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.
Milo is a chocolate-flavoured 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-flavoured 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.
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
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 market 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 effectiveness.
- Product availabilities in different sizes that 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 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.
This is the distinct pricing strategy led by Milo to grasp its target audience. So, now let’s move on to the next section of the marketing mix of Milo – Distribution Strategy of Milo.
3. Place and Distribution Strategy of Milo
Milo defines and styles distinct strategic approaches and practices for storing and modifying their merchandise and set-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 manufacture units save the time and cost for the company and provide 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 shorter time. So now let’s peek into Milo’s promotion strategy.
4. Promotion Strategy of Milo
Support and sponsor several life events to promote Nestle Milo which are as follows:
- In 1984 they grouped Milo Olympic display, 1980 grouped Milo Van, 1978 subsidized for Milo football training hub, again participated in 1970 Milo Van and many other events categorized by the Nestle.
- To promote its Nestle Milo the company associates Milo with health and energy. Due to continuing support to products and live events innovation in 2006 Nestle Milo was recognized with 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. Social network account in the name of Milo also helps to create perception, collect information and customer experiences for better results.
Milo mainly focuses on energy and health factors along with taste which is one of the big advertising factors for Milo. With this, the case study ends here. Let’s sum it up briefly below:
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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