The organisation presented is MILO. MILO, which comes in confectionery and snacks bars provides consumers the energy that is needed for the day (Nestlé Singapore , 2012). “Energy within MILO” is our tagline, which emphasizes on the energy that MILO is able to provide for our consumers and how we advertise our products through sports. Being the organisation that has been championing youth sports development in Singapore, MILO has been using various sponsorships and endorsements to support their mission. Some sponsorship includes the Southeast Asia (SEA) Games and other event naming rights sponsorships including MILO Junior Basketball Championship and MILO-MOE Youth Triathlon. MILO has also ventured into developing global partnership with the MILO Youth Sports Development Programme, collaborating with the Singapore Sports Council and Ministry of Education (Nestlé Singapore , 2012). The endorsement strategies used by MILO includes using local youth sportsmen as our endorsers and were featured in MILO’s various products packaging and advertisements. Though MILO sees itself as the market leader in the category of malt and chocolate malt, it faces indirect competitions from the various beverage categories as well. The issues identified for MILO are:
1.How MILO stands out from competitors during sponsored events 2.Endorsement issues faced by MILO – Appropriateness of MILO’s endorsees 3.MILO maintaining as the market leader
4.Consumers not viewing MILO as a sports drink
In relation to MILO’s marketing strategies in sponsorships and endorsements, we will be focusing and looking into the first two issues identified above. Standing out from Competitors
The first issue talks about how MILO faces challenges in standing out from the competitors during sponsored events. While being the sponsors of a major sports event, MILO might not be the only sole drink sponsor present at the event itself. With the presence of competitors, MILO potentially loses to maximise its reach to the target audiences present at the event, as participants are being exposed to many choices. The lost in share of throat during the events can be significant as well. Share of throat refers to the amount of drinks a brand can deliver to their target audiences, as at a particular time, a consumer can only consume one drink at a time. Therefore, should the consumers have drank the competitors’ beverage, they would not be able or want to drink, leading to MILO losing that particular share of throat. This could potentially build up and the lost of share could be significant in the long run. Hence, in MILO’s point of view, within the share of throat, any beverage drink company that a consumer would think of at any particular time of the day, or need state, would be considered as their competitors, directly or indirectly. Sole Sponsorship Rights
An alternative solution for MILO is to obtain the exclusive sponsorship rights for the events that it will be sponsoring. MILO was one of the official sponsors for the South-East Asia Games 2009 and 2011 (LaoSOC, 2009). However, Pepsi and Coca Cola were also among the official sponsor and official partner of the event respectively. This diminished the opportunity for MILO to stand out among the sponsor list as the attention of the target viewers are saturated. Often than not, people will not associate MILO with Pepsi or Coca Cola, thinking that they are competitors. However, the indirect competition over the share of throat could be a problem for the beverage companies. Though they might have a different target audience, it is one of MILO’s objectives to be the drink that people think of at any point of time. Benefits of Sole Sponsorship Rights
Being the sole official drink sponsor, it gives MILO the exclusive rights to promote itself during the event and the complete control over the distribution of the event. This will be beneficial to MILO as it maximise the exposure for itself...