By the last couple of decades, the Asia Pacific region had developed itself into one attractive market for a wide range of industries, with its rapid growth in economy and population of over two billions. Abundant new brands and products kept coming to the marketplace, both local and foreign, in hope to grab more market share. One of the major multinational players in the 90's for this region was Danone, a top French company. By the year 2000, Danone held the world's # 1 position in fresh dairy foods and sweet biscuits, #2 in mineral water, and has grown to be one of the most admired global companies today.

The 1990s was the period of sustainable and" profitable growth for Danone. With this objective, it was inevitable for Danone to reinforce its activities in Asia Pacific. It was without question that this market was very essential for Danone, if it wanted to be a true global leader. Indonesia, one of the most important markets in Asia Pacific, with a population of more than 200 millions, was one area Danone sought to undertake. Danone entered the Indonesian market in 1994, under the flag of PT Danone Biscuits Indonesia.

PT Danone Biscuits Indonesia started its penetration into the Indonesian market with a few biscuit products, both import and local. The company's initial target was the middle and upper class segments, and to become well known for its quality brand. Danone's products were distributed mainly through supermarket and hypermarket.

The company intended to penetrate the mass-market segment, by introducing a new product with a lower price range. Hence, BISKUA T was launched In March 1999. It was a sugar concentrated biscuit and sold as an affordable energy snack. The same formula had reached an enormous success in India and Malaysia, under the name "Tiger", and PT Danone Biscuits Indonesia hoped that the same success could be repeated in this market.

From the beginning, PT Danone Biscuits Indonesia sought to try a new way of distribution strategy. Instead of using Danone's own distribution force, the company created a strategic alliance with PT Sosro, a bottled drink producer that had been serving Indonesian market with the most poPular bottled tea in the country, '' Teh Botol", for over 50 years. PT Danone Biscuits Indonesia hoped that this relationship would give them the advantages of the distribution system and network that PT Sosro had already established.



Research Location: PT Danone Biscuits Indonesia

Supervisor: Hadi Satyagraha, Ph.D.

Accepted: 26 October 2000



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