Final Evaluation (A) 2021-10-A

Blended – Distance Program

Subject

OPERATIONAL MARKETING

1. Considerations:

Criterion Detail
Approximate time: 48 hours for final project delivery
Statement/Slogan Strategic Marketing Plan Project.
Instructions to start Prepare a Strategic Marketing Plan for a product and/or service,
preparing the final considering the methodological structure proposed in the exam. The
evaluation research information from secondary sources that will be considered in
the work must be cited according to APA standards or other standards
considered by the working group.

The work will be done in groups of 6-7 formed in class during the
sessions

Continental University

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 Subject

OPERATIONAL MARKETING
Strategic Marketing Plan Project

COMPANY: Cereal Partners Worldwide S. TO. (Nestle)

BRAND: MILO

Professor

Cristian Abel Huaita Acha

Students

● VILLANUEVA ANCCORI ELOY

● CHACÓN DELGADO RAUL OCTAVIO
● MOLLAPAZA QUISPE BENJAMIN
● SUAREZ CANCHARI LIZETH YHADHIRA
● BACA GUZMAN KARESSEN
● MAMANI ZEA LISSETH SARAI

PERU - 2021-10A

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 INDEX

STRUCTURE

STRATEGIC MARKETING PLAN

COMPANY:

SECTOR:

PRODUCT NAME

COMPANY PHILOSOPHY

- VISION
- MISSION
- VALUES

CHAPTER I

1.1. SITUATIONAL ANALYSIS OF THE COMPANY

1.1.1 Company History

1.1.2 Product Description (Matrix – Attributes and Benefits)
1.1.3 Analysis of the PESTA Macro Environment (Political, Economic,
Social, Technological and environmental)
1.1.4 Analysis of the Micro Environment (Porter's Five Forces)
1.1.5 Sales evolution in the last 5 years

CHAPTER II
STRATEGIC MARKETING (MARKET RESEARCH)

2.1 CONSUMER ANALYSIS (PRIMARY INFORMATION)

2.1.1 Consumer profile

2.1.2 Target audience segmentation

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 2.1.3 Wants and needs

2.1.4 Usage habits and attitudes

2.1.5 Purchase frequency

2.1.6 Roles in the Purchase (Initiator, Influencer, Decider, User)

2.2 MARKET

2.2.1 Analysis and evaluation of market evolution according to the

economic sector

2.2.2 Current market trend

2.2.3 Market size by region (in physical and monetary volume)

2.2.4 Product life cycle

2.2.5 Competitor analysis

2.2.6 Market share of major brands

2.2.7 Product segmentation in the market

2.1 CHARACTERISTICS OF THE MARKETING MIX

Analyzes the characteristics of the companies that currently operate in the

market and of the company itself.

2.1.1 Product characteristics

2.1.2 Distribution characteristics

2.1.3 Advertising and promotion features

2.1.4 Price characteristics

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 CHAPTER III
MARKETING OBJECTIVES

3.1 Sales volume

3.2 Market participation.

3.3 Customer loyalty

3.4 Corporate image

CHAPTER IV
MARKETING STRATEGIES

4.1 Product portfolio

4.2 Market Segmentation

4.3 Positioning of the product and/or service

4.4 Functional Strategy (Tactical Marketing of the 4Ps of Marketing MIX))

to. PRODUCT

· Characteristics

· Benefits for the consumer

· Brand

· Packing

· Quality

· Services and warranty

b. POINT OF SALE

· Product distribution channels

· Point of Sale Analysis

· Logistics

· Transport

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 c. PROMOTION

· Advertising

· Sale promotion

· Media

· Personal sales and sales team

· Direct marketing (Internet advertising, social networks)

· Sale promotion

d. PRICE

· Pricing

· Comparison with the competition

· Discounts

· Financing

Conclusions

recommendations

Annexes

Bibliography

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 STRUCTURE

STRATEGIC MARKETING PLAN

COMPANY: Cereal Partners Worldwide S. TO. (Nestle)

SECTOR: Secondary transformation of food resources.

PRODUCT NAME: MILO

COMPANY PHILOSOPHY

⮚ VISION: to be recognized as the leading company in nutrition, health and well-being.

The company's efforts are aimed at always being at the forefront of the food industry,

where the objective is to meet the demands of a society that is moving towards a healthier

life, creating long-term value for shareholders, collaborators. , consumers and the

societies where we operate.

⮚ MISSION: Delight families with nutritious products that provide health and well-being

throughout their lives, offering price, superior quality and creating shared value guided

by values and with nutrition at the center, which working together with collaborators to

improve quality of life and contribute to a healthier future.

⮚ VALUES:

a. Respect for ourselves: Respect begins with respecting ourselves and being

true to who we are, and then acting with integrity, honesty and authenticity.

b. Respect for others: Respect for those around us and for all those with whom

we interact creates a climate of mutual trust. It's about being consistent and

providing quality in our products, our brands and everything we do.

c. Respect for diversity: Respect for diverse ways of thinking, for other cultures,

in all our interactions, both inside and outside our company.

