Part 3 Facial Care Products - jetro.go.jp · Mustika Ratu and Sari Ayu Both are local brands,...

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Part 3 Facial Care Products From the Viewpoint of CONSUMERS (High, Medium & Low Income) And RETAILERS Copyright (C) 2011 JETRO. All rights reserved. Researched by Nielsen Indonesia

Transcript of Part 3 Facial Care Products - jetro.go.jp · Mustika Ratu and Sari Ayu Both are local brands,...

Part 3

Facial Care ProductsFrom the Viewpoint of CONSUMERS (High, Medium & Low Income)And RETAILERS

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

• The products discussed are:

1. Astringent Toner

2. UV Cream

Overview of Products

Page 68Copyright (C) 2011 JETRO. All rights reserved.Researched by Nielsen Indonesia

Purchase Habits

Type of

Product

Why and when do they

usually purchase it?

Where do they

usually purchase it?

Astringent

Toner

(High and medium income) purchase it once

every 3 month during monthly household

shopping due to stocking behaviour they

purchase 2 to 3 items which will last for

approximately 3 months

(Low income) purchase it once per month

for each purchase, usually buy 1 product only

(due to budget availability)

Majority of high income purchase it in beauty

counters in Department store

Few high income and majority medium income

purchase it in Hypermarket such as Carrefour,

Giant or hypermarket if run out of stock,

they would purchase it in the nearest mini

market

Majority of low income: purchase it in

traditional beauty & drug store located nearby

their homes

UV Cream

Page 69Copyright (C) 2011 JETRO. All rights reserved.Researched by Nielsen Indonesia

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

Influencer Influencer Astringent Toner UV Cream

Out of Store Influencer

WOM from trusted recommender (mother, friend, sibling)

Modeling Behavior – sees significant other using it

Advertising – the intriguing ones

Others

In Store Influencer

In Store Promotion

Sales Promotion Girl Recommendation

Others

Note: the more = stronger influence

Page 70Copyright (C) 2011 JETRO. All rights reserved.Researched by Nielsen Indonesia

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

Less

Important

More

Important

UV Cream

1. Well known and established brand

2. Affordability price of UV cream

is usually quite expensive

compared to other skin care

products

3. Range of brand products:

preferably a brand which also has

other skin care products such as

facial foam, facial moisturizer, etc

4. Natural product ingredients

evaluate by reading the back label

of product ingredients

1. Well known and established brand

2. Range of brand products: preferably

a brand which also has other skin

care products such as facial foam,

facial moisturizer, etc

3. Natural product ingredients

evaluate by reading the back label

of product ingredients

Astringent Toner

Page 71Copyright (C) 2011 JETRO. All rights reserved.Researched by Nielsen Indonesia

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

Influencer Influencer Astringent Toner UV Cream

Product Related Triggers

WOM from trusted recommender (mother, friend, sibling)

Modeling Behavior –sees significant other using it

Advertising – the intriguing ones

Others

Non Product Related Triggers

In Store Promotion

Sales Promotion Girl Recommendation

Others

Note: the more = stronger influence

Page 72Copyright (C) 2011 JETRO. All rights reserved.Researched by Nielsen Indonesia

Standard Expectations of ProductWhat should the standard product have?

Less

Mentioned

More

Mentioned

1. Easy to spread on the surface of

skin texture is not lumpy

2. Easily absorbed by the skin

does not feel sticky after usage

3. Does not smell

4. Medium product efficacy

shows result after minimum 3

months of usage (= brighter and

lighter tone of skin color)

5. Does not cause any side effects

(acne, black spots)

1.Easy to spread

2.Easily absorbed by the skin

3.Good fragrance – any kind of

fragrance as long as not perfume-

like

4.Good product efficacy – able to

remove dirt on face after 1 minute

of application

5.Makes the face clean after usage

6.Does not cause any side effects

(acne, black spots)

Toner Astringent UV Cream

Page 73Copyright (C) 2011 JETRO. All rights reserved.Researched by Nielsen Indonesia

Ideal Expectations of ProductWhat should the ideal product have?

Less

Mentioned

More

Mentioned

1. High product efficacy shows result after

minimum 1 month of usage (= significant

brighter and lighter tone of skin color)

2. High concentrate (thick) but not sticky thus

only use small amount of cream for every

usage cost efficient

3. More affordable price

4. Skin feels moist after first touch of application

5. Natural ingredients – no chemical substances

1. High product efficacy – removes dirt on face

after 2 to 3 wipes on face

2. Fresh fragrance – floral or fruity, thus gives

overall fresh sensation on the face

3. Makes the face soft and moist after usage

4. Good seal thus not easily spill inside the bag

5. Available in different pack sizes smaller size

for on-the-go and bigger size for home usage

6. Packaging is made from strong plastic avoid

glass material, as it sometimes break and leak

inside the bag

7. Natural ingredients – no chemical substances

Toner Astringent UV Cream

Page 74Copyright (C) 2011 JETRO. All rights reserved.Researched by Nielsen Indonesia

Brand Usage

Less

Mentioned

More

Mentioned

1. Ponds

2. Olay

3. Garnier

1. Ponds

2. Viva

3. Olay

4. Garnier

5. Sari Ayu

6. Mustika Ratu

Toner Astringent UV Cream

Page 75Copyright (C) 2011 JETRO. All rights reserved.Researched by Nielsen Indonesia

Brand Evaluation – for Astringent Toner & UV CreamBrand Name

Key Image

Perceived Strengths

Perceived Weaknesses

Favourability Level

PondsThe Market

Leader Brand

•Well known and long established brand•Have a wide range of variants: anti acne/dark spots/blackheads/, oil control, whitening, anti-aging•Used by many, old and young •Highly available everywhere

