Perceptual Map of Milo in UK (Created by Author)
The reasons behind the perceived failure of Milo in the UK market are primarily pricing strategies combined with low market visibility. Since its entry into the UK market, Nestlé’s Milo had been able to maintain leadership position for some time. However, the marketing strategies adopted by its main competitors such as Ovaltine and Asda Instant Malt Drink focused on presence of the brand in departmental and supermarket stores, along with promotions and advertisement. Milo, on the other hand focused on strong promotion and advertisement on television and print medium, but lost out on establishing shelf presence within supermarkets and departmental stores. At the same time, the prices of Milo are marginally higher than competitors. Though it did not matter much to individual customers, it made a huge difference to retailers buying in bulk.
It has been found that the competitors of the brand, namely Asda Instant Malt Drink, Horlicks, Ovaltine and Ovaltine Light are more popular and easily available to customers in UK. The reason being better marketing strategies of these brands for shelf space at outlets such as supermarkets, which gives these brands a better market visibility as compared to Milo. Asda and Ovaltine are marginally cheaper than Milo and at the same time have better market visibility. It has been seen that the product lines of these brands are more easily visible as compared to Milo. Even Sainsbury products, whose product lines are similarly priced in case of Milo, have a better market visibility – not only in advertisement and promotions, but also shelf presence. So is the case of Horlicks and the different brands like Horlicks Light and Horlicks Chocolate Light.
As far as customers in the market is concerned, it is important for organizations t ensure that their products are demanded and accessible at the same time. Milo had failed to ensure this and as a direct consequence of these two factors, Milo lost out in market competitiveness .
Reference
Adaramola, A.C., 2010. UK cocoa drinks wars. In: Principles and Practice of Professional Advertising: A Multinational and Comparative Analysis. Lagos: Trust Communications Ltd.