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 d. Respect for the future: Respect for the future of our world and for the

generations that follow us forces us to act with responsibility and courage,

even when it is difficult.

CHAPTER I

1.1. SITUATIONAL ANALYSIS OF THE COMPANY

1.1.1 History of the company

Our story begins in 1866, when Henri Nestlé created a revolutionary infant food made of

milk, sugar and wheat flour, which he named Food Flour and later as Dairy Flour. From

that moment on, Henri Nestlé abandoned all his projects to concentrate on the

development of the new product. The success was practically immediate and in 1868 he

set out to conquer the international market. In 1873 sales had reached remote markets.

Finally, on March 8, 1875, he signed the document through which he transferred the

factory, the product patent, the name and the emblem of the nest - which he had created,

inspired by the German meaning of his own surname.

❖ In 1905 the company he had founded merged with the Anglo-Swiss Condensed Milk

Company to form what is known today as the Nestlé Group.

❖ In 1940, Nestlé officially became present in Peru. Nestlé's rapid positioning in the

country led it to open, two years later, its first factory in Chiclayo (Perulac), a plant

that began operations with the manufacturing of dairy products.

❖ In 1961 Kirma and Nescao were also produced, also continuing with the production of

dairy and cereals.

❖ In 1997 Nestlé Peru acquired D'Onofrio, a renowned national firm of sweets,

panettone and ice cream with more than 100 years of presence in the market, and

which, with the help of Nestlé, took the leap into its internationalization, being

recognized in other countries and preserving its appreciation among Peruvians.

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 ❖ In 2019 Launch of the Global Youth Alliance in Davos. Announcement of

commitment to zero emissions throughout our operation by 2050.

❖ Today Nestlé is the leading company in nutrition, health and well-being, appreciated

and perceived as the company with the best reputation in Peru and as one of the most

socially responsible. The success achieved in Peru is due not only to the support of

being the first food company in the world, but also to a local strategy of conquering

new consumer segments, accompanied by the constant innovation of its brands.

1.1.2 Product Description (Matrix – Attributes and Benefits)

MATRIX ATTRIBUTES BENEFIT

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 Nestlé is committed to Nutrition, Health and The trust that consumers have
Wellbeing that seeks to improve the quality in Nestlé, in its brands,
of life of consumers every day and in all products and services
places, offering them a selection of tastier
and healthier foods and beverages and
promoting a healthy lifestyle.

Seeks to offer options to the consumer. For The consumer has the ease of
this, products such as ice cream and choosing the type of
chocolates, cereals and others are offered in presentation that is in
reduced portions with the same flavor and accordance with their
characteristics. possibilities, thus reaching all
Peruvian families.

Nestlé has developed various products It offers products that provide

enriched with traditional ingredients, in order nutritional value within the
to not only revalue the native natural reach of all consumers and in
resources of Peru, but also capitalize on the an appropriate portion,
nutritional contribution of these ingredients. backed by Nestlé quality and
technology.

1.1.3 Analysis of the PESTA Macro Environment (Political, Economic, Social,

Technological and Environmental)

POLITICAL.

They are the forces that determine the formal and informal rules under which

the organization must operate. They are generally associated with the power

processes around the organization, agreements related to the purposes of the

organization, as well as the interests of the members. agents involved

In this aspect, the political stability of the country and the actions that the

government takes against acts of corruption are considered. Broader legislation

is still necessary to prevent and reverse the indicators of corruption in the

country. This explains that there is a negative relationship between the level of

development of the country and the level of corruption, which suggests that the

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macroeconomic effects that derive from this are important for the country.

Where then, this fact puts at risk internal investment and, therefore, economic

development, which brings with it a recession of the economy and lower

consumption.

ECONOMIC.

They determine macroeconomic trends, financing conditions and investment

decisions, having direct impacts on the purchasing power of the organization's

clients.

The country's outlook was reduced in the month, as private consumption, fixed

investment and exports contracted this year due to the covid _19 pandemic,

which is expected to recover in GDP this year (2021).This year The economy

should recover solidly, growing 4.7%.

SOCIAL.

They are those that incorporate beliefs, values, attitudes, opinions and lifestyles

of people based on the social, cultural, ethnic, religious and demographic

conditions that exist in the environment; defining the consumer profile, the size

of the market and the shopping habits.

According to the Nielsen Global survey on consumer confidence, which is

responsible for measuring consumer attitudes about the labor market, spending

intentions and habit change, it indicates that 44.4 has dropped 4.2 points

compared to the last months and at the beginning of the year and is lower than

at any other time. The global consumer confidence index is the average of the

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national index of the 24 world markets surveyed monthly by Ipsos. In this

sense, Nestlé will have to reinvent its products in order to have greater sales.

TECHNOLOGICAL.

