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Chapter 1 Background CHAPTER 1 BACKGROUND 1.1. Ready To Drink Industry in Indonesia Overview People in big city are become more practical. The prefer something that simple, fast and easy to find. They are prefer fast food than self cooking at home, they better go to shop to buy drink than make their own drink, use their smartphone to buy something than go to shop, etc. In the other words, their lifestyle are changing! This new lifestyle affects directly to beverage industry. Since people prefer to buy drinks than make their own drinks and spend times at home, Ready to Drink (RTD) industry start to grow and become more attractive from year to year. In Indonesia, beverage industry especially soft drinks industry is growing approximately 7% year to year in volume. (Euromonitor, 2014). 1 2 Soft Drinks Industry by Volume 30000 25000 20000 15000 10000 5000 0 2008 2009 2010 2011 2012 2013 Figure 1. Soft Drinks Industry by Volume. Source: compilation from Euromonitor, 2014 Having everything instantly drive people in big city to high mobility. They spend a lot of time on the road than their house. High mobility made themselves easy to get tired and dehydrated. As they realize that their high mobility affect their health, they become conscious to their own health. In big city especially in Jakarta, sport activity like running, futsal, gym and also yoga are really popular to balance their life. RTD industry attractiveness combine with high mobility and increase in health awareness are good combination for isotonic drinks to be born. Isotonic drink is one sub category in RTD industry that promotes health and well hydrated body to support people activity. Other category of RTD industry including Bottled water, juice, tea, coffee, carbonates, etc. Picture 2 show shares for each drink category in the market for year 2013 based on Euromonitor, 2014 research result. The percentage of isotonic drink maybe not 3 as big as other category but it is actually growing. Next section will describe more specific about isotonic drinks market. Beverage Industry Shares Based On Volume 0.07% 2.79% 0.51% 0.76% 7.36% 0.52% 3.90% 84.09% 1. Bottled Water 2. Carbonates 3. Concentrates 4. Juice 5. RTD Coffee 6. RTD Tea 7. Sport and Energy Drinks 8. Asian Speciality Drinks Figure 2. Beverage Industry Share based on category. Source: Euromonitor, 2014 1.2. Isotonic Drinks In such a modern era today, people are more conscious about their own health as they have high mobility. Healthy lifestyle has become trend. Sport activity is not only for those who want to keep healthy, but also for those who want to keep their stamina for the whole day activity, stay young and maintain body shape. Because of this healthy lifestyle, healthy drinks demand like isotonic drinks increase. People incline to decrease their consumption for carbonates. 4 Isotonic drink is growing so fast in Indonesia and also in the world. Isotonic drinks contain vitamins to replace the body fluid that has been waste due the activities and can restore the freshness human body. There is some category in soft drink industry where bottled water hold about 84% of total sales volume from 2008 to 2013, followed by Ready To Drink (RTD) Tea around 7%. Sport and Energy drinks hold around 2.8% increase 0.7% from 2008 while other categories not increase significantly. Soft Drinks Industry Categories by Volume 100% 2.09% 2.79% 95% 7.20% 7.36% 90% 3.94% 85% 3.90% 80% 85.05% 84.09% 75% 2008 2013 Bottled Water Carbonates Concentrates Juice RTD Coffee RTD Tea Sport and Energy Drinks Asian Speciality Drinks Figure 3. Soft Drinks Industry Categories by Volume. Source: compilation from Euromonitor, 2014 There are some big players in isotonic drinks industry: 1. Pocari Sweat (PT Amerta Indah Otsuka) 2. Mizone (PT Tirta Investama) 3. Aquarius (PT Coca Cola Indonesia) 4. Hydro Coco (Kalbe) 5. Coolant (PT Sari Enesis) 5 Companies are competing each other to gain bigger share in the market. The pioneer of isotonic drink in Indonesia is Pocari Sweat brand. To be the first isotonic brand is not easy for them. It was hard to educate Indonesian about isotonic drink. As the time goes by Mizone came to the market followed by other brand like Hydrococo, Coolant and Aquarius. Each brand was trying their best to compete in the market by having unique tagline, targeted different segment and also differentiate its packaging. They were also try to increase awareness of their brand by having social presence online. Differences between competitors are shown in table 1 on the next page. 2012 Aquarius AquariusTopic - aquarius.coca-cola.co.id likes since Feblikes 2013 AquariusIndonesia, 156335 tweetssince January 2013 followers, 103 following, 1937 1937 following, 103 followers, @AQUARIUSid, 72700 72700 @AQUARIUSid, PetBottle TV IDR 4,990 IDR Serius balikin cairan tubuhmucairan Seriusbalikin Coca Cola Coca 2010 Hydrococo Coco) RealCoconutWater(Hydro myhydrococo.com Oct 2012 Oct HydroCoco, 63474 likes since likes HydroCoco,63474 tweets,May join 2010 followers, 128 following, 21049 21049 following, 128 followers, @My_HydroCoco, 