•None mentioned (most)•Rather expensive price (few)•(for some) Caused effects after usage: acne and dryness on face skin

High

OlayThe Elegant

& Classy Brand

•Elegant and classy brand targeted for upper high class

•More suitable for older women (above 40) - due to image built by product communication (TVC) and observation of users in their surrounding (most)•Expensive price

High

GarnierThe Best

Newcomer Brand

•Has orange/lemon ingredient (few)•Innovative for having ‘unique’ variant: to reduce dark circle under eye (few)

•Rather expensive price •Less availability•Less product communication (rarely sees TVC)

Medium

VivaThe Low class

Brand

•Very safe skin formula due to ‘light’ and basic ingredients •Feels light on the face thus comfortable

•Low quality product•Offers the cheapest price amongst other brands thus less pride in using

Low

Mustika Ratu

The Local credible brand

•Highly natural ingredients thus perceived high skin friendly formula

•Rather expensive – for a local brand Medium

Sari AyuThe Local credible brand

•Highly natural ingredients thus perceived high skin friendly formula

•Rather expensive – for a local brandMedium

Page 76Copyright (C) 2011 JETRO. All rights reserved.Researched by Nielsen Indonesia

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

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

•Ponds

Least Selling

More Selling

Most & Least Selling brands – for Toner Astringent

•Olay

•Garnier

•Viva

Ponds (IDR 14,200 – 100 ml – White Beauty Pore Conditioning)Perceived to offer good selling price not too expensive, not too cheapHeavy product communication thus strong brand awareness

Viva (IDR 3500 – 100 ml – Astringent Cucumber)Price is considered as really cheap thus attracts a lot of low income customers

Garnier (IDR 41.990 – 150 ml - Fresh)Offers more expensive price, thus perceived as more premium productGood product communication although not as frequent as Ponds

Olay More suited for older adult women thus younger adult women feels reluctant to try it Price is perceived as too expensive

Sari AyuNot well-known for toner products emphasize more on make up products

•Voice of Retailers of Traditional Store

•Sari Ayu

What Do The Retailers Say?

What Do The Retailers Say?

Page 78Copyright (C) 2011 JETRO. All rights reserved.Researched by Nielsen Indonesia

Product Visual – for Toner Astringent

•Ponds•Garnier•Viva

Page 79Copyright (C) 2011 JETRO. All rights reserved.Researched by Nielsen Indonesia

•Ponds

Least Selling

More Selling

Most & Least Selling brands – for UV Cream

•Olay

•Viva

•Garnier

Ponds (IDR 45,000 – 50 gr – Flawless White)Those who already use Ponds toner, usually use the UV cream perceived both contain the same ingredient, thus provides better overall safety and results on facial skinGood product efficacy mostly claimed by consumers

Garnier (IDR 39,000 – 50 gr - Light)Good product efficacy mostly claimed by consumersGood product communication although not as frequent as Ponds

Viva (IDR 6200 – 22 gr – Skin Food)Price is considered as really cheap thus attracts a lot of low income customers

OlayMore suited for older adult women thus younger adult women feel reluctant to try it Medium product efficacy result can only be felt after a long period of usage (more than 1 year)(for some) causes side effects such as acne and dryness on facial skin

Mustika Ratu and Sari AyuBoth are local brands, although consumers find them highly safe (due to natural ingredients), the product efficacy is perceived less than other brands in market

•Voice of Retailers of Traditional Store

•Sari Ayu

•Mustika Ratu

What Do The Retailers Say?

What Do The Retailers Say?

Page 80Copyright (C) 2011 JETRO. All rights reserved.Researched by Nielsen Indonesia

Product Visual – for UV Cream

•Ponds •Garnier •Viva

Page 81Copyright (C) 2011 JETRO. All rights reserved.Researched by Nielsen Indonesia

Promotional Activities - Overall•Voice of Retailers of Traditional Store

• Usually initiated by the brand • (Garnier) buy 1 unit of Garnier UV

cream, gets an under eye roll on• (Ponds) buy 2 unit of Ponds UV

cream, gets a make up purse

Description Quotes

Gifts

Discount• Up to 10% only• Applied in special period (festive season

such as Idul Fitri, Christmas, New Year)

More Often

Less Often

“I don‟t do much discount for these

products, because customers will

keep purchasing it even though it is

not discounted. So, why bother

promoting it with discount? Beauty

products are basic necessities, every

woman will buy it no matter what” -

Retailer

“Sometimes I do promotion, but it is

initiated more by the brand, not by me.

Traditional retailers like myself rarely

do promotions for our products,

because beauty care will still sell no

matter what” - Retailer

Page 82Copyright (C) 2011 JETRO. All rights reserved.Researched by Nielsen Indonesia

Perception of Japanese vs Korean brands

Product Description Japanese brands Korean brands

Astringent Toner

Awareness level No awareness

Low awareness(few low and medium income

consumers perceived that Garnier and Olay might be a

Korean brand, due to the TVC talent)

Perceived Strength Not relevant Not relevant

UV Cream

Awareness level No awareness

Low awareness(few low and medium income

consumers perceived that Garnier and Olay might be a

Korean brand, due to the TVC talent)

Perceived Strength Not relevant Not relevant

•Voice of Retailers of Traditional Store

Page 83Copyright (C) 2011 JETRO. All rights reserved.Researched by Nielsen Indonesia

Key Learning – so far

What have we

learned?

