chapter iii company profile and industry … 26619-a marketing... · mayora indah tbk. pt. mayora...
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CHAPTER III
COMPANY PROFILE and INDUSTRY REVIEW
3.1. PT. Mayora Indah Tbk.
PT. Mayora Indah is one of the well-known national fast moving
consumer goods company in the Indonesia market. Consumers are familiar
with Mayora’s products such as biscuits, coffee, milk and cereal, candy,
chocolate, wafer, beverage, and noodle. Mayora have several strong brands,
not only in Indonesia market but also in abroad. The brands are Kopiko, Roma
Biscuits, Beng-Beng, Torabika, Energen, Choki-Choki, Vitazone and many
more.
Mayora started their business from a family business, their first product
is Roti Marie (ROMA). Because the business was running very well, the owner
decided to build the company and established on 1977. Mayora become public
company on 1990. The ownership of Mayora is held by the Atmadja’s family.
The Board of Directors consists of Yogi Hendra Atmadja (President
Commissioner), Andre Atmadja (Chief Executive Officer), Ongkie Tedjasurja
(Managing Director) and Theo T. Gazali (Sales Director).
Nowadays Mayora have 9 plants, 8 plants are in Indonesia and 1 plant
is in Thailand with eight thousand employees spread out in Indonesia and
overseas. Their products are already distributed to worldwide, including
Europe, Middle East, Africa, South East Asia (Thailand, Malaysia, Philippines,
and Vietnam), India, and China.
Mayora businesses are divided into seven strategic business units with
different legal firm based on products and one business unit specialized in
distribution under Mayora Group as a holding company. The strategic business
units are :
1. Biscuit Division – PT. Mayora Indah
2. Candy Division – PT. Mayora Indah
3. Wafer and Chocolate – PT. Mayora Indah
4. Beverage Division – PT. Tirta Fresindo Jaya
5. Coffee Division – PT. Torabika Eka Semesta
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BeveragesBeverages
Mayora GroupMayora Group
PT. MIPT. MIPT. KMGPT. KMG PT. DSCPT. DSCPT. TESPT. TES
ChocolateChocolate
PT. Inbisco PT. Inbisco NiagaNiaga
WaferWafer
PT. TFJPT. TFJ
CandyCandyBiscuitBiscuit
Instant FoodInstant FoodCoffeeCoffeeHealthHealthFoodFood
BeveragesBeverages
Mayora GroupMayora Group
PT. MIPT. MIPT. KMGPT. KMG PT. DSCPT. DSCPT. TESPT. TES
ChocolateChocolate
PT. Inbisco PT. Inbisco NiagaNiaga
WaferWafer
PT. TFJPT. TFJ
CandyCandyBiscuitBiscuit
Instant FoodInstant FoodCoffeeCoffeeHealthHealthFoodFood
Mayora GroupMayora Group
PT. MIPT. MIPT. KMGPT. KMG PT. DSCPT. DSCPT. TESPT. TES
ChocolateChocolate
PT. Inbisco PT. Inbisco NiagaNiaga
WaferWafer
PT. TFJPT. TFJ
CandyCandyBiscuitBiscuit
Instant FoodInstant FoodCoffeeCoffeeHealthHealthFoodFood
6. Instant Food Division – PT. Delifood Sentosa Corporation
7. Mayora Nutrition – PT. Kakao Mas Gemilang
8. Sales and Distribution Division – PT. Inbisco Niaga Semesta
Exhibit 3-1 Mayora Business Unit
Source : PT. Mayora Indah Tbk.
One of the divisions is Mayora Nutrition, the division exists because
Mayora wants to focus on developing products and deliver healthy products to
their consumer. Besides business purposes, it also has social interest to build
healthy Indonesian family and indirectly build a healthy generation to become
a leader and change Indonesia to become one of respective country in the
world.