With 403 factories in 84 countries, we have strong manufacturing capabilities

across all of our businesses. Without this, we simply would not be able to meet

the high expectations of our customers, our shareholders and ourselves. We are

a passionate and multidisciplinary team that works in different areas such as:

Engineering, safety, health and environment, operational excellence and

quality of service with passion and we always strive to improve, collaborating

with colleagues and partners to grow and succeed together.

There are unlimited opportunities across businesses, functions and

geographies, as an individual grows by contributing to a broader team.

ENVIRONMENTAL .

They are those promoted by institutions that fight to preserve the balance of the

planet's ecosystem, warning of the harmful effects of industrialization,

combating the felling of tropical forests, the predation of endangered species

and the emission of toxic gases.

For nestlé, reducing the environmental impact of its activities is a constant

effort that involves all actors in the value chain. The result of a large

investment at a global level and a real change in the way it operates and

supervises its processes, it has achieved a significant decrease in its emissions,

creating value for society, greater efficiency in the use of resources and for the

company, a reduction in production costs. Through global programs such as

Nestle continuous Excellence, the company reduces its impact by saving the

greatest amount of resources during the production, processing, storage and

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 distribution of products, thus contributing to the great challenge of humanity,

the conservation of return and resources .

They have strengthened Nestlé's environmental requirements for water and

effluent quality, applied by all factories to go beyond legal compliance through

our operations, water conservation measures, new and improved facilities.

1.1.4 Microenvironment Analysis (Porter's Five Forces)

1.1.5 Sales evolution in the last 5 years

63.3% of mass consumption in Peru is carried out in the traditional channel

according to a Nielsen study, composed of markets and wineries, which are affected

by the State of Emergency.

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 The evolution of its sales has not been spectacular:

45.7% of its sales are made in America, 28.6% in the Europe, Middle East and North

Africa area and 25.7% in the Asia, Oceania and Sub-Saharan Africa area.

Its turnover is expected to grow little in 2024 and return to normal starting this year in

2021, with an average annual growth of 3% for the period 2022-2024.

After a period of time with disappointing results, they have managed to increase

profits in the last two years:

CHAPTER II

STRATEGIC MARKETING (MARKET RESEARCH)

2.1 CONSUMER ANALYSIS (PRIMARY INFORMATION)

2.1.1 Consumer profile

As mentioned in the segmentation strategy, the aim is to reach an end audience of men

and women between 4 and 25 years old of SES A, B and C, considered as frequent or

occasional consumers . Also concerned about their health and appearance. The final

consumer profile prioritizes quality and good taste, and is interested in the impact of

the environment and social responsibility actions. ados

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 Currently, the Nestlé company is found in 8 out of 10 homes and is present in 300,000
local and international stores and supermarkets.

The MILO brand, being a modifying product that accompanies milk, encourages the
consumption of this food in children and young people.

· Gender: man and woman

· Segment: children and young people

· Age: 4-25 years

· Stratum: 3-6

· Cultural level: basic onwards, medium high

2.1.2 Target audience segmentation

At the level of size, in Peru there are players larger than us, such as Alicorp and

Gloria, with basic products from the family basket, such as oils, pasta or milk, in each

case.

However, we have important leadership in nutritional drinks like Milo, with 90%

market share ; coffee, with almost 70% of the market; or in chocolate, with more

than 50%. In panettones, where there is a great fragmentation of brands, we reached

40%, with a growth of seven participation points. In ice cream we are the absolute

leaders with 80%. As a company, we are in good health.

We are also participating in healthier segments, such as functional cookies with the

Fitness brand. In this category we have 5%, where there are almost five 'players'

competing for large volumes. On the milk side, for example, we are the second player,

but distant. Gloria is the leader. It is an important category in which we have 15% of

the market and with which we are working on some developments.

2.1.3 Wants and needs

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 Consumers who want a high nutritional contribution in their diet.

2.1.4 Usage habits and attitudes

The habits of use and consumption generate important opportunities for us when

conducting a survey of consumers of MILO brand products. They take into account

when purchasing the product, they see if it is on promotion, the size of the container

and quantity of product, the presentations the wrapping or packaging also compare

prices with similar products the consumer buys them because it is a frequently

consumed product in their meals they accompany them as a soft drink or as hot drinks

instead of mates tea or coffee it is a reason for purchase such as the attention that the

sellers offer with the kindness that they send them

also a revealing fact in this study of habits and attitudes. That almost 30% of the

population does not eat breakfast at home, if they do, is very deficient, as in the case

of adolescents due to their attitudes typical of their age, and adults generally because

they are very busy or disorganized in their schedules ( to put it in a way that lacks

time) is a segment that there is a need to serve them with our products for their

nutrition since eating at home is no longer fashionable for them, their way of eating

has changed with products that really help them. at least stay fed

2.1.5 Purchase frequency

Due to its easy preparation, flavor and high content of vitamins, iron and calcium. It is

purchased once or twice a month. It is purchased when the 20-35 year old consumer

has the purchasing power to make their purchase, and at the same time there is also an

influential buyer, who is the parent of a family who buys because their children

encourage them to purchase the product. This product is purchased in neighborhood

stores and chain supermarkets such as Success, Carulla, Pomona, Olímpica, among

others.

