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UNIVERSITAS INDONESIA

MARKETING PLAN ANALYSIS ON CAMPINA ES KRIM (Analisis pada Rencana Pemasaran Campina Es Krim)

MAKALAH NON SEMINAR

Written by: Ardita Febrini Asweva 1006805946 Supervised by: Nadia Andayani

FACULTY OF SOCIAL AND POLITICAL SCIENCE COMMUNICATION MAJOR INTERNATIONAL PROGRAM JAKARTA FEBRUARY 2014

Analisis pada ..., Ardita Febrini Asweva, FISIP UI, 2014

Analisis pada ..., Ardita Febrini Asweva, FISIP UI, 2014

Analisis pada ..., Ardita Febrini Asweva, FISIP UI, 2014

Analisis pada ..., Ardita Febrini Asweva, FISIP UI, 2014

MARKETING PLAN ANALYSIS ON CAMPINA ES KRIM Ardita Febrini Asweva Public Relations, Faculty of Social and Political Science

1.0

Abstract

In examining the research, Campina will be taken into account as the research subject. It is because Campina, as one of the leading ice cream company, potentially require complex analysis in developing the marketing planning. Moreover, it is an interesting point for researcher to examine the variant market that it’s targeting. The purpose of this study is to examine Campina’s current external and internal environment by using SWOT and PESTLE theory. Furthermore, a market plan will be developed based on the findings of assessing the external and internal conditions, using the Marketing Mix theory. On the first part, an overview towards the research background will be elaborated to illustrate the reader about this research. The introduction will be divided into two parts, which are an overview about marketing planning itself and the company’s background. Move to the next part, theories will be described. This research will use three theories: SWOT analysis, PESTLE analysis and Marketing Mix. The researcher will explain the result and discussion in the next following parts and finished with conclusion. Weaknesses and recommendations for further research will also be elaborated in this particular section. Dalam melakukan penelitian, Campina akan dipergunakan sebagai subjek penelitian. Hal ini karena Campina sebagai salah satu perusahaan es krim terkemuka di Indonesia, membutuhkan analisis yang kompleks dalam mengembangkan perencanaan pemasarannya. Selain itu, hal lain yang menarik dari Campina adalah luasnya target pemasaran bagi Campina, mulai dari anak-anak hingga orang dewasa. Tujuan dari penelitian ini adalah untuk menguji lingkungan eksternal dan internal Campina saat ini dengan menggunakan analisis “SWOT” dan “PESTLE”. Selain itu, rencana pemasaan akan dikembangkan berdasarkan temuan ini, dengan menggunakan teori “Marketing Mix”. Pada bagian pertama, penjelasan mengenai latar belakang penelitian akan dijabarkan untuk memberikan gambaran kepada pembaca mengenai penelitian ini . Bagian ini akan dibagi menjadi dua, yaitu latar belakang mengenai perencanaan marketing (definisi) dan latar belakang perusahaan. Selanjutnya, teori akan dipaparkan pada bagian selanjutnya. Penelitian ini akan menggunakan tiga teori: analisis “SWOT”, analisis “PESTLE” dan “Marketing Mix”. Peneliti akan menjelaskan hasil pada bagian berikut berikutnya dan menutup penelitian ini dengan kesimpulan. Kelemahan dan rekomendasi untuk penelitian lebih lanjut juga akan diuraikan pada bagian terakhir. Keywords: Indonesia; Ice-cream industry; Marketing Mix; PESTLE; SWOT 2.0

Introduction 2.1 Marketing Planning A very important function in marketing planning is to keep business strategies in line with organization’s external condition (Peattie, 1999). Customer, competition and corporation, which also known as strategic three Cs, are key essentials, which deals in

