part 7 baby goods products from the viewpoint of retailer · •baby does least selling more...

Part 7

Baby Goods ProductsFrom the Viewpoint of Retailer

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

• The products discussed are:

1. Baby Soap

2. Baby Shampoo

3. Baby Bottle

4. Baby Stroller

Overview of Products

Page 149Copyright (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


Baby Soap &

Shampoo

High income and medium income usually purchase it

in once every 1 – 2 month during household

shopping activity buys 1 or 3 units for each

product per 1 time purchase less stocking

behaviour due to concern over expiration date

Low income usually purchase it in once every month

buys 1 unit for each product per 1 time purchase

due to availability of budget

High income and medium income usually purchase

it in Hypermarket such as Carrefour and Giant

Low income usually purchase it in mini market if

they run out of stock, most would go to traditional

stores

Baby Bottle

At first purchase, most usually buys 2 or 3 units

which will lasts for 3 – 4 months then would buy

another set of baby bottles

Majority high income and few medium income

usually purchase it in special baby store such as

Mother Care

Some medium income usually purchase it in

Hypermarket such as Carrefour and Giant

Majority low income usually purchase it traditional

Baby & Kids Store

Baby Stroller

Majority high income purchased it even before the

child is born; buys around 1 - 2 times in the whole

period of baby’s life

Majority medium income purchased it after the child

is born; buys only 1 time in the whole period of

baby’s life

Majority low income is perceived not purchasing it

Majority high income usually purchase it in special

baby store such as Mother Care

Majority medium income usually purchase it in

Hypermarket such as Carrefour and Giant

Majority low income does not purchase it


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

Type Influencer Baby Soap Baby Shampoo Baby Bottle Baby Stroller

Product Related 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

Sales Promotion Girl Recommendation

Others

Note: the more = stronger influence


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

1.Well known

and established

brand

2.Variety of

product

(provides a

whole range of

variant or not)

3.Affordability

4.Packaging

Design

Baby Shampoo

1.Affordability

2.Perceived

Durability

3.Design and

style

1.Well known

and established

brand

2.Perceived

Quality

3.Affordability

Baby Soap Baby Bottle Baby Stroller

1.Well known

and established

brand

2.Variety of

product

(provides a

whole range of

variant or not)

3.Affordability

4.Packaging

Discount

Less Important

More Important


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

Type Triggers Baby Soap Baby Shampoo Baby Bottle Baby Stroller

Product Related Triggers


Modeling Behavior – sees significant other using it


Others

Non Product Related Triggers

In Store Promotion


Others



Least Selling

More Selling

Most & Least Selling brands – for Baby Soap & Shampoo

Zwitsal (IDR 15.600 – 200 ml)Heavy product communication thus strong brand awarenessGood product quality baby skin feels soft and smooth after washPremium image driven by price which is higher than most products in market thus highly attracts the high income consumersInnovative – have lots of new products the first one to introduce Anti-Mosquito lotion

Johnson & Johnson (IDR 14.600 – 200 ml)A long standing brand in baby care market – have been around for long perceived as an expert brand in the marketHeavy product communication thus, strong brand awarenessOffers a variety of product variant and fragrance

Cussons (IDR 14.440 – 200 ml)Affordable price Rather dull packaging design have never changed over time

My Baby (IDR 12.950 – 200 mlAffordable priceUnique packaging bear shaped bottle

Pigeon (IDR 8160 – 60 ml)Very affordable price and practical (small) packaging

•Voice of Retailers of Modern Store

What Do The Retailers Say?



Product Visual – for Baby Soap

•Cussons •Pigeon •Johnson & Johnson

•My Baby


Product Visual – for Baby Shampoo

•Cussons •Pigeon •Johnson & Johnson •My Baby


•Medela

Least Selling

More Selling

Most & Least Selling brands – for Baby Bottle

•Pigeon

•Huki

Huki (IDR 14.500 for 150 ml ; IDR 24.900 for 300 ml)Strong brand awareness driven by WOM and quite heavy product communicationPerceived good product quality looks sturdy and tough, thick bottle quality, and highly durable Available in all size and designs (home vs traveling bottle)

Pigeon (IDR 22.900 for 150 ml ; IDR 54.900 for 300 ml)Highly affordable price – IDR 11,000 for 125 ml bottleAlready strong brand awareness in baby care products (soap, shampoo, etc)

Medela (IDR 62.500 for 150 ml) Although not that affordable – but seen as having premium brand awareness thus creates belief of highly credible productQuite durable – is not easily damaged even after being dropped

Tommee TippeeCredible product claim: Anti Colic system Also available in wide neck nipple for easier latch onProduct is equipped with Hygiene Cap – to protect the ‘dot’ from germs and bacteria in the airReally expensive price – IDR 60,000 for 125 ml bottle

