What’s Up With Functional Foods/Drinks

In Indonesia

R E S E A R C H

Research Specialist

INDONESIAN CONSUMER HEALTH PROFILE

MARKET UPDATE

INDUSTRY UPDATE

CHALLENGE AND OPPORTUNITY

WE WILL SHARE TO YOU ABOUT1

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Research Specialist

Research Specialist

INDONESIAN CONSUMERHEALTH PROFILE

BAD SERVICES NEW DISEASES MEDICINE DISTRIBUTIONPOOR NUTRITION

TOP “CLASSIC PROBLEM”HEALTH ISSUES IN INDONESIA

TODAYS PHENOMENON Research Specialist

HEALTH PROBLEMS

TOP 3 CITY WITH OBESITY PROBLEM in Indonesia Jakarta Maluku Sumatera Selatan

Insight : Health problem mentioned above majority happens in lower class that have bad access for health.

Epidemiological Transition and Silent Killer in Indonesia (in the last 2 decades) Hypertension Diabetes mellitus Cancer The lungs problem Heart disease Neutral tube defect

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258 + Million of Indonesian

EduCational Background Income from Main Job

48,4%<1 Mil

17,4%1-1,5 Mil

11,2%1,5-2 Mil

12,1%2-3 MIL

7,6%3-5 MIL 2,7%

5-10 MIL

0,6%>10 MIL

(BPS and MARS Indonesia)

Indeks Kedalaman Kemiskinan (2013-2014) 1.75 – 1.89

Indeks Keparahan Kemiskinan (2013-2014) 0.43 – 0.48

(BPS and MARS Indonesia)

47,8%SD

19,9%SMP

23,1%SMA

0,6%d1/d2

1,5%d3

6,7%d4/s1

0,4%s1/s2

Research Specialist

INDONESIAN BEHAVIOR

HOW INDONESIAN TAKE CARE OF THEIR SELF WHILE SICK?

Berobat Jalan - RS Pemerintah- RS Swasta- Praktek Dokter / poliklinik- Puskesmas- Praktek tenaga kesehatan- Pengobatan tradisional- Dukun Bersalin

59,9% 2,4%48,1%

MENGOBATI SENDIRI RAWAT INAP

Research Specialist

Research Specialist

MARKET UPDATE

TREND CONSUMPTION OF HERBAL MEDICINE IN INDONESIA

2006

2

4

6

8

10

12

14

16

18

20

2007 2008 2012 2014 2015

(Billion IDR)“ BACK TO NATURE ”

25% MEDICINEALL OVER

THE WORLD IS

HERBAL(open source)

Research Specialist

Research Specialist

INDUSTRY UPDATE

Functional food is a fresh or processed food that can provide benefits on health and/or to prevent a disease.

The natural functional foodfruits and vegetables

Traditional functional food(tempe and curd).

Modern functional food(probiotic drinks, drinks prebiotik, oats cereal, snack bars, etc)

OUR PERSPECTIVE ABOUT FUNCTIONAL FOODResearch Specialist

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Market ShareMarket PlayerConsumption TrendNumber of SalesKey Factor

Probiotic DrinkS

Research Specialist

MARKET SIZE PROBIOTIC DRINKSIN INDONESIA

45% 46,9% 47,9%

2013 2014 2015

Research Specialist

BRAND

YAKULT 96.82% 97.44% 97.70%

VITACHARM 2.64 % 2.51% 1.83%

VITAMILK 0.32% - 0.40 %

MARKET SHARE IN INDONESIA

2013 2014 2015

Research Specialist

CONSUMPTION TREND IN ASIA

2008

0,2

0

0,4

0,6

0,8

1

1,2

1,4

1,6

1,8

2009 2010 2011 2012 2013

(Liter/person/year)

2014 2015

Filipina

INDONESIA

JEPANG

MALAYSIA

SINGAPURA

THAILAND

VIETNAM

COUNTRY

FILIPINA 0,26 0,31 0,33

INDONESIA 0,10 0,11 0,14

JEPANG 1,57 1,58 1,61

2013 2014 20152010 2011 20122008 2009

MALAYSIA

SINGAPURA

THAILAND

VIETNAM

0,30 0,32 0,37

0,18 0,22 0,26

1,62 1,61 1,65

0,38 0,44

0,30 0,35

1,67 1,65

0,09 0,12 0,14

0,78 0,77 0,85

0,68 0,67 0,78

0,13 0,16 0,18

0,87 0,87 0,94

0,88 0,76 0,77

0,19 0,21

0,97 1,00

0,73 0,72

0,00 0,00 0,01 0,01 0,02 0,03 0,04 0,05

8,10

20,02

0,70

12,77

3,72

1,17

192,12

CONSUMPTION VOLUME (LITER/PERSON/YEAR) AVERAGEGROWTH (%)

Research Specialist

WHAT DOES IT MEAN?

