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Branding Design and Management
DSN 2153
Branding Breakfast MILO Campaign
Prepared by
Peter Wong Yew Min
DGD4-10/15-00022
Prepared to
Miss Haryati binti Mahmod
Date Submit :
Table of content
Chapter 1 : Introduction to breakfast Milo campaign Branding
1.0 Introduction to breakfast Milo campaign
1.1 Rebranding
1.2 SWOT Analysis
1.3 Target Market
1.4 Marketing Mix (4Ps)
1.5 Brand Promotion
Chapter 1 : Introduction to branding breakfast Milo campaign
1.0 Introduction
Breakfast can be defined as the first meal of the day, which is usually taken early in the
morning before we start our daily routines. Human body is like a car whereby it needs the right fuel,
add extras like quality protein sources, antioxidants, healthy fats, in order to keep high-performance
car engine going strong. Healthy breakfasts are significantly important in order to produce optimum
performance.
This proposal is to branding a breakfast campaign using Milo product. Milo is a good product
for breakfast. Milo is a milk beverage with chocolate and malt, produced by Nestlé and originating
from Australia. It was developed by Thomas Mayne in 1934. Milo is also manufactured in other
countries, including Singapore, Malaysia, China, Thailand, Indonesia, Philippines, Vietnam, New
Zealand, Hong Kong, India, Japan, Jamaica, Trinidad & Tobago, Chile, Colombia, Peru, Nigeria,
Kenya, Ghana, Papua New Guinea, South Africa, Sri Lanka, Syria and Taiwan. The name derives
from the famous Greek athlete Milo of Crotona, after his legendary strength.
Figure 1 Milo
1.1 Branding
This report is about branding club for breakfast Milo campaign. Branding make nothing into visual and
written communication. Branding make a thing can be seen by ourselves and can be share to others.
Brand is not a logo, corporate identity, advertising and identity. Branding create a brand confidence,
passion, belonging, action, belonging, security and a set of unique values. In 17-century, branding
was use on the cattle, for knowing the belonging. Later, branding is using on wooden case for
knowing the source of wine. Brand make a guarantee of source and quality.
1.2 SWOT Analysis
Strength
Milo only focus on chocolate energy drink and it
is a unique selling point. It is available in different
type, shapes and sizes. Milo is worldwide, sell in
other countries too. Big sales and
promotion/advertising done in Malaysia and also
other countries.
Weakness
Milo only has one flavour. Same packaging,
design of tin and labelling never has been change
before.
Threat
Milo has a lot of similar product competitors, for
example Vico, Horlick, Ovaltine and etc. Some
are well known successful brand too. Competitors
have diversity in packaging such like bottles,
cans, pouches and more. They could increase
promotion or cut prices to aggressive marketing
tactics.
Opportunity
Milo increases awareness of health because Milo
is an energy drink. Milo also increased fitness
industry and media available such as mobiles or
Internet. Milo also gives sponsorship through
some sporting events.
Table 1 Swot analysis
1.3 Target Market
1.3.1 Target Age:
Milo can be easily target by various age group. Milo targeted to growing state people which is
children and youth. The target age is around 3 to 25 years old. It is because Milo contents
additional nutritional such as vitamins and minerals which is important to growth state people.
1.3.2 Sex:
Women is higher rate customer than men. Women usually shop for their family. Especially when
these women become a parent or a mother. They will buy Milo to their children when they know Milo
is good to their children. Sometime, they buy Milo is because they know their children like Milo.
1.3.3 Location:
Malaysia is the world’s largest consumers of Milo. Most Malaysian like the Milo because it is cheap in
Malaysia. Milo create many event in Malaysia, its make this product become well know. Beside event,
Milo do advertising and sponsor in Malaysia, such as school sport event for a free Milo drink. It attract
many children become Milo lover.
1.3.4 Profession
Health conscious people and sport lover would buy Milo. This is because Milo has lots of nutrient and
gave energy. Nestle target people in the higher income groups. People with blue collar jobs can be
targeted by telling them that the Milo will help them in their daily routine. Life cycle stage can also be
important because families with younger kids will want to buy Milo.
1.3.5 Psychographic
Social class and life style
People belonging to the higher social classes tend to spend more on luxuries as compared to people
in the lower classes. Such people can be easily targeted as they are very health conscious. Nestle
can urge these people to buy Milo which is rich in nutrition.
