ASSIGNMENT 2 FRONT SHEET

Qualification BTEC Level 4 HND Diploma in Business

Unit number and title Unit 2. Marketing Processes and Planning

Submission date Date Received 1st submission

Re-submission Date Date Received 2nd submission

Student names & codes Final scores Signatures

1.Nguyễn Thị Nam Anh – BH01449

2. Lâm Thị Thu Hà – BH01499

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3.

4.

5.

Class MA07101 Assessor name Ngo The Nam

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I certify that the assignment submission is entirely my own work and I fully understand the consequences of plagiarism. I understand that making a false declaration is
a form of malpractice.

P3 P4 P5 M3 M4 M5 D2 D3 D4
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Contents
PART A:......................................................................................................................................................................11
I.INTRODUCTION.......................................................................................................................................................11
II.COMPARE THE 7P MARKETING STRATEGY WITH COMPETITORS..........................................................................11
III. EVALUATE BUSINESS GOALS................................................................................................................................28
1. Milo....................................................................................................................................................................28
2.Ovaltine..............................................................................................................................................................28
PART B....................................................................................................................................................................... 29
I. EXECUTIVE SUMMARY...........................................................................................................................................29
II. SITUATION ANALYSIS............................................................................................................................................30
1. Market description............................................................................................................................................30
2. Competion and difference.................................................................................................................................30
3 Macroenvironment of Nestle Milo.....................................................................................................................31
3.1 Political and legal factors..............................................................................................................................31
3.2. Economic.....................................................................................................................................................32
3.3. Technology factor........................................................................................................................................32
3.4 Demographic environment..........................................................................................................................33
3.5 Environmental..............................................................................................................................................33
3.6 Social............................................................................................................................................................34
III. Marketing strategy...............................................................................................................................................34
1. Segment.............................................................................................................................................................34
1.1. Demographic...............................................................................................................................................34
1.2. Psychology...................................................................................................................................................35
1.3. Lifestyle.......................................................................................................................................................35
2. Positioning strategy...........................................................................................................................................35
3. Differentiation...................................................................................................................................................35
4. Marketing mix 7ps.............................................................................................................................................38
4.1. Product.......................................................................................................................................................38
4.2. Price.............................................................................................................................................................41
4.3. Place............................................................................................................................................................42
4.4 Promotion....................................................................................................................................................43

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 4.5. People.........................................................................................................................................................45
4.6. Process........................................................................................................................................................49
4.7. Physical Evidence.........................................................................................................................................50
III. ACTION PROGRAM.....................................................................................................................................51

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PART A:

I.INTRODUCTION
Nestlé is the world's largest food and beverage corporation. They have over 2000 different brands from iconic global brands to local brands.
Milo products are one of the products that are loved by people around the world, especially children. Currently Nestle is present in 191
countries worldwide including Vietnam. Nestle is a large corporation with a long history of business operations, founded in 1866 by Mr. Henri
Nestlé. In the 1960s, he invented a food for infants who could not be breastfed, in order to reduce the rate of infant mortality due to
malnutrition. After successfully saving the baby's life, this first product was widely sold and popular in Europe under the name Farine Lactée
Henri Nestlé. These are some important milestones in the formation and development of Nestlé in the food sector. Nestlé operates in the food
and beverage industry, with headquarters located in Vevey, Switzerland. Nestlé's current products range from mineral water, baby food,
coffee and dairy products.

Milo is a supplement drink brand from the famous FMCG company Nestle. It was invented by an Australian man - Thomas Mayne - in 1934.
This means that even though it was born very early, up to this point, Milo is still very popular and used by many users. love it, even remember
it deeply in your mind. Milo is currently present in many countries from Asia to America, Europe, even Africa. The name Milo was inspired by
the name of a Greek athlete. The composition of Milo milk has a harmonious combination of milk with malt and chocolate, creating a
nutritious, sweet, delicious and greasy drink that makes people ecstatic (NESTLEMILO, 2021)

II.COMPARE THE 7P MARKETING STRATEGY WITH COMPETITORS

Company name Nestle ( Milo ) Wander AG (Ovaltine )

1. Product
1.1. Products Some of Milo's main product categories include: Some forms of Ovaltine products:

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 • Canned milk: New Milo teen provides protein and • Ovaltine in traditional box form with Power 10
calcium to help develop height and strengthen bones. formula helps supplement many essential vitamins and
• Instant milk bags: Convenient and suitable for minerals for the body.
consumers' diverse choices when they want to change • Ovaltine DHA+ contains nutrients including choline
their preferences. and 7 vitamins and minerals necessary for the
• Milk powder in plastic cans and rectangular paper boxes: comprehensive development of children.
Pure milo powder, helping consumers prepare and mix • Ovaltine can is recommended for adults who need a
according to their taste, suitable for both adults and lot of energy to exercise, exercise, play sports, etc.
children. (Anh, 2022)

(NESTLEMILO, 2023)
Through this, we can see that Milo has tried to diversify its
products to meet customer needs

1.2.Product brand Brand: Nestlé Brand: Wander AG

Nestlé's first commercial registration symbol was based on The first Ovaltine was created in 1904 in Bern,
the family coat of arms of Henri Nestlé, with the image of a Switzerland, where it is still known as Ovomaltine. In
bird in a nest. This takes its cue from the family's name, 1909, when exported to England, due to a typographical
which means "bird's nest" in German. Henri Nestlé error, the brand name was changed to Ovaltine, a name
transformed his family crest by adding three baby birds that has since been used in English communities. The
being fed by their mothers, creating a visual connection Ovaltine letter is designed with a blue color combined

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 between his name and his company's infant cereal with a red background combined with a vibrant image
products. He began using this image as a commercial of barley, showing dynamism and development,
symbol in 1868. Today, the same bird's nest logo continues symbolizing intellectual development. (Anh, 2022)
to be used on Nestlé products globally, and has been
changed over time. As for Milo milk products, the
company's name was changed to red and placed in the
same yellow frame as the word Milo. The entire Milo milk
product line has the same branding in design and color.
Although the design is simple, it still highlights the Milo
brand along with the company name on a green
background. (NESTLE, 2024)

1.3.Product Among the countless types of milk on the market, when Ovaltine is a popular instant drink worldwide, especially
characteristics mentioning chocolate-flavored milk with added nutrients, in providing nutrition to children. Provides a lot of
Milo will immediately appear in everyone's mind. From the vitamins and minerals to help children grow healthier
beginning, Milo has always considered supplementing and smarter. Such as vitamins A, B, C, D, E, fiber,
nutrients from natural protein-rich ingredients to ensure protein, protein, iodine. Ovaltine milk contains iron,
users' health as a guideline for the brand, and products zinc, phosphorus, and taurine acid to help the brain
can be easily seen. Milo's is always known for being a function better. In particular, Ovaltine milk contains
quality and safe product. To be able to create a difference calcium to help children develop healthy bones and
in products, helping to compete with other brands. Milo teeth. Ovaltine milk can be mixed with other types of

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 milk has always been famous for its natural ingredients milk. This is to stimulate the taste buds, increase the
and unique, unmistakable chocolate flavor. Milo is always flavor of milk and not make children bored. If you know
committed to the quality of products rich in nutrition and how to combine them properly, it will bring surprising
energy. This is also the characteristic and outstanding results. In short, Ovaltine is not only a delicious drink
advantage of Milo. but also an important source of nutrition for both
children and adults. (Ngọc, 2021)

1.4.Product Milo's design features green as the main color, standing Ovaltine is designed with the main color red, the
packaging out among other milk brands when combined together. patterns printed on the packaging are very meticulous
The packaging also has images of children playing different and sharp. Because the main ingredient is wheat, the
sports such as basketball, soccer, ...creates a very dynamic print is very large and attractive, true to Ovaltine's
feeling. On the other hand, necessary information such as designs, always wearing a unique feature that when
ingredients, instructions for use, etc. are printed fully and consumers look at it, they can immediately remember
clearly to help buyers grasp the information and easily it. The packaging often features an image of a
evaluate the product and make purchasing decisions. . beautifully decorated and attractive Ovaltine milk glass
Milo's packaging is designed in a variety of ways, from box or milk cup. This image can be arranged to create the
to package, helping buyers choose the right product. impression of the product's juiciness and appeal.
Canned Milo is convenient to use right away. In addition, Detailed information about ingredients, nutrition and
putting it in the refrigerator also saves space. Canned Milo instructions for use are displayed clearly and easily to
is designed to not be distorted when placed in tight places read, ensuring that customers have full information
like a briefcase, and the chilling time is also faster. before deciding to buy the product. In this way, the

