MKT260Acknowledgement Assalamualaikum WBT, Alhamdulillah, we are very grateful to the Almighty God, who have bestowed us the will to complete our assignment about “Nestle Milo” which is connected to our scheme Introduction to Marketing, MKT260. Here, we would like to take this opportunity to express our highest gratitude and compliment to the people who are involved directly or indirectly in this assignment especially our beloved Miss Najihah bt Abd Rahim which is our MKT260 lecturer.. In this assignment, we examine that the important of the marketing strategies for the international firm like Nestle. Among the BBC global top 30 brands, we have analysis of how a product’s sales are driven by brand name, weighted for market leadership, stability and ability to cross national borders. The consumers are not aware of their origins. Beside, the product’s prices usually reflect its proper value in the eyes of the consumer. It’s always not a good idea that the strategy of offering lower prices is to penetrate the advantaged economies and to pay the costs for the unknown quality of their goods. Thank you to all people who are involved in making our assignment a successful one and may all your help and effort are blessed. Thank you (Muhammad Salihin Jaafar) ( Anisha bt Ramli ) ( Nur Adilah bt Md Zain ) (Nurul Zamieza bt Ahmad) 1|Page MKT260 Executive summary The main aim of international marketing is to provide solid foundations that are useful for explanation, prediction and control of the international business activities. We are not an expert in nestle but we have analysis the firm’s global marketing strategy in the field of their brand awareness, products and system design, product positioning, advertising, packaging, distribution and customer service. We have notice that the firm utilized generic marketing strategy such as low cost leader in business, differentiated good and services satisfy the needs of customers through a sustainable competitive advantage. International marketing refer to using common products, price, promotions and distribution program on a world basis. My secondary data is the most of important for our research and I contributed in the area such as group or segment those types of potential customers that are most likely to benefit from their product line. That is why we effectively utilized the periodical articles which can be a great source of product, marketing and industry information. (Periodicals refer to magazines, journals and newspapers. Although we are living in an electronic age, there is still much information that can only be or best be found in print resources or books at library. Nestle management level is a decentralized as possible, within the framework compulsory by fundamental policy and strategy decisions requiring increasing flexibility and operational efficiencies, as well as the group-wide need for alignment and people development, may also set limits to decentralization. 2|Page MKT260 Introduction Nestle SA , the world’s leading food manufacturer and the market leader in both coffee and mineral water, produces a wind range of products including prepared dishes and cooking aids, milk-based products, cereals, instant coffee, pharmaceuticals and baby foods. Nestle SA is a publicly owned company, with subsidiaries across the world. It website addresses in 104 countries. It is also the world largest food and beverage company with $71 billion in annual sales and almost 230,000 employees around the world. It markets some 8000 brands that include instant coffee. Remarkably, its products are sold in every country in the world, including in North Korea. Nestle coat of arms, the bird’s nest, which refers to his name, has become a symbol for the products being a safe care for their consumer product safety and quality. Research and development based innovation capacity and strong brands are priority for Nestle. Objective of Nestle “ Nestle business objective is to manufacture and market its products in a way that creates value that can be sustained over the long term for shareholders, employees, consumers, business partners and national economies in which Nestlé operates”. The aim of the creating values for the company include with improve business condition for the firm. To obtain more reliable and high qualify source of raw materials, improved government functioning and regulatory, employed skill and loyal workforce and superior quality products which successfully complete. 3|Page MKT260 Nestle Corporate Philosophy • • Be the leading multinational company in food, nutrition and wellness. Produce and sell world-class products of the highest consistent quality, reliability and convenience based on business excellence principles throughout our operations. • • Maximizes the use of good quality local raw materials. Be an exemplary employer with a progressive human resource and social policy; with a management style that is based on "Management Commitment and People Involvement" • Be a responsible corporate citizen, fulfilling all obligations to Government, shareholders, customers, communities and consumers. • Protect the environment by being committed to environmentally sound business practices and taking into account the need to preserve natural resources and save energy. • Guarantee that all products manufactured, imported and distributed by Nestlé Malaysia are certified HALAL by authorised Islamic certification bodies. • Deliver shareholder value through the achievement of sustainable and profitable long-term growth. 4|Page 5|Page . Nestle embrace cultural and social diversity and does not discriminate on the basis of origin. This is an integrated strategy. Nestle believes that is activities can only be of long term benefit to the company if they are the same time beneficial to the local community. For example. From its beginning. fulfilling obligation to government. Therefore. nationality. the environment is changing very rapidly and in particular customers are looking for answer to their concerns. guarantee that all products manufactured. customers. Part of the branding strategy is the brand plan for each product. Perhaps. It’s a wide area research the branding. gender or age. Branding strategy is corporate.MKT260 Nestle Marketing strategy The firm applied a progressive human resource and social policy. Nestle activities to integrate itself as much as possible into the cultures and traditions where it is present. To our opinion. with a management style that is based on management commitment and people involvement. The brands of Nestle are a key strength but the executive levels are very aware today that brands alone are not enough to win. the firm delivered shareholder value through the achievement of sustainable and profitable long-term growth. And of course. Furthermore. adding also to the local environment its own set of values. religion. the firm had responsible corporate citizen. Precisely. global thinking and strategies can best be expressed through local action and commitment as showed as Nestle Malaysia. Protest the environment by being committed to environmentally sound business practices and taking into account the need to preserve natural resource and save energy. communities and consumers. race. shareholders. That is why Nestle form the very start has always shown respect for diverse cultures and traditions. imported and distributed by Nestle Malaysia are certified HALAL by authorized Islamic certification bodies. Moreover. Nestle developed its business internationally and became aware of the fact that food products have to be closely linked to local eating and social habit. Nestle applied “think globally act locally” as well as thinking out of the box idea in their product and distribution with the help of strategic global marketing. This gives the Milo drink a biscuit cover on top. Since 1962. Milo manufactured