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 2.1.6 Roles in the Purchase (Initiator, Influencer, Decider, User)

Initiator: influencer: is the person who recommends where to buy, the desired products.

Influencer: is the person who recommends where to buy

Decider: is the person who decides between the different options, brands, establishments

to purchase the product.

User: is the person who pays for the purchase, for the product purchased

2.2 MARKET

2.2.1 Analysis and evaluation of market evolution according to the economic

sector

We make strategic decisions that reflect the dynamics of the industry, with the purpose

of generating a competitive and sustainable advantage for its offers in relation to those

of its competitors and thus achieve a higher level of economic performance. The basis

of much of the strategy marketing of an organization is to clearly understand the

industry in which it competes

2.2.2 Current market trend

Nestlé is a food company in the entire world and to keep up with new developments,

you have to get ahead of them, Nestlé is aware of new trends and that being prepared

to satisfy consumer needs that have not yet fully emerged is of vital importance for the

growth of the company.

Today's consumer is more informed and concerned about their balanced health and

seeks solutions to have a healthy lifestyle, and this is how new trends are born at

Nestlé for consumers.

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Like the change from animal protein to vegetable protein and more and more people

are opting for the flexitarian option, which includes the consumption of vegetables,

fruits, legumes and cereals, with the inclusion of meat and fish on a more occasional

basis.

2.2.3 Market size by region (in physical and monetary volume)

The world's largest food group Nestlé raised its 2020 organic sales growth forecast to

around 3% after beating third quarter expectations with 4.9% growth, driven by strong

demand for pet food, coffee and health products.

Demand for food and beverages for home consumption remained strong during

lockdowns, while sales of products consumed outside the home and takeaway - around

15% of Nestlé's sales - fell 26.4% in the third quarter, the maker of Nescafé and

KitKat chocolates said in a statement.

2.2.4 Product life cycle

The aim is to enter the market using sales strategies which drive purchases through a

current sport, where the importance of consuming it and the achievements that have

been achieved in the Olympic Games by athletes who consume it are demonstrated.

We have managed to analyze that the product has obtained a reception from the

public, managing to position itself in the market, identifying the four stages of the

product life cycle; proven that it has not disappeared at any time and is currently

recognized by several consumers.

2.2.5 Competitor analysis

The name “Milo” refers to the Greek athlete Milón of Crotona, who according to

legend was a legendary force, which is why Milo is a product that is aimed at children

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and young athletes associated with the recovery of energy and nutrients. This drink

seeks to reach consumers' homes so that it can be consumed for breakfast. Its nutrients

make it good for the diet of any person who consumes it and helps raise their defenses

and at the same time gives them happiness in their lives. .

Direct competitors:

Our competitors who also offer the market we are targeting a product with the same
characteristics as our product, whether better or worse, to gain customers with the
same need or desire in our target.

● Cocoa Winter's (Nutresa)

● Chocolisto (Nutresa)
● Nesquik (Nestle)

Indirect competitors:

As indirect competitors, they intervene collaterally in a market approach that we serve

with our product, seeking to satisfy the needs or desires of the target audience through
some perfect substitute product. There is no doubt, it is difficult for us to detect,
determine and analyze, sometimes it will not even be possible to do it as we would
like.

- Chocolyne (Nutresa)

- Crown (nutresa

- Sun (House Luker)

2.2.6 Market share of major brands

Nestlé has a certain advantage for being a prestigious brand, recognized with strength

and development in the market.

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 2.2.7 Product segmentation in the market

At the level of size, in Peru there are players larger than us, such as Alicorp and

Gloria, with basic products from the family basket, such as oils, pasta or milk, in each

case.

However, we have important leaders in nutritional drinks like Milo, with 90% market

share; coffee, with almost 70% of the market; or in chocolate, with more than 50%. In

panettones, where there is a great fragmentation of brands, we reached 40%, with a

growth of seven participation points. In ice cream we are the absolute leaders with

80%. As a company, we are in good health.

We are also participating in healthier segments, such as functional cookies with the

Fitness brand. In this category we have 5%, where there are almost five 'players'

competing for large volumes. On the milk side, for example, we are the second player,

but distant. Gloria is the leader. It is an important category in which we have 15% of

the market and with which we are working on some developments.

2.3 CHARACTERISTICS OF THE MARKETING MIX

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Analyzes the characteristics of the companies that currently operate in the market and

of the company itself.

2.3.1 Product characteristics

With the natural goodness of malt, milk and cocoa, MILO is a nutritious supplement

that has been present in Peru for almost 60 years. We are still there providing energy

and nutrients to feed the children. Obtaining our product includes our body depends on

the presence of small amounts of many nutrients, these nutrients are necessary and

include B complex vitamins, Iron, Magnesium and Calcium, the deficiency of any of

these nutrients can affect the energy level of your body. Milo, in addition to the

benefits of milk malt extract and cocoa, contains Actigen E, Nestlé's exclusive

combination of nutrients that contributes to achieving the optimal release of the energy

your body needs from carbohydrates and fats.

