Complement Products Of 2kg Milo Marketing Essay

Cuddles committedness to supplying quality merchandises to Malaysians day of the months back about 100 old ages ago. Nestle began in Malaysia in 1912 as the Anglo-Swiss Condensed Milk Company in Penang and subsequently, growing and enlargement made a move to Kuala Lumpur needfully in 1939.Since 1962, with its first mill in Petaling Jaya, Nestle Malaysia now manufactures its merchandises in 7 mills and operates from its caput office in Mutiara Damansara.A

The Company was publically listed on the KLSE ( now known as Bursa Malaysia Berhad ) on 13 December, 1989. Today, the Company employs more than 5000 employees, industries and markets more than 300 Halal merchandises in Malaysia. Its trade name name such has MILOA® , NESCAFeA® , MAGGIA® , NESPRAYA®A and KIT KATA®A have become sure family names and enjoyed for coevalss.

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Nestle Malaysia was the first to voluntarily bespeak for Halal Certification of all its nutrient merchandises when it was foremost introduced in 1996. This does non connote that Nestle merchandises in Malaysia were non halal prior to that.The certified Halal position for all Nestle Malaysia merchandises provides confidence that Nestle merchandises are manufactured, imported and distributed under the strictest hygienic and healthful status in conformity to the Islamic religion.

As portion of journey towards good health, Nestle, through its vision of Nourishing Malaysia, continues to put in R & A ; D, introduce further and restitute bing merchandises to guarantee they are more alimentary and healthier by cut downing salt, sugar, and fats content to complement the Government ‘s attempts via the 10-Year National Plan of Action for Nutrition to make a healthier Malayan society.

Nestle reaches out to the community everyday and in multitude ways. From assisting individual female parents to underprivileged kids, nurturing budding jocks to mentoring programmes, and conveying nutrition consciousness through assorted activities – Nestle is steadfastly committed to its promise of Nourishing Malaysia. Today, as it continues turning with the state, Nestle actively seeks avenues in which it can advance healthy life styles and health in Malaysia as portion of its promise of Good Food, Good Life.

1.2Product trade name line

Nestle Company has introduced many types of merchandises into the market with different trade names. The merchandises include junior nutrients, milk, breakfast cereals, hot cereals, cream pitchers, drinks, java, culinary merchandises, chilled dairy, ice-cream, confectionary and cocoa, wellness scientific discipline and public presentation nutrition.

The junior nutrient is known as Cerelac. The milk merchandises are Everyday, Lactogen 3, Mom & A ; Me, Nan Grow 3, Nan Ha 3, Nan Kid 4, Nespray Cergas, Nespray Full Cream, Nestle Low Fat Milk and Omega Plus Adult Milk. The types of breakfast cereals include Cookie Crisp, Corn Flakes, Fitnesse, Honey Stars, Koko Krunch, Koko Krunch Duo, Milo Cereals and Multi Grain Cheerios. The hot cereals are Nestum Mixed Cereal and Nesvita 3 in 1 Cereal Drinks. The cream pitcher is known as Coffee-Mate.

The drinks are Milo with different sorts of wadding, Milo Sejuk and Nestea. The trade name name of java is Nescafe. Maggi 2-Minute Noodles, Maggi culinary sauces, Maggi flavour solutions, Maggi Mi Goreng, Maggi recipe solution and Maggi Soakable are the culinary merchandises of Nestle Company. While the chilled dairy includes Bliss, Fat Free Yogurt, Natural Set Yogurt and Smooth and Fruity Yogurt.

The wellness scientific discipline merchandises are Nutren Fibre, Nutren Junior, Nutren Optimum, Nutren Untuk Diabetik, Peptamen and Peptamen Junior. The public presentation nutrition merchandises are Powerbar Beverage System, Powerbar Gel, Powerbar Performance Bar, Powerbar ProteinPlus and Powerbar Triple Threat.

1.3Product debut

A bundle of 2 Kg Milo is a milk drink with cocoa and malt. Milo is really popular in Philippines and Malaysia, where the trade name name issynonymous with cocoa flavoured drinks, Malaysians were said to be the universe ‘s largest consumers of Milo. This is becauseMilo was one time used as a alimentary addendum when it was foremost introduced in thecountry, and has therefore gained a repute as a must-have drink for the senior andthe younger coevalss.

