DA NANG UNIVERSITY OF ECONOMICS

FACULTY OF STATISTICS AND INFORMATICS

PRINCIPLES OF MARKETING REPORT

“RESEARCH MARKETING STRATEGIES FOR NESTLÉ
MILO PRODUCTS”

Number Member name Mission Note

1 Hoang Phuong Trang IV, complete the report Leader
2 Duong Cat Tuong III
3 Huynh Gia Han I, II
4 Nguyen Thanh Hai VI,VII
5 Ngo Hoang Khang Ninh V
6 Ngo Van Viet Nhan V
Lecturer: Chu My Giang
Class: 51K36_P
Group: 1
I. Introducing the topic
1. Reason for choosing the topic
2. Goal
3. Object & Scope of research
II. Overview of Vietnam's dairy market
1. Scale and growth rate
2. Structure of the dairy industry
3. Characteristics of Vietnamese consumers
4. Competition in the industry
5. Outstanding development trend
6. Market challenges
7. Opportunity for Nestlé Milo
III. Overview of Nestlé business
1. Company Introduction
2. History and Development
3. Vision and Mission
4. Main Products
5. Main Customer Segments
6. Activities – outstanding achievements
IV. Introducing Milo milk products
1. General introduction
1.1. Detail
1.2. Design and color
1.3. Ingredient
1.4. Product line currently available in Vietnam
1.5. How to use
1.6. Outstanding features of the product
1.7. The role of Milo milk in the market
2. Target customers
2.1. Milo's target customers in Vietnam
2.2. Consumer behavior of customers
V. Environmental analysis
1. Macro environment:
1.1. Analyze the environmental impacts on the entire dairy industry
1.1.1. Demography
1.1.2. Economic
1.1.3. Natural
1.1.4. Technological
1.1.5. Politics
1.1.6. Cultural
1.2. Create 2 tables listing opportunities and challenges
2. Micro environment
2.1. Analyze the strengths and weaknesses of the factors, and the impact of those
factors on the Nestlé Milo dairy company
2.1.1. The company
2.1.2. Suppliers
2.1.3. Marketing intermediaries
2.1.4. Competitors
2.1.5. Publics (7 types of publics)
2.1.6. Customers
3. Swot
VI. Identifying Marketing Strategy
1. Target customers
2. Positioning
3. Pricing strategy (each product line has its own price)
4. Distribution strategy
5. Promotion strategy
VII. Identifying Marketing-Mix Program (4Ps)
* Conclusion
I. Introducing the topic
1. Reason for choosing the topic
In recent years, along with the steady growth of Vietnam’s economy, consumer
awareness of health and nutrition has significantly increased. According to the VIRAC (
2023) , the dairy and nutritional beverage industry has become one of the fastest-
growing and most stable sectors within the country’s fast-moving consumer goods
market. The strong and stable growth of the dairy and nutritional beverage market
indicates a promising environment for both local and international brands. This steady
expansion creates favorable conditions for Nestlé MILO to consolidate its market
position and explore new product opportunities in Vietnam.
In that context, Nestlé MILO - a brand belonging to the global Nestlé group - has
built a solid image in Vietnam. With the message "Energy for big journeys", MILO is
not only known as a nutritional drink for children but also has become a symbol
associated with school sports and an active lifestyle. Through community programs
such as "Active Vietnam", "MILO Sports Festival" or "Student Basketball Tournament",
the brand has contributed to encouraging exercise habits, while spreading the message
of comprehensive physical and mental development to the young generation. This
consistent brand communication through sports and education programs has
strengthened MILO’s image as a health-oriented and socially responsible brand. Such a
strategy helps build emotional attachment and long-term brand loyalty among young
consumers and parents.
However, the nutritional beverage market also presents new challenges. Increasing
competition from domestic and international brands such as Vinamilk, TH True Milk,
and Nutifood, along with shifting consumer preferences toward “low-sugar and healthy”
products, has pushed Nestlé MILO to continuously innovate its formula, packaging, and
marketing strategies. According to IMARC Group (2024), the Vietnamese dairy
industry is rapidly evolving with higher demands for quality, transparency, and
sustainable development. The growing competition and health-conscious trend require
Nestlé MILO to focus on product innovation, sustainability, and digital transformation
to retain its market leadership.
Therefore, selecting the topic “An Analysis of the Nestlé MILO Brand in Vietnam” is
necessary to examine how the brand maintains its competitiveness, adapts to emerging
consumer trends, and ensures sustainable growth in Vietnam’s dynamic nutritional
beverage market.
2. Goal
The goal of the project "Analysis of Nestlé Milo" is to comprehensively study the
business operations and development strategy of the Milo brand in the context of fierce
competition and strong fluctuations in the Vietnamese dairy market. First of all, the
topic aims to analyze the scale, growth rate and consumption characteristics of the
Vietnamese dairy market, thereby clearly identifying Nestlé Milo's position in the
industry.

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3. Object & Scope of research
The scope of the topic is limited to analyzing Nestlé Vietnam's Milo milk product
strategy and the environmental factors affecting this strategy. In terms of geographical
scope, the research is limited to the Vietnamese dairy market, with a primary focus on
major urban centers such as Ho Chi Minh City and Hanoi, where Milo maintains the
strongest brand presence and market share.
Regarding the time scope, the study is based on data from 2023 to 2025, reflecting
the most recent developments in Nestlé Milo’s business operations and marketing
strategy in Vietnam, while also identifying future growth directions and strategic
adjustments in response to evolving consumer preferences and market challenges.
Focusing on recent years and key cities ensures the research reflects current market
dynamics and real consumer behavior, allowing for a more accurate evaluation of
MILO’s strategic direction.
II. Overview of Vietnam's dairy market
1. Scale and growth rate
According to the Vietnam Dairy Association (VDA, 2024), Vietnam’s dairy industry
reached a total market value of VND 125,800 billion in 2024, marking a 0.5 percent
increase from 2023 despite global raw milk price fluctuations. From 2020 to 2024, the
sector maintained an average annual growth rate of 8–9%, indicating solid and
consistent consumer demand.
Meanwhile, the General Statistics Office (2024) reported that milk consumption per
capita was 28 liters/year, lower than the regional average of 35–40 liters in Southeast
Asia. With an urban population of 45 percent and an average income of USD 4,500 per
capita, domestic purchasing power continues to rise (MOIT, 2024).
Overall, these indicators demonstrate that Vietnam’s dairy industry is on a stable and
sustainable growth [Link] short-term fluctuations in input costs, the market’s
resilience reflects a maturing domestic demand base and increasing consumer awareness
of nutrition. The current consumption gap compared to neighboring countries highlights
substantial room for expansion, especially in urban areas where income and health
consciousness are improving. Over the next decade, as projected by VDA, the market’s
value may reach VND 200,000 billion by 2030, driven by population growth, modern
retail development, and export opportunities to nearby ASEAN markets. This indicates
that dairy consumption is gradually becoming an essential component of Vietnam’s
evolving dietary culture.
2. Structure of the dairy industry
Vietnam’s dairy market is divided into liquid milk (45 percent), powdered milk (35
percent ), and other categories such as condensed milk, yogurt, and cheese. The liquid
milk segment shows the fastest growth due to consumers’ increasing preference for
convenience and domestic products (Vinamilk, Annual Report 2024).
However, domestic production currently satisfies only 40 percent of fresh milk
demand, while 60 percent is imported from New Zealand, Australia, and the EU. The

