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Ichitan raining gold bars on lucky Indonesian RTD tea consumers

By
Tan Heng Hong
-

Founder of Ichitan PLC, Tan Passakornnatee famously known as Mr Ichitan, will be giving away 100 pieces of gold bar (30g) to “Harap Harap Emas” contest lucky winners in Indonesia. The contest, known literally in English as “Dreaming for Gold”, is a continuation of the RTD tea producer’s earlier highly successful “Mendadak Jutawan” or millionaire campaign from April-July 2017.

The “Harap Harap Emas” contest will run from October 2017 to December 2017. Coincidentally, Ichitan is also currently distributing gold bars to winners in its home market in Thailand.

https://www.facebook.com/ichitan/videos/1536604059696342/

New Ichitan Thai milk tea

During the “Harap Harap Emas” launching ceremony on 3 October 2017, the company unveiled the new Ichitan Thai Milk Tea for the Indonesia market. The new RTD tea drink is the first of its kind in the country and will be produced locally. The Thai milk tea will be made available in the local market soon and rides the growing popularity of Thai milk tea in Indonesia.

Image from Ichitan Indonesia Twitter

Marketing cost of “Harap Harap Emas”

Ichitan will be giving away a total of 3kg of gold. At the current price of USD 40,973 per kilogram of gold on 4 October 2017, the marketing expenses for gold alone will be a minimum of USD 122,919, which is equivalent to IDR 1.66 billion or 337,659 bottles of Ichitan Green Tea Honey (420ml) at IDR 4,900 per bottle.

Together with the previous IDR 9 billion cash giveaway, the marketing costs for the two programs amount to around IDR 10.66 billion or USD 791,511 (THB 26.41 million). As a comparison, Ichitan generated total revenue of THB 106.6 million from export in 2016, according to Ichitan Group PLC Opportunity Day Q1, 2017 held on 29 May 2017. Export revenue, which includes Indonesia, surged to THB 249.5 million in the first quarter of 2017.

Mini Me takeaway

Mr Ichitan is famously recognised as the person who generously gives away gold bar or cash to consumers. Such marketing technique has worked well in Thailand in the past. In Indonesia, the concept of giving away 100 gold bars and not just a handful of them is new, thus giving consumers a fair chance to walk home with the prize.

Ichitan’s method of splurging consumers with cash and gold will definitely boost sales in Indonesia. It also comes at an opportune time as sales of RTD tea in Thailand is falling, making Indonesia an important market for the company.

The image below was taken from Ichitan Q1 2017 Opportunity Day

Hydro Coco scenic packaging encourages consumers to explore Wonderful Indonesia

By
Tan Heng Hong
-

Hydro Coco coconut drink from Kalbe Farma has unveiled a new packaging design featuring top natural beauty spots in Indonesia. The scenic places include Broken Beach in Bali, Raja Ampat in Papua, Pulau Padar in Labuan Bajo and Atuh Beach in Bali.

Joint promotion with tourism ministry

The marketing program is a joint promotion with the Indonesian Ministry of Tourism to feature interesting sights on Hydro Coco packaging as part of the Wonderful Indonesia campaign by the ministry.

The image below shows Hydro Coco packaging featuring Raja Ampat Islands.

Such program will expose Indonesian consumers to unique tourist destinations within the country. The tourism program is also part of the “soft selling” approach implemented by Hydro Coco to reach out to consumers with interesting stories.” said Arwin N. Hutasoit, Head of Marketing at Kalbe Beverages as reported in a recent Kontan article. This comes as the “hard selling” days are over.

Get out to explore the natural beauty

The tourism campaign works both ways for Hydro Coco. It encourages Indonesians to get out of their sedentary life, which is one of the main causes of obesity, and to explore the wonderful beauty the country has to offer. Exploring and travelling are activities that are in line with the brand message of providing natural hydration to active consumers.

Earn brownie points from the government

Promoting Indonesia’s natural beauty is seen as a form of a national service by Hydro Coco that could potentially help the brand to earn brownie points from the government.

Papatonk, the shrimp cracker of PT United Harvest Indonesia, won the Primaduta award from the Tourism Ministry. The award was presented to the company by President Joko Widodo in an event in 2016. The main reason for winning the award was the brand has the Wonderful Indonesia logo on its packaging and a few lines about the destinations and local traditions, thus helping to promote Indonesian tourism abroad especially in China. The shrimp cracker is hugely popular in China with around 20 million packs sold in China a year, according to Tribunnews.com.