Milo manufactured in Malaysia is made to fade out wellin hot H2O to bring forth a smooth hot cocoa drink, or with ice added for a colddrink. A bundle of 2 Kg Milo in Malaysia is served in java store and mamak stables offering different versions such as “ Milo Dinosaur ” , a cup of Milo with an excess spoonful of powdered unrevealed Milo added to it, “ Milo Godzilla ” , a cup of Milo with ice pick or topped with whipped pick and the combination of Milo with Nescafe powdered java called “ Neslo ” . Besides, a bundle of 2 Kg Milo can devour in many others manner. It can added to hot or cold milk to give it a malt cocoa spirit and excess texture. When combined with cold milk, it retains the farinaceous texture of itsraw province. Milo can be stirred into steamed milk or hot H2O to make somethingsimilar to hot cocoa or chocolate. Sugar can be added to the Milo drink, butmany people enjoy it without the add-on of sweetenings, appreciating it for its elusive cocoa spirit. Another popular usage is to scatter it on ice pick, especiallyvanilla ice pick. Furthermore, Milo can besides be sprinkled on breakfast cereals.

1.4A bundle of 2Kg Milo as a normal goods

A bundle of 2 Kg Milo is categorized as a normal good because as single receives more income, they tend to increases their purchases on this merchandise. As income rises, consumers shift to buy their initial preferred trade name which is normal good and diminish their demand for the inferior good. The income of each consumer will impact the demand of 2 Kg Milo. When the income of consumersincreases, the buying power of consumer will increase every bit good and therefore they will purchase more units of the Milo drink. As a consequence, its demand will increase. This indicates that the income of consumers influences the demand of Milo drink and determines that Milo 2kg battalion is normal good.

1.5.1Complement merchandises of 2Kg Milo

Complement goods are the goods that must be used together or at the same time. One of the complement merchandises of Milo is sweetened beverage cream pitcher. It is a creamy and tasty milk merchandise prepared from dairy cow ‘s milk, refined sugar, milk fat and vegetable oil.A A It is filled with vitamins A, D, and B1 and is ideal to utilize in doing drinks and nutrients to heighten the gustatory sensation and smoothness. Peoples normally add some sweetened drink cream pitcher into Milo drink and it makes the Milo tastes sweet and enhances the olfactory property of Milo. In term of complement goods, an addition in the monetary value of one good will do a lessening in the demand for the other good. Therefore, if the monetary value of Milo additions, the demand for sugared drink cream pitcher will diminish or frailty versa.

Another complement merchandise of Milo is cream cracker. A pick cracker is a level, dry, crunchy biscuit and is light brown in coloring material normally square savory biscuit. They are made from wheat flour and barm. Most of the people dip the pick cracker into the Milo drink before seting it into their oral cavities. Since it is complement good of Milo, the addition or lessening of monetary value of Milo will has impact on the demand of pick cracker. So, if the monetary value of Milo lessenings, the demand of pick cracker will increase.

1.5.2 Utility merchandises of 2Kg Milo

A bundle of 2 Kg Milo has its replacement merchandises or rivals. The most celebrated replacement merchandises of Milo drinks are Vico and Ovaltine. Harmonizing to the jurisprudence of demand, when the monetary value of a merchandise is higher than the replacements, consumer will purchase more units of replacements. However, Milo which has higher monetary value than its replacements, Vico and Ovaltine, really has better gross revenues than them. This is surprising because it is non following the jurisprudence of demand. This clearly shows how much attempt Milo ‘s company has put in to construct up the repute and assurance from the consumers.

1.6Market construction

A bundle of 2 kilograms Milo is a coco-based drink in monopolistic competition market. In this market, coco-based drink has the features of many Sellerss and purchasers, differentiated merchandise, monetary value shapers and pass money in advertizements to convert consumers.

Other than Milo, there are many Sellerss in this market such as Vico and Ovaltine because of the easy market entry and leads to the addition in the figure of rivals which will vie with Milo. Therefore, the company spends a big sum of money in distinguishing itself from rivals which are besides selling similar merchandises. Its attempt can be seen in the merchandise of 2 kilograms Milo. Milo is action packed with the natural goodness of malt, skimmed milk and chocolate and improved with ACTIGEN-E, a alone combination of 8 vitamins and 4 minerals, which helps in optimum release of energy from nutrient. Therefore, this merchandise is popular among senior and younger coevals.

