インドネシアにおける消費財市場レポート Gaining Deeper …...FGD Structure Group Criteria FGD 1 (High Income) Shop mostly at Upper Department Store (Sogo, Metro,

インドネシアにおける消費財市場レポート（Gaining Deeper Understanding and Knowledge towards the Dynamics of the Retail Market in Indonesia）

January 2011

Copyright (C) 2011 JETRO. All rights reserved.Researched by Nielsen Indonesia

Back with the map: A preview on

background of our study


Trend means a

contrary to what

they have adopted

and believed

1

Find powerful

insights to generate

marketing strategy

to enter or strengthen

position in the market

and rise through the

competition!

Understand dynamics

of retail market in the

area of target

consumers,

promotional activities

and standard

requirements of

products

2Explore consumer

needs and

attitude in retail

market – both

modern and

traditional

1

Research Objectives

Evaluate both

consumer and

retailer perception

and attitude towards

Japanese and Korean

products

3

Page 3


Information to be Covered • The study will cover the following informational objectives :

Explore

consumer needs

and attitude in

retail market

– Needs and expectation towards products (the standard and ideal product)

– Overall process of decision making in product purchase (source of information, source of influencer, steps of actions taken, choice of store, out-of-store and in-store interactions)

– Consideration set of product purchase (price, availability, design, durability, guarantee, etc)

Understanding

the flow, process

and dynamic of

retail market

– Target consumers (demographic and psychographic profile)– Most and least selling brands; also strength and

weaknesses of those brands – Promotional activities happening in the store (and its

efficacy to sales)– Standards’ requirements of product

Evaluate

perception of

Japanese &

Korean products

– Awareness towards Japanese & Korean products / brands– Perceived strength and weakness of Japan & Korea

products / brands– SWOT analysis of Japanese & Korean products / brands

1

2

3

Page 4


Target Respondents Consumers:

25 – 30 year old women with monthly earnings classified as:

Above Rp 8,000,000 (equivalent to SEC A1 above)

Range between Rp 4,000,000 – Rp 8,000,000 (equivalent to

SEC A2B)

Less than Rp 4,000,000 (equivalent to SEC C1C2) , with

children aged 6 – 14 years old

We had questions on range of income, but overall

classification was defined by SEC screening

Retailers:

General Manager / Sales Manager / Buyer of 3 Upper Department

Stores

General Manager / Sales Manager / Buyer of 3 Hypermarkets

Owners of 3 Traditional Stores

Page 5


FGD StructureGroup Criteria

FGD 1

(High Income)

Shop mostly at Upper Department Store (Sogo, Metro, Centro) for textile and accessories purchase – go there minimum 2

times / month

Purchase monthly household shopping in Hypermarket (Carrefour, Giant, Hypermart) – go there minimum 1 time / month

5 categories (clothes, household durable, facial care, frozen food, savory snacks)

Purchase jeans, underwear, stocking, wristwatch in Upper Department Store (Sogo, Metro, Centro) in the past 6

months

Purchase TV, refrigerator, washing machine (Twin Tub / *Top Load Single Tub), mobile phone in the past 3 months

Purchase facial care products (UV cream, *Kesshousui) in the past 3 months

Purchase frozen food (sardine, corned beef, ready to eat sausage, *curry, *spaghetti sauce) in the past 3 months

Purchase savory snacks (potato chips) in the past 3 months

FGD 2

(Medium Income)

Purchase monthly household needs at Hypermarket (Carrefour, Giant, Hypermart)– go there minimum 1 time / month

4 categories (household durable, facial care, frozen food, savory snacks)

Purchase TV, refrigerator, washing machine (Twin Tub / *Top Load Single Tub), mobile phone in the past 3 months




FGD 3

(Low Income)

Purchase monthly household needs at Traditional Stores – go there minimum 2 times / month

5 categories (household durable, facial care, frozen food, savory snacks)

Purchase TV, *refrigerator, *washing machine, mobile phone in the past 3 months




Page 6


IDI StructureCriteria

Retailers of

Upper Department Store

• 1 IDI – Sales Manager of women’s underwear and stocking

• 1 IDI – Sales Manager of Wristwatch

• 1 IDI – Sales Manager of Clothing (adult female jeans)

Retailers of

Hypermarket

• 1 IDI – General Manager of Kids Equipments (baby goods, maternity goods)

• 1 IDI – Buyer of Educational Toys (block, puzzle, *handcraft materials)

• 1 IDI – Buyer of Frozen Food & Snack

Owner of

Traditional Stores

• 1 IDI – Owner of store which sells Electronic (TV), Household Durables,

(Refrigerator, Washing Machine), Kitchen Appliance (kitchen knives, frying pan,

pressure cooker)

• 1 IDI – Owner of store which sells Mobile Phone

• 1 IDI – Owner of store which sells facial care products (traditional drug &

cosmetic store)

Page 7


Detailed findings: learn and experience the

world of retail products


A Snapshot of our Consumers..


