Paper

ANLENE
Increasing Market Penetration in the Adult Milk
Industry

By:
The Mighty Duck – X1
Tedy Yuli Pusdiono 29110039
Akhmad Ghozali 29110068
Anis Wardani 29110043
Arief Andhella 29110063
Dewi Natalia Sagala 29110075
Yogi Ivor Christian 29110066

Magister of Business
Administration
School of Business and Management
Bandung Institute of Technology
Introduction

Indonesia Milk Industry

Milk is one of the most nutritionally complete foods available on the food market to date. It is
naturally a good provider of a whole range of nutrients essential to growth, development and
maintenance of the human body. Relatively small quantities of milk can provide a significant
proportion of daily nutrient requirements for all age groups making it nutrient rich relative to its
energy content.

Indonesia milk industry was divided into several segments: adult, children, infant and pregnant
lactating. The adult milk segment was smaller than children and infant but it is growing fast until
now approaching 20% of market.

Adult Milk

Health benefits of milk include good bone health, robust skin, good immune system, prevention
of illnesses such as hypertension, dental decay, dehydration, respiratory problems, obesity,
osteoporosis and even some forms of cancer. The beneficial health nutrients obtained from milk
are mandatory for human body help in prevention of chronic ailments.

Milk and dairy products provides the following beneficial nutrients in varying quantities.

• Calcium - for healthy bones and teeth

• Phosphorous - for energy release
• Magnesium - for muscle function
• Protein - for growth and repair
• Vitamin B12 - for production of healthy cells
• Vitamin A - for good eyesight and immune function
• Zinc - for immune function
• Riboflavin - for healthy skin
• Vitamin C - for formation of healthy connective tissues.
• Iodine - for regulation of the body's rate of metabolism (how quickly the body burns
energy and the rate of growth

Bone Health and Osteoporosis

Osteoporosis is a condition in which the reduction in bone mass occurs at the time of age and
getting old. It affects one in six women and one in eight men over the age of fifty and is most
common among post-menopausal women. Osteoporosis is often the cause of many health
complications, as it progresses silently and unnoticed for years. Only after years of bone loss do
signs and symptoms appear, such as pain, spinal deformity, and fractures.
An individual’s peak bone mass occurs between the ages of twenty and thirty. Bones reach their
maximum density and strength during this time. After peak bone mass is reached, bone
rebuilding gradually wanes. For women, the greatest bone loss occurs in the years immediately
after menopause when estrogen levels decline.

Risk Factors for Osteoporosis

• Women (although osteoporosis also occurs in men)
• Age 50 or older
• Past menopause
• Prolonged hormonal imbalances
• Excess use of certain medications, such as steroids
• Not enough calcium or vitamin D in the diet
• Lack of exercise
• Thin, “small-boned” body frame Caucasian
• History of fracture
• Family history of osteoporosis
• Smoking, caffeine, or alcohol consumption

Prevention of Osteoporosis
Bone continually renews itself by remodeling – building up and breaking down, thus bone needs
certain nutrients, such as:

• Calcium. Calcium has been shown to be effective in helping to build bone mass. For
optimum nutrition, the range of calcium intake is between 1000-1500mg per day
depending on your age, dietary intake, and other health conditions. Calcium is found in
yogurt, green vegetables such as kale, soy products and tofu, seafood such as salmon and
oysters, and sesame seeds.

• Vitamin D. Vitamin D has also been shown to be effective in building bone mass. It is
synthesized in our bodies from sun exposure and is also found in foods such as egg yolks,
liver, salt-water fish, and fortified beverages. Vitamin D aids in the absorption of
calcium. Daily intake should be approximately 400-800 IU per day depending on the
season5.
• Vitamin K. The research on vitamin K to reduce bone loss has been very promising.
Until recently, vitamin K has been best known as a treatment for aiding blood
coagulation. However, researchers have also found that vitamin K is important for the
maintenance of healthy bones3.6. Vitamin K is found in green, leafy vegetables such as
broccoli, Brussels sprouts, collard greens, lettuce, and spinach. Vitamin K supplements
are available in the United States, but are currently unavailable in Canada unless by
prescription for treatment of blood coagulation. Because of vitamin K's role in blood
 coagulation, individuals on blood thinners should check with their doctor before
attempting to increase their vitamin K intake.