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marketing strategy (Juin, 2000). It focuses on searching ways to personalize the organizations, as well as exploiting its strengths to be able to deliver better values to its target market (Juin, 2000). Juin (2000) developed characteristics of a good marketing strategy. It should include: (a) A clear definition of marketplace; (b) A balance between organizational strengths and market needs; and (c) An excellent performance as the key factors for business success. Milk solids (with or without fat) are often being associated to frozen dairy desserts, and ice cream is the most widely consumed among that category (Goff & Hartel, 2013). In 2010, New Zealand was noticed as the world’s highest per capita ice cream consumption (Smith, 2010). In Asia, the highest ice cream consumption was Singapore with 2.4 litters annually (Smith, 2010). According to Smith (2010) as written in Media, Indonesia was wearing a crown as one of the lowest statistics in ice cream consumption, but it has a huge potential in the industry due to its geographic position. Currently, there are a lot of Ice Cream companies in Indonesia. Some of them are Wall’s, Haagen-Dazs, Woody, Campina, etc. Among those brands, Wall’s and Campina are holding the most market share in Indoensia (Smith, 2010). Campina develops many ranges of products to fulfill its target market’s needs. It divided its target market into three categories: kids, teens and family. In each categories, Campina build various range of products based on its targeted personality. Among those range of products, Smith (2010) reported that Campina focuses its adspend towards three products, which are Avatar (in kids category) and Viennetta (in family category). Campina needs to develop an excellent marketing planning to maintain its existence, or better, expands a new target market from Wall’s, its biggest rival (Smith, 2010). This research will only focus in developing one Campina’s ice cream brand, which is Viennetta. This brand is chosen due to its domination in ice cream brand adspend in Indonesia for ice cream cake category (Nielsen Media Research, 2009; cited in Media, 2010).

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2.2 Corporate Direction Every marketing analysis begins with the corporate direction, where the company make a clear vision about their goals. This step is important in order to comprehend the strategic marketing planning in the company and integrates it into overall process (Radulescu, 2012). Campina as one of the biggest, most notable ice cream and frozen food company in Indonesia (Smith, 2010) should understand this process and take it into account in every marketing planning process. Campina started its operation in 1970, when ice cream was not as popular as presents. On its website, Campina explained that it was Mr. Darmo Hadipranoto who started his own business using a very unsophisticated machine. Later, Campina joined his family business by invested on the technological development aspect. From that moment, the company has continued to grow bigger in terms of size, profit and product range. Campina has divided its own market segment into three kids, teens and family category. In each category, Campina produce various range of products based the personality from each market segment. Through its vision and mission statement, Campina will construct its view on what to achieve in many years coming. Simply stated, vision is ‘what the company wants to become’, while mission articulates on ‘what the company does, for whom it does to and how to distinguish the company from its competitors’ (Tibergien, 2013). VISION Making Campina Ice Cram Industry as one of the best and biggest producers of ice cream and frozen food in Indonesia to always put the customer satisfaction and employee shares and uphold the principles of environmentally friendly business. MISSION Having a high sensitivity towards the market and customers, optimizing all of the resources and assets of the company to deliver more values as a form of accountability to the shareholders as well as running the business with respect to the natural environment and surrounding communities. (Campina, retrieved on 2014)

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From its vision and mission, it is clear that Campina pays attention on environmental sustainability. This would be a good cause for Campina to work on environmental area as the sustainability program, since over 75% of executives worldwide agreed that this kind of program could lead to a financial success for company (Mirvis, Googins & Kinnicutt, 2010). Unfortunately, less company are taking a significant move towards this program (Mirvis, Googins & Kinnicutt, 2010). This condition could brings Campina a huge opportunity to show its concern towards the environment and be the leader in such program in order to bring the greatest good for the environment, community and the company itself. 3.0

Theory In developing the marketing strategy, a company must first understand its condition.

One of the most popular ways to examine organization’s condition is to do a SWOT analysis. In this analysis, an organization can manage to understand both internal and external environment. The internal factors can be found through strength and weakness, while the external factors can be discovered through opportunities and threats. Moreover, PESTLE theory comes in a role to examine external factors more deeply. However, only relevant elements will be explored. Lastly, marketing mix will help the organization to develop a strategy that suit its condition best. 3.1 SWOT ANALYSIS SWOT Analysis is a marketing planning tool, which helps to shape thinking, evaluate status, and develop an action plan in a more effective way (Beverly, 2010). Every company is being challenged with a dynamic situation that changes constantly, which makes this (SWOT) analysis even more necessary to be conducted regularly (Houben, Lenie & Vanhoof, 1999). SWOT stands for ‘strengths, weaknesses, opportunities and threats’. Strengths are competitive advantages and other distinguishing competencies that can be used by organization to win the market battle (Houben, Lenie & Vanhoof, 1999). On the other hand, Houben, Lenie and Vanhoof (1999) defined weaknesses as limitations, which inhibiting the development of an organization. Moreover, opportunities are proposed to detect customers and market attractiveness, while threats use to assess potential challenges, which include competitors’ strategy (Collett, 1999). Additionally, strengths and weaknesses comes from the internal organization, while opportunities and threats comes externally.

