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Marketing Plan - Milo - Villagarcia

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Marketing Plan - Milo - Villagarcia

  1. 1. 1 10 STEP Marketing Plan for MILO Ma. Camille Villagarcia 5 Nov 2010
  2. 2. 5 Steps for Part 1 (PTM and Positioning) 1. MILO PTM are “future champions” 2. Who want to be the best that they can be. 3. Can choose Ovaltine, Chocquick, etc. 4. Gap is all other brands focusing on providing kids a healthy chocolate drink 5. The market size is P 6 Billion. MILO niche is P5.04 Billion (84%).
  3. 3. 5 Steps for Part 2 (Marketing Mix & Strategy) 6. MILO chocolate flavored drink 7. Is 13% premium 8. Uses TV, radio, prints, internet/social networks and events 9. Is distributed nationwide 10. Uses a NICHE approach to win
  4. 4. 4 Positioning to the Primary Target Market Part 1: Steps 1 to 5
  5. 5. 1. MILO primary target market (PTM) are the ‘future champions”  Demographics (3 – 13 years old, M/F, ABC, single)  Lifestyle (study, plays sports, into competitions, interested in an active lifestyle)  Behavior (20g, at least once a day, daily, strong, healthy)
  6. 6. I need a nutritious drink I am complete when I have succeeded and become a champion in my life I am proud when I accomplish things I need to belong
  7. 7. 2. “future champions” NWE Future champions… Need to get nutritious drinks, to belong (social), Self- Esteem, Self actualization Choose Milo over other chocolate drink because of its… brand, taste, packaging, nutritional facts, credibility & awareness of company, promos, endorsers Expect these when they use Milo healthier mind and body, active lifestyle, become future champions,
  8. 8. 3a. Milo has many formidable competitors  Direct: Ovaltine, Chocquick, Rich-O 3-in-1, Sustagen Chocolate  Indirect: Ready-To-Drink chocolate, milk (powdered & fresh), energy drinks  Variables: Age, Price, packaging, specific use, convenience of use, availability, Occasion of use, endorser, popularity, events/promos and brand
  9. 9. Age / Price Matrix: Milo is #1 in high priced product for 0-13 yrs Price/ Age Matrix 3-13 yrs 14-24 yrs 25-49 yrs 50yrs up High price Low Price Price vs. Age Matrix Milo OvaltineSustagen Jr. Chocquick Rich - O Sustagen Premium Sustagen Kid
  10. 10. Positioning vs. Brand Matrix Competitive Positioning Map (Brand Matrix)   Milo Ovaltine Sustagen Chocquick Rich-O Rich chocolatey 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
  11. 11. 4. Milo is strongly positioned in a niche market… Milo is the only chocolate drink product that… - actively supports sports events - encourages an active and competitive lifestyle - promotes excellence, competition, camaraderie and social awareness to the youth Others merely focus on providing nutritional chocolate drink to the youth.
  12. 12. 5a. According to research, the powdered chocolate drink market is about P6 Billion Source: http://www.ats.agr.gc.ca/ase/4669-eng.htm
  13. 13. 5c. Consumer data indicates a size of P 11 billion Powder chocolate drink consumption 1. As of 2009, estimated population is 92,226,600 --- 35.2% are 0-14 yrs old 2. Assuming 1/4 of them will drink 1 glass a day (20g/day w/c costs P4.3875) 3. (92,226,600/4) x 35.2% x 4.3875 =35 Billion
  14. 14. 5. Concluded that powdered chocolate drink market is billion 1. Competitor data= P 6 B 2. Company data = Data not available 3. Usage data = P 35 B
  15. 15. 15 The Marketing Mix Strategy Part 2: Steps 6 to 10
  16. 16. 6a. Product Shots of Powdered Chocolate Milk Products Milo
  17. 17. Milo’s leading competitors
  18. 18. 6b. Product Description  Milo is a powdered chocolate drink that is made from malted barley combined with other ingredients to provide a source of energy for active bodies.  2 Variants – Milo and Milo 3-in-1  Only comes in chocolate flavor  It is available in 6 sizes – 20g, 26g, 200g, 300g, 600g, and 1,000g
  19. 19. 7. Price – Milo is 13% premium price  Milo 20g (12pcs) – P52.65 (~P4.39/pc)  Milo 26g – P7.80  Milo 200g – P43.30  Milo 300g – P62.00  Milo 600g – P121.00  Milo 1,000g – P195.80 Milo’s price is almost at par with Ovaltine’s and is about 28% higher than Chocquick and 11% higher than Rich-O.
  20. 20. 8a. Promo Online Advertising
  21. 21. Events
  22. 22. Promos
  23. 23. TVCs
  24. 24. 8b. Competitor promo
  25. 25. 8b. Competitor TVC
  26. 26. 9. Milo is distributed nationwide by Nestle  Supermarkets, sari-sari stores, convenience outlets, drugstores, market stalls  Nationwide  Pick-up by customers  Cash and credit transaction
  27. 27. 10. Milo is a niche leader Milo’s strategy is to capture and dominate the niche market of 3-13 yrs old future champions. It benefits from the huge distribution leverage of Nestle. Has an excellent, premium priced, excellent product distributed nationwide. Has an active and excellent campaign towards sports that entices the youth.
  28. 28. 28 SUMMARY
  29. 29. 5 Steps for Part 1 (PTM and Positioning) 1. MILO PTM are “future champions” 2. Who want to be the best that they can be. 3. Can choose Ovaltine, Chocquick, etc. 4. Gap is all other brands focusing on providing kids a healthy chocolate drink 5. The market size is P 6 Billion. MILO niche is P5.04 Billion (84%).
  30. 30. 5 Steps for Part 2 (Marketing Mix & Strategy) 6. MILO chocolate flavored drink 7. Is 13% premium 8. Uses TV, radio, prints, internet/social networks and events 9. Is distributed nationwide 10. Uses a NICHE approach to win
  31. 31. My 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.
  32. 32. 32 10 STEP Marketing Plan for MILO Ma. Camille Villagarcia 5 Nov 2010

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