Image of Marketing Strategy to Penetrate the Low Income Segment with Kiwi Sachet as a Pilot Project

Marketing Strategy to Penetrate the Low Income Segment with Kiwi Sachet as a Pilot Project

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Publisher :IPMI , 1997

The market trend of consumer goods in Indonesia seemed to be contradicts to what happened in the developed country like United States where less packaging would be more appreciated by consumer because of economic or environmental reason. In Indonesia now days, the market especially the low class segment is becoming more fond of small packaging because of the economic (affordable) or the convenience reason. Because of this trend, and also because of the fact that this market size is quite promising, many manufacturers of consumer goods penetrate the market with small packaging like sachet, form filled seal, or mini pack. The two major players in this market are Unilever (Sunsilk, Dimension, Brisk, and Citra) and P&G (Rejoice, Pantene). The total demand in low class segment, the D and E class in Indonesia is very huge. According to the Statistical Year Book 1996 of Indonesia published by 'Biro Pusat Statistik' (Central Statistical Bureau); more than 95 % of Indonesia total population or 190 million people have Rp.300,000 monthly per capita expenditure that categorized as a D and E class segment. Our survey on four sachet body care products: Shampoo, Powder, Hair cream and Body lotion, indicated that the market potential for those products is more than Rp 821 billion.

Because of the above mentioned reason, PT Kiwi Indonesia, as a market leader in shoe polish market and well known of its product 'KIWI shoe polish, wants to expand the market penetration by introducing the Kiwi shoe polish in sachet for one usage only. Despite the existing good leadership position, PT Kiwi Indonesia: had never had thorough experience in launching some small packaging products.

In distribution aspect, the main consideration is using a 'separated salesperson', outside the existing team to sell and distribute the sachet directly to small 'toko, warung or 'kios' that have not been covered by existing sales persons and Kiwi's distributor fleet. The new sales person team should be provided with motorcycle fleet as part of the bottom up approach in the penetration strategy. In addition to this strategy, Kiwi should still maintain and build better relationship with the wholesalers as major sourcing goods for most retailers.

Kiwi shoe polish' sachet is a new product not only in term of packaging but also in term of product characteristic. The product is made of cream (the existing Kiwi shoe polish products are paste and liquid) with sachet packaging. The important consideration to launch this unique product is how to introduce the product to consumers. For this specific purpose, we strongly recommend that Kiwi should have rapid penetration strategy to promote the product through intensive direct promotion and advertising campaign. The popular broadcasting station and TV media could be used for these purposes. Specific for TV media, we will not suggest to promote Kiwi sachet exclusively, but to show all the product lines with a voice inserted in the clip that Kiwi now is available in more affordable packaging. Kiwi should avoid any media with heavy text and minor voice messages. Minor text should be combined with a more communicative figures to get quicker understanding from the target market. The advertising theme should be based on the product quality but now it is available in more economic form. The emphasize is the introduction of Kiwi sachet as a new product line, has a comparable quality, affordable, and how to use it properly.

Research Location: PT. Kiwi Indonesia

Supervisor: Prof. Dr. Wagiono Ismangil

Accepted: 1 December 1997

For IPMI Internal -- Read at Library only.

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Publisher Place Jakarta
xii, 80p.: apps., figs., tabs., 27 cm.

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