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Indonesia: Fueling growth
through affordvaluity
Budi Isman
Indonesia: a fast growing market
2005 2006 2007
753
2008
+17%
645555
466
(Value in € mln)
Danone is leading the baby food market
Danone
(Market share in Value – last MAT)
33%
25%
15%
Competitor 1 Competitor 2
Price for GUM vs. other countries: Adjusted price per kg, 2007
Vietnam
14
23
27
34
18
China
Indonesia
Malaysia
Singapore
Source = OC&C report – Shaping and Delivering the 2012 Vision – April 2009
Indonesia:
4th most populated country (230 mln)
4 mln babies born every year, 24 mln children
0-5 years old
High needs in nutrition
Lack of education about nutrition
Economy still growing in world recession
Fast growing baby food market Market value:
We operate through 2 companies
a fast-growing company
Products imported since 1967, full local
operations with 100% NUMICO ownership
starting 1989
develop and market products of the highest
quality and safety in Indonesia
for healthy growth and development
an iconic company
established in 1954 by the Government &
UNICEF
for healthy development of children in
Indonesia
expert of the baby food market, help by
scientists
Sari Husada is launching Gizikita to improve
nutrition of SEL C2&D children for healthy growth
Because today, there is no convenient offer answering all the needs in terms of
affordability, practicality and availability…
11%A
C1
D
E
C2
22%
18%
% population PCC Danone brands
23%
11%
Price index
280
180
100
70Daily spend
€1.5 to €3.2
per household
15%B
Source = OC&C report – Shaping and Delivering the 2012 Vision – April 2009
7.1kg/yr
5.6kg/yr
0.8kg/yr
Gizikita: affordable products with enhanced
nutrition
Milk powder (30g) Porridge (35g) Topping (5g)
Pregnant & lactating
women1-2 years old 2-5 years old
Fe, Vit A, Zn,Ca,
Folic Acid: 25%
Protein: 7%
Fe, Vit A, iodin, Zn, Ca: 50%
Protein: 20%
Fe, Vit A, iodin, Zn,Ca:
50%
Vitamin C: 20%
57Rp/g
66Rp/g
75Rp/g63Rp/g
120Rp/g 160Rp/g
Source = Nielsen Sept 2009
1 serving =
~7% of daily expenses (SEL C2 & D)
% recommended
daily intake
3 SKUs
A tailor-made business model building on Danone
strengths
Adapted R&D / purchasing
Nutritional ‘engine’ in a locally adapted
product matrix
addressing local prevalence of
malnutrition among children <5 yrs and
mothers
focusing on key micro nutrients
Low cost recipe
maximize the use of local raw materials
mix proteins coming from milk & soya
fortified with high quality pre-mix
Low cost packaging
single sachets
low cost filling and packing process
simple outer-boxes
Sales & Operations
A new Route-to-market to reach C2 & D
target (traditional trade) to reach an
estimated numeric distribution of 220,000
outlets in 2014
(in ‘000 of outlets)
Competitor 1
Competitor 2
Sari Husada
Any Infant Milk
Gizikita (target)
Danone Aqua 1,300
220
150
120
97
61
Source = OC&C report – Shaping and Delivering the 2012 Vision – April 2009
+80%
Adapted sales / operations
A strong and strategic education program
Gizikita
PKPU
Nutritionists
Posyandu* cadres
Mothers
1.Gizikita educational toolkit
= to educate mothers about nutritional needs during
pregnancy and lactating period, and for children <5 yrs
* Posyandu = local community health care centre
2. Validated by PKPU, a local NGO with special
status from UN ECOSOC, which also designed the
program to reach a maximum number of SEL C2 &
D mothers
3. PKPU recruits nutritionists and train them based
on Gizikita toolkit
4. Nutritionists gather local community health care
centers’ facilitators and train them
5.Facilitators educate mothers using Gizikita toolkit
and hand-out simple nutritional guidelines
Test market: Western Java
ExplorationSept - Oct 08
DevelopmentNov 08 – Feb 09
ImplementationMar - Sept 09
TestQ4 09 – Q1 10
LaunchQ2 2010
Western part of Java
Test market area
I N D O N E S I A
20 mln population
13% of the Indonesian children below 5 yrs (2.3 mln)
Education program through 25,000 local community health care centers
Indonesian Urban C2D