CarrefourRather cheap price thus might trigger perception of less quality product




•Carrefour

•Tommee Tippie


Product Visual – for Baby Bottle (1/2)

•Huki•Pigeon


Product Visual – for Baby Bottle (2/2)

•Medela

•Tommee Tippee

•Carrefour


•Baby Does

Least Selling

More Selling

Most & Least Selling brands – for Baby Stroller

•Pliko

•Quinny

•Junior

Baby Does (Standard price range: IDR 650.000 – 800.000)Offers quite affordable priceBUT supported by good product qualityAvailable in a wide range of: color, size, designEasy to use easy to fold or unfold

Quinny (Standard price range: IDR 3.500.000 – 7.500.000)Innovative =perceived as the first one to introduce 3 wheels stroller – looks more trendy and sophisticatedHigh brand awareness – driven through WOMPerceived high durability looks sturdy and tough perception of good product materialBUT still feels light when being pushed around

Junior (Standard price range: IDR 475.000 – 550.000)Offers very competitive price – one of the cheapest in the marketQuite high brand awareness driven by WOM

PlikoRather expensive – usually more than IDR 1,000,000 above





Product Visual – for Baby Stroller

•Baby Does •Quinny •Junior •Pliko


Perception of Japanese vs Korean brands

Product Description Japanese brands Korean brands

Baby Soap

Awareness level No awareness No awareness

Perceived Strength Not relevant Not relevant

Baby Shampoo



Baby Bottle



Baby Stroller



•Voice of Retailers of Department Store


Key Learning – so far

What have we

learned?

Basic trigger for choosing a certain brand is strong brand reputation – because

they put a lot of emphasis on safety, and reassurance of safety can be communicated

via good brand reputation

What is our

opportunity?

Win the hearts of consumers by placing more emphasis on product ingredient (for

baby soap & shampoo): naturalness of ingredients (not just fragrance) which

guarantees safety on baby skin

BUT we need to be careful in introducing our price, as most consumers think that

baby product is an investment – will be used for quite a long period of time, thus we

cannot introduce a really expensive price from the beginning (well considered

price range)

3Copyright (C) 2011 JETRO. All rights reserved.Researched by Nielsen Indonesia

Part 8

Educational ToysFrom the Viewpoint of Retailer


• The products discussed include:

1. Building Blocks (targeted for 3 – 7 yo)

2. Puzzle (targeted for 3 – 7 yo)

Overview of Product


Purchase Habits

Type of

Product



Where do they


Building

Blocks &

Puzzle

(High income) purchase it 1 – 2 times every 1

– 2 months due to availability of budget and

the perceived notion that it is a basic need for

children

(Medium income) purchase it 1 – 2 times per

6 months does not see it as basic needs for

children

(Low income) quite rarely purchase it

usually purchase during special occasion

(child’s birthday)

Majority high and medium income purchase it

Hypermarket such as Giant, Carrefour,

Hypermart

(Low income) most purchase it in traditional

children stores nearby



Type Influencer Building Blocks Puzzle



Modeling Behavior – sees significant other consuming it


Packaging -- the attractive ones

In Store Influencer

In Store Promotion


Others




1.Well known and established brand

2.Origin of manufacturer

3.Function

4.Affordability

PuzzleBuilding Blocks

1.Variety of choice (numbers, alphabets, etc)

2.Design & Color

3.Affordability

Less Important

More Important



Type Triggers Building Blocks

Puzzle

Product Related Triggers


Modeling Behavior – sees significant other using it


Others

Non Product Related Triggers

In Store Promotion


Others



Standard Expectations of Product

1.Affordable price – as most of the

good brands in the market are

perceived quite expensive

2.Less chemical substance

perceived by less chemical smell

on product

3.Available in a variety of model (for

example: car, tank, airplanes)

Building Blocks

1.Affordable price – not too

expensive, not too cheap

2.Made from soft texture

preferably not wood due to safety

concern (afraid the child might try

to eat or bite it)

3.Available in various types

(alphabet, numbers)

4.Made in bright colors to drive

children curiosity towards color

Less Important

More Important

Puzzle


Standard Expectations of ProductWhat does the standard product should have?

1.Manufactured country are from USA and

Europe (Asian countries such as China

have credibility issue concern on

safety)

2.Affordable price for international brands

(E.g Lego)

3.No chemical substance perceived by

no chemical smell on product

4.Offers a variety of model for girls (for

example: house, car, bridge) fees that

girls also need to play with this toy to

practice their visual spatial ability

Building Blocks

1.Highly attractive design unique

brighter colors

2.Not just emphasizing on international

cartoon figures (Minnie Mouse, Donald

Duck), but also local cartoon figures

(Unyil, Si Komo, Upin Ipin) to introduce

children to their cultural heritage

3.Easy to maintain can be cleaned by

soap and water; or

4.Sold with its cleansing product sort of

lotion to help clean the puzzle

Less Important

More Important

Puzzle


Most & Least Selling brands – for Building Blocks

Lego (Standard price range: IDR 180.000 above - All Types)

Strong brand equity long standing brand in the market and world wide

known

Manufactured in the US thus, a guarantee of high product credibility

(much safer compared to Chinese brand)

Image-wise parents feel more pride and confidence to the product

Allows high level of creativity one bucket of cubes can be made into any

kinds of from (kids are free to create!)

