This report reviews PT. Procter & Gamble Indonesia's current marketing policy for Vicks Inhaler and suggests a marketing plan to build a better Vicks Inhaler business in Indonesia, doubling its sales volume to 66 MSU in three years. The study is restricted in so far as changes in product formulation and/ or price reductions are concerned.



The following research methods were used to project the current expected sales and estimate the potential sales volume for Vicks Inhaler:

- Analysis of market survey conducted by Frank & Small ( October 1990 )

- Statistically data of the Indonesian population by age group, expenditure/capita & province.

- Shipment and off take data for Vicks Inhaler (1992)

- Trade Survey (Distributor & Pharmacists)

- Questionnaire administered to candidates majoring in business administration at IPMI, prospective candidates for management education and IPMI faculty.



Findings of the research show that the expected sales volume now is 33 MSU. The potential is 68 MSU. The sales penetration is concentrated mostly in Java with the exception of West Java. Here the penetration is far below the average penetration level. The off take data for Yogyakarta far exceeds the potential. The consumer awareness for Vicks Inhaler is fairly high but the trial rate and repurchase intention is low, close to 30%.

Vicks Inhaler is distributed together with other P&G products. The pharmacists advocate Otrivin (nasal drops) as a remedy for nasal congestion, if prodded. However, it is quite a rare phenomenon for the consumer to seek the pharmacist's opinion regarding medication for nasal congestion problem.



From our survey we find that the main reason why people do not try Vicks Inhaler is that they do not need it. The inefficacy of the product is the main deterrent for repurchase. The response as to what would stimulate repurchase remains inconclusive. There seems to be some concern regarding perceived side effects associated with usage. A small percentage of people perceive Vicks inhaler as a refresher.



We conclude that the potential volume for Vicks Inhaler can be realized at an awareness level of 85%; trial rate of 35%; and the repurchase intention of 35%. The role of advertising should be to build and maintain interest and openness to experience. More research needs to be done to compare the coverage of retail outlets with the potential. The detection and exploitation of a new functional use (as a refresher) should be obtained by a market survey.



Based on our analysis we would like to recommend as follow:

- Frequent exposure to an entertaining ad for maintaing tile top of the mind recall. The proposed budget for advertising & promotion is Rp. 250 m in 1st year; Rp 500 m in 2nd year; Rp 250 m in the 3rd year. 0 Set sales target per province

- Conduct market survey in Yogyakarta

- Position Vicks Inhaler as "Anywhere Anytime" product

- Size reduction to attract new users (with lesser incidence of cold) and/or enter new markets.

- Find new uses as a contingency plan.



Research location: PT Procter & Gamble Indonesia

Supervisor: Hadi Satyagraha, PhD

Accept: December 1993