MAPPING BENCHMARKING
Dairy & Beverage Market Opportunity versi TETRAPAK
Key Trends Urbanization 50% population will live in big cities Health Looking for value of quality and freshness Cost Consciousness Affordability and convenience Fragmented Distribution Available and accessible at both traditional and modern outlets
Indonesia A&B AND 15 Million A & B Consumers C&D Consumers 210 Million C, D & E Consumers Modern AND 3,000 Outlets Traditional Trade Premium, Value AND Emerging Portfolio 2,000,000 Outlets
CSD 9% JNSD 2% Indonesia Packaged Ready To Drink 2003 LDP 4% RTD Tea 13% Sport & Energy 2% Beer 3% Soya 0% Water 67% Consumption in million liter (exclude powder, concentrate, syrup and bulk) Water 3,585.7 Liquid Dairy Product 215.1 JNSD 108.3 CSD 507.3 RTD Tea 672.3 Sport & Energy 109.2 Beer 146.8 Soya 10.3 Total 2003 5,355.0 Source : Tetra Compass 2004
Growth Platforms Safety Health Nutrition HEALTH GROWTH PLATFORM Basic quality Functional benefits Nutritional benefits Branding Urbanization Mobility ON-THE-GO GROWTH PLATFORM Availability Ambient products Traditional trade Infrastructure Branding Big and Young Population KIDS GROWTH PLATFORM Attractiveness Impulse purchase Fun elements Branding
Players in RTD tea category Which are the top global players for RTD tea today? 1. Unilever Group 10.4 % 2. Kirin Brewery Co 3. Nestlé SA 4. Suntory Ltd 5. Ito En Ltd 7.8 % 7.6 % 6.7 % 5.4 % 6. Asahi Breweries 7. Coca-Cola Co 8. Uni-President 9. Ting Hsin Int. 10. Sinar Sosro PT 4.9 % 4.8 % 4.5 % 4.5 % 3.5 % NB: Other players: 39.9% 0% 2% 4% 6% 8% 10% 1/ Global IKAM 2/ Regional IKAM Source: Euromonitor IMIS 2000
What trigger Indonesian Consumer to consume RTD Tea? Refreshing Affordable Non carbonated Drinking habit Thirst quencher Availability Generic product
900 800 700 600 500 Tea Drinks Opportunities & Category Size (mio litres) 584 655 685 672 685 704 729 Challenges 755 781 400 300 200 100 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 Category drivers and opportunities Segment expected to reach 781 mio liter in 2008, driven mostly by Sosro, followed by Coke & Pepsi. Growing segment & healthy competition. Modern Trade drive one way pack penetration. Moisture tolerant pack can enter traditional trade.
Product Positioning Opportunity REASON/MOTIVATION FOR CONSUMPTION Strong Healthy Appeal TREND (COOL) Green Tea Fruit Flavored Green Tea INDULGENCE / TREAT Junior Tea BASIC Children Teen Young Adult Adult Target Market by Age
,D RTD JNSD Mapping 100% Juice Price Level Low Medium Premium Value Added Juice Junior Juice Fortified Juice Drink Flavored Drink A,B C+ C+ C-,D Low Medium Market Size High
Understanding in the Indonesian Consumers Soya Bean Milk Market Qualitative = 2 FGD Quantitative = 507 interview 2002 Copyright Taylor Nelson Sofres 2002. All Rights Reserved
40 Indonesian Consumer : Reason for never drink Soya Milk at all 30 20 10 0 Don't know Don't like the product the smell/aroma Don't like the taste Difficult to obtain Indonesian Consumer : Reason for not drinking Soya Milk in the past 1 month 50 40 30 20 10 0 Don't like Don't like Difficult to the taste the smell/aroma obtain
Soya Mapping Premium Affordable Health Traditional Fortified Plain Traditional Soya Soya Market Plain Soya in TCA/TFA (Distribution driven) Health Refreshmen t Modern Non Soya Drinker Market Flavored Soya Flavored Soya in TCA/TFA (Distribution driven)
350.0 Liquid Flavored Milk 300.0 250.0 200.0 Million Liter 150.0 100.0 50.0 0.0 80.5 93.5 113.2 132.6 157.0 The market is expanding at 18% p.a 292.5 More segmentation and value added milk had been introduced, extension 251.2 from powder milk Mostly packed in portion size, 214.5 interestingly smaller kiddy pack (in 125183.8 ml) becoming popular Chocolate is still the most popular flavor, followed by strawberry Increased penetration of affordable milk for lower segment including school feeding program Intensive marketing campaign toward the nutritious and convenience 2000 2001 2002 2003 2004 2005 2006 2007 2008 Source: Tetra Compass 2004
