Nestle Omega Plus: Market Analysis, Competition, and Strategies

This report provides a comprehensive analysis of Nestle Omega Plus milk powder, focusing on its market position, competition, and marketing strategies. The report begins with a product description, including its levels and product category. It then delves into the competitive landscape, analyzing the level of competition using Lehmann and Winer's model and Porter's Five Forces. A perceptual map illustrates Nestle Omega Plus's positioning relative to competitors. The report examines the attractiveness of milk powder to adults and analyzes factors influencing market demand. It also includes a competitor analysis, identifying strengths and weaknesses. The report concludes by discussing product objectives and providing recommendations. The analysis covers the Malaysian market, offering insights into consumer behavior, market dynamics, and the challenges and opportunities for Nestle Omega Plus. References include key marketing and product management texts.

Running head: MILK POWDER
Milk Powder
Student Name
2/25/2020

MILK POWDER 2
Contents
Introduction.................................................................................................................................................1
Product description......................................................................................................................................1
Level of products.....................................................................................................................................1
Competition.................................................................................................................................................3
Level of Competition...............................................................................................................................3
Other Two Models...................................................................................................................................4
Porter Five Forces................................................................................................................................4
Threat of New Entrants:.......................................................................................................................4
Bargaining Power of Consumers:........................................................................................................5
Bargaining power of Suppliers:...........................................................................................................5
Threat of Substitute.............................................................................................................................5
Intensity of Competitive Rivalry:.............................................................................................................5
Perceptual Mapping.............................................................................................................................5
Section 4......................................................................................................................................................7
Attractiveness..........................................................................................................................................7
Competitor Analysis....................................................................................................................................8
Product Objective....................................................................................................................................9
Conclusion.................................................................................................................................................10
References.................................................................................................................................................11

MILK POWDER 3
Introduction
The product Nestle Omega Plus milk is having the high level of calcium which contains
ACTICOL. The product contains 1.2g of the plant sterols that is scientifically proven to lower
down the level of cholesterol because it blocks the bad cholesterol from entering into the blood
stream. The consumption of two glasses of Nestle Omega Plus in a day that helps in fulfilling the
hundred percent of your daily calcium needs which contains the right amount balance of Omega
3 & 6. The company launched this product in Malaysia in the year 2016 and the company is
working in Malaysia since 2012. The company’s Malysian SIC code is 2038 (Finkelstein et al.,
2019).
The objective of this report is to discuss about the product called Nestle Omega Plus as what
marketing strategies they have adopted and what is the level of competition of the company ion
the market. In this it will be discussed that how the company will face the competition in the
market. In the following part there will be detailed analysis about the product, its levels,
category, competition level in the market, how milk powder is attractive and competitor’s
analysis.
Product description
The product Nestle Omega plus should be more defined in a specific way in two parts that is:
Level of products
There are five layers of the level of product that is given by Lehmann and Winner
 At heart is the "central or generic" component, the simple product or service that the
consumer is actually buying, and what the advertisers need to see as a profit. A hotel
guest buys "rest and sleep," an airline traveler buys "fast transportation," and buying a
drill is like purchasing "holes." In the Nestle Omega Plus the consumer buys the low fat
milk powder.
 In the second level the marketer of the product that turns the core benefit of the product
into the basic product. The Nestle provides the important components such as protein,
calcium etc.

MILK POWDER 4
 In the third level when it comes to the expected product that what are the attributes and
conditions of the said product that what the buyers expect when they have purchase the
product. The product Nestle Omega Plus that the product has healthy components with
the manufacturing and expiry date of the product.
 In the fourth level that helps in enlargement of the product that has exceeded the
expectations of the customer. A large number of benefits and expectations are added.
 In the fifth level is about the potential product that helps in the encompasses of all the
possibilities of augmentations and transformations of the product which undergoes in the
future.
 Nestle must look for the newly innovative ways to satisfy the customers and must
distinguish the offer made by them (Lehmann and Winer, 2005).
Type of product category
The product category is divided into different segment such as, hospitality, functionality, and
need of consumers, customer preferences, convenience, quality,performance, and
premiumisation and so on. Therefore, in order to analyze the product category of Omega Plus, it
has been identified that such milk powder comes in the category of dairy products. Milk powder
is used as a substitute of fresh milk. As demand is rising in adults for milk powder the
availability is also increasing and now it is very convenient product. It also called as basic
requirement for adults. Convenience covers the fast moving consumer goods. Therefore, Omega
Plus covers the product category of Convenience in the market that helps in satisfying the overall
basic demand of the consumers in an effective as well as in an efficient level (Steinhauser,
Janssen and Hamm, 2019).
Competition
Level of Competition
In the Malaysian market there are various market leaders in Milk product such as Dutch Lady,
Anchor Milk Powder and Himalaya Quisto milk powder for adults. There are various other local
brands that have also a good market stake.