2.3.2 Distribution characteristics

Nestlé products reach consumers through a distribution channel called multiple

distribution channels that are classified as producer, wholesaler, retailer and final

consumer. Wholesalers are distributors and they acquire ownership of the products

they distribute based on the services they provide. They are classified as full-service

and limited-service wholesalers. The producer or manufacturer is the one that

manufactures products for our consumption. Retailers are those merchants whose

activities are related to the sale of goods and services to final consumers, normally

they are owners of the establishment they have.

2.3.3 Advertising and Promotion Features

Marketing and advertising actions are some of the best campaigns that can be found,

since the level of market study, audience segmentation and knowing the taste of your

consumers facilitate the process when generating effective marketing plans, following

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the company philosophy by first listening to the customer to satisfy the need in an

efficient way by improving products or communication channels to offer the range of

its food and beverage lines. One of the aspects of marketing that has given very good

results has been gastronomic marketing, offering on its different web pages typical

recipe books of the country and region where they are located, sponsorship of

gastronomic events, television programs focused on good nutrition and in each one of

them encouraging and offering Nestlé products in a way that is closer to the public,

without being invasive advertising, that is, without selling them directly but educating

them with information about what Nestlé products offer, which is undoubtedly what

consumers are looking for. .

2.3.4 Price features

At Nestlé we can find different products with different prices and different sizes in

different presentations. In Milo Nestlé products we find everything from 6 soles to

more depending on the sizes, amount of content and packaging material.

CHAPTER III

MARKETING OBJECTIVES

Nestlé's objective is to position itself as a world leader in Nutrition, Health and Well-

being, in addition to being a reliable company for all its stakeholders and a benchmark

for financial performance in its sector.

Nestlé's roadmap aims to align its people behind a coherent set of strategic priorities

that accelerate the achievement of its objectives. These goals require long-term

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 inspiration from its collaborators, which allows them to build the future and short-term

business actions.

Nestlé works to achieve leadership and trust by meeting the expectations of

consumers, shareholders, the communities in which it operates and society as a whole.

For this reason, the company is investing to guarantee the financial and environmental

sustainability of its actions and operations in the long term, specifically in: Capacity,

technologies, skills, people, brands, research and development.

Its objective is to satisfy current needs without compromising the capacity of future

generations, in order to meet their requirements in order to ensure profitable growth

year after year and in the long term.

Halve the company's emissions by 2030 and achieve net zero emissions by 2050.

3.1 Sales volume

● Organic growth of 3.5%, with real internal growth (RIG) of 2.9% and pricing of 0.6%.

Growth was supported by strong development in the United States and Purina PetCare

globally.

● Total reported sales reflected an increase of 1.2% to reach 92.6 billion Swiss francs

(91.4 billion Swiss francs). Net acquisitions had a negative impact of 0.8% and sales

were reduced by 1.5% due to the exchange rate.

● A year before Nestlé's medium-term plan, the company had already reached the

profitability margin planned for 2023

3.2 Market participation.

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Milo “Ready to drink” (RTD) is born as what your children require to carry out their

physical activities during the day. On the other hand, the lunchbox beverage category

offered a great opportunity, as it shows constant growth year after year.

The results are promising. Milo “Ready to drink” (RTD) has already reached 20%

market share in the 4th month and is known by 8 out of 10 mothers, the brand's main

shopper. Currently, the product represents approximately 15% of Milo's sales.

Milo has been in the Peruvian market for 70 years and is the leader in its

category with an 80% market share. ”The expectation is to change the dynamics of the

market. For this reason, Nestlé is betting on the development of a new line of products

in order to achieve market leadership in the short term."

3.3 Customer loyalty

Customer loyalty aims to achieve, through various marketing and sales strategies and

techniques, that the consumer who has previously purchased one of our products

continues buying from us and becomes a customer.

a regular customer.

CHAPTER IV

MARKETING STRATEGIES

4.1 Product portfolio

Variety, presentation and size of Milo products.

Presentation Size Combinations Flavors

Small box. Malt-based chocolate milk, 6

40% less 180ml 3 vitamins, 3 minerals and 40% less
sugar sugar
box 6 pack

Doypack 50 G
Doypack 200 G Malt-based chocolate milk, 6

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 Milo Nutrifit Doypack 300 G 3 vitamins, 3 minerals and 50% less
Doypack 500 G sugar
Doypack 750 G

Doypack 50 G
Doypack 200 G
Doypack 300 G Malt-based chocolate milk, 6
Milo Modifier Doypack 500 G 3 vitamins, 3 minerals
Doypack 750 G
Doypack 1100 G
Doypack 1500 G
Doypack 1600 G

200 G can Malt-based chocolate milk, 6

Milo Lata 400 G can 3 vitamins, 3 minerals
Can 1000 G

Note: This table shows the combinations of Milo products that the Nestlé company

has.

