0% found this document useful (0 votes)
416 views49 pages

FMCG Outlook Indonesia 2023

This document provides an outlook on the FMCG industry in Indonesia for 2023. It discusses three main points: 1) Inflation is causing consumers to rationalize spending, opting for cheaper brands and smaller basket sizes. This is slowing overall FMCG growth which is predicted to be 6.5% for 2023. 2) Consumer preferences are changing with more purchases moving to affordable brands, secondary cities, rural areas, and digital channels. Understanding shoppers' behaviors across regions and generations is key. 3) To navigate these dynamics, brands need strategies like ensuring competitive prices, expanding beyond Java, leveraging relevant online and offline touchpoints, and understanding evolving media habits.

Uploaded by

MatejGaspar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
0% found this document useful (0 votes)
416 views49 pages

FMCG Outlook Indonesia 2023

This document provides an outlook on the FMCG industry in Indonesia for 2023. It discusses three main points: 1) Inflation is causing consumers to rationalize spending, opting for cheaper brands and smaller basket sizes. This is slowing overall FMCG growth which is predicted to be 6.5% for 2023. 2) Consumer preferences are changing with more purchases moving to affordable brands, secondary cities, rural areas, and digital channels. Understanding shoppers' behaviors across regions and generations is key. 3) To navigate these dynamics, brands need strategies like ensuring competitive prices, expanding beyond Java, leveraging relevant online and offline touchpoints, and understanding evolving media habits.

Uploaded by

MatejGaspar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 49

Click here or press enter for the accessibility optimised version

FMCG Outlook
Indonesia 2023
Click here or press enter for the accessibility optimised version

Foreword
FOREWORD
FMCG Outlook Indonesia 2023: Changing consumer behaviour amidst the
pressures of inflation

Every year, Kantar Worldpanel Division releases a comprehensive report covering the FMCG industry and
sectors in it by showcasing the latest trends and consumers’ purchase behaviours. Some of the sectors
covered in this report include baby, home care, personal care, pantry essentials, snacking, and beverages.

Price inflation pressures mean that consumers have had to manage their expenditures and adjust their
spending. We have compiled some key trends in changing purchase behaviour and provided insights on
how brands need to adapt to find pockets of growth. We have also included the FMCG outlook for 2023 to
Venu Madhav give you an overview of the forecasted growth for the industry. We hope this report can help you to
Managing Director, Worldpanel navigate your strategy in the upcoming year to grow your customers.
Division, Kantar Indonesia
If you have any further queries, please do not hesitate to get in touch with your usual Kantar contact, or
you can fill in the form at the end of this report.

Happy reading and Happy New Year 2023!

Best regards,

Venu Madhav
TUNE IN TO THE
DISCUSSION: Special
Podcast Episode

Venu Madhav, our Managing Director, reflects on the


challenges and highlights of 2022 as well as what lies
ahead in 2023. What are the keys to success for FMCG
Brands in 2022? Tune in to this special episode, hosted by
Corina Fajriyani. Brought to you by Kantar Indonesia

Click on the cover to listen


Click here or press enter for the accessibility optimised version

FMCG
Changing behavior in the face of inflation
Rationalisation in spending
With inflation climbing to its highest level in the With an average price index (API) of 80-90,
past six or seven years, consumer confidence some affordable brands are managing to gain
has recently taken a dip. As a result of this penetration and a high repeat rate above 60%
inflationary pressure, households are focusing by delivering efficacy at the right price. As a
more on necessities like transportation, utilities, result, they are a good alternative for
and education, and holding back on spending downtrading.
non-essentials, such as durable goods.

