PUREENO BRAND DEVELOPMENT

IFT Market Overview

According to Euromonitor Indonesia, the formula milk industry has grown up year by
year – with total sales 36,682 (bill) IDR in 2018. Whereas the fastest growing category
in industry came from Growing Up Formula.

Brand Share

Zooming in into the market – our main competitor is actually an economy brand –
where their biggest strength lies in their price offering.
Brand Architecture
Brand Architecture is a system that organizes brands, products and services to
help your audience access and arelate to the brand. Brand architecture refers to the
hierarchy of brands within a single company and brings order. There are three different
ways to organize brands within a company. Types of brand architecture :
1. Monolithic
2. Endorsed
3. Pluralistic
Truth is, there’s a lot of different ways to architect a brand and many company
have a mixture of strategies. So do Frisian Flag, we use endorsed and pluralistic
architecture for our brand. First, Frisian Flag and Omela were structured using endorsed
architecture. Where both Frisian Flag as a parent brand and Omela have strong, unique
market presences, and the divisions benefit from their association with or endorsement
from Frisian Flag. But for Friso and Pureeno, we use pluralistic brand architecture.
Where the name of the parent (Frisian Flag) may be invisible or inconsequential to the
coonsumer, and known only to the investment community. The program doesn’t rely on
master brand at all, but instead each sub-brand has it’s own image. Deciding the right
structure need an in-depth understanding of our position, offerings and strategy. The
ides isn’t just to come up with the clever names for various products or use color to
differentiate the brand, but it’s to create clarity from chaos.
First, we need to decide how closely we want to associate our division to our
parent brand. We want to separate this Pureeno with the parent brand Frisian Flag,
because this brand has a different segment with Frisian Flag as a whole. Where this
brand will target upper consumers. Even this brand is also different from Friso which is
also categorized as a premium milk from Frisian Flag. Pureeno has a technology that is
different from Friso. Pureeno is eqquiped with Human Milk Oligosaccharide and
OptiGRO. Human Milk Oligosaccharide (HMOs) are a family of structurally diverse
unconjugated glycans that are highly abundant in and unique to human milk. Originally,
HMOs were discovered as a prebiotic “bidifus factor” that serves as a metabolic
substrate for desired bacteria and shapes an intestinal microbiota composition with
health benefits for the brest-fed neonate. We have done research and developed this
compound, so that mothers who doesn’t have the time to breastfeed their child or even
has difficulty giving breast milk, can replace the breast milk with Pureeno formula, but
they can ensure that their child gets the same nutrition as if the breastfeed their baby.
We also have OptiGRO, our unique blend of DHA, Lutein and Vitamin E, that helps
support the baby’s overall growth, brain, eye and immune system development.
- DHA : An ingredient that supports brain development.
- Lutein : A nitrient found in breast milk that support eye.
- Vitamin E : An important nutrient found in breast milk that developing cells.
- Nucleotides : Building blocks for cells to support baby’s developing immunie
system.
- Antioxidants : Helps protect cells. Includes nutrients such as vitamin C, E and
selenium.
- Prebiotics : Promote digestive health to support baby’s immune system.
With all the formulations and also the benefits that Pureeno can provide, we
target the upper consumer segment. So we have to distinguish all these brands with
Frisian Flag as our parent brand. Starting from positioning, marketing strategies, pricing
and so on.
The best brand architecture is built on a solid foundation of research into
customer awareness, preference and experience. Only through research can you
understand the difference between what you brand says and what your customer
believes. First thing first, effective brand architecture enable you to :
- Target the needs of specific customer segments
- Significantly reduce marketing costs
- Clarifying brand positioning, naming and messaging
- Increase flexibility for future product and service expansion
- Bolster confidence among stakeholders in the strategis direction of your brand
- Ensure clarity and synergy between companies, divisions, products and services
- Enhance customer awareness of your offerings while facilitating cross selling
- Maximize visibility diversivication in the marketplace
- Build and protecting brand equity
Value Preposition
Value proposition refers to a business or marketing statement that a company
uses to summarize why a consumer should buy a product or use a service. This
statement convinces a potential consumer that a particular product or service will add
value or solve a problem better than other similar offers. A value proposition’s also a
customer or market segment promise by a company. It is an easy - to - understand
reason why a customer should buy from that particular business a product or service. A
value proposition should be a clear statement explaining how a product solves a pain
point, communicating its added benefit specifics and explaining why it is better than
similar products on the market. As one of product which contain DHA, Lutein, Vitamin
E, Pureeno aims to provide their best nutrition and also help children to grow healthy
and actively. In Fonterra's research entitled "Understanding Indonesian Kids" children
nowadays, tended to be raised with social limitations such as social pressure, limited
playing outside. This actually inhibits the children growth process. Research also
revealed that traditional and successful parenting in the modern world, which agreed
upon the wishes and needs of children to explore. Therefore, PT Sarihusada Generasi
Mahardika, as a producer of milk brands specifically for children, it invites parents to
provide the best nutrition at the same time by consuming milk containing DHA, Lutein
and vitamin E. Therefore, Pureeno offers marketing content around the method of
giving children nutrition through food and daily drinks that can optimize the level of
children's creativity to stay active and grow healthy, through the official site
Pureeno.co.id. The content is one of the activities of the Pureeno brand campaign
entitled Growing Healthy, Active Growing.

