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MAPPINGMAPPING –– BENCHMARKINGBENCHMARKING Dairy & Beverage Market Opportunity Versi MAPPINGMAPPING –– BENCHMARKINGBENCHMARKING Dairy & Beverage Market Opportunity versi TETRAPAK KeyKey TrendsTrends Urbanization Cost 50% population Consciousness will live in big Affordability and cities convenience Health Fragmented Looking for value Distribution of quality and Available and freshness accessible at both traditional and modern outlets IndonesiaIndonesia A & B AND C & D 210 Million C, D & E Consumers 15 Million A & B Consumers Consumers Modern AND Traditional 3,000 Outlets Trade 2,000,000 Outlets Premium, Value AND Emerging Portfolio IndonesiaIndonesia PackagedPackaged ReadyReady ToTo DrinkDrink 20032003 Beer Soya Sport & Energy 3% 0% 2% Consumption in million liter RTD Tea (exclude powder, concentrate, 13% syrup and bulk) Water 3,585.7 Liquid Dairy Product 215.1 JNSD 108.3 CSD 9% CSD 507.3 RTD Tea 672.3 Sport & Energy 109.2 Beer 146.8 JNSD Soya 10.3 2% LDP 4% Total 2003 5,355.0 Water 67% Source : Tetra Compass 2004 GrowthGrowth PlatformsPlatforms Safety HEALTH • Basic quality • Functional benefits Health GROWTH • Nutritional benefits Nutrition PLATFORM • Branding • Availability Urbanization ON-THE-GO • Ambient products GROWTH • Traditional trade Mobility PLATFORM • Infrastructure • Branding • Attractiveness Big and Young KIDS GROWTH • Impulse purchase Population • Fun elements PLATFORM • Branding PlayersPlayers inin RTDRTD teatea categorycategory “Which are the top global players for RTD tea today?” 1. Unilever Group 10.4 % 2. Kirin Brewery Co 7.8 % 3. Nestlé SA 7.6 % 4. Suntory Ltd 6.7 % 5. Ito En Ltd 5.4 % 6. Asahi Breweries 4.9 % 7. Coca-Cola Co 4.8 % 8. Uni-President 4.5 % 9. Ting Hsin Int. 4.5 % 10. Sinar Sosro PT 3.5 % NB: Other players: 39.9% 0%2% 4% 6% 8% 10% 1/ Global IKAM 2/ Regional IKAM Source: Euromonitor IMIS 2000 WhatWhat triggertrigger IndonesianIndonesian ConsumerConsumer toto consumeconsume RTDRTD Tea?Tea? Refreshing Non Affordable carbonated Drinking Thirst habit quencher Generic Availability product TeaTea DrinksDrinks OpportunitiesOpportunities && ChallengesChallenges 900 Category Size (mio litres) 800 781 755 700 729 704 685 672 685 600 655 584 500 400 300 200 100 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 Category drivers and opportunities SegmentSegment expectedexpected toto reachreach 781781 miomio liter liter inin 2008,2008, drivendriven mostlymostly byby Sosro,Sosro, followedfollowed byby CokeCoke && Pepsi.Pepsi. GrowingGrowing segmentsegment && healthyhealthy competition.competition. ModernModern TradeTrade drivedrive oneone wayway packpack penetration.penetration. MoistureMoisture toleranttolerant packpack cancan enterenter traditionaltraditional trade.trade. ProductProduct PositioningPositioning OpportunityOpportunity REASON/MOTIVATION FOR CONSUMPTION Strong Healthy Appeal Green Tea Green Tea TREND (COOL) Fruit Flavored Junior Tea INDULGENCE / TREAT BASIC Children Teen Young Adult Adult Target Market by Age A,B C+ C-,D High High Flavored Drink Flavored Fortified Juice Drink Juice Medium Medium Market Market Size Market Market Size Junior Juice Junior Juice Value Added Added Value Low Low RTD JNSD Mapping JNSD RTD RTD JNSD Mapping JNSD RTD 100% Juice 100% Premium Medium Low Premium Medium Low Price Level Price Price Level Price Understanding IndonesianIndonesian ConsumersConsumers in the SoyaSoya BeanBean MilkMilk MarketMarket Qualitative = 2 FGD Quantitative = 507 interview 2002 Copyright Taylor Nelson Sofres © 2002. All Rights Reserved Indonesian Consumer : Reason for never drink Soya Milk at all 40 30 20 10 0 Don't know Don't like Don't like Difficult to the product the the taste obtain smell/aroma 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 obtain smell/aroma SoyaSoya MappingMapping Premium Affordable Health Plain Soya in TCA/TFA Fortified PlainTraditional Soya Soya Market(Distribution driven) Traditional Health Modern Refreshmen Non Soya DrinkerFlavored Market Soya in TCA/TFA t Flavored Soya (Distribution driven) 350.0 LiquidLiquid FlavoredFlavored MilkMilk 300.0 The market is expanding at 18% p.a 292.5 More segmentation and value added 250.0 milk had been introduced, extension 251.2 from powder milk Mostly packed