THE DEVELOPMENT AND EVALUATION OF THE NEW MARKETING PLAN

THE USE OF 7Ps TO ACHIEVE BUSINESS OBJECTIVES 2.1 7Ps marketing mix Product Nestle MILO Barley is a perfect Ovaltine is also a malted-chocolate combination of the unique aroma of drink..

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TABLE OF CONTENTS

1 INTRODUCTION 3

2 THE USE OF 7Ps TO ACHIEVE BUSINESS OBJECTIVES 3

2.1 7Ps marketing mix 3

2.2 How do companies achieve their overall business objectives 6

3 THE DEVELOPMENT AND EVALUATION OF THE NEW MARKETING PLAN 7

3.1 Company overview 7

3.2 The analysis of current marketing situation 7

3.3 New marketing objectives 8

3.4 STP 8

4 TACTICS AND ACTION 13

5 BUDGET AND PEOPLE ALLOCATION 14

6 EVALUATION 14

7 CONCLUSION 15

8 APPENDIX 15

9 REFERENCE 23

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1 INTRODUCTION

In the market mechanism of the integration period, company is no longer focus on their

products’ price if it’s cheap or expensive but more emphasis on the value brought to their customers such as nutritional value, brands’ value reputation to maintain This poses a huge requirement for businesses to build a brand development plan effectively Therefore,

companies which provide nutritious foods like Ovaltine was found In Vietnam, the trend is growing and awareness of nutrition has become an attractive market for not only the Ovaltinecompany but also many other companies in the world such as Milo and their famous malted-chocolate drink which has been in the market since 1994 For that reason, we decided to choose Ovaltineas the subject of the report

2 THE USE OF 7Ps TO ACHIEVE BUSINESS OBJECTIVES

2.1 7Ps marketing mix

Product Nestle MILO Barley is a perfect Ovaltine is also a malted-chocolate

combination of the unique aroma of drink Compared to Milo, Ovaltinecocoa and the rich source of protein seems to have an advantage with 30%and nutrients from milk, whole wheat extracts of barley germ from Wives andbran and vitamins, and minerals a 180 ml volume for higher kcal than

Nestlé MILO contains Protomalt® - Ovaltine chocolate barley is made from

a superior nutritional extract from nutritious milkshakes and milk,whole wheat bran that provides processed in a specially formulatedlonger-lasting energy for learning, formula

playing sports and physical activity Barley Ovaltine chocolate taste is(Nestle Milo, 2017) delicious with moderate sweetness,

❖ Characteristics: helping to supplement energy suitable

- Provide nutritional products for for children to start a new day full of

- Encourage consumption of whole compact, convenient especially formeal and bran foods children to bring with them when going

- Promote healthy eating and to school or picnic

lifestyle, including healthy physical ❖ Characteristics:

- A drink for breakfast full of nutrients

Price To talk about Milo's products, Milo is The price of Ovaltine is quite similar to

divided into many different Milo Ovaltine is divided into some kinds:categories:

- Milo cans: 15.000VND/can - Ovaltine powered milk 285g:

- Milo malted-chocolate drink 285g: 40.400VND

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43.900VND - Ovaltine 180ml: 25.000VND

- Milo 180ml: 26.200VND - Ovaltine 110ml: 16.600VND

- Milo 110ml: 17.500VND (sosanhgia,2018)(sosanhgia,2018)

About the price strategy of the Ovaltine and Milo quite similar Both lines areaimed at parents of children aged 6-14, with low to high income Therefore, theprice of milk products is relatively suitable for the average monthly income ofVietnamese families (per capita GDP is $ 2,200 per year according to 2016statistics)

Place Milo dairy products are widely Ovaltine milk products are not sold as

distributed throughout the country, widely as Milo Only a handful offrom big cities like Ho Chi Minh City, supermarkets and grocery stores areHanoi, Da Nang to the countryside selling this product

To talk about the distribution The distribution channel of Ovaltine ischannel, Milo belongs to an indirect also indirect For the Ovaltine, from thedistribution channel The first manufacturer, the Ovaltine line ofmanufactured goods will be products is taken to the big supermarketdistributed through two and will reach the customer Forintermediaries: wholesalers and example, only the big supermarket willretailers, and then to the consumers have this product such as Vinmart orFor example, Vinmart, Fivimart, Fivimart are selling Ovaltine products.Coopmart, Q.Mart and so on

With the development of Industrial Revolution 4.0, Milo’s and Ovaltine's

products are being sold via e- commerce websites like Tiki, Lazada, Shopee,Adayroi, and so on This type of shopping is more convenient so the

customers can easily to buy their products and they don't have to go outsidePromotion Milo advertises primarily on the Ovaltine is mainly advertised on

internet through news, video In Facebook to attract customers ThanksMarch of 2014, they released Milo to this popular media, customers can

