Segmentation, Targeting & Positioning: A Case Study of Vitacimin

1. ReVITAlize VITACIMINSegmentation, Targeting & PositioningA Case Study – Presented in FEUI DepokDisclaimer:The presented contents and materials in this document, are merely used foracademic discussions only and not to be used for commercial purposeswithout any permit from the author. This document is reserved by IntellectualProperty of the author. 2. About TAKEDA Pharmaceutical Company• Takeda is a research-based global company with its main focus onpharmaceuticals• Takeda has been established since 230 years ago, founded in Osaka,Japan.• As the largest pharmaceutical company in Japan and one of the globalleaders of the industry, Takeda is committed to strive towards better healthfor patients worldwide through leading innovation in medicine.• Takedas ethical drugs are marketed in around 100 countries worldwideMission:“We strive towards better health for patients worldwide through leadinginnovation in medicine”Vision“Takeda’s vision is to embody global pharmaceutical leadership throughinnovation, culture and growth guided by an unwavering commitment tosignificantly improve the lives of patients”1 ｜Click > Insert > Header & Footer | DDMMYY 3. Product Picture 4. Vitamin C Products Launch Year Comparison MNFLDATEA11G2 VITAMIN C COMBINATIONS SUPER ESTER C TCN Feb-93 REDOXON ZINCB/S Jul-00 SUPREME ESTER C TCNA11G1 VITAMIN C PLAIN VITACIMIN TAK Apr-71 VITALONG C TRCBNO Jan-86 XON-CEKLB Jan-92 VICEE D.V Sep-88 5. PORTFOLIO STRATEGY5 ｜Click > Insert > Header & Footer | DDMMYY 6. Market / Product Expansion GridAnsoff’s Market/Product Expansion Grid• Current and future product position to determine the best strategyProduct Development DiversificationnewPRODUCT Market PenetrationMarket DevelopmentVitacimin & New VariantsExistingExistingMARKETnew6 7. Market Penetration & Development Strategies Market Penetration Market Development Vitacimin &New VariantsCurrent Users Non UsersIncrease Usage Frequency Increase Brand Awareness Lapsed UsersNew Market SegmentRetention & loyalty strategy Increase Brand Awareness Current Competitors Users New Geography Increase switching from Increase distribution competitors to our products7 8. VITACIMIN MARKET LANDSCAPE• IMS Data 9. VITAMIN Market in Sales ValueTotal VITAMIN market in total value EUR 283 mio, growth +8%, driven by Multivitamin & Minerals70,000 +15% 64,214A11A MULTIVITAMINS + MINERALS60,000A11B MULTIVIT WITHOUT MINERAL -2%Value EUR’00050,000 48,654 A11D VITAMIN B1 & COMBINATION40,000 +3%A11G VIT C INC.MINERAL COMBS 38,446 A11E VITAMIN B COMPLEX30,000A11X OTHER VITAMINS20,000A11C VIT A & D INC. COMBS10,000A11F VITAMIN B12 PLAIN- 08Q409Q1 09Q209Q3 09Q410Q1 10Q210Q3 10Q411Q1 11Q211Q311Q4 12Q1 MAT 30%27%A11A MULTIVITAMINS + MINERALS 25%A11B MULTIVIT WITHOUT MINERALMS %20% A11D VITAMIN B1 & COMBINATION 20%A11G VIT C INC.MINERAL COMBS 15%A11E VITAMIN B COMPLEX 10%A11X OTHER VITAMINS6%A11C VIT A & D INC. COMBS 5%A11F VITAMIN B12 PLAIN 0% 08Q409Q1 09Q209Q3 09Q410Q1 10Q210Q3 10Q411Q1 11Q211Q311Q4 12Q1 MAT9 ｜Click > Insert > Header & Footer | DDMMYY 10. VITAMIN C Market in Sales Value Total VITAMIN C market in total value EUR 38.4 mio ,growth +3%, driven by Vitamin C Plain at +14% growth. VITACIMIN growth outperforms, at 17%25,000A11G2 VITAMIN C COMBINATIONS -5% 19,074 SUPER ESTER C20,000Units’000 19,371+14%REDOXON ZINC15,000SUPREME ESTER CA11G1 VITAMIN C PLAIN10,000VITALONG C TRC5,394 VITACIMIN 5,000 +17%XON-CE0 08Q409Q1 09Q209Q3 09Q410Q1 10Q210Q3 10Q411Q1 11Q211Q3 11Q412Q1MAT60%A11G2 VITAMIN C COMBINATIONS50%50% 50% SUPER ESTER C MS %REDOXON ZINC40%SUPREME ESTER C30% A11G1 VITAMIN C PLAIN20% VITALONG C TRC14% VITACIMIN10%XON-CE 0% 08Q409Q1 09Q209Q3 09Q410Q1 10Q210Q3 10Q411Q1 11Q211Q3 