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 Powdered Milo Packed in small paper bags or large jars, packaging of Ovaltine milk is not only an attractive
buyers can choose the appropriate volume for their contract, but also an effective way to introduce the
frequency of use. The brand is designed without too much product to consumers.
fuss with elegant, eye-catching colors to create a good
impression on customers. The product name and uses are
shown in a clear summary right in front of the product to
help customers understand product information easily,
quickly and conveniently so that customers can easily give
information. decide to buy the product
(NESTLEMILO, 2021)

1.5.Product quality In many countries around the world, both developed and Ovaltine focuses on putting quality first and is used as
developing countries, the demand for consumption and "material" for its Marketing campaigns. Ovaltine
use of organic food has increased by an average of 20%, in products contain some essential vitamins, minerals and
some countries by up to 50% each year. Understanding trace elements for children. It includes folic acid,
this need, dairy companies around the world have also calcium, iron & zinc which are essential nutrients for
produced more and more types of milk with completely pregnant women. Ovaltine defines itself as a nutritional
natural ingredients. Since its establishment, Nestle has product derived from soft drinks containing 4 vitamins
always considered developing the brand based on raw and 6 minerals for a healthy lifestyle for children and
materials. Natural ingredients (Milo milk is made from the whole family. (Hạnh, 2023)
barley) and ensure the health of consumers. Therefore,

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 Nestle products are always appreciated by consumers for
their safety and quality, Milo milk products are no
exception, which has created a difference and a place in
the hearts of consumers. (NESTLE, 2022)

2.Price The Milo milk product line is aimed at parents with It can be seen that Milo is the company's biggest
children from 6-14 years old, with input sources ranging competitor in the same FMCG industry. The difference
from low to high. With the determination from the in Ovaltin's pricing strategy is that its products are
beginning, the product is aimed at parents with children suitable for the target customer group of children aged
from 6-14 years old across the country. Therefore, the 1 year and older. Ovaltine has exploited a customer
price of the Milo milk product line is relatively suitable for group of children between the ages of 1-3 years old that
the average monthly income of children. households in Milo does not target. This is considered a strategy to
Vietnam (with an average GDP per capita of 2,200 fully exploit the target customer segment that Ovaltine
USD/year according to the Department of Statistics in aims to gain market share from "big guy" Milo. (VU,
2016). The difference is not significant compared to the 2021)
prices of other dairy product lines. Milo liquid milk paper Ovaltine milk comes in many forms such as powdered
box 180ml: 27,500 VND/lot of 4 boxes, Milo Balanced milk, large cans of milk, and small cans of milk.
Breakfast 180ml: 25,000 VND/lot of 3 boxes, Milo low Depending on the type of milk you buy, there will be
sugar 180ml: 27,500 VND/lot of 4 boxes. In addition, the different prices. According to many consumer reviews,
brand also announced that the actual price of the product Ovaltine milk has a fairly reasonable price, competitive

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 may vary slightly depending on the business policy of each with many other suppliers. Currently on the market,
store or supermarket. (NESTLEMILO, 2021) Ovaltine milk products for children have the following
prices:
• Ovaltine milk box 110ml chocolate flavor costs 17,500
VND/1 block (4 boxes).
• Ovaltine milk box 180ml chocolate flavor costs 25,500
VND/1 block (4 boxes).
• Ovaltine milk box 110ml chocolate flavor costs
210,000 VND/1 box (48 boxes).
• Ovaltine milk box 180ml chocolate flavor costs
305,000 VND/1 box (48 boxes). (Ngọc, 2021)
3. Place Because Milo has been present in Vietnam for a long time Ovaltine's marketing strategy, in addition to cocoa milk
and Milo products belong to the category of common products combined with barley, in each market, the
consumer goods, Nestlé has applied a mass distribution company distributes and produces different types of
strategy for Milo products, helping the product become products based on customer trends and preferences.
popular. Widely distributed everywhere nationwide, from Ovaltine's distribution strategy includes a variety of
big cities to rural areas and provinces, Milo can be easily products distributed in many different countries with
found in supermarkets, convenience stores, grocery each product specific to each market. (VU, 2021)
stores,... • Indirect channel:
In addition to agent distribution, Ovaltine is still
Supplier: Nestle Vietnam Company => Retailer, Wholesaler pursuing modern distribution channels that are

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=> Customer (NESTLE, 2024) increasingly popular with consumers such as
The company always tries to bring products to consumers supermarkets, grocery retailers or convenience stores
in the most convenient way. In addition, widespread nationwide. Overall, Ovaltine's product distribution
distribution will help increase product recognition among strategy does not have many outstanding points.
buyers. Accordingly, the product will reach consumers through
Nestle is a company specializing in the FMCG industry, this retailers. Ovaltine's current partners include
is the company's key product group related to food and supermarket systems Co.op Mart, Bic C, Lotte,... and
daily necessities. The two types of distribution channels convenience store systems Circle K, Bsmart...
used by Nestle are wholesalers and retailers. Both •Direct channel:
channels have many advantages in terms of high order In addition to cooperating with agents and
frequency, short shipping time and large customer base. supermarkets nationwide, Ovaltine also cooperates with
These channels also have their own functions such as e-commerce platforms such as Shopee, Tiki, Lazada to
transactional functions (contact, promotion, negotiation, optimize customer needs.
risk taking), logistics functions (physical distribution,
storage, classification) and support functions. (research,
sponsorship).
In addition to cooperating with agents and supermarkets
nationwide, Milo also cooperates with e-commerce
platforms such as Tiki, Shopee, and Lazada. Thanks to the
strong development of information technology,
Vietnamese consumers' shopping habits and behaviors

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 have also changed significantly. With the decrease in
purchasing frequency and increase in purchase volume per
purchase, Vietnamese people also tend to order online in
batches or cartons rather than buying retail like in the
past. (KIM THO, 2023)

4.Promotion
4.1. Advertising Through sports, children not only practice physical fitness, The advertising campaign "You don't need to win, you
but also learn many valuable lessons, cultivate positive just need to like it" is considered a strong leverage for
character and attitude, and care for people. Therefore, the Ovaltine in the Vietnamese market. The message of this
marketing campaign for the program "Dynamic Vietnam" campaign is considered a direct challenge to Milo and
has been promoted by the brand through mass media such has created a strong media effect, creating a huge
as television, websites, newspapers,... by running Mainly coverage in the community. Ovaltine's target customer
its advertisements for campaigns and products on group is mothers with children of elementary school
television and social networks. Speaking of this, it is age. Insight of the vast majority of this target group
impossible not to mention the TVCs in the "Dynamic wants their children to first be good at studying, then to
Vietnam" campaign, such as the TVC "Real Champion", TVC be "good" physically. Ovaltine's Insight are technology-
"Thank You Mom",... thereby encouraging mothers savvy parents who tend to raise modern children,
Actively let children participate in more physical activities. allowing their children to freely develop themselves and
Milo has also continued to reach a wider audience through become themselves, not compete to be champions.
the community voices of several KOLs. After launch, Milo's (VU, 2021)