outside Australia is customized for local methods of preparation. Malaysia. after his legendary strength. and 6 sales offices nationwide. Vietnam. Another possible use is making a normal cup of cold Milo and microwaving it for approximately 40–60 seconds. Sugar can be added to the Milo beverage. India. Thailand. thereby doubling it in size. This is more of a 'warm' beverage rather than a 'hot' one and is a more popular version of hot Milo for children. Then one adds small amounts of hot water and milk in layers stirring each new layer vigorously to maintain its lightness. Milo can also be sprinkled on breakfast cereals. Malaysia. Peru. but many people enjoy it without the addition of sweeteners. Sri Lanka. it is mixed 6|Page . Nigeria. Milo can be stirred into steamed milk or hot water to create something similar to hot chocolate or cocoa. growth and expansion made a move to Kuala Lumpur necessary in 1939. New Zealand. appreciating it for its subtle chocolate flavor. Milo is added to hot or cold milk to give it a malted chocolate flavor and extra texture. South Africa. the Philippines. Introduction to Milo Milo is a milk beverage with chocolate and malt. Philippines. It was developed by Thomas Mayne in 1934. Another popular use is to sprinkle it on ice cream.MKT260 Nestle Malaysia Nestlé began in Malaysia in 1912 as the Anglo-Swiss Condensed Milk Company in Penang and later. Milo is often the favored beverage for the Tim Tam Slam. When combined with cold milk. Nestlé Malaysia now manufactures its products in 8 factories and operates from its head office in Petaling Jaya. Chile. produced by Nestlé and originating from Australia. Syria and Taiwan. Hong Kong. Papua New Guinea. Colombia. Milo is also manufactured in other countries. with its first factory in Petaling Jaya. especially vanilla ice cream. Ghana. Also very popular is the "Magic Milo" which involves adding Milo to a small amount of milk with sugar and whipping it to increase the amount of air in the milk. China. including Singapore. In Ghana. A final layer of whipped cream topped with extra Milo or chocolate sprinkles. The name derives from the famous Greek athlete Milo of Crotona. Trinidad & Tobago. Jamaica. Indonesia. Kenya. Japan. it retains the gritty texture of its raw state. Singapore and Indonesia. with the instructions "Add milk and sugar if desired. Milo in Malaysia is served in kopitiams and mamak stalls offering versions such as "Milo Dinosaur" (a cup of Milo with an extra spoonful of powdered undisclosed Milo added to it)." Other countries the packaging is green and has people playing sports on the tin. and Malaysians were said to be the world’s largest consumers of Milo. children participating are given small packets of Milo to eat or drink. There is an organization called "Milo Cricket" which operates in most areas by volunteers. Milo in Hong Kong Differentiation between Milo 1940’s Milo tin Product Life Cycle 7|Page . The packaging of Milo tins in Singapore are also green and also have people playing sports on the tins. It gained popularity in Singapore soon after. where the brand name is synonymous with chocolate flavored drinks: Milo has a 90% market share in Malaysia (not the often quoted 90% worldwide share of Milo consumption)[4]. "Milo Godzilla" (a cup of Milo with ice cream and/or topped with whipped cream) and "Neslo" (combined with Nescafe powdered coffee). The commercials and taglines are "Go and go and go with Milo" and a popular commercial is 4 generations of women on a skipping rope singing "and my mum gave me Milo to go and go and go" and the line "I need my Milo Today". because it has a low glycemic index. Milo manufactured in Malaysia is made to dissolve well in hot water to produce a smooth hot chocolate drink. or with ice added for a cold drink.MKT260 with hot or cold water instead of milk.[5] This is because Milo was once used as a nutrient supplement when it was first introduced in the country. and has thus gained a reputation as a 'must have' drink for the old and the younger generations. Milo is very popular in Malaysia. they apply a product life cycle approach involving their partners from farm to consumer in order to minimize the environmental impact of their products and activities. Their aim at all stages of the cycle is to use natural resources efficiently. Nestlé invests an average of CHF 40 million a year to reduce its air emissions.MKT260 At Nestlé. There are varieties of each product lines for each type of products. to favor the use of sustainable-managed renewable resources and to target zero waste. Through internal research and development at Nestlé there have also been significant advances in the environmental impact of refrigerants and packaging. Nestlé's initiatives aim to improve the environmental performance of the products along their entire life cycle. In this way. Nestlé has initiated a pilot with Schenker. prepared food. They also will upgrade their product lines through the changing of the lifestyle form time to time. Product Line width Nestle Malaysia product consist of 6 main aspect which is beverage. Another significant step in the value chain is transport. distances driven and fuel type used. These include sourcing sustainable raw materials. they intend for their brands to stand for environmental sustainability. ice cream. reducing energy consumption and minimizing air emissions by moving to different fuel types. milk. to evaluate the effect of different types of transport. Product Mix Width Beverage Milo Nescafe Canned Drink UHT Milk Nespray Neslac Prepared Food Maggi Buitoni Ice Cream Drumstick Trophy Mat Kool Cereals Honey Star Koko Crunch Cookie Crisp Chocolates Kit Kat Smarties Milky Bar Nestle Crunch The Marketing Mix of Nestle Marketing 8|Page . cereals and chocolates. Without compromising product quality there was a reduction of 392 000 tones of packaging material between 1991 and 2008. an international logistics company. Milo has been around for decades. • • • • Product Place Promotion Price 1.MKT260 The following consideration included in our marketing analysis of the Nestle. Product Product item Nestlé seeks to earn consumers’ confidence and preference and to follow and anticipate consumer trends. Malaysia also is the world’s largest consumers of Milo. 9|Page . adhering to and favoring the rules of free competition within a clear legal framework. We choose Milo since it 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. and it is one of Malaysian favorite chocolate malt drink to everyone. Therefore Nestlé is driven by an acute sense of performance. These are the type of Milo that Nestle have been produce. Product item depth Milo is a very well known product and Milo also has variety of product items under the same brand which is Milo. • 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. creating and responding to demand for its products. Milo UHT packs. It is vary by 3 types which is cereals for hunger pangs. It will also tantalize children senses. 