I think that promotion is the main problem with MILO. There seems to be very little knowledge of the product among all age groups. I think that MILO needs to be promoted mainly as a sports/energy drink, because this really targets the younger market

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Giverny Robinson-Sivyer                Business Studies Coursework 2006

 

Page 2 – Introduction

 

Page 3 – What Is MILO?

 

Page 4 – What Is MILO?

 

Page 5 – MILO’s Competitors

 

Page 6 – Primary Research

 

Page 7 – Primary Research

Page 8 – Marketing Plan

  

Introduction

 

Nestle was founded in the 1860’s by Henry Nestle; a pharmacist who had developed a food for babies who could not breast feed. The company then merged with the Anglo-Swiss Condensed Milk Company in 1905. By this time, Nestle was operating in countries such as the USA, Spain and Switzerland. Profits rocketed during the war, milk powder being used instead of fresh milk, and quickly dropped afterwards. This opened opportunities to set up factories in developing countries, due to cheap labour. The company has continued to develop and be very successful in many countries all around the globe.

 

Some of the products sold include; baby foods, dairy products, cereals, ice creams, chocolate and confectionary, pet foods and bottled water.

 

One very successful product is MILO. Originally a powder which when mixed with milk, made a milk chocolate, milkshake style drink. It has been very popular in many countries, Australia being one of the largest markets. But it has never taken off in the UK.  Why? In the following pages I aim to outline and suggest solutions to these problems.

 

“MILO is a delicious, low-fat chocolate malt energy drink packed with essential vitamins and rich in flavour. A delicious and convenient energy drink for all family members – especially growing children and active people.”  

This brief paragraph [taken from the Nestle website] tells us about MILO as a product and of its target market. ‘Children and active people’

The name MILO comes from the Greek mythological character Milon who was famous for his feats of strength.

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MILO’s subjective features are that it is an energy drink, nutritional, comforting and warming. They show the drink as a sports aid which will give energy, hence the sporting logos on the packaging. Its objective features are its chocolate flavour, crunchy chocolate chunks that float on the top of the milk, brown in colour and chocolate smell. 

 

This is an example of a typical product lifecycle. The sales increase until they reach maturity and then they slowly start to decline. This is not always the case. Often, particularly with confectionary, the company will create a variation of the ...

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