As a monopolistic competitory house, Milo is a monetary value shaper company that set its ain monetary value for its merchandises. Milo charges higher monetary values compared to its rivals because it develops varied merchandises by acknowledging different types of cocoa drink. For illustration, Milo with PROTOMALT contains malt infusion which is a mixture of different types of saccharides that provides energy and nutrients the organic structure needswhich is safe to be consumed by consumers from different ages.Therefore, the merchandises are sold at higher monetary values for the alone benefits of merchandises and the cost of bring forthing it.

In add-on, Milo besides spends money in advertizements to convert their consumers. Every twelvemonth, it will publicize its merchandises in different channels such as newspaper, telecasting and cyberspace. By advancing its merchandises through advertizements, Milo has attracted new clients bases who do non cognize its merchandises good before and advance its alone expression and benefits of their merchandises to the consumers.

Part 2

In the market, the monetary value of 2kg battalion Milo is RM31.29 while the monetary value of one of its rivals, Vico is RM30.79. The monetary value of Milo is somewhat higher than Vico. There are three chief grounds why Milo merchandising monetary value are higher than Vico, which are the attempt on advertizements, different gustatory sensation and penchant and the production and cost of Milo.

First and first, to do Milo more well-known and to increase the demand of Milo all over Malaysia, Milo make a batch of publicity comparison to the rivals, Vico. However, Vico make less attempt on publicizing its merchandise. Milo makes certain that the advertizements are attractive through all the possible media. Milo makes publicity and advertisement through telecasting, cyberspace, newspaper, wireless station and cusps. These publicity activities cost a batch. For illustration, advertizement of a female parent give her kids a cup of Milo drink earlier traveling to school will bear down with high energy and acquire enthusiasm. It is effectual because many purchasers spend money to purchase Milo since the advertizements have successfully attracted their attending. Milo house demand to pay excess cost for its advertisement cost to sell more Milo. Therefore, the monetary value of Milo is higher comparison to Vico.

Another ground why Milo can sell higher monetary value comparison to Vico is because of the gustatory sensation and penchant. Milo is one of the most recognizable trade names in Malaysia. Milo brings the nostalgic gustatory sensation comparison to Vico. Milo captures all the characteristics and nutritionary benefits of Vico. Milo contains PPROTOMALT, a malt infusion found merely in Milo, but non Vico. PROTOMALT provides complex saccharides, a good beginning of energy for a balanced diet. Furthermore, Milo has invariably improved the nutritionary values of Milo by doing it more wholesome and alimentary while guaranting that every delightful mug of Milo delivers the same energy goodness.

Furthermore, the production and cost of Milo differentiated it from its rivals, Vico. To bring forth one merchandise, the house need a good natural stuff. For Milo, it needs to acquire natural stuff such as chocolate from chocolate provider. If the provider increases the chocolate monetary value, it will besides impact the monetary value of Milo because the Milo ‘s cost of production will increase. In Malaysia, Milo needs to import chocolate. The providers for basic ingredients like chocolate can increase monetary value ensuing in high monetary value for Milo in comparing with Vico.

Hence, Milo is a drink for everyone which suited for all income degree since the monetary value that set by the company is low-cost. Although the monetary value of Milo is somewhat higher comparison to its rival, Vico, it does non impact the market demand of Milo. Alternatively, Milo is really competitory since the monetary value is high in quality and most of the consumer does devour the drink for the gustatory sensation and penchant non the affair of monetary value.

Part 3

Firm Advantages

Differentiated Merchandises

Milo ‘s company runs in monopolistic competition market where Milo is a differentiated merchandise. Milo is said to be differentiated from other competitory merchandise because Milo is really different plenty compared to other replacements although they are similar. As mentioned antecedently, Milo do contains PROTOMALT and ANTIGEN-E which are non available in the replacements. This is what makes Milo so different compared to other coco drinks. Besides that, because of making a batch of advertizement, its green-coloured bundle is widely recognised in the society compared to other coco drinks. Therefore, even Milo is somewhat more expensive than the rivals, Milo is still the primary pick of most consumers.