Over time, shoppers have been able to absorb


the price increases, but are responding by
reducing the size of their basket and buying
cheaper products. With more disposable
income, upper-class consumers are coping with
price increases by buying in volume, such as
bigger packs that provide value for money.
While middle and lower-class consumers opt for
cheaper brands to cope with the pressure of
inflation.
Around one third of FMCG categories have had Food brands may need to adjust their strategy
significant price increases above total FMCG to win shoppers and provide more affordable
inflation of 7%. Higher prices are mainly in food options. The beauty sector, however, is still able
categories, which can be a challenge as these to grow despite price increases, indicating that
are often essential purchases. premiumisation might work to help drive
growth and attract shoppers.
Changing consumer preferences
Rationalising spending drives changes in Across the region, Java remains the backbone
consumer preferences. With different spending with the biggest population. But in other
profiles, it becomes more important to regions that are growing quickly there are
understand what motivates shoppers and their opportunities to attract shoppers and optimise
changing behaviours. As lower-class consumers pockets of growth. Secondary cities and rural
are more likely to drop some categories from areas can increase FMCG spending by 8%
their basket, it means fewer categories can compared to the main cities (5%), providing
grow within this cohort. low-hanging opportunities for brands and
manufacturers to win shoppers.
Consumers are also changing where they shop.
With the growth in digital commerce adoption,
shoppers are becoming more omnichannel in
their purchasing behaviour with different
shopping missions across offline and online
channels. Minimarkets continue to expand
outside of Java, while specialty stores have
become the go-to for some categories, with
growth in rural areas almost double that of the
main cities.

Digital commerce on the other hand, is more


important in the main and secondary cities, as
well as in rural areas. As shopping behaviours
contine to change, retailers and manufacturers
will need a seamless road-to-market strategy
between offline stores and digital commerce.
Food brands may need to adjust their strategy
to win shoppers and provide more affordable
options. The beauty sector, however, is still able
to grow despite price increases, indicating that
premiumisation might work to help drive
growth and attract shoppers.
Leverage relevant touchpoints
As digital adoption grows, brands will need to In Indonesia, TV remains a popular and
cut through the online noise in their digital important touchpoint for building awareness
marketing activities. Brands need to stand out and mass communication. If the brand’s core
online and communicate in a meaningful way buyers are adult shoppers (36+yo), a digital-
with shoppers to create better engagement. By first approach might be less important than it is
doing this they can optimise the different for younger shoppers where the use of digital
touchpoints to engage with different profiles of media will be more effective. Understanding
shoppers. media habits across different generations
allows brands to create the right media
strategy for the right shopper.

In terms of social media, Facebook is the most


used platform across different generations of
FMCG shoppers. Younger people – GenZ and
Millennials – prefer Instagram and TikTok, while
older shoppers prefer more informative media
like Youtube and Google Search.

The forecasted trend is dynamic depending on the macroeconomic situation, our Expert
Solution team can help you to navigate firmly amidst this dynamic. Find out more
FMCG growth outlook for 2023
Currently, the global macroeconomic climate FMCG, including food as the main sector. But
has had limited impact on Indonesia, but this with better macroeconomic conditions, there
may change in the year ahead. Given the could be a more positive outlook.
change in shopping preferences and
behaviours, FMCG growth in the whole of 2023
is predicted to be lower than the previous year
at 6.5%. Slower growth is expected across
FMCG, including food as the main sector. But
What should be
the strategy for
2023?

#1 Price expectation #3 Channel accessibility


With limited cash outlay, shoppers are Post-pandemic, availability in proximity
being forced to rationalise their channels is a must for a smooth recovery
purchases. Make sure products are at the
right price and good quality to compete Build a seamless omnichannel strategy
in the consumer’s basket as buyers are used to a hybrid lifestyle,
especially for categories with high
availability in digital commerce

#2 Deaggregate
Look beyond Java. Outer Java has more
potential with higher population growth
and FMCG spending #4 Understand media habits This chapter uses Kantar's panel FMCG data
With the acceleration of digital, it is per Oct 2022.
As digitalisation continues to accelerate, essential to understand shoppers’ media
secondary cities and rural areas are habits and the different media to engage Watch the webinar version for this chapter
gradually catching up with the right shoppers’ profiles here
Click here or press enter for the accessibility optimised version

