Anlene

INCREASING MARKET PENETRATION IN THE ADULT MILK INDUSTRY

A. Background Of The Case

PT. Fonterra Brands Indonesia (FBI) was formerly known as PT. New Zealand Milk
Indonesia (NZMI). Before its official operation in Indonesia, NZMI chose PT. Tigaraksa
Satria Tbk (TRS) to distribute their products from the early of 1990.
In 2007, company had experienced double digit growth annually and its market share
represented 52% of the high-calsium low fat milk industry in Indonesia. However, the
industry competition was getting fierce even though the market size was expanding along
with the increased awareness of osteoporosis among Indonesian milk consumers. The
company had to decide how Anlene could increase its market penetration. Currently time was
not on Anlene’s side since its competitors has made aggressive move and approached to 20%
market.

B. Product Information

Brand : Anlene
Founded : 1996
Company : PT Fonterra Brands Indonesia
Market Share (2007) : 57%

Advertising Spending (2006) : Rp 44 billion

Location : Wisma Staco 5th FL., Kav. 18 Jalan Casablanca Jakarta,
Indonesia, 12870
Product Innovation : Anlene Actifit (19-50 years), Anlene Gold ( > 51 years),
Packaging : Powder Milk : 300, 600, 900 gr
Liquid Milk : 200 ml

Anlene is a range of dairy products specially formulated for adults' optimal bone
health and is available in 13 countries across Asia and Australia. In New Zealand it is
available as a fresh low-fat milk drink and yoghurt, in Australia as fresh milk and in Asia as
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powdered nutritional supplement where it has a 15-year track record as the leading bone
health product in the region.
Born in Asia in 1991, Anlene is now the market-leading brand in the fight against the
crippling disease of osteoporosis, and 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 around three million
free bone scans in Indonesia and has partnered with the Indonesian Osteoporosis Association
(PEROSI) to help raise awareness of bone health.
Anlene formed a niche market in the milk industry by introducing the low fat/high
calcium product. Anlene’s divided to two different product based on consumers age
segmentation: Anlene activit and Anlene gold.

C. Business / Industry Situation

PT. NZMI established on September 1999, and changes its name into PT. FBI in
2001. Fonterra was established in 2001 after a merger of the two largest New Zealand dairy
cooperative. As a producer of milk and its dairy products, Fonterra contributed 20% from the
total of New Zealand’s export and became the fifth largest of milk and dairy products in the
world and the largest exporter of dairy products all at once. Anlene is one of the best Fonterra
products in getting a higher market response. Anlene is the first milk that is devoted to adults
which can save themselves from the threat of osteoporosis.
In year 2004 and 2005, Non Fat/Low Fat (NFLF) milk grew > 25% and > 22%
respectively and year 2006 has seen a 12% growth. Anlene as Non Fat/Low Fat (NFLF) in
milk category is growing significanly and formed a niche market in the milk industry.
Anlene market share from 2005-2007 averaged at about > 50-51%. In 2007, the
market share hit the highest record in october at nearly 60%.

D. Competition Situation
Anlene Hi Lo Produgen Calcimex
Company PT. Fonterra PT. Nutrifood PT. Tigaraksa PT. Frisian Flag
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 Brands Indonesia Satria Tbk Indonesia
Indonesia
Product First 1996 2004 2001 1997
Launched
Market Share 57% 18% 11% <10%
2007
Advertisement Rp. 44 billion Rp. 36 billion Rp. 5 billion Rp. 13 billion
Spending
(2006)
Product Launched Launched Hi Lo Launched Launched
Innovation Anlene Actifit Active (19-50 Produgen Calcimex
(19-50 years) years), Hi Lo Vitafirst (19-50 Vitalize (19-50
and Anlene Gold (>51 years) and years), Calcimex
Gold (>51 years), Hi Lo Produgen Gold Vita Gold (>50
years), sachet Teen (>51 years) years), and Calci
packaging, (teenagers), Hi Skim (high fiber
liquid milk, etc. Lo Soleha content), and
(Moslem liquid milk.
women), and Hi
Lo Joint
(rheumatism
sufferers)

E. Marketing Mix ( 4P – Product, Price, Promotion, Place)

 Product
Anlene was the first adult milk product to enter Indonesian market in 1996.
Anlene has flavors in vanilla and chocolate. Packing-wise, Anlene came in the 300
gr, 600gr, and 900 gr carton packages. Product Innovation : Anlene Actifit and
Anlene Gold.
The highest quality is the key success Anlene. This milk is the only product
clinically proven to prevent bone fragility or osteoporosis. Anlene directly imported
from New Zealand, milk-producing country that is believed to be the most qualified
milk-producing country in the world.