Battle in advertizement

In conformity to what is mentioned above, Milo ‘s company does advertisement really often in every signifier of mass media to advance Milo. Because of this, Milo became really well-known to every consumer in the market. The battle besides strengthens Milo ‘s distinction in the market as consumers know how particular Milo is compared to other replacements. Furthermore, consumers will be fed with information of the particular characteristics of Milo in footings of how Milo affects one ‘s energy degree and wellness and what particular nutrition Milo contains and even particular offers. This ensures the consumers are kept informed on every new characteristics and discovery of Milo so that they will go on their support toward Milo. As a consequence, this indirectly maintained or even improved the gross revenues of Milo.

Firm Disadvantages

High Expenses

Milo ‘s company has rather high disbursals to run in monopolistic competition market. A large part of disbursals are really used in selling and advertisement as they are ever regenerating and revising their contents in advertizements. The work to come out with new advertizement needs cost every bit good. Besides that, the cost in researching new expression for sweetening of Milo ‘s gustatory sensation and good health could non be neglected every bit good. Apart from that, costs of planing and implementing new visual aspect of bundles have besides contributed a batch in the entire outgo. Yet, these disbursals could non be ignored as the company demand to guarantee Milo ‘s distinction within the market or other competitory companies might take over their position in the market.

Menace of rivals

One of the features of monopolistic competition market is the entry and issue of new houses are free. Therefore, Milo ‘s company which operates in this market will confront many rivals and each of them will someway hold their ain particular characteristics in their several merchandise. Because of that, Milo ‘s company will necessitate to set excess attempt to keep its position in the market and non being replaced by the other competitory companies. They need to ever revise and come out with new characteristics install in Milo. For illustration, they have merely come out with a new characteristic called the Milo Sejuk, which consumers can straight away mix cold H2O into the Milo pulverization alternatively of hot H2O.

Consumer Advantages

Informational advertizements

Milo, a merchandise from monopolistic competition market, is frequently being seen on advertizements from telecasting, wireless and signboards. Because of the regular advertizements made by the company, consumers are ever kept informed on the singularity of Milo, probably the types of ingredients used, alternatively of other replacements. Therefore, consumers ever know the benefits they will likely acquire after buying Milo, either benefits on wellness or inexplicit benefits. Therefore, consumers need non to worry on the quality of Milo and can hold full assurance on it.

Enjoy new characteristics

As consumers of Milo in monopolistic competition market, they can bask frequent update from Milo in footings of the merchandise ‘s characteristics. As mentioned above, Milo ‘s company who faces many competitory forces needs to ever revise and regenerate Milo ‘s characteristic. As a consequence, this really gives consumers an chance to bask more new characteristics from Milo. For illustration, when Milo is added with new nutrition, consumers enjoy the healthier Milo. When Milo Sejuk is introduced, consumers enjoy more convenience in devouring Milo.

Consumer Disadvantages

High monetary value

Because of the nature of monopolistic competition market, Milo which is categorised in this market is sold in a comparatively higher monetary value. As mentioned, Milo ‘s company has put many attempts to guarantee the excellence of its merchandise in many facets, such as the nutritionary value, recognizable packaging and most significantly the informational advertizements and these uses a batch of money. Therefore, Milo ‘s company has no pick but to increase the monetary values of Milo to cover the disbursals made in the production of Milo.

Part 4

Our research merchandise Milo was introduced in Malaysia in 1950 and has won the fondness of many Malaysians. Milo 2kg is Malayan ‘s much-loved drink. Milo 2kg is non merely an ordinary Cocos nucifera malt drink. It contains PROTOMALT, a malted barley infusion that supplies complex saccharides, the preferable, recommended beginning of energy in a balanced diet. It besides has a good portion of the foods of course present in barley. Milo 2kg contain nutritionary icon on each battalion reinforces the nutritionary belongingss that consumer can acquire from every cup of alimentary and great-tasting Milo.