4.2 Market Segmentation

Geographic : At the National level of Peru

Demographic : Profile of the consumer segment of ages between 20 - 50

years, men and women, of socioeconomic levels A, B and C, at a national level

with average monthly income and expenses greater than S/. 750.00.

Psychographic : Quite frequent and/or occasional consumers, who

want to consume healthy, organic products, concerned about a healthy diet, as

well as consumers who prioritize the quality and price of the product,

understanding the cost/benefit relationship, empathetic with caring for the

environment. , with social welfare.

Behavioral : They purchase the product in a familiar presentation in 15

days, individual products 5 times a week, and due to pandemic situations less

than 2 times a week, moods influence the purchases, they generally purchase

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 the products in supermarkets, minimarkets and convenience stores. the

convenience of consumers, the motivations to purchase the products are also

promotions, innovations in presentation, discounts, or sponsorships to different

events.

4.3 Positioning of the product and/or service

We call positioning the image that our brand, product, service or company

occupies in the consumer's mind. This positioning is built from the perception

that the consumer has of our brand individually and with respect to the

competition.

4.4 Functional strategy

(Tactical Marketing of the 4Ps of Marketing MIX))

a. PRODUCT

● Characteristics: The name Milo is a reference to the Greek athlete Milo of

Croton , who according to legend possessed legendary strength. For this reason,

the product is marketed in a green can with images of athletes, associated with

the recovery of energy and nutrients. Milo differs from Nesquik and Carlos V ,

Nestlé's other soluble cocoa brands, in that it has malt . This drink provides the

body with fat, cholesterol , carbohydrates , dietary fiber, sugar , proteins ,

vitamin A , vitamin C , calcium , iron , vitamin D , riboflavin , niacin , vitamin

B6 , vitamin B12 and phosphorus .

● Benefits for the consumer : Milo provides you with vitamins and minerals that

complement your breakfasts to start the day with energy. With the natural

goodness of malt, milk and cocoa, MILO is a nutritious supplement that has

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 been present in Peru for almost 60 years. We are still there providing energy and

nutrients to feed the children, champions of the nation of tomorrow.

● Brand : Milo is a brand of Nestlé beverages that is consumed from all ages from

3 years to the age of 50 years and over and is soluble in milk . It was created by

the Australian Thomas Mayne in 1934 and is distributed in Asia , Oceania and

Latin America .

● Packaging: In the packaging of milo we will find different presentations that can be

in a box that comes with six units, to give children and young people the

opportunity to take the drink that they regularly consume at home to school.

others like in cans and in small 18 gram bags.

● Quality: Educate and inspire responsible and aware consumers that healthy

lifestyle habits are achieved through proper portion management complemented

by good physical activity. The company offers information and nutrition advice

on all its labels to give consumers all the advice they need to lead a healthy life .

High quality with best price Nestle Milo canned sweet for different ages.

● Services and guarantee: Milo is a very loved and recognized brand globally, it

has excellent performance and in the last two years it has been growing steadily.

Currently it reaches a large number of homes in different countries, guaranteeing

the performance of the brand and this is proven in sales and with a nutritious and

energy-filled breakfast that the company has had with the products closest to

consumers.

b. POINT OF SALE
● Product distribution channels: distribution channel called multiple distribution

channels that is classified as producer, wholesaler, retailer and final consumer.

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 Wholesalers are distributors and they acquire ownership of the products they

distribute based on the services they provide. They are classified as full-service

and limited-service wholesalers. The producer or manufacturer is the one that

manufactures products for our consumption. Retailers are those merchants

whose activities are related to the sale of goods and services to final consumers,

normally they are owners of the establishment they have.

● Analysis of the Point of Sale : The marketing strategy for Milo has been very

successful, since lovers of the brand have followed the different categories in

which Nestlé has been innovating, products such as cookies, cereals and nuggets

are very successful. among consumers who have always preferred the brand for

its malt, cocoa and milk flavor.

● Logistics: Nestlé plays a fundamental role in ensuring that quality products reach

our customers and consumers. To achieve this, we collaborate with commercial

teams to forecast demand, and also with our suppliers guaranteeing the use of

responsibly sourced raw materials, which create value in society. In alignment

with operations, we balance inventory levels to establish the correct supply of

our products.

● Transportation : Once produced, the supply chain is responsible for safely storing

and transporting our products to meet the needs of our customers and consumers

in full and on time.

c. PROMOTION

● Advertising: As mentioned in the segmentation strategy, the aim is to reach an

end audience of men and women between 23 and 50 years old of SES A, B and C,

considered as frequent or occasional consumers of organic products, also

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 concerned about their health and appearance. The final consumer profile

prioritizes quality and good taste, and is interested in the impact of the

environment and social responsibility actions.

● Sponsorships for sports competitions, as well as “Milo announces with great pride

that he has become the first official sponsor of the minor men's and women's

divisions of FBC Melgar. “We are proud to join León del Sur,” said Germán

Rodríguez, Marketing Manager of MILO.