3in1 for consumer convenience and better taste.6% of our daily energy needs (based on 2000 Kcal). It contains ACTIGEN-E and it has 3. • Milo Wafer bar Milo Wafer bar made with layers of crispy wafer and sprinkled with Milo kibbles on top. and last one is high calcium for stronger bones. the ready-to-drink format of Malaysia’s best-known nutritious chocolate malt beverage is nutritious and healthier in a new attractive design. • Pack Extra Nutrition with Milo A healthier choice in new design UHT pack. 10 | P a g e .MKT260 • 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 contains all the nutritional benefits of Milo such as ACTIGEN-E and PROTOMALT in a convenient pack. fish. It is essential for healthy growth and development. mainly malt extract. poultry. as part of a balanced diet. is well-placed to fuel the action packed days of today’s children. vitamins. peas and lentils. the nutrient content has been improved to meet evolving demands. • PROTOMALT ~ a malt extract with a mixture of different Carbohydrates that provides energy and nutrients the body needs. and cocoa. such as during infancy. These calories come from the different ingredients of Milo. Nestlé Milo stands firm in its commitment to provide every child the nourishment and energy needed every day. • • Natural Goodness ~ of malt. protein. The protein needs (per Kg of the body weight) is highest when growth is rapid.MKT260 Product nutrition Nestlé Milo is not just any chocolate malt drink. Milo powder is nutritionally balanced. Protein is one of the macronutrients (along with carbohydrate and fats) that is important to build and repair body tissue. beans. The 6 basic classes of nutrients in food are: carbohydrate. palm oil and sugar. In growing with Malaysia. Nutrition in Milo Right balance in nutrition Milo provides energy (calories). Over the years. On its own. carbohydrates and fats. childhood and adolescence. Milo provides the energy required for an active lifestyle and will not be fattening. 11 | P a g e . Sources: Protein is found in meat. dairy products. in combination with PROTOMALT. There are 3 main components in each Milo product which is. providing the right ratio of protein. minerals and water! A mug of Milo of drink contains these nutrients. If consumed moderately. skimmed milk. The current formulation of ACTIGEN-E. ACTIGEN-E ~ a combination of 8 vitamins and 4 minerals which helps in the optimal release of energy. skimmed milk. fats. fruits.g. Atigen-E(vitamin and mineral) Here are two main groups of nutrients: macro-nutrients and micro-nutrients. vegetables). What is BMR? Basal metabolic rate (BMR) is the energy used to carry out necessary body activities such as breathing. Macro-nutrients are those that are needed in large quantities (tens or hundreds of grams) every day. 12 | P a g e . though it helps to regulate bowel function. Imbalance of energy will result in weight gain and weight loss. Simple carbohydrates are sugars that our body can easily and quickly use for energy. It has to do with energy intake and energy output. lack of vitamin C can lead to scurvy. Complex carbohydrates are chains of sugar units.MKT260 Fats are essential component of body cells that are important for the absorption of fat soluble vitamins. A deficiency of some vitamins can lead to diseases or metabolic disorders. Vitamins are micronutrients essential to the human body. potatoes) and fiber (e. These are vitamins and minerals. Carbohydrates can be in the form of complex and simple carbohydrate. Sources: sugars. Energy intake is the number of calories we gain from food. For example. grains. Energy Carbohydrates supply the main source of energy for the body. Starches are broken down during digestion into glucose before being absorbed into the body. and maintaining a heart beat. Fibers are not digested by our body. Energy output is the number of calories you use for BMR and activities. For example. excessive fat intake may also contribute to overweight and obesity problems. as well as vegetables oils and margarines. Micronutrients are those needed in small quantities (micrograms or milligrams).g. Sources: Fats are found in animal and dairy products. fiber and starches. As fat contain higher calorie compared to carbohydrates and protein. protein and fats. lack of vitamin D lead to rickets. starch (e. These are carbohydrates. regulating body temperature. Energy balance is the key to weight management. Based on the ingredient listing on Milo packaging. During infancy. important to consume adequate of B Vitamins. it is important to get adequate amount of calcium at these stages of growth. beans. and calcium fortified products e. therefore. Did you know that besides reading the nutritional information on pack. It informs us what the product is made from. childhood and adolescence period. bone growth is the greatest. breakfast cereals. another good source of information to learn about the product ingredients/ contents would be from the ingredient list. and cocoa. Ingredients are listed in descending order by weight. Sources: B Vitamins are found in a variety of animal. General information The great choc malty taste of Milo is made from the natural goodness of malt. Protomalt PROTOMALT is proprietary to Milo powder which is a quality malt extract that provide a mixture of different types of carbohydrates that provide energy and nutrients the body needs. dark green leafy vegetables. milk. It is. The B Vitamins are needed for the release of energy from foods and some are important for red blood cell formation.g. the most ingredients in Milo is malt extract as it is the first ingredient listed on pack. Calcium is essential for proper development of bones and teeth. Sources: dairy milk products. So. sardines and anchovies with bones.MKT260 Calcium is an important mineral in childhood. soy-based foods. 13 | P a g e . vegetable and grain products. breads and juices. which will strongly influence their buying patterns. mainly in plastics.it can be applied generically or. but also to a lesser extent across metals and paper and broad. Branding can be achieved using a company name . A catchy name and distinctive packaging are vital ingredients in any brand image. Product Packaging The Milo Nestlé’s packaging is the most direct and largest communication vehicle that the organization had with the most impressions they can deliver. A company must be constantly aware of these perceptions and try to preserve and build on them through advertising and other promotions. nutrition communication through to the new and existing consumers. Branding enables marketers to build extra value into products and to differentiate them from their competitors. A brand name is often considered by a company to be its most important intangible asset. the firm’s communicate wellness benefits in our beverage business. Nestle strategy is based on optimizing materials. but the true essence of a brand identity lays in the consumer's mind i. But it’s not just there. The packaging materials continue to be the main source of concern. on an individual basis. In a market where repeat purchases are the key to profitability. It also helps to avoid wastage before and after purchase by maintaining freshness for the consumer. with these expectations being built up over many years.e. and condiments. the perceptions of the product. The brand name promises the consumer particular benefits. Eco-efficient packaging Packaging is essential for food safety. as in the case of Milo. developing eco-efficient packaging.MKT260 Product branding Branding is the collection of attributes that the consumer has come to expect from a product. and providing meaningful information to consumers on recycling and disposal. 14 | P a g e . also in confectionery. And on the packaging. a brand name becomes paramount to a product's success. such as quality and value for money. For example. Packaging Waste Recovery Nestlé Malaysia has established national waste recovery schemes for the collection. reuse. Nestlé has participated actively in setting up and managing these schemes. Nestlé is firmly committed to finding packaging solutions that contribute to a better environment.MKT260 A key initiative in 2008 was their collaboration on PIQET. for Easter 2009. separation and recovery of used packaging. Nestlé UK replaced non-recyclable plastic with recyclable cardboard packaging in most of the 25 million Easter eggs it makes. Nestlé UK managed to use 30% less packaging overall. packaging material savings from 1991 to 2008 amounted to 392 000 tones and CHF 683 million on a worldwide basis. saving a huge 700 tones of packaging materials Packaging Source Reduction In 1991 Nestlé initiated a continuous review and assessment of packaging source reduction opportunities. Design and technology innovations go hand in hand in order to reduce environmental impacts without compromising consumer needs. 