Papatonk promoting Bali on the packaging at Indonesia Week (Inaweek) in Shanghai in 2017. Photographed by the author.

Hydro Coco will not only promote the tourist destinations to domestic consumers, similar packaging will be sold in the export markets like Hong Kong, Japan, China, South Korea and the United Arab Emirates. The export market accounts for 5% of Hydro Coco sales. The company aims to increase the figure to 10% in the future.

Total sales of Hydo Coco reached 50 million units in 2017, said Arwin. The sales target for 2017 is to grow by double-digit. In 2014, the company sold 44 million units of Hydro Coco, according to Yusuf Hady, Deputy Director in Charge of Consumer Health Division 2 at Kalbe Farma in 2015.

Hydo Coco’s factory is located in Riau with an annual capacity of 70,000 tons a year. The coconut water is sourced from Sambu Group, which claims to be the single largest fully integrated coconut processor in the world.

Mini Me takeaway

Hydro Coco’s partnership with the Ministry of Tourism is a win-win for the brand. It continues the brand message of natural hydrating for the active lifestyle. It is also part of the brand’s corporate social responsibility to help promoting tourism, which inadvertently has the effect of highlighting the naturalness of Indonesia as a source of coconut water.

Contacts:

PT Pulau Sambu

Jakarta

Jalan Rawa Bebek no. 26 (Gedong Panjang), Jakarta Utara 14440. Telepon: (021) 6603926, 6604026, Fax: (021) 6690412. Email: psj@dnet.net.id

Pulau Sambu Singapore Pte Ltd

Singapore

19 Tanglin Road # 11-01/02 Tanglin Shopping Centre Singapore 247909 Tel: +65 67347138 Fax: +65 67348601 Email: info@sambu.com.sg

99 Speedmart celebrates 30th anniversary, eyes 2,000th outlet

By
Tan Heng Hong
-

99 Speedmart has announced the celebration of its 30th anniversary and the opening of its 1,000th outlet in Malaysia. The 1,000th outlet was opened in Shah Alam Seksyen 13 on 12 August 2017.

For 30 years, 99 Speedmart has been serving consumers with shopping convenience and affordable prices. The outlets open from 9am and close on 10pm. They provide consumers with their daily shopping needs for packaged goods and essential grocery items. As 99 Speedmart does not sell fresh produce, consumers still have to get their vegetables and meat from the wet markets, sundry shops or supermarkets.

Proximity shopping

99 Speedmart in Ampang Jaya area in the state of Selangor. Google Map.

The unique selling point of 99 Speedmart is proximity shopping for consumers who want to top up their grocery. The price is competitive comparable with modern hypermarket or supermarket chain. The most notable price advantage is baby food and disposable diapers, which take up a sizable space in the store, as there is a huge demand for such products at 99 Speedmart.

Image from 99 Speedmart

The example for the Ampang Jaya area in the state of Selangor shows how the 99 Speedmart outlets are located in the commercial district within walking distance from the residential areas (taman). Prime location makes 99 Speedmart accessible to even those without their own transport such as housewives, students and migrant workers.

The minimarket chain has also made available a range of services including bill payment, mobile reload and parcel pick-up and drop-off as well as ready-to-eat meals in-store, similar to the services offered by other convenience stores.

Rapid expansionIt takes less than 4 years for 99 Speedmart to grow from the 500th outlet to the 1,000th store, equivalent to the opening of more than 100 stores each year. The chain aims to expand its current store count to 2,000 outlets in the coming three to five years, reported The Star.

Still no presence in many states

Despite having opened its 1,000th store in August 2017, 99 Speedmart only has stores in 7 out of 13 states and 2 out of 3 federal territories in Malaysia. The current stores radiate out of Selangor and they are located in the states of Perak, Pahang, Negri Sembilan, Sabah, Melaka, Johor and in the federal territories of Kuala Lumpur and Putrajaya.

Among the states that are still not penetrated by 99 Speedmart are the northern states of Kelantan, Terrenganu, Kedah, Perlis and Penang and in East Malaysia’s Sarawak plus the federal territory of Labuan, reported Sinchew daily.

The strategy is to focus on cities with large concentration of the population for example in Kota Kinabalu, the state capital of Sabah, before moving into other smaller cities within the state.

