Milo milk also provides them with the necessary
nutrients. This is Milo's chance to reach this number of customers.
Economic factor:
- According to information published on the General Statistics Office (gso.gov.vn, 2021),
GDP in the first 6 months of 2021 increased by 5.64%, higher than the 1.82% increase in
the first 6 months of 2020 but lower. . rate increase. the increase of 7.05% and 6.77% of
the same period in 2018 and 2019. This lower rate is due to the Covid-19 epidemic
restricting trade exchange activities between countries. GDP decrease is only allowed and
not too much. The stable economy gives Milo peace of mind to continue selling its
products. However, the Covid-19 epidemic also affected sales of Milo dairy products.
- According to information on the General Statistics Office (gso.gov.vn), the inflation rate in
Vietnam is at a stable and acceptable level of 4%. The company can borrow capital from
the bank for investment and development. Low inflation will lead to lower interest rates on
bank loans. Bank loans with low interest rates help Nestle Milo better deploy new
business activities.
- According to information on VietNam.net newspaper (Vietnam.net, 2020), the general
income of the whole country is 4.23 million VND/month/person. With a retail price of only
7,000 - 10,000 / 1 box of milk. Milo can reach a wide range of customers in Vietnam.
Natural factor:
- Floods and storms are an inevitable problem in Vietnam. This will greatly affect
companies in Vietnam such as Netsle Milo. These natural disasters will cause the process
of transporting products from one place to another to be delayed resulting in some places
being out of stock for a period of time.
Technological factor:
- Technology is an important part of Nestlé R&D. Investment in technology will definitely
help the company reduce production costs and improve product quality. With the help of
technological innovation, Nestlé is able to create healthier products in their product lines
and thereby improve health and quality of life in a country. Nestle has always been
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confident with its technology. Nestle's machines are able to mass-produce large quantities
of Milo milk.
- - According to information on Nestle's homepage, (nestle.com.vn, 2020), Nestle currently
has 6 factories in Vietnam. This ensures a large amount of Milo dairy products are
produced.
Political factor:
- Vietnam is one of the countries with the most stable political situation in the world. Doing
business in a country with less risk of riots or terrorism will give Netsle Milo more peace of
mind when making business decisions.
- Vietnam has also joined many organizations such as ASEAN, APEC. This ensures that
the raw products that make up Milo milk will be shipped to Vietnam at a cheaper import
price than buying from countries in the region.
1.3. SWOT analysis:
business activities.
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affect Milo. Milo's sales mainly come from large
Opportunities
- With a large market, Milo can enhance its development
ability and competitiveness.
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- Vietnam's dairy market has many products such as
Vinamilk, TH true milk, Ovaltine, Dutch Lady. This will
create great competition in the dairy industry.
Specifically, Vinamilk accounts for more than 40% of the
domestic milk market share. Milo needs to find new
ways to reach more customers.
- The fact that there is only one Milo product with cocoa
Threats and barley flavors also makes Milo more competitive in
the dairy market. Although it is plant-based milk, there
are other types of milk on the market such as walnut,
brown rice, lotus seed, and almond milk. Having only
one product causes Milo to lose customers to other
competitors.
2. Marketplace Information:
2.1. Dairy Industry Analysis:
- The dairy market in Vietnam is a potential and vibrant market with many different dairy
companies. According to Euromonitor [ CITATION pro20 \l 1033 ], Vietnam's dairy market is
estimated to reach VND 135,000 billion in 2020, an increase of more than 8% compared
to 2019, thanks to the rapid growth of yogurt and drinking milk products. High growth
categories include drinking milk 10%, yogurt 12%, cheese 11%, butter 10% and other
dairy products 8% while powdered milk increased only 4% in value.
- According to the information of the Vietnam Dairy Association published on the Saigon
office [CITATION Sai20 \l 1033 ], despite the impact of the epidemic, milk production in 2020
still grew well. Fresh milk production is estimated at 1,702.4 million liters, up 1%
compared to 2019.