Anlene - the pioneer of Indonesia Adult Milk

Anlene was launched in by Fonterra in 1996 in Indonesia as one of the pioneers of the high
calcium milk category, helping people prevent the onset of bone deterioration and osteoporosis.
The latter is a degenerative condition that affects one in three Asian women, by which the bones
weaken, leading to loss of mobility, fractures and possible death.

Anlene was the first to differentiate and do positioning by distinctively as milk with high
calcium. In term of positioning, Anlene able to direct people to aware of osteoporosis. In the
markets there is none of the milk that claimed itself as milk that can prevent osteoporosis.

Product Information

Anlene – Expert in Bone Nutrition

Born in Asia in 1991, Anlene is now the market-leading brand in the fight against the crippling
disease of osteoporosis. Anlene is the only milk drink clinically proven to reduce bone loss.
Anlene’s mission is to raise awareness of osteoporosis so people can take steps to prevent it
through better nutrition and exercise. Anlene has conducted more than three million free bone
scans across Asia and the Middle East and has partnered with local osteoporosis societies around
the world to help raise awareness of maintaining bone health. Backed by US$50 million of bone
health research, Anlene is complete with essential nutrients such as calcium (more than in
regular fresh milk), milk protein, vitamin D, magnesium and zinc.

Anlene - Ingredients of product

Anlene’s products that launched in Indonesia are: Anlene Actifit, Gold and One-a-day. The
ingredients are almost the same only the nutrition facts adjusted to its target market.

Anlene Actifit (19th-50th) 600gr - Low-Fat Milk Powder high calcium.

Ingredients: Low-fat Milk Powder, Malt dextrin, Whey Powder, Milk Powder, Calcium,
Magnesium, Zinc, Nano Calcium (Calcium Carbonate, Arabia Gum, Dextrin), Soybean Lecithin,
Vitamins A and D3.

Nutritional Value Information:

• Quantity of each serving: 30g.

• Number of servings per package: 20.
• Total energy: 110kkal.
• Energy from fat: 10Kkal.

Nutrition Facts
(per serving)
Total Fat 1g 2%
Protein 6g 8%
Total Carbohydrate 20g 7%
Natrium 95mg
Kalium 400mg
Vitamin A 190µg 30%
Vitamin D3 3µg 30%
Vitamin B1 (Thiamin) 66µg 6%
Vitamin B2 (Riboflavin) 1mg 85%
Vitamin B6 (Pyridoxine) 69µg 4%
Vitamin B12 (Cobalamin) 0.2µg 8%
Calcium 500mg 60%
Phosphor 190mg 30%
Magnesium 48mg 20%
Zinc 1.2mg 10%
Iodium 20µg 15%
Selenium 3µg 10%
Mangan 110µg 4%
Percent RDA based 2000kkal energy needs. Your energy needs may be higher or lower.
Per serving contains: 0.6mg Pantothenat Acid, Biotin 13μg, Choline 36mg.
Notice! Not suitable for babies.
Manufactured by: PT Nutricia Indonesia Sejahtera for PT Fonterra Brands Indonesia.
RI MD BPOM 808 509 396 040

Exhibit 1 Minimum Portion sizes and contribution to calcium intake

RNI* for calcium
Age/Sex Dairy portion sizes
(mg/d)
No cows' milk as a drink for babies under 12
months. Breastfeeding is best, followed by
cows’ milk formula. Soya-based formula
0-12months 525
should be used only under medical advice.
Cheese and yogurt can be given from 6
months.
100ml whole/semi-skimmed milk**, 80g
1-3years 350 yogurt, 15g cheese. These portion sizes
provide approximately 360mg calcium.
130ml semi-skimmed milk, 100g yogurt, 20g
4-6years 450 cheese. These portion sizes provide
approximately 465mg of calcium.
150ml semi-skimmed milk, 125g yogurt, 25g
7-10years 550 cheese. These portion sizes provide
approximately 570mg of calcium.
250ml semi-skimmed milk, 200g pot of
yogurt, 45g of low fat cheese. These portion
11-18years, male 1000
sizes provide approximately 1002mg of
calcium.
200ml semi-skimmed milk, 200g pot of
yogurt, 30g of low fat cheese (small
11-18years, female 800
matchbox size). These portion sizes provide
approximately 842mg of calcium.
200ml semi-skimmed milk, 150g pot of low-
fat yogurt, 30g of cheese (small matchbox
19-50 years 700
size). These portion sizes provide
approximately 710mg of calcium.
200ml semi-skimmed milk, 150g pot of low-
fat yogurt, 30g of cheese (small matchbox
50+ years 700
size). These portion sizes provide
approximately 710mg of calcium.
 200ml semi-skimmed milk, 150g pot of low-
fat yogurt, 30g of cheese (small matchbox
Pregnancy 700
size). These portion sizes provide
approximately 710mg of calcium.
RNI for age group plus
another 550mg
increment i.e. if To achieve the RNI for calcium during
Lactation lactating teenager then lactation, teenage or adult mums will need to
800+550mg/d, if consume more than 3-A-Day.
lactating adult then
700+550mg/d
* RNI – reference nutrient intake. The amount estimated to be sufficient for 97% of a specified
population group.
** Semi-skimmed milk may be introduced to children from the age of two if they are good
eaters otherwise whole milk may continue to be given.
Anlene – Problem and Challenge