Psychographic Profile of High Income Women

Profile: High Income Consumers

Who they typically are:

Higher SEC

Higher education background (up to S2)

Amongst extroverted personality

More amongst working moms than housewives

What they do in spare time:

Tend to keep a close knit circle around them – usually have closest peer group

Prefer to spend weekends outside home: hanging out in café or restaurants –

mostly at upper malls such as Pondok Indah Mall, Plaza Senayan, Senayan City,

Grand Indonesia, etc

Have a more advanced and sophisticated hobby: yoga exercise, karaoke, retail

shopping, watching live music shows, etc

Their attitude towards information around

them:

Actively searching for new information

Very open to new types of information, but very critical at the same time too not

easy to made believe

Maximize every facility for gaining information, such as: internet, TV, radio

More trust in information from expert information gathered from the internet,

magazine or radio

Outlook and aspirations in life:

Want to keep up with the current trend thus, likes everything which is ‘buzzing’

Feel that the trend is a tool to enable them to be a part of the global society

Aspire to become successful career women – but still great housewives at the

same time looking for an act of balancing in life

Page 10Copyright (C) 2011 JETRO. All rights reserved.Researched by Nielsen Indonesia

Psychographic Profile of Medium Income Women

Profile: Medium Income Consumers


Medium SEC

Medium education background (up to S1)

Tend to be extrovert

More amongst working moms than housewives


After work, if they don’t have anything to do during weekday, most of the time they

stay at home

Prefer to spend weekends outside home: usually going to their friends house to

hang around, going to the supermarket / hypermarket OR if they have no other

plans, prefer to just stay at home watching TV

Their attitude towards information around

them:

Actively search for new information from existing sources around them (TV, people,

radio, etc)

Rely more on information from trusted source, with credible and proven results and

point of view


Prefer to have a balance outlook in life thus tend to be quite careful and

selective in choosing the trend will only follow the trend which they feel fits them

Feel that the trend is a tool to enable them to find who they really are – their true

character and personality

Aspire to become successful career women – but still great housewives at the

same time looking for an act of balancing in life


Psychographic Profile of Low Income Women

Profile:Low Income Consumers


Lower SEC

Lower education background (to D3)

Live in homogeneous area with strong local cultural background

More introverted personality

More amongst housewives than working moms


Prefer to spend weekdays and weekends inside home: home is a place where they

feel most accepted, where they feel at ease and can do whatever they like to do

Usually do not have a certain hobby – common ones such as neighborhood Arisan,

hanging out with the neighbors, doing gymnastic in the neighborhood, etc

Their attitude towards information

around them:

More passive in searching for new information

More receptive towards information from those she has emotional bond / personal

history with – skewed strongly to family members


Do not feel the need to keep up with the current trend, sometimes even avoiding it

does not feel convenient with the trend, feels as if it is something which does not

„represents me‟

Driven by the constant need to simply survive in society how to provide a good life

for themselves and their family

Aspire to become a great housewife – will sacrifice personal needs and desires in

order to let the other family members (husband or kid) pursue and achieve success


Part 1

Household Durables and Electronic ProductsFrom the Viewpoint of CONSUMERS (High, Medium & Low Income)And RETAILERS


The products discussed are:

1. Television

2. Refrigerator

3. Washing Machine

4. Kitchen Knives

5. Frying Pan

6. Pressure Cooker

Overview of Products


Purchase Habits (1/2)Type of

Product

Why and when do they

usually purchase it?

Where do they


Why do they

purchase it there?

Television

High income: purchased it after 7 – 8

years

Majority medium and low income:

purchased it after more than 10 years

to replace the old one

(some high income consumers):

purchase it as additional product (to be

placed in children’s or maid’s room)

High income: Specialized big-scale

electronic stores such as Electronic City,

Electronic Solution, Best Denki

Most medium income & few low income:

Hypermarket such as Carrefour and Giant

Majority low income consumers:

Traditional electronic store – usually

located nearby

High income: believes that specialized

stores provides wide range of product

options and better display and service /

consultation

Most medium income & few low income:

believes that Hypermarket provides a

more competitive price than specialized

store

Majority low income consumers: prefers

this store due to minimum travelling time

Refrigerator

Across all, majority purchased it after a

minimum of 10 years; to replace the old

one usually experienced quality

deterioration (leakage of freezer water,

unavoidable „icicles‟ in the freezer, etc)

Washing

Machine

Same case with Refrigerator – majority

purchased it after a minimum of 10 years

to replace the old one

(Few high income) purchased a different

type to upgrade (from Top Loader to

Front Loader)


Purchase Habits (2/2)

Type of

Product



Where do they


Why do they


Kitchen

Knives

High income: majority purchased it once

every 2 – 3 years

Medium and low income: majority

purchased it after more than 5 years

although kitchen knives is not considered

as household durables, it is perceived to

have high durability thus no need to buy

a new one often due to easy maintenance

(properly sharpen)

High Income: Department store (some),

Online TV Shopping (some), Hypermarket

such as Carrefour (some)

Medium Income: Online TV (some),

Hypermarket such as Carrefour, Giant and

Hypermarket (some)

Low Income: Traditional household

durables store

High Income and medium income:

believes that Department Store and

Hypermarket offers wide range of options,

while Online TV Shopping is chosen due to

simplicity and more efficient procedure

(just call and the product will be delivered

to your house!)