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dairy herd expands modestly at 0.4 percent per year, but milk yield rises by 3 to 3.5
percent annually (Cafef, 2024). To reduce dependence on imports, leading producers
such as Vinamilk, TH True Milk, and Moc Chau Milk are investing in high-tech
farms, targeting 60 percent self-sufficiency by 2030.
From these figures, it can be concluded that Vietnam’s dairy industry is undergoing
structural [Link] market is shifting from an import-dependent model to one
that prioritizes domestic raw milk production and technological modernization. This
transition not only enhances supply chain stability but also strengthens national food
security. In the long term, increased local sourcing will allow producers to better control
quality, reduce production costs, and compete with foreign imports. Furthermore,
investment in high-tech farming reflects a strategic movement toward sustainability and
international competitiveness.
3. Characteristics of Vietnamese consumers
Vietnamese consumers’ milk consumption behavior varies by age group,
lifestyle, and income level:
 Children (1–12 years): Account for 45 percent of total dairy consumption (VDA,
2024). Parents prioritize fortified milk products rich in calcium and DHA from
trusted brands like Vinamilk, TH True Milk, and Nestlé MILO.
 Teenagers (13–25 years): Prefer energy and sports-oriented milk products,
including chocolate malt beverages and low-fat milk. Nestlé MILO dominates this
segment with campaigns like “School Sports Energy” and sponsorship of Vietnam’s
Olympic Team 2024 (Báo Mới, 2024).
 Adults (26–45 years): Shift toward low-sugar, plant-based, or functional milk due
to concerns over fitness and health. According to Nielsen Vietnam (2024), 67
percent of consumers in this age group are willing to pay more for natural or
health-enhancing milk
 Seniors (45+ years): Represent about 13 percent of the population, focusing on
low-fat, high-calcium milk for bone and heart health, such as Vinamilk Sure
Prevent, Anlene, Nutifood Gold.
Urban consumers increasingly choose UHT milk and yogurt, while rural consumers
remain loyal to condensed milk and powdered milk due to affordability. However, rural
demand is growing at 7 to 8 percent annually (MOIT, 2024).
These insights reveal that Vietnamese milk consumption is evolving from basic
nutrition toward lifestyle-driven preferences. Health awareness, age-specific needs, and
modern living habits now shape purchasing behavior more strongly than price alone.
The rapid adoption of functional and plant-based milk suggests a cultural shift toward
wellness-oriented consumption. For dairy companies, this means marketing strategies
must diversify to target distinct demographic segments—focusing on nutritional
education for children, lifestyle branding for youth, and health-oriented benefits for
adults and seniors
4. Competition in the industry

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 The market remains highly concentrated. Vinamilk holds about 50 percent market
share, with 2023 revenue exceeding VND 60.3 trillion (Thị trường Tài chính & Tiền tệ,
2024). TH True Milk maintains 15 percent , emphasizing clean milk and eco-farming.
Nutifood accounts for 10 percent , focusing on specialized nutrition.
Foreign players — Nestlé, Abbott, FrieslandCampina (Dutch Lady) — dominate
powdered milk and children’s nutrition. Competition has shifted from price-based to
value-based, where brand reputation, trust, and social responsibility define success.
This competitive landscape indicates that Vietnam’s dairy market has reached a
stage of maturity and brand differentiation. Local firms like Vinamilk have built strong
trust through nationwide distribution and consistent quality, while foreign brands sustain
dominance in premium and specialized segments. The shift toward value-based
competition means future growth will depend more on innovation, transparency, and
sustainable branding rather than price cuts. Companies that combine product quality
with ethical production and digital engagement will likely capture greater consumer
loyalty.
5. Outstanding development trend
Vietnam's dairy industry is moving towards more sustainable and innovative
development. Enterprises invest in circular farming, green energy and reduce emissions
to protect the environment. In addition, the trend of consuming low-sugar milk, plant
milk and organic milk has increased sharply, especially among young people with a
healthy lifestyle. In addition, companies promote digitalization such as traceability with
QR codes and e-commerce sales to expand consumer access.
From these trends, it can be inferred that sustainability and digital transformation
are becoming strategic imperatives for Vietnam’s dairy industry. The sector is no
longer competing merely on production volume but on how responsibly and efficiently
it operates. Green initiatives improve public trust and brand image, while digital
solutions streamline distribution and customer engagement. Collectively, these factors
will define the next phase of competitiveness in Vietnam’s dairy market, positioning
forward-thinking companies as industry leaders.
6. Market challenges
The dairy industry currently faces three main challenges:
• Depends on 60 percent of imported raw materials, making milk prices volatile.
• Production costs are high and domestic livestock farming is not large enough.
• Consumer confidence is affected by fake milk and false advertising.
However, the opportunity is still huge thanks to the rapidly growing middle class,
higher income, and policies to support the development of domestic raw material areas.
In addition, the export potential to the ASEAN market and the demand for nutritional
milk - functional milk are opening up new growth directions. Taken together, these
factors highlight a dual reality: structural limitations coexist with enormous growth
potential. Overcoming input dependency will require investment in local dairy farming,
technological upgrading, and quality control. Yet, the demand side is robust—driven by

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health consciousness and regional trade potential. For Vietnam, strengthening its raw
milk supply chain and enforcing stricter product regulations could transform these
challenges into long-term competitive advantages.
7. Opportunity for Nestlé Milo
Nestlé MILO holds a strong position in the energy and nutrition milk segment for
children and teenagers. The brand has built a solid image through community
initiatives such as the “Active School Energy” program and sponsorship of the
Vietnam Sports Delegation at the Paris 2024 Olympics, linking MILO with
sportsmanship and youth development.
In the coming years, Nestlé MILO can capitalize on several growth opportunities:
 Product Innovation – launching low-sugar or plant-based variants aligned with
healthier consumption trends.
 Digital Expansion – enhancing online sales platforms and personalized marketing
to reach young consumers and parents effectively.
 Community Engagement – partnering with schools, sports clubs, and nutrition
programs to reinforce its image as a brand promoting health and education.
Overall, these opportunities position Nestlé MILO not only as a market leader but
also as a social contributor in Vietnam’s dairy landscape. By combining health-focused
innovation, digital transformation, and community programs, MILO can continue
expanding its market share while fostering long-term brand loyalty. Moreover, its
strategy aligns well with Vietnam’s broader industry goals of promoting sustainability,
education, and well-being.
III. Overview of Nestlé business
1. Introducing the business
Nestlé S.A., also known as Société des Produits Nestlé S.A., is a multinational food
and beverage corporation headquartered in Vevey, Switzerland. Nestlé's products range
from mineral water, infant nutrition, coffee, to dairy products. Founded in 1866, Nestlé
has grown to become the world’s largest food and beverage company. According to the
2017 Forbes Global 2000 list, Nestlé ranks as the largest corporation in its industry. The
company owns over 2,000 brands — from globally recognized names to locally loved
favorites — and operates in 191 countries around the world.
Nestlé Vietnam is a wholly foreign-owned enterprise, operating under the global
Nestlé S.A. Group. Nestlé first established a commercial office in Saigon in 1912.
However, Nestlé Vietnam Co., Ltd. was officially founded in 1995, marked by the
groundbreaking of its first factory in Bien Hoa II Industrial Zone, Dong Nai
[Link] of today, Nestlé Vietnam operates six factories nationwide and employs
over 2,300 staff across the country. The company specializes in producing and
distributing nutritional products, food, and beverages that are well-known among
Vietnamese consumers, such as Milo, Nescafé, and Maggi.
 Meaning of the logo:

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 In 1868, the Nestlé logo was inspired by the family crest of its founder — featuring
a bird sitting in a nest. The founder’s family name, Nestlé, means “little nest” in
German. The image of birds in a nest being fed by the mother bird symbolizes care and
nourishment, aligning with the company’s original product: “farine lactée” (milk-based
infant cereal). The word “Nestlé” was incorporated into the logo to create a unified
corporate brand identity. It became a strategic trademark of the Nestlé Group. Each of
its four core product categories — dairy, ice cream, confectionery, and infant formula —
was branded with a specific “Nestlé” label, thereby establishing a consistent and
distinctive brand identity across all Nestlé products.
2. History and Development
Nestlé was founded in 1866 by Mr. Henri Nestlé, a Swiss pharmacist of German
origin. He invented a special type of powdered milk for infants who could not be
breastfed, aiming to reduce infant mortality caused by [Link] product was
called “Farine Lactée Henri Nestlé.”
The first major success of Henri Nestlé came when his product saved the life of a
premature baby who could not digest breast milk or any other substitute. Thanks to this
achievement, Farine Lactée quickly gained popularity across Europe, marking the
beginning of Nestlé’s success story. With its headquarters in Vevey, Switzerland, Nestlé
has grown to become the world’s leading company in nutrition, health, and wellness.
Today, Nestlé employs around 283,000 people, operates about 500 factories, and has
business operations across the globe.
 Nestlé Vietnam Co., Ltd.
Nestlé Vietnam is a wholly foreign-owned enterprise, operating under the global
Nestlé S.A. Group. Nestlé first established a commercial office in Saigon in 1912.
However, Nestlé Vietnam Co., Ltd. was officially founded in 1995, marked by the
groundbreaking of its first factory in Bien Hoa II Industrial Zone, Dong Nai
[Link] of today, Nestlé Vietnam operates six factories nationwide and employs
over 2,300 staff across the country. The company specializes in producing and

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distributing nutritional products, food, and beverages that are well-known among
Vietnamese consumers, such as Milo, Nescafé, and Maggi.
3. Vision – Mission
3.1. Vision
“To be a leading, competitive company that delivers nutrition, health, and value to
customers — and generates improved value for shareholders — by being the most
trusted company, the most preferred employer, the most reliable supplier, and the
provider of the most loved products.”
3.2. Mission
“To be the world’s leading nutrition, health, and wellness [Link] mission,
‘Good Food, Good Life’, is to offer consumers the tastiest and most nutritious choices
across a wide range of food and beverage categories and eating occasions — from
morning to night.”
4. Main Products
As a leading company in food and beverages, Nestlé's product portfolio spans a wide
range of categories — from coffee, bottled water, ice cream, and baby food to prepared
meals, nutritional health care, pet care, confectionery, and pharmaceuticals.