11Q412Q1MAT10 ｜Click > Insert > Header & Footer | DDMMYY 11. MARKETING RESEARCH• Vitamin Consumers - IPSOS• Consumers Demographic - Roy Morgan• Real Consumers survey – Internal• Indonesia Shopping Behaviour – MARS 12. What is the incidence of taking Vitamin C? Because of its several benefits, Vitamin C intake among Takeda’s target market is widespread — indicating a big market for VITACIMINIncidence of consuming Vit. C SupplementTotal (100%)Not Consumed in Consumed inP1Y (5%) P1Y (95%)Not Consumed in Consumed inP3M (3%) P3M (92%) NOTE: © 2011 Ipsos P1Y; Past 1 Year P3M: Past 3 Months P1M: Past 1 MonthNot Consumed inConsumed in P1M (6%) P1M (86%)Base: All respondents 12A8c – A10 : Which brands of Vitamin C have you consumed in past 1 year, past 3 months, past 1 month? 13. Ready to Drink as 1st option for other format ofVITACIMIN The chewable candy format dominates the Vitamin C market since VITACIMINis the market leader. The chewable candy format is appealing to a wide group of Vitamin C usersand also projects a fun, practical & ‘young’ image; although it is expensive,RTD is seen as young, fun, effective & refreshingREADY-TO- CHEWABLEEFFERVESCENT TABLETDRINK (RTD)  Females YoungProfile  Wider segment Young  SEC A SingleWhy Prefer Practical Practical Practical Practicalto Use Expensive Practical to use  Expensive Refreshes Consumed daily  RefreshesImage  Easily absorbed Bad taste Fresh sensation Easily absorbed Immediate reaction Fun to consume  Immediate reactionPractical to use © 2011 Ipsos Fun/cheerful  Serious ActivePersonifi-  Serious Teenagers Smart Fun/cheerfulcation  Adults  Adults  Teenagers 13 14. Key Learning -1The usage & purchase behavior of the leading brands vary depending on their format--- the ‘non-medicine type’ which are the chewable candy and the Ready-to-Drink have generally the same characteristics versus the “medicine type’ which are tablets and effervescent as shown below:VITACIMIN XONCEYOU C1000 ENERVON CREDOXON  RTDProduct  Chewable Chewable (Ready To  Tablet  EffervescentFormatcandy candy Drink)How  71%  61%63% 53% 51%Consumedoccasionaloccasionaloccasional occasional occasionalConsumption5x/wk 4-6x/wk4x/wk 5x/wk4-6x/wkFrequencyPlace of Warung  Mini market  Pharmacy  Pharmacy WarungPurchase Pharmacy  Warung Drugstore DrugstorePlanned vs Impulse, Impulse,  Impulse, Impulse,  Impulse, © 2011 IpsosImpulse 54% 56%63% 24%34%Purchase 11x/month  11x/month 12x/month  6x/month  5x/monthFrequency 14 15. Price IndexRedoxon DoubleVITACIMINXonce Vitalong C Enervon CYou C1000*ActionManufacture TakedaPT Kalbe Farma PT Bernofarm MediafarmaBayer Consumer PT. Tbk CareDjojonegoro C-1000FormulationChewable Chewable tablet Capsul Tablet EffervescentDrinktablettabletPackagestrip @2 tab strip @2 tabBottle @30 capBottle @30Tube @10 tabBottlePrice per Rp475Rp440 Rp700 Rp747 Rp2,229 Rp5,000tabDosage 1 1 1 111Price / day Rp475Rp440 Rp700 Rp747 Rp2,229 Rp5,000(daily dose)Index 10093 147 1574691,053FormulationAscorbic acid Vitamin C 250 mg, Vitamin C 250 mg, Vit B1 50 Mg,Vitamin C 1000 mg, Vitamin C 500mg soft powder of Na soft powder of Na Vit B2 25 mg,zinc 10 mg.1000 mg, ascorbate 250 mgascorbate 250 mgvit B6 10 mg, Niacinamide 2 vit B12 5 mcg,mg, vit C 500 mg, Sodium 45 niacinamide 50 mg,mg, Ca pantothenate 20Sugar 14 g, mgCarbohydrate s 14 g, Energy 60 kcal.15 16. Which brands are mostly remembered? -1Vit. C users are aware of several brands; VITACIMIN has an advantage in terms ofSPONTANEOUS awareness with Redoxon following from afarIn : %Top of MindOther SpontaneousAided76Vitacimin3640219758 Redoxon184039 9742 YOU C1000834 4789 49Enervon C 18 3139 88 35 Xonce 926 46 81 17 Vicee 2155471© 2011 IpsosBase: All Respondents (UnWTD n=550; WTD n=550)A1 : What brands of Vitamin C do you