FACULTY OF BUSINESS AND MANAGEMENT

MGT 028- INTRODUCTION TO BUSINESS

SESSION 2 2022/ 2023

SEMESTER MARCH 2023 - AUGUST 2023

INDIVIDUAL ASSIGNMENT

PRODUCTS OR SERVICES BENCHMARKING

MILO VERSUS VICO

PREPARED BY

FLORIELLA SUZLY

STUDENT MATRIX NUMBER

2023904543

GROUP

BA0023 P

PREPARED FOR

SIR JEMAT JULAIHI BASRI

(LECTURER)

SUBMISSION DATE

06-06-2023

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TABLE OF CONTENT
PART CONTENTS PAGE
1. 1.INTRODUCTION 3
1.1 Choice of Products or services 3
• About MILO 4
• MILO Logo 4
1.2 Competitors’ products or services 5
• About VICO 5
• VICO Logo 6

2. 2. PRODUCT OR SERVICES BENCHMARKING

2.1 Comparison of Process Benchmarking 6
• The Packaging Production 6-7
• Recyclable Packaging 7-8
2.2 Comparison of performance benchmarking 8
• The Taste and the Nutrition of MILO 8-9

• Milo Performance Awards 9

2.3 Comparison of strategies benchmarking 10

• MILO sales promotion 10

• MILO van service 10-11

• MILO new features 11

3. 3. RECOMMANDATION AND IMPROVEMENT

3.1 Process benchmarking 12
3.2 Performance benchmarking 12-13
3.3 Strategies benchmarking 13
4. 4. CONCLUSION 14
5. REFERENCES 15

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1.INTRODUCTION
The purpose of this assignment is to evaluate the performance comparison of the two
main chocolate malt beverages in Malaysia. which are MILO and VICO. MILO has
been chosen as a benchmark for VICO because it is a Malaysia malt chocolate
beverage that has been loved by Malaysians regardless of age since 1969. compared
to VICO, which is less popular among the people in Malaysia. Not only that, milo is
very popular in Malaysia where the brand was Malaysia flavored drinks. Milo has the
largest market in Malaysia and Malaysians are said to be largest in the world users.

1.1 Choice of Products or services

Name : MILO

Founder :Thomas Mayne

Founded : 29 August 1934

Headquarters : Rhodes, New South Wales, Australia

Website : https://www.milo.com.my/

Picture 1 : MILO Product

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ABOUT Milo

Milo is made from the natural goodness of malt ,milk, cocoa and sugar and it produced
by Nestlé and originating from Australia. founded in 29 August 1934, Thomas Mayne
in has developed a powdered chocolate malt drink. This Milo can be mix it with water
or milk, and drink hot or cold . Milo is sold in many countries around the world.

Malaysia is the country that consumes the most Milo with 90 percent. The largest Milo
factory in the world is in Malaysia. In Malaysia Milo with ice added is known as "Iced
Milo" or "Milo Ais". The special about Iced Milo is even available at fast food
restaurants such as KFC and McDonald's.

Picture 2 :MILO Logo

Most commonly sold as a powder in a green can, often depicting various sporting
activities, Milo is available as a premixed beverage in some countries and has been
developed into a snack bar, breakfast cereal and protein. Its composition and different
taste from country to country. The MILO brand is named after a Greek athlete who
won six ancient Greek Game events and was believed to be so strong that he could
carry a bull over his shoulders. In the early 90s Malaysia, MILO wanted to invoke a
confidence boost not only in our athletes but among Malaysians as well, thus, coming
up with the slogan, "Malaysia Boleh!" Since then, this iconic slogan has always been
a battle cry for Malaysians to cheer on our athletes. Malaysia Boleh!

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1.2 Competitors’ Products or services

Name : VICO

Founder : Company Dairy Producer

Founded ; 1995

Headquarters : Saskatchewan, Canada

Website : https://www.vico.com.my/

PICTURE 3 : VICO Product

About VICO

VICO was a brand of chocolate milk manufactured by the company Dairy Producers.
in 1995, VICO was available in Saskatchewan, Canada. VICO is a nutritious chocolate
malt beverage produced by Maestro Swiss Management Services Sdn. Bhd. VICO
has a chocolate malt drink marketed in Malaysia. VICO Calcium Plus contains 304mg
of calcium in each 32gm sachet to help support optimal maintenance of strong teeth,
bones, nerves and muscles. Its also contain the natural goodness of malted barley
and it is high in Vitamin B2, niacin, D3, folic acid, calcium, magnesium and iron.