Nestlé’s major brands include: Nestlé, Perrier, Nestea, PowerBar, and Toll House.

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 Key products: KitKat, MOM&me milk, KOKOKRUNCH cereal, MILO, LaVie
mineral water, and more.
Among these, MILO stands out as one of the most popular products across many
countries worldwide — especially in Malaysia, where it accounts for 90 percent of the
powdered milk market, making Malaysia the largest consumer of MILO globally.
5. Main Customer Segments
5.1. Family Segment
• Children under 6 years old: Nestlé focuses on infant and toddler milk powder as
well as yogurt-based weaning products, providing comprehensive nutritional solutions
to support the healthy growth and development of young children.

Rice baby cereal

Powdered milk

• Families with children: Products such as fresh milk, yogurt, cereals, and
confectionery are designed to meet the nutritional needs of the entire family, promoting
balanced and healthy eating habits.

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• Housewives: As the main meal preparers in the household, housewives seek high-
quality and convenient seasonings. Nestlé offers a wide range of culinary products and
condiments that help save time while ensuring delicious and nutritious family meals.

Nestlé’s seasoning products

• Elderly consumers: Nestlé provides specialized products for seniors, enriched with
calcium and essential vitamins, to help maintain good health, strengthen bones, and
improve overall vitality.

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 Nestlé’s milk products for the elderly

5.2. Young Consumers

• Students :Nestlé provides products such as snacks, breakfast cereals, and convenient
beverages that supply essential nutrients and energy to help students stay active and
focused throughout the day.
• University students: For this group, Nestlé offers instant coffee and ready-to-drink
beverages that are quick, convenient, and energizing, supporting their busy lifestyles
and study routines.

• Working adults: Products like drinking yogurt, energy drinks, instant coffee, and
chocolate are designed to replenish energy and reduce stress, helping working people
stay alert and productive during long hours.
5.3. Health-Conscious Consumers
• Vegetarian and vegan consumers: Nestlé develops a range of plant-based and
vegetarian products, from whole-grain foods to ready-to-eat meals, meeting the needs of
customers who follow meat-free or vegan diets.
• Health-focused consumers: To serve people who seek healthier food options, Nestlé
prioritizes products that are low in sugar and fat, and fortified with protein, vitamins,
and minerals, supporting a balanced and nutritious lifestyle.
6. Activities - outstanding achievements

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  Nestlé vietnam leads the top 100 sustainable enterprises for three consecutive
years
Nestlé Vietnam was recognized as the leading company in the Top 100 Sustainable
Businesses of 2023 in the manufacturing sector. In addition, the company was also
ranked among the Top 5 pioneering enterprises in implementing a circular economy and
reducing carbon [Link] results were officially announced at the Sustainable
Companies in Vietnam 2023 award ceremony, organized by the Vietnam Chamber of
Commerce and Industry (VCCI) and the Vietnam Business Council for Sustainable
Development (VBCSD) on December 13, 2023, in [Link] marks the third
consecutive year that Nestlé Vietnam has been recognized as the most sustainable
manufacturing enterprise in the country.

Mr. Binu Jacob, General Director of Nestlé Vietnam, received the certificate recognizing the company as the most sustainable enterprise in Vietnam in

the manufacturing sector.

Nestlé ranked as the most sustainable food brand globally

According to the 2023 Annual Food & Beverage Report by Brand Finance — a
leading global brand valuation consultancy headquartered in London, UK — Nestlé
continues to be the most valuable food brand in the world, with a brand valuation of
USD 22.4 [Link]é also secured the #1 position for sustainability in the Brand
Finance Food 100 ranking. Notably, the sustainability perception value of Nestlé’s
brand was estimated at USD 1.35 billion, reflecting the company's strong global
reputation for sustainable practices.

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  Nestlé vietnam honored as “advertiser of the year”
At the MMA Smarties Vietnam 2024 awards, Nestlé Vietnam marked a significant
milestone by winning 12 outstanding awards across various categories related to mobile
marketing strategies and communications.
At the same event, Nestlé Vietnam was also honored with the prestigious “Advertiser
of the Year” award. These awards recognize Nestlé Vietnam’s innovative approaches in
marketing. The company has successfully leveraged AI technology and data analytics to
gain deeper insights into consumer behavior and personalize marketing campaigns,
creating creative and successful marketing strategies across digital platforms.

 Nescafé plan program in vietnam since 2011

This program has been implemented by Nestlé Vietnam in collaboration with the
Ministry of Agriculture and Rural Development (now the Ministry of Agriculture and
Environment) in the Central Highlands provinces. Thanks to participation in the
NESCAFÉ Plan, many farming households have become familiar with sustainable
coffee cultivation methods, improved productivity, and optimized costs, thereby
increasing income and enhancing their quality of life. To date, the NESCAFÉ Plan has

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connected with over 21,000 farming households practicing sustainable coffee
production under the 4C standards. The program has organized more than 467,000
training sessions and distributed over 86 million high-quality, disease-resistant seedlings
to support the replanting of old coffee farms.
The program also encourages intercropping with about 86 percent of farmers
planting at least three types of crops, achieving yields 15 percent higher than the
national average. Additionally, 60 percent of the farmland has shade trees, saving 40
percent to 60 percent of irrigation water by applying efficient and water-saving
irrigation techniques. By 2024, more than 86,000 hectares of old coffee plantations have
been renovated through the distribution of disease-resistant, high-yield seedlings.
Thanks to these practical contributions, Nestlé Vietnam has been continuously
recognized by government agencies and international organizations. The company has
repeatedly been voted as one of the best workplaces in Vietnam, ranked in the Top 10
sustainable enterprises, and is a founding member of the Packaging Recycling
Organization (PRO) Vietnam. Based on these achievements, it is clear that Nestlé not
only makes significant contributions to the economy but also serves as a role model for
responsible foreign-invested enterprises committed to long-term benefits for people and
the planet.

At the same time, 100 percent of Nestlé Vietnam’s ready-to-drink products have
switched to using FSC-certified paper straws, and nearly 90 percent of product
packaging is designed to be recyclable and reusable.
A representative from Nestlé Vietnam shared:"We believe that a business can only
develop sustainably when the community, people, and environment where it operates
also benefit. That is why Nestlé invests long-term in sustainable agricultural val-ue
chains and a circular economy." Moreover, Nestlé is a pioneer in implementing the
circular economy, reducing plastic waste, and protecting water resources. The company
aims for 100% of its product packaging to be recyclable or reusable. All of Nestlé

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Vietnam’s factories have achieved the goal of zero waste emissions into the
environment and optimize the use of renewable energy.
The company also actively participates in community health promotion activities,
such as the “School Nutrition” program for primary school students, the “Life Values”
initiative for youth, and communication campaigns on balanced nutrition and increased
physical activity.

100% of Nestlé Vietnam’s ready-to-drink products have switched to using paper straws.