Home Care and


General Care
Rationalising for better value
Home Care and General The inflation wave hit the FMCG industry without exception, and the

Care: Rationalising for Home Care and General Care categories have had to manage the
impact and response from consumers. As prices increase, shoppers

better value are looking for for better value to help them adjust their spending.
Back to basics in Home Care

After a stable performance last year, consumer spending on Home Care has increased by 4% due to inflationary
pressures. Necessities categories such as Detergent and Dishwash are the ones that stabilized while smaller
categories are challenged as shoppers save up for the essentials.
Consumers are managing rising purchases compared to last year as time to generalise. Each
prices by buying less in volume and the price increase, especially in demographic is responding
shopping less often and it happens Sumatra and Outer Islands. differently to the economic
across social economic class with However, both regions still situation, so demands different
upper and middle-class consumers managed to have stable volume approaches from brands too. As
are not cutting back as much as growth. well as segmenting different
lower-class consumers. consumer profiles to attract them,
But while this this sector is in brands need to identify each
Across regions, they are allocating growth, brands must not get category’s highlights and
more budget to Home Care complacent and now is not the performance.
purchases compared to last year as time to generalise. Each
Key winnings for brands in FOOD FOR THOUGHTS
dual functionality in their products,
attracting up to 6 million new

Home Care categories: Let's play pretend: your


buyers this year. To win share of
wallet, brands can focus on these
brand is entering Bali for the categories while delivering relevant
first time through NPD.
1. Winning share of wallet across most important in Indonesia, it is minimarket, which packsize
demographic groups important to identify the right price will be your priority and how
During challenging economic and pack size for consumers. In much will you price it? Hear
times, justifying your brand’s value addition to channel, it is also the advice from our experts.
to consumers is crucial as they are important to pinpoint the winning
re-prioritise the needs for home strategies across regions as
care and focus on the essentials for consumers have different 3. Work on extended functions
across social economic class. preferences when it comes to price innovation
Focusing on core variants while and pack size. Shoppers in Java, for Consumers immediate response to
delivering better value for money is example, are spending less on the changing economic situation
still important to win in this sector dishwasher products than those has been to re-prioritise spending in
as the growth not just seen on the who live outside Java, so brands Home Care, and focus on the
new product development only, but need to create different pricing essentials. Although, brands still
also in existing products, especially strategies to match shoppers’ can leverage to innovate on the
for core variants in both the expectations. unique and value-added benefits to
affordable and premium brands. help customers justify the product
value. As it seen from well-
2. Optimise price-pack strategy accepted innovation from the
in specific channels and regions leading Detergent and Dishwash
As proximity channels are still the brands who are innovating with
most important in Indonesia, it is dual functionality in their products,
Personal Care: Finding opportunities amidst the changes Mature categories in General Care
are also recovering as consumption
increases. While last year most of
Personal Care is a broad yet unique General Care category experience
sector from Kantar’s panel data an upsizing movement, this year
perspective as it is highly influenced each categories has different
by the needs and preferences of rationalization in purchase. For
users. For example, babies do not example, smaller formats like
use regular adult soaps while kids sachets provides alternatives in
(above 5yo) might use their Shampoo, while medium and big
parents’ soap. This chapter will packs are the one that still growing
focus on General Care categories, in Liquid Soap which have helped
while Baby and Beauty categories the categories growing positively
are available to read in a separate during this year.
note.