Low Income: already a habit since before;

feels more comfortable shopping there

since they already have good relationship

with store ownerFrying Pan

High and medium income: purchased it 1 -

2 times per 2 years perceived that frying

pan needs to be replaced after a certain

period of time

Low income: purchased it 1 – 2 times per

3 years due to availability of budget

Pressure

Cooker

High and medium income: purchased it 1

time every 3 – 4 years

Low income: purchased it every 6 to 7

years due to budget availability


Key Influencer in Brand SelectionWho or what influences them to choose a certain brand?

Type Description Television RefrigeratorWashing Machine

Kitchen Knives

Frying PanPressure Cooker

Out of Store Influencer

WOM (Word of Mouth) from trusted recommender

Modeling Behavior – sees significant other using it

Strong Brand Awareness / Heritage brand

Advertising – the intriguing ones

In Store Influencer

In Store Promotion

Salesman Recommendation

Others

Note: the more = stronger influence


Considerations in PurchaseWhat factors are important prior to making a purchase?

Less Important

More Important

1. Brand

2. Affordability

3. Durability

4. Design and

color

5. Availability of

promotion

6. Warranty

7. After service

Refrigerator

1. Brand

2. Durability

3. Affordability

4. Warranty

5. Design and

color

6. Availability of

promotion

7. After service

1.Utility/Function

2.Sturdy look and

design

3.Quantity in a

set

4.Affordability

5.Availability of

promotion

6.Warranty

7.Brand

8.After service

Television Washing Machine Kitchen Knives Frying Pan Pressure Cooker

1.Brand

2.Durability

3.Affordability

4.Warranty

5.Design and

color

6.Availability of

promotion

7.After service

1. Quality –

stainless or

not

2. Sturdy look

and design

3. Durability

4. Affordability

5. Brand

6. Availability of

promotion

7. Warranty

8. After service

1. Brand

2. Durability

3. Sturdy look

and design

4. Affordability

5. Availability of

promotion

6. Warranty

7. After service


Switching BehaviorWhat makes them switch to (or try) another brand?

Type of Trigger

Trigger Television RefrigeratorWashing Machine

Kitchen Knives

Frying PanPressure Cooker

Product Related Triggers

WOM from trusted recommender

Modeling Behavior –sees significant other using it

Advertising –the intriguing ones

Others

Non Product Related Triggers

In Store Promotion


Others



Standard Expectations of ProductWhat should the standard product have?

Refrigerator

1.Well known brands

– famous for

household durable

products such as LG,

Sharp, Toshiba

2.Durability from 5

to 10 years

3.Standard electricity

usage similar to

most brands in

market

4.Affordability Not

too expensive, not

too cheap

5.Warranty official

from brand – not

store, up to 1 year

Television Washing Machine Kitchen Knives Frying Pan Pressure Cooker1.Well known brands

which have been in

market for long

(Toshiba, Samsung,

LG, Sharp, Sony)

2.Durability from 5

to 10 years

3.Affordability Not

too expensive, not

too cheap

4.Attractive design &

color black and

curved edges are

preferred

5.Warranty official

from brand, not store,

up to 1 year

6.After service

affordable spare

parts and widely

spread service

center

1.Well known brands

– famous for

household durable


Sharp, Toshiba

2.Durability from 5

to 10 years

3.Friendly Usage –

not requiring

complicated

procedures

4.Affordability Not

too expensive, not

too cheap

5.Warranty official

from brand – not

store, up to 1 year

1.High durability

perceived from outer

appearance (sturdy

and hard looking)

2.Affordability Not

too expensive, not

too cheap

3.Warranty official

from brand – not

store, up to 1 year

1.High durability

perceived from

material quality

(Teflon) and

appearance (sturdy

and hard looking)

2.Affordability Not

too expensive, not

too cheap

3.Warranty official

from brand – not

store, up to 1 year

1.Well known brands

– famous for

household durable


Sharp, Toshiba

2.High durability

determined by brand

3.Affordability Not

too expensive, not

too cheap

4.Warranty official

from brand – not

store, up to 1 year

Less Important

More Important


Ideal Expectations of ProductWhat should the ideal product have?

RefrigeratorTelevision Washing Machine Kitchen Knives Frying Pan Pressure Cooker

1.Durability up to 10 –

15 years thus

serves as long term

investment

2.Glossy and shiny

color looks more

elegant and appealing

3.Slim design the

slimmer, the better

4.Official warranty up to

5 years

5.Quick warranty

service 1 to 2 days

for reparation

6.Good after sales

price only falls

down to 75% after 1 –

2 years of usage

1.Up to date design

curvy edge

2.Glossy and shiny

color looks more

elegant and

appealing

3.Durability up to 15

years thus serves

as long term

investment

4.Low electricity

usage

5.Official warranty up

to 5 years

6.Quick warranty

service 1 to 2

days for reparation

7.Good after sale

price only falls

down to 75% after 1

– 2 years of usage

1. Provides efficient

features which

makes life easier

(such as Quick Dry,

usage feature for

soft type of clothes

for instance silk, etc)

2. Low electricity

usage

3. Minimum noise

during usage

4. Durability up to 15

years thus

serves as long term

investment

5. Official warranty

up to 5 years

6. Quick warranty

service 1 to 2

days for reparation

1.Good affordability

Not too

expensive, not too

cheap

2.Official warranty up

to 3 years


Not too

expensive, not too

cheap

2.Easy maintenance

easy to be

cleaned and wiped

3.Official Warranty up

to 3 years


Not too

expensive, not too

cheap

2.High durability

up to 5 years

3.Official Warranty up

to 3 years

Less Important

More Important


Brand PurchaseWhat brands did they purchase in past 3 months?