As a category creator, Anlene enjoyed a market share of over 50 per cent for 10 years, until 2006
when an aggressive competitor called HiLo entered the market. Faced with a competitor
offering a parity product, a me-too brand promise and a lower price, Anlene’s share dropped to
43 percent

The other problem that Anlene is facing is the increases of 100% raw materials forces Anlene to
be the highest level in the category, if the price is keep rising, there will be a possibility that the
consumer will look into different brands which has affordable price

Unfortunately in Indonesia still dominate by powder milk and low frequency that consume the
milk with high calcium. There are still a lots of people assume osteoporosis is only happen to
older people. Therefore lots of young one tends to think that they are still in growing process that
no needs extra high calcium milk
Analysis Market through Competitors

Anlene success opens up the markets for milk with high calcium. One of the competitor is
Calcimex launched in 1997 with two similar products for age 19-50 and 50 above.

The other competitor is Produgen, pricing become the key. Affordable and lower than price
Anlene

Recently PT Nutrifoods also launched the products called Hi-Lo. It promotes using milk with
high calcium with low fat. The respond is pretty good in the market and position as the second
after Anlene with about 18% of the market. While Anlene has about 60% and about 500
billions /year

The key objectives were threefold: to raise awareness of osteoporosis and make consumer’s
priorities bone health as a key concern; to focus on the positive benefits of mobility; and to
engage women in large numbers. Another objectives is to be the prime adult milk in the market

Challenge: How to keep Anlene as a strong market leader in the adult category?

In the last decade, Anlene has growth and reach 57% market share and now some competition
have been following in adult milk innovation. To keep Anlene as a strong in this industry, we
need to make some innovation in product value and strategy. Since Anlene also well known as a
premium customer level of adult milk product (about 70%), the first thing is to maintain the loyal
and create new customer also give them new values.

Indonesia is a huge country with dominated by woman that higher changes to get osteoporosis.
In Indonesia Female is 1:3 and Males is 1:5. Up till now the market for adult milk is still low.
Segment market in Indonesia still dominated with formulation milk and milk for growth
There are few advantages for FBI in the current market. First FBI is under Fonterra, on of the
biggest milk company in the world. Secondly, FBI is back up by scientists that expertise in bones
for more that 20 years.

In term of external, People aware that milk is benefit for bones. Even though in overall they still
think milk for general health, Somehow people also aware that milk with high calcium is good
for bones
Few Strategies to Improve Anlene

• New Taste Strawberry, Blueberry or coffee.

• Price Lower with new packages 100gr
• Keep Distribution in modern & traditional market
• Advertising & Promotion with woman and man endorser
• Educational through Puskesmas & Posyandu with new product lower price

There are various ways that we are able to capture the market for Anlene. We will discuss them
one by one to understand what will be the outcomes of the result.

