Communication Brief Stage 1: Milo Milk Powder PDF

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Milo Performance Powder Market Communication Communication Brief - Stage 1 Situational Analysis 1.0 Key Fact/Background/Overview *Green = Kendall, Yellow = Devansh The iconic Australian-born milk powder, Milo, was introduced in 1934 by Nestle chemical engineer Thomas Mayne who envisioned a product of immense mineral replenishment. Since entering the international market in 1996, Milo has been energising lovers of the drink in more than 40 countries, hence the ‘leading chocolate malt beverage worldwide’ title. Their marketing strategy is built on health ideals which further encourages parents to purchase Milo milk powder as the nutritious snacking alternative for the family. However, Milo isn’t the healthier option amongst its evolving competitors as the product is dependent on the ‘energizer’ concept to justify its high-sugar content. Thus, Milo should investigate their marketing opportunities in the realm of the health-conscious world; the provision of a nutritionally-guaranteed version (e.g. low calorie, no added sugar, gluten free, rich in particular vitamins, etc) would appeal to its targeted audience. Also, Milo should be cautious of the threats posed by its competitors, Ovaltine and Nesquik, along with counterfeit or low quality replica brands. 2.0 Problem/Opportunity/Prospect Need =Sandi In a marketplace becoming increasingly health-conscious, consumers have criticised Milo for “health- washing” its high sugar content since a standard serving consists of 46% sugar, thus the additional accusation of manipulative health promotion tactics. 2018 saw Nestle removed the 4.5 health rating for Milo, further signifying a mature industry. Facing scrutiny over health negligence in an already oversaturated market of chochealth drinks, Milo is forced to seek other viable alternatives for future growth alongside its competitors (i.e. Ovaltine, Nesquik). We aim to be recognised as the brand of milk powder/malt energy drinks that consumers will firstly consider, however the accessibility to nutritional information and alternatives heightens this difficulty. Therefore, it’s imperative that Milo develops a product with low-sugar content and high-nutritional value in order to compete amongst its competitors (e.g. Nesquik’s No Added Sugar Powder).

Client Key Strategic Decisions 3.0 Marketing Objectives (excluded from presentation) = Kendall Milo will run a 3 month-long campaign from November 2020 to January 2021, aiming to achieve the following objectives: increase our annual sales profit by $1,000,000, increase Milo market share in Australia by 10%, increase our brand awareness throughout Australia; particularly brand legitimacy in the health market. The primary marketing objective is to coordinate the development of a new marketing campaign with an advertising agency, sharing the goal of increasing Milo’s brand awareness and legitimacy in the health-food industry. This will in turn increase our sales and improve market share. 4.0 Communication Objectives/Desired Attitude or Behavioural Change = Devansh The targeted customer for Milo, and its parent company Nestle, has always been families for the coinciding appeal it has with parents regarding nutritional aspects, and children regarding taste. The increase of promotions and advertisements should thus increase the brand awareness for this product, and inherently this demographic. Moreover, Milo needs a new segment of customers to be interested in their product; the brand shall increase their advertisement varieties and focus more on increasing their brand awareness to the people who know nothing about the brand. During our campaign, we will have our modified Milo low-sugar samples alongside the standard powder given to the general public. This is in hopes the taste remains consistent with the iconic original version, whilst reaping greater nutritional value, thus making samplers potential loyal consumers of our modified product. If successful, this would see brand attitude toward Milo be taken more seriously in the health-food industry whilst nutritional consumption itself is evaluated - or at least questioned - by those who already consumed Milo powder to begin with. 5.0 Corporate and/or Brand Positioning= Drishti Milo will be priced slightly higher than most brands in the market, similar to its current situation, so as to distinguish itself as a brand of quality products. As Ovaltine and Nesquik are similarly priced, it will be positioned alongside these competitors in terms of pricing.

It’s evident that although Milo is the leading malt-energy drink brand in Australia, its health identity is wearing thin as evolving competitors provide greater nutritional value. Milo aims to increase its brand popularity amongst the health market by uplifting its high quality and health-driven image. Hence, Milo’s positioning statement will be: “to active children wanting a quick and replenishing drink, Milo is the brand that will satisfy your needs and provide nutritional value when on the go.”

6.0 Brand Character/Personality = Sandi Milo portrays itself as an energetic, active lifestyle-oriented brand held close to the heart of Australians. If Milo were to be a person, it would be an active kid constantly on the go and in need of nutritional value to sustain this energy. As described, the brand campaign focuses on energising those - particularly children - with active lifestyles requiring such replenishments. To all the parents questioning what snack can satisfy their child’s needs and taste buds, Milo is an iconic and reliable product of the highest quality at an affordable price. Milo’s design has become another iconic symbol within the product. The bright green color with some form of sporting is often in their packaging, thus has become their own identity in the market. Most Australians who see this design typically know what product it is. For their taste, Milo Milk Powder has its own unique taste that is recognizable solely by this.