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3.2 PESTLE Generally, PESTLE analysis is a convenient strategy to predict market development, business position, and operational trend (Houben, Lenie & Vanhoof, 1999). Srdjevic, Bajcetic and Srdjevic (2012) believed that PESTLE is the modification of SWOT theory, where the influencing factors are divided into six categories, which are Political, Economic, Social, Technological, Legal and Environment (PESTLE). PESTLE analysis is vital to give a more in-depth sight from the SWOT overview (Vorthman, 2008). Moreover, PESTLE analysis is essential to determine potential endeavor in the relevant business environment (Houben, Lenie & Vanhoof, 1999). “… PESTLE analysis module of the framework methodology describes the framework of macro-environmental factors used in the environmental scanning component of strategic management” (Houben, Lenie & Vanhoof, 1999). 3.3 Marketing Mix A quote by Peter Doyle (p. 287, 2003) fairly explains what marketing mix is about “[it] is the central task of marketing professionals”. It pays attention on some significant aspects in marketing, which includes the product, price, promotion and place (McCarthy, 2001; cited in Doyle, 2003). Organizations use marketing mix as a set of marketing tool to reach its marketing objectives towards the target market (Goi, 2005). In addition to that, Peter and Donnelly (2007), as cited in Mohammad et al, (2012) agreed that apiece of element in marketing mix could play an important role to influence its consumers. Therefore, in applying marketing mix into marketing plan, the company needs to assess it carefully. Mostly, marketer would agree that the right marketing mix is one, which can give the utmost customer satisfaction. In achieving that purpose, a company should give the best offer to its customers, without disregarding company’s profitability (Doyle, 2012). As mentioned earlier, there are four elements in marketing mix: 3.3.1 Price Kotler (2007) described price as a production, delivery, and promotion cost charged by an organization, while Zeithaml’s view (1988) on price is monetary cost of a product that influence consumer’s perception towards the value of a product. In short, product’s price influences its marketability.

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3.3.2 Product Product is the main point in marketing mix strategy, because it is where organization and consumers can deal on symbolic and experiential attributes in distinguishing its product from competitors (Ferrell, 2005; cited in Owomoyela, Ola & Oyeniyi, 2013). It includes physical appearance, such as packaging and labeling information, which can influence consumers’ behavior to notice, examine, and purchase a product (Owomoyela, Ola & Oyeniyi, 2013). 3.3.3 Place Jones (2007) explained place as an access for customers to find products or services. Moreover, Bowersox and Closs (1996) refer “distribution‟ as a name for place. They believe that it is the third component of marketing mix, which covers all decisions and tools towards products and services availability. 3.3.4 Promotion Jones (2007) argues that promotion is a way to minimize the gap of information between producers or sellers and potential buyers. On the other hand, Zeithaml et al. (1995) described promotion as a part of particular effort to stimulate ‘word-of-mouth’. Detailed combination of advertising, personal selling, sales promotion, public relations and direct marketing tools have made promotion a critical aspects in marketing mix, because it helps organizations to pursue its marketing objective (Kotler, 2007). Marketing mix has criticized for being seemingly unchallenging (Gronroos, 1997; cited in Jones, 2001). However, the theory, which commonly-called four Ps of marketing, has reasonably compromised in matching the SME (small to medium-sized enterprise) view better (Siu and Kirby, 1998; cited in Brooks and Simkin, 2012). In adapting its marketing plan, PT Campina will mostly liaise with small entrepreneurs, such as local stores (warung), retailers, etc. Due to that matter, it is better to use simple concept, such as marketing mix, to elaborate the plans to minimize any misunderstanding towards both concerns.