First we can introduce the new taste or flavor to our current existing Anlene products. This new
flavors taste will capture the new buyers in the markets who don’t like the taste of the milk. By
adding the flavors will trigger the buyer to switch to Anlene products. One of the flavored that
we can used is the flavored fresh Strawberry and the refreshing Blueberry

Secondly we can keep distributors in modern and traditional markets. The key here is using the
strong distributors as the partner; this type of partnership will benefit both parties to be able to
grab the opportunity of the current market in order to fight with the existing competitors

Thirdly we can have the economic packaging without downgrading the products. As we mention
before regarding the economic in Indonesia, we have learned that the percentage of spending in
Indonesia is pretty amazing; with the huge amount of ting people living in Indonesia, but
unfortunately there are some people have less money than the others. By having small packages,
we are able to capture the lower income buyer to buy the product as they starting to know the
importance of the milk with high calcium for the bones

Fourthly is by Advertisement. Advertisement helps to promote the concept and the message of
Anggun as the spokesperson for Anlene. Unfortunately the current advertisement might bring the
wrong concept or ideas to the watcher; they might think that Anlene is only for woman and not
right for Male. If we could do some advertisement with old and your people and mixed gender,
this will bring a new concept or new messages to the watcher that the importance of milk with
high calcium is for all people with difference genders and sexes young and old
Fifthly is by Education can also bring help in the promoting the milk. Many of lower level
people still unaware of the advantages of the high calcium milk, this can be done to work with
Puskemas in as a team to bring an understanding to the people

Sixthly Campaign that create a series of experiences and activities that offered women resources,
support, guidance and encouragement to maximize their own mobility, and lead a more fulfilling
life.

Three distinct programs were devised

The first centered on women’s need for better mobility. Anlene wanted to improve women’s
knowledge of their personal bone health. Advertising campaigns combined clinical statistical
facts with living proof of how Anlene can counter the negative effects of bone deterioration. The
brand also launched the largest free bone-scanning programmed in the world in conjunction with
an expert in the corresponding technology field.

The second focused on creating a habit in women. The brand wanted every woman to improve
her mobility in an easy, enjoyable way. While 2 glasses of Anlene per day provides optimal
levels of calcium to maintain optimal bone strength, the World Health Organization recommends
that in addition you walk 10,000 steps a day. Therefore the Anlene Movement offered on-pack
pedometers. The initiative was supported by motivational advertising

Thirdly, there needed to be a celebration of better mobility. Anlene held large-scale ‘walkathon’
events in 25 cities across Indonesia that allowed women to gather and walk 10,000 steps. This
included a large event on World Osteoporosis Day with invited celebrities, public figures and
government ministers generating significant PR around the cause and our brand.

The key objectives were threefold: to raise awareness of osteoporosis and make consumer’s
priorities bone health as a key concern; to focus on the positive benefits of mobility; and to
engage women in large numbers.

Another method is using the program such as free bones check up in the busy place, such as
Mall, Supermarket, Commercial Estate, etc. by having bone-scanner will help to spread out the
information especially about bone risks and the danger of osteoporosis. This program can be
conduct by joining with public relation and a lot of activity promo to educate the risk of
osteoporosis.

Anlene can also publish the book regarding the risk and danger and how to prevent osteoporosis
form the beginning.
The other method is working together with Department of Health. This collaboration with such
independent movement Perosi (Perhimpunan Osteoporosis Indonesia) and Perkumpulan Warga
Tulang Sehat Indonesia (Perwatusi) that both also concern about osteoporosis.
Commitment Anlene to educate Indonesian markets still high since Anlene keeps to do rally for
the buyers. This commitment needs to be keep in order to build the trust and consistent to uphold
the ideal that Anlene that promotes the high calcium milk

Recommendations:

Short term

In term of answering the challenges, we have highlighted the strategy to improve the target
market with better advertising and promotion. Considering the low price in market, current
smaller packages which have been selling in bigger packages contain 4 small packs, also well
known as tetra-packs, need to be changed and sell them in single pack.

The single small package more attractive for the new consumer who wants to try the taste of
Anlene’s product with small price paid. The new consumer will have the new sense of tasting
new high calcium milk product.

The other strategy which needs to improve is to compose new advertising and promotion which
using a wide range of market segment. Currently Anlene use women celebrities for its model of
promotion, i.e Anggun, Indy, etc. and for the near future we are going to compose new advertise
with using both of men and women who have been a public figure to be the model of Anlene
consumer. This men public figure will create the new image of Anlene product that can be useful
also for men.

Long term

Racing with time, Anlene will face more competitors with more additional benefit in the
products. Anlene need to create the new products and values to facing this competition. New
products that can be improved are creating new taste of Anlene, such as: Strawberry, Blueberry
or coffee to attract more men consumer.

Other things Anlene need to pay more attention are keep the goods line of distribution across the
country and reach all modern and traditional market. Also work together with Puskesmas,
Posyandu to make more educational program about the basic need of high calcium milk
products.