Study on the failure of Nestle

Milo and its Re-launch Strategy

Presented By:
Akshaydeep
Janis King
Madhu Sasmondal
Sathi Paul
Sakshi Gupta
Introduction of Milo
Milo was originally developed by Thomas Mayne in
Sydney, Australia in 1934
Milo drink contains extra nutrient iron, vitamins C and
B1
Milo contains calcium and when added to milk it
boosts the calcium content of milk by 70%,this helps
for stronger bones
In 1996, Nestle launched MILO-Chocolate energy
food drink in South India
USP: Ready-to-drink Milk based energy health drink
(in tetra packs of 250 ml. and glass bottles of 500 ml.)

Product Layer
Potential product
( product
portfolio)
Augmented(
Free cups,
Small sachet
free)
Tangible
(Good
quality,
Healthy,
packaging)
core
(Health
drink)
Competitive Analysis





Horlicks
(GlaxoSmithKline)
Bournvita
(cadbury)
Complan
(Heinz)
Boost
(GlaxoSmithKline)

Milo
(Nestle)
Product
Portfolio
Junior Horlicks
Junior Horlicks 4-5-6
with growth boosters
Mothers Horlicks
Horlicks Lite
Bournvita
Bournvita Lil
champs
Complan with
Memory
Chargers
Complan
(Complete
Planned)
Boost MILO Strong
MILO Rich
Positioning A nutritional supplement
that positively
enhances physical and
mental growth of kids
Help kids to grow
faster and enhances
goodness of
milk(Calcium)
Help kids to
grow taller at
twice the rate
Promoted as being
the only HFD proven
to increase stamina by
three times
Goodness of malted
barley and rich
carbohydrates
energy & taste
Target
group
Kids aged 2-3, 4-6,5-15
years+ Mothers + Adults
Children aged2-5, 5-
15 years
Children aged
5-15 years
Children and adults
looking for an energy
drink
Kids aging from 5-
19

Tagline Taller, Stronger and
Sharper
Proven for making kids
taller, stronger and
sharper
Tayyari jeet ki
(preparing to win)

Extra growing
power with
Complan
Boost is the secret of
winning energy
Bring out the
champion in you
Share 51% 16.2% 13.9% 12% N/A
BCG Matrix
Star
Maggi noodles
Ceralac
Question mark
Maggie soup
Nestle Butter
Everyday milk
powder
Cow
KitKat
Maggi Sauce

Dog
Nestle Dahi
Munch
Nestea

MILO
Market share
M
a
r
k
e
t

G
r
o
w
t
h

H
L
H L
PLC Curve For Milo
MILO
In 1996
In 2009
In 2010, they relaunch Milo for the Common Wealth Games with sportsperson
2005
Customer based Brand Equity
Pyramid
http://www.thehindubusinessline.com/todays-paper/tp-marketing/weak-sales-of-energy-drink-milo-prompt-nestle-to-
drop-brand/article1055087.ece
Perception mapping of different
Health Drink
Taste Good
Exciting
(Flavors)
Boring
Taste Bad
Reasons why MILO failed in India
Intense completion by other beverages
like Bournvita, Horlicks and Complan
Milo was discontinued due to dropping
sales in spite of heavy discounts and
aggressive sales push
The distribution strategy and the supply
chain used by Nestle is not so wide
Promotion campaigns were not attractive



Recommendation
When Milo was launched it acquired a large
market share therefore it should have
continued with its strong marketing campaign
More investment in the product could
increase the sales
Bundling the product with the other best
selling products of Nestle
Use networking sites to promote their brand
Videos