Kino Toys (IDR 39.900 – Trans X type)

More affordable price (due to being a local brand)

Unlike Lego (which one bucket of cubes can be made into any kinds of

forms), Kino is more specialized (one bucket of cubes can only be made

into certain form, such as airplanes, car, tank) thus kids perceived to be

able to learn on how to focus their effort to reach a certain goal



Less Selling

More Selling


Product Visual – for Building Blocks

•Lego

•Kino Toys


Most & Least Selling brands – for Puzzle

Evamats (IDR 28.900 for 4 pieces ; IDR 69.900 for 40 pieces)

Uses thicker material, thus it feels more comfortable to be sat on

Offers more variety of types (both alphabet and numberings)

Available in a variety of colors – cheerful bright ones, such as yellow, pink,

green, purple, baby blue, etc

Innovative – have special editions which features Disney cartoon figures

(Minnie Mouse, Mickey Mouse, Donald Duck)

Bigiva (IDR 73.900 for 120 x 220 cm)

Uses thinner material, thus feels less comfortable to be sat on

perceived image of less durable (easy to torn)

Less appealing colors – mostly just available in blue, yellow and pink

Less innovative – since it first came out into market, it had not launched a

new product

Cheaper price compared to Efamed, thus driving the image that it offers

less product quality



•Evamats

•Bigiva

Less Selling

More Selling


Product Visual – for Puzzle

•Evamats •Bigiva

Picture not available

X


Perception of Japanese vs Korean brands

Product Description Japanese brands Korean brands

Building Blocks



Puzzle



•Voice of Retailers of Hypermarket



What have we

learned?

Most consumers have very limited knowledge of products in this category

Thus, they rely mostly on salesman recommendation

Price is also an issue

What is our

opportunity?

Support promotion activities with knowledgeable salesmen, that can provide

customers with detailed explanation about the function and benefit of products and

relate these to children’s cognitive and physical development

Consider introducing affordable price as a first start – not far from the price of

current best selling brands


Part 9

Baby GoodsFrom the Viewpoint of Retailer


• The products discussed include:

1. Breast Pump

2. Diaper Bag

3. Baby Basket

Overview of Product


Purchase Habits

Type of

Product



Where do they


Breast Pump The ones who purchase these three

products are usually the female relatives

(sibling, cousins, friends, or colleagues) of the

mother gives it as birth present

Thus, they will only purchase 1 time after the

mother had given birth to her baby

As for Diaper Bag & Baby Basket, there are

some mothers who goes to the store for

purchasing themselves

Diaper Bag: 1 – 2 times in whole baby life

period

Baby Basket: 1 time in whole baby life period

They prefer to shop at the traditional stores

because it is located near their office, have

affordable price, allows bargaining, and

enables them to freely see and observe the

products (unlike in department store, or baby

specialized store where there are minimum

interaction between consumers and products)

Diaper Bag

Baby Basket

•Note: those who purchase at this store is likely SEC AB above (office people) since store is located to

central business district area



Type Influencer Breast Pump Diaper Bag Baby Basket




Perceived better product efficacy


Packaging / Design -- the attractive ones

In Store Influencer

In Store Promotion


Others




1.Well known and established

brand

2.Perceived Efficacy – derived

from type: Manual or Electric

3.Style & Design

4.Affordability

Diaper BagBreast Pump

1.Size and Inner Chamber design (lots

of pockets or storage space or not)

2.Variety of Design

3.Attractive Colors

4.Affordability

Less Important

More Important

Baby Basket

1.Style & Design

2.Good material (using soft textile and

sturdy metal / plastic)

3.Perceived durability – derived from

the look of product (sturdy or not)

4.Affordability


Type Influencer Breast Pump Diaper Bag Baby Basket




Perceived better product efficacy


Packaging / Design -- the attractive ones

In Store Influencer

In Store Promotion


Others




Standard Expectations of Product

1.Affordable price – as most of the

good brands in the market are

perceived quite expensive

(regardless of the brand)

2.Usage friendly – not difficult to be

operated, not allowing complicated

technical features

3.Easy to clean - will not damage if

cleaned by household cleaning

products (dish soap)

Breast Pumps

1.Big size

2.Made from thick material, thus

perceived high durability (not

easily torn)