Purchase of this type of product usually follows the experimentation pattern –

consumers will try and stick to a certain brand and evaluate its efficacy, but will soon

move to another brand if the product does not meet expectations

Basic trigger for choosing a brand is usually Word of Mouth (WOM) and Heritage

brand (a brand which is used by their moms or aunts in the past). They also check

the ingredients, or at least choose a brand which has a ‘clean track record’ – not

known for any negative cases in the past (like Chinese brands)

Safety and efficacy is a number one consideration for sticking to a brand they

will keep using a brand which gives them effective result (delivers product benefit

within the promised time) but does not cause harm on the skin

What is our

opportunity?

We can win the heart of consumers by introducing our product by product

communication using the ‘heritage setting’ – portrayal of our product being used and

passed on from generation to generation

Might want to consider highlighting natural product ingredient as the number one

product benefit – as most consumers are getting smarter day by day, they demand a

product which gives them a sense of safety

Page 84Copyright (C) 2011 JETRO. All rights reserved.Researched by Nielsen Indonesia

Part 4

Savory SnacksFrom the Viewpoint of CONSUMERS (High, Medium & Low Income)

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

• The products discussed include:

1. Potato Chips

2. Cassava Chips

Overview of Products

Page 86Copyright (C) 2011 JETRO. All rights reserved.Researched by Nielsen Indonesia

Purchase Habits

Type of

Product

Why and when do they

usually purchase it?

Where do they

usually purchase it?

Potato Chips

(High income) purchase it once a month during

monthly household shopping stocking

behaviour they purchase 5 to 10 items which

will last for approximately 1 month

(Medium income) purchase it once a month

during monthly household shopping limited

stocking behaviour purchase only 4 to 5 items

then purchase more in mini market when run out

of stock (purchase 2 to 3 items)

(Low income) most purchase it daily in the

nearby traditional store (1 or 2 items per

purchase) and few purchase it weekly in mini

market (3 to 4 items per purchase)

High income purchase it in hypermarket

Medium income purchase it in hypermarket,

then for additional stocking behaviour purchase

it in mini market

Majority of low income: purchase it in traditional

beauty & drug store located nearby their homes

(Low income) most purchase it in the nearby

traditional store and few purchase it in

minimarket

Cassava Chips

Page 87Copyright (C) 2011 JETRO. All rights reserved.Researched by Nielsen Indonesia

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

Influencer Influencer Potato Chips Cassava Chips

Out of Store Influencer

WOM from trusted recommender

Modeling Behavior –sees significant other consuming it

Advertising – the intriguing ones

Packaging -- the attractive ones

In Store Influencer

In Store Promotion

Salesman Recommendation

Others

Note: the more = stronger influence

Page 88Copyright (C) 2011 JETRO. All rights reserved.Researched by Nielsen Indonesia

Less

Important

More

Important

1.Brand

2.Taste

3.Attractive packaging: bright colors,

cartoon figure visuals

4.Price

Cassava ChipsPotato Chips

1.Brand

2.Taste

3.Attractive packaging: bright colors,

cartoon figure visuals

4.Price

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

Page 89Copyright (C) 2011 JETRO. All rights reserved.Researched by Nielsen Indonesia

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

Influencer Influencer Potato Chips Cassava Chips

Product Related Triggers

WOM from trusted recommender

Modeling Behavior –sees significant other consuming it

Advertising – the intriguing ones

Others

Non Product Related Triggers

In Store Promotion

Sales Promotion Staff Recommendation

Others

Note: the more = stronger influence

Page 90Copyright (C) 2011 JETRO. All rights reserved.Researched by Nielsen Indonesia

Standard Expectations of Product What should the standard product have?

Less

Mentioned

More

Mentioned

1. Salty taste

2. Available in various types of

flavor (Barbeque, Beef,

Chicken, etc)

3. Crunchy texture makes

noise when chewed on

4. Texture not too thick nor too

thin

5. Lots of seasonings visible

on the surface of chips

Cassava Chips

1.Salty taste

2.Crunchy texture makes noise

when chewed on

Potato Chips

Page 91Copyright (C) 2011 JETRO. All rights reserved.Researched by Nielsen Indonesia

Ideal Expectations of Product What should the ideal product have?

Less

Mentioned

More

Mentioned

1. Available in other unique culinary flavors

most flavors in the market are the same

between brands

2. Highly affordable price

3. Less MSG concentration

4. Less preservatives

5. Attractive packaging (bright color, cartoon

figure visuals) to amuse children

6. Available in different pack sizes (large,

medium, small)

Cassava Chips

1. Less thick texture most admit they

experience pain on their tongue and teeth

after chewing for quite a long time

2. Highly affordable price

3. Available in various types of flavor

(Barbeque, Beef, Chicken, etc) most

flavors in the market are usually plain salty

4. Less MSG concentration

5. Less preservatives

6. Attractive packaging (bright color, cartoon

figure visuals) to amuse children

7. Available in different pack sizes (large,

medium, small)

Potato Chips

Page 92Copyright (C) 2011 JETRO. All rights reserved.Researched by Nielsen Indonesia

Brand Usage

Less

Mentioned

More

Mentioned

1. Kusuka (IDR 3750 – 50 gr – Original flavor)

2. Qtela (IDR 3225 – 50 gr – Grilled Cheese / „Keju

Panggang‟ flavor)

1. Chitato (IDR 3500 – 40 gr – Beef Barbeque /

„Sapi Panggang‟ flavor)

2. Pringles (IDR 14,125 – 110 gr – Original flavor)

3. Lays (IDR 3700 – 40 gr – Seaweed / „Rumput

Laut‟ flavor)

4. Piattos (IDR 3375 – 50 gr – Beef Barbeque /

„Sapi Panggang’ flavor)

Potato Chips Cassava Chips

Page 93Copyright (C) 2011 JETRO. All rights reserved.Researched by Nielsen Indonesia