Liquid Flavored Milk Consumption 2003 By Process Consumption 2003 By Packaging 25.9 21.8 29.8 76.9 UHT Sterilised Chilled 0.5 29.8 80.4 Carton HDPE Can Cup Source: Tetra Compass 2004 The Drivers Mainly considered as beverage milk, but increasing volume of GUM and value added milk UHT growing at around 18% mainly targeted to children Chilled segment is mostly supplied by the milk cooperatives through direct distribution (low cost & low quality) Sterilised milk is expanding due to higher penetration to traditional trades The Packaging Drivers Carton continues lead the market mainly in 200 ml size HDPE is gaining the share through distribution driven by 2 big players Plastic cup in chilled form mainly being used by few milk cooperatives for direct distribution targeted to lower income
Liquid Flavored Milk 350 300 250 200 150 100 50 0 Value Added Basic 175.5 53.0 39.6 28.1 24.2 117.0 56.4 65.5 73.6 79.5 2000 2001 2002 2003 E2008 Source: Tetra Compass 2004 Dynamic of Value Added Milk Fortification and product enrichment are strongly expanding More segmented products targeted to different age group Stronger pace of extending the GUM powder into liquid Dominated by portion pack (125 and 200 ml) and chocolate flavor Higher penetration into rural areas through traditional trades
350.0 Liquid Flavored Milk 300.0 250.0 Affordability Availability Differentiation 251.2 292.5 200.0 214.5 Million Liter 150.0 100.0 80.5 93.5 113.2 132.6 157.0 183.8 50.0 0.0 2000 2001 2002 2003 2004 2005 2006 2007 2008 Source: Tetra Compass 2004
Liquid Cultured Milk Leading Brands Yakult (Yakult) Calpico (Ajinomoto Calpis) Nice (Indomilk) Vitacharm (Orang Tua) Market Drivers Going toward the functional drink Chilled will continue to grow Increased penetration of direct selling New players in ambient segment 14% 8% 0% Plastic Bottle Packaging Drivers Plastic bottle still dominates the category in chilled distribution Carton is increasing for ambient Carton Can Cup 78%
Product Positioning Opportunity REASON/MOTIVATION FOR CONSUMPTION ENHANCED NUTRITION GUM Value Added Milk TREND (COOL) Milk Shake Smoothie INDULGENCE / TREAT 100% Juice Yogurt Drink LAD BASIC Children Teen Young Adult Adult Target Market by Age
,D Opportunity Mapping Price Level Low Medium Premium Milk Shake Smoothie Value Added Milk Yogurt Drink LAD GUM Economic Milk A,B C+ C+ C-,D Low Medium Market Size High
RTD Dairy - Target of Opportunity Growing Up Milk (GUM) or Junior Milk Nutritional 3-10 year old Full cream & flavored Mother influencing Teenager Milk Healthy treat 11-17 year old Being unique and fun Active positioning Independent Young and Adult Milk Value added Good start for the day Seek convenience Premium = Value for money
Market Dynamic 2003-2004 2004 ENHANCED NUTRITION TREND (COOL) INDULGENCE / TREAT 100% Juice BASIC 2003 2004
Moci Es Krim Strong Healthy Appeal TREND (COOL) INDULGENCE / TREAT BASIC Children Teen Young Adult Adult
Permen Enting-Enting Strong Healthy Appeal TREND (COOL) INDULGENCE / TREAT BASIC Children Teen Young Adult Adult
PRODUCT CONCEPT (DEFINITION)
Product Concept Children Milk Product: Growing Up Milk Target market: 4-8 years (A&B class) Flavors: Plain, Vanilla, Chocolate, Strawberry, Honey Distribution: modern trades, provisional shops, school canteen Price: IDR 1,200-2,000 per pack Package: TBA125S and/or TBA 200S Lifestyle and emotional value: - Exciting and unique taste experience - Fun, cool and trendy - Truly satisfying, anytime, anywhere
Product Concept Teen Milk Product: Teenager Milk Target market: 10-17 years (A&B class) Flavors: Chocolate, choco malt, fruit based, yogurt drink Distribution: modern trades, provisional shops, sport complex Price: IDR 1,500-2,500 per pack Package: TBA 200S or TBA 250S Lifestyle and emotional value: - New indulgence experience - The milk I can enjoy - Convenience for on the move