6. Development orientation
Nestlé’s development orientation combines sustainable business growth, product
innovation, and social and environmental responsibility. Nestlé aims to develop a
regenerative food system, protect and restore natural resources, foster prosperous
communities, and operate [Link] Vietnam, Nestlé focuses on strengthening
green agricultural production capacity, improving farmers’ livelihoods, and meeting the
growing demands of the food and beverage market.
Development Orientation in the Vietnamese Market
 Investment in Green Agriculture: Through programs like the NESCAFÉ Plan,
Nestlé supports farmers to enhance production capabilities, improve livelihoods,
and promote sustainable agriculture.
 Research and Product Development: Studying consumer behavior and preferences
to collaborate with F&B businesses in creating new products and experiences that
meet market demands.
 Multi-Stakeholder Collaboration: Strengthening cooperation with the government
and farmers to jointly develop agricultural economies and bring Vietnamese
agricultural products to the global stage.
 Market Trend Response: Capturing new culinary trends, such as products using
Matcha ingredients, to develop suitable products.

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IV. Introducing Nestlé Milo milk products

1. General introduction
1.1. Detail
Milo is a chocolate-flavored malt powder product manufactured by Nestlé. It was
originally developed in Australia by Thomas Mayne in 1934. This product is often
mixed with milk, hot water or both to create a beverage. In 1994, Milo first appeared on
the Vietnamese market with its first product, Milo powdered milk. After 4 years of
operation, Nestlé officially inaugurated the MILO powder factory in Dong Nai to meet
the growing needs and tastes of Vietnamese consumers. In 2003, Milo sponsored and
organized Phu Dong health festivals in Vietnam. In 2005, Milo officially launched
improved powdered milk products with a superior 3-in-1 formula. In 2006, Milo
launched the first liquid milk product in the Vietnamese market and the factory was
located in Dong Nai. Up to now, Milo has continuously actively added minerals to old
products and also launched many new products. In addition, many more Milo milk
factories have been built to meet the growing needs of consumers. The logo of the Milo
brand is mainly green and the word Milo is brown, symbolizing barley. Maintaining the
vision of developing health and helping children reach their full potential, Milo has

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continuously improved its products in both design and quality over time, meeting the
needs of consumers both domestically and internationally.
1.2. Design and color

Nestlé Milo's design and colors are built consistently to clearly express a dynamic
and healthy brand identity. Green is the main color in all of Nestlé Milo's packaging and
promotional campaigns. Green symbolizes vitality, energy, freshness and
sportsmanship, helping consumers easily recognize the brand. In addition, the brown
color of cocoa and the white color of milk are also delicately combined, expressing the
harmony between delicious flavor and nutritional value. Milo's packaging is designed to
be modern, dynamic and easily recognizable, with the white "MILO" logo with a yellow
border in a characteristic curved frame, showing movement. The product body is often
printed with images of athletes or children playing sports such as football, basketball,
jogging... to convey the message "Enduring energy - Supporting movement". In
addition, each product (milk carton, can, powder package, bottle, breakfast cereal, etc.)
has its own design variation, but still maintains the main blue tone and sporty image,
helping consumers easily associate with the dynamic spirit that Milo aims for. The
design and color of Nestlé Milo not only create a strong identity, but also demonstrate
the core values of the brand: encouraging children to exercise, train physically and
develop comprehensively. Thanks to that, Milo has become a symbol associated with
childhood, school and school sports in Vietnam.
1.3. Ingredient
PROTOMALT® 32 percent (extract from malt barley), sugar, skimmed milk powder
18 percent (skimmed milk powder), cocoa,
vegetable oil, whey powder (from milk),
minerals (dicalcium phosphate, disodium
phosphate, iron pyrophosphate), vitamins
(C, B3, B6, B2, D, B12), iodized salt.

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Example: Milo milk box 180ml is a barley drink with a unique combination of cocoa
and natural nutrients, rich in protein and nutrients from milk, pure barley germ vitamins,
minerals. Milo milk is twice as nutritious as Activ-Go, thanks to Protomalt, refined from
protein, fat, carbohydrate group, iron and vitamins B1, B2, B3, B6, B12 and vitamin C
and other ingredients. Barley grains.

1.4. Product lines currently available in Vietnam

Currently, Nestlé Milo has many different product lines, the most popular of which is
UHT liquid milk (ready-to-use cartons) with capacities of 115ml, 180ml, 200ml and
240ml, suitable for school-age students. In addition to traditional products, Milo also
launched the Milo Less Sugar version and Milo Nutri-Up - a nutritionally enhanced
milkshake for people who are physically active or teenagers who need to replenish
energy quickly. In addition, Milo barley powder drink is a traditional product line loved
by many Vietnamese families, often mixed with milk or hot water for breakfast or
before exercise. The product has many different packaging specifications such as 200g,
400g, 1kg, with the Activ-Go formula - a combination of barley, milk and vitamins and
minerals to help provide lasting energy throughout the day. Not only stopping at dairy
products, Nestlé has also expanded into the Milo breakfast cereal and Milo Bar
segment, providing convenient options for busy consumers, especially students who
need a quick breakfast but still have enough energy. In addition, the Milo cans and
ready-to-drink bottles (RTD - Ready to Drink) such as Milo 240ml can, Milo 300ml
PET bottle or Nutri-Up 240ml bottle are also popular among young people thanks to
their convenience, suitable for modern dynamic lifestyles. In recent years, Nestlé has
continuously innovated to keep up with healthy consumption trends, launching products
such as Milo Pro (enhanced protein and vitamins) and Milo Plant-Based (plant version,
for vegetarians or those who limit animal milk). All Milo products have a distinctive
brand identity with a prominent green color, images of children and athletes, clearly
expressing the message "Enduring energy - fueling movement".

Thanks to a diverse product portfolio, delicious flavors and a brand image associated
with the spirit of sports, Nestlé Milo has affirmed its solid position in the dairy and
nutritional beverage industry in Vietnam, becoming a familiar choice for millions of
Vietnamese families.
Product Name Capacity Image

17
Milo Traditional Milk Box 110 ml/ 180 ml

Milo A2 Mat Milk 110 ml/ 180 ml

Milo Less Sugar 110 ml/180 ml

Milo Powder 285 gram/ 400

gram/ 1kg

Milo breakfast cereal 300 gram/ 150

gram/ 15 gram

Milo Ready-to-drink 240 ml/ 210ml

Cans/Bottles

18
 Milo Cereal Cakes 23,5 gram

Milo Chocolate Bars 30 gram

1.5. How to use

Milo milk should be used daily, especially in the morning when children enter school
age, because it contains Activ-GO Vuon Xa compound, researched and developed by
Nestlé Switzerland, providing a long-lasting source of energy for children's learning and
movement activities.
1.6. Outstanding features of the product
MILO milk is a perfect combination of unique cocoa flavor with abundant protein
source and nutrients from milk, energy from barley sprouts, enhanced with the exclusive
Activ-Go formula from Switzerland with 7 vitamins and minerals, adding Iron to help
release energy effectively for the body, support development and immunity in children.
In addition, starting from May 2021, MILO uses paper straws for the MILO ready-to-
drink product line: including MILO ready-to-drink boxes (180ml, 115ml), MILO low-
sugar boxes. The paper straws used by MILO are environmentally friendly, safe for
health and ensure hygiene. In addition, the switch to paper straws does not affect the
quality or price of the product.
1.7. The role of Milo milk in the market

In the Vietnamese market, Milo holds the leading position in the barley milk and
nutritional beverage segment for children. The product not only meets nutritional needs
but also encourages an active, sporty lifestyle through campaigns such as "Supporting
movement" or "Energy for Vietnam to move forward". Thanks to its stable quality,
strong brand image and wide distribution network, Nestlé Milo has become a symbol of
nutritional drinks for school children, contributing to shaping healthy consumption
trends and affirming its solid position in the Vietnamese market.

