In every market, different companies offer products; consumers always want to choose the best and the healthiest product. Nestle is one of the companies which caters for the nutritional needs of consumers. Due to the great competition in the market, Nestle has evolved its product with a passage of time to maintain the market share being our main reasoning for choosing Nestle Milo. The market share of Nestle Milo is so large that their biggest competitors comprise of their own products such as Nesquick.
Milo markets itself to teenagers by being a beverage that will provide kids with enough energy for sports and a fast lifestyle, whilst still being healthy. Another large part of Nestle Milo’s Marketing is the sponsorship and community programs which consist of Nestle’s ‘MILO in2CRICKET’ program offering children an opportunity to “have a go” at cricket whilst promoting physical activity at a young age. On top of this Nestle Milo also sponsors various sporting events at a school level to ensure all children have the opportunity to build their sports skills for the future.
In the business environment, there are different forces such as economic forces, legal forces and the socio-cultural forces which can have an impact on the product, on the organization and the marketing manoeuvres in which nestle undertakes. This will be further examined in the first section of the report.
As we all know that there are several forces that can impact a product and an organization. Companies must take different measures according to their environments to ensure the survival of their products. When we look at Nestle Milo, we will come to know that Nestle has taken many steps to make Milo compatible with the needs and expectations of consumers. According to Ryan (2004), Nestle introduced the phrase “good food, good life”. When we look at Milo, we can see that Nestle has tried to focus on the health and nutritional benefits of its product. Nestle has also tried to focus on the market of children from 6-13 years of age. Some of the examples of the initiative taken by Milo are the ‘Good Food, Good Life’ Campaign and the ‘Milo in2 Cricket’ Program.
The ‘Good Food, Good Life’ campaign is a consumer psychology that they relate the brands with things or feelings. Whenever a brand name comes to their minds, something associated with that brand or their own personal experience comes into their minds as well. In a similar manner, consumers recognize Milo as a symbol of nutrition and Health. Even the packaging and the outlook of Milo symbolises nutrition, health and energy.
Another example of the initiative taken by Milo is Milo in2 cricket. It is actually an initiative taken by Milo in its Australian market. This initiative is for the children who are between the age of five and ten. In this program, these children participate in a six to twelve week cricket camp. This marketing move has enabled Nestle to penetrate into the potential market of Milo, that is, children. The program basically focuses on providing children with the skills that they need to have to perform well in cricket. Also, children attending the Cricket camp receive Milo products and merchandise which causes a great promotion for the product.
Environmental Forces – Socio-cultural
Socio-cultural aspect is one of the most important macro environmental factors that can have an impact on a product. According to Elliott et al. (2010), when a...