Brand Evaluation – for Potato ChipsBrand Name

Key ImagePerceived Strengths

Perceived Weaknesses

Favourability Level

The Pioneer brand

•Considered as the (local) pioneer in potato chips•Good product quality just the right texture•Unique wavy texture•Delicious taste

•Limited chips in a package

High

The International brand

•International brand, thus reassures good product quality•Long established brands has been in the market for years•Offers variety of flavours

•Highly expensive price Very High

The Best Newcomer brand

•Good product communication - endorsed by celebrity (TVC)•Manufactured by a well-known company (Indofood)

•Rather expensive price Medium

The Low Class brand

•Highly affordable price•Delicious taste – but for some, it’s too salty

Low

Page 94Copyright (C) 2011 JETRO. All rights reserved.Researched by Nielsen Indonesia

Brand Evaluation – for Cassava Chips

Brand Name Key ImagePerceived Strengths

Perceived Weaknesses

Favourability Level

The Pioneer brand

•Considered the (local) pioneer in cassava chips•Available in barbeque flavour

•Only available in big packs Rather expensive price

High

The Best newcomer

brand

•Attractive packaging (bright colour and good visual illustration)•Affordable price

•Perceived less delicious than Kusuka Medium

Page 95Copyright (C) 2011 JETRO. All rights reserved.Researched by Nielsen Indonesia

Product Visual – for Potato Chips

•Chitato

•Lays

•Pringles

•Piattos

Page 96Copyright (C) 2011 JETRO. All rights reserved.Researched by Nielsen Indonesia

Product Visual – for Cassava Chips

•Kusuka•Qtela

Page 97Copyright (C) 2011 JETRO. All rights reserved.Researched by Nielsen Indonesia

Perception of Japanese vs Korean brands

Product Description Japanese brands Korean brands

Potato Chips

Awareness level No awareness No awareness

Perceived Strength Not relevant Not relevant

Cassava Chips

Awareness level No awareness No awareness

Perceived Strength Not relevant Not relevant

Page 98Copyright (C) 2011 JETRO. All rights reserved.Researched by Nielsen Indonesia

Key Learning – so far

What have we

learned?

Basic trigger for purchase is usually advertisement – they will purchase a brand

which they often see on TV

However, purchase for this type of product is basically very simple – no fixed

pattern, as consumers are easily lured by in store dynamics, such as promotions

(offering cheaper price) or the existing of a new taste / variant

No Japanese brand is not apparent in this category

What is our

opportunity?

We can win the heart of our consumers if we can put more emphasis on

promotions during the early introduction of our product – selling our product at

cheaper price will make consumers to (at least) try our brands

Consider offering a set of new, unique, and fresh flavours which is different from

the ones in the market – innovation is the key!

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

Consider highlighting Japanese positive image in the side-aspects of product:

packaging (safety), processing way (less oil, thus safety)

Page 99Copyright (C) 2011 JETRO. All rights reserved.Researched by Nielsen Indonesia

Part 5

Mobile PhoneFrom the Viewpoint of CONSUMERS (High, Medium & Low Income)and RETAILERS

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

• The product discussed is:

1. Mobile Phone

Overview of Product

Page 101Copyright (C) 2011 JETRO. All rights reserved.Researched by Nielsen Indonesia

Purchase Habits

Type of

Product

Why and when do they

usually purchase it?

Where do they

usually purchase it?

Mobile Phone

(High income) purchase it 1 – 2 times every

two years feel the need to keep up with the

trend

(Medium income) purchase it 1 time every 2 –

3 years

(Low income) purchase it 1 time every 5 years

(due to budget constraint)

(High income) purchase it in authorized mobile

phone dealer

(Medium income) most purchase it in

traditional stores / outlet such as Roxy,

Mangga Dua, ITC Ambassador OR in

Hypermarket (few)

(Low income) most purchase it in traditional

stores / outlet such as Roxy, Glodok, Mangga

Dua, ITC Ambassador

Page 102Copyright (C) 2011 JETRO. All rights reserved.Researched by Nielsen Indonesia

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

Influencer Influencer Mobile Phone

Out of Store Influencer

WOM from trusted recommender

Modeling Behavior – sees significant other using it

Advertising – the intriguing ones

Others (following the trend)

In Store Influencer

In Store Promotion

Salesman Recommendation

Others

Note: the more = stronger influence

Page 103Copyright (C) 2011 JETRO. All rights reserved.Researched by Nielsen Indonesia

Less

Important

More

Important

1.Brand

2.Function & Utility (features)

3.Affordability

4.Design and color

Mobile Phone

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

Page 104Copyright (C) 2011 JETRO. All rights reserved.Researched by Nielsen Indonesia

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

Influencer Influencer Mobile Phone

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

Salesman Recommendation

Others

Note: the more = stronger influence

Page 105Copyright (C) 2011 JETRO. All rights reserved.Researched by Nielsen Indonesia

Standard Expectations of ProductWhat should the standard product have?

Less

Mentioned

More

Mentioned

1.Well-known and established brands (Nokia, Sony Ericsson, Blackberry,

Samsung) – preferably not Chinese or Korean brands

2.Provides basic features SMS, call, MMS, Camera Digital, Video

Camera

3.User friendly highly associated with brand

4.Comfortable keypad

5.Affordable price

1. (High Income) price range of IDR 2,500,000 until IDR

3,500,000 is suitable

2. (Medium Income) price range of IDR 1,500,000 until IDR

2,500,000 is suitable

3. (Low Income) price range of IDR 800,000 until IDR

1,000,000 is suitable

Mobile Phone

Page 106Copyright (C) 2011 JETRO. All rights reserved.Researched by Nielsen Indonesia

Ideal Expectations of ProductWhat should the ideal product have?