Overall the Personal Care sector growth this year due to price reprioritize General Care by seeking FOOD FOR THOUGHTS
experienced incremental value increases and inflation. The Beauty for smaller pack and lessen the While penetration is still the
growth this year due to price category is driving this growth, with purchase frequency. king in the equation of
consumers are still increasing their growth formula for brands,
cash outlay for Make Up and consumption is also a
Skincare through expensive determining factor as your
products and premiumization. brand needs loyal buyers to
General Care is starting to see signs strive and grow. Find out
of recovery this year following the more
pandemic, with consumers
reprioritize General Care by seeking
Key take-aways for brands in General than two channels. Brands must
ensure they are available across

Care segments: channels so they do not miss


purchase opportunities.
This includes availability in general
trade and minimarkets and also
#1 Optimise pack and price Having a product range that can seem difficult in this competitive digital commerce, which provides
strategy cater for different consumer market, but it is not impossible. opportunities to grow more quickly
In 2021, consumers upsized during choices is no longer a constraint, Brands can either target and reach more shoppers. In this
the transition between stay-at- but an opportunity. consumers’ needs, or the other way hybrid world of offline and online
home and the return to mobility. In around; showcase their unique stores, brands must look to
2022, consumers rationalised their #2 Communicate your brand selling point. One successful story embrace both rather than choosing
purchases in different ways in each value comes from a local premium Body one or the other.
of General Care categories. General Care is one of the few Care brand that gained around
• In the Soap category, liquid is the segments with lower price 900k new buyers in 2022 despite its
only format that grew sensitivity and a clear product 202 average price index.
consumption, driven by growth of proposition. Several brands in both
larger pack sizes attracting 1.5 the value and premium tiers #3 Leverage channel
million households. experienced faster growth, but this opportunities
• Basic toothpaste had significant is dependent on the brand Indonesian consumers are open to
growth (up to 30%) in value and communicating their values shopping in more than one
volume, again through larger pack effectively to consumers. channel, with almost 70% of buyers
sizes. Winning shoppers’ hearts might purchasing General Care in more
Having a product range that can seem difficult in this competitive than two channels. Brands must

This chapter uses Kantar's panel FMCG data per Oct 2022.
Watch the webinar version for this chapter here
Click here or press enter for the accessibility optimised version

Baby
Stand out to win moms’ hearts
Baby Sector: stand out to win moms’
hearts
Baby categories have remained and diapers. The value growth is the sector, which suggests that
buoyant in recent years, with higher than the price increase, shoppers be might be trading down
overall growth of 5% in both 2021 indicating an opportunity to drive to value alternatives to help save
and 2022. Looking in more detail premiumisation in the category. money.
within the sector, nutrition has However, the price of diapers is
grown faster than personal care rising more rapidly than growth of
and diapers. The value growth is the sector, which suggests that
The majority of spend in the baby The basket size for personal care
sector goes on nutrition and across consumer groups varies How do you know if
diapers and is relatively consistent alongside the cash outlay. Upper- Minimarket and GT are still
across different groups of class shoppers who have higher the most relevant touchpoint
consumers. Upper-class shoppers disposable incomes shop in more for your brands? Or if you
seem to spend more on nutrition as categories, while the middle- and should seek opportunities in
they buy more premium/super lower-classes only maintains their other channel?
premium brands. Lower-class basket size. As such, the
shoppers tend to spend more on functionality may be more relevant Get in touch with our experts
diapers since they tend to purchase to middle- and lower-class to explore your opportunities
mostly in sachet packs with a shoppers, while some extended across channels.
higher price per unit compared to benefits may help to attract upper-
larger packs. class shoppers.
The favoured channel to purchase products varied across categories. Online stores are preferred when buying
personal care products, such as Telon Oil, while Diapers are more likely to be purchased in specialty stores.
Minimarket and GT remain the backbone for all categories, but as consumers adopt a more omnichannel
mindset, it’s important that brands tailor their route to market for each different category across the relevant
touchpoints.
The rise of affordable option without
neglecting their efficacy. As a
Brands can secure their spot in
shoppers’ baskets by not only

affordable result, mums can save money


without compromising too much on
offering better affordability, but
also delivering product efficacy that

options product quality. Some brands with


convenient pack sizes in the
encourages repeat purchases and
allowing them to keep growing. `

within personal care category offer better


affordability for mums looking to

essentials rationalise their spending.

