PT. Arnott's Indonesia (AI), formerly PT. Helios Arnott's Indonesia (HAl), faces some problems concerning wafer sticks (WS) business. In 1997, the WS market declined, and in 1998, it declined even further. The condition is worsened by the decline of the wafer sticks' profit margin, especially in commodity segment.

Facing the above problems, the company intends to determine marketing strategic plans in finding wafer sticks portfolio in order to increase WS market and to win market share in WS industry. In solving those problems, the company avoids laying-off its workers and intends to maximize its machine capacity utilization.

The result of the observation shows that WS is at the declining phase of its product life cycle. Facing this problem, AI has three options: divesting, harvesting, or rejuvenating the product. Considering that AI has obligated itself for not to laying-off workers and to maximize its machine capacity utilization, and the fact that WS is one of the big three contributors to the company's sales and profits, AI should rejuvenate the products.

This GFP tries to explore the way to rejuvenate WS in the market and to win market share. In doing so, the group has conducted market research, interview with related parties, company's data analysis, and literature study. The group has opinions that AI can do the following actions:

.Applying cost leadership strategy for medium segment products (Joddy,' Astra, and Star) and high segments product (Stikko)

.Launching a new product to serve premium segment that is currently vacant

.Launching WS in small-pack with low price tag .Improving distribution channel

.Doing advertising and promotion

.Maintaining price unifomity at all regions

.Reducing the number of WS brands and start focusing to one national brand



Research Location: PT. Arnott's Indonesia

Supervisor: Hadi Satyagraha, Ph.D.

Accepted on December 1998



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