7.0 Target Audience Profile/Segment(s)= Drishti This campaign will focus on children aged between 3 - 13 years old. These children will be classified as active or ‘sports-oriented’ in their lifestyles, thus the desire for energy supplements. We are also targeting generally health-conscious customers aged between 21 - 35 years old that are enticed by the idea of a low-sugar version of Milo. 8.0 Consumer Insight/Sweet Spot= Drishti Coming from the perspective of a parent within an active family with children aged between 3-13, I would comfort in the clarity of my child’s snack providing nutritional value. The same would apply for healthconscious adults aged between 21 - 35 open to healthier alternatives of original products, though this would instead apply to themselves. As such, both parties value convenience, nutrition and sustenance whether that be for themselves or their children. They seek for snacks that are fulfilling and tasty, with beneficial ingredients outweighing those deemed harmful in each serving. As reviewed online, these targeted groups fear the original Milo Milk Powder may provide little to no nutritional value and instead excuse the copious amounts of sugar for the appeal of its taste with children. 9.0 Promise/Takeaway/Major Proposition/Key Benefit Claim = Kendall “Knowing that your child is getting the mineral replenishments they require in their busy day-to-day lifestyles is a comforting feeling as a parent. Let Milo be their next on-the-go treat because nothing tastes and feels as good as Milo.” This is our takeaway message to our target audience which conveys our solution, positioning and key benefit claim. When consumers think of an energising beverage purchase, they’ll recall Milo. And when they think of Milo, a sense of familiarity and assurance will put them at ease.

10.0 Support/Substantiation/Source of Authority and Credibility (excluded from presentation) Energy, quality and nutritional value are the main attributes that Milo promises to continue to deliver to its customers. With 86 years of experience, Milo has gained icon status and thereby the trust of many Australians, hence its leading title as a choc-malt energy beverage. 11.0 Creative Guidelines/Executional Elements/Mandatories = Devansh The product must be able to provide a Milk Powder version that replicates the iconic taste and nutritional value, whilst diminishing its preservatives and sugars that were in the original version. The product brand and logo should be displayed constantly, as it has been previously, on packaging and throughout advertisements to reinforce the brand recognition and recall for customers. A brief and catchy melody should help in this regard. 12.0 Mood/Tonality/Voice = Kendall The advertising tone should be endearing and encouraging toward the health adjustment that we promote. The familiar and bold Milo green should be accompanied by warm/bright colours as they allow the audience to perceive the product as a positive asset for consumers. Since the targeted audiences are aged between 3-13 and 21-35, a brief but catchy melody would allow for both brand recognition and brand recall. The voice used in these advertisements should be an upbeat personality speaking in an encouraging tone, thus shedding light on the benefits of the low-sugar version that’s advertised. This is a typically universal method since our target audiences vary in age and therefore appeal tactics 13.0 Deliverables = Kendall The essentials in advertising and IMC activities include our company logo, vibrant and energetic color scheme such as the familiar Milo green previously used on packaging, and a direct link to our company’s online interface. A disclaimer about Milo Milk Powder having minimal negative impact on the user's health must be inclusive in every IMC activity, and packaging to inform our audience and avoid product misunderstanding. The company slogan ‘Go and Go and Go with Milo’ should also be repeated in every audible promotion.  TVC: air daytime advertisements on popular Australian channels (channel 7, 9, 10 etc) between for 30 seconds between 4:00 PM - 5:00 PM  Supporting social media presence: Facebook and Twitter  Public transport billboard advertisements  1000 x freebie samples for pop-up stations around Australian capital cities 14.0 Budget = Sandi 1. Sales Percentage Method In Milo’s parent owner, Nestle’s, 2018 annual report, their group sales are up to 92 billion dollars, with real internal growth of 2.5%. Our campaign will be using television ads in Australia. The ads will cost around $30.000 in a high rating channel for 30-second ads. It means that the company can spend 0.0000326% of its group sales for advertising on television. 2. Objectives and Task Method This method is an appropriate method to be used for setting the campaign budget. The method considers its own company environment and requirements. This method can guide the company to develop its promotional budget by defining specific objectives; determining tasks that require completion and estimate the cost in performing them. For Milo, the target market is primarily for children aged between 3-13 and have prominent identities with sport. So, this company can allocate its budget for a sponsored sports event for children, thus this being the appropriate method if Milo wants to promote their product to children. All in all, we set $34 million as our advertising budget and $2 million as our sponsored sporting event budget. A total of $36 million....