Analysis of Nestlé’s Marketing Approach Through Milo Cricket Program

This report will describe and analyse Nestlé’s marketing approach as the one of world’s largest food and beverage businesses, through Milo Cricket program. Furthermore, it will use applicable theories to support the reasoning and evaluate how Milo Cricket is engaging to the Australian society and market by explaining Specialization, Embedded exchange, and Relational trust. And also will provide Milo Cricket event sequencing map and drawn theoretical framework (Popplet map).

Specialization

Specialization is starts with skills, knowledge and new ideas which creates wealth but not necessarily allocates it. Specialization is one of the important aspects of marketing structure, which perfectly fits in marketing system; and focuses more on macro level of marketing and increases efficiency, effectiveness and productivity of the workforce and also develops economic growth. As Layton (2009) explains that the outcome of specialization is involving more people, developing trade networks, linking communities and introducing cultural change and diversity; and also points out how trough this changes, marketing systems:

Emerge

Grow

Adapt

And evolve

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

Embedded exchange

In marketing system, Embedded exchange is one of the set activities that creates value for customers, clients, partners and society at large. According to Bovee & Thill, the exchange of value, and lasting relationships are essential elements of successful marketing.

The purpose of embedded exchange is to make long-term relationship with the customers by offering more than just assortment, and also present a great experience to make the customers involve emotionally, on top of meeting the reciprocity’s aspects. However, in the today’s modern world and the competitive environment; developing relationship and gaining costumer reliability, both individuals and groups has a critical role in the success of marketers. Embedded exchange is also enables multiple organizations to collaborate and exchange knowledge to meet society’s needs and wants in macro level and create economic growth. Due to this view, Uzzi has conceded that embeddedness creates economic opportunities that are difficult to replicate through markets, contracts or vertical integration.

Relational trust

In the model that authors of “Brand community engagement in Taiwan” propose, brand community engagement has three levels of antecedents which are individual, relationship, and group, which 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 standing when one party has confidence in an exchange partner’s reliability and integrity. Trust among community member increases the likelihood of constant and long-lasting engagement in the brand community within this theoretical framework, moreover, relational trust encourages exchange and brings down the risk of opportunistic behavior.

In support the role of trust in brand community participation Kotler and Keller, indicates that most research and studies has shown that stablishing trust is a requirement to enjoying healthy long-term relationships. Therefore, to achieve this objective, firms should have marketing vision that encourages: establishing corporate trust, credibility, and reputation.

Discussion

Milo cricket program has been participating in the Australian cricket community and also its society, for more than 2.5 decades. Milo cricket divides into two programs; Milo in2cricket which offers kids aged 5 – 8 years and Milo T20 Blast for kids aged 8 -12, without considering their gender.

On the subject of specialization, as its presented in mentioned video in above, Milo has a big influence on Australian culture and society, by inviting young kinds to come along at clubs and schools, regard less of being girl or boy and multicultural communities. In fact, Milo is more encouraging and welcoming girls to come on the grand and learn new skill to address the existence of diversity in its nature. Also Milo, proudly introduces their female ambassador on its website. Milo cricket getting huge response from its consumers over time and only Milo in2cricket has over 163,000 kids participating and been introduced more than half a million of Australians to cricket.

Regarding to the theory of Embedded Exchange, Milo cricket has a positive role in last 25 years in Australian’s social life both juniors and adults, by getting young kids away from computer, smart phone and TV and bring them to outside plying and give them opportunity to socialise, make friends and, learn new skill and take something new to their back yard, besides providing parents to be less worry about their kids health and social life and similarly they will be able to collaborate and socialise with other parents. Milo cricket has been running on voluntary base and Australian cricket staff which shows the embeddedness that meets reciprocity aspect.

Relational Trust theory has critical role in Milo’s success over years, in the video has proposed to show the connection of this theory, Minster of Sport has announcing that Milo cricket has been successfully gained the trust of society and more importantly government, and also has been admired by them. As a result, government has allocated founding to this program to continue the great opportunity Milo has providing to the young generation of Australia.