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 PICTURE 4 : VICO Logo

VICO logo

The term 'Vi-Co' is still occasionally used today in Saskatchewan and Quebec as a
slang term for any chocolate milk. It is a notable regional attribute for both provinces
and is frequently cited as a defining feature of Saskatchewan's folk history. VICO is a
rich chocolatey malt powder drink that has stood the test of time the lasting impression
from childhood correlates with the love for VICO classic mix. Over the years, VICO
has established itself as the pretend cocoa brand in both local and international
markets. The company also manufactures high quality products including consumer
brands such as VICO, Vochelle and Darry’s.

2.1 Comparison of Process benchmarking

The packaging production

One of the nestle product which is MILO has many kind of packaging design for
example, boxed drink ,plastic packets, mini packets ,cans ,bottle plastic and tins. With
the variety of packaging , it will attract customers . compare to VICO product design,
the packaging of VICO products are outdated. The design of the plastic and labelling
is old fashioned and has never been improved. meaning VICO product has less design

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in terms of its packaging . so the attraction of customers is decreasing and most likely
will cause less purchases of the VICO product .

Picture 5 : Packaging of MILO

Picture 6 : packaging of VICO

Recyclable Packaging
The product of Nestle in Malaysia which is MILO are the first food and beverage
company in Malaysia to introduce innovative beverage packaging to make it
more environmentally friendly . This product packaging use of paper straw so it
can make a big different in environmental sustainability . Compare to VICO
company that use a lot of plastic for their packaging especially for the straw this
will causing the environment if the company of VICO use a lot of plastic .

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 Picture 7 : The reuse of paper straw in MILO compare to VICO which use plastic straw

Around 90% of nestle Malaysia product packaging materials are recyclable. With this
initiative it can reduce as much as 200 million plastic straw a year and avoid wastage.

2.2 Comparison of performance benchmarking

The taste and nutrition
Tasty and trusted, MILO brand is the world’s leading chocolate malt beverage that can
be prepared with hot or cold milk or water. It offers nutrition and energy demands of
young bodies and minds. It has long been known as an energy beverage strongly
associated with sports and good health.

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 Picture 8: The comparison of nutritional information of MILO and VICO

MILO would be the best choice out of the malted beverage brands. Cause it has
lowest carbohydrate content with only 20.1g compare to VICO which is 22.5g of
carbohydrate. Other than that MILO also has 12.2g of sugar compare to VICO
which contain high sugar 13.3g in per saving 30g . That’s is why each milo meal
is Low in Sugar where 60% of it is from natural sources which are milk and malt’

Milo performance awards

MILO has a lot of awards because of their excellent performance .The milo company
(nestle) was awarded Most Chosen Brand 2022 (beverage) and Best Creative
Campaign with its #MalaysiaBolehBersamaMILO campaign . Not only that Sri Lankan
student has also voted nestle as a popular beverage MILO ‘Student Beverage Brand
of the Year ‘ . MILO has won the award, signifying the love consumers have for the
brand and the strong trust they continue to place in product quality. Compare to VICO
which not have any awards yet.

Picture 9: The MILO awards

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2.3 Comparison of Strategies benchmarking
MILO Promotion
This MILO product has focus to their products offer feature utilities that are out
performing the competition. This include high quality, low cost, excellent service or
simply feature that other competitors do not have. Consumer sales promotion the
company carries out big sales, advertising and promotion, globally like in newspapers,
magazines, television, radio, billboards or the internet especially during celebration
like Hari Raya , Hari kaamataan and etc.

PICTURE 10; Promotion of MILO

MILO Van service

In Malaysia, MILO conducts commercials on TV but also provides services in milo van
which is a strategy to attract customers and open job opportunities . Not only that MILO
van also provides free drinks to students in Malaysia which has been launched for a
long time ago. Compare to VICO that has not launch any of food or drinks van before.

PICTURE 11: MILO van service

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 Picture 12; free MILO for all student
With this milo van it can save time for customers so that they don't have to line up at
the counter just to buy milo. This is one of the strategies that are effective in further
improving the achievement of this milo company's objective.

MILO New Features

Milo’s company who faces many competitive forces needs to always revise and renew
Milo’s feature. As a result, this actually gives consumers an opportunity to enjoy more
new features from Milo. For example, ice cream, cereal, sandwiches cookies, nuggets
and so on. consumers enjoy more convenience in consuming Milo. by using this
strategy it will be able to further increase the company's work results in addition to
improve customer demands.