15 | P a g e . recycling and energy recovery. an important new packaging eco-design tool adopted by Nestlé. The company supports an integrated approach that favors source reduction. Wherever possible they use recyclable packaging materials. This represents a saving of 44 000 tones of packaging material in 2008 alone. As a result. Nestlé use recycled material whenever it makes sense and it is legally permitted. We have reduced the volume of packaging material used per liter of bottled water by 20% over the last 5 years. MKT260 Information in Milo Packaging 16 | P a g e . This is because 3 in 1 Milo already has added creamer and sugar for consumer convenience. By doing this transformation Milo will be more up to date and can build loyal customer and as well as to be more different than their competitor such as Oligo Coco which are using the same green color for their packaging. Even kids also can do it by themselves because it already complete and they do not have to add anything. Milo also contains a lot of nutrition which does not contained in the other competitor’s product such as Oligo Coco. Oligo Coco is just a normal chocolate malt drink and they do not have nutrition such as Milo. This is for the customers that do not have enough time or in rush because they only need a short time to make it. Milo packaging only have their brand name. Milo also has adding more colorful color beside of their green color which is their main color. This Milo is very suitable for consumer that concern about healthy and on diet because cereal can avoid people from feeling hungry and contain fiber that good for digestion. so that they produce 3 in 1 Milo from the normal powder Milo. Besides. but nowadays Milo have been through the transformation by using faces of national athletes to attract more customers. This improvement can attract children to drink Milo. 17 | P a g e . Add more ingredients To differentiate Milo from other product they have produce a healthy Milo by adding cereal in Milo Fuze. Before this. Milo product enhancement Milo has realized and able to fulfill customer needs.MKT260 Product Differentiation Improve the packaging Nestle Milo have improve the packaging by replacing the old one with adding the interesting picture. Other than that. Besides produce Milo for beverages. consumer will have a lot of choices to buy Milo product and as well as positioning Milo as an established brand with a lot of choices than the competitors such as Oligo Coco and Ovaltine. In our opinion. Milo also can specify their target market based in their age and lifecycle. Milo will be part of the compulsory product that will include in their shopping list. there’s a lot of people who were suffering the diseases. For example. So that. is also sort of our idea because nowadays. Milo wafer and Milo energy bar. Milo for a diabetic patient. By doing this.MKT260 Add more items. This product item is suitable for children and also adult. they can produce their product according to their customer age. or people in high cholesterol. Product recommendation For product recommendation. 18 | P a g e . Milo can make their product more variety by adding new flavor. Milo should add some vanilla flavor in order to make their product line more variable. Nestle Milo also have create new product item such as Milo ice cream. 41050 Klang. Jalan Delima 1/1 Subang Hi-Tech Industrial Park. Effective inventory management drives down costs and enhances product quality. 10400 Pulau Pinang Tel : 04-2381700 Fax : 04-2381898 Johor Bahru Branch Nestlé Products Sdn Bhd 4th & 5th Floors. Jalan Anson. and also about selecting the products channel of distribution. It’s very cost effective way for the firm’s expenses in distribution its products to targeted market. Selangor Tel : 03-7965 6000 Fax : 03-7965 6767 National Distribution Centre Lot 1. Box 162.Jalan Skudai 81200 Johor Bahru. 4 Lorong Persiaran Barat 46200 Petaling Jaya. Selangor Tel : 03-33447850 Fax : 03-33436171 BRANCH ADMINISTRATION OFFICES & AREA SALES OFFICES PENINSULAR MALAYSIA Kuala Lumpur Branch Nestlé Products Sdn Bhd Lot 14. should we sell through middleman firms or should we sell directly to the end-user) Direct energy cost pressures have eased in recent months. Persiaran Waja Kawasan Perindustrian Bukit Raja. Bandar Baru UDA. Jalan Gambut 2 P.Pahang Tel : 09-5118600 Fax : 09-5118798/5118799 Sandakan Area Sales Office Nestlé Products Sdn Bhd c/o Harrisons Trading (S) Sdn Bhd 19 | P a g e . Selangor Tel : 03-56297000 Fax : 03-56297154 Penang Branch Nestlé Products Sdn Bhd Tingkat 12. Bangunan Petronas. Wisma TNB No. HEAD OFFICE UNIT Nestlé (Malaysia) Berhad Nestlé House.O. Place Place relates to decisions about the storing and transporting of products. Johor Tel : 07-2334500 Fax : 07-2334600/2334670 EAST MALAYSIA Sabah Branch Nestlé Products Sdn Bhd Level 4 (3rd Floor) Wisma 202018 Kuantan Branch Nestlé Products Sdn Bhd No. Choosing the right distribution channel (i.e. 30.MKT260 2. Batu Tiga40000 Shah Alam. 23. 25720 Kuantan. The major distribution channel include with geographically consideration with the manufacturing place situated. These decisions are critical to the success of an organization. Selangor Tel : 03-55195333 Fax : 03-55106263 Nestlé Foods (Malaysia) Sdn Bhd Chembong Jalan Perusahaan Utam Nestlé Foods (Malaysia) Sdn Bhd Shah Alam Shah Alam Complex Jalan Playar 15/1 P.MKT260 Jalan Belia 88100 Kota Kinabalu.O. Sarawak Tel : 082-235918 Fax : 082-417066 Sibu Area Sales Office Nestlé Products Sdn Bhd Lot 480. Pejabat Pos Kelana Jaya 46781 Petaling JayaSelangor Tel : 03-77811822 Fax : 03-77813823 Nestlé Foods (Malaysia) Sdn Bhd Batu Tiga Jalan Playar 15/1 40000 Shah Alam. P. Jalan Then Kung Suk. Level 7 Jalan Ban Hock / Central Timur. Sarawak Tel : 084-214672 / 213064 Fax : 084-214727 FACTORIES Nestlé Foods (Malaysia) Sdn Bhd Petaling Jaya 25. Sabah Tel : 089-776365 Fax : 089-753211 Miri Area Sales Office Nestlé Products Sdn Bhd Lot 1894. Selangor Tel : 03-55195333 Fax : 03-55102028 Nestlé Foods (Malaysia) Sdn Bhd Raja Muda Shah Alam Complex Jalan Playar 15/1 P. Piasau Industrial Estate Jalan Dtk Patinggi Hj Abd Rahman Yakub 98000 Miri. Upper Lanang. Box 7010 40700 Shah Alam.O. Sabah Tel : 089-223201 Fax : 089-225498 Sarawak Branch Nestlé Products Sdn Bhd Menara MAA.O. Tawau. Jalan Dunlop. Sabah Tel : 088-243030 Fax : 088-237498 Tawau Area Sales Office Nestlé Products Sdn Bhd 4th Floor. Block 4 Miri Concession Land District.Jalan Tandang P. Box 8081. 20 Jalan Tiga 90000 Sandakan.O. Selangor Tel : 03-55195333 Fax : 03-55102028 20 | P a g e . 