- Although dairy companies in the Vietnamese market such as Milo, Vinamilk, TH true
milk, and Ovaltine were affected by the Covid-19 epidemic, the consumption of fresh milk
in the midst of Covid-19 remained stable. Many customers believe that fresh milk will
help users increase the amount of immunity in the body, so the number of people using
milk increases more during the epidemic. However, the Covid-19 epidemic also reduced
Milo's growth when students had to stop going to school. Milo milk products are mainly
purchased by students in the school canteen. But the closure of school canteens led to a
decrease in the number of consumers.
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- Vinamilk's milk market share accounts for more than 42% of the total market share of
dairy companies in Vietnam. In second place is FrieslandCampina with the most famous
product being Ducth lady with a market share of 27%. In third place is Nestle's Milo
product with 9%. With the two big competitors above, Milo has to face challenges to
compete with the above two in the dairy industry.
About Milo’s Milk: In short, Vietnam's dairy market is developing. However, the Covid-19
epidemic with the restriction of stores caused a decrease in the revenue of the dairy industry
in general and Milo products in particular. Besides, the Vietnamese dairy market is heavily
dominated by Vinamilk, which will make it more difficult for Milo milk to develop.
- The current trend of using ready-made products in society makes Milo milk products
more welcome to customers because of its convenience. All customers can easily use
Nestle Milo liquid milk easily and quickly. Besides, Milo's suction pipe includes 4
dimensions that make us feel more refreshed when using Milo's liquid milk products.
- The Covid-19 epidemic has made many people more concerned about their health and
immune system. Therefore, dairy products will be used more at home. Milo will be in the
top choices of customers next to other products of Vinamlik, Ovaltine, TH true milk.
- Plant-based dairy products are becoming more and more popular because of their
benefits. For those who are vegan or have inflammatory bowel syndrome, they will prefer
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plant-based dairy products. Plant milk is also found to have the same nutritional content
as animal milk. In a comparison, oat milk and rice milk have even more calories than
cow's milk. Milo is a dairy product made from plants, the main ingredients that make up a
Milo box include oats, malt, soybeans and cocoa. Milo liquid milk products will attract a
number of customers who prefer plant-based milk.
Core competitor:
Milo Vinamilk TH True Milk
Product Quality improve the user's nutrition
The commitment keeping the best Dairy products are
to provide nutritional ingredients produced with the
complete nutrition such as vitamins and most modern and
and energy every minerals from pure hygienic technology
day in products. cow's milk
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higher quality” Vinamilk is much
cheaper than many
other similar products
of competitors.
Place Wholesale and retailer across the country
4. Customer Analysis:
Demographic segment:
- Age: The main customer segment that Milo targets is families, parents with children from
6 to 14 years old. This age group is the age with the most demand for milk. From 6 to 14
years old is the fastest growing age of children. Therefore, every parent wants their child
to drink milk to develop height, intelligence and body mass. According to information that
Nestle announced on Elip Sport [ CITATION Elind \l 1033 ],100ml of canned fresh milk
contains 100-120 mg of calcium (depending on the type of milk). Milo milk also contains
many vitamins such as vitamin B, vitamin C, vitamin D and nutrients such as
phosphorus, zinc, iron. These are all good nutrients for the development of the bone
system. Therefore, drinking Milo regularly can completely provide the baby with a lot of
calcium for the baby to grow up.
Psychographic segment:
- Life style and Personality: The trend of using processed, healthy and nutrient-rich
products is very popular. Many people pay more attention to their own health and the
body's immune system. In the current situation of Covid-19 epidemic, many people
believe that drinking milk every day will strengthen their health and immune system. Milo
is targeting these customers. People who need healthy foods and boost the immune
system. Milo is also aimed at customers who enjoy outdoor activities. Customers who
want to participate in sports activities to improve health. Sports people believe that
drinking 2 cans of milk a day will help muscles and health get better and better.
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5. Company’s internal capabilities:
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Figure 8: The top 10 fast-moving consumer goods companies
Bargaining Power Of Suppliers
- Nestle is known for strong relations with the suppliers around the globe due to its
immense buying power and also because of the fact that in such dairy and agricultural
products quality is always important. Nestle as always focused over strong and sturdy
business relations to make the ongoing quality stronger. Additionally, Nestlé also
presents helpful guidance to its suppliers on how to work more proficiently to decrease
redundant expenses. And thus it cares of its suppliers which I return pays them off in the
form of quality products.
