Introduction

With population of 240 million people in 2004, Indonesia is a very attractive market for all consumer goods including toothbrush. Assuming toothbrush is replaced every six months, market size is estimated at 400 million units annually with market value of Rp 1.2 trillion. These figures are expected to grow together with increasing number of health-conscious consumers who will buy more toothbrushes due to shorter replacement period.

However, Indonesian archipelago geographical condition gave challenges to marketers to ensure availability and coverage to tens of thousands of traditional outlets especially in rural areas. In addition, urban consumers' place of purchase is shifting towards growing number of modern trade channels such as minimarkets, supermarkets, and hypermarkets which increased their bargaining power to command higher product listing fees. There is also imbalance competition since top 3 players (Pepsodent, Oral-B, and Formula) have more than 90% market share.

Project Outline

Jordan is a worldwide marketer and producer of oral hygiene products. Its Indonesian operation began in 1990, but abandoned in 1997 due to political upheaval and uncertainty in Indonesian economic outlook. It came back in 2000 but the absence caused significant loss in market share and since then, its attempts to regain the market share proved to have minimal success. Jordan Indonesia agreed to sponsor our group in conducting Group Field Project as the final requirement to graduate from IPMI MBA Program.

We started the project by gathering data of the toothbrush industry and evaluating Jordan's current marketing strategy and past business performance. Focus group discussion is then conducted to explore factors that led consumers to buy and analyze their perception towards Jordan. Market survey is also done in parallel to evaluate market share and competing products. Finally, using benefit segmentation approach we then proceed to develop our final recommendation.



Research Location : Jordan Indonesia