1. Samsung

2. LG

3. Toshiba

4. Sony

5. Panasonic

Refrigerator

1.LG

2.Sharp

3.Toshiba

4.Sanyo

1.Ginsu 1.Tefal

2.Double

1.LG

2.Sharp

3.Sanyo

4.Panasonic

5.Toshiba

1.Sharp

2.Sanken

Television

Less Mentioned

More Mentioned

Washing Machine Kitchen Knives Frying Pan Pressure Cooker

• For Television, a majority of consumers bought either Samsung or LG

• Only few High Income consumers buys Sony

• As for Refrigerator and Washing Machine, generally all consumers buys LG or Sharp.

• No major difference between high, medium or low income

• This is also the case for Pressure Cooker, as majority uses either Sharp or Sanken no

major difference amongst different income class


Brand Evaluation – for TVFrom the consumer perception..

Brand Name Key ImagePerceived Strength

Perceived Weakness

Favourability Level

SonyThe Pioneer andHeritage brand

• Advanced, up-to-date technology• High durability • Highly innovative (in regards to

design and features e.g 3D TV)• Good after service (widely spread

service centre)

•Expensive price•Expensive spare parts

Very High

SamsungThe First Class

brand

•High durability•Good product technology•Attractive product design (slim, dark glossy colour)

•Expensive price High

LGThe Household Product

brand

• Offers a variety of product features

• Offers a variety of design• Quite durable• Quite affordable price

• Less advanced technology

Medium

ToshibaThe Highly Endorsed

brand (mostly by celebrity)

•High durability•Good product technology

•Less attractive product design (rigid, less flexible, less casual)

Medium

PanasonicThe (recently)

Nationalized brand•Affordable price

• Less product quality and technology

Low


Brand Evaluation – for Washing Machine, Refrigerator &

Pressure Cooker From the consumer perception..


Perceived Weakness

Favourability Level

LGThe Household Product brand

• Eco-friendly• Efficient usage of electricity lower than other brands in market

• Specializes in household products, thus more reliable and trusted

• High durability

•Expensive price Very High

SharpThe Local Reliable Household brand

•Good product technology•Quite high durability•Affordable price

•Expensive price High

Toshiba

The Highly Endorsed brand

(mostly by celebrity)

•High durability•Good product technology

• Less attractive product design (rigid, less flexible, less casual)

• Less affordable price

Medium

SanyoThe Mainstream

brand

•Affordable price•High availability (both in modern or traditional store)

•Medium durability•Low product quality

Low

Sanken The Local brand •Affordable price•Low durable•Low product quality

Low


Brand Evaluation – for Kitchen KnivesFrom the consumer perception..


Perceived Weakness

Favourability Level

Ginsu The Japanese brand

• High durability if under good maintenance effort, it usually lasts for years

• High resistance does not get broken easily (even after being accidentally dropped down to the floor)

• Very sharp supports quick and easy meat cut

• Good appearance – looks sturdy and tough even on eye level

•Expensive price Very High

• Note:

• Need to be careful on consumer really high perception of Ginsu – as it is not

evaluated against other brands

• However, we found no negative gross image associated with the brand


Brand Evaluation – for Frying PanFrom the consumer perception..


Perceived Weakness

Favourability Level

TefalThe Pioneer brand

• High durability• Available in many colour

and design gives consumers a variety of options

• Easy maintenance

•None mentioned High

DoubleThe Mainstream

brand

• Affordable price• Usually offers attractive

design not just basic colour like black, but also red and blue

• Tone of colour is usually glossy thus it looks shiny on eye level

• Less durable • Rather hard to

maintenance (after a while, it gets black stains on the surface)

Medium


Now let’s deep dive into the Eyes of Retailers…


•LG

Most & Least Selling brands – for TV

•Sony

•Toshiba

•Panasonic

•Samsung

•Sharp

Sony (Tube TV – SZ Series Wega CRT - 21 inch – IDR 2.450.000) is known as the

most expensive brand amongst all, thus guarantees high product credibility

consumers feel assured of the quality

Toshiba (Tube TV – 410PC W89FKL - 32 inch – IDR 3.900.000) is the third most

selling brand – though rather expensive it has guaranteed product quality

LG (LCD TV SCD 26 HD TV - 26 inch – IDR 3.000.000) is perceived as the most

selling brand due to a perfect balance between affordable price and good product

quality

Panasonic offers highly affordable price – considered as the cheapest amongst all TV

brands

Samsung is known for its attractive design and up-to-date features, thus sought after by

medium income consumers

Sharp offers price rather similar to LG, but the product quality is seen as less than LG

•Voice of Retailers of Traditional Store

What Do The Retailers Say?


