Milo targets "future champions" aged 3-13 and positions itself as encouraging an active lifestyle. It has the largest share of the PHP 6 billion powdered chocolate drink market at 84%. Milo is a chocolate-flavored drink that is 13% more expensive than competitors. It uses TV, radio, print, online and event marketing nationwide. Milo has a niche strategy of dominating the youth market by supporting sports and promoting excellence. The document recommends Milo continue its strong marketing campaign, consider expanding its flavor options, and keep utilizing events and social media.

1. 1
10 STEP
Marketing Plan for MILO
Ma. Camille Villagarcia
5 Nov 2010

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. 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
Positioning to the
Primary Target Market
Part 1:
Steps 1 to 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. 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. 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. 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. 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. 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. 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. 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. 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. 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
The Marketing Mix Strategy
Part 2:
Steps 6 to 10

16. 6a. Product Shots of Powdered
Chocolate Milk Products
Milo

17. Milo’s leading competitors

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. 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. 8a. Promo
Online Advertising

21. Events

22. Promos

23. TVCs

24. 8b. Competitor promo

25. 8b. Competitor TVC

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. 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
SUMMARY

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. 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. 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
10 STEP
Marketing Plan for MILO
Ma. Camille Villagarcia
5 Nov 2010