- Nestle always has multiple suppliers to ensure that raw materials are transported to
factories in time for production. However, in the current situation of Covid-19, it has
become more difficult to import raw materials such as cocoa and sugar into Vietnam due
to trade restrictions. According to information on Zingnews (Zingnews, 2020), the covid
19 epidemic has pushed up the price of flour because Covid-19 has restricted trade
between countries.
THREAT LEVEL: LOW
Threat Of Substitute Goods
- The product is very popular and is a daily use product so the threat of substitute products
here is very high. Like if we take the example of bottled water, so the alternative of this is
the lean bag acting as a competition. So Nestle has to innovate its products a lot to stay
in the market and work effectively to eliminate the threat of substitute products. As an
example of Nestlé's recent innovation, health consciousness and wellness factor have
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been incorporated into all Nestle products. Such initiatives will make it easier for Nestle
to move beyond substitutes.
- Other dairy companies such as Vinamilk, TH true milk constantly offer new dairy
products with different flavors such as strawberry, walnut. Besides, new beverage
products of other beverage companies such as Mirinda tamarind flavor are also a threat
to Milo milk. Milo has only 1 main product so the threat from new products in the
beverage sector is big for Milo.
- Milk is a very popular nutritional food in the beverage industry. In the dairy market, there
are many types of milk with similar prices, creating great competition for Milo.
Nestle Milo
2 180ml 7,000
VND
Vinamilk Walnut
Soy Milk
3 180ml 8,000
VND
Ducth Lady
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- Create more
product sympathy
with outdoor
programs in this
way customers
see the benefits
and health when
using the product
3.2. Issues:
- Now on the market, there are too many companies promoting their products through
advertising on social networking, so some other brands may be shown advertising at the same
time as the business, making it difficult for consumers to see and have access to the company's
products.
- So, the solution here is that Milo's ads will show up in golden hours as the time to leave work at
home. And for the videos with the most views, ads will appear on them, making it easier for
customers to see the product and more visits to the product than other regular ads.
1.1. Segmentation:
Demographical:
Nestlé segments their customer into the different of age, family size, family life cycle, income,
etc.
- Life Cycle and Family size: Play an important role in market segmentation as families
with younger kids will want to buy Milo for daily consume, especially convenience pack
the ready-to-drink format
- Age group: from 6 - 12 years old. The most important of these groups are children and
old people, also adults. This will focus con ages 6 – 12 years who live an active lifestyle.
- Income: All income of part, can buy this product, because of this product available for a
cheap product like sachet products. So, everyone can buy this product.
- Gender: Male and Female. It will be very beneficial to target women as they usually shop
for their family, especially for those have young kids.
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Psychographic:
Nestle offers their product considering customers psychographic segment, like, lifestyle and
personality.
- Milo instant milk for elementary schoolers (Primary 1-5) who are outdoorsy are
involved in sports can be targeted by tagging the brand with some celebrity in the field
sport.
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Behavior:
Benefit:
- Nestle offers the best quality, taste and price for milk. Customers may buy other
companies’ milk, but no other company can provide the quality and flavor that Nestle
Milo provide.
Readiness stage:
- Nestle is one of the most well-known company in the world. A very few people can
found who do not know about this company product. Nestle figure out the stage of
their customer and make them more aware about their milks and nutrition.
Attitude toward product:
- Nestle is always concern about the attitude of people toward their product. They
consider the feedback of their customers and the other people and make their product
better to get the positive opinion of their customers.
1.2. Targeting:
Market segmentation reveals the firm’s market segment opportunities. It now must evaluate the
various segments and decide how many and which segment it can serve best. Customer now
look at how the company evaluate and target segments.
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problem of substitute product. But because of the high quality and affordability Nestle
do not need to be worried about that problem
“A company must differentiate its offers by building a unique bundle of benefits that appeal to a
substantial group within the segment.”—Nestle knows this pretty well.
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Figure 14: Position map of nutrition milk in Vietnam
- These figures show a positioning map for the world’s leading food brand-Nestle.
Nestle in Vietnam, in the dairy industry, Nestle Milo only accounts for about 9% of the
market share. Therefore, it can be seen that Nestle's position in Vietnam is lower than
that of some competitors, in term of domestic and accessible, Nestle only ranked
fourth in the market. In terms of price, we can see that Milo is on par with its
competitors in the industry but slightly better in quality. From there, it shows that Milo
focuses on product quality very carefully and is well received by customers.