Less

Mentioned

More

Mentioned

1.Nokia, Sony Ericsson or Blackberry – all three brands perceived as the top 3

brands of mobile phone currently in market

2.Provides advanced features 3G connection, Internet Browsing, MP3 Player,

BUT STILL with affordable price

3.Provides additional (although not advanced) features FM radio, Voice

Recorder

4.User friendly keypad

1. (High and medium income) Qwerty is preferred

2. (Low income) Basic keypad is preferred

5.High durability and high resistance to shock not easily damaged

6.Water resistance not damaged when exposed to water

7.Slim and small design

8.Glossy tone of color (pearl-like)

Mobile Phone

Page 107Copyright (C) 2011 JETRO. All rights reserved.Researched by Nielsen Indonesia

Brand Purchase

Less

Mentioned

More

Mentioned

1. Blackberry

2. Nokia

3. Sony Ericsson

4. Samsung

5. LG

Mobile Phone

Page 108Copyright (C) 2011 JETRO. All rights reserved.Researched by Nielsen Indonesia

Brand EvaluationBrand Name Key Image

Perceived Strengths

Perceived Weaknesses

Favourability Level

The Pioneer Brand

• Perceived as long established brand – has been in the market far more than any other brands

• International quality widely known to be manufactured by Finland

• Rather expensive price• Currently falls behind the trend;

seen as less innovative (especially to Blackberry)

Medium to high

The Innovative Brand

• Highly innovative – first brand to offer Music Player type of mobile phone

• Rather expensive price• Similar designs and similar

functions of most productsMedium

The Sophisticated

brand

• Trendy & sophisticated design professional style

• Not user friendly menu and features are quite difficult to understand

Medium

The Moderate

Brand

• ‘Cookie’ (smart phone) most mentioned this product as LG strength, although they have never used it (only driven by heavy product communication by famous Indonesian public figures)

• Cheapest price – compared to other brands

• Not a well-known brand in mobile phone category specialized more in household durables

• Thus, perceived to only offer basic technology and feature (call, SMS, MMS)

Low

The Breakthrough

Brand

• Establishing the new trend in mobile phone BB is acknowledged as a smart mobile phone

• Unique Blackberry Messenger feature – which enables users of BB to communicate with one another via internal system

• Expensive price – even for second hand product High

Page 109Copyright (C) 2011 JETRO. All rights reserved.Researched by Nielsen Indonesia

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

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

Less Selling

More Selling

Most & Least Selling brands

Blackberry (Gemini non 3G – IDR 2.325.000 and Onyx 3G – IDR 4.200.000)

Becoming a widespread trend amongst all range of age: children, teens,

and adult

High brand pride – users feel more pride in using BB feel as part of a

global advanced community

Nokia (C5 series – IDR 1.700.000 and X5 series – IDR 1.800.000)

Nokia used to be the most selling brand before BB hit the market. But now,

less innovative designs and not up to date technology makes it lost a place

in the heart of their loyal consumers

Samsung (Corby Qwerty – IDR 900.000, Corby Touch Screen IDR 1.200.000,

Monte IDR 1.700.000)

Attractive and elegant design, alongside good affordability

Sony Ericsson

Perceived as the second best selling product after Nokia (again, before BB

hit the market) – due to its entertainment-based products (Music Player)

LG

Since LG is not a household name in mobile phone category, those who

purchase it are usually loyal users of their household products, OR

Looking for affordability rather than feature or brand pride

•Voice of Retailers of Traditional Store

What Do The Retailers Say?

What Do The Retailers Say?

Page 111Copyright (C) 2011 JETRO. All rights reserved.Researched by Nielsen Indonesia

Promotional Activities - Overall•Voice of Retailers of Traditional Store

• After purchasing a certain mobile phone product (usually those above IDR 2,000,000), customers gets a coupon which can be filled with personal bio data and then stored inside a box.

• After a certain period of time, store owner announces the winner

• Price is usually a mobile phone, USB drive, or MP3 player

Description Quotes

Lottery Prize

Bundling Programs

• High frequently done mostly applied for 1 or 2 items every month

• Mobile phone is bundled (sold together) with a certain provider sim card (mostly Esia or XL)

• Is a cooperative act with the supplier when ordering to supplier, retailers already gets the product bundle

More Often

Less Often

“From all the promotional programs I

have held in my store, I think the

bundling program is the one which

receives most positive response from

customers. But there‟s a downside to

it: the mobile phone which is being

bundled is not a branded one, thus it

only attracts low class consumers.

Which means, I can only get minimal

margin out of this promotion” -

Retailer

“Lottery prize is less appealing to my

customers, as most of them usually

prefers direct gifts. But it is useful

enough to drive them to get into my

store” - Retailer

Page 112Copyright (C) 2011 JETRO. All rights reserved.Researched by Nielsen Indonesia

Perception of Japanese vs Korean brands

Product Description Japanese brands Korean brands

Mobile Phone

Awareness level • No awareness

• Medium majority of high income and medium consumers acknowledged that Samsung and LG are both Korean Brand

Perceived Strength • Not relevant

• Offers advanced technology which does not fall back behind other leading brands – perceived able to keep up with the trend

• Offers a variety of product style (e.g basic style, clam-shell style, flip-style)

• Attractive design classy and sophisticated (Samsung)

Perceived Weakness • Not relevant

• Less durable more prone to damage, less resistance to shock

• Less user friendly (LG) difficult to operate menu

•Voice of Retailers of Traditional Store

Page 113Copyright (C) 2011 JETRO. All rights reserved.Researched by Nielsen Indonesia

Product Visual – for Mobile Phone (1/2)

•Nokia C5 •Nokia X5 •Blackberry Gemini •Blackberry Onyx

Page 114Copyright (C) 2011 JETRO. All rights reserved.Researched by Nielsen Indonesia

Product Visual – for Mobile Phone (2/2)

•Samsung Corby •Samsung Corby Touch Screen •Samsung Monte

Page 115Copyright (C) 2011 JETRO. All rights reserved.Researched by Nielsen Indonesia

Key Learning – so far

What have we

learned?