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2. Target customers
2.1. Milo's target customers in Vietnam
Milo's target customers in Vietnam are mainly teenagers aged 13-18. They like
sports, exercise and are active and interested in sports that train their physical and
mental health. With the current diversity in types and prices, many parents are willing to
spend most of their income to provide quality milk for their children. Therefore, Milo
has seized this opportunity very well. Milo's target customers are spread across the
country, from the bustling city center to remote rural areas, with customers' incomes
ranging from low to high.
2.2. Customer consumption behavior
With convenient pre-mixed box products, parents can let their children use the
product directly every morning at home or let their children put it in their backpacks to
use when going to school or playing sports. Furthermore, with retail sales in blocks of 4
boxes, customers can easily buy small products at stores or supermarkets for direct use
after purchase.
V. Environmental analysis
1. Macro environment:
1.1. Analyze the environmental impacts on the entire dairy industry
1.1.1. Demography
The dairy industry is greatly influenced by population structure, urbanization level,
population size and consumption trends by age group.
 Population size & age structure: A growing population helps expand the potential
market for milk, especially when children, pregnant mothers and the elderly all have
special nutritional needs. If the birth rate decreases or the population ages rapidly,
increasing “basic” output will be more difficult — the dairy industry must shift to
specialized products for the elderly, low in sugar, helping bones and joints, etc.
 Urbanization and population concentration: When the population concentrates in
urban areas, the level of product access is higher, the distribution network is more

20
 convenient, the demand for premium and convenient products (ready-to-drink milk,
small cartons, fast delivery) increases. This forces dairy businesses to optimize cold
logistics systems, retail points, and e-commerce channels.
 Middle Class & Household Income: As average income increases, people have the
means to spend on more premium and supplementary products — organic milk,
functional milk, formulated milk, special nutritional products. If people's income
stagnates or is highly differentiated, the premium milk market is vulnerable.
Illustrative data (Vietnam / international):
 According to IMARC Group, the Vietnamese dairy market is valued at about 5.71
billion USD in 2024, and is forecast to increase with a CAGR of nearly 9.50 percent
from 2025–2033.
 SOSP Group's report (2024) said that the Vietnamese dairy & egg product market is
estimated to reach nearly 8.495 billion USD, growing nearly 7.61 percent/year in
the period 2024–2029.
 On the import side, in the first 4 months of 2023, Vietnam imported milk & dairy
products reaching nearly 406.39 million USD (down nearly 9.7 percent compared to
the same period in 2022).
Conclusion: Population structure, urbanization and increasing income create strong
room for the dairy industry to develop - especially with premium, convenient and
functional products. However, if the population grows slowly or ages rapidly, the dairy
industry needs to diversify its products to adapt.
1.1.2. Economic
Economic factors impact through GDP, average income, inflation, input costs,
exchange rates, economic cycles.
 GDP growth & average income: When the economy grows, people have more
money to spend on value-added foods — good milk, functional milk, imported milk
can be sold at higher prices. Conversely, when the economy slows down, consumers
can cut spending on “non-essential” items.
 Input costs & inflation: The dairy industry depends heavily on livestock feed
ingredients (corn, soybeans, mixed feed), energy, electricity, transportation,
packaging. Increasing prices of animal feed, fuel, electricity will increase
production costs, putting pressure on profit margins. If businesses cannot pass these
costs on to selling prices, they will be strongly affected.
 Exchange rate & import of raw materials/technology: Many dairy factories have to
import machinery, additives, enzymes, processing equipment — strong exchange
rate fluctuations will affect input costs. If the domestic currency depreciates, import
costs increase, pushing up production costs.
 Economic cycle & recession risk: In a recession, premium products are likely to be
cut first — consumers switch to low-end products. The dairy industry needs a
“multi-layered” product strategy to retain customers when the economy is difficult.
Illustrative data (Vietnam / international):

21
  According to Vinamilk's 2024 Annual Report: revenue and profit continue to
increase. The company applies new technology — for example: “Double vacuum, 6
HMOs added to infant formula, Swedish ultrafiltration” — showing that they invest
to enhance product value.
 According to Vietnam report, the dairy processing output in the first 9 months of
2024 increased by nearly 4.1 percent compared to the same period in 2023.
Conclusion: The dairy industry benefits from stable economic growth and rising
incomes. However, fluctuating input costs and economic risks (recession) are major
challenges. Businesses need to manage costs well, hedge against exchange rate risks,
and be flexible in pricing and product strategies.
1.1.3. Natural
This factor includes climate change, pressure on resource use (water, land),
emissions, pollution — all of which affect cow farming, milk production, and
environmental compliance costs.
 Climate change & heat stress: Dairy cows are very sensitive to high temperatures
and humidity — when it is too hot, cows eat less, milk production decreases, and
fertility decreases. Research in the US suggests that yields could fall by nearly 1.9
percent from the current baseline due to heat stress, and in the future could fall by as
much as nearly 6.3 percent. In addition, studies warn that more “extreme
heatwaves” are causing a significant increase in the frequency of milk losses —
potentially increasing losses by around 30% if no adaptation measures are taken.
The Guardian cites a study that suggests heat stress could reduce cow yields by
nearly 10 percent globally during peak heatwaves.
 Greenhouse gases & emissions: The dairy sector contributes to greenhouse gas
emissions, through methane (CH₄), nitrous oxide (N₂O), CO₂ from feed, cow
manure, and transportation. According to the IFCN, milk production accounts for
around 2.2 percent of total global greenhouse gas emissions (excluding processing
& transportation). IDF (International Dairy Federation) estimates the contribution of
the entire dairy chain (production + processing + transportation) to about 2.7
percent of global GHGs. A study assessing “cradle-to-dairy” found that the average
emissions are nearly 1.45 to 1.81 kg CO₂-eq per kg milk (FPCM).
 Water & land resources, waste pollution: Raising dairy cows, growing feed, and
treating cow manure requires a lot of water and land. If these resources are
overexploited or the land is degraded, the dairy industry will be limited. In addition,
poor treatment of wastewater and livestock waste will cause pollution — businesses
must invest in treatment systems, increasing costs.
Conclusion: Climate change and environmental pressure are major challenges for the
dairy industry if not prepared. But there are also opportunities: businesses can apply
sustainable agriculture, optimize livestock systems, reduce emissions, and obtain
“green” certification to create competitive advantages.
1.1.4. Technological

22
  On the farm: IoT, sensors, RFID, precision feeding help optimize rations, detect
diseases early, increase productivity and reduce feed costs. Milking robots &
automation reduce labor requirements, increase hygiene and safety. However, high
investment costs → create barriers for small farms; leading to productivity
differentiation between large & small households.
 In processing & logistics: UHT technology, aseptic packaging, microfiltration
increase shelf life and open export channels; efficient cold-chain reduces losses.
 Alternative technology & R&D: Plant milk, fermented protein, and “precision
fermentation” can change long-term demand in urban segments; traditional
businesses need to research/invest.
 Social impact & employment: Automation can change the labor structure, requiring
skill transfer in rural areas.
Illustrative data (Vietnam / international):
 Vinamilk deploys RFID & cow management system (2023–2024) -
internal/financial reports indicate a 12 to 15 percent productivity increase at farms
that fully apply technology.
 TH True Milk and some factories invest in “smart factories” (large capacity: for
example, TH’s 400 million liter/year factory).
 Global dairy technology investment increases; agri-tech equipment & solutions
market grows nearly 8 to 10 percent /year (2023–2025).
 Processed products market has a CAGR of nearly 6.1 percent (2025–2032) -
reflecting investment and product innovation.
Conclusion: Technology is a source of competitive advantage: increasing productivity,
quality and expanding export channels. Supportive policies/investments are needed to
help small farms access technology (concessional loans, machinery rental cooperatives).
1.1.5. Politics
 Support & protection policies: Agricultural investment subsidies, preferential
interest rates, and dairy cow development programs help expand herds and increase
domestic production. However, protectionist measures (taxes, import quotas) can
affect domestic prices and competition.
 Food safety regulations & traceability: Strict standards (antibiotic restrictions,
residue control) increase compliance costs for both farmers and factories but
improve export reputation.
 Environmental & climate policies: Emission reduction and wastewater management
requirements can lead to CAPEX costs for farms & factories.
 International trade policies: Restricting or encouraging imports of milk powder
affects the supply to domestic processors. Political fluctuations (trade relationships)
can disrupt imports of feed or raw materials.
Illustrative data (Vietnam / international):
 Vietnam depends on nearly 60 to 70 percent of imported milk powder for finished
milk production (Ministry of Industry and Trade/industry, 2024).