Vietnam's Facebook In August evaluate the quality of their food with the

2013, the website of Milo Vietnam naked eyes; keep up to date on the

was put into operation Milo Vietnam latest food news, prices and feedbackalso advertises extracurricular between companies Barley milk

activities such as banners, production in Vietnam Until recently, thebillboards, leaflets, posters to attract Ovaltine product appeared more on the

❖ Promotion: attract the attention of customers

Buy Milo change bag: This is ❖ Promotion:

one of the brilliant ways to Ovaltine Vietnam always has aattract customers Milo small toy when you buy milk andVietnam They hit the user's this is one of the factors thatpsyche to offer a promotion attract the babies to increasethat customers have to buy sales for Ovaltine (Ovaltinetheir products (Nestle Milo, Facebook)

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2017) In addition, Ovaltine has not

❖ PR: Milo also organizes been involved in many healthmany health-focused protection campaigns such asactivities to promote their Milo so that access to Ovaltine

limited

People Every Nestlé manager is asked to Ovaltine is a subsidiary of

motivate and motivate employees, FrieslandCampina Vietnam in the top 20always looking for ways to improve workplaces and the top 10 FMCGtheir way of doing things, creating companies

changeable atmosphere, promoting The office in FrieslandCampina is

They are experienced in the with open, modern design, encouraginginternational environment, teamwork The office design is friendlyrespecting the cultures of the world, with diversified and flexible workspace,taking long-term strategic full and modern equipment

approaches rather than short-term Nguyen Dinh My continued to share the

With the size of a global corporation, environment is the most importantNestlé gives employees the catalyst for advancement in theopportunity to grow their talent to the workplace It will give you themaximum, thanks to a network of opportunity to learn more and add 'fire'operations without borders to improve your knowledge andNestle offers its employees a influence, "and that is why we chose todynamic salary and wages system work with FCV

that competes with the market in all Besides, during the apprenticeshipaspects, including salaries, short period, applicants will have a paidand/or long-term bonuses, additional apprenticeship, some necessarybenefits for wages or benefits allowances such as gasoline, lunch andsociety (Nestle Vietnam) basic welfare (accident insurance)

Process Nestlé's distribution center is located Ovaltine is produced on the modern line,

in Bac Ninh province, which is very strict inspection of food safety andconvenient for distributing products hygiene is one of the leading products infrom the factory to the northern the cocoa beverage sector, barley Withprovinces Nestlé's products are a 180ml paper box design, addingmanufactured and packaged with Ovaltine DHA + in addition to the dailymodern technology by strict quality diet improves nutrition and energy, helpsmanagement procedures of the develop both physically and

Group to ensure quality products intellectually, is ready to explore, learn,meet Swiss standards promote creativity in all learningWhat makes the factory different is activities, play (Product self-declaration)that the production is done below

and the food engineers can monitorthe entire process through thetransparent glass system above

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(Nestle Vietnam, 2017)Physical Packaging for the product is also Packaging for Ovaltine products is alsoevidence emphasized in the design phase so carefully prepared and the box is a

that it is easy to shop and match the purse and is packed in transparentcharacteristics of the product plastic bags to ensure that

Canned milk products will be packed transportation will limit damage to the

in a four-casserole bag wrapped in box For customers wishing to buy more,transparent plastic wrappers, Milo they will be placed in sturdy cisterns topaper milk cartons are designed so ensure that the movement does not

as not to damage the mousse during occur

transport if purchased largerquantities will be is packed in arectangular box containing 12blisters For powdered milkproducts, it will be packed intorectangular boxes that are easilydigested in the environment and donot pollute the environment likeanother plastic packaging Cans ofMilo milk cans are made of tin andare retail for every can in

convenience stores

2.2 How do companies achieve their overall business objectives

Milo

By using the color green with brown letters,

Milo has created a unique image for itself in

the mind of Vietnamese people Everytime

they see the color of green cans, usually

Vietnamese consumers will relate to Milo

brand with the traditional green color

Nestle have brought out many types under

the brand Milo such as powdered milk, iron

and paper can milk, and the most recent

product is Milo Cub created a fever in the

consumers’ market

Nestle puts a reasonable price tag that is

not too different from the other products in

the same field of work

Ovaltine

Ovaltine uses red packaging and blue letters for its nutritional products to make it easy for consumers to recognize This helps the user

to think of a reddish-colored drink that will be Ovaltine

Ovaltine launches 2 products that available

in a variety of product capacities This helpscustomers enjoy more flexibility It also helps Ovaltine compete with other vendors

in the marketThe price of Ovaltine is cheaper than most other nutritional drinks, which affectconsumers’ choice for nutritional drinks

With promotion, Netsle has brought Ovaltine uses advertising such as TV ads,

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nutrition products which resulted in the

