Increasing Market Penetration

Institut Teknologi Bandung - MBA

Marketing Management

Syndicate Number 4

The Issue:The Issue:

Anlene has 52% market share of high calcium Anlene has 52% market share of high calcium low fat milk industry .low fat milk industry .

The market size expanding along with the The market size expanding along with the increased awarness of osteoporosis among increased awarness of osteoporosis among Indonesian milk consumers.Indonesian milk consumers.

The other competitors has approached to 20% The other competitors has approached to 20% market.market.

Content

01 Status Quo Analysis

• Indonesian Milk Industry• Categorization of Adult Milk Market• Consumer Needs• Company-Analysis: ANLENE• The Competitor-Marketing Mix• The Challenge

02 Suggestion for Marketing Strategy

• Exploring New Market Segments• New Product/Packaging• Other Factors for Market Launch

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Status Quo Analysis

Indonesian Milk IndustryIndonesian Milk Industry

SegmentsSegments AdultAdult

Very Fast Growth in the last years (42%)Very Fast Growth in the last years (42%) ChildrenChildren InfantInfant Pregnant LactatingPregnant Lactating

SegmentsSegments 8 players in the indonesian milk industry in early 8 players in the indonesian milk industry in early

20062006

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Status Quo Analysis

Categorization of Adult Milk MarketCategorization of Adult Milk Market

NoFat/LowFat, Fresh Milk and Powdered Milk NoFat/LowFat, Fresh Milk and Powdered Milk Market (e.g. high-calcium milk market)Market (e.g. high-calcium milk market)

Liquid Milk Industry has higher production costs Liquid Milk Industry has higher production costs than Powdered Milkthan Powdered Milk

Modern Market is growing and at a dizzying rate Modern Market is growing and at a dizzying rate and our products are also available thereand our products are also available there

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Status Quo Analysis

Consumer NeedsConsumer Needs Majority of Indonesian milk Majority of Indonesian milk

consumers have preferences for:consumers have preferences for: Non-fat dry milkNon-fat dry milk Anhydrous milkAnhydrous milk

The demand for Non Fat/Low Fat The demand for Non Fat/Low Fat (NFLF) in milk category is growing (NFLF) in milk category is growing significantly in Indonesiasignificantly in Indonesia

Fresh milk is perceived as having bad Fresh milk is perceived as having bad qualityquality

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Status Quo Analysis

Company Analysis (Anlene):Company Analysis (Anlene):Market segmentation for adult Market segmentation for adult

milk productmilk productMarket share 2005-2007 : 50-Market share 2005-2007 : 50-

51%51%Highest market share : nearly Highest market share : nearly

60% (October 2007)60% (October 2007)

Anlene 4 P’s

ANLENE 4 P’s

Product

1. Clinically proven to prevent osteoporosis2. Introducing the low fat high calcium product3. Extended the product range from milk powder to liquid

milk4. Variety of product: yoghurt, soy milk, malted powder5. Offered many flavours: vanilla and chocolate6. Product size: 250 gr and 600 gr cartons

Price 15% higher than the lowest competitor price

Place 1. Most available in traditional market2. Also available in modern market

Promotion 1. Partnered with non-profit organizations to promote the danger of osteoporosis

2. Conduct events, seminars and bone test across Indonesia

3. Use celebrities to communicate its brand4. Giving out gimmicks for certain amount purchases5. A toll free number cumtomer service6. Bone scan stations 7. Dominate at least 50% of the available space

Store- Promotion Example :Store- Promotion Example :

Anlene once opened bone scan stations with Anlene once opened bone scan stations with sales promotion girls (SPG) supporting this sales promotion girls (SPG) supporting this promotionpromotion

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The Competitors4 P’s Produgen Calcimex

Product •High calcium milk product •Came in two flavours: plain and chocolate•Packages: 300, 600 and 900 gr•Added with fiber for digestion system

Price •Middle to low class•Lower price than anlene (10%)

No information added

Place Modern market No information added

Promotion •Nation wide campaign and events (9 cities in Indonesia)•Change of packaging design•National campaign•Seminars, talk show and sponsor the events

•Use celebrities to communicate its brands•Distributing samples•Spread educational brochures•Partnered with fitness place

The Competitors

4 P’s Hi-Lo Nestle Omega

Product •Added non fat to high calcium characteristic• Offered more flavours•Targeted in osteoarthritis disease•Variety of product•Product size: 250 and 500 gr

•High calcium milk product•Contained actifibras for digestion process

Price Hi Lo active (250 gr): Rp 15.000,-Hi Lo gold (250 gr): Rp 16.500,-

No information added

Place Hi Lo’s sales spread to 33 provincesMany supermarkets outlets

Malls and offices

Promotion •Distribute free samples at hospital and supermarkets outlets supplemented with prizes•Educate people•Offering free drinks and sampling at hospitals and supermarkets•Conduct meeting with local suburban, religious meeting,etc.•TV advertising•Print media advertising

Distributing samples in malls and offices

Objective

ANLENE: The ChallengeANLENE: The Challenge

How can ANLENE keep as a strong How can ANLENE keep as a strong leader in the adult category?leader in the adult category?

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Suggestion for Marketing Strategy

Exploring New Market-SegmentsExploring New Market-Segments Analysis has showed:Analysis has showed:

Majority of Indonesian milk consumers have preferences for:Majority of Indonesian milk consumers have preferences for: Non-fat dry milkNon-fat dry milk Anhydrous milkAnhydrous milk

The demand for Non Fat/Low Fat (NFLF) in The demand for Non Fat/Low Fat (NFLF) in milk category is growing significantly in milk category is growing significantly in IndonesiaIndonesia

ANLENE can satisfy this emerging needs in ANLENE can satisfy this emerging needs in form of a new Product Range for Adults!form of a new Product Range for Adults!

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Suggestion for Marketing Strategy

Exploring New Market-SegmentsExploring New Market-Segments The Solution: New Product RangeThe Solution: New Product Range

ANLENE – LIGHT AND BALANCE LINEANLENE – LIGHT AND BALANCE LINENonFat/Low Fat MilkNonFat/Low Fat Milk

The healthy energizer, which will The healthy energizer, which will strenghten your bones and body after strenghten your bones and body after mental and physical strain – without Fat!mental and physical strain – without Fat!

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Suggestion for Marketing Strategy

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New Product/Packaging:

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Suggestion for Marketing Strategy

Other Factors for Market-LaunchOther Factors for Market-Launch The Brand‘s/Companie‘s Unique The Brand‘s/Companie‘s Unique

Selling Proposition:Selling Proposition: We will keep the USP and association with „strong We will keep the USP and association with „strong

bones“ and use them to make a „light“ category for bones“ and use them to make a „light“ category for sportive and fit adultssportive and fit adults

Promotion:Promotion: ANLENE collavoration with sport-men and women, who ANLENE collavoration with sport-men and women, who

can be used as well as Testimonials for camapaignscan be used as well as Testimonials for camapaigns Events and Sponsorship of Health- and Sport-EventsEvents and Sponsorship of Health- and Sport-Events

Place:Place: Using the already available distribution networkUsing the already available distribution network

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Syndicate 4

Thank you for your attention!Thank you for your attention!

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