21479 @My_HydroCoco,21479 Tetrapak Get Up Get Active (Off air) Active (Off Get Up Get Newspaper Radio TV IDR 4,800 IDR All 20-34 ABC1 20-34 All Love Coco Live Active CocoLoveLive Kalbe 2011 Coolant Table 1 . Competitor Analysis of Marketing of Analysis . Competitor (minumanantigerah) Coolant ID CoolantID Coolant.co.id April 2011 April Coolantid, 118244 likes since likes 118244 Coolantid, join March 2011 join 13084 following, 9408 tweets, 9408 following, 13084 @CoolantID, 20623 followers, followers, 20623 @CoolantID, coolantid PetBottle Indosiar, Sponsorship Sepeda Ria Newspaper TV, IDR 4,600 IDR MF 20-44 ABC 20-44 MF Minuman IonMinuman dan Penyejuk PT Sari Enesis Sari PT 2005 Mizone Mizoneid (Mizone 100%) (Mizone Mizoneid mizone.co.id April 2009 April Mizone, 1450752 likes since likes 1450752 Mizone, join January join 2010 60 following, 12480 tweets, 12480 following, 60 @mizoneid, 211975 followers, followers, 211975 @mizoneid, PetBottle air) Flashmob Car Free Day (Off Day(Off Free FlashmobCar Newspaper Radio TV IDR 4,200 IDR MF 20 - 34 ABC1 34 - 20 MF Bantusemangatlagi! Ok Investama PT Aqua Golden, PT Tirta AquaTirta PT PT Golden, 1989 . Source: Source: . compilation from manycompilation from sources Pocari Sweat Pocari Pocarigoion (Pocari ID) Pocarigoion(Pocari pocarisweat.co.id 2010/Apr 2012 2010/Apr pocariID, 588464 likes since likes 588464 pocariID, join March join 2010 778 following, 23475 tweets, 23475 following, 778 @pocariID, 104440 followers, followers, 104440 @pocariID, Can, Pet Bottle, Sachet PetBottle, Can, Nikerun Newspaper Radio TV IDR 5,590 IDR Dewasa SES segmentC+ A,B, SES hilang, mengandunghilang, Ion Penggantitubuhcairan yang PT Amerta Indah Amerta PT Otsuka Variable YoutubeChannel Website FB Account FB Twitter Instagram Packaging Marketingtools Price TargetSegment Tagline Year Sold in Indonesia in Sold Year Producedby 6 7 1.3. Company Background Enesis Group founded in 1988, is the first product released and leading in market Indonesia mosquito repellent lotion named Sari Puspa and has changing name with Soffell, Now, it is currently becoming a market leader too of mosquito repellent lotion in Asia and middle East. Generally, Enesis Group is divided into three companies: 1. PT Herlina Indah made non food products such as Soffel, Kispray, ForceMagic, and Antis Antiseptic. 2. PT Sari Enesis made food product categories such as Adem Sari, Garglin, dan Vegeta. 3. Marketama Indah, handling distribution, especially in Jakarta, Depok, Bogor, Tangerang, and Bekasi (Jabodetabek). The successful of Soffell makes Enesis Group want to expand the business into a functional drink category in 1996. They launching a new category in market herbal supplementary power drink, Adem Sari with Ching Ku varian or is in overseas known as Sensa Cools. Adem Sari or Sensa Cools enhances the body's digestion system, relieves constipation, and heals sore throat and canker sores. Another accomplishment of Enesis Group launch in 2000, is Vegeta, contains a natural fiber powder drink. Enesis Group is committed to always develop innovative products. Some of its products such as Soffell, Adem Sari or Sensa Cools, Vegeta, 8 Kispray, Antis, and Force Magic are the market leaders in their categories and has become a household brand with distinctive differentiation products. Throughout the years, Enesis Group products won many prestigious awards such as Top Brand and ICSA (Indonesia Customer Satisfaction Award). It makes Enesis Group perceived as trusted brands by the highest customer satisfaction. To achieve international quality standards; Enesis Group owns two manufacturing plants is in Pulo Gadung Industrial Estate and Cikarang Industrial Estate with GMP (Good Manufacturing Practice) and ISO 9001:2008 standards. It is supported with more than 3,000 employees for two manufacturing. Determined to create new products and expanding market both locally and globally, the latest expansion projects is market penetration in China, Vietnam, Thailand and USA. Nowadays, Enesis Group has expanded they own product line into various categories and establish as one of the prominent Fast Moving Consumer Goods groups in Indonesia (FMCG). The Fast Moving Consumer Goods (FMCG) product is Proman energy drink and Coolant isotonic drink. 1.3.1. VISION Enesis Group is strongly committed to become a world leader in the area of healthy drink and selected FMCG (Fast Moving Consumer Goods) product category. To achieve this vision, Enesis Group always tries to be: 9 1. Create innovative products which are able to provide a solution according to the consumers’ needs Understanding the consumers’ needs becomes the main principles of the Enesis Group. The existence of Enesis Group’s products, such as Adem Sari which is a solution for healthiness, Soffell with an 8-hour protection to keep the family from the dengue fever threat, Proman to stimulate energy and body freshness, Vegeta to fulfill the needs of daily fiber intake, and other innovative products which is a proof of Enesis Group will always strive to create products according to the consumers’ needs.
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