MKT260Product branding Tên sản phẩm dễ nhớ, tạo dựng hình ảnh sản phẩm như một thức uống dinh dưỡng bổ sung năng lượng. Information in Milo Packaging 1|Page ngay cả trẻ em cũng có thể làm được.MKT260 Product Differentiation Improve the packaging Đóng gói sản phẩm – Thu hút: Tạo các hình ảnh sống động. Mở rộng thị phần. magazines. 3. 2. cạnh tranh với các đối thủ lớn như Ovaltine. thu hút và đầy màu sắc bên cạnh . Tạo dòng sản phẩm mới Tạo các sản phẩm như kem Milo. Place dựa vào 4Ps thiết kế các chiến lược marketing phù hợp. thanh chocolate dinh dưỡng Milo phù hợp với trẻ em và ngay cả người trưởng thành. đáp ứng nhu cầu các khách hàng thuộc các thế hệ khác nhau ở các thị trường Nestlé tham gia. thương hiệu. radio. billboards. Sử dụng hình ảnh các vận động viên hỗ trợ thương hiệu thức uống dinh dưỡng bổ sung năng lượng. television. The communication is not just about 2|Page . Promotion Tạo dựng khẩu hiệu riêng để chắc chắn khác hàng sẽ nhớ đến Milo. Advertising Advertising is defined as any paid form of product information that is delivered to potential customers in a non-personal way (such as through newspapers. or the Internet). Add more items. Milo product enhancement Đẩy mạnh đáp ứng nhu cầu khách hàng Tạo ra sản phẩm Milo 3 in 1 đáp ứng nhu cầu khách hàng về mặt tiết kiệm thời gian và mặt tiện lợi trong việc pha chế. • Các hoạt động ngoại khóa Nhãn hàng Milo là nhãn hàng gắn liền với các hoạt động thể dục thể thao của học sinh tiểu học và trung học. • Kênh báo chí Bao gồm báo chí. đặc biệt là những em chơi thể thao và hoạt bát.nestle. là nhà tài trợ chính của các giải bóng rổ và bóng đá cấp độ học sinh phổ thông. các câu lạc bộ sinh hoạt tập thể. Bên cạnh đó.vn. Điều đó tạo điều kiện để khách hàng dễ dàng lựa chọn sản phẩm cũng như có được những lời tư vấn tốt nhất về sản phẩm mình dự định mua. Type of Advertising Media used by Nestle • Truyền hình Quảng cáo của sản phẩm Milo thường đề cập đến sự phát triển về thể chất và tinh thần của trẻ nhằm thu hút người tiêu dùng. khách hàng mục tiêu của sản phẩm Milo. and the communication often creates a creative slogan in order to make sure consumer will remember Milo. Việc khach hàng có thể để lại cảm nhận cũng là cách để Nestle cải thiện sản phẩm của mình.com. việc cho thưởng thức hương vị Mlio miễn phí tại các trường học cũng là một chiến lược quảng cáo của Milo.000 sản phẩm của công ty.MKT260 advertising only. Ngoài ra Milo cũng đi liền với các hoạt động ngoại khóa như hội trại. • Internet Nestle có trang web riêng của mình tại Việt Nam: www. Nestle thu hút được những khách hàng nhỏ tuổi của mình. 3|Page . với danh mục sản phẩm rõ ràng của hơn 30. tạp chí và tờ rơi. Qua đó tạo mối liên hệ giữa sản phẩm và khác hàng. Từ đó. đặc biệt là trẻ em và cha mẹ. Nestle hình thành 1 kênh dành riêng cho trẻ em. The company can more easily 4|Page . Segment marketing offers several benefits over mass marketing.MKT260 Effects of advertising Promotion The pictures below show some example on how Milo’s promote their products to the customer. the marketer’s task is to identify the segments and decide which one (s) to target. The marketer does not create the segments. The company can create a more fine-tuned product or service offering and price it appropriately for the target segment. Segmented and Target Market A market segment consists of a group of customers who share a similar set of wants. The most important of these groups are children and old people. which are the companies going after the same segment.MKT260 select the best distribution and communications channels. 5|Page . People with blue collar jobs can be targeted by telling them that the Milo will help them in their daily routine. In hotter regions the consumption pattern doesn’t change much. For children it can introduce Milo with additional nutritional contents such as vitamins and minerals. they will purchase. Nestle should target people in the higher income groups. Our market segment is based on our observation. For older people it already has clinical nutrition. analysis as well as we is in Nestle shoes. But Nestle can segment the market on the basis of season. • Gender: It will be very beneficial to target women as they usually shop for their family. Demographic Segmentation: • Age: Nestle can easily target various age groups. It just needs to get its product known among these people. and it will also have a clearer picture of its competitors. Nestle should focus more on making Milo available in the every places where people are willing and able to buy. The consumption of cold Milo goes down during the rainy season as people prefer to have hot Milo. If they are convinced that the Milo will be good for their families. The customers can be classified according to the following variables: 1. • Cities: Consumption of Milo is more in the cities as compared to the villages due to various factors such as income and education level. Geographic Segmentation: • Regions: Commonly people prefer to drink Milo throughout the year. 2. • Income and occupation: People will buy Milo when they have enough monetary resources. Life cycle stage can also be important because families with younger kids will want to buy Milo. we have all agreed that Milo can wider their promotion by making a contest or a lucky draw. • Psychographic segmentation: 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. They should combine all their products in one pack that include mini pack of Milo powder. Milo can make a different packaging style. • Personality: People who are outdoorsy and are involved in sports can also be targeted by tagging the brand with some sport celebrity. Nestle can urge these people to buy Milo which is rich in nutrition. 