Comprehensive Marketing Mix Of Milo – Explained in Detail

Updated on: Sep 22, 2021

Milo is the world’s most popular chocolate malt beverage (powder product) that can be made with cold or hot water or milk. It provides the requires vitamins and minerals to encounter the energy and nutrition demands of teenagers. The company was launched in Australia in the early 1930s, the Milo brand looks into the kids’ development seriously. It is known as a vibrant beverage strongly associated with good health and sports.

This blog is all about the marketing mix of Milo in detail by looking at all the 4Ps strategies. Let us know about the company better first.

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About Milo

Milo Logo | Marketing Mix of Milo | IIDE

 

Milo is a chocolate-flavored powder product made by Nestle, one of the world’s largest food businesses. It’s commonly blended with milk or hot water, or both, to make a chocolate-flavored beverage. The company was originally first flourished in Australia by Thomas Mayne in 1934.

The brand is sold as a powder product in a green tin, often relating to various sporting activities. In some places, it’s also available as a premixed beverage, and it’s been turned into a breakfast cereal, chocolate candy, and a macromolecule shake. Its formation and style dissent from country to country. Milo is a well-known character in an exceedingly wide selection of nations around the world, significantly in Australia, Asia, and Africa.

Now that we have a better understanding of the Milo company, let’s briefly look into the marketing mix strategies of MIlo. 

Current News of Milo

  • Nestle Philippines invests $43 million in new Milo chocolate drink plant:- In August 2022, Nestle Philippines announced that it would be investing $43 million to build a new plant to produce a key ingredient in its Milo chocolate and malt drink. The new plant is expected to be completed in 2023 and will help meet the growing demand for Milo in the Philippines.
  •  Milo’s Tea Company announces plans for a new plant in Spartanburg County, S.C.:- In October 2022, Milo’s Tea Company announced that it would be building a new manufacturing and distribution facility in Spartanburg County, South Carolina. The new plant is expected to create more than 100 jobs and will help to meet the growing demand for Milo’s Tea products in the United States.
  • Nestle India to re-energize Milo with ‘badam shakti’ and launch it in 15-gm single-serve sachets.:- In February 2023, Nestle India announced that it would be re-launching its Milo chocolate health food drink (HFD) with a new formulation that includes almond extract. The new Milo will also be available in single-serve sachets, which are more convenient for on-the-go consumption.

Buyer persona

Buyer’s Persona

Name:

Sarah

Place:

Mumbai

Age:

24 years

Profession:

Office worker

Motivation

  • Family Well-Being
  • Healthy Lifestyle
  • Energy and Vitality
  • Nutritional Needs

Interest & Hobbies

  • Fitness and Health: 
  • Cooking and Nutrition
  • Outdoor Activities
  • Parenting
  • Healthy Lifestyle Resources

Pain Points

  • Lack of Time
  • Nutritional Concerns
  • Energy for the Family
  • Balancing Convenience and Nutrition

Social Media Presence

  • Active on Instagram
  • Pinterest User
  • Engages on Facebook
  • Subscribes to Newsletters

Marketing Mix of Milo

The marketing mix is a marketing model that helps us understand a company by focusing on the 4Ps: product, price, place, and promotion. We’ll look at the marketing aspects of the company and assess Milo’s business model by looking at its marketing mix. The marketing mix strategies are listed below.

1. Product Strategy of Milo

Milo Products | Marketing Mix of Milo | IIDE

The company Nestle arrived with this product in 1934 narrowly and further progressed with a new plan in 2006 which awarded Milo for offering in the area of health. Nestle expanded this company in 2007 with the concept of adding more malt and milk to help people get more energy naturally. 

Chocolate as an ingredient enhances the overall taste. It also helps to create, give rise to, and maintain more markets for the company. In the product development group, the Nestle Milo focuses on the following areas:

  • Continuous innovation, research, and development to enhance the product’s quality which further enhances the product’s effectiveness.
  • Product availabilities in different sizes provide larger options to the end-users to get products.

Milo also focuses on an eco-efficient packaging approach that creates differentiation. So, let’s get to know about the pricing strategy of Milo. 

2. Price Strategy of Milo

The concept of pricing strategy helps the company to design and develop similar prices per unit in each geographical location which has a greater impact on the buying behaviour of consumers. 

Nestle Milo conjointly used polycentric rating plans in freelance distributors’ eventualities within the native market. It is utilizing a penetration pricing master plan, in which the company begins with a cheap price to target the mass market.

Aside from that, the brand focuses on the concept of other pricing approaches based on quantity discounts, functional discounts, cash discounts, seasonal interests, and offers, direct and indirect business offers and benefits, geographical pricing strategies that include free onboard pricing procedures, zone pricing methods, flexible and single pricing, and other customized pricing methods. 

3. Place and Distribution Strategy of Milo

Milo defines and styles distinct strategic approaches and practices for storing and modifying their merchandise and setting up organized and arranged distribution and merchandise channels. Concepts and practices of effective inventory management enhance the overall performance and save the cost for the Nestle Milo.  

Effective and efficient geographical-based manufacturing units enhance the productivity of the distribution network and the concept is cost-effective in terms of distributing the products in the target market.