Less Selling

More Selling


•Sony 21 inch

•Toshiba 32 inch

•LG 26 inch

Product Visual - TV


•LG

Most & Least Selling brands – for Washing Machine

•Sharp

•Toshiba

•Samsung

•Sanyo

•National

•Sanken

Both LG (WP 1460 R Twin Tub – 7 kg – IDR 1.850.000) and Sharp (ES T70 CL-B Twin

Tub Super 7 kg – IDR 1.700.000) products are widely liked by consumers affordable

price, good durability, sturdy and tough design

Toshiba (Twin tub 6,6 kg – IDR 1.350.000) products are known for high durability, but due

to expensive price, it is less favored compared to LG or Sharp

Samsung (Twin tub 7,5 kg – IDR 1.550.000) is perceived to have similar quality to

Toshiba, but with better looking design

Sanyo is seen as offering medium product quality and medium durability, but affordable

National is perceived as one of the best local brand – quite affordable, offers a variety of

products, good product design

Sanken is perceived to offer the cheapest price amongst other brands – BUT not really

supported by good quality product (less durable), thus attracts the smallest portion of

consumer




Less Selling

More Selling


Product Visual – for Washing Machine

•Sharp (Twin Tub Super 7kg) •Toshiba (Twin Tub 6,6 kg) •LG (Twin Tub 7 kg)


•LG

Most & Least Selling brands – for Refrigerator

•Sharp

•Toshiba

•Samsung

•Sanyo

•National

•Sanken

Both LG (IDR 2.600.000 – GL 201CM – One Door - 200 litre) and Sharp (IDR

2.800.000 – SJPT640RS – Two Door - 200 litre) are products are widely liked by

consumers affordable price, good durability, sturdy and tough design

Toshiba (IDR 3.000.000 – Glacio Grh260 – Two Door - 200 litre) products are

known for high durability, but due to expensive price, it is less favored compared to

LG or Sharp

Samsung (IDR 2.750.000 – 200 litre) is perceived to have similar quality to Toshiba,

but with better looking design

Sanyo is seen as offering medium product quality and medium durability, but

affordable

National is perceived as one of the best local brand – quite affordable, offers a

variety of products, good product design

Sanken is perceived to offer the cheapest price amongst other brands – BUT not

really supported by good quality product (less durable), thus attracts the smallest

portion of consumer




Less Selling

More Selling


Product Visual – for Refrigerator

•LG (200 litre) •Sharp (200 litre) •Toshiba (200 litre)


•Ginsu

Most & Least Selling brands – for Kitchen Knives

•Wushof

•Victorinox

Ginsu (IDR 100,000 – 300,000 / piece) is very strong in brand awareness

(perceived as a reputable brand) and high durability (most consumers

claimed it is highly resistance to shock / fall)

Wushof (IDR 100,000 – 150,000 / piece)

Emphasizes more on attractive design - thus mostly liked by

housewives

Germany manufactured – thus high credibility


Less Selling

More Selling What Do The Retailers Say?

Victorinox (IDR 175,000 – 250,000 / piece) is well-known for its sharpness

thus creates a more professional image only purchased by ‘kitchen

master’ housewives



Product Visual – for Kitchen Knives (1/2)

•Ginsu


Product Visual – for Kitchen Knives (2/2)

•Wushof

•Victorinox


•Tefal

Most & Least Selling brands – for Frying Pan

•Double

Tefal frying pan (IDR 200.000 – 280.000 for 24 – 28 cm) is seen to offer

high durability level (consumers admit usually lasts for up to 5 years) and

better cooking quality

Double frying pan (IDR 395.000 for 32 cm) offers price which is more

expensive than Tefal (more IDR 100,000 – 200,000) but still come up with a

wide variety of products (many designs and types of frying pan)


Less Selling

More Selling What Do The Retailers Say?


•Tefal Frying Pan •Double Frying Pan

Product Visual – for Frying Pan


Most & Least Selling brands – for Magic Jar

Sharp (KS A18TTR – IDR 335.000) is perceived as an international product which

offers:

Good durability (product last up to 4 – 5 years)

Good after service (widely spread service center and affordable spare

part)

Cosmos (325 / 326 – IDR 259.900) is perceived as a ‘good local brand’

Meaning: it offers good quality (durable and not easily broken) BUT with

affordable price

Also supported by good service center (widely spread and less expensive spare

parts)

Miyako (MCM 508 – IDR 215.000) is perceived more as a low class brand – thus only

trusted by lower income consumers


Less Selling

More SellingWhat Do The Retailers Say?



•Sharp •Cosmos

Product Visual – for Magic Jar

•Miyako


Promotional Activities - Overall•Voice of Retailers of Traditional Store

• Usually applied 2 – 3 times per year promotion period only lasts 2 weeks

• Gifts are usually small household durables such as: spatula spoon, glass / cups, bowl, etc

Description Quotes

Gifts

Discount

• Discount is applied to certain products, mostly: TV, refrigerator, washing machine, Air Conditioner, Microwave, Oven.

• Discount usually ranges from 10 – 15 % • Promotion period is usually during festive

seasons, such as Idul Fitri, Christmas, New Year

“I usually give discount to attract

customers. Every time I have a

discount scheme in my store, sales

would go up to 25 – 30 %. I find it very

effective” - Retailer

Point Collection • After purchasing a certain product, consumers get a certain number of points, which entitles them to get a lottery coupon.

• This lottery coupon is filled and put into a box, and after a certain period of time, the store will pick 1 to 10 winners

• Prizes range from bicycle, toaster, oven, ironing, until TV.

“Besides discount, I also have Gift

promotion scheme. Usually the

younger customers don‟t really like it,

they are more excited with discount.

