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 product. E.g. Kit-Kat Mini’s. Or change the packaging e.g. Mars. Or give away free gifts with it E.g. cereals.
This is called an extended product lifecycle. It is shown on the graph by a decline and then an incline in sales over a short period of time.
In Australia, extensive was used to raise awareness of the product, these adverts targeted teenagers by using famous sporting figures to endorse the product. This has continued to be the successful way in which MILO has obtained and kept this particular section of the market to a very high percentage. However, this has not been the case in the UK. Since 1934, when MILO was first produced, advertising campaigns were used in Australia and since the 1960’s they have been used in Nigeria and other countries with developing economies. But the UK has never had any advertising campaigns to the degree that these countries have and still have. There is a distinct lack of awareness to the existence of MILO in the UK.
The MILO product range is large, possibly an indicator of an extended product lifecycle and drops in sales. The following are listed on the Australian MILO website as being part of the MILO product range:
1. MILO
2. MILO bars
3. MILO chilled dairy
4. MILO malt
5. MILO mousse
6. MILO PETERS ice cream
7. MILO ready to drink
8. MILO Powder
9. MILO tetra pack
MILO’s competitors include sports drinks such as:
∙ Lucozade
∙ Red Bull
∙ Adrenaline Rush
∙ 180 energy
∙ Red Devil
∙ Jolt
∙ V energy
And comfort drinks such as:
∙ Horlicks
∙ Cadburys High Lights
∙ Ovaltine
∙ Green and Blacks organic hot chocolate
∙ Supermarkets own brand hot chocolate and malt drinks
∙ Galaxy hot chocolate
∙ Maltesers hot chocolate
MILO’s USP (Unique Selling Point) sets it aside from other brands because it isn’t seen in any other product.
MILO’s USP is its crunchy topping.
MILO costs around $5.95 or £2.50 per 240g tin
These show the main competitors in the UK
Primary Research
As a group of four we went out into Hailsham town centre and ask people to do a questionnaire for us to establish what it was that MILO was lacking.
Age10-21
Age 22- 51
This shows us that despite the lack of awareness of the product, people would be willing to buy the product. It also shows that it would be more popular with a younger generation.
My marketing plan will look at the four P’s. Product, Place, Price and Promotion. These are essential to the success of a product.
Product – From my primary research it seems that MILO already appeals to the UK market, there doesn’t need to be much change in the product in itself. The only comment I did have was that, due to the ‘age we live in’ a convenient ready-made form would probably be very useful. So this would probably be a good product to launch and advertise along side the MILO original format. Pople generally liked the packaging, comments were very positive. “Bright” “eye-catching” “relevant” and could be improved by using famous and popular sporting stars to endorse the products, e.g. David Beckham.
Place - because of the comment about convenience it seems that vending machines in places such as train stations, large shopping centres and sports establishments, and in garages as energy drink could help concentration on long drives and would be an alternative to coffee in ready made form. Also in super markets along side hot drinks in tin forms and in the fast food and energy drinks sections in ready made forms. It would also be a good idea to have mobile vans that went to large sporting events to distribute the ready made form and bars. Gradually, the bars could be bought in and sold in confectionary stores and garages.
Price – the price of MILO in the Malted powder drink tin is around the same prices as other hot drinks, it is also in the middle of the price range which allows it to seem a desirable product as it isn’t too cheap, but still seem good value for money as it isn’t ridiculously expensive.
Promotion – 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 and could very easily take advantage of the idolism of sports stars. I think that Nestle should take advantage of the next big sporting event. Such as the winter Olympics, and sponsor the British teams which would not only give a lot of advertising opportunities, but would also give opportunities to have mobile vans at the event to raise more awareness and give free samples. It would also be sensible to give free samples at super markets and in shopping centres where large amounts of people will see and sample the product.
A television advertising campaign would also be sensible as 99% of families posses at least one television. This should be done using sporting idols playing their sport and endorsing the product.
Conclusion
I think my project was carried out well and that my ideas were relevant and achievable.
However, I think that if I did the project again, I would do much more project research, and take a bigger questionnaire to more places to get a wider viewpoint of the public. I do think that I have used my research well and to as higher extent as possible and I have based my ideas on my research and it is therefore relevant and accurate.
I also think that my ideas are practical and achievable and could aid Nestle in successfully launching MILO in the UK.
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