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Result & Discussion 4.1 SWOT Analysis SWOT

analysis

helps

the

organization

to

understand

its

condition

comprehensively by assessing both internal and external condition. Strength and weakness represent the internal condition, while opportunity and threat represent the external condition. 4.1.1 Internal Strengths and Weaknesses Campina has a lot of interesting points to discover, which potentially become its strength. Furthermore, these points could act as a distinguisher among its rival and carries some added value to the company and its brand. In this part, Campina’s strengths will be divided into two categories. The first one will focus on the corporate capability and the second one will focus on its products and brands. A. Corporate Campina established in 1970, which shows how reputable the company, is. It was established since ice cream was not as popular as present, and Campina shows is existence and determination throughout these years. It also has a good quality on research and development capability, which shown from the variation it has on its range of products. Campina also pays attention on its human resource ability, reinforced with a lot of sophisticated machine to exceed the production quantity and quality. At its peak, Campina has successfully achieved many awards. Some of them are Superbrand 2012 and Top Brand 2012. Its concern on environment can also be a strong point for Campina to distinguish its company from others. Campina’s condition as an independent company will meet many obstacle, especially on budgeting. Unlike Wall’s, for example, which is part of Unilever as well as the current leader in ice cream brand adspend, Campina has a huge gap in terms of budget. Even though Campina positioned in the second highest, exactly under Wall’s, the adspend gap between these two brands was about 18 times higher, with Wall’s having more than Rp 260 billion and Campina only Rp 14.2 billion (Smith 2010). It obviously will create limitation for Campina to promote its product as well as build brand awareness. Another weakness is that

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the packaging of the ice cream that PT Campina produces is not as interesting as any other ice cream production from other companies. So, in other words, there is lack of creativity from the creative staffs. B. Products and Brands On the products and brands part, Campina also has some strengths and weaknesses. Campina has become a leader for its Avatar bran (for kids). Moreover, Campina has also become the only brand that produces ice cream cake as a mass product. Moreover, Campina offers quite cheaper price for the same range of products from its competitors. Campina is also being creative for the distribution channels, which includes delivery order, online shopping, ice cream package, and so on. On the other hands, Campina also has some weaknesses on its products and brands. From the production, some of its ice cream production, especially on the premium, concerto and classic ice cream product, does not have a soft texture compare to other similar products. At the end, this lack of quality in the ice cream texture turns down the market’s expectation. Other weakness from its production is that this company does not have the opportunity to market its product as much as other ice cream company has. This relates to the budget condition that Campina has to suffer from. Moreover, its promotion is not as strong as its opponent and again, it relates to the financial condition. It can be shown from the packaging, which is not as interesting as any other ice cream production. It can lead to people’s demotivation to buy the products. 4.1.2 External Opportunities and Threats Through its strengths and weaknesses, Campina will develop its opportunities and threats, which coming from its external environment. These points could end up becoming a key for its success, or the opposite, attacking the company and resulted to company’s failure. This part will be divided into three parts, which are product category review, competitor review, and customer/consumer review. These classifications are appeared as three most direct exposures for a company.

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A. Product Category Review Campina is one of the leading ice cream companies in Indonesia. There are several other players in the industry in Indonesia, such as Walls, HaagenDazs, Baskin-Robbins, Dairy Queen, and so on. Those brands have comparatively higher price than the Campina brand. Campina is one of the ice cream brands that offer affordable price for such good taste. But, in the ice cream industry, Campina still has to work hard to compete with Wall’s. Campina has to share their market with Walls, which already has better strategy and better brand awareness from the market. Nowadays, people has tendency to enjoy vanilla ice cream covered with Belgian chocolate and Campina has that kind of variant. However, the product that Campina has offered fail to catch market attention. B. Competitor Review Wall’s would be the primary competitor of Campina. However, Campina has been more popular for its ice cream cake variant. It should be able to manage its existence on the current market and expand its market to the other target market, which Wall’s has secured in advance. Take a look at an example of local ice cream retailer where unbalance number of products appear between Wall’s and Campina. This fact can cause a treat for Campina. However, Campina does have some opportunities to beat Wall’s. The ice cream, which produced by walls has strong milky taste, while people in Indonesia are less likely to consume or familiar with the milk taste. This could possibly become the opportunity for Campina as it has a more preferred ice cream taste than Wall’s. Moreover, Walls ice cream tends to have higher price compare to the Campina product. This can also be an opportunity for Campina over Wall’s. However, Wall’s, in fact, also has a strong distribution channel because of its financial capability in doing so. Due to that, Wall’s production has already spread widely all over Indonesia. In addition to that, Walls and Campina have more or less the same brand position and resulted to the same group of target market. Wall’s also has some good strategy in its marketing