MILK POWDER 5
The level of competition theory given by Lehmann and Winner that reveals the intensity of
competition that the brand Nestle Milk Powder is facing from the brand Himalaya Quisto,
Anchor and Dutch Lady.
(Lehmann and Winner, 2005)
The direct form of competition is mainly comes from the Product from Competition. In the
Model the company includes the general brands that provides milk powder that are Anlene,
Himalaya Quisto, Anchor and Dutch Lady as all these brands are providing the similar products
as the company has been providing (Singh and Alazmi, 2019).
The second is Product Category competition which is the most threatening form of competition.
It includes the big brands that have captured the market such as Ensure Original and, Anchor etc.
Anchor Milk Powder
Nutrient Foods
Minute Maid
Dutch Lady
Anchor
Himalayan Quisto
Bottled
water Ensure Original
Juices
Wine
Fruits
Product
form
competitio
n: Diet
colasProduct
category
competitio
n: Soft
drinksGeneric
competitio
n:
Beverages
Budget
competition
: Food and
entertainme
nt

MILK POWDER 6
The third is Generic competition as it is not direct competition but it is threatening as the
customers of these are same as milk products for example the products that provides proteins,
calcium like minute maid.
The fourth competition is Budget Competition as the most general competition is arrived from
the budget competition level of model. This model identified that the consumers can spend in
other commodities rater then spending in the Nestle Omega Plus. In this category identification
the things been identified are Nutrient foods, Fruits etc (Lehmann and Winner, 2005).
Other Two Models
The two other models that can be used to analyse the level of competition in the market are:
Porter Five Forces
Porter's Five Forces is an industry or segment framework that examines competitive market
forces. It helps the individual assess a sector or market according to five components:
newcomers, purchasers, suppliers, replacement companies and competitiveness. These are key
forces which directly affect the extent to which a company faces competition in an industry,
according to Michael Porter's model (Riasi, 2015). Therefore, in order to analyse the competitive
market of Malaysia for Nestle Omega Plus, it has been found that:
Threat of New Entrants:
The threat of new entrants in such market for basic product is high due to the main reason, the
milk powder is high in demand that attract new companies to entre in such market to the certain
extent.
Bargaining Power of Consumers:
The bargaining power of consumers is high in such industry due to the reason the consumers has
lots of option in brands as well as the switching cost is also low that provoke the consumers to
bargain in the market (Suhaimi et al., 2017).
Bargaining power of Suppliers:
The bargain power of suppliers in Malaysia is low as the milk processors depend on one of the
main raw materials –milk. The milk processors do not have basic replacement inputs. The milk

MILK POWDER 7
industry must be confronted with milk farms' negotiating position. Although the integration of
milk farms into processors in the Malaysia is not significantly vertical, the supply chains are
based on long-term contracts (Gandola, et.al, 2019).
Threat of Substitute
Natural milk powders are more competitive when other products are used to make milk powder (
such as soya, oat, rice, artificial aromas). It's possible that this pattern is rising.
Intensity of Competitive Rivalry:
Milk power is highly demanded in the market therefore, most of the leading companies such as
Carnation Non-fat Dry Milk, Dutch Lady, Anchor Milk Powder and Himalaya Quisto has
captured market at greater level that enhance the level of competition among them to the certain
extent (Nadira et al., 2017).
Perceptual Mapping
Perceptual Mapping applies visually to the individual product's views of rival alternatives. The
mapping of positioning is also known as positioning, because it shows your brand, product and
services against company’s competitors position (Sarfrazand Stiefelhagen, 2017).
Nestle Omega Plus
Carnation Non-fat Dry Milk
Himalaya Quisto
Anchor Milk Powder
Low PriceHigh Price
High Quality

MILK POWDER 8
Low Quality

MILK POWDER 9
In order to analyze the Perceptual Map of Nestle it has been found that Nestle Omega Plus cover
the segment of high quality and low price due to the main reason, Nestleand Himalaya Quisto is
one of the known brand as well as it majorly focus over the quality of the product. The price of
Nestle Omega Plus and and Himalaya Quistois lower than other brand that enhance the level of
competition. Furthermore, Carnation Non-fat Dry Milkcover in the segment of high quality and
high price due to the main reason, they deliver quality product in the market however, and their
prices are higher than Nestle Omega Plus to the certain extent. Furthermore, Anchor Milk
Powder is consider as low quality product that is why it cover in the segment of high price and
low quality that create less competition to Nestle Omega Plus (Krawczykand Xiang, 2016)
Section 4
Attractiveness
The milk powder in adult’s life plays a very prominent role. The milk powder has bunch of uses
and adults find this a useful item. The adults are attracted to milk powder due to the following
reasons such as: aids in cleaning of skin acne, nourishment of the face skin and acts as a cleanser
and it contains healthy items. Moreover, now there is no difficulty in storing of milk powder
which arises with the consumption of fresh milk. The milk powder usage is unlimited and it
comes in wide variety of forms like buttermilk, dry whole milk and non fat milk. Those who
cannot intake it directly can use it differently by mixing with other drinking items (Raji et al.,
2017). There are some factors which have influence on the milk powder such as:
Aggregate Market factors: it is a factor to determine the price level in the country such as
Malaysia and includes the level of production. It aids in analyzing product condition in the
market such as size, share in market, consumption etc. the market size of milk powder is
expanding. There is an increase in number of consumption of milk powder by adults.
Furthermore, it is the basic need therefore; the market share of milk powder is high. The product
of Nestle Omega Plus will take help from this factor to expand its market in Malaysia. It helps
the company to expand its market range and to make the pricing policy in the country (Lim,
Jamaluddin, Hazizi, and Chieng, 2018).