6|Page . If they interested with one or all the product. the will pick a lucky number and the lucky customer can redeem their price at the nearest Milo’s branch. Price The firm has several options for addressing the price. and so much more. By doing this style of packaging. Promotion Recommendation To make Milo being well-known all over the country. They just need to put a lucky number behind the packaging and the end of the month. Domestically Nestlé’s Milo manufactured finished products may be force to switch to offshore sourcing of certain component to keep costs and prices competitive. This will increase the profit. 4. Besides that. for sure they will but it again and again. Another factor is a through audit of the distribution structure in the target markets.MKT260 3. Such people can be easily targeted as they are very health conscious. After we have been through the discussion. Milo can promote all their delicious product to the customer so that they are able to try all the product that produced by Milo. they should make a lot of promotions which is dissimilar with the promotions that they have done before. Milo fuze. Milo energy bar. MKT260 An extension or ethnocentric pricing policy describe that the per-unit price of an item to be the same no matter where in the world the buyer is situated. long-term pricing framework. This type of approach is sensitive to the local market. The management level consciously and systematically seeks to ensure that accumulated national pricing experience is influenced and applied wherever relevant. The firm utilizing independent distributors were the most likely to apply polycentric pricing. The price harmonization from headquarter is necessary in dealing with international accounts. The organizations revenue represented that the food and beverage like Milo’s product gain more return on investment than other. they did not fully informed about company experience when they set prices. 7|Page . which establishes the initial price for a product and the intended direction for price movements over the product life cycle. It represent that the potential sustainable growth market for the firm. The disadvantage facing in the company is local managers are free to price in the way they see fit. Adaptation or polycentric pricing policy allows subsidiary or affiliate managers or independent distributors to establish whatever price they feel is most desirable in their circumstances. 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. Nestlé’s executive level monitor consciously on the freight and import duties according to the Malaysia market. Price strategy Price strategy is a basic. If Nestle Milo have decide to go for profit maximization objective. they must be able to afford large sum of investment. demand and changes in Product Life Cycle. So they have to require a careful analysis before setting the price.MKT260 Setting the right price Establish price goals Estimate demand. and profits Choose a price strategy High $ Skimming Status quo Penetration n Low $ Evaluate results Set price $x.yy Fine-tune base price Establishing pricing goals 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. It is easy to follow competitors pricing but they may not have the best considering cost. 8|Page . costs. Pricing Tactic Diagram 9|Page . If they set higher price. they have to produce a good quality of Milo. the price will be restricted and close to the price of competitors. So they need to estimate the profit that they will earn.MKT260 Estimate demand. Choose the price strategy When Nestle Milo has decided the product price. It is important for Nestle Milo to know the corresponding cost for each product price. Besides that. they can set the higher price for the product. if Nestle Milo introduces a new product that same with competitors. determine level of price and how much market share they will get. After the pricing goals have been established. the competitors also will influence the pricing strategy. For example. Unless. costs and profit. Nestle Milo are aware about higher price. they will choose a good pricing strategy that will give them direction of price movements over the Product Life Cycle. Nestle Milo have to estimate demand. Nestle Milo can differentiate and convince consumers. costs and profit. they are receiving a quantity discount. This is to avoid bad debt.MKT260 Pricing tactics Quantity discount When buyers get a lower price for buying in multiple units or above specified dollar amount. or a marketing intermediary in return for prompt payment of a bill. Functional discounts 10 | P a g e . Cash discounts Cash discount is a price reduction offered to a consumer. the firm will adopt uniform delivered pricing or “postage stamp. The farther buyers are from the sellers. With uniform delivered pricing. such as wholesaler and retailer. It is both a pricing tool and a promotional device. typically a percentage discount from the base price. Seasonal discount Seasonal discount is a price reduction for buying merchandise out of the season. the seller pays the actual freight charges and bills every purchaser an identical. depending on the tasks performed by intermediaries. Promotional allowances Is also known as trade allowance which is a payment to a dealer for promoting the manufacturer’s products. including freight. flat freight charge. This compensation. 