- Product: The Milo brand, apart from powdered milk products, also develops many
other products such as instant milk, sandwiches, lozenges, etc. All are named Milo
and taste similar. This helps businesses provide customers with more choices, solving
many problems that powdered milk products cannot meet such as convenience and
speed.
- Image: Receiving the APAC Effie Awards for two consecutive years - a prestigious
award in the field of communication and marketing in the Asia-Pacific region - has
marked the right direction of Nestlé MILO Vietnam in approaching customers. Milo is
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giving the image "Champion made of Milo". Milo wants to spread the message that
Milo milk products will help teenagers become champions.
Figure 15: Nestle Milo Vietnam representatives receive the APAC Effie Award in 2019
People: Their number of target people is very high because they have much demand for
nutrition products. Many companies only focus on high-income customers with the goal of
promoting product quality. Milo's milk powder is sold in small packages, at very reasonable
prices, and is popular in rural areas of Vietnam. At the same time, instant drink boxes and cans
with different ingredients, corresponding to each price, serve the diverse needs of customers.
Milo does not ignore any target group. Therefore, positioning Milo as a luxury or affordable
nutritional drink is incorrect. Their products are suitable for everyone.
2. Analysis 7Ps
Product: Milo is considered an example of a type of patented high-tech product, which the
enterprise will manufacture and distribute directly to customers. In its brand strategy, Milo
always builds the trust and love of customers. Not only that, Milo always strives to discover
and create products that are at the forefront of market trends and meet the needs of its
products. In addition to powdered milk, Milo produces many other products such as instant
milk, lozenges, sandwiches, etc. have similar flavors and are all branded Milo. Therefore, the
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name Milo has helped customers diversify their choices for the most convenience of their
products more than Vinamilk, Abbott, etc. [ CITATION Tha21 \l 1033 ]
Brand: Nestlé has established nearly 150 years but the brand Milo just more than 80
years. For more than 80 years, NESTLÉ MILO has provided nutrition and energy to children
in more than 25 years in Vietnam from 1994 (Son, 2019).
Packaging: Nestlé uses paper packaging for Milo, thereby giving a message of
environmental protection instead of plastic packaging. In addition, the company also
organizes events to collect packaging for recycling. Recently, Milo has launched Milo can
product with youthful packaging, bringing inspiration to become a hot trend for young people
in Vietnam. Not to mention, Milo is also a pioneer in the use of paper straws [ CITATION Tha21 \l
1033 ]
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Price: The price of the Milo dairy product line is relatively consistent with the average
monthly income of households in Vietnam (with GDP per capita of 2,200 USD/year
according to the Bureau of Statistics in 2016). The difference is not significant compared to
the price of other dairy product lines. For example: 1 box of Milo for retail is cost 8,000
VND, Milo liquid milk in a paper pack is priced at 28,000 VND, a box of Milo powder 400gr
is 66,000 VND, 1 Milo box with screw cap 210ml cost 19,000 VND.
Place: Currently, in Vietnam, there are many large factories and distribution centers
operated by Nestle. The main distribution channels used by Nestle are wholesale and
retailer. Although these are two basic distribution channels, they have their own
advantages with a large number of customers. In addition to cooperating with agents,
grocery stores as well as supermarkets nationwide, Nestle also uses e-commerce to
promote its image as well as to easily reach customers. Currently, the trend of online
shopping in Vietnam is increasing stronger than ever [ CITATION Tha21 \l 1033 ].
Promotion:
- Sales promotion: Milo's sales promotion activities take advantage of mass media
such as television, newspapers, radio, videos in supermarkets, posters, etc. Along
with that, other forms of promotion such as program sponsorship Programs,
participation in product fairs, free gifts when buying products, PR, discounts are all
applied by Milo in its marketing strategy. These sales promotion strategies have
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helped Nestle gain popularity and a large number of loyal customers [ CITATION Tha21 \l
1033 ].
- Advertising via TVC: Nestlé Milo using a TVC attracted a lot of public attention when
talking about a boy and girl who became more active after using Milo products, at the
end of the advertisement were pictures of parents giving them for children Milo
products. This ad convinces consumers to buy Milo products when parents and
children find it interesting and attractive to watch [ CITATION Tha21 \l 1033 ].
