ASSESSMENT 2:

INDIVIDUAL REFLECTIVE
ASSIGNMENT
LÊ QUANG TRUNG
22003744
CB-T223WSB-11
 CONTENT
01 INTRODUCTION
02 EXTERNAL INFLUENCES
03 INTERNAL INFLUENCES
04 RECOMMENDATIONS

05 REFERENCES
I.INTRODUCTION
1.BRIEF HISTORY
1912 - First Nestlé trading office was established
in Ho Chi Minh City (formerly Saigon)

1992 - La Vie Company, a joint venture between

Nestlé and Perrier Vittel, established in Long An

Nestlé officially entered Vietnam in 1995 with the

establishment of Nestlé Vietnam Ltd.

2012 - Celebrating 100 years of Nestlé presence in

Vietnam
 2.KEY MILESTONES

Expansion of Production
Facilities
Nestlé continued to expand its production facilities
in Vietnam to meet rising product demand. This
includes the construction of new factories as well as
the expansion of existing ones.
2022: Nestle had around 3,000 employees and six
factories in Vietnam
Product Development and
Diversification
Nestlé introduced new products and expanded its
product portfolio in Vietnam.
Nestlé Vietnam is developing products of key
brands, such as MILO, NESCAFÉ, Maggi, La Vie and
NAN
Nestlé Vietnam has launched Nescafé Café Viet,
Maggi fish sauce, MILO breakfast, and other
products.
 Sustainable Sourcing and
Responsible Agriculture
Nestlé continued its efforts to promote sustainable sourcing and
responsible agriculture practices in Vietnam.
Nestlé Vietnam had established itself as the most sustainable
enterprise in Vietnam by the end of 2021.
Nestlé factories in Vietnam achieved "zero waste to landfill" status in
2018 by recycling and reusing wastewater and waste substances.

Community and Social

Initiatives
Nestlé actively engaged in community and social
initiatives in Vietnam.
In 2020, Nestlé has donated VND47 billion ($2 million)
to frontline forces, communities, and small business
partners affected by the pandemic, including
nutritional products, cash, and face masks.
Consumer Education and
Health Initiatives
Nestlé focused on consumer education and health initiatives in Vietnam.
Binu Jacob stated(2021) said that Nestlé Vietnam always makes efforts
to realise the goal of “enhancing Vietnamese lives"
Nestlé Group has donated $2.15 million to the COVID-19 Solidarity
Response Fund to support COVAX, the global facility for the procurement
and equitable distribution of COVID-19 vaccines.
3.FINANCIAL PERFORMANCES
Investment
In terms of investment, Nestlé have
committed to invest a further 130
million Swiss francs ($145.6 million)
in 2021

Sales
Nestlé's e-commerce sales grew by
48.4% and accounted for 12.8% of
total Group sales in 2020.

Sponsor
Nestlé has also directly poured some
US$600-700 million in the country
per year through its purchase of
locally produced coffee.
4.MARKET POSITION
Nestlé Vietnam has long been Vietnam's largest buyer
and exporter of coffee. Nestlé Group purchases 20-25%
of Vietnam's coffee output each year, with an average
total value of $600-700 million.
Nestlé is also the largest coffee buyer in Vietnam,
accounting for 20-25 percent of total coffee output.
The company has a substantial market share in various
product categories, such as coffee, dairy products,
infant nutrition, and culinary products.
Nestlé's strong distribution network and widespread
availability of its products contribute to its market
position in Vietnam.
Nestlé Vietnam is one of the major players in the dairy
market in Vietnam along with Vinamilk, Nutifood,
Frieslandcampina, and TH Group.
According to the CEO of Nestlé Vietnam, Binu Jacob,
Nestlé’s 25-year journey in Vietnam is described as
“sustainable development”.
1.2PRODUCT AND SERVICES
MILO MILO is an iconic Australian brand first
Nestlé Milo is a line of instant hot chocolate drinks that developed in 1934 by chemical engineer,
come in a variety of flavors and sizes. Thomas Mayne from Smithtown, NSW

They're made with real cocoa, milk, sugar, and vanilla Nestlé wanted to make a tonic drink that was
extract. Milo Chocolate, Milo Vanilla, Milo Caramel, and tasty enough for kids to drink while also
Milo Crunch are some of the most popular Nestlé Milo providing them with the vitamins and minerals
products. they needed without breaking the bank.
 1.3PRIMARY TARGET MARKET
As a result, Milo's marketing campaigns frequently target
Milo products are
parents who are concerned about providing nutritious and
typically aimed at
energizing drinks to their children to support their growth,
children and
development, and active endeavors.
adolescents. Milo is a
chocolate malt powder
drink that is frequently
marketed to children as
a nutritious and energy-
boosting beverage. Milo
is marketed as a drink
that helps fuel active
lifestyles, and the brand
frequently emphasizes
the importance of
physical activity.