The older customers enjoy it more” -

Retailer

“Sometimes I also have lottery prizes

at my store. But my customers don‟t

really like it, they say they prefer direct

gifts. But I still apply it just for the sake

of attracting customers into my store.

Usually, they feel curious when they

see the promotional sign” - RetailerLess Often

More Often


Perception of Japanese vs Korean brands

Product Japanese brands Korean brands

Awareness Sony, Toshiba, Panasonic Samsung, LG

Positive Image

• More durable

• Lots of experience – high expertise

• High technology

• Highly innovative – come up with new variant of products (in terms of design, technology, utility, etc)

• Pride consumers feel confident when seeing using these brands by others

• Cheaper than Japanese brands (usually IDR 200,000 - 300,000 less)

• Offers more variety of model

Negative Image• More expensive price

• Not offering many models

• Newcomer - just recently entered the market

• Less prestigious

• Less durable than Japanese brands (only 5 to 6 years)

• Model usually follows other brands – often copies the design from other brands



Key Learning – so far

What have we

learned?

Purchase for household durables is usually never spontaneous follow a certain

systematic pattern which involves: information gathering, consultation with significant

others (husband, partner, friends), and experiencing in-store dynamics (promotions,

interaction with Sales Promotion man)

The common trigger to make a purchase is strong Brand Awareness (usually

purchase the brand which they already know, or has good reputation in the market)

and Modelling Behaviour (thus, a new brand might be introduced into their life, if

only their closest surroundings are using the brand)

Familiarity of Japanese brands is high in this category, very positive evaluation

from consumers

What is our

opportunity?

We need to establish a strong brand awareness in the consumers minds – through

heavy product communication making our brand as the ‘buzzing trend’’

BUT at the same time, we need to highlight the strong features of our product

compared to products from other countries – in the areas of high durability, high

technology and expertise

And still offering competitive price in regards to other brands


Part 2

Frozen Food ProductsFrom the Viewpoint of CONSUMERS(High, Medium & Low Income)And RETAILERS


• The products discussed include:

1. Fish Sardines

2. Corned Beef

3. Ready-to-Eat (RTE) Sausages

4. Ready-to-Eat (RTE) Curry

5. Spaghetti Sauce

6. Cup Noodles

Overview of Products


Purchase HabitsType of Product



Where do they


Fish Sardines

Majority purchased once a month during monthly

household shopping

Most purchase 1 to 2 cans per month

Most high income and most medium income: get it

in Hypermarket such as Carrefour, Giant or

hypermarket if they run out of stock, they would

purchase it in the nearest mini market

Most low income: purchase it in mini market

Few low income: purchase it in traditional storesCorned Beef

Across all, majority purchased it once a month during

monthly household shopping

Most purchase 2 to 3 cans per month

RTE

Sausages

Majority purchased it once a month during monthly

household shopping

Most purchase 3 to 4 packages per month

Most high income and most medium income:

purchase it in Hypermarket such as Carrefour, Giant

or hypermarket when out of stock, they would


All low income: purchase it in mini market not

sold in traditional stores

RTE Curry Only few consumers purchase this product

Purchase is also limited – not every month more

into occasional rather than routineSpaghetti Sauce

Cup Noodles

Across all, majority purchase it once a month during

monthly household shopping

(some low income) purchase it weekly

Most high income and most medium income:

purchase it in Hypermarket such as Carrefour, Giant

or hypermarket if out of stock, they would


All low income: purchase it in traditional stores


Key Influencer in Brand SelectionWho or what influences them to make a purchase?

Type Influencer Fish Sardine

Corned BeefRTE

SausageRTE Curry

Spaghetti Sauce

Cup Noodle

Out of Store Influencer


Heritage brand

Advertising –the intriguing ones

Others

In Store Influencer

In Store Promotion


Others



Considerations in PurchaseWhat factors do they consider prior to making a purchase?

1.Well known

and established

brand

2.Good flavor

3.Variety of taste

and form

(sweet tomato,

spicy, extra

spicy

4.Affordability

Corned Beef

1.Good taste

2.Thickness of

curry texture

3.Affordability

1.Well known

and established

brand

2.Affordability

1.Good taste

2.Affordability

1.Well known

and established

brand

2.Variety of flavor

(types of

Indonesian

dishes)

3.Affordability

Fish Sardines RTE Sausage RTE Curry Spaghetti Sauce Cup Noodles

1.Well known

and established

brand

2.Good flavor

3.Good meat

quality hard

texture, rather

lumpy

4.Affordability

Less Important

More Important


Switching BehaviorWhat makes them switch to (or try) another brand?