Trend is the major aspect in driving purchase – consumers will likely purchase a

product which is currently buzzing or being in the limelight, regardless of their

knowledge towards the brand mobile phone identity enhances the appreciation

from their surroundings (positive or negative)

Technology which is able to give full time connection to their social world is highly

appreciated

Japanese brand is not yet apparent in this category, but widely known for its

technology in electronic or household products

What is our

opportunity?

When introducing our product, need to focus more on Below The Line (BTL)

activities rather than Above The Line (ATL) creating a trend does not need to be in

a public limelight

Focus first on youth consumers first, as they are quick-spreader for trend

Highlight Japanese advanced technology trademark as one of the brand’s plus

point

Come up with a feature which enables the people to connect with one another in

the simplest, fastest and cost effective way (similar to BBM)

Page 116Copyright (C) 2011 JETRO. All rights reserved.Researched by Nielsen Indonesia

Part 6

Clothing & AccessoriesFrom the Viewpoint of Consumers (High Income only)

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

• The products discussed are:

1. Female Underwear

2. Female Stocking

3. Female Jeans

4. Female Wristwatch

Overview of Products

Page 118Copyright (C) 2011 JETRO. All rights reserved.Researched by Nielsen Indonesia

Purchase HabitsType of

Product

Why and when do they

usually purchase it?

Where do they

usually purchase it?

Underwear

Majority purchase it once every 3 months

Few purchase it once every 6 months

Usually purchase it to upgrade old collection

All purchase in upper Department Store such

as Metro and Sogo (Centro is least

mentioned)

Stocking

Across all, purchase it every 6 to 8 months

Usually purchase it to replace old products

Some purchase it in Upper Department Store

such as Metro and Sogo

While some others purchase it in traditional

shopping centre such as ITC Ambassador,

ITC Fatmawati, ITC Mangga Dua

Jeans

Some purchase it once every 1 – 2 months

While some others purchase it once every 6

months

Usually purchase it to follow the trend

Majority purchase it in upper Department

Store such as Metro and Sogo (Centro is least

mentioned)

But few also purchase it in traditional shopping

centre such as ITC Ambassador and ITC

Mangga Dua

Wristwatch

Do not have certain time to purchase – not

routine nor occasional

Purchase only when they found an interesting

product – usually unplanned

Some purchase in upper Department Store

(Metro, Centro)

But some other purchase in specialized official

wristwatch store in upper department malls

Page 119Copyright (C) 2011 JETRO. All rights reserved.Researched by Nielsen Indonesia

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

Type Influencer Underwear Stocking Jeans Wristwatch

Product Related Influencer

WOM from trusted recommender

Good product quality

Strong brand equity

Others

In Store Influencer

In Store Promotion

Sales Promotion Girl Recommendation

Others

Note: the more = stronger influence

Page 120Copyright (C) 2011 JETRO. All rights reserved.Researched by Nielsen Indonesia

Considerations in Purchase Which factor do they consider prior to making a purchase?

Less

Important

More

Important

1.Strong brand awareness

well known brand

driven by WOM amongst

their peer group and

closest circle

2.Good product quality (soft

textile material, soft bra

wire)

3.Attractive design but with

minimum material

modification (such as lace,

straps, etc)

4.Affordability

Stocking

1.Usage comfort

2.Durability not easily

torn apart after brief

period of usage

3.Affordability

1.Strong brand awareness

well known brand

which specializes in jeans

2.Design must be up to

date, constantly following

the trend, flattering the

body

3.Affordability

4.Textile material soft,

follows the contour of

body

Underwear Jeans

1.Premium brand well

known and expensive

brand in wristwatch

2.Design must be classic

and elegant – not too

many colors (so it does

not look cheap)

3.Affordability

Wristwatch

Page 121Copyright (C) 2011 JETRO. All rights reserved.Researched by Nielsen Indonesia

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

Type Triggers Underwear Stocking Jeans Wristwatch

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

Sales Promotion Girl Recommendation

Others

Note: the more = stronger influence

Page 122Copyright (C) 2011 JETRO. All rights reserved.Researched by Nielsen Indonesia

Standard Expectations of Product What should the standard product have?

Less

Mentioned

More

Mentioned

1.Feels comfortable on the

skin does not cause

irritation on skin

(especially on straps

areas)

2.Less ‘modifications’ on

design, such as lace,

straps, wire, etc

3.Affordable price not

too expensive, not too

cheap

Stocking

1.High durability not

easily prone to damage

2.Easy maintenance

easy to be washed

3.Does not shrinks after

being washed 2 or 3

times

1.Feels comfortable on the

skin does not cause

irritation on skin

2.Up to date model

following the current trend

3.Good thick material (more

preferred than soft denim,

perceived ‘low class’)

Underwear Jeans

1.Branded must be a

well-known and

established brand since a

very long time ago (Seiko,

Alba, Omega)

2.Price should be above

IDR 500,000

guarantees quality and

pride

3.Sturdy looking

4.Attractive design (sturdy

but still doesn’t look too

masculine; preferred to

have diamonds or

accents on it)

Wristwatch

Page 123Copyright (C) 2011 JETRO. All rights reserved.Researched by Nielsen Indonesia

Ideal Expectations of Product What should the ideal product have?