Nestle states that the primary target audience for NESTLÉ MILO is people aged 9 and up. However,
according to a marketing strategy for Milo, the primary target market (PTM) expand to children
aged 3 to 13 years old.
II. EXTERNAL INFLUENCES
1 CULTURAL VALUES
1.1Other-Oriented Values:
Family and Community: Marketers may emphasize the importance of family and community in their Milo
marketing strategy.
Nestlé has successfully capitalized on this value in the global market, portraying Milo as a drink that
brings families together and fosters social connections. Advertisements frequently show happy families
enjoying Milo together.
In the Vietnam market, where family values are highly valued, Nestlé has adapted its marketing strategy
by promoting Milo as a beverage that promotes family bonding and shared experiences => Encouraging
Vietnamese to engage in their services and products
1.2 Environment-Oriented Values:
Sustainability and Responsibility: Nestlé
recognizes the growing global concern for
environmental sustainability and has worked
to incorporate this value into its Milo
marketing strategy.
Nestlé has introduced sustainable packaging
initiatives and communicated its
commitment to responsible ingredient
sourcing in the global market.
Nestlé (2022) stated that they have taken
steps in the Vietnam market to educate
consumers about the importance of
recycling and responsible consumption, in
line with the country's emerging
sustainability focus.
However, this stagety of Nestlé may not be
effective due to vietnam may still have low
levels of environmental awareness and
consciousness => limits the impact of
Nestlé's environmental messaging
1.3 Self-Oriented Values:
Health and Wellness: Marketers want to position Milo as a product that promotes health and wellness, appealing
to people's self-interest.
According to Anh Nguyen(2019), Nestlé has successfully leveraged this value in the global market by emphasizing
Milo's nutritional benefits, such as vitamins and minerals, and its role in supporting active lifestyles.
Nestlé has adapted its marketing strategy in the Vietnam market, where health and wellness are becoming
increasingly important, by emphasizing Milo as a nutritious drink that provides energy for daily activities, aligning
with consumers' growing health-consciousness.
This is also another risk move Nestlé beacuse there can be skepticism among consumers regarding the actual
health benefits of the product => lead to doubt about the quality of Milo products
2.GROUP INFLUENCE
INFORMATIONAL INFLUENCE
This strategy is used by marketers to provide consumers with information about the product.
Marketers can highlight the nutritional benefits, ingredients, and scientific research supporting
the product's claims
By providing this information, marketers hope to persuade consumers that Milo is a healthy and
nutritious drink that is perfect for children.

NORMATIVE INFLUENCE
Nestlé marketers employ normative influence, which is based on social norms and the desire to
conform to others' behavior.
Marketers can create campaigns that emphasize the popularity and acceptance of Milo among
different social groups, such as athletes, students, or families.
By doing this, marketers can leverage the social influence factor to persuade customers to
choose Milo over competing products.