93100 Kuching. Man Tong Shing BuildingTB 20. Sarawak Tel : 085-653054 / 663415 Fax : 085-661648 2nd Floor. Box 7010 40700 Shah Alam. Box 1319 96008 Sibu. great care must be taken not to damage the perceptions of the product built up over decades of marketing. Block 7 Plot 47. Box 710 31000 Batu Gajah. Nestlé can set marketing objectives for each of its product. promotion and distribution. In order to achieve this. these strategies must be flexible and relevant to each new generation of consumers. Box 37. Sarawak Tel : 06-6853944 Tel : 082-439439 Fax : 06-6857602 Fax : 082-439097 Product positioning Having decided its corporate objectives and strategy. product development. Negeri Sembilan Tel : 06-6853944 / 6853952 Fax : 06-6853926 Nestlé Foods (Malaysia) Sdn BhdKuching Lot 844. Nestlé has to develop a marketing strategy that will take into account all the elements of the marketing mix.MKT260 Kawasan Perindustrian Chembong 71300 Rembau. (Malaysia) Sdn Bhd] Chembong Tel : 082-439439 Jalan Perusahaan 4 Fax : 082-439097 Kawasan Perindustrian Chembong 71300 Rembau. Block 7 Muara Tebas Land District Demak Laut Industrial Park. Negeri Sembilan Nestlé Manufacturing (Malaysia) Sdn Tel : 06-6853944 Bhd Fax : 06-6857602 [Formerly known as Nestlé Cold Storage (Malaysia) Sdn Bhd] Kuching Nihon Canpack (Malaysia) Sdn Bhd Lot 915. P. This will involve individual strategies for pricing. P. Channel function Nestle Malaysia have 8 factories and 6 sales offices nationwide. Perak 93714 Kuching.O. Lorong Bemban Bemban Industrial Muara Tebas Land District Park Demak Laut Undustrial Park. Sarawak. Nestlé Manufacturing (Malaysia) Sdn Bhd P.O. but at the same time.O. in this case an individual product which is Milo. The two types of channel are by using retailer and merchant/wholesaler. Box 710 [Formerly known as Nestlé Cold Storage 93714 Kuching. Nestle Malaysia are using two type of channel intermediaries to market its product which is Milo. The primary objective for Milo is to maintain its position as the Malaysia’s number one selling chocolate malt drink brand. Since Nestle Milo is an established brand name. It is convenience for 21 | P a g e . financing). storing. These channel also have their own function such as transactional function (contacting. risk taking). sorting) and facilitating function (researching. promotion. Channel structure Retailer Channe l Producer Wholesale r Channel Producer Wholesaler s Retailers Consumers Retailers Consumers 22 | P a g e . negotiating. shorter time for shipment and have high number of customers.MKT260 Nestle Malaysia since both channel have a lot of advantages in high frequency of ordering. logistical function (physically distributing. and therefore vehicles and journeys. Combining road and rail transport also helps to optimize distribution and reduce vehicle journeys. a software tool to assess and recommend pallet layouts. as has the development of dual temperature vehicles enabling consolidation of deliveries of products such as ice cream and confectionery.MKT260 Product transportation Methods have been developed to ensure that vehicles. Examples of initiatives include the development of Opal. Pilot with Schenker 23 | P a g e . containers etc are used in the most efficient way. Computerized milk-collection systems have reduced driving distances by as much as 10%. Optimizing Networks Working with contractors and co-operating with other producers allows the free vehicle capacity of one company to be matched with the available loads of another. Paper board “slip sheets” and innovative pallet designs have also improved load utilization. This led to a significant reduction in numbers of pallets. they also can sell miscellaneous item such as a unique mug with Milo’s logo. a key chain. one of the leading international integrated logistics companies. airport. less fuel consumption. specific Nestlé guidelines highlight opportunities and best practices related to managing transport resources. Place recommendation For the place that we recommend. a school bag complete with the stationary for children. Milo’s can put their vending machine in a place that always full of people such as shopping mall. Other than that. to determine the environmental impact per unit of product delivered in one of their European land transport networks. It results in less noise. The results of this study showed that transport generated on average some 15 kg of CO2 emissions per ton of product delivered. fewer emissions and less waste. or a backpack for the sporty person. less congestion. hospital. Improving transportation and distribution of products from factories and distribution centers to customers and consumers leads to environmental benefits and cost reductions. 3. Milo can build their own shop in a mall or any other strategic place whereby the shop only sell Milo’s product. school and any other place. Besides. Promotion 24 | P a g e .MKT260 Nestlé initiated a pilot with Schenker. Therefore. This represents about 10% of CO2 generated during the manufacturing process and is equivalent to emissions released by a standard passenger car travelling for 100 kilometers. Advertising 25 | P a g e . As example. They also effectively communicate this differential advantage through advertising featuring Malaysia top national athlete such as Datuk Nicol Ann David. Milo convinced their customer that children will be more energetic if they consume Milo. Nestle are also using other form of advertising such as non-media communication or advertising. Nestle also sending their advertisements to consumer in many new and innovative ways. Promotional strategy is a plan of optimal use of the elements of promotions that is used by Nestle to promote Milo. no matter how well developed. priced or distributed. Such features can include high product quality. Beside the promotion or communication above. or reduced price offers on Milo product. low prices. such as with interactive video technology located in departmental stores and supermarkets and through Internet Web. 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. sponsorship activities. 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. radio. cannot survive in the marketplace without effective promotion which is a communication by marketers that informs.MKT260 Few good or services. newspaper and etc. Some of the ways that Nestle have done are by participating exhibitions. With the increasing fragmentation of traditional mass media choices. Nestle does not emphasis too much in attracting competitors customers since 90% Malaysian consume Milo. excellent service or a feature not offered by other competitor. Those are the tools that used by Nestle to persuade customer and build customer relationship with their product. Nestle carries their promotional effort trough traditional mass media such as television. public relations and sales promotion such as giving freebies with good. persuades and reminds potential buyers of a product in order to influence their opinion. 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. • 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. • Internet Nestle have their own website which is www. magazines. This strategy is to attract the consumers especially children and parents to buy this product. Nestle also have their own website for each countries that is under Nestle including North Korea and Israel. It is really effective since it can instill relationship between product and consumers.000 products worldwide. radio. television. Uniquely.my ) which is estimated around 30.MKT260 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. www.com and there are more than 100 countries are registered under this website. They normally open a booth in every event they sponsored and giving out free Milo drinks. The communication is not just about advertising only.milo.g. Nestle also have their own website for each product that they sell (e. Also shown in the commercial break is the boy’s parent provide Milo for their children. 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. • Printed Media 26 | P a g e . Type of Advertising Media used by Nestle • Television Nestlé applied this source for Milo product.com. or the Internet).nestle. 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. billboards. and the communication often creates a creative slogan in order to make sure consumer will remember Milo. 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. The advertising normally sports public figures such as Datuk Nicol Ann David in order to attract sportsmen and children who are involves in sports. magazines as well as posters. Effects of advertising Promotion The pictures below show some example on how Milo’s promote their products to the customer. 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.MKT260 Printed media includes newspapers. 