Marketing Initiatives of Milo free essay sample

Nestle is one of the biggest multinational companies in the world offering fast moving consumer goods (FMCG) such as Milo. Nestle’s Slogan, â€Å"Good Food, Good Life† reiterates what they stand for in delivering qualitative products to the end-user being their main objective. The fundamental aim of Nestle is to increase profits however at the same time, raise the standing of living and quality of life for everyone by continually providing nutritional products to promote a healthier lifestyle for all of us. 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. We will write a custom essay sample on Marketing Initiatives of Milo or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page 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 â€Å"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. Marketing Initiatives 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 â€Å"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 company is trying to maintain and establish its product in a market, it must pay special attention to the socio cultural aspect. The progressive thoughts and the changes in beliefs have impacted the population a lot. According to Bergadaa (2007), as a result, the companies have also been impacted by these changes. The parents also have an impact on the purc hases that their children make. The perspective of parents can cause a decline in the sales of product. According to Preston (2005), a customer decisions can be impacted by a change which the households are undergoing. The catholic social services (2010) have highlighted some of the difficulties which the parents are facing because of increase in petrol prices and the interest rates. Hence, other areas such as social and economic areas get impacted and the pressures build on the parents. This creates a feeling of frustration and guilt in parents. These feelings can also impact purchase decisions of parents thus Nestle must pay special attention to such macro environmental forces. Democracy is another factor which can have a great impact. Democracy is the fundamental basis of our society. It is a human nature that they always resist the imposition of anything on themselves. Galbreath has done a great work to document the importance of customer satisfaction. According to Bergadaa (2007), Nestle still continues to be impacted by the moves which a society makes to protect children against the marketing manoeuvres which companies make. This has also impacted Milo as well. Such factors will always have an impact on marketing manoeuvres of the organizations. Health – Childhood Obesity A society evolves with time into a healthy and a conscious society. They pay special attention to nutrition and health issues. Public views are greatly impacted by the health issues. Childhood obesity is one of the major issues which the modern society is facing. The society has also taken many steps to deal with these issues specially childhood obesity. Nestle Milo is continuously receiving the impacts of the measures that are being taken against childhood obesity because it is one of the most critical health problem in Australia. This socio cultural issue has caused a great impact on the company’s ability to market their product. Companies find it difficult to communicate about their products. Laws and regulations In every country, there is an organization that looks after the activities of companies. In Australia, the ASIC is doing this job. The ASIC makes laws, enforces them and acts as a regulatory authority. It works to protect creditors, investors and consumers. It has made several laws for the above mentioned purpose. The corporations Act 2001 and the ASIC Act 2001 are some of the examples of the legislations done by the ASIC. It is important that the corporate marketing initiative should follow the concerned law. Therefore, Nestle must pay attention to this environmental factor as well and must make the advertisement moves according to the laws. In Australia, the ACCC (Australian Competition and Consumer Commission) makes the laws for the industries and also regulates the industries. The ACCC sets the laws for trade practices and the industries. One of the important laws passed b the ACCC is the Trade practices Act 1974. According to the Australian Competition Consumer Commission 2005, this law addresses the issues about the quality, nutritional information and the imported ingredients. It is essential that the marketing initiatives which talk about the nutritional benefits of any product, they must comply with this law. According to James (2009), Milo is unable to comply with this law properly because of the caffeine content in their product. Excluding this issue, the Milo has always exhibited fairness in all other issues. Nestle has taken many measures to deal with the macro environmental forces. Nestle has always changed its marketing mix according to the needs of a market. It also shapes its strategies according to the environment. One of the major steps taken by Nestle is the recognition that it has obtained by the Heart foundation. The heart foundation endorses and emphasises the use of healthy products. References: 1. 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