IDENTIFICATION INFLUENCE
Identification influence aims to create a sense of identification and belongingness with a
particular group.
Marketers can create campaigns that highlight Milo consumers' shared values, interests, and
lifestyle choices
Marketers can do this by leveraging consumers' desire for group affiliation, which will increase
engagement and purchase intent.
III.INTERNAL INFLUENCES
1.MOTIVATION MASLOW'S HIERARCHY OF NEEDS
PHYSIOLOGICAL NEEDS SAFETY NEEDS
Marketers can reassure customers
Milo marketers can highlight the
about Milo's safety and quality by
product's nutritional value, hunger
emphasizing the brand's commitment
satisfaction, hydration benefits,
to high-quality ingredients, strict
health benefits, and satisfaction of
manufacturing processes, and food
hunger and thirst to meet
safety standards.
consumers' basic physiological
Marketers can create a sense of
needs.
security and trust around Nestlé's
Marketers can effectively position
Milo in Vietnam by addressing
Milo as a necessary and beneficial
consumers' safety needs and
product for Vietnamese people.
assuring them of the product's
The forecast predicts that sales of
quality, packaging, compliance,
milk and dairy products in Vietnam
supply chain transparency, and
will increase by 7-8% annually from
consumer education.
2021 to 2025, reaching a total of
This may increase consumers'
roughly 93 trillion dongs. The fact
willingness to engage with the brand
that milk consumption is rising so
and make purchasing decisions
steadily suggests that Vietnam has
based on safety concerns.
a milk market.
 SAFETY NEEDS
PHYSIOLOGICAL NEEDS
Marketers can use Milo as a symbol of personal achievement and
Milo marketers can foster a
success.
sense of belonging and
Marketers can tap into the psychological motivations associated with
community around the brand
ego needs by highlighting consumers' ego needs and promoting
by addressing consumers'
Nestlé's Milo as a product that boosts their self-esteem, status, and
social needs and promoting
personal image.
Nestlé's Milo as a product that
Promotional messages can highlight how consuming Milo helps people
fosters social connection,
perform better, achieve their goals, and excel in their endeavors.
family bonding, and community
This can create a strong emotional connection with consumers, foster
engagement.
brand loyalty, and influence purchase decisions based on the
They can emphasize how
perceived ego-enhancing benefits of consuming Milo.
drinking Milo brings people
together, whether through
shared family moments, social SELF-ACTUALIZATION NEEDS
gatherings, or participating in Milo can be positioned as a product that helps people reach their
sports activities. full potential.
This can help to build a Marketers can emphasize how Milo consumption improves mental
positive brand image, increase clarity, concentration, and cognitive performance, allowing people to
consumer loyalty, and be their best selves. Messages can emphasize how Milo inspires
influence purchase decisions aspirations, aids in personal development, and improves overall well-
based on the social benefits being.
associated with Milo.. In order to engage customers and connect with their self-fulfillment
goals, Marketers can also leverage aspects related to personal
growth, health, achievement, and purpose to engage consumers and
create a connection with their aspirations for self-fulfillment.
2.ATTITUDE CHANGE AFFECTIVE COMPONENT
Change Behavioral Component: Strategies
aimed at changing the behavioral component
of consumer attitudes seek to encourage
actual purchase and consumption behaviors.
In-store Promotions: Marketers can offer
discounts, promotional bundles, or loyalty
programs to incentivize consumers to
choose Milo over competing products
=>influence consumers' behavioral
intentions and ultimately shape their
attitudes toward the product.