● Sales promotion: Given that it is a new product, and among its attributes the

flavor and presentation stand out, what is sought is to make the new chocolate

known to as many people as possible and, above all, so that they can verify its

benefits. With this objective, it is necessary to carry out product sampling actions

and generate content to go viral on social networks. These actions will seek to

communicate three attributes: flavor, healthy nutrition and social impact. Four

large groups of squares have also been identified nationwide, which the target

audience frequents.

In all places, presentations of 20 gram tablets will be given away with a flyer that

explains the concept of the product and the social actions that will benefit cocoa

producers. These promotions will be carried out based on 10,000 samples in total.

In the restaurants, the space will be used to place a banner that shows the healthy

properties and how consuming generates social well-being. Finally, the captured

audience will be able to reproduce word-of-mouth advertising through

recommendations and social networks.

● Media: It is related to online media, broadcast and print.

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● Personal sales and sales team: They are a tool of the communication strategy. ... It

allows the message to be adapted to the specific characteristics of the client and

the sales situation. It allows you to check if the client understands what you want

to convey and offer the products most appropriate to their needs and desires.

● Direct marketing (Internet advertising, social networks): It is a form of marketing

communication that uses one or more media to communicate directly with a target

audience and obtain a measurable response from them.

● Sale promotion:

According to Kotler and Keller (2016), there are factors that allow us to identify

consumers' sensitivity towards price, among them it is considered to evaluate:

● (i) quality, prestige and exclusivity of the product.

● (ii) knowledge about substitute products.

● (iii) price of the product based on the consumer's income levels.

The new line of organic chocolates will have superior quality, which will attract

consumers to be willing to pay a higher amount. However, as there is a wide

variety of competing proposals available to the consumer, it is easy to compare

prices at points of sale and the investment made based on the consumer's income

is not high, so in general terms This is a price-sensitive category. On the other

hand, within the category it will be sought that the brand, by having a proposal

with greater perceived value and differentiating components, then has less

sensitivity to price than the competition.

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d. PRICE

● Price setting: To support prices, the market study carried out in Chiclayo was used

as a reference in which the consumer showed willingness to pay S/ 5.00 for a 50

gram bar of organic chocolate. A conversion factor is added to this reference price

to adjust the price of Lima, considering the food income of both cities in the NSE

sectors A, B and C, which gave us a reference price for Lima of S/ 5.50 .

However, it is expected that this value can be increased because it is a proposal

that includes social responsibility actions, a supporting brand such as Nestlé and

greater marketing efforts. In this way, the price will increase to S/ 6.90, which is

related to the prices of the competition, and is higher than the prices of premium

but non-organic chocolates and lower than some organic chocolates, this thanks to

the fact that it is considered a lower percentage of cocoa in the preparation.

In order to better visualize the pricing strategy, two price positioning matrices

have been developed that consider the variables Price and Quality. The price is

represented by the price per gram so that all brands can be compared in the same

unit of measurement, while quality will be measured according to the percentage

of cocoa used in the chocolate. The matrix includes premium chocolate

competitors, but not organic brands only. In both matrices, you can see the

location of the new brand compared to its competition.

● Comparison with the competition: This chocolate drink is one of the leading

brands of the Compañía Nacional de Chocolates (today Grupo Nutresa),

Compañía Nacional de Chocolates DCR SA, Jet chocolate, the first chocolate

candy manufactured industrially in the country, and along with She created the

first album with her sticker collections .

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 ● Discounts: In the milo product every discount on any Nestlé product has a certain

unlimited time.

● Financing: Regarding the financial perspective, this is the one that collects and

describes all the measurable results in terms of the finances and economics of the

organization. For this purpose, already known indicators are used, such as: return

on investment, operating profit, return on assets, costs and expenses over the level

of sales, etc. In this way, it will be possible to measure whether the decisions

made and the strategy are delivering the expected results to the shareholder and

investor. For this perspective, four OCPs were established and shown in the TCB.

Conclusions

Nestlé has managed to position itself in the market as a company that is dedicated to

producing high-quality foods, and has created an entry barrier for other competitors by

having cost efficiencies, efficient production processes and flexible distribution

channels.

Nestlé established new strategies seeking greater customer satisfaction, managing to

position its products in a privileged place.

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 Through marketing, companies have been able to look at the needs of customers that

have not been satisfied in order to explore new markets, generating greater profits for

the company.

A great factor of high importance in the world is the positioning of a brand that allows

customers to be guaranteed about the quality and benefits of the products.

In 2020 its e-commerce sales represented 8.5% of sales and grew by 18.5%; With this

data, Nestlé is at the forefront of the food and beverage industry.

Allows people to live healthier and happier lives with the best manufactured products.

Assume commitments that ensure the quality of life for everyone.

recommendations

❖ Due to the favorable results previously presented, it is recommended that the Nestlé

company implement this plan to launch a line of organic chocolates as part of its

portfolio.

❖ Coordination and commitment would be required on the part of product management

and chocolate category leadership for the analysis, development, monitoring and

fulfillment of this strategic plan.