27 | P a g e . The marketer does not create the segments. This promotion will attract sporty person to buy it. This is because Milo’s have make a promotion which is they will get free 50gm with every purchased of Milo 400gm pack. the marketer’s task is to identify the 28 | P a g e . This is because the tumbler is easy to carry everywhere and it is very fit to sporty person that have to move a lot. Segmented and Target Market A market segment consists of a group of customers who share a similar set of wants. they will get 3 edition Raya cards with different design and this promotion valid on the period that have been stated.MKT260 • Free Raya Cards for any 6 cans purchase special If the customer buy 6 cans of Milo. This kind of promotion will attract all the kids and even the adult to buy it. • FREE 1 MILO sporty tumbler with every purchase of MILO 1kg pack. they will get 1 Juara Cup. • Buy MILO 400g free 50g This promotion is for customer that likes to save their money. • 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. Nestle should target people in the higher income groups.MKT260 segments and decide which one (s) to target. The company can create a more fine-tuned product or service offering and price it appropriately for the target segment. Demographic Segmentation: • Age: Nestle can easily target various age groups. Our market segment is based on our observation. • Cities: Consumption of Milo is more in the cities as compared to the villages due to various factors such as income and education level. Segment marketing offers several benefits over mass marketing. The consumption of cold Milo goes down during the rainy season as people prefer to have hot Milo. But Nestle can segment the market on the basis of season. Nestle should focus more on making Milo available in the every places where people are willing and able to buy. For older people it already has clinical nutrition. • Income and occupation: People will buy Milo when they have enough monetary resources. The company can more easily select the best distribution and communications channels. which are the companies going after the same segment. For children it can introduce Milo with additional nutritional contents such as vitamins and minerals. analysis as well as we is in Nestle shoes. In hotter regions the consumption pattern doesn’t change much. The customers can be classified according to the following variables: 1. • Gender: It will be very beneficial to target women as they usually shop for their family. they will purchase. 2. People with blue collar jobs can be targeted by telling them that the Milo 29 | P a g e . The most important of these groups are children and old people. Geographic Segmentation: • Regions: Commonly people prefer to drink Milo throughout the year. and it will also have a clearer picture of its competitors. It just needs to get its product known among these people. If they are convinced that the Milo will be good for their families. 4. Domestically Nestlé’s Milo manufactured finished products may be force to switch to offshore sourcing of certain 30 | P a g e . Promotion Recommendation To make Milo being well-known all over the country. Milo can promote all their delicious product to the customer so that they are able to try all the product that produced by Milo. This will increase the profit.MKT260 will help them in their daily routine. the will pick a lucky number and the lucky customer can redeem their price at the nearest Milo’s branch. After we have been through the discussion. Besides that. for sure they will but it again and again. and so much more. they should make a lot of promotions which is dissimilar with the promotions that they have done before. They should combine all their products in one pack that include mini pack of Milo powder. Milo energy bar. • 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. • Personality: People who are outdoorsy and are involved in sports can also be targeted by tagging the brand with some sport celebrity. Such people can be easily targeted as they are very health conscious. 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. They just need to put a lucky number behind the packaging and the end of the month. 3. Nestle can urge these people to buy Milo which is rich in nutrition. By doing this style of packaging. Price The firm has several options for addressing the price. Milo can make a different packaging style. Milo fuze. If they interested with one or all the product. 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. 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. they did not fully informed about company experience when they set prices. Penetration pricing and Status quo pricing. The management level consciously and systematically seeks to ensure that accumulated national pricing experience is influenced and applied wherever relevant. 31 | P a g e .MKT260 component to keep costs and prices competitive. The organizations revenue represented that the food and beverage like Milo’s product gain more return on investment than other. 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. This type of approach is sensitive to the local market. 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. 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. 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. Price strategy Price strategy is a basic. Another factor is a through audit of the distribution structure in the target markets. demand and changes in Product Life Cycle. It is easy to follow competitors pricing but they may not have the best considering cost.yy Fine-tune base price Establishing pricing goals Marketers have 2 choices whether to use profit oriented profit maximization or satisfactory pricing. If Nestle Milo have decide to go for profit maximization objective. costs. they must be able to afford large sum of investment. and profits Choose a price strategy High $ Skimming Status quo Penetration n Low $ Evaluate results Set price $x. 32 | P a g e .MKT260 Setting the right price Establish price goals Estimate demand. So they have to require a careful analysis before setting the price. The marketers need to have an understanding of trends and changes in the market place to set a goal. the competitors also will influence the pricing strategy. they will choose a good pricing strategy that will give them direction of price movements over the Product Life Cycle. they have to produce a good quality of Milo. costs and profit. Nestle Milo are aware about higher price. If they set higher price. costs and profit. if Nestle Milo introduces a new product that same with competitors. Unless. Nestle Milo can differentiate and convince consumers. After the pricing goals have been established. It is important for Nestle Milo to know the corresponding cost for each product price. For example. Nestle Milo have to estimate demand. they can set the higher price for the product. Choose the price strategy When Nestle Milo has decided the product price. determine level of price and how much market share they will get. the price will be restricted and close to the price of competitors. So they need to estimate the profit that they will earn. Pricing Tactic Diagram 33 | P a g e . Besides that.MKT260 Estimate demand. they are receiving a quantity discount. Functional discounts 34 | P a g e . Cash discounts Cash discount is a price reduction offered to a consumer. 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. Seasonal discounts also enable manufacturers to maintain a steady production schedule year-around. flat freight charge. Promotional allowances Is also known as trade allowance which is a payment to a dealer for promoting the manufacturer’s products. This compensation. It shifts the storage function to the purchaser. It is both a pricing tool and a promotional device. they must be compensated. 35 | P a g e . the more they pay. Seasonal discount Seasonal discount is a price reduction for buying merchandise out of the season. Uniform delivered pricing If the marketing manager wants total costs. including freight. the seller pays the actual freight charges and bills every purchaser an identical. Functional discounts vary greatly from channel to channel. 