PICTURE 13 : The new factures of milo

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3. Recommendation and Improvement

3.1 Process of benchmarking

Among the recommendations to VICO to provide the best packaging in their product
so they can improve many design in terms of its packaging.

i. VICO companies should take care of the product safety and improve the
quality of their product as it helps to increase company revenue and also
increase employee productivity. Other than that need more effort to make
design in the packaging of this drink. means modified packaging
techniques. With a good packaging Many customer will conducted by
business consulting companies confirm the influence of product
packaging that is directly related to customer experience to give
confidence to customers to loyally deal with a business.
ii. VICO needs to produce environmentally friendly packaging such as
changing plastic straws to paper straws to improve the product and at the
same time reduce waste from the use of plastic in the long term. because
environmentally friendly packaging products will have an impact towards
environmental sustainability in addition to being environmentally friendly.

3.2 Performance of benchmarking

Among the recommendations to VICO for the achievement of awards and the nutrition
of VICO

i. VICO company needs to work hard to resolve any external issues

currently experienced that may affect their customer service performance.
for example VICO can organize activities at every school level. Since
VICO didn’t have any of awards it should held strong marketing campaign.
with this effort, VICO company will probably achieve business goals in
terms of their performance and it is most likely that VICO's product will get
the most votes one day and get an award.

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 ii. As for the taste of VICO , the VICO company could expend their market
by offering a new flavor to cater market’s different taste . maybe reduce
the amount of sugar in the drink. Because the high level of sugar allows a
person to suffer from diabetes and this will make customers not buy this
product that contain high sugar which threatens their health.

3.3 Strategies of benchmarking

Among recommendations to VICO to provide the strategy . include

i. The strategy of VICO should do more analysis to the product that can
improve the quality of the product. Not only that it also help to define
marketing options in term in price ,product, and promotion so that offering
meets a specific customer need and demand. Marketing strategy can
gives maximum profit of the firm ant the maximum of value to the
consumer.
ii. VICO can plan in establishing a new strategy in creating a new sales
method such as selling drinks in a drink van or truck to attract more
customers and give customers pleasure in making purchases where they
can get VICO anywhere. With this sales method it will gain an advantage
and help promote their products.
iii. MILO has generate a new collection to their product and it is not
impossible for VICO to make the same point to make a new kind of
collection such as cookies and ice cream. In improving a product or adding
a new product collection, it can further increase demand from customers
and increase marketability in addition to showing trust in customers that
this product is always their choice.

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4.CONCLUSION
In conclusion, many business rely on their marketing strategies include Concentrated
strategy. It helpful to analysis the competition . a marketing should be one that gives
maximum profit to the firm and at the same time offers maximum value to the
consumer. Business marketing is a model the way in which take a new product or
service to market. It helps to define marketing options in terms of price, product,
promotion, and place so that offering meets a specific customer need or demand.

Business competition is the contest between organization that provide similar product
with the same target and different strategy . convert customers , increase revenue and
more market share are one of the advantage to a business that have achieve their
goals business. With a high level business it can make quality products and services
by encourage the company to improve their performance so it can fulfill the demand
and needs to their customers and to have a good communication and relationship
between customers.

From this assignment , I can conclude that, they are so different that VICO has less
trust in customers than milo. Company VICO has tough competitors to deal with. it
does not mean that this product sales will end because this company can still continue
its efforts and do not surrender to fate at all because there is no single product that
will last in business, the up and down of sales or products is a very normal thing.
However , Malaysians have more experience in buying this milo product compared to
VICO because of certain reasons.

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5. REFERENCES

1 . "The MILO® Background | Nourishing Goodness | MILO® Malaysia."

From https://www.milo.com.my/nourishing-goodness/the-milo-story.

2. "Complete Marketing Mix of Nestle with 4Ps in Detail | IIDE." 25 Mar. 2023,

from https://iide.co/case-studies/marketing-mix-of-nestle/.

3."Relaunch Nestle MILO - SlideShare." 25 Mar. 2014,

From https://www.slideshare.net/SonyMathews/relaunch-nestle-milo.

4. "Switch to Paper Straw | Products | MILO®."

From https://www.milo.com.my/switch-paper-straw-products.

5. "Milo wins ‘Most Outstanding Junior Sports Promoter of the Year’." 25 May. 2017,

From https://www.nestle.lk/media/pressreleases/milo-wins-most-outstanding-junior-
sports-promoter-of-the-year.

6.From"Awards and Achievements | Nestlé Malaysia."

From https://www.nestle.com.my/aboutus/nestle-my/awards-achievements.

7."Milo, Ovaltine, Vico and Horlicks – Which is the better beverage?." 08 Feb. 2018,

From https://dpointernational.com/food-industry-news/health-nutrition/milo-ovaltine-
vico-horlicks-which-is-the-better-beverage/.

8."Vico N Milo [k546k0v919l8] - Documents and E-books."

From https://idoc.pub/documents/vico-n-milo-k546k0v919l8.

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