3.1.1. Vision and Mission
Mayora’s Vision and Mission are:
• To continuously improve Mayora’s competitive position in the category
• To build strong brands and distribution channels in all fronts
• To provide a challenging, fun and financially rewarding working
environment where fair competition and a responsible attitude are
encouraged
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• To be socially and environmentally responsible
• To bring values to our stakeholders by securing growth and strong
financial structure in the industry
3.1.2. Organizational Structure
Exhibit 3-2 Mayora Organizational Structure
GM SEA
Business
CEO
Sales Director
Managing Director
Head ofSales
OperationGM HR
GM Head of SBUMarketing
CFOOthers GM
Comm. &
LogisticsMarketing Manager
Factory ManagerNational Sales
Promotion ManagerProduct Manager
Regional SPMArea SPM
Marketing StaffArea SP Supervisor
Head of RegionHead of Area
Regianal Account Manager
Key Account Manager
Area Acc, Mngr.MerchandiserAcc. Executive
BOD
Source : PT. Mayora Indah Tbk.
Mayora has lead by BOD including managing director and sales
director. Even though Mayora is a public company but it is still lead by family
members, only managing director and sales director that comes from
professional background. Mayora Group has divided into several departments
in supporting function and sales & marketing function. Each department is lead
by head of departments or general managers as shown in Exhibit 3-2.
Supporting functions are consist of human resources department,
finance and accounting department, purchasing department, resource and
development department, and legal and external affairs department. Marketing
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departments are more complex, its divided into several strategic business units
depends on product category. There are seven business units that lead by their
own general manager which are biscuit, wafer, instant food, coffee, candy,
beverages, and Mayora nutrition. Below General Manager, there are
subordinates with different divisions. The subordinates are marketing manager
for marketing division, national promotion manager for trade marketing
division and also factory manager for factory. Product manager and marketing
staff are reporting to marketing manager or directly to general manager
because several business units didn’t have marketing manager because is
already covered directly by general manager. National sales and promotion
manager also have regional sales and promotion manager, area sales and
promotion manager, and area sales and promotion supervisor as subordinates.
In sales operation, there are three general managers or head of sales,
two responsible for traditional market and one responsible for modern market.
They are all reporting to sales director. Below head of sales traditional market,
there are head of region and head of area, they are responsible to handle sales
operation and work with sub-distributors. While general manager of modern
trade are responsible for key account management and also sales operation in
modern trade.
3.1.3. Competitors
Mayora is facing a lot of competitors in the market, not only the local
companies but also the multinational companies. The competitors may vary
depends on the categories itself, for instance coffee category, mayora is facing
Kapal Api or PT. Santos Jaya Abadi which also a big player in the industry,
now Kapal Api launch Ceremix which is the competitors from Energen Cereal.
The others are Orang Tua Group and Garuda Food which also a big player in
wafer and biscuit category. The multinational companies are including Kraft
Danone, Nestle and also Perfetti Van Melle.
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3.2. Energen
Energen is launch at 1991 in Indonesian market. Since then over 17
years Energen has become a big brand for instant milk and cereal product.
Energen was put under Mayora Nutrition division, and management want this
brand become umbrella brand for Mayora’s product that have nutrition value
base and good for health.
Chart 3-1 TOP 10 Volume Market Share Trend 2007 - 2008
4.1 3.9 4 3.8 3.7 3.7 3.6 3.6 3.4
9.97.88.17.88.8
7.5
7.26.7
8.7
7.07.0
8.87.4
6.47.37.35.6
6.8 7.9 7.47.5
7.2 7.0 7.76.3 6.6
3.9 4.3 3.8 3.5
68.9 69.8 71.0 70.3 69.969.6 70.571.2 70.6 70.9 71.6 71.2 70.0
Jun-07 Jul-07 Aug-07 Sep-07 Oct-07 Nov-07 Dec-07 Jan-08 Feb-08 Mar-08 Apr-08 May-08 Jun-08
Nestle
Quaker
Simba
Energen
Ceremix 2.6 2.5 2.5 2.8 2.5 2.7 2.6 2.3 2.3 2.5 2.3 2.5 3.2
Gery 2.8 3.1 2.9 2.5 2.0 3.2 2.4 2.2 2.3 1.7 1.7 1.6 1.6Spontan 0.2 0.2 0.4 0.1 0.3 0.3 0.6 1.0 1.4 2.4 2.2 2.5 3.0Ligo 0.9 0.9 1.0 1.0 0.8 0.7 0.8 0.7 0.7 0.8 0.8 0.7 0.7Migi Migi 1.3 1.1 0.9 0.7 0.6 0.8 0.8 0.6 0.5 0.5 0.5 0.4 0.3Kelloggs 0.5 0.6 0.7 0.6 0.9 0.6 0.7 0.7 0.6 0.5 0.6 0.6 0.5
Source : AC Nielsen Retail Audit
Energen is a pioneer of this category in Indonesia. From 1991 to 2008
Mayora through PT. Kakao Mas Gemilang has put Energen as market leader
with 70% volume market share in breakfast cereal category. Chart 3-1,
Energen is facing several big players in cereal market, multinational
companies with global brands like Nestle and Quaker Oats, and also local
players like Simba and Gery. Energen succeed to maintain it market share
trend and still positively growth following the growing breakfast cereal
category.