Despite price rises, which prompted


some shoppers to adjust what they
spend, some categories - mainly
within essentials - have still
managed to grow volume. Growing
up milk powder (GUMP) has
become one of the most resilient
categories. Some brands in the
category have been able to tempt
in new shoppers by offering
affordable options within their
portfolio. The brands with a price
index of 80-90 provide a more
affordable option without
#MomsKnowBest: higher aspiration for
premium brands
Mums with a newborn baby (up to recruited new shoppers by offering swiftly seize this short window of
1 year old) are willing to spend extra benefits, such as sensitive skin opportunity to win shoppers.
more and shop in more baby care for the personal care sector,
categories so this offers brands an and clearly explaining the product
opportunity for premiumisation. In benefits within the nutrition sector.
fact, some premium brands have It’s important for brands to move
recruited new shoppers by offering swiftly seize this short window of
Rising needs as life returns to normal
As restrictions have been eased Having that said, it could be that
post-pandemic, the personal care the pack sizes are used for different
category has gained ground. In the occasions, for example big packs
baby wipes category, the demand are used in-home and the small,
for big and small packs is on the convenient packs are used on the
rise and demand of both is being go. Brands can leverage this trend
driven by upper-class consumers by optimising their assortment and
with higher disposable incomes. targeting each pack size to
We’ve also seen this trend in baby different occasions.
biscuits where there has been
growth in convenient pack sizes
alongside larger ones.

FOOD FOR THOUGHTS Life post-pandemic is different with what


we had in pre-pandemic times. To navigate through the changes,
our experts can help your brands to identify opportunities and
challenges from your shoppers. Read more
How brands can win in baby categories

#1 Maintain a presence in #2 Keep innovating and #3 Optimise product


shoppers’ basket justify the premium assortment
Even with the pressure of distinction As life returned to normal
rising inflation, baby Mothers want what’s best for after the pandemic, smaller
products remain priority their children, so there is an pack sizes gained relevancy
spends for mums - especially opportunity to drive which suggests an
those with infants (<1 year premiumisation with clear opportunity to optimise
old). Retain your space in product benefits and to stay assortment and meet the
shoppers’ baskets by offering top of mind. need of on-the-go
value for money, tackling occasions.
squeezed household budgets
- especially among the less
affluent - and matching
product benefits to what
mothers want and need.
This chapter uses Kantar's
panel FMCG data per Oct
2022.

Watch the webinar version


for this chapter here
Click here or press enter for the accessibility optimised version

Food
Unlocking pockets of growth
Food: unlocking
pockets of
growth
Although food is the sector most impacted by
inflation, it remains resilient as consumers still
depend on this sector for their Pantry Essentials
and Snacks. Food offers opportunities for that
are unique to each segment and category. In
this sector, we’ll divide our insights into the two
sectors: Pantry Essentials and Snacks.
Pantry Essentials
Pantry Essentials categories grew by 12%, but are buying smaller volumes due to price
consumers are coping with rising inflation by increases. Additional Pantry Essentials such as
scaling down the volume of Cooking Aid Mayo, MSG, Canned Food and Frozen Food are
products they purchased and Reducing the more resilient and have been growing in terms
number of shopping trips. of volume.

FOOD FOR THOUGHTS

Since Inflation was, is, and still going to


be a common denominator across
categories, Kantar is ready to explore
your options with the help of AI/ML.
Contact us!

Consumers are feeling the squeeze of inflation,


and are responding by prioritising their
shopping baskets. Mature categories, such as
Cooking Oil, Soy Sauce, and Instant Noodle,
are more susceptible to inflation as consumers
are buying smaller volumes due to price
All consumers are feeling the impacts of Increased mobility has created more eating out
inflation and we can see the affects in their occasions for Lunch and Dinner in Indonesia,
shopping baskets. Value growth is highest in which is impacting Pantry essentials categories
the upper classes, while the lower classes are further. Based on our Global OOH study,
more likely to cut back by reducing how often Indonesians eat out every four days on
they shop. The good news is that all buyer average, which has led to a drop in the number
cohorts are buying a wider range of pantry of occasions for In Home Cooking compared to
essentials. last year. Brands need a focused strategy to
find more pockets of growth within the Pantry
Essentials category.