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. is called a functional discount or trade discount. With uniform delivered pricing. such as wholesaler and retailer. typically a percentage discount from the base price. depending on the tasks performed by intermediaries. perform a service or function for the manufacturer. The farther buyers are from the sellers. Rebates A rebate is a cash refund given for the purchase of a product during a specific period. the firm will adopt uniform delivered pricing or “postage stamp. 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.MKT260 When distribution channel intermediaries. to be equal for all purchasers of identical products. 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. regardless of the city from which the goods are shipped. but not necessarily all of the seller’s market area which will may modify the base price with a zone pricing tactic. the seller designates a location as a basing point and charge all buyers the freight cost from that point.MKT260 Zone pricing A marketing manager who wants to equalize total costs among buyers within large geographic areas. The price will be divided into segments or charges based on the zone that given. Basing point pricing With this tactic. the seller pays all part of the actual freight charges and does not pass them in the buyer. The manager may use this tactic in intensely competitive area or as a way to break into new market area. Freight absorption pricing In freight absorption pricing. Price lining 36 | P a g e . they need get raw material such as cocoa from the cocoa supplier. Consumer penalty An extra fee paid by the customer for violating the terms of the purchase agreement. For Nestle Milo. If the supplier increases the cocoa price. 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. 37 | P a g e . it also will affect the price of Milo because the Milo’s cost of production will also increase. Odd-even pricing A price tactic that uses odd-numbered prices to connote bargains and even numbered prices to imply quality.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. Price bundling Marketing two or more products in a single package for a special price. Two-part pricing A price tactic that charges two separate amounts to consume a single good or service. we need a good raw material. Factor Affecting the Pricing Cost Product To produce one product. Unbundling Reducing the bundle of services that comes with the basic product. they also will determine the geographical factor. Milo need to pay high for the individual who involves in this promotion activity. Competition Different kind of product will have different level of demand from the communities. the price will be change. For example in West Malaysia. they sell it at RM12. through television. it will attract other producer to produce the same or even better product. they will increase the price of Milo’s product. they need to make a lot of promotion and using different way such as advertising. Because of competition. Milo’s sell the 3 in 1 Fuze at RM12.MKT260 Promotion To make Milo more well-known all over the world. The cereal will increase the cost of production and at the same time. Price recommendation 38 | P a g e . The competitors will start to offer a discount or they will offer bargain price. As a result. That is why quality factor can affect the price of Milo. Place To set up price for Milo’s product. they add some cereal in Milo 3 in 1 Fuze. All the producers will ‘fighting’ with each other to make their product more well-known or more favorable. Quality To make Milo more variety and more interesting to buy. the price of Milo will also increase. newspaper and so much more. they will make something that can increase their product quality. internet. This is because the transportation cost to East Malaysia is very high compare to West Malaysia. If a product has a high demand.00 but in East Malaysia. And to cover the money that they have spent.50. there will be a lot of competitors and competition. These promotion activities will cost a lot and sometimes. For example. MKT260 For the price.T Analysis for Milo We are going to produce a SWOT analysis to find out how effective Milo is operating and what internal factors may influence its success. Generally we can conclude that Milo are not bias and are suitable for all level of person. 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.W. S. This is also known as eco pack. consumers can make a good perception for the company who are concern with the society. Milo should make a good pricing strategy. A SWOT analysis analyses the internal factors that may influence the success of a business. If they want to put a high price for the particular product. By doing so. Other than that.O. 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. they have to make sure that the quality and the quantity are suitable enough with the price. The initials SWOT stand for: Strengths Weaknesses Opportunities 39 | P a g e . cans. pouches. * Big sales in other countries.MKT260 Threats Here is a SWOT analysis on Milo: Strengths * Focusing only on chocolate energy drink. etc) Weaknesses * Not enough diversity in flavors * Packaging (design of tin + labeling) PEST Analysis We are going to produce a PEST analysis to find out what external influences may be affecting the product (Milo) and to what extent to which customers decide to buy them. * Part of Nestle (reputation) funds available for re-launch. energy drinks) * Well known successful brands as competitors * Competitors could use aggressive marketing tactics cut prices/increase promotion * Competitors bring out similar products * Competitors have diversity in packaging (bottles. The purpose of the PEST analysis is to analyze the organization (Nestle Milo) operates and to identify how it may influence marketing decisions. * Widely available Opportunities * Increased media available (mobiles/internet) * Increased fitness industry * Increase awareness of health and fitness * Sponsorship (through sporting events) Threats * Competitors (hot chocolate. * Promotion/advertising done in other countries. A PEST analysis analyses the external environment in which an organization operates and identifies how 40 | P a g e . * It is available in different sizes. * Unique selling point. shapes and type. * Value for money. inflation.g. Technological Factors Development in technology gives rise to new products and market opportunities. the rapid growing use of computerized reservations systems.T stand for: Political Economical Strengths Threats Political Factors The actions of governments can have major effects on business and markets. taxes. Economical Factors Consumer spending may be controlled by a range of economic factors such as income levels. unemployment.S. The initials P.E.MKT260 it should influence marketing decisions. exchange rates and mortgage rates. including creating or reducing demand for particular products and services. e. Social Factors Social trends are important because they have a direct influence on the demand for particular types of product. Here are the advantages and disadvantages of using a PEST analysis: Advantages * Outlines government law on businesses * Can be compared to previous PEST analysis therefore changes in the market may possibly be anticipated 41 | P a g e . advertising standards. it changes the price you end up paying) * Taxes (if they go up so will the costs for consumers) * Recession (people have less disposable income – would they buy Milo?) * Inflation (prices go up for the company and for the consumer) Social * Society more aware of healthy lifestyle/rise in fitness industry * More focus on leisure time * More