Analysis of Nestlé’s Marketing Approach Through Milo Cricket Program

Analysis of Nestlé’s Marketing Approach Through Milo Cricket Program

Specialization

Specialization begins with skills, knowledge, and new ideas which create wealth but do not necessarily allocate it. Specialization is a critical aspect of the marketing structure, fitting perfectly within the marketing system. It focuses more on the macro level of marketing and increases the efficiency, effectiveness, and productivity of the workforce, while also fostering economic growth. As Layton (2009) explains, the outcome of specialization involves engaging more people, developing trade networks, linking communities, and introducing cultural change and diversity. This process illustrates how marketing systems:

• Emerge
• Grow
• Adapt
• Evolve

Gudeman (2001) has introduced Autarchic systems and explains that these systems may drift towards emergent systems as the benefits of specialization are exploited. This process is influenced by the increasing diversity over time of household needs and wants, population growth, and agglomeration. Gudeman's statement aligns with the Smith-Young term, which posits that diversity and specialization mutually interact to provide a mechanism for growth.

Embedded Exchange

In the marketing system, Embedded Exchange is a set of activities that create value for customers, clients, partners, and society at large. According to Bovee and Thill (2016), the exchange of value and lasting relationships are essential elements of successful marketing. The purpose of embedded exchange is to establish long-term relationships with customers by offering more than just an assortment and providing a great experience that emotionally involves customers, while also meeting reciprocity's aspects. In today's modern world and competitive environment, developing relationships and gaining customer reliability, both among individuals and groups, play a critical role in marketers' success. Embedded exchange enables multiple organizations to collaborate and exchange knowledge to meet society’s needs and wants on a macro level, thereby creating economic growth. Uzzi (1997) has conceded that embeddedness creates economic opportunities that are difficult to replicate through markets, contracts, or vertical integration.

Relational Trust

In the model proposed by the authors of “Brand Community Engagement in Taiwan,” brand community engagement has three levels of antecedents: individual, relationship, and group, based on qualitative results and an extensive literature review. Relational trust is one of the two relational-level factors and relates positively to member interaction and activity involvement. Morgan and Hunt (1994) define relational trust as existing when one party has confidence in an exchange partner’s reliability and integrity. Trust among community members increases the likelihood of constant and long-lasting engagement in the brand community within this theoretical framework. Moreover, relational trust encourages exchange and reduces the risk of opportunistic behavior. Supporting the role of trust in brand community participation, Kotler and Keller (2012) indicate that most research and studies have shown that establishing trust is a requirement for enjoying healthy long-term relationships. Therefore, to achieve this objective, firms should have a marketing vision that encourages establishing corporate trust, credibility, and reputation.

Discussion

The Milo Cricket program has been participating in the Australian cricket community and its society for more than 2.5 decades. Milo Cricket is divided into two programs: Milo in2Cricket, which offers activities for kids aged 5 – 8 years, and Milo T20 Blast for kids aged 8 - 12, irrespective of their gender. Regarding specialization, as presented in the aforementioned video, Milo has a significant influence on Australian culture and society by inviting young children to join clubs and schools, regardless of being a girl or boy or from multicultural communities. In fact, Milo is more encouraging and welcoming girls to come onto the ground and learn new skills to address the existence of diversity in its nature. Additionally, Milo proudly introduces their female ambassador on its website. Milo Cricket has received a huge response from its consumers over time, with Milo in2Cricket alone having over 163,000 kids participating and having introduced more than half a million Australians to cricket.

Regarding the theory of Embedded Exchange, Milo Cricket has played a positive role over the last 25 years in Australian social life for both juniors and adults by getting young kids away from computers, smartphones, and TVs, bringing them outside to play, and giving them the opportunity to socialize, make friends, learn new skills, and take something new to their backyard. This also provides parents with peace of mind regarding their kids' health and social life, while enabling them to collaborate and socialize with other parents. Milo Cricket has been running on a voluntary basis with the support of Australian cricket staff, showcasing the embeddedness that meets the reciprocity aspect.

The Relational Trust theory has played a critical role in Milo’s success over the years. In the video proposed to demonstrate the connection of this theory, the Minister of Sport announced that Milo Cricket has successfully gained the trust of society and, more importantly, the government. As a result, the government has allocated funding to this program to continue the great opportunity Milo provides to the young generation of Australia.

References

• Bovee, C. L., & Thill, J. V. (2016). Business communication today. Pearson.
• Gudeman, S. (2001). The Anthropology of Economy: Community, Market, and Culture. Blackwell Publishing.
• Kotler, P., & Keller, K. L. (2012). Marketing Management. Pearson.
• Layton, R. A. (2009). Marketing systems: A core macromarketing concept. Journal of Macromarketing, 29(3), 227-244.
• Morgan, R. M., & Hunt, S. D. (1994). The commitment-trust theory of relationship marketing. Journal of Marketing, 58(3), 20-38.
• Uzzi, B. (1997). Social structure and competition in interfirm networks: The paradox of embeddedness. Administrative Science Quarterly, 42(1), 35-67.