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advertising campaign reached 19 million views. This has After the campaign "You don't need to win, you just
created success for Milo in the international arena when it need to like it", Ovaltine has had a significant amount of
won the prestigious APAC Effie Awards 2018 thanks to this people interested and known. It can be seen that
campaign. It is known that Nestlé Milo is the first Ovaltine's social communication strategy has had great
Vietnamese F&B brand to receive this award. success when the keyword "Ovaltine and Ovaltine's
(GREENWAY, 2018)
Marketing Strategy" is widely discussed. Ovaltine's
In addition, the company has also invested in outdoor wisdom in choosing to promote via Social Media has
advertising by placing large billboards on crowded roads. garnered a huge amount of discussion from the online
Banners and billboards can be designed to be a bit unique community and customers. (VU, 2021)
in size and image but still do not lose the meaning of the
message and Milo's unique personality. . Nestle also
delivers its advertising to consumers in many new and
innovative ways, such as with interactive video technology
in department stores and supermarkets and through
projection screens or printed posters and stands. hanging
in grocery stores. Specifically, Milo has cooperated with
Asia Shopper Marketing to install more than 100 3D
projectors at the CO.OPmart and Lotte Mart supermarket
systems to provide information about current promotions,
as well as product information. products are being sold on
the counter. (KIM NGOC, 2024)

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4.2. Promotions Promotion is one of the indispensable steps when It can be said that compared to competitors in the same
implementing Milo's marketing campaign. Up to now, Milo industry, Ovaltine's promotional programs are also very
has offered many promotional activities such as buying diverse and not inferior. For large media campaigns,
Milo and getting free swimming goggles, school supplies or Ovaltine also often comes with an attractive promotion
scratch cards, etc. The products created are all products program. When the target customers are children,
suitable for users' needs. use by young children. Milo has cartoon images will always be a smart and effective
run promotions in many different forms. Customers will choice to attract attention to the product. With this
receive learning kits and toys when purchasing the promotion, Ovaltine launches children's suitcases
product. In addition, in convenience stores or designed with the famous Pirate Island characters,
supermarkets, when purchasing Milo brand products at a making any child want this suitcase from Ovaltine.
set price, the buyer will receive additional vouchers, or (dtcworld, 2021)
when purchased with other products, they will receive a
discount. (NESTLEMILO, 2023)
4.3.Public relations Nestlé is always mentioned as a brand that always focuses For Ovaltine, event activities are still average and do not
on children's health. Nestlé's campaigns always aim to have too many highlights. Ovaltine carries out the
help children develop as completely as possible. In project "Spread the energy of love" with the initiative of
particular, Milo and youth sports organizations create installing a series of "Nutrition cabinets - Receiving
sports events, which is considered a useful and love". Accordingly, with the Power10 formula that
professional playground with careful investment from the ensures daily supplementation of essential nutrients
brand. There, Milo products were displayed and free and energy for all ages, the donated glasses of Ovaltine

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drinks were given to all who participated. This is an milk will help provide people, volunteers and medical
effective way to reaffirm the brand with products staff with a source of nutrition. better quality, maintain
associated with sports activities, health training, creating energy and improve health, especially in the context of
sympathetic view from customers. Not only that, in order complicated disease developments. The Ovaltine brand
to enhance the role of sports, Milo organized a walking provided 240,000 glasses of milk to the recruitment
program "Milo - Green Energy Journey", the event force and 17,000 households at 5 quarantine and
attracted about 10,000 people, mainly students and blockade hot spots in Ho Chi Minh City. Previously,
teachers. teachers and parents from primary schools in the within the framework of the "Spread the Energy of
capital Hanoi. After 2 years of organization in Ho Chi Minh Love" program, Ovaltine also donated 3,000 USD to
City, the program has attracted more than 20,000 Children's Hospital 1 to support children in difficult
participants. In addition, the event also had the circumstances. (Anh, 2021)
enthusiastic participation of athletes, famous artists and
experts in education and child nutrition such as MC Thanh
Bach, player Cong Vinh, and the face of The Voice.
Vietnamese children Quang Anh... The program used all
funds donated by the Milo brand and from souvenir sales
at the event to equip schools with sports equipment,
specifically giving an additional 100 Standard sports
equipment for 20 elementary schools in the city, creating
conditions for students to practice sports, develop
physically as well as have more fun when going to school..

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5. People ~ Parents with children from 6 to 14 years old, want -Ovaltine is intended for children from one year of age
products that can support physical and intellectual and older as recommended by the manufacturer.
development. According to nutrition experts, mothers should give
~ People who don't like coffee in the morning, need a drink their children Ovaltine between the ages of 3 and 6
to start the day and can help stay awake instead of coffee years old. Because at this time the baby's digestive
~ Sports enthusiasts and students need products that can system is complete. Babies can fully absorb the
provide the energy and nutrition needed for study and nutrients in milk without bloating or indigestion.
physical activity.
-Consumers with special nutritional needs to provide
~ People who like new, different and attractive things, like
nutritional supplements that cater to those in need such
products with new breakthroughs in flavor instead of old
as the elderly, those exercising, or those recovering
products that are too traditional and boring.
from illness.
+ Children: are the main target group that Nestlé targets
when launching products such as powdered milk, fresh
-Consumers who love coffee and chocolate drinks are
milk, cereal, etc. The products will help children grow and
looking for fun and delicious drinks.
develop quickly physically as well as wisdom.

+ Adults: people aged 16-40 years old will be suitable for

products such as coffee, soft drinks, candies, snacks, etc.

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 + Elderly people: Nestlé has milks for the elderly to
support strong, supple bones to maintain health.

6.Process Nestlé Vietnam has a closed production process, ensuring Ovaltine milk is strictly monitored from raw material
product quality. Nestlé Vietnam products are selection to production, so it completely meets
manufactured according to international standards, international standards. Research and develop new
meeting food safety requirements. Nestlé takes many products or improve existing products based on
steps from farm to production to give consumers customer feedback and market trends. Ovaltine
confidence that the products are of the best quality. Vietnam launches 2X calcium barley milk drink,
At this stage, Nestlé will cooperate with farmers to instruct containing twice as much calcium as 250 ml of fresh
how to use the automatic cooling and milking system and cow's milk to support height development for children
apply special quality control measures to bring quality during the golden period. Throughout the
products. Nestlé collects fresh milk from farmers at Special manufacturing process, Ovaltine conducts periodic
Collection Centers every day and tests the milk on-site to quality checks to ensure that products meet the highest
confirm quality (NESTLEMILO, 2021) quality standards. This includes testing product samples,
Nestlé's product transportation methods are specially checking production processes and ensuring compliance
designed to ensure the products are kept in the best with food safety regulations. Ovaltine manages
condition during transportation. Delivery vehicles are warehouses to store manufactured products and
always periodically maintained by the company to ensure prepare them for delivery to customers or to retail
hygiene and safety without affecting the products. Before locations. In addition, Ovaltine's marketing and
delivering to retailers or consumers, food is always advertising campaigns use traditional and digital media

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 thoroughly checked for quality, packaging, and expiration to create brand awareness and increase sales.
date. After delivery, the products will be stored in a
warehouse that has been inspected and guaranteed to
meet food safety standards.
Nestlé products, especially milk, will go through a number
of processes to ensure quality such as removing all
impurities and then being pasteurized to kill harmful
bacteria. In the Nestlé production factory, employees have
been provided with full protective clothing and are
disinfected. The factory is designed according to
international standards, with a clean, scientifically
arranged equipment system. To ensure quality, Nestlé
products have to go through many costly stages, so the
business always seeks to simplify the production and
transportation process and automate the process by
introducing modern technologies. focusing on operational
processes, and strengthening cooperation with reputable
partners to improve product efficiency and productivity for
customers. (NESTLEMILO, 2023)

7.Physical Evidence

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7.1 Sales space
Nestlé Vietnam has a system of modern product display Ovaltine milk is displayed in small grocery stores,
stores, providing a convenient shopping experience for supermarkets, shopping centers or can be purchased
customers. In addition, the company also cooperates with through e-commerce sites. Before buying, you need to
large and small supermarkets, grocery stores, etc. to carefully check the production date, expiration date and
display their products. Nestlé has a system of modern other related information. (Ngọc, 2021)
product display stores, providing a convenient shopping
experience for customers (NESTLEMILO, 2021)

7.2.Packaging and Nestlé Vietnam always focuses on designing product Most Ovaltine products have that color as the main
design packaging that is beautiful, eye-catching and suitable for color. Carry within yourself a state of interest,
Vietnamese culture. For example, the Milo Vietnam excitement, exploration, and discovery. Ovaltine's
product packaging is designed with bright colors, images of products have pictures of teenage boys and girls on the
active children and the slogan "Be healthy every day", or front... along with an image slogan that goes hand in
the red-brown Nescafé coffee box represents warmth, hand with the way to lead a free, happy, and fulfilling
along with with images of coffee to remind you of the life colors when children can pursue the things they are
taste, and some other items (NESTLEMILO, 2021) passionate about.