Type of Trigger Trigger Fish

SardineCorned Beef

RTD Sausage

RTE CurrySpaghetti

SauceCup Noodle

Product Related Triggers


Not applicable

(only 1 brand

AVAILABLE in the

market)

Modeling Behavior – sees significant other using it

Advertising – the intriguing ones

Others

Non Product Related Triggers

In Store Promotion


Others



Less

Mentioned

More

Mentioned

1.Freshness looks

fresh and smells

naturally fresh

2.Good texture of

fish not meshed

or crushed

3.Durability 3

months expiry

period

4.Good sturdy can

5.Affordability: IDR

7000 – 10,000 for

125 gr

Corned BeefFish Sardines RTD Sausage RTE Curry Spaghetti Sauce Cup Noodles

1.Freshness

meat looks

naturally red

and smells like

fresh meat

2.Durability 3

months’ expiry

period

3.Good sturdy

can

1.Freshness

since it is ready

to eat, thus

should smell

and look fresh

(light pink)

2.Durability 1

month expiry

period

1.Good flavor

2.Strong smell

3.Durability 3

months’ expiry

period

1.Good flavor

2.Durability 3

months’ expiry

period

3.Good

packaging – not

thin and easy to

be crushed

1.Good flavor

2.Thick and

creamy texture

3.Durability 3

months’ expiry

period

Standard Expectations of ProductWhat should the standard product have?


Less

Mentioned

More

Mentioned

1.Available in variety

of flavor – at least

up to 5 types

2.Durability prefer

6 months’ expiry

period

3.Can is easy to be

opened (do not

need the help of

additional tool)

4.Available in

smaller SKU – less

than 125 gr

5.Less preservatives

or other chemical

substances

Corned BeefFish Sardines RTD Sausage Curry Spaghetti Sauce Cup Noodles

1. Durability

prefer 6 months’

expiry period

2. Can is easy to be

opened (do not

need the help of

additional tool)

3. Available in

smaller SKU –

less than 125 gr

4. Less

preservatives or

other chemical

substances


or other chemical

substances

2.Durability 3

months’ expiry

period

3.More durable

packaging –

current one is

perceived as too

thin

1.Strong smell –

must resemble the

original curry

2.Durability 6

months’ expiry

period

3.Highly affordable

4.Air-free/vacuum

packaging

1.Delicious flavor

2.Offers a variety of

flavors under one

brand – at least up

to 5 types

3.Packaging is not

made of plastic /

Styrofoam due

to the perceived

danger of hot

water mixing with

plastic (= result in

toxic)


or other chemical

substances

1.Meaty texture (not

just sauce but

should have visible

bits of meat in it)

2.Durability 6

months’ expiry

period

3.Highly affordable

4.Air-free/vacuum

packaging

Ideal Expectations of ProductWhat should the ideal product have?


Less

Mentioned

More

Mentioned

1. Gaga

2. ABC

3. Botan

Corned Beef

1. Pronas

2. Gaga

1. Karage 1. La Fonte1. Sozzis 1. Pop Mie

2. Nissin Mas

Fish Sardines RTD Sausage Curry Spaghetti Sauce Cup Noodles

Brand PurchaseWhat brands did they purchase in past 3 months?


Brand Evaluation – for Fish SardinesFrom the consumer perception..

Brand Name

Key ImagePerceived Strengths

Perceived Weaknesses

Favourability Level

Gaga The Famous brand

• Widely consumed by many, thus highly reliable

• Instant – no need to make own seasoning

• Offers a variety of flavours• Highly available

• Flavour is perceived as less delicious than ABC

• The most expensive amongst the brands in the market

• Less accessible – not available in mini market or traditional stores

High

ABC The Premium brand• Mostly known for the

delicious taste yummy sauce

• Widely available

• Offers the most expensive price

High

Botan The Heritage brand

• Has been in market for a long time, thus highly trusted and reliable

• Big fish

• Not Instant – still need to make own seasoning

• Consumed by limited people, mostly elderly people

Medium


Brand Evaluation – for Corned BeefFrom the consumer perception..

Brand Name Key ImagePerceived Strengths

Perceived Weaknesses

Favourability Level

Pronas The Heritage brand

• Has been in market for a long time, thus highly trusted and reliable

• No fishy smell• Taste really salty and

savoury after being cooked

• Highly accessible –available in hypermarket, supermarket, mini market, even traditional stores

• Consumed by limited people, mostly elderly people•Perceived as old-fashioned, not up to date

Medium

Cip The Famous brand

• Consumed by many, thus highly reliable

• Offers a variety of flavours

• Highly accessible -available in hypermarket, supermarket, mini market, even traditional stores

•Flavour is perceived as less delicious than Pronas

High


Brand Evaluation – for RTE SausagesFrom the consumer perception..


Perceived Weakness

Favourability Level

SozzisThe Newcomer

brand

• Pioneer brand the first RTE sausage brand in the market

• Highly accessible available in hypermarket, mini market and supermarket

• Widely advertised (in TV, magazine, or radio), thus strong brand awareness

• Highly affordable price makes some consumers (mostly high income) questions product quality

Medium


Brand Evaluation – for RTE Spaghetti SauceFrom the consumer perception..