Personality
People who are outdoorsy and are involved in sports can also be targeted by tagging the brand with
some sport celebrity.
1.4 Marketing Mix (4Ps)
Marketing is simplistically defined as ‘putting the right product in the right place, at the right price, at
the right time.' If one element is out off the mark, a promising product or service can fail completely
and end up costing the company substantially. The use of a marketing mix is an excellent way to help
ensure that ‘putting the right product in the right place, at the right price, at the right time.' will happen.
The marketing mix is a crucial tool to help understand what the product or service can offer and how
to plan for a successful product offering. The marketing mix is most commonly executed through the 4
P’s of marketing: Price, Product, Promotion, and Place. Through the use of this tool, to attempt and
satisfy both the customer and the seller. When properly understood and utilized, this marketing mix
will proven to a key factor in a product’s success.
1.4.1 Product
Nestle seeks to earn consumers’ confidence and preference and to follow and anticipate consumer
trends, creating and responding to demand for its products. Therefore Nestle is driven by an acute
sense of performance, adhering to and favouring the rules of free competition within a clear legal
framework. Milo is a brilliant example of where as the superior quality, patented technology and
basically selling directly to consumers and this whole business is growing rapidly. Milo has been
around for decades, and it is one of Malaysian favourite chocolate malt drink to everyone. Malaysia
also is the world’s largest consumers of Milo.
Milo is a very well known product and Milo also has variety of product items under the same brand
which is Milo. These are the type of Milo that Nestle have been produce.
The original Milo : The original Milo contain nutritional icon on each pack reinforces the nutritional
properties that consumer can get from every cup of nutritious and great-tasting Milo.
Figure 2 Original Milo
Milo Fuze : Milo Fuze comes in three variants and is the easy tasty way to enjoy nutritious Milo with
Actigen-E and other nutritious ingredients. It is vary by 3 types which is cereals for hunger pangs,
3in1 for consumer convenience and better taste, and last one is high calcium for stronger bones.
Figure 3 Mio Fuze
Milo Drink : Milo UHT packs, the ready-to-drink format of Malaysia’s best-known nutritious chocolate
malt beverage is nutritious and healthier in a new attractive design. It contains all the nutritional
benefits of Milo such as ACTIGEN-E and PROTOMALT in a convenient pack.
Figure 4 Milo Drink
Milo Wafer bar : Milo Wafer bar made with layers of crispy wafer and sprinkled with Milo kibbles on
top. It contains ACTIGEN-E and it has 3.6% of our daily energy needs (based on 2000 Kcal). It will
also tantalize children senses.
Figure 5 Milo wafer bar
1.4.2 Price
Price strategy is a basic, long-term pricing framework, which establishes the initial price for a product
and the intended direction for price movements over the product life cycle. It consists of 3 type of
pricing strategy which is Price skimming, Penetration pricing and Status quo pricing. Nestle Malaysia
currently practicing penetration pricing to market Milo which is a way where Nestle charges a
relatively low price for a product (Milo) initially as a way to reach the mass market.
Marketers have 2 choices whether to use profit oriented profit maximization or satisfactory pricing.
The marketers need to have an understanding of trends and changes in the market place to set a
goal. If Nestle Milo have decide to go for profit maximization objective, they must be able to afford
large sum of investment. It is easy to follow competitors pricing but they may not have the best
considering cost, demand and changes in Product Life Cycle. So they have to require a careful
analysis before setting the price.
After the pricing goals have been established, Nestle Milo have to estimate demand, costs and profit.
It is important for Nestle Milo to know the corresponding cost for each product price. So they need to
estimate the profit that they will earn, determine level of price and how much market share they will
get.
When Nestle Milo has decided the product price, they will choose a good pricing strategy that will give
them direction of price movements over the Product Life Cycle. Nestle Milo are aware about higher
price. If they set higher price, they have to produce a good quality of Milo. Besides that, the
competitors also will influence the pricing strategy. For example, if Nestle Milo introduces a new
product that same with competitors, the price will be restricted and close to the price of competitors.
Unless, Nestle Milo can differentiate and convince consumers, they can set the higher price for the
product.
Setting the right price
Low $
High $
1.4.3 Place
Place relates to decisions about the storing and transporting of products, and also about selecting the
products channel of distribution. These decisions are critical to the success of an organization.