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and helped the Milo brand gain a lot of sympathy from customers [ CITATION Tha21 \l
1033 ].
- Social Media: Social networking is growing and becoming an essential need in daily
life. Businesses have used this medium to the maximum to increase sales through
campaigns on Facebook, Instagram, YouTube, etc. Nestle has also implemented a lot
of its brand strategies, especially brands Milo has a lot of marketing campaigns
deployed on these social platforms. The campaign “Dynamic Vietnam” closest to us
was carried out by Milo in 2017. This campaign has made a big splash when using
social networks as the main method of communication. This campaign has helped to
change the perception in the Vietnamese community about an active lifestyle and
encourages regular exercise towards children between the ages of 6 and 17 [ CITATION
Tha21 \l 1033 ].
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Milo brand with delicious and easy-to-drink products has become a favorite drink of both the
elderly and children and has become indispensable in many families. In order to have such
great success today, in addition to quality and nutritious products, Milo's marketing strategy has
been implemented extremely rationally, skillfully and creatively [ CITATION Tha21 \l 1033 ].
People: Nestle Vietnam has been recruiting thousands of people to join their company.
They have been training their employees to handle the queries of their customers and
also provide better customer service. Various campaigns are organized by their
employees for the purpose of the sales promotion in different cities of Vietnam.
Process: The company has been manufacturing the products by processing it using
better technology. At Nestlé, product quality is a top priority. They set very high standards
of quality, not only meeting the requirements of Vietnam market, but also meeting global
standards. Factories follow strict processes and standards to ensure quality from input
materials to output.
Figure 24: Nestle Vietnam was awarded the "Vietnamese Food Gold Brand" award by the
government in 2014 for Nestle Milo products. (Nestle, 2015)
Physical Evidence: According to Nestle (2017), Nestle inaugurated a Bong Sen factory
specializing in Milo production in Hung Yen province with an investment of more than $70
million. The inauguration of the Bong Sen factory is part of Nestlé Vietnam's strategy to
further promote its leading position in nutrition, health and wellness. Nestlé Vietnam said
that the factory uses the latest environmental technology, including an eco-friendly cooling
system and a heat and energy recovery system. The plant does not discharge harmful
emissions to the soil. The plant's high environmental standards are part of Nestlé's zero-
hazard operation goal by 2030.
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Figure 25: Nestle Milo Factory in Hung Yen Province (2017)
Besides, Nestle Milo invests more to develop vending machines and place them in public places.
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V. Action program:
Promotio New The new product R&D, Supply Chain 10,000,000,000₫ 1/1/2022 in
n Product “Balance and Marketing HCM city
breakfast drink” Department
with barley and
brown rice taste
VI. Budget
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Expense Amount of money
1 2 3
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3 Advertisement on 70 million viewer 20 billion Communication x x
Youtube VND team and
Marketing team
VII. Control
1. KPIs overview:
Advertisement:
- 100 million viewer for advertisement on TV (VTV3, HTV3).
- 70 million users see the advertisement on Facebook.
- 70 million views for commercials video uploaded on Youtube.
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- 25 million view for short commercials video uploaded on Tik Tok.
- 15 million users see the advertisement through Google.
- Attract 10.000 customers by banner at shopping centers.
- Attract 2.000 customers to gift giving program for loyal custom
Estimate revenue: 1,000 billion VND.
Estimate market share: Increased from 0.5 to 1% milk market share.
2. Control:
Control KPI to make it easier for management to control the activities that take place in a
purposeful and easy to see way, helping each department better understand the proposed
campaigns. Helping businesses achieve their original goals.
VIII. Conclusion
The above report has provided detailed marketing strategies for Nestlé. The company's
marketing team analyzed the situation, marketing campaigns and strategies, objectives, action
plans and budgets for Nestlé. In this Covid-19 situation, the company may not be able to make
any profit without a marketing plan. So the marketing campaign for Nestlé in this period is really
necessary. Therefore, we propose a marketing plan to help the company overcome difficulties.
With the above detailed information, it can help Nestlé to some extent in this Covid-19 situation.
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