Less Important

More Important

Diaper Bag

1. Sturdy looking, thus

perceived high durability

2. Available in variety of color –

at least blue for boys, and

pink / yellow for girls

3. Good product design – looks

curvy, round, and fun

4. Affordable price – not too


Baby Basket


Ideal Expectations of Product

1.Electric rather than Manual

makes it easy to pump, less effort

2.Affordable price – as most breast

pump products are considered too

expensive for most customers

3.Available in variety of color – at

least blue for boys, and pink /

yellow for girls

Breast Pumps

1.Provides lots of chambers /

pockets inside the bag – thus

makes it easier to organize baby

goods inside (milk, diaper, clothes)

2.One design available in variety of

size (big, medium, small)

3.One design available in variety of

color – at least blue for boys, and

pink / yellow for girls

4.Water proof material – thus they

do not have to worry if rain will

damage the diapers inside

5.Available in Disney cartoon serial

– to amuse the babies

Less Important

More Important

Diaper Bag



2.Available in variety of color – at

least blue for boys, and pink /

yellow for girls

3.Offers Disney cartoon characters

for its design style – helps amuse

the babies

Baby Basket


Most & Least Selling brands – for Breast Pumps

Medela (Standard price range: IDR 800.000 - All Types)

Electric pump, thus enables quicker, safer, easier process of milk pumping

Does not trigger feelings of pain / hurt on the breast

Image-wise already a famous brand in the category, thus feel more pride

and confidence to the product

Expensive price thus assures consumers that the quality is worth it

•Voice of Retailers of Traditional Store


Less Selling

More Selling

•Medela

•Phillips Avent

Phillips Avent (Standard price range: IDR 350.000 until 400.000 - All Types)

Manual pump, thus more effort and more time consuming in pumping

seen as unpractical and out of date

Less colorful design perceived as very basic, with plain colors (white)

Less durable – the white color triggers perception that it seems as more

vulnerable to damage



Product Visual – for Breast Pump

•Medela •Phillips Avent


Most & Least Selling brands – for Diaper Bag

Okiedog (Standard price range: IDR 350.000 until 500.000 – All Types)

Available in a variety of size (big, small, medium)

Available in a variety of design

Material of textile is perceived to be thick, strong, durable

Simple design – not involving too many visuals

Have their own catalogues – consumers can ask one and bring it home to

study it



Less Selling

More Selling

•Okiedog

•Skiphop

Skiphop (Standard price range: IDR 150.000 until 200.000 - All Types)

Perceived dull design – plain color, plain design, less visuals / pictures

Medium size – not available in big size or small size

Elegance (Standard price range: IDR 75.000 until 150.000 - All Types)

Design is perceived as old-fashioned

Material of textile is perceived so smooth consumers admit worrying that

the bag would break if they bring something heavy in it

Material of textile is difficult to clean


•Elegance


Product Visual – for Diaper Bag (1/2)

•Okiedog


Product Visual – for Diaper Bag (2/2)

•Skiphop •Elegance


Most & Least Selling brands – for Baby Basket

Okiedog (Standard price range: IDR 750.000 until 1.000.000 – All Types)

Strong brand equity perceived as the long standing brand in this category

Strong WOM always being referred by other housewives

Available in variety of design

Available in variety of colors

Attractive packaging design



Less Selling

More Selling

•Bright Starts

•Deluxe

Deluxe (Standard price range: IDR 350.000 until 500.000 - All Types)

So far, only available in one design and one color (blue)

Less attractive packaging design

Summer (Standard price range: IDR 275.000 until 400.000 - All Types)

Looks rather light thus perceived as less durable

Design is seen as ‘rather stiff and formal’, unlike Bright Starts which seems

to look more ergonomics

Less attractive packaging design


•Summer


Product Visual – for Baby Basket (1/2)

•Bright Starts


Product Visual – for Baby Basket (2/2)

•Deluxe •Summer



What have we

learned?

Most consumers have limited knowledge of brand in this category – except for

Breast Pump product which brands are more familiar to housewives

Basic trigger for choosing a certain brand is perceived product quality – which is

usually driven by the outer look / appearance (attractive design or not; does it look

sturdy or durable or not)

At times, lack of knowledge of the category forces them to rely on the knowledge or

information gathering from the sales staff in the store (easy to try or switch brand if

advised by sales staff)

What is our

opportunity?

Support sufficient product training to sales staff, so they can provide customers with

detailed explanation about the function and benefit of products

For Diaper Bag and Baby Basket, might want to focus more on developing attractive

design and colours

As for Breast Pump, consider providing the more advanced technology (by

mentioning Japanese brand in the Ad)


•APPENDIX


Thank you so much for this opportunity…

Best of luck.


part 7 baby goods products from the viewpoint of retailer · •baby does least selling more...

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