Less

Mentioned

More

Mentioned

1. Highly absorbance to

sweat thus enables

more comfort in

performing daily

activities

2. Model flatters the body

figure (E.g pumps up

the breast and bottom)

Stocking

1. Highly absorbance to

sweat thus enables

more comfort in

performing daily

activities

2. High easy maintenance

can be washed in

the washing machine

1. Model flatters the body

makes the waist

looks smaller but the hip

looks bigger

2. Can be washed in the

washing machine

without damaging its

textile quality

Underwear Jeans

1.High durability highly

resistance to shock or

scratch

2.Easy maintenance can

be cleaned only with

water or special in-home

cleaning product thus

feels comfortable to clean

by themselves

Wristwatch

Page 124Copyright (C) 2011 JETRO. All rights reserved.Researched by Nielsen Indonesia

Brand Usage

Less

Mentioned

More

Mentioned

1.Sorella

2.Wacoal

3.Pierre Cardin

4.Bee Dees

5.Young Heart

Stocking

1.Aimer Feel 1.Levis

2.FCUK

3.Contempo

4.Lili’s

5.Maxx

Underwear Jeans

1.Seiko

2.Alba

3.Omega

Wristwatch

Page 125Copyright (C) 2011 JETRO. All rights reserved.Researched by Nielsen Indonesia

Brand Evaluation – for UnderwearFrom the Retailer Perception

Brand Name

Key ImagePerceived Strengths

Perceived Weaknesses

Favourability Level

The Comfortable and affordable brand

• Strong brand awareness mostly endorsed by Word Of Mouth amongst young teens and woman

• Good quality product• Offers various models and

designs

• Less comfortable than Wacoal• Less product quality than

Wacoal (Wacoal uses thicker material for the outer layer and softer material for the inner layer)

High

The Classy Elegant Brand•Strong brand pride makes female feel confident when using / purchasing it

• More expensive than other brands more branded Medium

The Fun Brand•Attractive design•Comfortable material (uses first class Lycra)

•Rather expensive Medium

The Sporty Brand

•Provides the best sport bra•Emphasizes on comfort in wearing compared to other aspects

• Basic designs, sometimes tend to be boring

• Plain colour

Medium to Low

The Young and Teen Brand

•More bold colour•Daring designs (with straps, laces, certain pattern, animal print, Harajuku style)

•Design is not suitable for adult women

•Design is not comfortable for daily wear

Medium to low

Page 126Copyright (C) 2011 JETRO. All rights reserved.Researched by Nielsen Indonesia

Brand Evaluation – for StockingFrom the Retailer Perception

Brand Name Key ImagePerceived Strengths

Perceived Weaknesses

Favourability Level

The Career Woman Brand

• High Durability not easily torn

• Available in a variety of basic colours (black, grey, white)

• BUT also additional colours (purple, pink. Blue)

• More expensive price –compared to traditional shopping centre

• Less accessible – only available in upper department store (not available in medium department store such as Matahari)

Medium

Page 127Copyright (C) 2011 JETRO. All rights reserved.Researched by Nielsen Indonesia

Brand Evaluation – for JeansFrom the Retailer Perception

Brand NameKey

ImagePerceived Strengths

Perceived Weaknesses

Favourability Level

The Pioneer Brand

•Strong brand image•Good cutting makes women feel more confident when wearing•Innovative always launch a new model every month•First class quality textile material comfortable on skin, soft, follows the body figure

•Expensive price – minimum of IDR 500,000

High

The Designer

Brand

•High class image•More stylish and sophisticated design (using embroidery, Svarosky diamond)

• Highly expensive price is above IDR 1 million

Medium

The Funky Brand

•Attractive design but sometimes perceived as too strange for casual daily wear

• Jeans are only complimentary products, not really focusing in design or innovativeness

Medium

The Chinese Brand

•Affordable price – the cheapest amongst all brands

• Jeans are only complimentary products, not really focusing in design or innovativeness

Medium

The Casual Brand

•Casual basic design•Feels very comfortable on the body

•Rather expensive price for such a basic and moderate design

Medium

Page 128Copyright (C) 2011 JETRO. All rights reserved.Researched by Nielsen Indonesia

Brand Evaluation – for WristwatchFrom the Retailer Perception

Brand Name Key ImagePerceived Strengths

Perceived Weaknesses

Favourability Level

The Well Established

Brand

•Long standing brand have been in market for a long time•First class quality textile material comfortable on skin, soft, follows the body figure

•Less innovative designs are perceived as standard

Medium

The Foreign Brand

•Foreign brand image perceived from European country (although most cannot recall)•Good quality in leather wristwatch

• None mentioned Medium

The Classic Brand

•At spontaneous level, perceived as rather masculine brand more communication of male brand•More innovative offers a variety of design from basic to colourful ones•More colourful theme thus also suitable for younger consumers (20 to 25 yo)

• Highly expensive priceMedium to low

Page 129Copyright (C) 2011 JETRO. All rights reserved.Researched by Nielsen Indonesia

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

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

Least Selling

More Selling

Most & Least Selling brands – for Underwear

Sorella (Bra IDR 100.000 – 130.000 ; Panty IDR 30.000 – 100.000)Strong brand awareness mostly driven by WOM in their peer group and closest circles

Pierre Cardin (Bra IDR 180.000 above ; Panty IDR 75.000 above)Strong premium image – driven by product appearance and expensive price makes customers feel more confident and pridefulInternational image – driven from name

Wacoal (Bra IDR 200.000 – 275.000 ; Panty IDR 60.000 – 75.000)Highly comfortable material – feels soft on skinAttractive designs

Bee Dees More targeted into younger female – thus mostly sells sporty products and less feminine ones

Young HeartUnique and sophisticated designs which are not convenient for daily wear

•Voice of Retailers of Department Store

What Do The Retailers Say?