CHANGE BEHAVIORAL COMPONENT CHANGE COGNITIVE COMPONENT

Strategies that aim to change the affective -Marketers can use cognitive strategies to
component of consumer attitudes focus on influence consumer attitudes by providing
altering emotions, feelings, or associations new information, changing beliefs, or
linked to the Milo product: challenging pre-existing perceptions. This
Celebrity Endorsements: Marketers can can be achieved through:
work with well-known celebrities or Informational Advertising: Nestlé's
influencers who have a good reputation marketers can highlight the nutritional
and image in shaping consumer attitudes benefits, ingredients, and quality of Milo
and increasing products visibility in their advertisements
=>Capitalize on their appeal and sway =>Create positive associations with the
consumers' perceptions of the product. product in the minds of consumers.
IV.RECOMMENDATIONS
Environment-Oriented Values:
+Recommendation: Enhance Environmental Education and
Local Initiatives
+Justification:
While environmental awareness is lower in Vietnam,
there is a growing interest in sustainability among
consumers. Nestlé can raise awareness about the
importance of environmental sustainability and foster
a sense of responsibility among Vietnamese
consumers by investing in environmental education
and local initiatives.
Partnerships with local environmental organizations,
community engagement programs, and educational
campaigns emphasizing the positive impact of
sustainable practices on the local environment can
help achieve this.
Highlight the importance of sustainability in a way that
is relatable and meaningful to Vietnamese consumers,
demonstrating how their choices can have a positive
impact on the local environment.
=> Increase the impact of Nestlé's environmental
messaging
Environment-Oriented Values:
Recommendation: Collaborate with Health Experts and Promote Active
+Justification:
Nestlé can work with local nutritionists, fitness experts, and health experts to reinforce the value of self-
oriented health and wellness.
In order to support Milo's positioning as a beverage that supports an active lifestyle, these collaborations may
involve developing educational content, holding workshops or events, and promoting active lifestyles.
Nestlé can increase consumer confidence and foster a favorable attitude toward the brand by utilizing the
knowledge of health professionals to provide trustworthy and credible information about Milo's advantages.
Enhance transparency in Milo's nutritional information by providing clear and detailed labeling that highlights
the key nutrients and benefits of the product is also the way to ehance the knowleadge of customer about the
products.
=> Build credibility, enhance consumer trust, and create a positive consumer experience that aligns with
health-conscious preferences of Vietnamese consumers.
 REFERENCES
+Abas, Ena Suhaila. “Factors Influencing Customer Loyalty towards MILO Products.” Universiti Teknologi Mara, 2008, ir.uitm.edu.my/id/eprint/21395/. Accessed 8 July
2023.
+“Dinh Dưỡng, Sức Khỏe và Sống Vui Khỏe.” Nestlé, www.nestle.com.vn/vi/nutrition-health-wellness. Accessed 8 July 2023.
+“DINH DƯỠNG THIẾT YẾU NĂNG LƯỢNG TỪ TỰ NHIÊN.” Nestlé Milo, www.nestlemilo.com.vn/milo-nang-luong-cho-tre-nang-dong-ca-ngay. Accessed 8 July 2023.
+“Facts and Figures.” Nestlé, www.nestle.com/investors/annual-report/facts-figures. Accessed 8 July 2023.
+King, Trương Quốc , et al. Marketing Strategy Analysis of Nestlé Milo. pp. 16; 20-23, www.mybib.com/#/projects/pxDdWN/citations/new/article_journal. Accessed 8
July 2023.
+“Milo.” Nestlé, www.nestle.com/brands/drinks/milo. Accessed 8 July 2023.
+“Nestlé - Continuous Investment and Commitment to Việt Nam since 1995.” Việt Nam News, 27 June 2023, vietnamnews.vn/economy/1550379/nestle-continuous-
investment-and-commitment-to-viet-nam-since-1995.html. Accessed 8 July 2023.
+“Nestlé Publishes 2020 Annual Report, Spotlights Sustainability at the Annual General Meeting.” GlobeNewswire, 16 Mar. 2021, www.globenewswire.com/en/news-
release/2021/03/16/2193287/0/en/Nestl%C3%A9-publishes-2020-Annual-Report-spotlights-sustainability-at-the-Annual-General-Meeting.html. Accessed 8 July 2023.
+“Nestlé Vietnam Aims to Be a Leading, Sustainable and Glocal Company.” Việt Nam News, 13 May 2021, vietnamnews.vn/economy/947111/nestle-vietnam-aims-to-be-
a-leading-sustainable-and-glocal-company.html. Accessed 8 July 2023.
+“Nestlé Vietnam Announced as Vietnam’s Most Sustainable Company.” The Saigon Times, 15 Dec. 2021, english.thesaigontimes.vn/nestle-vietnam-announced-as-
vietnams-most-sustainable-company/. Accessed 8 July 2023.
+"Nestlé Vietnam Honored as Most Sustainable Business in Vietnam.” VCCI Uniting Entrepreneurs, 21 Jan. 2022, en.vcci.com.vn/nestle-vietnam-honored-as-most-
sustainable-business-in-vietnam. Accessed 8 July 2023.
+“Nestlé Vietnam: 25 Years Consistent with a Goal “Enhancing Vietnamese Lives.”” Vietnam, 10 Feb. 2021, en.vietnamplus.vn/nestle-vietnam-25-years-consistent-with-a-
goal-enhancing-vietnamese-lives/196205.vnp. Accessed 8 July 2023.
+Nguyen , Anh . “Vietnam Is Nestlé’s Fastest-Growing Market in Asia.” VNExpress, 4 Mar. 2019, e.vnexpress.net/news/business/vietnam-is-nestle-s-fastest-growing-
market-in-asia-3889249.html. Accessed 8 July 2023.
+Thuy, Dinh . “Nestlé Vietnam Once Again Lauded for Budget Contribution.” Vietnam Investment Review, 19 Jan. 2019, vir.com.vn/nestle-vietnam-once-again-lauded-
for-budget-contribution-82153.html#:~:text=Swiss%2Dbacked%20Nestl%C3%A9%20Vietnam%20has,for%20their%20performance%20in%202019. Accessed 8 July
2023.
+Van, Thanh . “Nestlé Vietnam Nurturing Local Communities.” Vietnam Investment Review, 21 June 2021, vir.com.vn/nestle-vietnam-nurturing-local-communities-
84948.html. Accessed 8 July 2023.
+Vien, Thu . “Nestlé Vietnam and the Journey to Sustainable Development.” Vietnam Economics News, 10 Jan. 2023, ven.vn/nestle-vietnam-and-the-journey-to-
sustainable-development-46643.html. Accessed 8 July 2023.
+Villagarcia, Macky . “10 Marketing for Milo.” SCRIBD, 6 Nov. 2010, www.slideshare.net/mackyvillagarcia/marketing-plan-milo-villagarcia. Accessed 8 July 2023.
+“What Is the Target Audience for NESTLÉ MILO?” Nestlé, www.nestle.pk/ask-nestle/what-is-the-target-audience-for-nestl%C3%89
milo#:~:text=Target%20audience%20for%20NESTL%C3%89%20MILO,is%209%20years%20and%20above. Accessed 8 July 2023.
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