Pantry Essentials categories are divided into


Cooking Aid and Instant food.
In this chapter, we’ll explore the key trends and #2 Convenient channels are on the rise
categories in food that offer brands FOOD FOR THOUGHTS
opportunities for growth in 2023. It will come as no surprise that proximity
channels, such as Traditional Trade and Ensuring products’ availability in
#1 Riding the rise of experimental home Minimarket, are key. However, there’s an proximity channels is a must; while
cooking interesting rise in growth within Digital availability in Peddlers and Digital
Despite people cooking at home less often, it Commerce and Peddlers where goods are Commerce should be explored since
remains relevant and there has been a rise in delivered door to door in residential areas. Both these channels gave more convenience
the average number of categories bought, offer greater convenience to shoppers and, to the shoppers. Find out more
especially in Urban Secondary Cities and Rural while the contribution is still small, the growth is
areas. Consumers are experimenting more and strong and steady.
are choosing products to elevate their home-
cooked dishes, which is driving the growth of
the Additional Pantry Essentials categories.
Brands can piggy back on this trend for
experimental cooking and maximise
opportunities for growth, particularly within
Urban Secondary Cities and Rural areas.
#3 The increasing needs of practicality in
lower SES This shows that lower class consumers
actually have the aspiration, but need
The need for quick meals is more important for brands to give them access via the right
lower Class consumers and they are opting for price and value proposition.
affordable options in frozen food to cater this
need. For example, in the Sausage category
value growth for lower SES is triple that of #4 Understand healthy needs for affluent
upper SES shoppers. consumers
In this post-pandemic world, many consumers
are more aware of the importance of health
and wellbeing, especially in food. Products with
healthier credentials do have traction within
this sector although it’s more niche. They are
usually targeted at either children or senior
member of families within the most affluent
cohorts in Urban Areas.

Although the market is niche, consumers


are willing to spend more on healthier
and practical alternatives, so it offers
brands good opportunities for growth.
Snacking
As mobility picks up, On-the-Go Snacking is
starting to rebound while In-Home has
stabilised in recent periods.

The In-home occasions for total snacking sector


- which consists of Snack, Biscuits, Chocolate,
Confectionery and other RTE categories - grew
rapidly in the pandemic because mobility was
restricted. So year-on-year growth for In-home
is higher, but recently has slowed down. In
contrast, On-the-go occasion has rebounded
and continues to grow, even in the recent
quarter.

Kids are the core buyers of On-the-go occasion


and are willing to spend more for total snacking
products. Now they are back to school it’s
driving faster growth in the sector, although
there is also growth among Teens and Adults.
Meanwhile, Young Adult shoppers seems to be
spending more on Ready to Drink beverages or
eating out.
#1 The importance of price-pack strategy

Understanding the balance between the magic price and the right packsize is key for brands to grab
shopper’s attention and to secure a place in their shopping basket, despite changing behaviours.

Magic price refers to a specific price point Because of mobility returns, convenience FOOD FOR THOUGHTS
where shoppers are willing to pay for one packs in the Biscuit category are showing
unit of product. In General Trade, which a rebound for both In-Home and On- How much the consumers are willing to
accounts for 80% of Snacking value the-go occasion. For in-Home occasion, spend for each product in each trip?
share, the magic price has shifted from shoppers might be stocking up on Which consumers group contributes
Rp 1,000-1,500 price point to convenience packs, while sacrificing higher to the overall Snack's value
2,000-3,000 price point. family pack as they might have less growth? Talk to our experts
sharing moments.
#2 Innovate to extend recruitment #3 Seasonal occasions make a comeback

