Milo launches campaign to narrow gap with ovaltine

F&N Dairies (Thailand) aims to start closing the gap between its Milo ready-to-drink UHT chocolate malt milk and market leader Ovaltine.

"We plan to increase the market share of Milo UHT chocolate malt milk to 40 per cent," brand manager Maysinee Saengkaew said last week.

Milo currently has 35 per cent of the local UHT chocolate malt milk market worth overall Bt3 billion a year, while Ovaltine from AB Food & Beverages (Thailand) has 65 per cent.

"The marketing budget of about Bt50 million will be allocated to a proactive campaign, which is expected to boost sales by 30 per cent this year," she said.

The company will focus on    '360-degree communications' with target customers, which will be enhanced by four key approaches designed to strengthen the Milo Active B brand. They are to strengthen brand awareness, reinforce taste attributes and induce trials, deepen brand loyalty and increase purchase frequency.

Consumption of UHT chocolate malt beverages enjoyed impressive double-digit growth in the first half of this year, Maysinee said.

"Based on an internal study, we found that consumers purchased ready-to-drink UHT chocolate malt because of its taste. According to Market Support's survey regarding the taste of Milo compared to the other brands, conducted among users in the age group of six to 12, we found six out of 10 kids preferred Milo UHT because of its 'just right' concentrated chocolate taste. From the survey, we are quite confident about our good taste," she said.

Last quarter, the company launched a marketing campaign covering all mainstream media and distribution channels, including newspaper ads, Skytrain body wraps, product sampling, special sales booths, decorated refrigerators, instore media and TV tie-ins.

This quarter, the company plans to move to a new, two-part marketing campaign.

The first part will focus on company employees to build up awareness and induce trials under the "Milo UHT Cool & Tasty" concept.

The first  event was kicked off last week in the Silom business district, challenging the target group to test "cool and delicious" Milo UHT with fun-filled games and activities.

The event will rotate to more than 10 community areas throughout Bangkok.

The second part of the campaign will target children aged six to 12 with 'taste challenges' to be held at 200 schools in Bangkok and upcountry.