Due to Indonesia's economic downturn recently, consumers' purchasing power decreases significantly and causes a change in consumer behavior. These conditions made Nutri Sari, an orange flavored powdered drink produced by PT Nutrifood Indonesia, losing its aggregate demand and possibility of decreasing its profitability.

Therefore, PT Nutrifood Indonesia needs a strategy to maintain its performance. The objective of this study is to explore the opportunity in ready-to-drink market for Nutri Sari to undergo a market development strategy and to develop a strategic plan and to implement the strategy.

To deal with these problems, we designed our research program strategy into three separated researches. The first research is to estimate the size of potential market and to understand the behavior of ready-to-drink consumers. Subsequent researches are qualitative and quantitative studies of ready-to-drink consumers' perceived values and their intention to switch to Nutri Sari.

In the first research, it is revealed that price was the dominant factor that made consumers stop their purchase. Both Nutri Sari and ready-to-drink products were forced to increase their price because of the rising imported material cost. However, the price increase of Nutri Sari after the crisis is still relatively lower than that of ready-to-drink products. Therefore, Nutri Sari has an opportunity to grab this market segment.

But the opportunity is limited to on premise users segment, as it is revealed in the focus group discussion. Whereas off premise users will not likely sacrifice convenience I practicality value of ready-to-drink products. Using the research result and population data, this new market will contribute an additional 3.4 million sachets of Nutri Sari per month, if it is assumed that each person consumes 4 sachets /month.

It can be concluded from the research result that consumers' have the intention to switch, particularly if exposed to price issue. However, Nutri Sari has several short-comings that should be addressed.

Therefore it is recommended to promote Nutri Sari with a new marketing mix, including the product concept, price, place and communication concept. This action hopefully will grab the attention of this new market and develop the conviction about this alternative.

Product concept is the same, but it is recommended that Nutri Sari should be in single sachet packaging. The positioning should be stressed as the best price (value for money) orange flavored drink with great taste, freshness and healthy.

The distribution channel is recommended to be adjusted with the ready-to- drink behavior, which needed outlets that sell one serving product (sachet), such as supermarkets, kiosks (warung), stores (toko) and pusat perkulakan.

Communication has an important role in this case, since consumers' perceptions toward Nutri Sari are highly affected with the message disclosure. Comparative advertising will be the best fit as communication strategy, to allow consumers make direct comparison of the price and values of Nutri Sari and ready- to-drink products.



Research Location: PT. Nutrifood Indonesia

Supervisor: Dr. Hadi Satyagraha

Accepted: 30 January 1999



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