Product Concept Adult Milk Product: Young and adult Milk Target market: >20 years (A&B class) Flavors: Plain, chocolate, yogurt Distribution: modern trades, provisional shops, convenience stores Price: IDR 2,500 3,000 per pack Package: TBA 250S or TBA 1000S Lifestyle and emotional value: - Contemporary - Maintaining good efficiency - Restoring vitality - Enjoy my life
Low Cost Milk Economical Milk White Milk Flavored/Sweetened Milk Target Segment: SES B & C Children Mother (decision/action) Distribution Traditional, Modern Direct Distribution Pricing: Rp.. 1,100 (between cups & TBA 200 S) Packaging: TFA 180/200 ml with Straw Hole
PENGEMBANGAN PRODUK versi NESTLE
Researchers recommendation Marketing s take out. Technical Brief What Management approved Promised to the trade After it s been through legal What the factory came up with What the agency billed us for How it was supported What the consumer really needed.
What is it? It is an organized process for the idea generation and conceptualization of product/packaging innovations combining Consumer input, Ideation and Product/Package prototyping resulting in a creative/innovative solution in a short period of time.
Consumer Input Ideation Session Solution Consumer evaluation/ feedback Rapid Prototyping
Consumer Input Consumer Research Consumer complaints Focus groups In-home testing Previous consumer research Other sources The overall shape of the NesQuik package does not warrant a re-design. The shape is ergonomically friendly and it is easy to store. The closure on the NesQuik package can be optimized. Opportunity areas for improvement include: A one-piece, flip-top lid; some consumers consider the current lid to be too difficult to remove. The lid should close with an audible click ; this enhances freshness perceptions. Pouring is an appealing option for many consumers, but it should not replace spooning. Some consumers prefer spooning, since it is less messy and gives the product user, especially children, better control of dosing. The ideal closure would offer consumers the option of spooning or pouring. There is little interest in lid mechanisms that provide a pre-measured serving of NesQuik. Most consumers want to customize the amount of NesQuik that they use to prepare chocolate milk for themselves and their children. Consider increasing the rigidity of the walls of the NesQuik package. Some consumers claimed that when they squeezed the package, powder leaked out from under the lid. The inclusion of a scoop in the package is a nice to have, but not essential. It would probably not justify a higher price. Do not pursue package options that provide play value as a reusability option. Play value does not appear to be a relevant benefit for consumers. Also, the options shown to consumers (i.e.,buckets, building blocks) had ergonomic disadvantages which outweighed and potential child appeal.
Consumer Input Ideation Session Solution Consumer evaluation/ feedback Rapid Prototyping
Ideation/Brainstorming Identify Goal/Wish/ Challenge Gather Data Clarify the Problem Generate Ideas Select & Strengthen Solutions Plan for Action
Consumer Input Ideation Session Solution Consumer evaluation/ feedback Rapid Prototyping
Rapid Prototypes Trial Kitchen for Products Outside Agency/Supplier for packaging mock-ups Speedy visualization of concepts Allows immediate consumer feedback
Consumer Input Ideation Session Solution Consumer evaluation/ feedback Rapid Prototyping
Consumer Evaluation/Feedback Immediate feedback on concepts Qualitative information for concept optimization
Consumer Input Ideation Session Solution Consumer evaluation/ feedback Rapid Prototyping