23
  The government supports preferential loans for large-scale livestock farming
(preferential interest rates of about 4 to 6 percent /year for key projects).
 Issuing new documents to tighten the management of milk raw material quality
(e.g., related Circulars, Food Decree – updated 2023–2024) → increasing
traceability requirements.
 In terms of international policy: China intervenes to regulate output, leading to
fluctuations in regional exports (indirect impact on Vietnam in the regional supply
chain, 2024–2025).
Conclusion: National policy is both an opportunity (preferential loans, support) and a
challenge (high cost compliance). Businesses need to proactively ensure traceability,
comply with standards and engage in policy dialogue to reduce risks.
1.1.6. Cultural
This factor is related to eating habits, health awareness, consumption trends, social
values.
 Health & nutrition: Post-COVID-19, consumers pay more attention to healthy foods
→ increase demand for low-sugar milk, high-protein milk, milk containing
probiotics. Parents increasingly choose formula milk with high nutritional standards
for children; older people choose milk with increased calcium/vitamin D.
 Sustainability & ethics awareness: Urban consumers care about animal welfare,
origin, and carbon footprint → tend to pay more for products with organic/green
label certification.
 Consumption habits & shopping channels: Online shopping for consumer goods is
growing rapidly; consumers are experimenting with many types of foreign/niche
milk (Italian cheese, imported nut milk).
 Competition from plant milk & alternatives: Plant milk (almond, soy, oat) is
increasing in the urban segment, especially among young people; not yet
overwhelming cow's milk but "increasing pressure".
Illustrative data (Vietnam / international):
 Nielsen survey (2023): 84 percent of Vietnamese people are more concerned about
their health after the pandemic.
 Yogurt (category) revenue in Vietnam increases by nearly 8.3 percent (2024); milk
and nutritional drinks increase by nearly 4 to 6 percent /year.
 The global dairy foods market is forecast to have a CAGR of nearly 6.12 percent
(2025–2032) → reflecting increased demand for value-added products.
 The rate of people trying plant-based milk in urban areas is increasing rapidly
(urban retail channel statistics: 10 to 15 percent penetration in 2023–2024).
Conclusion: Consumer behavior is shifting toward health, convenience, and
sustainability — businesses must innovate products, be transparent about their origins,
and develop modern online & retail channels to reach young, urban consumers.
The Vietnamese dairy industry is currently in a steady growth phase, supported by
a favorable demographic structure, economic resilience, and evolving consumer

24
lifestyles that emphasize health and nutrition. However, the industry also faces
challenges from climate change, cost fluctuations, and tightening regulations.
1.2. Create 2 tables listing opportunities and challenges

OPPORTUNITIES OF VIETNAM’S DAIRY INDUSTRY

No. Opportunities Positive Impact on the Dairy Industry

1 Large population and rapid Vietnam has over 100 million people, with
urbanization an urbanization rate above 41 percent
(2024). Demand for milk and nutritional
products is rising, especially in urban
areas.
2 Rising income and GDP per capita reached nearly 4,300 USD
expanding middle class in 2024, projected to increase to USD
4,700 in 2025, encouraging consumers to
spend more on premium and organic milk.
3 Stable market growth Vietnam’s dairy market reached USD 5.71
billion in 2024, with a projected CAGR of
nearly 9.5 percent (2025–2033).
4 Technological advancement IoT, automation, ultrafiltration, aseptic
in farming and processing packaging, and digital traceability systems
help increase productivity, reduce costs,
and extend shelf life.
5 Government support Decree No. 57/2018/NĐ-CP encourages
policies investment in agriculture, supporting dairy
farming areas and offering tax incentives
for processors.
6 Healthy and nutrition- Vietnamese consumers are paying more
focused consumption trend attention to low-sugar, probiotic, and
organic milk products, creating demand
for functional dairy lines.
7 Export and trade Trade agreements such as EVFTA and
integration opportunities RCEP enable Vietnamese dairy producers
to expand exports to the EU and Asia with
tariff advantages.
8 Sustainability and green Companies adopting ESG standards,
farming initiatives emission reduction, and eco-friendly
packaging can build a “green brand”
image, attracting younger consumers.

CHALLENGES OF VIETNAM’S DAIRY INDUSTRY

25
 No Negative Impact on the Dairy Industry
Challenges
.
1 Rising input costs Higher prices of animal feed, energy, and
packaging reduce dairy firms’ profit
margins.
2 Climate change and heat High temperatures reduce dairy cow
stress health and milk yield.
3 Dependence on imported Around 60 to 70 percent of milk powder is
raw materials imported, making the industry vulnerable
to exchange rate fluctuations.
4 Intense competition from The market faces strong competition from
foreign and plant-based imported dairy (New Zealand,
milk Netherlands) and plant-based milk
(almond, oat).
5 Economic slowdown and In periods of inflation or recession,
fluctuating consumer consumers cut spending on premium dairy
purchasing power products.
6 Stricter food safety Firms must invest more in testing,
regulations ISO/HACCP standards, and traceability
systems, increasing compliance costs.
7 Environmental pressure and Dairy cattle emit methane (CH₄); firms
greenhouse gas emissions need to invest in waste treatment and
emission-reduction technology under ESG
standards.
8 Rapidly changing consumer Young consumers are shifting to plant-
behavior based, drinking yogurt, and convenient
dairy options — slow-adapting brands
may lose market share.

 Conclusion
The Vietnamese dairy industry demonstrates strong growth potential supported by
favorable macroeconomic and demographic factors. An expanding middle class,
increasing urbanization, and government incentives are fueling both consumption and
production capacity. Technological advancements and growing health awareness among
consumers also create new opportunities for product diversification and export
expansion. However, the industry faces significant challenges such as rising input costs,
climate change, dependence on imported materials, and strong competition from plant-

26
based alternatives. To sustain long-term growth, dairy companies must embrace
innovation, apply sustainable farming methods, strengthen supply chains, and align with
international ESG and food safety standards. In summary, Vietnam’s dairy sector can
achieve stable development if it effectively balances market expansion with
environmental and economic sustainability, leveraging both domestic advantages and
global integration opportunities.
2. Micro environment
2.1. Analyze the strengths and weaknesses of the factors, and the impact of those
factors on the Nestlé Milo dairy company
2.1.1. The company
 Strengths: Nestlé Vietnam operates under the global Nestlé Group, giving Milo
access to world-class expertise in nutrition, technology, and management. The
company enjoys strong financial stability, global brand recognition, and a reputation
for quality and safety. Nestlé Milo, introduced to Vietnam in 1994, has since
become one of the most popular ready-to-drink chocolate malt beverages for
children and teenagers. The company has a professional management system,
modern production facilities in Dong Nai and Hung Yen provinces, and a high level
of automation ensuring product consistency. Its emphasis on the slogan “Energy for
Champions” (Năng lượng cho nhà vô địch) reinforces a positive image of vitality
and youthfulness. Nestlé also places a strong emphasis on sustainability and shared
value creation. The firm supports community development, school programs, and
local sports events, which not only enhance brand reputation but also reflect the
company’s corporate social responsibility (CSR).
 Weaknesses: However, the company faces several internal limitations. The heavy
reliance on imported raw materials (especially cocoa and certain dairy powders)
makes it vulnerable to fluctuations in global commodity prices and exchange rates.
Decision-making processes can sometimes be slow due to the hierarchical approval
system from Nestlé’s global headquarters. Furthermore, production costs and
marketing expenses are relatively high compared with local brands like Vinamilk.
The company’s image is also occasionally challenged by public discussions about
sugar content in flavored milk products.
Overall, Nestlé’s brand power and financial capacity strengthen Milo’s position,
enabling it to sustain large-scale promotional activities and long-term brand loyalty.
However, rising input costs and changing health trends force Milo to continuously
innovate in product formulation, packaging, and communication to maintain
competitiveness.
2.1.2. Suppliers
 Strengths: Nestlé Vietnam maintains strategic partnerships with both domestic and
international suppliers. The company adheres to strict quality control standards and
sustainability principles in its sourcing. Local suppliers are increasingly being
developed through Nestlé’s “Farmer Connect” and “Nescafé Plan” models, which