❖ Make investments in research, innovation and development to determine new market

opportunities, as well as the promotion and support for the creation of new products

and brands that allow generating liquidity and strengthening leadership as a

corporation.

❖ Continue innovating in sizes and presentations with different ingredients to satisfy the

dynamic market and reach more consumers and consumption moments

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 ❖ Increase sales channels to have greater national coverage; it is suggested to enter the

traditional channel in the long term, taking advantage of Nestlé's good practices in the

mass channel.

❖ Maintain differentiation in terms of quality and price with respect to the iconic brands of

the Nestlé portfolio, such as Sublime, Triángulo and Princesa. This will allow you to

communicate a clearer message and be able to better segment the market.

❖ It is recommended that, in the short term, regular cocoa not be replaced by organic

cocoa in the other brands of Nestlé's portfolio given that it is aimed at a consumer who

does not necessarily value the superior attributes of this input but would generate

incremental expenses for Nestle. In the medium term, according to the evolution of

trends, it is advisable to evaluate the use of organic chocolate in other brands in the

portfolio.

Annexes

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 Bibliography

❖ Strategic Marketing Plan for the Launch of the Organic Chocolate Line for Nestlé

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❖ D'Alessio, F. (2008). The strategic process: a management approach. Mexico City,

Mexico: Pearson Education.

❖ D'Alessio, F. (2012). The strategic process. A management approach. Lima: Pearson

Education

❖ https://www.nestle.com/brands

❖ https://danimerscientific.com/

❖ https://archivo.gestion.pe/empresas/tres-empresas-tienen-capturado-mas-90-mercado-

productos-lacteos-peru-2191644

❖ https://elcomercio.pe/economia/dia-1/nestle-peru-analisis

❖ general-manager-leaving-position-news-536438-news/?ref=ecr

❖ https://prezi.com/lvkiq1lph1cm/modelo-de-porter-nestle/?

frame=57662dbaccaa25122decf85316c89a805a34d6d5

❖ Velázquez, A. (2019). Nestlé reveals its global Marketing strategy: retrieved from

https://expansion.mx/emprendedores/2015/08/19/nestle-revela-su-estrategia-de-

marketing-global

❖ FBC MELGAR. (2020, 09 30). Last News. MILO JOINS THE REDINEGRA

FAMILY. Retrieved 05, 2021, from http://fbcmelgar.com.pe/noticia/milo-se-suma-a-

la-familia-rojinegra

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Evaluation rubric No. 1: Project: 100%
Below is the assessment scale, based on which the Final Evaluation will be evaluated, where the maximum scale per category is equivalent to 5 points and the
minimum is 0.

*If the rubric adds up to more or less than 20 points, use a simple rule of 3 to obtain the grade on a vigesimal scale.

Rating scale Outstanding Enough In progress In start

(5 points) (4 points) (2 points) (0 points)
Criteria
Optimally elaborates the company Optimally prepares the market It elaborates the company's It does not develop the
Company Philosophy philosophy and situational analysis, analysis, considering sources, data philosophy and situational company philosophy or
• Vision considering secondary sources, data and bibliographical citations. analysis with inaccuracies; it does situational analysis well.
• Mission and bibliographical citations. not consider sources, data or
• Values bibliographical citations.
CHAPTER I
Situational analysis
● History of the company

● Product Description (Matrix – Attributes

and Benefits)
● Analysis of the PESTA Macro
Environment (Political, Economic, Social,
Technological and Environmental)
● Analysis of the Micro Environment
(Porter's Five Forces)
● Sales evolution in the last 5 years.
CHAPTER II Optimally prepares the market Adequately prepares the market Prepares the market analysis with Inadequately prepares the
analysis, considering sources, data analysis, considering sources, data inaccuracies, considering sources, market analysis, does not
STRATEGIC MARKETING (MARKET and bibliographical citations. and bibliographical citations. data and bibliographical citations. consider sources, data or
RESEARCH) bibliographic citations
CONSUMER ANALYSIS (PRIMARY
INFORMATION)

● Consumer profile

● Target Audience Segmentation

● Wants and needs

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● Usage habits and attitudes

● Purchase frequency

● Roles in the Purchase (Initiator,

Influencer, Decider, User)

MARKET

● Analysis and evaluation of market

evolution according to the economic
sector
● Current market trend

● Market size by region (in physical and

monetary volume)
● Product life cycle

● Competitor analysis

● Market share of major brands

● Product and/or service segmentation.

III Marketing Objectives Optimally set marketing objectives. Properly state marketing State marketing objectives with Does not set marketing
objectives inaccuracies objectives

IV Marketing Strategies Optimally proposes marketing Properly proposes marketing It presents marketing strategies No Poses and the tactical
● Product portfolio strategies and tactical marketing of the strategies and tactical marketing and tactical marketing of the 4ps marketing of the 4ps.
4ps. of the 4ps. with inaccuracies.
● Market Segmentation

● Product and/or service positioning

Tactical Marketing of the 4Ps

(Marketing MIX))

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