Effective inventory management drives down costs and enhances product quality. Choosing the right
distribution channel (sell through middleman firms or sell directly to the end-user) Direct energy cost
pressures have eased in recent months. The major distribution channel include with geographically
consideration with the manufacturing place situated.
Nestlé (Malaysia) Berhad
Nestlé House, 4 Lorong Persiaran Barat,
46200 Petaling Jaya,
Selangor
Tel : 03-7965 6000
Fax : 03-7965 6767
National Distribution Centre
Lot 1, Persiaran Waja
Kawasan Perindustrian Bukit Raja,
41050 Klang, Selangor
Tel : 03-33447850
Fax : 03-33436171
PENINSULAR MALAYSIA
Kuala Lumpur Branch
Nestlé Products Sdn Bhd
Lot 14, Jalan Delima 1/1
Subang Hi-Tech Industrial Park,
Batu Tiga40000 Shah Alam,
Selangor
Tel : 03-56297000
Fax : 03-56297154
Penang Branch
Nestlé Products Sdn Bhd
Tingkat 12, Wisma TNB
No. 30, Jalan Anson,
10400 Pulau Pinang
Tel : 04-2381700
Fax : 04-2381898
Johor Bahru Branch
Nestlé Products Sdn Bhd
4th & 5th Floors, Bangunan
Petronas,
Bandar Baru UDA,Jalan
Skudai
81200 Johor Bahru, Johor
Tel : 07-2334500
Fax : 07-2334600/2334670
Kuantan Branch
Nestlé Products Sdn Bhd
No. 23, Jalan Gambut 2
P.O. Box 162,
25720 Kuantan,Pahang
Tel : 09-5118600
Fax : 09-5118798/5118799
EAST MALAYSIA
Miri Area Sales Office
Nestlé Products Sdn Bhd
Lot 1894, Block 4
Miri Concession Land District,
Piasau Industrial Estate
Jalan Dtk Patinggi Hj Abd
Rahman Yakub
98000 Miri, Sarawak
Tel : 085-653054 / 663415
Fax : 085-661648
Tawau Area Sales Office
Nestlé Products Sdn Bhd
4th Floor, Man Tong Shing
BuildingTB 20,
Jalan Dunlop, Tawau, Sabah
Tel : 089-776365
Fax : 089-753211
Sabah Branch
Nestlé Products Sdn Bhd
Level 4 (3rd Floor) Wisma
202018
Jalan Belia 88100 Kota
Kinabalu, Sabah
Tel : 088-243030
Fax : 088-237498
Sandakan Area Sales Office
Nestlé Products Sdn Bhd
c/o Harrisons Trading (S) Sdn
Bhd
2nd Floor, 20 Jalan Tiga
90000 Sandakan, Sabah
Tel : 089-223201
Fax : 089-225498
Sarawak Branch
Nestlé Products Sdn Bhd
Menara MAA, Level 7
Jalan Ban Hock / Central Timur,
93100 Kuching, Sarawak
Tel : 082-235918
Fax : 082-417066
Sibu Area Sales Office
Nestlé Products Sdn Bhd
Lot 480, Jalan Then Kung Suk,
Upper Lanang,
P.O. Box 1319
96008 Sibu, Sarawak
Tel : 084-214672 / 213064
Fax : 084-214727
1.4.4 Promotion
Few good or services, no matter how well developed, priced or distributed, cannot survive in the
marketplace without effective promotion which is a communication by marketers that informs,
persuades and reminds potential buyers of a product in order to influence their opinion.
Promotional strategy is a plan of optimal use of the elements of promotions that is used by Nestle to
promote Milo. The main function of Nestle promotional strategy is to convince target customers that
their goods and services offered provide a differential advantage over the competition. A differential
advantage is a set of unique features of a company and its product that are perceived by the target
market as significant and superior to the competition. Such features can include high product quality,
low prices, excellent service or a feature not offered by other competitor.
Graph 1 effect of advertising response
Type of Advertising Media used by Nestle
-Television
Nestle applied this source for Milo product, which in the commercial break is about a boy or a girl that
are more energetic in their daily live if after they consume Milo. Also shown in the commercial break is
the boy’s parent provide Milo for their children. This strategy is to attract the consumers especially
children and parents to buy this product.