Flavours in snack is one of the key ways to After two years of restricted holiday seasons
attract buyers. This year, chocolate continues because of the pandemic, this year’s festive
to hold the top position in term of value, But season is bigger and this trend is expected
newly launched flavours, like Peach Yogurt, continue in future. Snack categories can benefit
Brown Sugar, and Cheesy Milky Corn, are able through seasonal packs that join in with the
to attract up to 1.5 million households each. festivities and meet consumers’ aspirations.
This shows that innovation is still relevant in
Snack categories and it’s important for brands
to extend their innovation strategies.

This chapter uses Kantar's panel FMCG data


per Oct 2022.

Watch the webinar version for this chapter


here
Click here or press enter for the accessibility optimised version

Beverages
Ride the momentum of mobility comeback
The comeback of the out-of-home market
In 2022, the out-of-home market has been in
recovery mode after getting hit during the
pandemic. Value growth of 6% in 2021
indicates a promising recovery for the
beverages market, with the out-of-home
contribution above 60%, double that of in-
home consumption. As a result, growth for the
total beverages market (in-home and out-of-
home) is 5%, driven by faster growth in out-of-
home. Greater mobility post-pandemic means
that school-age shoppers are again driving the
growth in out-of-home consumption, with
young children (<10yo) and teenagers
(11-20yo) becoming the fastest-growing
cohort. There is huge potential for the
beverages market to attract more young
shoppers to become the main contributor in
Indonesia.
Leverage different references
across shoppers’ profiles

Shoppers’ preferences are varied, and brands need to adjust their recruitment strategy based on the
core buyer profiles. For example, the growth drivers for the dairy and non-dairy segments are
different, with young children (below 10yo) driving the dairy segment and teenagers driving non-
dairy.
Younger shoppers prefer functional drinks, which deliver benefits for growing up, such as liquid milk.
While teenagers tend to be more experimental and look for more flavours as refreshments, such as Get in touch with us to identify your core
ready to drink (RTD) tea and juice. Meanwhile, older shoppers opt for healthier hydration as their buyers and build the effective strategies
main preference, such as mineral water, as well as flavoured refreshments. The fact that some to reach them.
categories are more prominent in certain age groups, it is important for brands to think about their
recruitment strategies by focusing on core buyers and also extending to the other cohorts.
Understand the
triggers for
purchasing
Beverage consumption may depend on specific
needs at specific times of the day. In the
morning, functional drinks, such as liquid milk
and mineral water, may be a preference for
breakfast consumption. Later in the afternoon,
the preference might be for refreshment, which
means some categories like RTD Tea are more
relevant for this occasion. Some categories like
RTD Juice and isotonic are preferred to unwind
later on. Understanding the time of purchase
(and consumption) will help brands target the
right occasion and trigger the purchase with a
relevant narrative. Daytime (11am to 5pm)
becomes the critical window of opportunity for
brands to tap into. Most purchases across the
categories are mid-morning to afternoon,
however, there are finer distinctions when it
comes to early morning and evening windows.
In addition to purchase occasions, taste is a key
factor in triggering purchases for beverage
categories. Some categories are managing to
attract new shoppers with acceptable flavours
in addition to its functionality. For brands,
thinking about the essentials of flavour,
function, and occasion will help trigger
purchases and grow the category.