Overseas expansion beckons

99 Speedmart has plans to expand overseas as some Asian countries still do not have minimarkets, said Lee Thiam Wah, founder and managing director of 99 Speedmart. However, the overseas expansion will only happen after 5 to 10 years, said Lee. The company is currently studying the markets in Thailand and China.

Revenue reached RM 3 billion in 2016

Sales revenue of 99 Speedmart reached RM 3 billion in 2016, up from RMB 2 billion in 2014 and RM 1 billion in 2011, said Lee. He expects revenue in 2017 to rise to RM 3.5 billion, thanks to the expansion of the store network.

As a comparison, 7-Eleven Malaysia generated revenue of RM 2.1 billion in 2016 with 2,122 outlets at the end of 2016, while Tesco Malaysia posted revenue of RM 4.45 billion in the financial year ending February 2017 with 71 outlets. This makes 99 Speedmart an important chain for FMCG sales in Malaysia.

 

 

 

Find Marmite, Bovril at oyster sauce section

By
Tan Heng Hong
-

For Malaysians who like to make Marmite chicken or add a bit of Marmite in their porridge, it is important to know that Marmite and Bovril will now be in the supermarket’s oyster sauce section from 1 October 2017.

This is an important development for Marmite and Bovril. In some supermarkets, these two products are kept securely inside the glass cabinet, usually behind the cashier. In other supermarkets, they can be found in the same rack as sweet spreads.

The image below, photographed by the author, shows Bovril and Marmite on the top shelf surrounded by sweet spreads at Cold Storage.

It makes more sense to place Marmite and Bovril in the sauce section because Malaysians rarely eat them as a spread. Rather than consuming with bread like what the British or Australians do, Malaysians generally mix it in their porridge or use it as a cooking ingredient to produce the famous Marmite chicken.

Marmite Pasta

Unilever, the company that owns Marmite and Bovril, is creating other Marmite-inspired recipes including Marmite pasta. This is seen as move to diversify the usage of Marmite in cooking. The brand recently launched a co-branding promotion in Malaysia where a Marmite 470g now comes with a free pack of San Remo Elbows.

The appearance of many Marmite-inspired dishes comes as households are slowly ditching the real Marmite and opting for a cheaper substitute. One example of the Marmite substitute is Fatmum Mummite Sauce (肥妈妈蜜酱料). Note the use of the word “Mummite” instead of “Marmite.”

Mini Me takeaway

It is prudent to place Marmite and Bovril in the same shelf as sauce as both are mainly used for cooking. However, the advent of cheaper substitute is posing a real challenge to Marmite, which raises the need for the brand to evolve to create more exciting and innovative recipes. I believe now is the time to create some excitement by introducing the Squeezable Marmite in Malaysia.

 

Vitagen celebrates 40th anniversary, Yakult sponsors national athletes

By
Tan Heng Hong
-

Vitagen, Malaysia’s first and number one cultured milk drink, has unveiled a limited-edition bottle to celebrate its 40th anniversary in Malaysia. Vitagen was first launched in the country in 1977.

Vitagen has over 60% market share

The brand has cornered more than 60% share of the local cultured milk market, said Contra Enterprises Sdn Bhd deputy general manager Michael Ong in The Star daily article dated May 2013.

Yakult growing fast

This means, the second placed Yakult should have around 40% market share. Japan’s Yakult was officially established in Peninsular Malaysia in February 2004 and is Vitagen’s main competitor.

Back in November 2013, then Yakult (Malaysia) Sdn Bhd Sales and Marketing Director Hiroshi Hamada mentioned the company is confident of becoming number one in three years [by 2016]. Yakult made available its namesake Yakult in Sabah in 2011 and opened a new branch office in Sarawak in 2013 to strengthen the business in the underserved East Malaysia.

Even though Vitagen is still number one right now, the mentioning of the plan to capture the pole position shows there is a strong possibility that Yakult is growing faster than Vitagen.

Yakult and Vitagen broadening target to adults

Cultured milk is seen as a drink for children. In order to grow the consumer base, the two brands are working hard to make it relevant to adults with the message of improving digestive health.

During the World Digestive Health Day Malaysia (WDHD) 2017, organised by the Digestive Health Malaysia Society (DHM) and Vitagen Healthy Digestion Programme, a landmark research by the Universiti Kebangsaan Malaysia Medical Centre shows live and good bacteria could enhance the intestinal transit time. Vitagen has been celebrating the WDHD since 2009.

