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Anlene: Increasing Market Penetration in the Adult Milk Industry

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Anlene: Increasing Market Penetration in the Adult Milk Industry

In the last quarter of 2007, the company had experienced double digit growth annually and its market share represented 52% of the high-calcium low fat milk industry in Indonesia. But how to increase Anlene's market penetration in this increasing market size while the competitors were approaching 20% market?

Indonesia milk industry

The infant and children milk segments were higher than the adult milk segment (16% and 11% compared to 6%), but the adult milk industry was growing fast. There were a total of eight players in the industry in early 2006.

Indonesian fresh milk production was sufficient to meet 25% of the demand of Indonesian population. The quality of the milk was low in comparison to other developed country because of several fundamental problems. The liquid milk was more expensive because of higher production cost. Imports on non-fat powdered milk were estimated to increase by 9.5% and imports of whole milk powder were estimated to remain the same in 2008.

Non Fat/Low Fat market was growing significantly in Indonesia. Anlene was experiencing double digit growth yearly. When it first entered Indonesian market, there was no adult milk segment and it was the first low fat/high calcium product.

Additionally, there was also a very low awareness of osteoporosis. Anlene promoted osteoporosis danger awareness, partnered with non-profit organizations and persistently conducted events and seminars to educate women about the importance of drinking high calcium milk. Anlene also held bone-scanning events, and determine the level of risks of Indonesian people getting osteoporosis.

Anlene used celebrity to endorse and communicate its brand. It was also strengthened by increasing Anlene's distribution network. Furthermore, the company continued to focus on innovation to create products that meet customer's expectation, such as liquid milk and different flavors. Anlene also provide two categories: under 50 and over 50 years of age. Anlene was committing US$150 million to bone healt research and education.

Anlene was categorized as a premium product and its price was higher by 15% than the lowest competitor's price. Profitability was not at the expense of market penetration and development. Anlene's packaging was modified to meet customer's expectation. Anlene was widely available and its promotion included above the line, below the line, and in store promotion. Anlene also offered a toll free number customer service.

Competitors:

1. Produgen

The company, Tigaraksa, saw the opportunity in the middle-to-low class segment untouched. They claimed to offer same quality product, with local products that contain 100% milk

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