 Price
Anlene was categorized as a premium product and its price was higher by 15%
than the lowest competitor’s price. Anlene average price is IDR 28.000 for 300gr
Anlene, IDR 54 000 for 600 gr Anlene and IDR 4000 for 200 ml of liquid Anlene.

 Promotion

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 - Conducted support activities like in store promotion to compete in the modern
retail market through promote the awareness of the danger osteoporosis in
Indonesia and quickly grabbed the attention of consumers of the importance of
bone health, though a deeper scientific understanding.
- Promotion of giving sensational offer for certain amount purchases (customer
would receive a pedometer for a purchase of two 250 gr milk cartons or one 600
gr milk cartons.)
- The visibility of the product had to be maintain possibly at the high level as best
as it could.
- Partnered with non-profit organizations such as the Organization of Osteoporosis
Indonesia (PEROSI), and Citizens with healthy bone group of Indonesia
(PERWATUSI)
- Persistently conducted events and seminar to educate Indonesian women, being
the group most suspectibe to osteoporosis, about the importance of drinking milk,
specifically high-calcium milk.
- Anlene invite people to participate preventing osteoporosis with its program
“Melangkah Bersama”.This strategy is proven as a good strategy because Anlene
dominate the high calcium milk market in Indonesia.
- Advertising media, such as tv advertising, magazine, newspaper, tabloid,etc
- Using some well-known brand ambassadors such as Indy Barends and Anggun C
Sasmi

 Place
Consumers can get Anlene ranging from big cities to small towns across
Indonesia, from hypermarkets to traditional markets. NZMI supported about 30
distributors and the 60 distribution points throughout Indonesia. There are currently
approximately 1.8 milion outlets in Indonesia with 8667 supermarket & mini market
and 105 hypermarkets.

F. Problem Definiton
Anlene still leading high calcium milk market, but competitors in the same industry
are exected to continuing growing. Since new competitors arise with all their differentiation

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marketing strategy, Anlene’s management have to make some decision to figure out on how
to keep Anlene as strong market leader in the adult dairy product category in the long term.

G. SWOT Analysis
POSITIVE NEGATIVE
STRENGTHS WEAKNESSES

• Milk with the highest Calcium content • High price

• A well-known parent company
• A well-known endorsement/brand
ambassador
• Comes with 2 variants flavours giving
customer choices
• Operates in many part of the world.
• Great promotion

OPPORTUNITIES THREATS

• Supported by several health organizations • Too much competitor

such as Perhimpunan Osteoporosis
Indonesia (PEROSI) dan Perkumpulan
Warga Tulang Sehat Indonesia
(PERWATUSI)
• The increasing of Indonesian public
awarness about the dangers of
osteoporosis

H. Recommendation
As a market leader in adult dairy industry, Anlene has great opportunity to continue
develop its market. However, unlike previous years where Anlene is the only player in an
adult milk industry, the situation today is much different. This can be seen with the rise of
new products come with a brilliant innovation. Therefore to gain victory, the agility in
responding to market needs is necessary.
Companies are required to have the ability to create new creative and innovative
products. It is very important, as the considered market leader, to be a trend setter for other
companies. In addition, the company also has to pay attention to customer intimacy. In this
case, the company must be able to know what is desired by consumers. Division R & D can
do some activities to find consumers' needs.
To reach the middle- to-lower consumers , the company can create small packaging of
dairy products with cheaper prices or new product under Anlene Brand.
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References:
Indonesia Business Case Center. 2008. Anlene: Increasing Market Penetration In The Adult
Milk Industry. Jakarta: IBCC

www.anlene.com

www.majalahtrust.com