7.3.Customer care - Consumer advice: On the packaging of each Milo product, Ovaltine also focuses on developing customer support
service customers will be given detailed and thoughtful services to serve customers, but in general, Ovaltine still
instructions on how to use and preserve the product, if does not have too many outstanding points. In addition,

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you still do not really understand or want advice. For more Ovaltine also strengthens links, interactions, and
information about the product, on the packaging of each supports diverse customers through Facebook, YouTube
product there is a phone number so that in case you want channels,.... with a hotline to support and answer
advice, you can contact us. customer questions.
- Purchase support: For customers who do not have time Currently, the Ovaltine Vietnam Facebook page has
to shop, they can easily shop through online sales sites more than 75,787 followers. In addition, Ovaltine also
such as lazada, shopee, sendo, ... focuses on customer care through promotions and
- Additional services for consumers: In addition to the purchase support through direct sales channels.
above services, Nestle also provides many additional
services for consumers, as well as customer care
programs. Milo milk's website offers advice from experts in
taking care of families and children, creating a place where
parents can discuss with each other about raising
children, ... Along with that are promotional programs that
allow customers to try out the product before making a
purchasing decision.
- Post-purchase service: After purchasing the product,
when encountering problems with the product, customers
can complain to receive advice on returning a new
product. All Milo milk products have contact information.
with the manufacturer or consumers can contact on the

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 official Milo website.

III. EVALUATE BUSINESS GOALS

1. Milo
Based on the analysis of Milo 7P marketing mix, it can be seen that the company has a well-defined strategy and has implemented various tactics to achieve
its business goals. The company has a strong brand image and a reputation for producing high-quality dairy products.The company has invested in various
marketing initiatives such as advertising, social media and promotions to increase brand awareness and reach a wider audience. has also diversified its
product portfolio by introducing dairy products and expanding into other product categories such as ber...In terms of pricing, the company offers products
at different price points to cater to different market segments. The pricing strategy is competitive and based on the value proposition offered to the
customer.The company also offers promotions and discounts to attract customers and increase sales. Milo has established a strong distribution network,
both online and offline, to ensure that its products are easily accessible to customers. The company has also focused on providing a positive customer
experience by training its employees, ensuring the quality of its products and services, and maintaining a clean and inviting atmosphere in its stores. my
storeOverall, based on an analysis of Milo's 7P marketing mix, it appears that the company is on track to achieve its business goals. The company has
implemented a variety of tactics to build a strong brand, increase sales, and deliver a positive customer experience. However, it is important to note that
the success of a marketing strategy depends on many external factors such as market competition, consumer behavior, and economic conditions, which can
affect a company's ability to achieve its goals.

2.Ovaltine
Based on the analysis of Ovaltine's 7P marketing mix, it can be seen that the company has a clear strategy and has implemented various tactics to achieve
its business goals. The company has a strong brand image and a reputation for producing high-quality dairy products.In terms of products, Ovaltine offers a
wide range of dairy products and dietary supplements….The company has also introduced new products to meet the changing preferences of
consumers.Ovaltine's pricing strategy is competitive and based on the value proposition brought to customers. The company offers products at different

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price points to cater to different segments of the market. The company also offers promotions and discounts to attract customers and increase sales.The
company has a strong distribution network, both online and offline, to ensure that its products are casily accessible to customers. The company has also
focused on providing a positive customer experience by training employees, demonstrating the quality of its products, and maintaining a clean and inviting
atmosphere in its stores. Overall, based on the analysis of Ovaltine's 7P marketing mix, it looks like the company is on track to achieve its business goals.
The compa

PART B

I. EXECUTIVE SUMMARY
The company is a leading enterprise in the dairy processing industry, currently accounting for 75% of the dairy market share in Vietnam.

- Conduct market research: To determine the target market, customer behavior, competitors, and trends in the Vietnamese coffee market,
market research is crucial.

- Develop a unique value proposition: To differentiate Milo from competitors, it is important to develop a unique value proposition that is
relevant to the Vietnamese market. This may include promoting high-quality ingredients, unique flavors, and brand convenience.

- Develop a marketing campaign: Market analysis and value proposition should serve as the foundation for a comprehensive marketing
strategy. This may involve using advertisements on both classic and new media platforms, such as television, radio, billboards, and social
media.

- Building partnerships: Milo can build partnerships with local coffee shops and retailers to expand its reach in Vietnam. These partnerships
may involve co-branding, product placement, or joint advertising.

- Offer promotions and discounts: Promoting sales and discounts can draw in new clients and encourage recurring business. Free samples,
package offers, and discount coupons all fall under this category.

- Participate in events: Milo may reach its target audience by participating in regional events like dairy festivals or trade exhibits, which can also
increase brand recognition.

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- Monitor and measure success: It is crucial to frequently assess the marketing campaign's effectiveness and modify methods as necessary.
Sales revenue, market share, internet traffic, and social media engagement -are a few examples of key performance indicators (KPIs).

(NESTLEMILO, 2023)

II. SITUATION ANALYSIS

1. Market description
The Vietnamese dairy industry has so far seen consistent expansion in recent years. Increased knowledge of milk's advantages for human
health and the rise of Vietnam's economy, which results in higher household incomes, is what has caused this growth. Milo has made inroads
into foreign markets while maintaining a dominant position in the home dairy sector. Due to its brand's reputation and high caliber, Milo has
potential in the Vietnamese dairy industry. high during a long period of operation. The high regard with which Milo's products have always
been held for both quality and food safety has attracted many domestic customers. Additionally, Milo has the capacity to adjust to shifts in
consumer demand and produce new goods. Its product line has been diversified to include dairy products like yogurt, ice cream, and other
useful items in addition to fresh milk and powdered milk. They are able to maintain their competitiveness and grow their market share as a
result. Nonetheless, It should be mentioned that the dairy industry is very competitive due to several domestic and international players. It will
need constant work and investment in R&D, product quality control, and successful marketing tactics for Milo to maintain and strengthen its
competitive edge (NESTLE, 2022)

2. Competion and difference

Vietnam's dairy industry is incredibly vibrant and competitive. There are several domestic and foreign competitors striving for market share
and customer interest. A number of factors, including product quality, pricing, brand image, distribution methods, product innovation, and
marketing techniques, contribute to the heated rivalry. The industry is now seeing increased competition due to consumers' shifting
preferences, increased health awareness, and demands for a variety of dairy products. (GLOBAL, 2022)
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• Market Leadership and Brand Recognition - Vinamilk is one of the market leaders in the Vietnamese dairy sector, and its brand is well-known
to customers and has a solid reputation. It has an edge over many rivals because to its established presence and reputation. Other companies
may not be as well-known or may have just entered the market, which might make it difficult for them to compete with Vinamilk's well-
established position.

• Product Portfolio and Diversification - Vinamilk has a wide range of dairy products, including milk, yogurt, cheese, condensed milk, and
nutritious items for different age groups. Vinamilk also boasts a diversified and extensive product portfolio. While other dairy companies may
only provide certain product categories, Vinamilk 's wide selection of products enables it to serve a variety of customer groups.

• Investment in Research and Development - Vinamilk has constantly made investments in R&D, resulting in new product developments and
ongoing improvement. Their dedication to R&D helps businesses stay ahead of the curve when it comes to adapting to shifting customer wants
and tastes. Some other dairy companies might not put as much money into research and development, which can restrict their capacity to
launch new and improved products and lower their competitiveness.

• Distribution Network and Market Reach – Vinamilk has a strong, far-reaching distribution network that allows its goods to be sold in a variety
of urban and rural areas throughout Vietnam. Despite the fact that rival companies may have distribution networks, Vinamilk 's broad reach
enables it to have superior market penetration and accessibility, particularly in rural places.