Yakult collaborates with sports institute

Yakult officially cemented its collaboration with the National Sports Institute of Malaysia (ISN) in August 2017 making Yakult the official probiotics drinks for ISN and for the choice for the national athletes from 2017 to 2020. The national athletes will enjoy 100,000 bottles of Yakult Ace Light each year over a three-year period.

The collaboration has the potential to turn Yakult into the beverage of choice for active consumers who would normally turn to isotonic drink after the workout, said Yakult Malaysia Managing Director Hiroshi Hamada. The ISN logo will appear on Yakult packaging from October 2017.

Yakult teams up with Chatime

Yakult is versatile and can be applied in food creation. The latest example is Yakult’s collaboration with Chatime to feature the probiotics drink in Chatime tea beverages.

Vitagen-inspired reipes

Vitagen also has other Vitagen-inspired recipes on its site including chicken chop in fruity sauce (using Vitagen orange) and Vitagen lollies.

Mini Me takeaways

Probiotics drink players are continuing to focus on expanding their consumer base including reaching out to adults and new occasion (sports) as the business is all about increasing volume sales. It is also important to create buzz through marketing such as the Yakult-Chatime partnership.

Marigold 1kg tub yoghurt for cooking debuts in Malaysia

By
Tan Heng Hong
-

Malaysia Milk Sdn Bhd has finally introduced Marigold yoghurt in 1kg tub in the Malaysia market. A similar range is already available in neighboring Singapore, a country which features most of the latest innovative products from Malaysia Milk. Some of these new products would eventually make their way into Malaysia.

Natural tub yogurt for cooking

In Malaysia, natural tub yoghurt is used primarily for cooking. The new Marigold natural yoghurt in tub is going down the same route with the tagline “Natural goodness for wholesome cooking.” The 0% fat natural yoghurt is free from sugar, zero cholesterol and comes with calcium.

The fat content of coconut milk, mayonnaise and butter is listed out individually to drive home the message Marigold yogurt is the healthier-for-you alternative to these ingredients in cooking or in food preparation.

We have seen a similar approach adopted earlier by Nestle Malaysia where its Nestle Natural Set Yogurt, which contains only 57kcal and 1.6g of fat, was compared with santan (coconut milk), which comes with 28g of fat for each 100g serving. The message is clear. Consumers have the choice to switch to a healthier yoghurt that is low in fat for cooking or food preparation. See the post here.

Here is how the new Marigold yoghurt is priced

Marigold Yoghurt 0% Fat 1kg is also available in strawberry.

 

Sunglo Squeeze pouch yoghurt maximises packaging to shout out goodness

By
Tan Heng Hong
-

The Malaysian Yoghurt Company Sdn Bhd has given its Sunglo Squeeze yoghurt in a pouch (120g) a makeover. Sunglo Squeeze was first launched in Malaysia in 2014 and is still the only locally-made yoghurt in a pouch in the domestic market.

The new packaging focuses on the convenient properties of pouch – “now you can eat yoghurt without a spoon!” The word “Squeeze” also now comes in more vibrant colours.

The nutritional properties of Sunglo Squeeze are highlighted on the back of the new packaging in easy-to-read point forms. The new packaging maximises the impact as consumers tend to decide their purchase at the point of sale.

 

Vending machines way forward, new Nestle Nescafe Alegria AVM

By
Tan Heng Hong
-

Vending machines have become a hotspot at trade expos in Malaysia. There is only one word to describe the rise of vending machine and that is “cost.” Rising cost especially manpower has drove businesses to think of new ways to cut cost and what’s better way to reduce cost than with self-service machine. Add convenient payment (eg Touch ‘n Go) into the pot and you will get a machine that meets the lifestyle of current consumers.

A prime example is the UK-based Costa Coffee, which was launched in Malaysia exclusively in the form of self-served coffee machine in Shell petrol stations.

Nestle launches new Alegria auto vending machine

Nestle Professional showcased its newest Nescafe Alegria AVM (auto vending machine) at the recently concluded Food & Hotel Malaysia (FHM) 2017.

The drink dispenses hot/cold drinks from Nestle’s range of beverages including Nescafe coffee, Bonus soy milk, Milo and Nestea.

Another feature of the AVM is the acceptance of the Touch ‘n Go payment. However, Nestle is not the first to include the Touch ‘n Go function in vending machine.