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communication. It creates some promotional event to make the brand famous. For example, Wall’s produced and launched kids movie on the last holiday season to build children’s awareness towards Wall’s product. Another example is that Wall’s creates the lucky draw method. So when customer already buy the ice cream and eat it, the stick that left will show them what prize they’ll get. Lately, Walls Company does not launch or create any new variant for the ice cream product. It only stays the same like years ago. There are no other new products that will be launched in the near future. C. Customer/Consumer Review A management website once define customer. It is a person or organization that a marketer believes will benefit from the goods and services offered by the marketer’s organization. By that definition, customer does not necessarily refer to someone who purchase, but those who get expose to the brand, whether buying it, consume or use it, or all of the above. From that definition, we can see how important customer is to the future of the company. The customer’s satisfaction is the most important thing because that would be reason of a company’s continuity or vice versa. Company needs to know which product fits its customer's needs best, along with the budgetary constraints and feature set (Eldred 2005). For frozen food like ice cream, Indonesia has potentially become a very representative market due to its geographical condition. Due to that, it is reasonable to say that company would easily get the heart of its customer without facing any substantial obstacle. 4.1.3. Prioritizing SWOT Findings A. Strengths •

Affordable price of the product that Campina has offered in compare to other similar products

•

Multiple distribution channels that Campina has

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•

The taste of Campina’s ice cream

•

Resources (human and tools) that Campina has

B. Weaknesses •

Financial condition

•

Undesirable ice cream texture

•

Lack of promotion compared to Wall’s as its main competitor

C. Opportunities •

Make the company’s concern towards environment stands out

•

The tendency of Indonesian people to not like milk

•

The weather in Indonesia

•

The economic condition in Indonesia in relations to the more affordable price that Campina offers

D. Threats •

The competitors that already holds its market

•

The competitor’s marketing strategy Campina should focus on the opportunity that it has. By shifting its focus

to the environmental condition, Campina should build its brand position towards the “green’ direction. In addition, Campina can develop some campaigns and re-build people’s awareness towards preserving the environment condition. 4.2 Relevant PESTLE In this part, there are some relevant factors that potentially influence the continuation of the brand. Politics, economics, social-culture, technology, legal and environment factors are the factors that Campina would pay attention on. Through those factors, Campina can discover the opportunities and threats for the company and maximize or eliminates the opportunity and threats respectively. In the social-culture, for example, Indonesia is on the excitement for creating the ‘greener world’. It can be seen from its programs, such as ‘car free day’ that held every week in Jakarta and at

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least every month in most big cities in Indonesia. Campina can develop a collaborative campaign with those events, such as handed out free ice creams while making a recycling demo on the ice cream packaging. Another example is that big parts of Indonesian people do not like milk and causing those ice cream products with milky taste become quite unpopular to them. This can be the opportunity because the taste of Campina’s ice cream is not too “milky.” Another example comes from its technology development. Campina can proudly show people how sophisticated it is now. Its history can also be the legacy that live in the company’s spirit, which make it grows bigger everyday. Legal can also contribute to the success or failure of the company. Campina should follow local regulations related to the health and hygiene, especially the clause regulating food and beverages industry and the ingredients that is allowed and prohibited to be used and marketed. Environment should become the main concern for Campina as it has upheld it through the vision and mission. However, Campina still use the plastic package, which will possibly bring harm to the environment. People are getting more aware to the environment condition and this packaging can be an issue for the company. Campina should develop some program to overcome this issue and anticipate it from being uncontrollable. As for the economical condition, Indonesia as a developing country clearly has low buying power. This condition creates the tendency of Indonesian people to be more selective towards their list of needs. They will certainly be choosier to get the highest quality product with a reasonable price. 4.3 Marketing Mix After assessing the external and internal factors that potentially can support or turn the organisation down, marketing plan will be developed. Marketing mix will be employed in developing the marketing plan and strategy, engaging the four Ps principles: product, place (distribution), price (-ing) and promotion (marketing