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Table 3-1 Volume Market Share & Distribution Change 2007 - 2008
Volume Share MAT Share Chg
MAT Vol. Chg Max Numeric Dist. ND CHG
MAT 07 MAT 08 07 VS 08 07 VS 08 MAT 07 MAT 08 07 VS 08Kakao Mas Gemilang 67.7 70.5 31.4 62 66Nestle 10.5 8.4 1.7 5 6Quaker Oats 6.8 7.0 30.6 1 1Simba Indosnack Makmur 4.2 3.8 11.9 10 10Santos Jaya Abadi 2.3 2.6 40.5 5 6
Garuda Food Jaya 3.4 2.2 -17.3 8 9Utama Pangan Sentosa 0.1 1.3 1,028.9 2 6Aneka Makmur 0.8 0.6 4.0 0 0Sari Murni Ind. 1.1 0.6 -29.4 9 7Kelloggs 0.7 0.6 9.9 0 0
-0.1-0.5
-0.1
-1.2
1.1
2.8
-2.0
-0.5
0.2
0.3
0-2
0
4
41
0
1
Source : AC Nielsen Retail Audit
If we look at Table 3-1, it shows us that Energen still gaining market
share 2.8% from total cereal market. One of its factors is by expanding and
increasing distribution network for 4% and also through marketing activities
that support the brand.
AC Nielsen, a independent research company was divided breakfast
cereal category into three segments :
1. Hot Cereal : pure grains or oats that still need to cooked or mixed
with hot water, in example Quaker Oats.
2. Mix Cereal : cereal that already mixed with milk and sugar or other
ingredients, in example : Energen and Ceremix.
3. Ready To Eat : cereal that already gone through production process
into finish product and directly ready to eat, in example Kellogs,
Nestle Coco Crunch.
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Chart 3-2 Market Volume Trend and Growth of Cereal Category 2006 - 2008
1,1751,258
1,316 1,296
897
1,118
784
9621,065
64 68 86 97 89 99 103
546
708791
891955
1039 1016
170 181 182 211 186 185 212 176 175
68 77
827
644
Jun-06 Sep-06 Dec-06 Mar-07 Jun-07 Sep-07 Dec-07 Mar-08 Jun-08
Breakfast Cereal Hot Mix RTE
MAT 2008Share
Cereal 100.0Mix 76.9RTE 15.3Hot 7.7
Volume Growthvs MAT 2007
Cereal 26.2Mix 33.7RTE -1.6Hot 28.1
Notes :MAT 2008 starts from Jul 07 to Jun 08
Volume in tonnage
Source : AC Nielsen Retail Audit
Volume wise, Breakfast Cereal market is growing robustly compared to
last 2007. Volume grows by 26.2%, while the value grows by 26.6%. This
growth is driven by the positive movement of Mix and Hot cereal, while RTE
is slowing down. Mix Cereal grow by 33.7% in volume and 37.9% in value,
while Hot cereal grow by 28.1% in volume and 27.9% in value, Chart 3-2. Mix
Cereal is still dominating total breakfast cereal category 76.9% contribution.
That’s why Energen which has 90% market share from mix cereal segment was
also the leader in breakfast category.