MILK POWDER 10
Category Factors: it refers to the methods of having in depth-knowledge of a particular product
in the market. It will aids in reflecting the size of market of milk powder, its growth and
moreover its spreaders all over the world. The most attractiveness is reflected by category factor.
It shows that the demand for milk powder is rising and its consumption from past times is also
increased. With the use milk powder there is increase in per capita disposable income.
Furthermore, there is longer shelf life compared to fresh milk and it also supported in reducing
the wastage. The product of Nestle Omega Plus helps ij emerging as the market leader (Priharti,
Samat, Yasir, and Garba, 2016).
Environmental Factors: these are external features which influence or put an impact on the
product. These can be macro or micro. Mainly the macro factors put an impact on production of
milk powder. The better climatic conditions support milk powder production at large level. There
is a big role in production of milk on environmental factors if they are favorable then there will
no difficulty. The environmental factor is a very important for a company like Nestle to follow
the certain procedure (Jaudzems, Zhang, Bolong, Bao, and Xiao, 2019).
Moreover, the main attractiveness of milk powder is its high demand from adults.
Competitor Analysis
It can be considered as a strategy to determine the strengths and weaknesses of current
competitors and their potential. It is the foremost important tool to be considered while doing any
business. It helps to know about competitors therefore, company can plan strategies to compete
with them. There are number of competitors of Nestle Omega Plus m in Malaysia.
The competitors of Nestle Omega Plus that areAnchor Milk Powder,Dutch Lady and Himalaya
Quisto milk powder for adults. These have captured the Malaysia market in a very strong way.
There are some specialties of these products:
Anchor Milk Powder: - The product is claimed to have 100% milk credentials. The taste of the
product is rich and creamy. The product contains the high protein and calcium and it is enriched
with vitamin A, C, D and Iron. However the company does not market what Nestle does it states
that it is low fat milk powder that helps it controls the cholesterol or lowers down the cholesterol.

MILK POWDER 11
Dutch Lady:- It contains vitamin A + D, the milk powder dissolves easily in cold water. It has
full rich flavor. It has a shelf life of 36 months. The company has able to attract people for their
product. It gives huge competition to Nestle as the quality and taste of the product is better than
Nestle.
Himalaya Quisto- It includes 3 way protein mixes, concentrate, isolate and hydrolyses for faster
absorption for Himalayaquisto features picture result, fortified with peptides and tureen that
minimize workout post-injury and hasten recovery. Quista Pro is enriched with herbal active
ingredients that develop bone health, build endurance and stamina. It ingredients and schemes
match with the Nestle and it cover a huge market as equal to Nestle. The company faces high
competition from this product (Cruijsen, Poitevin, and Brunelle, 2019).
Nestle Omega Plus: The Nestle Milk Powder has high level of calcium that contains Anticol
which is the unique feature that differentiates the company from other brands. The company
claims that it helps the ladies to consume their hundred percent of the calcium consumption for
the day. It has the huge demand in the market due to it enriched protein.
Product Objective
The objective of the Nestle Omega Plus and their competitors to provide nutrition to adults
through their milk powder. The main objective of Nestle Mega plus that it controls the level of
cholesterol in the body and also blocks the bad cholesterol to entering into the blood.
Target Segments:- The target segment of the product is majorly adults people who need
nutrients, calcium A, C, D and iron which is very much required among adults. Therefore these
products help the adults to get these nutrients from just a milk powder that is very easily to drink.
Product Value Strategy:- The competition is high but the target market is also very high.
Therefore the companies to make their turnover big provide the product in a very effective price.
The companies to attract more customers put the price very nominal and that has helped the
company in emerging as the big brands in the market.

MILK POWDER 12
Technology Strategy:- The technology strategy is becomes important for every brand to grow at
a larger scale. The companies through technology have expanded to various countries and people
can order the product from various online stores such as Amazon and various other online stores
through the help of the technology (Finkelstein, Ang, Doble, Wong, andvan Dam, 2019).
Conclusion
It can be concluded that there are various products is in the market for the adults. The Nestle
Omega plus is the leading brand in the adults which provides high calcium milk powder. The
company has various competitors in the market and the company is facing huge competition.
There are five layer of level of products that has been given by Lehmann and Winner. The
product comes in a specific product category that has been described in the report. It is also
described the competition level model that is given by Lehmann and Winner. The other two
models of competition have also been described in which in every model has some
specifications. The effectiveness of the Nestle Omega plus in the market has been described in
which the factors that affect these market like aggregate market factors which determine the
price factors in the country. The category factor defines the in depth of the certain product. The
environmentfactor that requires the product should been environment friendly.