Milo 2kg packaging is the most direct and largest communicating vehicle that the organisation had with the most feelings they can present. Its distinguishes its merchandise through easy recognizable packaging which is its green coloring material packaging. The house besides makes some attempt in the advertizement to convert the consumer or possible consumer to buy and devour their merchandise. Ad such as creates a originative motto in order to do certain consumer will retrieve Milo. Example of motto is Buy Milo 2kg free 200g. To do Milo 2kg more interesting to purchase, the house adds some cereal. The cereal will increase the cost of production and at the same clip, the monetary value of Milo will besides increase. That is why choice factor can impact the monetary value of Milo.

After our research for the assignment, we found that the assignment was utile for us. From the assignment, we know more about four market constructions. Our research merchandise, Milo 2kg battalion, had surely assist us for a better apprehension on the monopolistic competition market. We knew that monopolistic competition market is a market which is characterized by many little Sellerss, a differentiated merchandise and easy market entry and exist. We understand that the many-sellers status is met when each house is so little relation to the entire market that its pricing determinations have a negligible consequence on the market monetary value. We comprehend that when a merchandise is differentiated, purchasers are non apathetic as to which marketer ‘s merchandise they buy. Besides, we knew that different sort of merchandise will hold distinguished degree of demand from the communities. If a merchandise has a high demand, it will pull other manufacturer to bring forth the same or even better merchandise. As a consequence, there will be a batch of rivals and competition. All the manufacturers will do their merchandise popular and more favorable.


Economic Net income Normal Profit26_01a

Our empirical findings in this research had fulfilled our outlooks sing economic sciences.

In the short tally, Milo ‘s company in monopolistic competition able to do economic net incomes, but in the long tally these will be competed off and the Milo ‘s company will merely be able to do normal net income. In the short tally and long tally, Milo ‘s company will maximize their net income by maximization regulation where fringy cost equal to fringy gross ( MC =MR ) . In the short tally, monetary value ( Demand Curve ) is transcending the ATC ( Average Total Cost ) curve and Milo ‘s company can do economic net income.

However, in the long tally, new houses will be attracted into the industry by the economic net incomes. The entry of new houses leads to anA increaseA in the supply of differentiated merchandises, which causes Milo ‘s company market demand curve to switch to theA left.A As the entry of the market increases, Milo ‘s company demand curve will go on switching to the left until it is tangent to the mean entire cost curve at the net income maximising degree of end product. At this point, Milo ‘s company economic net incomes are zero, and there is no longer any inducement for new houses to come in the market. Therefore, in the long-run, the competition brought approximately by the entry of new houses will do each house in a monopolistic competitory market to gain normal net incomes.

If we intend to set up a company, we will take monopoly market which is big in size, to come in. We choose monopoly market because monopoly is a market construction characterize by individual marketer, others are impossible to entry our market, a alone merchandise and most significantly, we will be the monetary value shapers.

First, in monopoly, a individual house is the industry. This is because we will be the lone one manufacturer or marketer exists for a merchandise. Because of individual house in the industry, we will bring forth end product at lower per unit cost than two or more houses. Our monopoly house will provides the entire supply of a merchandise in a given market. For illustration, we can run as the lone Mexican Food in Kampar country.

Second, there are barriers to entry into monopoly market that prevent competition. In comparing to prefect competition, there are no constrains to forestall new houses from come ining an industry. Barriers such as legal barriers, economic systems of graduated table, web good and ownership of an indispensable resource. These barriers are so high that prevent any other house from come ining the market we chosen that is monopoly market. This will surely give us incumbent advantages. We will gain normal net income in the short tally excessively.

Following, we will hold a alone merchandise. A alone merchandise means there are no close replacements for the monopolizer ‘s merchandise. Therefore, we face small or no competition. In world, nevertheless, there are few, if any, merchandises that have no close replacements.

Last, we will be the monetary value shapers. Monetary value shapers means we will hold to power to command the monetary value. Sometimes, we as a marketer can bear down different clients, different monetary values, for the same good or service when the cost of supplying the good or services does non differ among clients. We choose monopoly market because the monetary value favoritism is possible merely with monopoly or where members of a little group of houses follow indistinguishable pricing policies.

In a decision, we will take monopoly market as monopoly is a market construction characterize by individual marketer, others are impossible to entry our market, a alone merchandise and most significantly, we will be the monetary value shapers.


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