90% market share of Milo in Vietnam

market (Thang Nguyen, 2018)

posters, and gift-giving events when customers purchase a certain amount of Ovaltine This helps increase the interaction between customers and products as well as increase brand reputation throughout Vietnam

3 THE DEVELOPMENT AND EVALUATION OF THE NEW MARKETING PLAN

3.1 Company overview

Ovaltine is a product of FrieslandCampinaVietnam (FV), a joint center company

established in Vietnam in 1995 Known as Dutch Lady from 2002 and changed in to

FrieslandCampina Vietnam in 2009

Development process of FrieslandCampina Vietnam

FV’s mission is “To improve the lives of the people in Vietnam “

FV wants their spirit of “responsible living” to be spread and becomes a business’s culture,

an annual activity and a strong commitment for the belief of all businesses, partners,communities and society

3.2 The analysis of current marketing situation

SWOT analysis is used for a comprehensive view at the current marketing situation of Ovaltine

Strength

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Ovaltine is innovative in their strategy and product They also have good positions for their factories, convenience for distributing products Finally they also have a good range of full-time staff.

Threat

Many competitors both in the beer industry and milk industry from both foreign and

domestic and the tax for beer rose to 65% in 01/01/2018 (TuQuyen, 2017)

3.3 New marketing objectives

For the new marketing plan, 2 new objectives are developed:

1 Create the image for Ovalbeer

- Upload video to run ads on popular platforms such as Youtube, Facebook, Instagram, etc

- Organize promotion events and make use of special events like Tet Holiday

- Organize trials for people around office areas like VTC building on Tam Trinh street as the building has 20 storages of offices and 1 storage for game center, on Le Van Luong

street where there are a lot of offices and families can also open small trials

street vendors

- Provide instinctive for the product

2 Start bringing back revenue after 1 year

- Distribute the products in as many stores as possible in order for it to become a FMCG

- Open stores for Ovalbeer products with lower price to promote the brand

- Create website to order Ovalbeer

To deal with sleeping difficulty and appetite control: Having a great source of Vitamin B, the product can help adults and kids who have sleeping difficulty due to stress with its large amount of Vitamin B and for small children, the drink helps them to have a better appetite especially for children who have Anorexia nervosa.

With the new product, another benefit is added to the behavior segment:

To enhance the digestion: Nowadays, in many big cities, not only kids but many young adults are also suffering from Dyspepsia due to the great amount

of pressure each individual has to deal with and with that amount of stress passing from times to times (Xuân, 2017) With Ovalbeer, users will feel better and have a more enjoyable meal than before

For the previous line of products (Nutritious Ovaltine-Malted chocolate flavor

beverage), buyers are Mom who wants their small children (age 3 and above) to have enough nutrition for their growth and for teenager (age 13 and above) who want

to have everyday power and nutrition

For Ovalbeer, the information is listed at the Tactics and action.

Psychographics

Parents who are worried about their children health

Ovaltine is quite affordable and can provide healthy nutrition with just a small amount: 110ml pack with a recommend use of 3 packs per day and 180ml pack with 2 packs per day Moreover, Ovaltine Vietnam has 2 packet products: Nutritious Ovaltine-

Malted chocolate flavor drink with new ingredient for teenagers and above, the other one is Nutritious Ovaltine-Malted chocolate flavor drink with DHA+ for small children that aimed at parents (especially mother) who look after their children

People who have a busy life

Ovalbeer and Ovaltine is the optimal choice for people who have to do a lot of study, people who have to spend most of their time working or for busy mums who have to look after their small children and want to refresh themselves after a hard working day

People who into chocolate flavor drinks

Ovaltine is a combination of rich and smooth Swiss chocolate with malt extract

that guarantee a delicious and nutritious drink for chocolate-lovers

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For the new product, the chocolate flavor segment is replaced with three

new psychographic segments:

People who either into drinking beers or want to give it up

Ovalbeer is a fermentation beverage that retains the unique flavor of beer and has a low level of alcohol (0.2 %) will satisfy any picky beer lovers

People who want to improve their appearance

Having many type B vitamins like: B1, B12 and B6 plus mineral like iron zinc and calcium, it benefits consumer with a healthy and good looking skin, thus, offering a nice body shape

People who are concerned with their health

Ovalbeer is a fermentation beverage that has natural enzyme, Amino-acetic acid and other B type vitamins in which could enhance the digestive system of many who have

to suffer from anorexia

Ovaltine has 2 groups of customers: kids and teenager who need nutrition and enjoy

malted drink with chocolate flavor However, as mentioned in the Opportunity factor of previous SWOT analysis about Vietnamese people are getting older, therefore, there are

2 new groups for the latest product: adults and middle aged adults who either are

alcoholic or are under pressure of working and studying

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