Table 3-2 Value Growth Breakfast Cereal and Powder Milk 2007 - 2008
FMCG Category VALUE % CHG YA
Breakfast Cereal
Powder Milk
27.9
18.6
Source : AC Nielsen Retail Audit
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Table 3-2, compared to powder milk, breakfast cereal is having higher
value growth this year. It’s showing that breakfast cereal is one of the potential
categories that have to taken under consideration by companies that running on
this industry. Especially in powder milk industry, because it have indication
that powder milk’s consumer are start moving into mixed cereal products
because of cheaper price and its claiming basic nutrition values. The switching
also affected by economic condition in Indonesia which not very well in the
last few years.
Chart 3-3 Cereal Incidence of Usage 2007
Source : Marketing Research Indonesia
However, despites of the entire growing cereal category, Chart 3-3
shows level incidence of usage or number of cereal consumers is 50%, this
number is below biscuit category who has reached 99% penetration. This could
means that there are still potential consumers that have never been touched
before by the cereal companies and they have never aware of cereal products,
or there are people who are not consuming cereal because they don’t like it or
they have substitute product for it.
60
25
48
21
57
48
50
Makasar
Medan
Surabaya
Semarang
Bandung
Jakarta
Total
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Chart 3-4 Brand Awareness of Cereal Products in 2007
TOM Others Aided
0
0
1
1
1
6
88
2
3
10
10
16
29
8
14
18
27
50
44
44
3
0 20 40 60 80 100
Kellog’s
Vitagen
Corn Flake (Nestle)
Quacker Oats
Simba Sereal
Milo Sereal
Energen sereal
Source : Marketing Research Indonesia
Energen is not only dominating the market, but the brand already well-
known and have the highest top of mind in consumer through brand awareness
research, Chart 3-4. Energen has reached 88% top of mind in consumer, it
means that 88% of respondents already aware of Energen as a brand of cereal
products. This number is very far from the next second largest top of mind
which is milo cereal that only has 6% from total respondents. Energen also has
8% of others brand, which is the second brand that respondents said after the
brand that become top of mind. If we add 88% with 8%, it means there are
96% people supposed aware of Energen.
The percentage of Energen’s brand awareness is very high compare to
other brand in same category and the other category. Energen begin to become
generic brand for cereal product. With a well-known brand, Mayora start look
opportunity to use this brand for making an extension of the product, not only
in the cereal category but also other category as long as is focusing on health
positioning.
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3.2.1. Energen – Brand Extension
Energen is a brand that already established in consumer’s mind, very
high number of top of mind in brand awareness explained that Energen has
become well-known brand in consumers. With using Energen, Mayora think
that Energen can help Milkuit as a subbrand by creating or enhancing
awareness of the product, quality or trust associations, and a customer base.
As a result, there is the potential to save go-to-market time and resources,
thereby enhancing the chances of success.
Aaker mention that recognized brand name on a new product means
that name recognition has been accomplished, and the communication task is
reduced to the more manageable one of associating the name with the new
product class. Milkuit can and should reinforce the brand image of Energen,
thus providing a brand building function instead of weakening the brand name.
Energen is still looking for increase their healthy image, Milkuit is one of key
driver or tools for increasing Energen’s image, Exhibit 3-3.
Exhibit 3-3 Energen Brand Portfolio
Fuel to Win over daily Challanges
Family Teens Female adult Kids
Fulfilling nutrition /indoor
Fulfilling nutrition
/on the go
Teen Energy
Low Sugaron the go Nutrition
Low Faton the go Nutrition
Fun Milk Energy
Milk BiscuitNutritous milk
& cereal
ChocolateVanila
Green Bean
OriginalChocolate
Nutritious Milk & Cereal
ChocolateVanila
Green Bean
Cereal RTD Milk
ChocolatePlain
Milk Biscuit
ChocolateVanila
Green Bean
OrginalChocolate
Cereal Milk Biscuit
ChocolateVanilaGreen
OriginalChocolate
Brand
Target User / Sub Brand
Usage /Promises
Product Category
Variant
Source : PT. Mayora Indah Tbk.
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