Competition Puts Pressure on Established Beverage Brands
Milo, the chocolate malt beverage produced by Nestlé, has a long history in Indonesia. The product entered the Indonesian market in 1974 and began local production at Nestlé's Karawang factory in West Java in 1980. Milo is positioned as a vitamin- and mineral-fortified chocolate malt drink associated with active children and adolescents. More recently, the brand has introduced initiatives involving sugar reduction, plant-based alternatives, and the higher-protein Milo Pro variant.
The Indonesian packaged beverage market has continued to develop alongside increasingly practical lifestyles. The article cites Indonesian Soft Drink Industry Association data showing 3.1% annual industry growth in 2023, while a 2024 GoodStats survey reported strong consumer preferences for UHT milk and other practical dairy products. Taste, nutritional content, and convenience were identified as important considerations in beverage purchasing.
At the same time, Milo faces strong competition. The study notes that Milo's Top Brand Index fluctuated between 4.8% and 7.6% from 2021 to 2025, below several competing dairy beverage brands. The researchers also point to brand-image challenges arising from social media-driven boycott campaigns involving several Nestlé products toward the end of 2023. These developments demonstrate that consumer perceptions can be influenced not only by product characteristics but also by broader social issues.
How the Study Examined Milo Consumers
Muhammad Raka Alghifari and Shinta Rahmani collected data from June 2025 to May 2026 among prospective Milo consumers living in DKI Jakarta. The study used a quantitative causal design without manipulating the respondents' circumstances.
The researchers obtained responses from 160 participants, exceeding the minimum sample requirement of 77 participants calculated through G*Power. Participants were selected using purposive sampling, meaning respondents were specifically chosen because they lived in DKI Jakarta and had an interest in purchasing Milo products. Data were collected through Google Forms using a five-point response scale.
The responses were analyzed with SmartPLS 4.0. Rather than relying on complex statistical terminology, the analysis essentially tested whether differences in consumers' perceptions of brand image, product quality, and price were associated with differences in their willingness to purchase Milo.
The respondent group was predominantly young. About 70.6% were aged 21–25, while 77.5% were students. Women represented 53.8% of the sample and men 46.3%. Nearly half of respondents reported monthly income below IDR 1.5 million, making the sample particularly representative of young, student-dominated consumers rather than the entire Jakarta population.
Product Quality Leads the Three Purchase Drivers
The central finding is that all three factors—brand image, product quality, and price—significantly increase consumers' purchase intention.
Product quality was the strongest factor. Its relationship with purchase intention produced a coefficient of 0.415, a T-statistic of 7.534, and a p-value below 0.001. The effect was classified as large in the study's effect-size analysis.
Brand image also had a significant positive effect. It recorded a coefficient of 0.352, a T-statistic of 6.249, and a p-value below 0.001. Respondents particularly recognized Milo's distinctive characteristics compared with competing products.
Price had the smallest effect, but it remained statistically significant. The price-to-purchase-intention relationship recorded a coefficient of 0.339, a T-statistic of 6.474, and a p-value below 0.001. Respondents gave the highest price-related score to Milo's competitiveness against rival products.
Together, brand image, product quality, and price explained 68.4% of the variation in purchase intention, while the remaining 31.6% was associated with factors outside the study's model. The model also demonstrated predictive relevance, with a Q-Square value of 0.668.
What Consumers Liked—and What Could Improve
The detailed responses provide clues about what matters to Milo consumers.
For brand image, the strongest perception concerned Milo's distinctive characteristics compared with competing products, with a mean score of 4.169. Brand recall received the lowest score at 3.712.
For product quality, ease of serving and using Milo received the highest mean score of 4.169. However, consistency of product quality during storage received the lowest score, at 3.725.
For price, competitiveness against other products scored highest at 4.175. The lowest score, 3.719, concerned whether the price matched the value consumers felt they received.
These findings suggest that maintaining product performance and consistency may offer greater benefits for purchase intention than focusing on price alone.
Implications for Nestlé and Beverage Marketing
The findings provide a practical message for Nestlé: product quality should remain at the center of Milo's marketing and product strategy in Jakarta.
The researchers recommend strengthening quality control so that consumers experience consistent product quality throughout storage. They also recommend improving brand recall through consistent marketing communication, distinctive packaging, and creative social media campaigns.
Price remains important, but the study suggests that consumers are also evaluating whether the product delivers sufficient value. Product sizes, product variants, and promotional strategies could therefore be used to strengthen consumers' perception of value for money.
As Muhammad Raka Alghifari and Shinta Rahmani of Universitas Mercu Buana indicate through their findings, Milo's established brand identity matters, but the quality consumers experience with the product has the strongest connection with their intention to buy.
The findings should nevertheless be interpreted within the study's scope. The respondents were limited to DKI Jakarta and were selected purposively. The study also used a cross-sectional approach, capturing consumer perceptions during a particular period. The authors suggest that future studies could examine other regions, broader respondent groups, and additional factors such as trust, promotion, and brand awareness.
Author Profile
Muhammad Raka Alghifari is affiliated with Universitas Mercu Buana and served as the corresponding author of the study. Shinta Rahmani is also affiliated with Universitas Mercu Buana. The article identifies their institutional affiliation but does not provide their individual academic degrees or detailed personal fields of expertise. Therefore, no degree information is added here beyond what is documented in the source.
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