27
 ensure ethical and sustainable agricultural practices. This not only enhances supply
stability but also strengthens local economic development. Reliable supply
partnerships ensure continuous availability of high-quality milk, cocoa, sugar, and
packaging materials.
 Weaknesses: Nonetheless, Vietnam still imports a significant portion of its milk
powder and cocoa, leading to high dependency on international suppliers. Price
volatility, logistics costs, and currency fluctuations directly affect production
budgets. The company also faces supply chain challenges during global crises such
as pandemics or geopolitical instability.
The strong supplier network ensures consistent product quality and production
continuity. However, external factors beyond the company’s control — like global
price changes or climate impacts on cocoa production — can affect cost efficiency
and pricing strategy. To mitigate these risks, Nestlé Vietnam continues to localize its
supply base and explore alternative sourcing strategies.
2.1.3. Marketing intermediaries
 Strengths: Nestlé Milo benefits from one of the largest and most effective
distribution systems in Vietnam’s beverage market. Its products are present in
almost every retail format: supermarkets, hypermarkets, convenience stores,
traditional groceries, schools, and e-commerce platforms. The company also uses
advanced logistics systems to manage product flow efficiently from production to
consumption points. Nestlé’s collaboration with distributors, such as school canteen
suppliers and sports event organizers, enhances accessibility and strengthens brand
engagement with young consumers. In the digital era, Milo leverages e-commerce
growth by partnering with online retailers like Shopee, Lazada, and Tiki, offering
promotional bundles and nationwide delivery. This helps Milo reach tech-savvy
young parents who prefer online shopping.
 Weaknesses: Despite its distribution strength, the company faces challenges in rural
regions where infrastructure is weaker and cold-chain logistics are limited. Some
intermediaries may prioritize local products with higher margins or shorter shelf
lives. Maintaining consistent product display, stock freshness, and brand visibility
across thousands of outlets requires intensive monitoring and marketing investment.
The comprehensive intermediary network contributes significantly to Milo’s
market dominance and product availability. However, high operational costs and
uneven retailer commitment can reduce efficiency. Strengthening distributor
incentives, improving digital tracking, and expanding cold-chain capacity can help
optimize performance.
2.1.4. Competitors
 Strengths: The Vietnamese dairy industry is highly competitive, which motivates
Nestlé Milo to continually innovate. Major competitors include Vinamilk, Dutch
Lady (FrieslandCampina Vietnam), TH True Milk, and Ovaltine. The presence of
these strong brands encourages Nestlé Milo to improve product diversity, marketing

28
 creativity, and customer service. Competition also drives the company to
differentiate itself through unique positioning as a chocolate malt drink associated
with sports and active living.
 Weaknesses: Price competition and local brand loyalty are major threats. Local
competitors such as Vinamilk and TH True Milk have extensive rural distribution
networks and can sell at lower prices. Foreign competitors like Dutch Lady have
equally strong marketing capabilities. Additionally, imitation products and
substitutes can erode market share if Milo fails to innovate.
Competition forces Milo to sharpen its differentiation strategy — focusing on
energy, sports, and nutrition. The brand’s consistent message of supporting
children’s physical and mental development helps maintain strong loyalty. However,
Milo must continue to adapt to emerging consumer trends such as low-sugar and
plant-based nutrition.
2.1.5. Publics (7 types of publics)
 Financial publics: Banks, investors, and shareholders provide financial stability.
Nestlé’s strong credit rating ensures funding for expansion. However, rising interest
rates or financial crises could tighten budgets.
 Media publics: Mass media, digital platforms, and social networks play a vital role
in shaping brand perception. Milo’s advertising campaigns on TV and YouTube
successfully connect with parents and children. However, negative publicity
regarding sugar content or packaging waste can harm brand reputation.
 Government publics: Nestlé Milo must comply with Vietnamese laws on food
safety, labeling, advertising to children, and environmental protection. Compliance
ensures credibility and stability. However, any tightening of health regulations (e.g.,
limits on sugar) may require product reformulation.
 Citizen-action publics: Consumer protection organizations and environmental
NGOs monitor corporate behavior. Nestlé has proactively addressed these publics
by promoting recycling programs, sustainable packaging, and transparency about
ingredients.
 Local publics: Local communities around Nestlé factories in Đồng Nai and Hưng
Yên benefit from job creation, education sponsorship, and school sports programs.
Positive engagement enhances the brand’s social image and community support.
 Internal publics: Employees, management, and distributors are crucial for success.
Nestlé invests in staff training, safety, and workplace equality. Motivated employees
ensure consistent product quality and brand integrity.
 General publics: Public perception determines sales and loyalty. Milo enjoys a
strong reputation as a nutritious drink for children, but increasing health awareness
about sugar intake challenges its long-term perception. Transparent communication
and continuous product improvement are essential.

29
 The publics directly and indirectly influence brand trust, operational freedom, and
reputation. Nestlé Milo’s proactive engagement and CSR initiatives help maintain a
positive image and long-term acceptance in society.
2.1.6. Customers
 Strengths: Milo’s main customer segments include children (aged 6–15), teenagers,
and parents who prioritize nutrition and convenience. Milo effectively connects
with emotional values — childhood memories, family care, and sports participation.
The drink’s chocolate taste, combined with energy-boosting nutrients, creates a
strong attachment among school-aged children. The brand’s activities like “Milo
Active Vietnam,” “Năng lượng xanh học đường,” and sports sponsorships build
trust and loyalty.
 Weaknesses: Changing lifestyles and dietary preferences present challenges. More
consumers prefer natural or low-sugar products. Parents are increasingly cautious
about sugar levels in children’s beverages. In rural markets, price sensitivity
remains high, limiting the sale of premium Milo products.
Understanding and adapting to evolving consumer needs is crucial. Nestlé must
diversify its product portfolio to include healthier, low-sugar, and plant-based versions
while maintaining the signature Milo flavor. Enhanced customer engagement through
digital channels can further strengthen loyalty.
3. Swot

Swot Analysis
Strengths - Dominant Market Share & Brand Equity: Milo possesses
exceptionally strong brand recognition and loyalty,
particularly in the Asia-Pacific region. In markets like
Malaysia, it is a cultural icon and holds a commanding market
share (reportedly up to 90 percent).
- Global Distribution Network: As a Nestlé brand, Milo
benefits from one of the world's most extensive and efficient
supply chain and distribution networks, ensuring widespread
availability from urban supermarkets to rural convenience
stores.
- Strong Brand Association: The brand has successfully
associated itself with energy, sports, and childhood nutrition
for decades, creating a powerful, multi-generational emotional
connection with its consumers.
Weaknesses - High Sugar Content: The brand's primary weakness is its
traditional formulation, which is high in sugar. This has led to
significant public criticism from health organizations and
consumers, damaging its reputation as a "healthy" energy
drink.

30
 - "Health Star Rating" Controversy: In markets like
Australia, Nestlé faced a major backlash for promoting Milo
with a 4.5 (out of 5) health star rating, which was calculated
based on being mixed with skim milk. After public pressure,
Nestlé removed the rating from the packaging, highlighting a
disconnect between its marketing and the product's core
nutritional profile (* Food & Drink Business. (2018). Nestle
pulls 4.5 health star rating from Milo tins.)
Opportunities - Product Innovation for Health Trends: There is a significant
opportunity to capture the growing health-conscious consumer
segment. Nestlé has already begun this by launching product
variations like "Milo Less Sugar" (or 25 percent less sugar)
and "Milo Plant-Based" (using soy and almond milk),
appealing to vegan and dairy-free consumers. Expansion of
"Ready-to-Drink" (RTD) Format: The convenience market is
growing.
- Expanding the portfolio of on-the-go RTD: Milo products
can capture sales from busy consumers, students, and office
workers looking for a quick energy boost.( * NUFFOODS
Spectrum ASIA. (2021). Nestlé launches plant-based version
of Milo in Asia)
Threats - Increased Government Regulation (Sugar Taxes): The most
significant threat is the global implementation of taxes on
sugar-sweetened beverages (SSBs). Many countries,
especially in Milo's key markets in Southeast Asia (e.g.,
Thailand, Philippines, Vietnam), have introduced or proposed
sugar taxes. This directly increases the product's price and may
reduce consumer demand.
- Intense Competition: Milo faces direct competition from
other malted-drink brands (e.g., Ovaltine, Horlicks) and
indirect competition from a vast array of other beverage
categories, including sports drinks, energy drinks, and
healthier milk alternatives.(* The World Bank. (2020). Taxes
on Sugar-Sweetened Beverages: Evidence and Experiences.)

