Nestle is relaunching its Milo product in the market. Milo was originally developed in the 1930s and was launched in Australia, later being introduced to other markets. It failed in the Indian market due to intense competition and declining sales. For the relaunch, Nestle will implement a new marketing strategy focusing on the 4 P's - improving the product formulation, adjusting prices, promoting through sponsorship of sports and events, and changing packaging and placement in stores. The strategy also involves a brand matrix to position Milo competitively against other brands, and potential product extensions. Recommendations include continuing strong marketing campaigns, introducing new flavors, and leveraging events and social media.

1. PRODUCT REVIVAL
‘NESTLE MILO’
DEVELOPED BY
PHARM-NET

3. Interesting History of Milo
►MILO derived its name from MILON,
A champion athlete of ancient Greek
mythology. He was renowned for his feats of
strengths.
►MILO was developed in the 1930s
1934: Launched in Australia as a Tonic Food Drink.
1936: Sponsored the Olympic Games.
1939: MILO was introduced in South Africa.
2001: In South Africa, MILO was enriched with
Vitamins.
2007:MILO is the Malt Chocolate energy drink that
is synonymous with energy, good health and
success, using sport as a metaphor for life.

4. TOPICS OF ASSIGNMENT
• Why this Product?
• About Nestle
• Reasons for the failure of this product in the market
• Re-launching the product
• The 4 P’s of marketing
• Other Important factor concerned for re-launch
• Our recommendation

5. Why this Product?
Traditional versions of products like
Nescafé and Milo still account for the
lion’s share of the business: but ready-to-
drink (RTD) varieties are a fast-growing
category, especially in Malaysia, says
Nestlé as it dedicates a factory in the
country to these drinks.
Alois Hofbauer
MD Nestle Malaysia

6. About Nestle
Nestlé S.A. is a Swiss
transnational food and
beverage company
headquartered in Vevey,
Vaud, Switzerland. It is the
largest food company in the
world measured by
revenues, and ranked #72 on
the Fortune Global 500 in
2014

7. Reasons for the Milo
becoming failure
in the market

8. The Problem for MILO Started in India
The
Indian version
is no longer in
production
because of
intense
competition
from other
beverages.
Dropping sales
force caused
Nestle to stop
production of
energy drink
Milo
On the other
hand, The
market leaders
in the malted
foods category
became
Horlicks,
Bournvita and
Complan,
Sales have not
picked up
despite heavy
discounting
and aggressive
sales push
MILO had to be
discontinued in
the Indian
market since
June 2009

9. Some Other Reasons of the failure In the Market
• Not enough investment in milo.
• Packaging(design of tin + labeling).
• Not innovative
• Low R&D
• Weak, damaged brand- resulted in loss of trust of
the consumers.

10. Others Factors For Failure
• Milo has many formidable competitors.
• Competitors bring out similar products.
• Competitors have diversity in packaging
• (bottles pouches, cans, etc)

11. Important Questions For Failure

12. Re-launch Agenda of Milo:
New Strategy
Marketing Mix
Brand Matrix
Product Extension
Engaging the consumer

13. Re-launch Agenda

14. Re-launching Milo: With New Strategy

15. Re-launching Milo: Marketing Mix Strategy
Produ
ct
Balanced nutrition-the nutrient content has been improved
to meet evolving demands. There are 4 main
components in each Milo product which is;
1. PROTOMALT-a malt extract with a mixture of different
Carbohydrates that provides energy and nutrients the
body needs.
2. ACTIGEN-E -a combination of 8 vitamins and 4 minerals
which helps in the optimal release of energy.
3. Natural Goodness-of malt, skimmed milk, and cocoa.
4. Protein- Protein is one of the micronutrients
that is important to built and repair body tissue.

16. Re-launching Milo: Marketing Mix Strategy
MILO
Product
Qty Package Price
MILO
Strong
200gm Bottle 95/-**
500gm Bottle
Pouch
185/-**
180/-**
1 kg Bottle
Pouch
333/-**
318/-**
MILO
Rich
200gm Bottle
Pouch
118/-**
108/-**
500gm Bottle
Pouch
228/-**
218/-**
Rival
Product
Qty Package Price
Bournvita 200gm Bottle 90/-
Horlicks 200gm Bottle 90/-
Bournvita 500gm Bottle
Pouch
185/-
178/-
Horlicks 500gm Bottle
Pouch
182/-
175/-
Bournvita 1 kg Bottle
Pouch
335/-
315/-
Horlicks 1 kg Bottle
Pouch
350/-
340/-
NO
COMPETITION
Price

17. Re-launching Milo: Marketing Mix Strategy
In Australia an organization called
"Milo Cricket", which operates in most areas by
volunteers, gives participating children small
packets of Milo to eat or drink. The
commercials and taglines are "Go and go and
go with Milo"
Nestlé has now introduced a Canadian version
of Milo. It is made in Canada. It dissolves
rapidly like Nesquik, probably due to market
expectations, but still retains the malt flavor. It
is also sweeter than other varieties
Milo is very popular in Malaysia and Singapore,
where the brand name is synonymous with
chocolate flavoured drinks: Milo has a 90%
market share in Malaysia. "Milo Vans" were
often associated with sports days in these two
countries, during which primary school pupils
would queue up to collect their cups of Milo
drinks using coupons.
Placement
In May 2013, and after more than 20 years out
of the Portuguese market, Nestlé reintroduced
the brand aiming at the high-end market

18. Promotion

19. Re-launch through: Competitive Positioning Map (Brand Matrix)
Brand Matrix is a tool for planning, sourcing, budgeting and staffing
institutional rebranding programs.
Features Of Product Milo Ovaltine Sustagen Chocquick Rich-O
Rich chocolate taste
Has calcium
Easy on the pocket
Best for kids
Nutritious
Reputable endorsers
Strong advertisements
Supports sports events
Supports humanitarian
causes
Encourages active &
competitive lifestyle
Positioning vs. Brand Matrix

21. Re-launch through: Product Extension

22. Our Recommendation
• Since Milo is has the biggest part of the market
share, it should continue it’s strong marketing
campaign.
• They could expand their market by offering a new
flavor to cater it’s market’s different
taste/preference.
• They should continue taking advantage of the
events and social networking sites that help them
promote their product.

23. Thank you