Through different departments and expansion in different locations with the concept of establishing factories and manufacturing units saves time and cost for the company and provides an effective and efficient distribution system.

These channels provide other support function to the company that involves transaction function, logistic function, and facilitating function that improves the overall frequency of order processing in a shorter time. So now let’s peek into Milo’s promotion strategy.

4. Promotion Strategy of Milo

Milo Campaigns | Marketing Mix of Milo | IIDE

Support and sponsor several life events to promote Nestle Milo which are as follows: 

  • In 1984 they grouped Milo Olympic display, in 1980 grouped Milo Van, in 1978 subsidized Milo football training hub, and again participated in 1970 Milo Van and many other events categorized by Nestle.
  • To promote its Nestle Milo the company associates Milo with health and energy. Due to continuing support of products and live events innovation in 2006, Nestle Milo was recognized with a healthier concept and endorsement by Singapore’s health promotion board.
  • The organization also supports the local team to participate in national and international games which created a positive image in Singapore. A social network account in the name of Milo also helps to create perception and collect information and customer experiences for better results.

Digital Marketing Strategy By Milo

Milo, like many successful brands, employs a comprehensive digital marketing strategy to engage its audience, build brand awareness, and drive sales. Here are key elements of Milo’s digital marketing strategy:

  1. Strong Online Presence:
  • Website: Milo maintains an official website that serves as a central hub for information about its products, nutritional content, and recipes. The website also includes an e-commerce section for online sales.
  • Social Media: Milo actively participates on major social media platforms such as Facebook, Instagram, Twitter, and YouTube. These channels are used to connect with consumers, share engaging content, and respond to inquiries.
  1. Content Marketing:
  • Blogging: Milo may have a blog section on its website where it publishes articles related to nutrition, fitness, and recipes. This content not only educates consumers but also drives organic traffic to the website.
  • Video Content: Short recipe videos and promotional videos are shared on social media and video-sharing platforms like YouTube. These videos showcase how to use Milo in various recipes and drinks.
  1. Influencer Partnerships:
  • Milo collaborates with fitness and parenting influencers who align with their target demographics. These influencers create content featuring Milo as a nutritious and energy-boosting addition to their daily routines. These partnerships leverage the influencer’s credibility and reach.
  • Example: Milo partnered with a well-known fitness influencer who shared her daily workout routines and how she includes Milo as a post-workout recovery drink. Her posts and videos not only showcased the product but also highlighted its role in an active lifestyle.
  1. Personalized Email Marketing:
  • Milo employs personalized email marketing strategies to cater to the individual preferences and behaviors of its subscribers. Subscribers receive tailored content and product recommendations based on their past interactions with the brand.
  • Example: A subscriber who frequently purchases Milo Nutri G might receive an email featuring new Nutri G flavor options, while another subscriber who has shown interest in Milo recipes might receive a newsletter with recipe ideas and promotions.

Top 5 Competitors of Milo

  1. Nestle Nesquik: It is a chocolate milk powder that is also manufactured by Nestle. It is a popular brand in many countries, and it is known for its sweet and creamy taste.
  2. Ovaltine: It is a malt-based beverage powder that is popular in Europe and Asia. It is known for its malty flavor and its nutritional benefits.
  3. Horlicks: It is a malted milk drink that is popular in India and Southeast Asia. It is known for its creamy texture and its ability to provide energy.
  4. Bournvita: It is a chocolate malt drink that is popular in South Africa and other African countries. It is known for its rich chocolate flavor and its ability to provide energy.
  5. Cadbury Milo:  It is a chocolate malt drink that is popular in Australia and New Zealand. It is known for its smooth and creamy texture and its chocolatey flavor.
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Conclusion

So we can say that Milo is one of the largest chocolate flavoured powder product-producing brands in the world. Why? As it produces and delivers drinks to meet society’s rather youngsters growing needs.

Milo used completely different ways to develop and style the merchandise portfolios in terms of development, product promotion, valuation ways, inserting the merchandise effectively, develop a robust distribution network.

The entire marketing mix strategies are based on a certain concept and it involves a range of steps to design and develop each parameter.

Being one of the chocolate flavoured powder product brands serving across many countries, Milo should continue to produce and deliver more such products and execute them in the best possible way to remain as competitive as they are in the market.

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Author's Note:

My name is Aditya Shastri and I have written this case study with the help of my students from IIDE's online digital marketing courses in India.

Practical assignments, case studies & simulations helped the students from this course present this analysis.

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Aditya Shastri

Lead Trainer & Head of Learning & Development at IIDE

Leads the Learning & Development segment at IIDE. He is a Content Marketing Expert and has trained 6000+ students and working professionals on various topics of Digital Marketing. He has been a guest speaker at prominent colleges in India including IIMs......[Read full bio]

2 Comments

  1. Reha Chhajed

    Milo’s marketing mix illustrates a thoughtful approach to product promotion and distribution.

    Reply
  2. Premlata Prasad

    I did not know the marketing mix of Milo has such a great strategy, especially the pricing strategy!

    Reply

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