in portion size, 200.0 214.5 interestingly smaller kiddy pack (in 125183.8 ml) becoming popular 150.0 157.0 Chocolate is still the most popular flavor, followed by strawberry Million Liter Million 132.6 Increased penetration of affordable 100.0 113.2 milk for lower segment including 93.5 school feeding program 80.5 50.0 Intensive marketing campaign toward the nutritious and convenience 0.0 2000 2001 2002 2003 2004 2005 2006 2007 2008 Source: Tetra Compass 2004 LiquidLiquid FlavoredFlavored MilkMilk Consumption 2003 By Process Consumption 2003 By Packaging 25.9 21.8 76.9 0.5 UHT 80.4 Carton Sterilised HDPE 29.8 Can 29.8 Chilled Cup Source: Tetra Compass 2004 The Drivers The Packaging Drivers Mainly considered as “beverage” milk, Carton continues lead the market mainly but increasing volume of GUM and value in 200 ml size added milk HDPE is gaining the share through UHT growing at around 18% mainly distribution driven by 2 big players targeted to children Plastic cup in chilled form mainly being Chilled segment is mostly supplied by the used by few milk cooperatives for direct milk cooperatives through direct distribution targeted to lower income distribution (low cost & low quality) Sterilised milk is expanding due to higher penetration to traditional trades LiquidLiquid FlavoredFlavored MilkMilk 350 Dynamic of Value Added Milk Fortification and product 300 Value Added enrichment are strongly Basic expanding 250 More segmented products targeted to different age group 175.5 Stronger pace of extending the 200 GUM powder into liquid Dominated by portion pack (125 150 and 200 ml) and chocolate flavor Higher penetration into rural 53.0 100 39.6 areas through traditional trades 28.1 24.2 50 117.0 73.6 79.5 56.4 65.5 0 2000 2001 2002 2003 E2008 Source: Tetra Compass 2004 350.0 LiquidLiquid FlavoredFlavored MilkMilk 300.0 Affordability Availability 292.5 250.0 Differentiation 251.2 200.0 214.5 183.8 150.0 157.0 Million Liter Million 132.6 100.0 113.2 93.5 80.5 50.0 0.0 2000 2001 2002 2003 2004 2005 2006 2007 2008 Source: Tetra Compass 2004 LiquidLiquid CulturedCultured MilkMilk Leading Brands Market Drivers Yakult (Yakult) Going toward the functional drink Chilled will continue to grow Calpico (Ajinomoto Calpis) Increased penetration of direct Nice (Indomilk) selling Vitacharm (Orang Tua) New players in ambient segment 8% 0% Packaging Drivers Plastic bottle still dominates the 14% category in chilled distribution Plastic Bottle Carton is increasing for ambient Carton Can Cup 78% ProductProduct PositioningPositioning OpportunityOpportunity REASON/MOTIVATION FOR CONSUMPTION ENHANCED NUTRITION Value Added GUM Milk TREND (COOL) Milk Shake Smoothie INDULGENCE / 100% TREAT Juice Yogurt Drink LAD BASIC Children Teen Young Adult Adult Target Market by Age OpportunityOpportunity MappingMapping A Value Added A , , B Milk B Premium Premium GUM Milk Shake Smoothie Yogurt Drink C LAD C + + Medium Medium Price Level Price Level Economic C C - - , , D Milk D Low Low Low Medium High Market Size RTDRTD DairyDairy -- TargetTarget ofof OpportunityOpportunity Growing Up Milk (GUM) Teenager Milk Young and Adult Milk or Junior Milk • Healthy treat • Value added • Nutritional • 11-17 year old • Good start for the day • 3-10 year old • Being unique and fun • Seek convenience • Full cream & flavored • “Active” positioning • Premium = Value for • Mother influencing • Independent money MarketMarket DynamicDynamic 20032003--20042004 ENHANCED NUTRITION TREND (COOL) INDULGENCE / 100% TREAT Juice BASIC 2003 2004 MociMoci EsEs KrimKrim Strong Healthy Appeal TREND (COOL) INDULGENCE / TREAT BASIC Children Teen Young Adult Adult PermenPermen EntingEnting--EntingEnting Strong Healthy Appeal TREND (COOL) INDULGENCE / TREAT BASIC Children Teen Young Adult Adult PRODUCTPRODUCT CONCEPTCONCEPT (DEFINITION)(DEFINITION) ProductProduct ConceptConcept –– ChildrenChildren MilkMilk 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 ProductProduct ConceptConcept –– TeenTeen MilkMilk 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 ProductProduct ConceptConcept –– AdultAdult MilkMilk 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” LowLow CostCost MilkMilk 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.
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