1

10 STEP
Marketing Plan for MILO
Ma. Camille Villagarcia
5 Nov 2010
5 Steps for Part 1
(PTM and Positioning)
1. MILO PTM are future champions
2. Who want to be the best that they can
be.
3. Can choose Ovaltine, Chocquick, etc.
4. Gap is all other brands focusing on
providing kids a healthy chocolate drink
5. The market size is P 6 Billion. MILO
niche is P5.04 Billion (84%).
5 Steps for Part 2
(Marketing Mix & Strategy)
6. MILO chocolate flavored drink
7. Is 13% premium
8. Uses TV, radio, prints,
internet/social networks and
events
9. Is distributed nationwide
10. Uses a NICHE approach to win
4
Positioning to the
Primary Target Market
Part 1:
Steps 1 to 5
1. MILO primary target market
(PTM) are the future
champions
Demographics (3 13 years old, M/F,
ABC, single)
Lifestyle (study, plays sports, into
competitions, interested in an active
lifestyle)
Behavior (20g, at least once a day,
daily, strong, healthy)

I need a nutritious drink
I am complete when I have
succeeded and become a
champion in my life
I am proud when I
accomplish things
I need to belong
2. future champions NWE
Future champions

Need to get nutritious drinks, to belong (social), Self-
Esteem, Self actualization

Choose Milo over other chocolate drink because of its
brand, taste, packaging, nutritional facts, credibility
& awareness of company, promos, endorsers

Expect these when they use Milo
healthier mind and body, active lifestyle, become
future champions,
3a. Milo has many formidable
competitors
Direct: Ovaltine, Chocquick, Rich-O 3-in-1, Sustagen
Chocolate

Indirect: Ready-To-Drink chocolate, milk
(powdered & fresh), energy drinks

Variables: Age, Price, packaging, specific use,
convenience of use, availability, Occasion of use,
endorser, popularity, events/promos and brand

Age / Price Matrix: Milo is #1 in
high priced product for 0-13 yrs
Price/
Age
Matrix
3-13 yrs 14-24 yrs 25-49 yrs 50yrs up
High
price
Low
Price
Price vs. Age Matrix
Milo
Ovaltine
Sustagen
Jr.
Chocquick
Rich - O
Sustagen
Premium
Sustagen
Kid
Positioning vs. Brand Matrix
Competitive Positioning Map
(Brand Matrix)
Milo Ovaltine Sustagen Chocquick Rich-O
Rich chocolatey taste
Has calcium
Easy on the pocket
Best for kids
Nutritious
Reputable endorsers
Strong advertisements
Supports sports events
Supports humanitarian
causes
Encourages active &
competitive lifestyle
4. Milo is strongly positioned
in a niche market
Milo is the only chocolate drink product that
- actively supports sports events
- encourages an active and competitive
lifestyle
- promotes excellence, competition,
camaraderie and social awareness to the
youth

Others merely focus on providing nutritional
chocolate drink to the youth.
5a. According to research, the
powdered chocolate drink market is
about P6 Billion
Source: http://www.ats.agr.gc.ca/ase/4669-eng.htm
5c. Consumer data indicates
a size of P 11 billion
Powder chocolate drink consumption
1. As of 2009, estimated population is
92,226,600 --- 35.2% are 0-14 yrs old
2. Assuming 1/4 of them will drink 1 glass a
day (20g/day w/c costs P4.3875)
3. (92,226,600/4) x 35.2% x 4.3875 =35
Billion
5. Concluded that powdered
chocolate drink market is billion
1. Competitor data= P 6 B

2. Company data = Data not available

3. Usage data = P 35 B
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The Marketing Mix Strategy
Part 2:
Steps 6 to 10
6a. Product Shots of Powdered
Chocolate Milk Products
Milo
Milos leading competitors
6b. Product Description
Milo is a powdered chocolate drink that
is made from malted barley combined
with other ingredients to provide a
source of energy for active bodies.
2 Variants Milo and Milo 3-in-1
Only comes in chocolate flavor
It is available in 6 sizes 20g, 26g,
200g, 300g, 600g, and 1,000g
7. Price Milo is 13%
premium price
Milo 20g (12pcs) P52.65 (~P4.39/pc)
Milo 26g P7.80
Milo 200g P43.30
Milo 300g P62.00
Milo 600g P121.00
Milo 1,000g P195.80

Milos price is almost at par with Ovaltines and
is about 28% higher than Chocquick and
11% higher than Rich-O.
8a. Promo
Online Advertising
Events
Promos
TVCs
8b. Competitor promo
8b. Competitor TVC
9. Milo is distributed
nationwide by Nestle

Supermarkets, sari-sari stores,
convenience outlets, drugstores,
market stalls
Nationwide
Pick-up by customers
Cash and credit transaction
10. Milo is a niche leader
Milos strategy is to capture and dominate the
niche market of 3-13 yrs old future
champions.
It benefits from the huge distribution leverage
of Nestle.
Has an excellent, premium priced, excellent
product distributed nationwide.
Has an active and excellent campaign towards
sports that entices the youth.
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SUMMARY
5 Steps for Part 1
(PTM and Positioning)
1. MILO PTM are future champions
2. Who want to be the best that they can
be.
3. Can choose Ovaltine, Chocquick, etc.
4. Gap is all other brands focusing on
providing kids a healthy chocolate drink
5. The market size is P 6 Billion. MILO
niche is P5.04 Billion (84%).
5 Steps for Part 2
(Marketing Mix & Strategy)
6. MILO chocolate flavored drink
7. Is 13% premium
8. Uses TV, radio, prints,
internet/social networks and
events
9. Is distributed nationwide
10. Uses a NICHE approach to win
My Recommendation
Since Milo is has the biggest part of the
market share, it should continue its strong
marketing campaign.
They could expand their market by offering a
new flavor to cater its markets different
taste/preference.
They should continue taking advantage of the
events and social networking sites that help
them promote their product.
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10 STEP
Marketing Plan for MILO
Ma. Camille Villagarcia
5 Nov 2010