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communication). In applying its strategy, Campina will mostly work along with small sized enterprises (SME) and business to customer-oriented company. 4.3.1

Product From the previous part, it is clear that Campina has provided lots of

variants for each category that it defined. Those variants are provided by Campina to fill market’s expectation towards the company. To make people aware of Campina’s products, Campina can collaborate with other companies to make a continuous program. As one of the idea, Campina can use bonus program to boost its market. Campina can cooperate with supermarkets, such as Hero or Carrefour, to give free product for certain minimum products. Another option is that Campina can give merchandise to the customers who buy certain quantity of Campina’s products. For example, Campina can give free recipe book for a minimum purchase of 2L Campina ice cream. 4.3.2 Distribution For the distribution, Campina prefers to use retailing method. Since ice cream should be placed on the particular place on certain temperature, there will be more budget for the retailers to provide it. Campina also creates new business in the distribution process from the producers to the consumers. Campina can also develop “Campinas Scoop Counters.” So people who want to sell Campina products can ask for the special refrigerator that already put Campina’s logo. Campina already put some criteria for people who want to go into this business. Campina itself provides some of the equipment, but others required self-providence. The method inspired from franchise principles, which helps the company in the distribution process. However, Campina should take effort in promoting the program, so a lot of people will get informed about the program. 4.3.3

Pricing About the pricing, there is no specific strategy for it because the price is

pretty affordable. For the personal pack, the price range is about Rp 3,500-Rp 10,000. For the family pack, they offer about Rp 20,000-Rp 30,000. Based on the price, we can see that it is suitable for each level of economy. But again,

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with that price, Campina has to make good strategy to maintain the brand image. Campina has to prove that their product is cheap but not ‘cheapy’. And again, all that they have to work on is by doing a good marketing communication. 4.3.4

Marketing Communication In marketing communication, it is better to choose advertising,

consumer/trade merchandising, packaging and event sponsorship. In the advertising, Campina have to work more on promoting the ‘green’ principle. Moreover, Campina has to create a good, creative yet exclusive program, which personalizes to every market segments it has. Moreover, the perception about low quality ice cream that comes up because of the cheap price should be anticipated throughout the marketing communication program. From the consumer/trade merchandising, Campina can give like a bonus for every certain purchase that people do. Campina can offer free recipe books that designed to attract people. Campina can also communicate its environmental friendliness towards its packaging by making environmental friendly plastic packaging for every ice cream. 5.0

Conclusion and Recommendation It important for every company to have its very own marketing plan, customized to

its current condition. This is crucial in order to manage its performance in its best possible way to impress the customers, differentiate itself from the competitors and gain more reputation towards the corporation. Marketing plan should be able to characterize an organization in order to capture public’s attention better than its competitor. The researcher tries to discover Campina’s strengths, weaknesses, opportunities and threats, along with the PESTLE. Then, the researcher incorporates those findings and develops a marketing plan for Campina using the four Ps principles. In the end, there are some key suggestions for Campina’s marketing strategy: (a) Make a bundling or bonus program to attract people in buying its product; (b) Concentrate on maximizing the retails market. Campina can develop a program such as “Campina Scoop Counters”, which engage people to takes part in distributing the product;

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(c) Keep the price affordable, but still be able to offer a good quality product; (d) Catch people’s attention through its packaging; and (e) Take current public’s issue as the idea to build marketing strategy. For example, Campina can invest in research and development sectors to create a environmentally friendly packaging. However, these research findings are quite hard to be generalized and adapted in different company. Therefore, further research need to be taken into account when a different company would like to adapt these theories into their situation. Moreover, the scope that is being examined is too small, resulted to the lack of comprehensiveness towards the company as a whole. 6.0

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