The growth in the average consumption of Yakult in Indonesia is the second-largest after Vietnam.This indicates that Indonesians are starting to realize the importance of a functional food/drink for health.

Key Factor to be a Leader in Industry

INTEGRATED SCIENCE AND ART“UPSTREAM TO DOWNSTREAM”

Research

Analysis Insight Education

Process

Consumer Behavior

Integrated Marketing Startegy

ProductQuality

Channel Distribution

Regulation

Competitor

Government

X

Z

CustomerServices

A

B

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CUSTOMER PREFERENCES

7 attributes :Khasiat/manfaat kesehatanRasaKebersihan produkIzin dari pihak terkaitKejelasan tanggal kedaluwarsaKomposisi (mengandung pengawet atau tidak)Kehalalan produk

77,84% 73,30%CUSTOMER SATISFACTION INDEX

YAKULT VITACHARM

Importance Performance Analysis, the main attributes that effective for customer purchasing decisions is TASTE.

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SALES of YAKULT and VITACHARM Research Specialist

Marketing Strategy from YAKULT CAMPAIGN

“cintai ususmu minum yakult tiap hari”.

92 % Customer Aware with YAKULT ADS

(*) Perhitungan nilai iklan di TV, Koran, Majalah dan Radio

BRAND

2012 16.471.780.000 1.138.821.783.000

2013 10.763.280.000 1.375.196.636.000

2014 12.794.796.000 1.704.566.924.892

SALES VOLUME (LITER)SALES NUMBER (Rp)YEAR ADS VALUE* (Rp)

2015

2012

2013

2014

53.452.425

65.101.400

75.356.875

25.307.776.000 2.052.996.510.484

- 69.522.343.817

47.500.000 35.502.519.314

90.724.400

3.476.117

1.775.126

280.800.000 38.807.564.912 1.940.378

- 33.986.827.431 1.699.3412015

YAKULT

VITACHARM

YAKULT LADY STRATEGY

to increasing a number of sales in all segment throughout Indonesia

Supply Chain Management and Distribution Channel is the key of YAKULT became a winner and key player of probiotic drinks along this way.

Marketing Strategy of Yakult is the process of their business to educate their customer and change customer habits.

Research Specialist

Research Specialist

SOYJOYModern functional foods - Future brand of Snackbars

Research Specialist

SALES NUMBER of SOYJOY

2008

10

0

20

30

40

50

60

70

80

90

2009 2010 2011 2012 2013

(Billion IDR)

2014 2015 2016

YEARS

2007 4,6

2008 25,8

2009 24,0

SALES (BILION IDR)

2010

2011

2012

2013

34,7

40,2

48,2

56,2

64,2

72,2

2014

2015

Research Specialist

CHALLENGE AND OPPORTUNITYFunctional Foods/Drinks Industry

Research Specialist

BONAKID 3

FRISIAN FLAG Mama

BEBEMAMA

FRISO

QUAKER

FRISO GOLD 3

FRISO GOLD 4

NUSAMIL ASIH

S-26 PROCAL GOLD

YEARS

1998

BRAND YEARS BRANDBRAND YEARS

INDUSTRY PLAYER OF FUNCTIONAL FOODS AND DRINKS

LACTAMIL

1990 ANMUM MATERNA

ANMUM MATERNANUTRI4

YAKULT

2004

2006 NESTLE DANCOWBATITA

2009 SOYJOY

ANMUM ESSENTIAL 3- NUELIPID

ANMUM ESSENTIAL 3

ANMUM ESSENTIAL 4

LOVAMIL

2011

2012

FITBAR

2013 BEBELAC COMPLETE

S-26 PROMISE GOLD

VITALAC 1+

VITALAC 3+

MORINAGA CHIL KID PLATINUM

MORINAGA CHIL SCHOOL PLATINUM

S-26 Nutrisure GOLD

VIDORAN XMART

VIDORAN XMART NUTRIPLEX

2014

SGM EKSPLOR 1+

SGM EKSPLOR 1+ PRESINUTRI +

SGM EKSPLOR 3+ PRESINUTRI+

SGM EKSPLOR 5+ PRESINUTRI+

SGM EKSPLOR PRESINUTRI 1+

SGM EKSPLOR PRESINUTRI 3

2015

CHALLENGE

BRANDING / NAMING of the products IS A BIG THING IN BUSINESS.

How to deliver value added of functional foods/drinks into “acceptable” products in the market.

How to create functional foods/drinks in the market suits consumer wants and needs.

How to change consumer habit and their perspectives about functional foods/drinks.

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OPPORTUNITY

Functional foods/drinks market in Indonesia will grow in the future.

The new brand and new products will appear up in Industry.

Market education process is a good way to make the brand getting bigger and impactful to business.

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L E T ’ S D I S C U S S : )

www.marsindonesia.com

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