• International Market Presence - Vinamilk has effectively accessed international markets and extended its business outside Vietnam, creating
a worldwide footprint and generating money. Other dairy companies could be largely domestically oriented, missing Vinamilk 's global
exposure and income diversification.

Due to its market dominance, diversified product line, R&D investments, vast distribution network, and successful international growth,
Vinamilk has a significant position in Vietnam's brutally competitive dairy sector. Other dairy companies fight in the market using their distinct
advantages, but Milo has been able to maintain a significant competitive advantage in the fast-moving dairy industry thanks to its established
market presence, well-known brand, and wide range of product offers. Other companies must differentiate themselves via product innovation,
branding, efficient distribution, and strategic market growth in order to compete effectively (GREENWAY, 2018)

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3 Macroenvironment of Nestle Milo

3.1 Political and legal factors

Vietnam has a stable political system that is very convenient for the business activities of enterprises. This greatly affects the marketing
activities of businesses and marketing decisions are strongly influenced by the development of the political environment. This environment is
made up of laws, government organizations, and pressure groups that have an impact on and limit different community organizations and
members.
-Political and legal factors affect all businesses in a territory, and legal and institutional factors can threaten the viability and growth of any
business. Milo must adhere to regional legal and institutional requirements while conducting business in an administrative unit. We will look at
stability based on regional factors. Such conflicts can create favorable conditions for business activities and conversely, where institutions are
unstable, conflicts will adversely affect business activities in their territories.
-Tax policy: Import and export tax policies, consumption tax, income tax, etc… directly affect the revenue and profit of enterprises.
-Policies: Government policies will affect Milo, they can create profits or challenge Milo businesses, such as trade policies, industry
development policies, economic development, taxes, etc., as well as competition regulation and consumer protection policies. Create an equal
environment for Milo's businesses to operate. (HBR, 2023)

3.2. Economic

Vietnam's economic factors are on the rise, there are many new exponential cooperation and linkage opportunities. This has a great impact on
the research enterprises in our country. Specifically with Milo: The current economic growth rate of our country is quite high, creating many
opportunities for Milo to invest in expanding production and business activities. However, at present, Vietnam's economy is quite unstable;
The increasing growth rate but accompanied by rising inflation and a devaluation of the currency has caused difficulties for many business
activities of Milo, especially the procurement of imported materials. (HBR, 2023)
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3.3. Technology factor

In order to meet the increasing demands of consumers, in recent years, Milo has constantly
innovated technology, invested in modern machinery and equipment, and improved management and product quality. Advanced processing
technology, UHT sterilization technology and aseptic filling technology are becoming important factor in creating fresh flavors and can keep
them for up to 6 months without chemicals. preserve. In addition, cold storage and UHT sterilization processing are also being used to help
eliminate harmful bacteria and preserve the natural flavor, nutritional components of the product. Information technology is also applied by
Milo to improve management and business efficiency, provide widespread and timely services, in addition, it is also the fastest way to reach
consumers, in order to create competitive advantages. of Milo in the market (HBR, 2023)

3.4 Demographic environment

In 2024, the natural population growth rate is positive because the number of births exceeds the number of deaths by 879,634 people. Due to
migration, the population decreased by 94,928 people (DANSO, 2024). With a rapidly growing population, this will help Nestlé's market
expand, create more consumption opportunities and increase the business's revenue. The increasing standard of living of people also creates
favorable conditions. Conditions for Nestlé's coffee, milk, confectionery, etc. production industries to develop. Depending on age, Nestlé has
different customer targets. In 2018, Vietnam had more than 14 million children recommended by the National Institute of Nutrition to
supplement nutrition every morning. This is the age that needs the most energy for children's play and learning activities. Nestlé Milo focuses
mainly on children aged 6-14 years old. Due to regional differences, regions will have different tastes. Nestlé also captures and produces
products with many flavors. Unique characteristics. Thanks to understanding the population situation, urban and rural population growth,
migration rate..., Nestlé offers many products that keep up with market trends.

3.5 Environmental

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Vietnam's natural conditions are relatively good, with few natural disasters. Coffee grown in Vietnam includes Robusta coffee accounting for
90% of the area, tea coffee 10% and jackfruit coffee 1%. Robusta coffee likes to live in the tropics, with suitable altitudes below 1000 m,
temperatures around 24 - 29°C, rainfall over 1000 mm and requires a lot of sunlight to grow these types of coffee in Vietnam. (VCCGROUP,
2020) This explains why Vietnam has become the leading green coffee supplier in the world. With the above advantages, producing instant
coffee at low cost is extremely favorable for Nestle Group in Vietnam.

3.6 Social

Because Vietnam went through difficult times, the issue of nutrition was almost forgotten. Due to war and poverty, people can only think about
how to eat enough. Today, thanks to the strong development of media, people are more aware of the importance of daily nutritional needs.
Demand levels have increased from 0.50 kg in 2005 to 7.50 kg in 2011. This positive change could open up a promising market for Nestle in the
country to enter. In general, the beverage market in Vietnam is a market with a lot of potential, especially in cities and towns, where modern
lifestyles are becoming increasingly popular, leading to an increase in food demand. processed and packaged products. In addition, nutritional
drinks are also becoming popular with the consumption of nutritional drinks. We can see that the Vietnamese beverage market will develop
strongly in the near future. upcoming. Requires companies to continuously improve their products to meet the increasing needs of consumers.

III. Marketing strategy

1. Segment

1.1. Demographic

Gender - all genders because milk is an easy-to-use product, regardless of gender.

Age - Nestle has a wide range of dairy products that can be used by both adults and children.

Income - Nestle has a price ranging from 20 to 1 million VND, suitable for all people with low to high income.

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Occupation - Nestle dairy products have many uses, supplement many nutrients for the body, suitable for all occupations from students, students to
workers of different professions.

1.2. Psychology

In Vietnam, when customers buy Nestle's dairy products in particular or all other dairy products on the market in general, they all have the purpose of
choosing clean milk, providing sufficient nutrients for the body and at a reasonable price pocket of the customer. So those thoughts will influence the
buying behavior of customers. In which, Nestle is the most popular because this is a product that is widely available in all stores with reasonable prices and
fully meets the requirements of consumers. Besides, Nestle's repair products are advertised heavily on websites, newspapers and television in order to
bring customers the best products.

1.3. Lifestyle

Most of Nestle's milk buyers are of working age, are parents and students with the aim of improving resistance to clean milk products. Besides, the
advertising of products heavily by famous people partly affects customers and their buying experience.

2. Positioning strategy
Marketing strategy of Nestle has successfully applied the concentrated marketing strategy to effectively occupy the high-income segment. Nestle wishes to
improve the physical fitness of children and aim to nurture young talents like preschoolers is considered the mainstay of the nation tomorrow. The middle-
class population is increasing and they are starting to focus more on the value of the product rather than the value of the product price. This will result in
100% organic Nestle being able to have more customers.

3. Differentiation
Nestle's competitive advantage

– Overall market leader and number one or two brand in most sectors.

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– The enormous scope of Nestlé's business provides significant economies of scale in production, marketing and administration.

– The research and development capabilities enable the Company to lead in innovation for maximum portfolio flexibility.

Supplier

Nestlé strictly manages suppliers with separate codes. Nestlé requires these suppliers to comply with standards, ensuring environmental sustainability,
labor, safety and health, and employment. This is carefully monitored by Nestlé through each stage and stage of supplying raw materials and products.

• 96% of suppliers, key suppliers and quality suppliers conform to Nestlé's sourcing policy.

• 75.2% of the volume of Nestlé purchases is consistent with Nestlé suppliers. For agricultural raw materials and packaging materials that are supplied
through complex trade channels.