disposable (can afford to buy luxury goods) income * Fashion (could Milo be the next fashionable drink) 42 | P a g e . consumer protection. trades description * Restriction on imports * Government back ‘Milo’ as an energy drink Economical * Exchange rates (what are they here/abroad. If your buying from another country and the rates differs.MKT260 * It indicates whether business has improved or not Disadvantages * May be erroneous * Expensive (takes time to produce) * Problems in the PEST analysis cannot be rectified as they are all external issues Here is a PEST analysis on Milo: Political * Stay within the law (being aware of legislation health and safety. The Milo Fuze drink range also continued to grow in popularity and demand due to its attributes of convenience and nutrition for young adults. as part of the commitment to build a healthier society through sports. attributable to the sharp increase in commodity prices in 2007 and the introduction of Private Label competitors. which included: 2008 Le Tour de Langkawi 2008 SEA Junior Table Tennis Championship 1st Asian Indoor Hockey Championship Milo International Junior All Stars 43 | P a g e . and sponsorship programmers for the development of grass root sports continued unabated. further strengthening the brand’s nutritional image amongst its consumers by offering a complete Milo drink with more milk and nutrition. which emphasized the nutritional benefits of Milo chocolate malt powder under the header “10 Reasons Milo Does More for Your Child”. Some 200 events were held at both the local and international level. During the period under review. Milo Gold nutritious chocolate malt drink was launched. Milo products maintained its strong market share and the ubiquitous beverage remains a perennial favorite amongst Malaysian consumers. Corporate Social Responsibility The period under review posed considerable challenges to Milo. However. The highlight of the year was a new communications campaign.MKT260 Technological * Advanced in technology change product/packaging/flavors * Advance in science (add to Milo formula more energy/healthier) * Advances in production technology (more efficient + better quality/ less staff required = cheaper for Nestle = cheaper for customers) * Improved media/communication internet/mobiles etc. The brand continued its strong legacy of sports development. Nestle push limits. In addition to the eight scientific department’s specializing in highly focused disciplines. Each product involves research. Olympic Council of Malaysia. as well as many opportunities to work with leading scientists in universities and research institutes worldwide. various youth development programmers organized by the Malaysian School Sports Council. All in all. development and a huge amount of hard work and commitment. this might mean researching and developing new process technologies or renovating existing products and technologies. the scientist have access to the collective knowledge of the rest of the R&D Network and the whole Nestle group.MKT260 Tenpin Bowling Championship Milo International Junior All Stars International Squash Championship Local support included the National Schools Sports Championships. just since Nestle are here to help the consumer which is you. Nestle Malaysia join the various international teams which are together responsible for creating the new confectionery products and processes that will guarantee Nestlé's Malaysia future success. Nestle Research and Development Based at Nestle Product Technology Centre in York. 44 | P a g e . Milo also supported the Malaysian 2008 Beijing Olympic contingent by being the Official Nutritious Chocolate Malt Drink of the contingent. analysis. Ministry of Youth and Sports and National Sports Association. Malaysia was represented by 33 athletes. producing confectionery here involves a freedom that means your day doesn't follow routine. Depending on each Nestle R&D team specialist. The global breadth of the firms networks both inside and outside nestle Research Center (NRC) give their scientists a unique working environment. the largest Malaysian contingent in more than five (5) decades. They comprise of quality ingredients as well as incredible amounts of passion from all who make them. blend technical curiosity with professional expertise and work with confectionery at a molecular level. NRC established the scientific knowledge base for Nestle. brief interview should conduct with 45 | P a g e . Today. This change responds to the modern consumers need and desires for food that offer both enjoyments and nutritionally proven health benefits at all stages of life. The role of NRC within Nestle is pivotal in helping fulfill Nestlé vision of making good food for good life. the Nestle Research Center is universally recognized as one of the world leading laboratories in the food and life sciences and as definite leader in several region. good life”. Health and enjoyment are the elements of wellness and well-being and the NRC is playing an important part in bringing precisely these qualities to consumers. To lead into 21st century. Nestle management made the strategic decision to position Nestlé not just as a trusted food company.MKT260 Opened in 1987. and clearly defined the direct role and responsibility of the Center in Nestle future. It accumulates know-how in support of all sectors of activity and is the hub for all nestle R&D network. This decision firmly positioned nutrition as a major driver for the Nestle Research center. we believe that the best way to research Nestle strategy in Malaysia is to try and contact Nestle and perhaps. health and wellness company as embodied in the corporate logo. but also as the world leading nutrition. Nestle has a well established reputation for excellence in research on food and nutrition that has benefited consumers for over a century. Conclusion As the conclusion. “good food. T recognized the scientific challenges in this area. Nestle shares its name with all its products. for instance Nestle Milo or Nestle Nescafe. The efficiency and high frequency in distributing Milo nationwide has been a convenience for consumer since they can buy it easily at any store such as Mydin Mart. brand name for the company and family name for all nestle products in the market. It is very competitive since the price is high in quality and most of the consumer does not thinking too much about the price.MKT260 the global brand such as Nestle. Nestle also never run out of idea and they always introduce new Milo product for the customer convenience. This is instance part of their branding and their wider marketing strategy. cheap. Although Nestle Milo is very established in Malaysia which 90% Malaysian consumer Milo. I think wider marketing strategy is universal across the globe. But again we think it is differs from one region to another. Nestle is a brand. It is also an umbrella name for. like Maggi for example. TABLE OF CONTENT No 1 Title Acknowledgement Page 1 46 | P a g e . Nestle also is a product for everyone which suitable for all income level since the price that set by the company is affordable and perhaps. The marketing channels that have been used by Nestle to distributed Milo are also one of the key successes of the product. Carrefour and any convenience shop. Nestle push their R&D team in order to make sure the product is up to date and attractive to stand out from competitor. Unlike P&G or Uniliver. but Nestle never take it for granted. S.MKT260 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Executive summary Introduction to Nestle Nestle Corporate Philosophy Nestle Marketing Strategy Nestle Malaysia Introduction to Milo Product Life Cycle Product Place Promotion Price S.O.E.W.T Analysis P.T Analysis Corporate Social Responsibilities Nestle R&D Conclusion 2 3 4 5 6 6 8 9 19 25 31 39 40 42 43 45 47 | P a g e .