VI. Identifying Marketing Strategy

1. Target customers
Nestlé's marketing strategy is notable for its broad and segmented customer
targeting. Rather than focusing on a single demographic, the company caters to a vast
array of consumers by developing distinct products for different life stages, lifestyles,
and nutritional needs. For instance, its infant nutrition brands like Gerber and Cerelac
31
target new parents and their babies, while Nescafé appeals to adult coffee drinkers, and
its health science division creates products for individuals with specific medical
conditions. This differentiated marketing approach allows Nestlé to meet the specific
needs of various consumer groups, from health-conscious adults to families seeking
convenient meal solutions, thereby maximizing its market reach globally
(Marketingsage, 2023).
2. Positioning
Nestlé strategically positions itself globally under the powerful slogan "Good Food,
Good Life," which encapsulates its commitment to enhancing quality of life through
nutrition, health, and wellness. This corporate-level positioning builds a foundation of
trust and reliability, portraying the company as a responsible provider of wholesome
products. While this overarching identity is consistent, Nestlé employs a flexible, multi-
brand positioning strategy at the product level. Each brand is carefully positioned to
meet specific consumer needs; for instance, KitKat is positioned as the ideal snack for a
break, Nescafé as the kick-starter for the morning, and Maggi as a quick, convenient
meal solution. This sophisticated dual approach allows Nestlé to cultivate a broad,
positive corporate image while ensuring its individual products resonate strongly with
their specific target audiences (IIDE, 2024).
3. Pricing strategy
Milo milk product line targets parents with children aged 6-14, with incomes ranging
from low to high. With the determination from the beginning, the product targets parents
with children aged 6-14 across the country. Therefore, the price of Milo milk product
line is relatively suitable for the average monthly income of households in Vietnam
(with GDP per capita of 2,200 USD/year according to the General Statistics Office in
2016). The difference is not significant compared to the prices of other milk product
lines. For example: 1 pack of Milo milk in a paper box costs 28,000 VND, while 1 pack
of Dutchlady milk in a paper box costs 26,000 VND, a difference of about 2,000 VND.

Product name Product price

Milo powdered milk in a 1kg package 215,000 VND/package
Milo milk box 110 ml 7,000 VND/box
Milo milk box 180 ml 9,000 VND/box
Milo milk powder in a plastic jar 400 grams 110,000 VND/jar
Milo milk box less sugar 180 ml 10,000 VND/box
Milo breakfast cereal 150 grams 90,000 VND/box

4. Distribution strategy
Milo milk has been present in Vietnam since 1999. Therefore, all Milo milk products
are widely distributed throughout the country, from big cities such as Ho Chi Minh City,
Hanoi, Da Nang to rural areas. Distributing products as widely as possible is to ensure
that customers' purchasing needs are met best. However, there are still some problems
32
that need to be solved such as: the situation of counterfeit goods throughout the market,
customers buying poor quality products, causing the brand to lose its reputation in the
minds of customers.

Supplier: Nestlé
Company (Vietnam)

Wholesaler/Retailer

Customer

5. Promotion strategy
Milo milk products of Nestle Vietnam have been present in the market since 1999. Since
its appearance, the Milo milk brand has had many activities to promote the brand on
mass media channels. The product is widely advertised everywhere such as: posters in
grocery stores, on television,... This can be considered a strong point of theirs, in
addition to widely advertising on television, they also sponsor many sports activities of
primary and secondary schools across the country, typically: Phu Dong Sports Festival
for primary school students at Binh Duong province level, Phu Dong Sports Festival for
secondary school students at Dong Nai province level, in addition to organizing
competitions for contestants, the company also creates opportunities for contestants and
audiences to try Milo milk for free. In addition to the above activities, the company also
has many other promotional activities such as:
 Carry out promotional programs: give away additional school supplies and toys
when buying products. For example, the program of buying Milo and giving away a
backpack, when customers buy a carton of Milo milk, they will receive a backpack
printed with the logos of Milo and Nestle.
 Create contests for parents such as: Design packaging for Milo milk products, share
pictures of Milo milk cups to receive prizes and promotions.
VII. Identifying Marketing-Mix Program (4Ps)
Evaluatio
4Ps Nestlé Milo Ovaltine Lof Kun
Conclusio

33
 Milo is a chocolate
Ovaltine is also a Lof Kun, a
malt milk drink Milo stands out
chocolate malt Vietnamese brand
enriched with vitamins “energy for
beverage but from Nutifood,
B2, B3, B6, B12, champions” ide
emphasizes natural focuses on
calcium, iron, and malt and sports assoc
malt and no nutritional milk
extract. It focuses on Ovaltine wins p
artificial coloring. for children’s
providing energy and for natural ingr
Its positioning growth. It offers
nutrition for active and emotional
centers on balanced both white and
children and teenagers. connection, whi
Product nutrition and chocolate-
Product lines include Kun appeals to
happiness, not just flavored milk.
Milo ready-to-drink and local afford
energy. The taste is The product is
boxes (110ml, 180ml), Milo has the str
sweeter and rich in calcium
Milo powder, Milo brand distinctiv
creamier than and DHA,
cereal, and Milo but must contin
Milo’s. Product marketed for
protein drink. The reduce sugar an
forms include physical and
brand highlights sports, to the “healthy
bottled, boxed, and mental
energy, and physical nutrition” trend
powdered drinks. development.
activity.
Milo’s premium
pricing builds a
quality image, b
Lof Kun offers
Milo’s price is limit lower-inco
Ovaltine is priced more affordable
medium–high: around consumers. Ova
slightly below Milo prices (4,000–
6,000–9,000 VND per slightly cheaper
(5,000–8,000 VND 6,000 VND per
180ml box; 90,000– allows for broad
per 180ml box). It 180ml box),
Price 110,000 VND for 400g access, while L
targets the same benefiting from
powder. The premium dominates in
age segment but domestic
price reflects imported affordability. A
positions itself as production and
materials and a global balancing strate
more accessible. localized
brand image. smaller pack op
ingredients.
could help Milo
maintain reach
diluting brand v
Place Milo has a strong Ovaltine focuses Lof Kun benefits Milo leads in or
nationwide distribution on urban from Nutifood’s and school-base
network— distribution— local distribution distribution, wh
supermarkets, supermarkets, system, with deep Kun has better r
convenience stores, convenience stores, reach in both coverage. To m
school canteens, and and e-commerce— urban and rural leadership, Milo
online channels but has weaker markets through optimize logisti
(Shopee, Tiki, Lazada). penetration in rural traditional shops deepen partners

34
 Its presence in school
programs and sports markets compared and school with local retail
events strengthens to Milo. channels. smaller provinc
brand visibility.
Milo dominates
Ovaltine’s sports-based em
advertising branding and lo
Milo’s promotion Lof Kun
emphasizes term brand loya
strategy focuses on promotes healthy
emotional through experie
sports, energy, and growth through
connection marketing. Ova
education — through TV ads and
—“Không cần con differentiates vi
campaigns like “Năng school nutrition
là nhất, chỉ cần emotional empa
lượng Việt Nam – Milo programs. Its
Promotion con vui” (“You while Lof Kun
Active School” and communication
don’t have to be on local trust an
“Champions Never stresses
the best, just be affordability. M
Give Up.” It uses Vietnamese pride
happy”). It uses challenge is to
sponsorships, sports and family care,
heartwarming maintain authen
tournaments, and social often featuring
storytelling to while moderniz
media storytelling. child celebrities.
resonate with messages towar
parents. healthier, more
balanced lifesty

Nestlé Milo, Ovaltine, and Lof Kun all compete in the chocolate malt and nutritional
milk segment targeting school-aged children. Among them, Milo has the strongest brand
identity through its international positioning and sports-based energy message. Ovaltine
attracts consumers through emotional and family-centered communication, while Lof
Kun leverages affordability and local trust. However, Milo’s high price and moderate
sugar content could become challenges in a market increasingly focused on health and
value-for-money. To maintain leadership, Milo should continue diversifying product
lines (low-sugar, plant-based options), strengthen local engagement, and emphasize
balanced nutrition along with energy. This strategic evolution will ensure long-term
brand sustainability in Vietnam’s competitive dairy beverage industry.

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