Nestlé brand

Most people know Nestlé through their brands. Nestlé's portfolio includes virtually every food and beverage category – giving consumers tastier and
healthier products to Enjoy at every mealtime and throughout all stages of life including times of special nutritional needs. Below is a sample of some of
Nestle's brands:

 Baby food: Cerelac, Gerber, Gerber Graduates, NaturNes, Nestum

 Bottled water: Nestlé pure Life, Perrier, Poland Spring, S.Pellegrino
 Cereals: Chocapic, Cini Minis, Cookie Crisp, Estrelitas,...
 Drinking milk: Juicy, Milo, Nesquik, Nestea juice
 Chocolate & confectionery: Aero, Butterfinger, Cailler, Crunch, Kit Kat, Orion, Smarties, Wonka
 Coffee: Nescafé, Nescafé 3 in 1, Nescafé Cappuccino, Nescafé Classic,...
 Ice cream: Dreyer, Extreme, Haagen-Dazs, Mövenpick, Nestlé Ice Cream…

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  Nutritional health care: Boost, Nutren Junior, Peptamen

Nestlé quality management system

Nestlé's Quality Management System is the foundation that Nestlé uses globally to ensure food safety, conformity to quality standards and create value for
consumers. Nestlé's internal quality management system is audited and certified by an independent certification organization to demonstrate compliance
with internal standards, ISO norms, laws and regulatory requirements.

Nestlé has a long history of working with farmers in rural communities to help them improve the quality of their products and adopt environmentally
sustainable farming practices. Quality management systems not only ensure Nestlé's continuous access to high quality raw materials. It also allows farmers
to protect or even increase their income. Often the living standards of entire rural communities are raised as a result. This system helps address important
global environmental and social issues.

Marketing sales

According to the function of trying to build Nestlé's brand, Marketing is right at the center of Nestlé's work. Indeed, “Branding the Nestlé Way” is a unique
process that sets Nestlé's marketing functions from outside to within the industry. Nestlé's marketing team provides an end-to-ead marketing service
reflected in three key areas: brand management, communications and consumer insights. More importantly, marketing is not a stand-alone activity here –
Nestlé focuses on the consumer, ensuring that Nestlé provides a seamless service, working hand-in-hand with Nestlé's customers and sales teams.

Services

Through science-based nutrition products and services, Nestlé will help improve people's quality of life by providing medical support and care to consumers
with special needs. Nestlé continues to help people lead fuller, happier lives by developing and delivering innovative, effective, nutritional products
scientifically proven to have functional benefits, designed to help children healthy growth and development, strong adults; to promote peak physical and
mental performance and to address weight problems.

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Differences between Nestle and other dairy companies:

a) Nestlé milk (Milo) and TH True

Nestle (Milo) has more product lines, more diverse in types, designs, and styles such as fresh milk, pasteurized milk, reconstituted powdered milk, and
sweetened condensed milk. Meanwhile, TH True Milk only focuses on producing pasteurized fresh milk, drinking water and ice cream. The nutritional
ingredients of Nestle milk (Milo) are mainly Protein, Iron, Calcium, supporting immunity and helping children increase height better.. As for TH True Milk,
each product has its own value and provides for each specific goal. groups like TH School Milk, TH True Yogurt Top Kid/Top Teen. Nestle (Milo) focuses on
developing delicious, attractive flavors, suitable for all tastes. TH True Milk is considered to have a fattier milk taste and less sugar so the flavor will be more
delicate.

b) Nestle(Milo) and Ovaltine

Nestle(Milo) is the leading milk brand in Vietnam while Ovaltine originates from the Swiss company Wander AG. Nestle(Milo) has many products for
customers to choose from while Ovaltine mainly focuses on liquid milk products. The price difference between Nestle (Milo) and Ovaltine is quite clear, the
price competition is extremely close.

c) Nestle(Milo) and Nutifood

Nestle(Milo) offers many types of barley milk while Nutifood only focuses on formula milk. Nestle (Milo) products target everyone, while Nutifood only
focuses on children and pregnant and postpartum women.

4. Marketing mix 7ps

4.1. Product
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4.1.1 Products
Some of Milo's main product categories include:

• Canned milk: New Milo teen provides protein and calcium to help develop height and strengthen bones.

• Instant milk bags: Convenient and suitable for consumers' diverse choices when they want to change their preferences.

• Milk powder in plastic cans and rectangular paper boxes: Pure milo powder, helping consumers prepare and mix according to their taste,
suitable for both adults and children.

In addition to dairy products, Milo also develops many other products such as: breakfast cereals, sandwiches, lozenges, etc. all named Milo
and have similar flavors. This helps businesses provide customers with more choices, solving many problems that powdered milk products
cannot meet such as convenience and speed. (NESTLEMILO, 2023)

Thereby, we can see that Milo has tried to diversify its products to meet customer needs, for example, Milo in cans with added protein and
calcium to provide a source of lasting energy for children. baby or Milo breakfast made from milk and 3 types of cereals to help supplement
necessary nutrients. Because the main ingredients are cocoa, the products are all sweets, can be used directly or easily combined. with other
ingredients to create a new and attractive dish such as Milo shaved ice, Milo milk tea,... With the drink product line, also known as liquid milk,
for growing children, the brand The company has focused on developing 3 main products including: Milo milk in cans, Milo milk in cans and
Milo powder.
4.1.2 Product brand

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Brand: Nestlé
Nestlé's first commercial registration symbol was based on the family coat of arms of Henri Nestlé, with the image of a bird in a nest. This takes
its cue from the family's name, which means "bird's nest" in German. Henri Nestlé transformed his family crest by adding three baby birds
being fed by their mothers, creating a visual connection between his name and his company's infant cereal products. He began using this
image as a commercial symbol in 1868. Today, the same bird's nest logo continues to be used on Nestlé products globally, and has been
changed over time. As for Milo milk products, the company's name was changed to red and placed in the same yellow frame as the word Milo.
The entire Milo milk product line has the same branding in design and color. Although the design is simple, it still highlights the Milo brand
along with the company name on a green background. (NESTLE, 2024)
4.1.3 Product characteristics

Among the countless types of milk on the market, when mentioning chocolate-flavored milk with added nutrients, Milo will immediately
appear in everyone's mind. From the beginning, Milo has always considered supplementing nutrients from natural protein-rich ingredients to
ensure users' health as a guideline for the brand, and products can be easily seen. Milo's is always known for being a quality and safe product.
To be able to create a difference in products, helping to compete with other brands. Milo milk has always been famous for its natural
ingredients and unique, unmistakable chocolate flavor. Milo is always committed to the quality of products rich in nutrition and energy. This is
also the characteristic and outstanding advantage of Milo.

4.1.4 Product packaging

Milo's design features green as the main color, standing out among other milk brands when combined together. The packaging also has images
of children playing different sports such as basketball, soccer, ...creates a very dynamic feeling. On the other hand, necessary information such
as ingredients, instructions for use, etc. are printed fully and clearly to help buyers grasp the information and easily evaluate the product and
make purchasing decisions. . Milo's packaging is designed in a variety of ways, from box to package, helping buyers choose the right product.
40
Canned Milo is convenient to use right away. In addition, putting it in the refrigerator also saves space. Canned Milo is designed to not be
distorted when placed in tight places like a briefcase, and the chilling time is also faster. Powdered Milo Packed in small paper bags or large
jars, buyers can choose the appropriate volume for their frequency of use. The brand is designed without too much fuss with elegant, eye-
catching colors to create a good impression on customers. The product name and uses are shown in a clear summary right in front of the
product to help customers understand product information easily, quickly and conveniently so that customers can easily give information.
decide to buy the product (NESTLEMILO, 2021)

4.1.5 Product quality

In many countries around the world, both developed and developing countries, the demand for consumption and use of organic food has
increased by an average of 20%, in some countries by up to 50% each year. Understanding this need, dairy companies around the world have
also produced more and more types of milk with completely natural ingredients. Since its establishment, Nestle has always considered
developing the brand based on raw materials. Natural ingredients (Milo milk is made from barley) and ensure the health of consumers.
Therefore, Nestle products are always appreciated by consumers for their safety and quality, Milo milk products are no exception, which has
created a difference and a place in the hearts of consumers. (NESTLE, 2022)

4.2. Price

4.2.1 Factors affecting price

~ Production costs: Nestle in Vietnam has promoted and expanded the Milo production line worth 37 million USD instead of importing as
before. Officially, by 2005, Milo liquid products were produced in Vietnam. Therefore, business profits will also increase due to saving on
import costs.