-Outdoor media
Nestle Milo is well known for their commitment and sponsorship efforts for any sport events in
Malaysia especially for any primary and secondary school. Milo sponsors almost all type of sport
event and Nestle also collaborate with Ministry of Sports and Youth in order to organize national and
international sport event. They normally open a booth in every event they sponsored and giving out
free Milo drinks.
-Internet
Nestle have their own website which is www.nestle.com and there are more than 100 countries are
registered under this website. Nestle also have their own website for each countries that is under
Nestle including North Korea and Israel. It is established so that consumer can easily find information
about their particular product and also as a medium for consumer to leave their suggestion in order for
Nestle to improve their product.
-Printed Media
Printed media includes newspapers, magazines as well as posters. Nestle normally promotes Milo in
children’s magazine since they are the main target market for the product and Nestle also sponsor
sport column in the newspapers. The advertising normally sports public figures such as Datuk Nicol
Ann David in order to attract sportsmen and children who are involves in sports. Posters are usually
distributed to all wholesaler and retailers who are selling Milo which can help people to recognize the
places that do sell Milo.
-Free Gift
-Free Raya Cards for any 6 cans purchase
If the customer buy 6 cans of Milo, they will get 3 special edition Raya cards with different design and
this promotion valid on the period that have been stated.
Figure 6 Milo card promotion
-Buy MILO 400g free 50g
This promotion is for customer that likes to save their money. This is because Milo’s have make a
promotion which is they will get free 50gm with every purchased of Milo 400gm pack.
Figure 7 free Milo promotion
-Buy Milo 1 Kg free 1 Juara Cup
This is the second example on how Milo’s promote their product. If the customers buy 1 KG pack of
Milo, they will get 1 Juara Cup. This kind of promotion will attract all the kids and even the adult to buy
it.
Figure 8 Milo Free Cup promotion
-FREE 1 MILO sporty tumbler with every purchase of MILO 1kg pack.
This promotion will attract sporty person to buy it. This is because the tumbler is easy to carry
everywhere and it is very fit to sporty person that have to move a lot.
Figure 9 Free Milo tumbler promotion
1.5 Brand promotion
Brand means a mark (symbol or sign) or design or some combination of these used to identify the
products of one seller and to differentiate them from competitive products. A registered brand is
known as trade mark. Brand promotion is that element of marketing mix which is designed to inform,
remind, persuade and influence the customers so that they purchase the brands of the advertiser
company. Brand promotion is applied and persuasive communication used for informing and
reminding the customers of the company's brands.
1.5.1 Previous and Current Design
Previous Event
One of the previous breakfast event held by Milo is Milo Malaysia Breakfast Day Run 2013. The Milo
Breakfast Run is one of Milo's initiatives to support participants who want to live a healthy lifestyle.
Milo give away 20,000 free breakfast packs in this event. Milo lead a record-breaking attempt in the
Guinness World Book of Records with the "most chocolate malt beverages consumed in a single
breakfast sitting" in this event.
Figure 10 Milo Malaysia Breakfast Day Run Logo
Current Event
In this year 2016, Milo held the event "Milo Malaysia Breakfast Day 2016". Milo Malaysia Breakfast
Day 2016 kicked off in Melaka on the 27th March, followed by Kuantan on the 10th April, Kota
Kinabalu will be on the 17th April, Johor Bhary on the 23rd April, Penang on the 15th May, Kuching on
the 22nd May and finally Putrajaya on the 29th May! The purpose is to encourage people to have
breakfast, especially families with children. According to the research of the My Breakfast Study and
member of the Nutrition Society of Malaysia, noted that 1 in 4 Malaysian children skipped breakfast at
least 3 times a week and that was indeed a worrying factor. The My Breakfast Study is Malaysia's first
comprehensive nationwide study on breakfast habits that involved a total of 8,705 school children.
Figure 11 Malaysia Breakfast Day 2016 Logo
1.5.2 Competitors of Milo
Vico, Horlicks, and Ovaltine is competitors product to Milo. It is because Vico, Horlicks, and Ovaltine
is also a malted drink. All these product were also well-know product in Malaysia.
Figure 12 Vico
Figure 13 Horlicks
Figure 14 Ovaltine
1.5.3 Other Creative Design
Other creative design shelf talk. Shelf talk can be one of the creative ways to create awareness
campaign. The shelf talk show on figure 15 is pepsi, coca-cola and john walker brand shelf talk.
Figure 15 various shelf talk design
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