branding design and management dsn 2153 branding …pricing strategy which is price skimming,...

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


Tingkat 12, Wisma TNB

No. 30, Jalan Anson,

10400 Pulau Pinang

Tel : 04-2381700

Fax : 04-2381898

Johor Bahru Branch


4th & 5th Floors, Bangunan

Petronas,

Bandar Baru UDA,Jalan

Skudai

81200 Johor Bahru, Johor

Tel : 07-2334500

Fax : 07-2334600/2334670

Kuantan Branch


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


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


4th Floor, Man Tong Shing

BuildingTB 20,

Jalan Dunlop, Tawau, Sabah

Tel : 089-776365

Fax : 089-753211

Sabah Branch


Level 4 (3rd Floor) Wisma

202018

Jalan Belia 88100 Kota

Kinabalu, Sabah

Tel : 088-243030

Fax : 088-237498

Sandakan Area Sales Office


c/o Harrisons Trading (S) Sdn

Bhd

2nd Floor, 20 Jalan Tiga

90000 Sandakan, Sabah

Tel : 089-223201

Fax : 089-225498

Sarawak Branch


Menara MAA, Level 7

Jalan Ban Hock / Central Timur,

93100 Kuching, Sarawak

Tel : 082-235918

Fax : 082-417066

Sibu Area Sales Office


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

branding design and management dsn 2153 branding …pricing strategy which is price skimming,...

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