What Do The Retailers Say?

Page 131Copyright (C) 2011 JETRO. All rights reserved.Researched by Nielsen Indonesia

Product Visual – for Underwear (1/4)

•Wacoal

•Sorella

Page 132Copyright (C) 2011 JETRO. All rights reserved.Researched by Nielsen Indonesia

Product Visual – for Underwear (2/4)

•Pierre Cardin

Page 133Copyright (C) 2011 JETRO. All rights reserved.Researched by Nielsen Indonesia

Product Visual – for Underwear (3/4)

•Bee Dees

Page 134Copyright (C) 2011 JETRO. All rights reserved.Researched by Nielsen Indonesia

Product Visual – for Underwear (4/4)

•Young Heart

Page 135Copyright (C) 2011 JETRO. All rights reserved.Researched by Nielsen Indonesia

Most & Least Selling brands – for Stocking•Voice of Retailers of Department Store

•Not applicable because Aimer feel is the only brand sold in

the market of department store (Centro)

•But Aimer feel price is IDR 49.000

Page 136Copyright (C) 2011 JETRO. All rights reserved.Researched by Nielsen Indonesia

Product Visual – for Stocking

Page 137Copyright (C) 2011 JETRO. All rights reserved.Researched by Nielsen Indonesia

Most & Least Selling brands – for Jeans

Levis (Price range: IDR 500.000 – IDR 1.500.000)Strong brand image driven by WOM and advertisementHighly innovative – often comes up with newly launched productsBUT still considered affordable for a branded product

FCUK (Price range: IDR 1.200.000 – 2.500.000)Image of highly premium brand („designer outfit‟) more confident and prideful in wearing itBUT highly expensive – thus, less affordable, even for higher income

ContempoAffordable price BUT still good brand image (perceived as the middle brand)Casual basic design

MaxxNot very strong in product design perceived as too strange, too unusualNot very appropriate for daily wear

LiliPerceived offering too basic product very similar to the ones being sold in Non Department stores such as ITC or low end boutique

•Voice of Retailers of Department Store

What Do The Retailers Say?

What Do The Retailers Say?

Less

Selling

More

Selling

Page 138Copyright (C) 2011 JETRO. All rights reserved.Researched by Nielsen Indonesia

Product Visual – for Jeans (1/5)

•Levis

Page 139Copyright (C) 2011 JETRO. All rights reserved.Researched by Nielsen Indonesia

Product Visual – for Jeans (2/5)

•FCUK

Page 140Copyright (C) 2011 JETRO. All rights reserved.Researched by Nielsen Indonesia

Product Visual – for Jeans (3/5)

•Contempo

Page 141Copyright (C) 2011 JETRO. All rights reserved.Researched by Nielsen Indonesia

Product Visual – for Jeans (4/5)

•Maxx

Page 142Copyright (C) 2011 JETRO. All rights reserved.Researched by Nielsen Indonesia

Product Visual – for Jeans (5/5)

•Lilis

Page 143Copyright (C) 2011 JETRO. All rights reserved.Researched by Nielsen Indonesia

Least Selling

More Selling

Most & Least Selling brands – for Wristwatch

Seiko (Standard price range: IDR 350.000 – 750.000)Long standing brand in the market thus most consumers purchase it due to heritage habit

Alba (Standard price range: IDR 600.000 – 900.000)Attractive designs (available both in leather, metal, diamonds)Good quality product

OmegaMost customers perceive the brand to be more masculine driven by the George Clooney advertisements on printed media (magazine)Thus, feels less interested to purchase it

•Voice of Retailers of Department Store

What Do The Retailers Say?

What Do The Retailers Say?

Page 144Copyright (C) 2011 JETRO. All rights reserved.Researched by Nielsen Indonesia

Product Visual – for Wristwatch

•Seiko

•Alba

•Omega

Page 145Copyright (C) 2011 JETRO. All rights reserved.Researched by Nielsen Indonesia

Perception of Japanese vs Korean brands

Product Description Japanese brands Korean brands

Female Underwear

Awareness level No awareness No awareness

Perceived Strength Not relevant Not relevant

Female Stocking

Awareness level No awareness No awareness

Perceived Strength Not relevant Not relevant

Female Jeans

Awareness level No awareness No awareness

Perceived Strength Not relevant Not relevant

Female Wristwatch

Awareness level Medium awareness: Seiko No awareness

Perceived StrengthHigh durability (sturdy, not easily broken) and good product quality

(uses number 1 materials)Not relevant

•Voice of Retailers of Department Store

Page 146Copyright (C) 2011 JETRO. All rights reserved.Researched by Nielsen Indonesia

Key Learning – so far

What have we

learned?

Comfort and right-fit while wearing products are basic motivations which makes

consumers stick to a brand

Good product quality combined with premium brand image (brand which

specializes in the category and is widely reputable) is a combo factor in triggering

loyalty

What is our

opportunity?

Focus on high quality product material (underwear, jeans, and stocking) which then

creates an image of good product quality (comfortable to wear and long lasting for

underwear, jeans and stocking)

Focus more on Below The Line (BTL) promotion rather than Above The Line (ATL)

as consumers get lured easily by discounts or buy 1 get 1 promotion

Page 147Copyright (C) 2011 JETRO. All rights reserved.Researched by Nielsen Indonesia