Ventaserv first to debut vending machine accepting Touch ‘n Go

Competitor Ventaserv is the first to unveil the cashless vending machine in collaboration with Touch’ n Go Sdn Bhd and Coca Cola Refreshments (M) Sdn Bhd in July 2017.

According to the company, it hopes to increase the number of vending machines to 1,000 by the end of 2017, up from 500 at the moment. The currrent Ventraserv vending machines are loated in hospitals, recreational parks, shopping malls and schools in the Klang Valley.

First phase roll out of Nescafe Alegria on PLUS highways

Nescafe Alegria will be rolled out initially in the rest stops on PLUS highways.

Mini Me takeaway

There is a growing acceptance of self-service ranging from self-checking at the airport to making purchases on vending machines. For consumers, the most important things they would like to see in vending machines are payment convenience and interesting and relevant product range.

For businesses, unmanned vending machines help to lower cost and they can operate 24/7, which looks great on paper but ultimately location will be the most important factor for vending machine to become successful.

San Miguel goes for sustainability by dropping Purewater bottled water line

By
Tan Heng Hong
-

Food and beverage companies in Southeast Asia are increasingly taking their own initiative to become more environmental friendly or ethical in their production. Such measures were implemented even before major public outcry or government regulations.

San Miguel to stop Purewater bottled water line

One example is the Philippines conglomerate San Miguel Corp (SMC) announcing in September 2017 that it would discontinue its plastic bottled water line Purewater. This would effectively means the company is exiting the bottled water business, which comes under its San Miguel Brewery Inc unit.

Forgo bottled water to achieve long-term sustainability

SMC President and Chief Operating Officer Ramon Ang said “the plastic bottled water business has given us good returns, but we are choosing to forego it in favor of our long-term sustainability goals.”

Focusing on filtration technology

SMC is diverting its resources to higher value added filtration technology to be deployed during disasters to provide safe drinking water to affected households.

Plastic waste issue

Plastic waste is a major issue for the Philippines. According to a 2015 study by the Science Journal, the country is the world’s third biggest plastic waste producer with 1.88 million metric tons of mismanaged waste per year, reported CNN Philippines.

No material impact to SMC

The bottled water business is insignificant for SMC as Purewater is only a minor player in the industry.

Coca-Cola tees off for a good cause

By
Tan Heng Hong
-
L-R_Gareth McGeown and Finaswati Mohamed Zin from Coca-Cola hands over donation to the NGO representatives, Noraini Yaakob and Siti Hajar Ismail

Corporate and business partners, customers and suppliers rallied together for a good cause at the recent Coca-Cola Charity Golf Day. Held at the premier TPC Kuala Lumpur golf club, around 100 players participated in the full day event, which began with an 18-hole game and ended with dinner and entertainment.

Highlights of the dinner included a lucky draw session and the auction for a pair of return tickets to New York sponsored by Etihad Airlines that was eventually sold to the highest bidder, Rodney Wong Kai Heng the Chief Executive Officer of Munch World Marketing Sdn Bhd.

Organised by Coca-Cola Bottling Investment Group Malaysia-Singapore-Brunei, the charity event successfully raised RM100,000 which will benefit underprivileged children from Pertubuhan Baitul Mahabbah. Based near the Coca-Cola plant in Negeri Sembilan, the non-profit organisation provides a safe haven for financially disadvantaged children and orphans under the age of 12.

The funds raised will go towards the refurbishment and provision of basic facilities for the 3 hostels housing 40 young boys and girls.

“We are humbled and grateful by the support given by our partners, customers and suppliers who has made this charity event a success through their participation and generous sponsorships and donations. Together with them, Coca-Cola is able to extend a helping hand to those in need and hopefully make a small but positive impact to the lives of the children at Pertubuhan Baitul Mahabbah,” said Gareth McGeown, Chief Executive Officer of Coca-Cola’s Bottling Investment Group Malaysia-Singapore-Brunei.

The donation to Pertubuhan Baitul Mahabbah was presented by McGeown and Finaswani Mohamed Zin, Head of Public Affairs and Communications, Malaysia & Singapore, Coca-Cola Bottlers Malaysia to representatives from the NGO, Noraini bt Yaakob and Siti Hajar bt Ismail.

“Apart from today’s donation to Pertubuhan Baitul Mahabbah, Coca-Cola will continue to give back to the local community and give aid to those in need through our corporate CSR initiatives,” added McGeown.

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