11 | P a g e . Uniform delivered pricing If the marketing manager wants total costs.MKT260 When distribution channel intermediaries. to be equal for all purchasers of identical products. Functional discounts vary greatly from channel to channel. Geographic pricing FOB origin pricing FOB is “free on board” is a price tactic that requires the buyer to absorb the freight costs from the shipping point. is called a functional discount or trade discount. The advantage of a rebate over a simple price reduction for stimulating demand is that a rebate is a temporary inducement that can be taken away without altering the basic price structure. Rebates A rebate is a cash refund given for the purchase of a product during a specific period. they must be compensated. the more they pay. It shifts the storage function to the purchaser. perform a service or function for the manufacturer. Seasonal discounts also enable manufacturers to maintain a steady production schedule year-around. The manager may use this tactic in intensely competitive area or as a way to break into new market area. the seller pays all part of the actual freight charges and does not pass them in the buyer. the seller designates a location as a basing point and charge all buyers the freight cost from that point. The price will be divided into segments or charges based on the zone that given. Basing point pricing With this tactic. regardless of the city from which the goods are shipped.MKT260 Zone pricing A marketing manager who wants to equalize total costs among buyers within large geographic areas. Price lining 12 | P a g e . Freight absorption pricing In freight absorption pricing. but not necessarily all of the seller’s market area which will may modify the base price with a zone pricing tactic. Other tactics Single price tactic A price tactic that offers all goods and services at the same price ( or perhaps two or three prices) Flexible pricing A price tactic in which different customers pay different prices for essentially the same merchandise bought in equal quantities. they need get raw material such as cocoa from the cocoa supplier.MKT260 A price tactic in which a product is sold near or even below cost in hope that shoppers will buy other items once they are in the store. If the supplier increases the cocoa price. it also will affect the price of Milo because the Milo’s cost of production will also increase. For Nestle Milo. we need a good raw material. 13 | P a g e . Two-part pricing A price tactic that charges two separate amounts to consume a single good or service. Bait pricing A price tactic that tries to get consumers into a store through false or misleading price advertising and then uses high pressure selling to persuade consumers to buy more expensive merchandise. Factor Affecting the Pricing Cost Product To produce one product. Odd-even pricing A price tactic that uses odd-numbered prices to connote bargains and even numbered prices to imply quality. Consumer penalty An extra fee paid by the customer for violating the terms of the purchase agreement. Price bundling Marketing two or more products in a single package for a special price. Unbundling Reducing the bundle of services that comes with the basic product. they need to make a lot of promotion and using different way such as advertising. there will be a lot of competitors and competition. Milo’s sell the 3 in 1 Fuze at RM12. they add some cereal in Milo 3 in 1 Fuze. Place To set up price for Milo’s product. These promotion activities will cost a lot and sometimes. If a product has a high demand. That is why quality factor can affect the price of Milo. it will attract other producer to produce the same or even better product. they sell it at RM12. The competitors will start to offer a discount or they will offer bargain price. they also will determine the geographical factor. As a result. This is because the transportation cost to East Malaysia is very high compare to West Malaysia. they will make something that can increase their product quality. And to cover the money that they have spent. through television.50. the price of Milo will also increase. Milo need to pay high for the individual who involves in this promotion activity. internet. For example. they will increase the price of Milo’s product. Quality To make Milo more variety and more interesting to buy. newspaper and so much more. For example in West Malaysia. All the producers will ‘fighting’ with each other to make their product more well-known or more favorable. Price recommendation 14 | P a g e . The cereal will increase the cost of production and at the same time. Competition Different kind of product will have different level of demand from the communities.00 but in East Malaysia.MKT260 Promotion To make Milo more well-known all over the world. the price will be change. Because of competition. This pack is affordable whereas not only the high income persons who are willing to buy it but people from low income are also able to buy.MKT260 For the price. This is also known as eco pack. If they want to put a high price for the particular product. By doing so. they also can do the packages which contain the chosen product in one pack and they will set the price for the pack in a moderate value. Milo should make a good pricing strategy. 15 | P a g e . Other than that. Generally we can conclude that Milo are not bias and are suitable for all level of person. they have to make sure that the quality and the quantity are suitable enough with the price. consumers can make a good perception for the company who are concern with the society.