Perceived Weakness

Favourability Level

La FonteThe

International brand

• Manufactured by foreign company thus reassures international quality

• Strong brand awareness

• Delicious product flavour

• Good product quality

• Rather expensive price – compared to other local brands in market

• Not widely available only certain variants are available in supermarket / hypermarket

High


Brand Evaluation – for Cup NoodlesFrom the consumer perception

Brand Name

Key ImagePerceived Strength

Perceived Weakness

Favourability Level

Pop MieThe Heritage

brand

• Old player – has been in market for a very long time, thus highly credible brand

• Widely known as a product from Indomie – the perceived best local brand for noodles

• Good product quality• Delicious flavour• When moved into a bowl, the flavour

does not change• Strong product communication – lots of

TVC

• Offers limited taste only 2 to 3 flavours (Chicken, Beef, Curry)

• Only offer one packaging size: medium

High

NissinThe Daring

brand• Offers variety of unique taste: hot,

extra hot, extra spicy

• Too salty • Less visibility – no product

communication on TV or other media

• More expensive than Pop Mie

Medium


Now let’s deep dive into the Eyes of Retailers…


Least Selling

More Selling

Most & Least Selling brands – for Fish Sardines

Botan (IDR 14,200 - 425 grams – Tomato sauce flavor)

Perceived as heritage brand – has been consumed by Indonesians for a

long time

Most housewives consume Botan as a result of recommendation by their

mothers

Gaga (IDR 11,000 - 425 grams – Tomato and Chili flavor) high availability

combined with variety of flavors

ABC (IDR 15,000 - 425 grams – Chili Sauce flavor) the most expensive

amongst the brands in the market

•Voice of Retailers of Hypermarket


•Botan •ABC•Gaga


Least Selling

More Selling

Most & Least Selling brands – for Corned Beef

Pronas (IDR 18.350 - 340 grams – Plain flavor) is perceived as heritage

brand – has been consumed by Indonesians for a long time

Most housewives use Pronas as a result of recommendation by their

mothers

Cip (IDR 18.000 - 340 grams – Plain flavor) good product quality

combined with affordable price



•Pronas•Cip


Least Selling

More Selling

Most & Least Selling brands – for RTE Sausages

Sozzis (IDR 5200 - 75 grams - Beef flavor) Is the only brand of RTE

sausage in the market

Perceived to:

Offer affordable price

Heavy communication on TV thus supports strong brand awareness

amongst consumers even in a brief period of time



•Sozzis


Least Selling

More Selling

Most & Least Selling brands – for Spaghetti Sauce

La Fonte (IDR 13.600 - 350 grams - Tomato Bolognese flavor)

Perceived as an international brand gives reassurance on product

quality and flavor

Known to offer delicious taste

Heinz (IDR 21.600 - 350 grams - Tomato Bolognese flavor)

Known for its first class quality specializing in the field of seasoning

Have been in the market for long

BUT, significantly more expensive than La Fonte – thus only available

in modern channel and import supermarket (Ranch Market)



•La Fonte •Heinz


Least Selling

More Selling

Most & Least Selling brands – for Cup Noodles

Pop Mie (IDR 2550 – Boiled type – Chicken Flavor – 60 grams)

Pioneer brand in the market of cup noodles thus high product credibility

Widely known manufacturer: Indofood already have strong image in society

Widely available, from hypermarket, supermarket, mini market, even up to

small scale traditional stores

Delicious taste

Nissin (IDR 2490 – Boiled type – Beef Flavor – 65 grams)

More ‘daring’ flavor than Pop Mie – more spicy, more hot, more salty



•Nissin•Pop Mie


Promotional Activities - Overall•Voice of Retailers of Hypermarket

• Usually applied for fish sardines or corned beef buy 1 product gets a spoon, fork or glass

• Only applied at certain time to get rid of old stocks

Description Quotes

Gifts

Discount • Discount is applied for most brands• Usually during festive season, such as

Idul Fitri, Christmas, New Year• Discount up to 15 – 20%

More Often

Less Often

“We usually hold promotion during the

festive seasons. These types of

product are not the types to get much

discount, perhaps due to the small

margin we take from these products”

- Retailer

“Promotion by providing gifts to

consumers is quite effective in making

customers add their purchase amount.

They usually add 1 or 2 more quantity

than their regular purchase”

- Retailer


Perception of Japanese vs Korean brands

Product Description Japanese brands Korean brands

Fish Sardines

Awareness level No awareness No awareness

Perceived Strength Not relevant Not relevant

Corned Beef



RTE Sausages



RTE Curry

Awareness level Medium awareness: Karage No awareness

Perceived StrengthStrong flavor and thick sauce

textureNot relevant

Spaghetti Sauce



Cup Noodles

Awareness levelMedium awareness: although cannot recall the brand name

Medium awareness: although cannot recall the brand name

Perceived StrengthAvailable in variety of flavors

Available in big packaging sizeAvailable in variety of flavor



Key Learning – so far

What have we

learned?

Purchase of this type of product is not something which is carefully thought

through – tend to be automatic, with little chance of switching

Basic trigger for a purchase is usually due to heritage / long standing brand – a

brand used by their own parents, the brand they have used since they were little

thus, familiarity of product (not necessarily product strength compared to other brand)

is very important in this matter

However, taste is an important aspect in driving consumer’s interest to try a new

brand – they are willing to try a new product if it is offering them something new,

something unique

Awareness of Japanese product is low in this category

What is our

opportunity?

We need to introduce our product through the offering of variety of new, fresh and

unique taste in an affordable price – supported by heavy product communication

(just to make our brand stays on their head)

Also give them reassurance of Halal product – drives confidence to consume

Might want to consider to highlight Japanese technology into the important side-

aspects of the product: packaging (safety), and processing way (safety, less

chemical ingredients, less preservatives)


Documents

インドネシアにおける消費財市場レポート Gaining Deeper …...FGD Structure Group Criteria FGD 1 (High Income) Shop mostly at Upper Department Store (Sogo, Metro,