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~ Input raw material costs: Nestlé continuously expands its production scale in Vietnam by building a series of factories to produce its product
portfolio. This gives Nestle Milo a scale advantage, exploiting the experience curve effect and cutting costs, when in Vietnam resource costs
such as cheap land rent and affordable labor resources are available. low salary. In addition, preferential tax policies in Vietnam are also of
interest for Nestlé to decide to invest towards the goal of significantly lowering product costs. Currently, up to 90% of products that consumers
use in Vietnam are produced by Nestle factories exported on the spot

~ Competitors' prices: Nestle operates in a product line where consumers have a high bargaining position. From here, the pressure on Nestle
to reduce costs in industries providing products with popular demand like the above products is extremely large. Typically, the Milo product in
Vietnam, a 180ml box priced at 11,000 VND, has been replaced by a 180ml product priced at 7,000 VND. Compare with Vinamilk 180ml
sterilized fresh milk: 39,500 VND/lot of 4 boxes, difference of about 2,000 VND. (NESTLE, 2024)

4.2.2 Pricing strategies

The Milo milk product line is aimed at parents with children from 6-14 years old, with input sources ranging from low to high. With the
determination from the beginning, the product is aimed at parents with children from 6-14 years old across the country. Therefore, the price
of the Milo milk product line is relatively suitable for the average monthly income of children. households in Vietnam (with an average GDP per
capita of 2,200 USD/year according to the Department of Statistics in 2016). The difference is not significant compared to the prices of other
dairy product lines. Milo liquid milk paper box 180ml: 27,500 VND/lot of 4 boxes, Milo Balanced Breakfast 180ml: 25,000 VND/lot of 3 boxes,
Milo low sugar 180ml: 27,500 VND/lot of 4 boxes. In addition, the brand also announced that the actual price of the product may vary slightly
depending on the business policy of each store or supermarket.

4.3. Place

4.3.1 Distribution strategy

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Because Milo has been present in Vietnam for a long time and Milo products belong to the category of common consumer goods, Nestlé has
applied a mass distribution strategy for Milo products, helping the product become popular. Widely distributed everywhere nationwide, from
big cities to rural areas and provinces, Milo can be easily found in supermarkets, convenience stores, grocery stores,...

Supplier: Nestle Vietnam Company => Retailer, Wholesaler => Customer (NESTLE, 2024)
The company always tries to bring products to consumers in the most convenient way. In addition, widespread distribution will help increase
product recognition among buyers.
4.3.2 Distribution channels
Nestle is a company specializing in the FMCG industry, this is the company's key product group related to food and daily necessities. The two
types of distribution channels used by Nestle are wholesalers and retailers. Both channels have many advantages in terms of high order
frequency, short shipping time and large customer base. These channels also have their own functions such as transactional functions (contact,
promotion, negotiation, risk taking), logistics functions (physical distribution, storage, classification) and support functions. (research,
sponsorship).
In addition to cooperating with agents and supermarkets nationwide, Milo also cooperates with e-commerce platforms such as Tiki, Shopee,
and Lazada. Thanks to the strong development of information technology, Vietnamese consumers' shopping habits and behaviors have also
changed significantly. With the decrease in purchasing frequency and increase in purchase volume per purchase, Vietnamese people also tend
to order online in batches or cartons rather than buying retail like in the past. Just go to Milo's official store on these applications, there are a
full range of products for buyers to choose from, and you can also order in large quantities, helping consumers save on shipping costs as well.
like time to go shopping (KIM THẢO, 2023)

4.4 Promotion

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4.4.1 Advertising
Nestle has tried to implement an advertising strategy by emphasizing the product's outstanding features and utilities by making customers
believe that Milo's products can supplement nutrition and help children be more active. Realizing that nowadays, most parents tend to want
their children to focus on studying and achieve better academic results, forgetting that sports plays an important role in children's
comprehensive development. . Through sports, children not only practice physical fitness, but also learn many valuable lessons, cultivate
positive character and attitude, and care for people. Therefore, the marketing campaign for the program "Dynamic Vietnam" has been
promoted by the brand through mass media such as television, websites, newspapers,... by running Mainly its advertisements for campaigns
and products on television and social networks. Speaking of this, it is impossible not to mention the TVCs in the "Dynamic Vietnam" campaign,
such as the TVC "Real Champion", TVC "Thank You Mom",... thereby encouraging mothers Actively let children participate in more physical
activities. Milo has also continued to reach a wider audience through the community voices of several KOLs. After launch, Milo's advertising
campaign reached 19 million views. This has created success for Milo in the international arena when it won the prestigious APAC Effie Awards
2018 thanks to this campaign. It is known that Nestlé Milo is the first Vietnamese F&B brand to receive this award. (GREENWAY, 2018)
In addition, the company has also invested in outdoor advertising by placing large billboards on crowded roads. Banners and billboards can be
designed to be a bit unique in size and image but still do not lose the meaning of the message and Milo's unique personality. . Nestle also
delivers its advertising to consumers in many new and innovative ways, such as with interactive video technology in department stores and
supermarkets and through projection screens or printed posters and stands. hanging in grocery stores. Specifically, Milo has cooperated with
Asia Shopper Marketing to install more than 100 3D projectors at the CO.OPmart and Lotte Mart supermarket systems to provide information
about current promotions, as well as product information. products are being sold on the counter. (KIM NGOC, 2024)
4.4.2 Promotions
Promotion is one of the indispensable steps when implementing Milo's marketing campaign. Up to now, Milo has offered many promotional
activities such as buying Milo and getting free swimming goggles, school supplies or scratch cards, etc. The products created are all products

44
suitable for users' needs. use by young children. Milo has run promotions in many different forms. Customers will receive learning kits and toys
when purchasing the product. In addition, in convenience stores or supermarkets, when purchasing Milo brand products at a set price, the
buyer will receive additional vouchers, or when purchased with other products, they will receive a discount. (NESTLEMILO, 2023)
4.4.3 Public relations

Nestlé is always mentioned as a brand that always focuses on children's health. Nestlé's campaigns always aim to help children develop as
completely as possible. In particular, Milo and youth sports organizations create sports events, which is considered a useful and professional
playground with careful investment from the brand. There, Milo products were displayed and free drinks were given to all who participated.
This is an effective way to reaffirm the brand with products associated with sports activities, health training, creating sympathetic view from
customers. Not only that, in order to enhance the role of sports, Milo organized a walking program "Milo - Green Energy Journey", the event
attracted about 10,000 people, mainly students and teachers. teachers and parents from primary schools in the capital Hanoi. After 2 years of
organization in Ho Chi Minh City, the program has attracted more than 20,000 participants. In addition, the event also had the enthusiastic
participation of athletes, famous artists and experts in education and child nutrition such as MC Thanh Bach, player Cong Vinh, and the face of
The Voice. Vietnamese children Quang Anh... The program used all funds donated by the Milo brand and from souvenir sales at the event to
equip schools with sports equipment, specifically giving an additional 100 Standard sports equipment for 20 elementary schools in the city,
creating conditions for students to practice sports, develop physically as well as have more fun when going to school.. (NESTLE, 2016)

4.5. People

4.5.1 Customers

~ Parents with children from 6 to 14 years old, want products that can support physical and intellectual development.

~ People who don't like coffee in the morning, need a drink to start the day and can help stay awake instead of coffee
45
~ Sports enthusiasts and students need products that can provide the energy and nutrition needed for study and physical activity.

~ People who like new, different and attractive things, like products with new breakthroughs in flavor instead of old products that are too
traditional and boring.

+ Children: are the main target group that Nestlé targets when launching products such as powdered milk, fresh milk, cereal, etc. The products
will help children grow and develop quickly physically as well as wisdom.

+ Adults: people aged 16-40 years old will be suitable for products such as coffee, soft drinks, candies, snacks, etc.

+ Elderly people: Nestlé has milks for the elderly to support strong, supple bones to maintain health.