know of? (S) DO NOT AIDA2 : What other brands of Vitamin C do you know of? What else? Anything else? (M) DO NOT AIDA5 : By looking at these cards, which brands of Vitamin C do you know of? What else? Anything else? (M)16 17. Brand Map (Total)VITACIMIN is highly associated to being suitableBrand map also reveals thatfor all family members, safe for daily consume, fun to consume, affordable. Redoxon on theother hand is perceived more “serious”--- recommended by doctor & pharmacist; Xonce & Vicee are notassociated to any factorsMain Title Af f ordable price Can be consumed everywhere/anywherePractical to consumePurchased everywhere Vitacimin Suitbl f or all f am members Saf e f or daily consumed Xonce No side ef f ectsFun to consume Avaibl in various f lavorsVicee Good taste Fam/f riends recommend Avaibl in various f ormats Contains several vitamins Pharmacist recommendFamous brandMaintain immune systm By f amous companyEf ectiv maintain stamina High qualityBeing advertised © 2011 Ipsos Doctor recommend Base: All Respondents(UnWTD n=550; RedoxonWTD n=550) 17B3. Which brand applies to…… 18. Roy Morgan’s Research – Type of Vitamin Usedby Age Groups (Redefined)• The 76% of Vitamin Chewable tablets users are range from 18 to 49 y.o 65 and over 0.950-646.9Other35-49 22.7Bottled drinksNormal tablets25-34 28.1Chewable tablets18-24 25.7Effervescent tablets14-1715.7 0102030 40 50 Raw Data EffervescentChewableNormal Bottled %tablets tabletstabletsdrinks Other 14-17 y.o 4.415.79.610.7 1.8 18-24 y.o 19 25.7 20.219.424.3 25-34 y.o32.528.1 33.136.438.2 35-49 y.o24.422.7 26.226.919.6 50-64 y.o19.26.910.26 15.4 > 65 y.o0.50.9 0.8 0.6 0.7 TOTAL100 100 100.1 100 100 19. Summary of Indonesia Shopping BehaviourSurvey 2012 – OTC Category, MARS• OTC products are more to occasional products which purchased if needed. And mumsplay a key role in choosing the OTC products to be used by her family.58% find the59% OTC whenpurchases 74% buy OTCFamily isOTC whenproducts insickneeded retail Decision makersin purchasing OTCproducts:mums/wives 73% Purchase, dads/husbandslocations:25%Pharmacy45%, Minibuyers: stall 35% users:mums/wives dads/husbands 57% ,35% dads/husbandsMums/wives 35%34% Children 29%19 ｜Click > Insert > Header & Footer | DDMMYY 20. The Face of Respondents20 21. MARKETING STRATEGY• SEGMENTATION• TARGETING• POSITIONING & DIFFERENTIATION 22. Segmentation based on Vitamin C consumptionsSource: internal calculation based onSecondary data; MARS Indonesia Shopping Total234 mio populationBehaviour, Markplus Middle Class Population Monitoring, BPS(100%)63 mio households Non Middle ClassMiddle Class 133 mio population Population (43%)Population (57%) 36 mio householdsFAMILY routineNon (~%) expense on 27 mio population health (29%)10 mio households Segments for Not consumedConsumed 15 mio populations marketVitamin orvitaimin or supplement (43%)Supplement 6 mio HHeducation (57%)Segments forNot consumed Consumed marketVitamin C Supp inVitamin C14 mio population P3MSupp in P3M penetration (92%) 5.5 mio households (8%)22 ｜Click > Insert > Header & Footer | DDMMYY 23. Targeting Market educationMarket penetration Family Family Dad 40-45 y.o Mum 35-45 y.o Children 12-18 y.o2nd1stProgramsMassSpill Individual Male & Female, 16 – 35 y.oover3rd ProgramsVitamin /Vitamin C SuppSupplement UsersUsers23 ｜Click > Insert > Header & Footer | DDMMYY 24. Positioning & Differentiation FamilyWider age groupChewableXonCeeFUNFITTwice a dayProtection/ Immunity HEALTHYFMCG like OTC likeVITACIMINRTDRedoxonYoung-Middle You Cage groung 1000TabletHealthy Enervon C Bottle1-3 takes in one weekStaminaExpensiveBeautyMid expensive Nourish Skin Individual24 ｜Click > Insert > Header & Footer | DDMMYY 25. Thank youwww.dannykosasih.com @dannykosasih