Time of purchase and consuming are


essential to Beverage sector. Our team
can help you to seek which occasion that
you can tap in and how you can make
the most out of it. Find out more
Optimise the
pricing strategy
Shopper recruitment for out-of-home occasions
should focus on proximity to help drive impulse General Trade Magic Price
purchases. General Trade (GT) is the backbone Dairy 3K, 5K, 10K
in terms of availability. In GT, most consumers Non-Dairy 1K, 3K, 5K
buy in cash, so the pricing strategy will need to
align with the denomination of money,
suggesting an optimum price of IDR 3k, 5k, 10k,
for dairy categories, and IDR 1k, 3k, 5k rupiahs
for non-dairy categories.
Modern Trade Magic Price
Meanwhile, in modern trade, spending may be Dairy 3K, 5K, 10K
higher than in general trade, hence the Non-Dairy 3K, 5K
optimum price point is higher. In summary,
recruiting shoppers in both GT and MT requires
a relevant price point to serve different cash
outlays.
How to grow beverage brands
Brand growth rules are based key
measurements, including growing the shopper This chapter uses Kantar's panel FMCG
base (penetration), driving purchase levels up data per Oct 2022.
(frequency), and setting different key price
points across channels as this contributes to Watch the webinar version for this
value growth. So, how brands can win more chapter here
shoppers?

#1 Enlarging buyer base #2 Driving purchase levels up #3 Offering an optimum price


• Focus on recruiting core buyers and • Offering memorable tastes. This is a • Optimise the price in each channel as
younger consumers to help drive key factor in driving purchases, even for winning shoppers in both GT and MT
recovery, including young children in functional beverages requires a relevant price point to serve
dairy, and teens in non-dairy • Leverage different times of the day different cash outlays.
• Serve the different needs across age within categories to drive various
groups, from functional nutrition to purchase occasions and extend beyond
healthy refreshment traditional times
Click here or press enter for the accessibility optimised version

More from Kantar


Unleash The Potentials of Consumers Return to the Great Outdoors FMCG Outlook Indonesia 2022
Health in Indonesia

Impulse purchase has grown continuously Kantar Indonesia’s Worldpanel Division invites
The landscape of the Consumers Health over the past three years, particularly in you to ponder over what to expect from 2022.
industry; focusing into curative and Sumatra. With first class insights, we serve you a
preventive segment. Recent improvements in shopper recruitment comprehensive outlook to help you establish
Shoppers profile based on their demography and growth have been seen in both RTD dairy the future-proof strategies for your brands.
and their priorities and non-dairy beverages.
Road to market strategy with tailored based The core buyers of RTD dairy are kids aged 10 READ MORE
approach upon different shopping missions and below while the older groups dominate
the non-dairy segment
READ MORE
READ MORE
Venu Madhav Managing Director, Worldpanel Andi Siswanto NBD and New Initiatives
LIST OF CONTRIBUTORS Division, Kantar Indonesia Director, Worldpanel Division, Kantar Indonesia

Helmy Herman Account Director, Worldpanel Delia Nugraheni Account Director, Worldpanel
Division, Kantar Indonesia Division, Kantar Indonesia

Nafira Meutia Account Director, Worldpanel Evita Nirmalasari NBD Director, Worldpanel
Division, Kantar Indonesia Division, Kantar Indonesia

Corina Fajriyani Senior Marketing Manager, Shafira Jumantara Marketing Manager,


Worldpanel Division Worldpanel Division, Kantar Indonesia

Nita Nurjannah Account Manager, Nurul Auliyasani NBD Manager, Worldpanel


Worldpanel Division, Kantar Indonesia Division, Kantar Indonesia

Izzati Aqmarina Account Manager, Hanif Revano Senior Designer, Worldpanel


Worldpanel Division, Kantar Indonesia Division, Kantar Indonesia

Zahra Putri Account Executive, Worldpanel Rayhan Aditya Account Executive, Worldpanel
Division, Kantar Indonesia Division, Kantar Indonesia

Aditya Khariza Account Executive, Worldpanel Muhammad Audry Account Executive,


Division, Kantar Indonesia Worldpanel Division, Kantar Indonesia
Click here or press enter for the accessibility optimised version

Contact the author


Corina Fajriyani
Senior Marketing Manager
[email protected]

Cookies [ 1 ] [ 2 ] Terms [ 1 ] [ 2 ] Privacy [ 1 ] [ 2 ] POWERED BY

You might also like