4.5.2 Partners

Nestlé products are always highly appreciated for their appearance because Nestlé Vietnam has a close partnership with suppliers of raw
materials, packaging, equipment, etc. Nestlé Vietnam is always looking for A capable, reputable supplier with the ability to provide high quality
raw materials, packaging, and equipment to meet the production requirements of the business. There are also strategic partnerships with
distributors, supermarkets, retail stores, etc. Nestlé Vietnam cooperates with distributors to bring the company's products to consumers. used
quickly and conveniently. Nestlé cooperates with the Ministry of Agriculture and Rural Development and the Central Highlands Institute of
Agriculture and Forestry Science and Technology to distribute over 28 million high-yield disease-resistant seedlings to farmers to help them
increase income. Nestlé also signed with many partners to promote the brand, such as the Department of Education and Training of Ho Chi

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Minh City, which targets students, the National Institute of Nutrition, which targets mainly consumers, or the Stand Tall Vietnam Milk Fund.
Nestlé will support children in difficult circumstances to drink milk every day

+ Crazy infrastructure supplier, electricity and water repair

+ Raw material supplier

+ Manufacturing factory

+ Distribution house

+ Retail stores and supermarkets

+ E-commerce products

+ Transport unit

4.5.3 Employees

Nestlé has succeeded in building an ideal and effective working environment and culture: Frankness - Respect - Trust.

First, the Nestlé environment requires employees to be "Frank" at work. That is an important factor that helps each individual or group
accurately evaluate their performance to improve and develop.

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Second, all opinions and viewpoints are always "respected" from leaders to staff. Each member, no matter what position they hold, needs to
constantly improve their knowledge and skills. The spirit of eagerness to learn is considered an indispensable condition if you want to work at
Nestlé.

Third, "The greatest gift you can give a person is to believe in them" - a wonderful thing at Nestlé when everyone "Trusts" each other at work,
believes in the mission being carried out. every day, working together to bring the best products to consumers. They are always willing to
share knowledge and experience with their colleagues. Nestlé Vietnam always affirms that its staff are well-trained in professional knowledge,
professional skills and working attitude. Outstanding in Nestlé's human resources policy is its commitment to training Vietnamese leaders.
Currently, the proportion of Vietnamese people accounts for nearly 40% of the company's leadership team, 86% of senior management
positions and 99% of middle management positions. Nestlé has a personnel training policy that includes the following goals:

Integration training: The program is mainly aimed at newly recruited employees so that they can better understand the culture, corporate
organizational chart, regulations and work processes in the position they are recruited for.

Professional skills training: Enhance and help employees deepen their professional knowledge at work to take them further.

Soft skills training: During the working process, employees will learn the necessary skills in the department and position they are working in.

Leadership training: This program will help employees gain knowledge about leadership and management to prepare for higher-level positions
in the future. (NESTLE, 2022)

4.5.4 Shareholders
Nestlé Vietnam is a joint stock company, so the interests of shareholders are given special attention by Nestlé Vietnam. Nestlé Vietnam always
strives to bring profits to shareholders, while ensuring the sustainable development of the business. According to Nestlé Vietnam's 2022

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financial report, the company's largest shareholder is Nestlé Vietnam. Nestlé group, owns 99.9% of shares. Nestlé Group is a Swiss
multinational company, specializing in manufacturing and trading food, beverages and health care products. Nestlé Vietnam's second
shareholder is Investment and Development Joint Stock Company. Ho Chi Minh City Development (Saigon Investment and Development
Corporation - ICD), owns 0.01% of the shares. ICD is a Vietnamese real estate investment and development company. Nestlé Vietnam always
considers people as the most valuable asset of the business. Nestlé Vietnam always strives to build good relationships with customers.
partners, shareholders and customers.

4.6. Process

4.6.1 From a customer perspective

The Nestle brand offers a unique service experience in the Vietnamese dairy market. The brand focuses on high-quality ingredients,processed
and preserved using high-quality technologies to ensure safety to create the unique flavor customers seek.
4.6.2 From an organizational perspective
- The manufacturing process – Milo has designed and managed its service processes to ensure
consistency in the customer experience. Milo adheres to high-quality production processes to ensure that its products meet the requirements and
desires of its customers. The company controls the entire milk production process from input materials to packaging, ensuring quality and
consistency throughout, all of which are strictly controlled and monitored. The company has well-trained staff who provide customers with
personalized service and help them choose the milk that is best for them. This improves productivity and quality in delivering products and
services to customers.
- Advertising and marketing - using advertising channels such as TV, radio, newspapers, social networks, and websites to introduce their
products to customers. Milo uses marketing campaigns such as discounts, coupons, or promotions to attract consumers' attention. This marketing
process enhances brand recognition and attracts customers' attention.

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- Sales Milo’s - sales process can take place through many channels such as supermarkets, stores of large distribution chains, or online sales
channels. Sales staff are trained to understand the product well and answer any questions from customers.
4.6.3 Customer service
Services of Milo- In addition, Milo pays great attention to customer service. Milo's service processes are designed to deliver the desired
customer experience by linking different service operating systems. For example, the nutrition consulting service - Milo has a team of
experienced nutritionists who are always willing to advise and answer questions related to nutrition and the use of the company's products to
support customers more attentively. Besides, Milo has developed an online ordering and delivery service, allowing customers to enjoy products
at home, saving their time and effort. In addition, Milo also has after-sales service - Milo is committed to providing high-quality after-sales
service to customers. This may include handling complaints, providing technical support, or providing product-related information.
4.6.4 Customer relationship management
Milo built a customer relationship management (CRM) system to track customers' personal information, preferences, and feedback from
consumers. This helps Milo understand customers' needs and create appropriate marketing campaigns.

4.7. Physical Evidence

4.7.1 Sales space

Nestlé Vietnam has a system of modern product display stores, providing a convenient shopping experience for customers. In addition, the
company also cooperates with large and small supermarkets, grocery stores, etc. to display their products. Nestlé has a system of modern
product display stores, providing a convenient shopping experience for customers (NESTLEMILO, 2021)
4.7.2 Packaging and design
Nestlé Vietnam always focuses on designing product packaging that is beautiful, eye-catching and suitable for Vietnamese culture. For
example, the Milo Vietnam product packaging is designed with bright colors, images of active children and the slogan "Be healthy every day",
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or the red-brown Nescafé coffee box represents warmth, along with with images of coffee to remind you of the taste, and some other items
(NESTLEMILO, 2021)

4.7.3 Customer care service

- Consumer advice: On the packaging of each Milo product, customers will be given detailed and thoughtful instructions on how to use and
preserve the product, if you still do not really understand or want advice. For more information about the product, on the packaging of each
product there is a phone number so that in case you want advice, you can contact us.

- Purchase support: For customers who do not have time to shop, they can easily shop through online sales sites such as lazada, shopee,
sendo, ...

- Additional services for consumers: In addition to the above services, Nestle also provides many additional services for consumers, as well as
customer care programs. Milo milk's website offers advice from experts in taking care of families and children, creating a place where parents
can discuss with each other about raising children, ... Along with that are promotional programs that allow customers to try out the product
before making a purchasing decision.

- Post-purchase service: After purchasing the product, when encountering problems with the product, customers can complain to receive
advice on returning a new product. All Milo milk products have contact information. with the manufacturer or consumers can contact on the
official Milo website

III. ACTION PROGRAM

Marketing strategy Action program Time-bound Responsible
Person
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Towards sustainable "Accompanying health Start implementation Head of Department of
growth and consumer care for 1 million from 2012 to 2020 Milk powder Milo
health, with a focus on the Vietnamese patients and
elderly and the domestic elderly people”
market
Milo has been Milo organizes activities From May 31 to Managing Director
implementing for children on the June 4, 2022 of Research &
World Milk Day and occasion of World Development of Milo
International Children's Milk Day &
Day on June 1 for many International
years in order to develop Children's Day 1.6
the business
Develop people's lives, Milo and the rising milk April 14, 2023 Chairman of the Board of
create and create many fund Vietnam kick off the Directors of Nestle
core values 16th year journey in Company
Quang Ninh
In the idea of not leaving Nestle Milo gave 10 October 21, 2021 Managing director
any children behind, the billion VND and provided
community campaign 1 million glasses of milk
"You are Healthy, to children in need
Vietnam is Healthy" has afflicted by the Covid-19
assisted the company in epidemic.
gaining many positive
public perceptions.

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