Brand Attribute
Brand Attributes portray a company’s brand characteristics. They signify the
basic nature of brand. Brand attributes are a bundle of features that highlight the
physical and personality aspects of the brand. Attributes are developed through images,
actions, or presumptions. Brand attributes help in creating brand identity.
1. Brand :
Pureeno as a milk brand which aim to give the special nutritions and help
children to grow healthy and actively, communicate that brand by it’s logo and
color. Pureeno as premium milk, illustrates its image through its own brand
design. At the Pureeno logo, the logotype used tends to be flexible. In this case,
Pureeno wants to communicate that the character is flexible, describes friendly
to children, however, the shape of the corners supported by a combination of
straight line elements, makes the design look more premium. in this case, the
design still has a premium impression, but does not eliminate the characteristics
of children's flexibility.

2. Price :
Pureenos as a premium milk brand, has a middle-up price category. For
pureenos, the nutrient content is the most important thing for child development,
and also not only makes the child healthy, but also active in activities.

3. Packaging :
Quality milk is packaged in a hygienic container, tightly closed, and
impermeable to air and light. Pureenos has standardized packaging that is not
transparent and translucent. So it can be ascertained that the quality of the milk
will be maintained and not experience a decrease in quality caused by exposure
to sunlight which can actually trigger oxidation. With standardized packaging,
Purenos can maintain the quality of nutrients contained in formula milk.
In addition, pureenoss also makes it easy for buyers to use their products.
This is evidenced by the presence of a complete spoon of milk, which is
according to the dosage for children. The ease of use through Pureenos
packaging is also a proof of purenoss' attention to ensure that children get the
appropriate dose according to the nutrition needed.
4. Color :
Pureenos use 3 colors as the identity of the brand, Light green for 1 year
old, Blue for 3 years old, and Orange and Yellow for the 5 years old kids. Those
colors represent children characteristic. Those colors give positive emotion and
reflect the happiness. For Logotype, Pureenos using gold color. Its how they
communicate Pureenos as a premium brand.

5. Labeling :
The system labeling on pureenos, using sticker paper material attached to
the outer packaging, with a quality sticker that is not translucent, and
waterproof. This also aims to maintain the quality of formula milk, so that it
remains intact. As for the label, pureenos includes information on ingredients,
nutrition facts, how to make milk, and interesting information about the fact that
the content of milk is pureenos. This can also add information to the buyer, to
the advantages of Pureenos milk coolers

6. Product Quality :
Milk powder is a powder made from solid dry milk. Milk powder has a
longer durability than liquid milk and does not need to be stored in the
refrigerator because the moisture content is very low.
Long storing powdered milk is quite long, a maximum of 2 years, of
course with good handling. Milk powder can be grouped into three types: fatty
powdered milk (full cream milk powder), low-fat milk powder (partly skimmed
milk powder), and lean milk powder (skim milk powder). Pureeno offers their
high quality product which has passed some quality control to maintain the
quality itself.

7. Features :
The body that continues to grow and develop, children need food that provides
nutritional intake that supports their physical growth. In particular, protein and
calcium are important in the formation of bone, muscle, and growth cells. For
this reason, children need to consume milk because the ingredients support their
 brain and physical growth. To support optimal growth according to the condition
of the child, it should be a period for consuming milk which can be accepted in
their body. Pureeno contains the best nutritions which easy to digest, as listed
below:
- Probiotics FOS-GOS
Some formula milk contains probiotics and prebiotics, which are bacteria
that are good for children's intestines. Probiotics and prebiotics in formula
milk can provide bacteria that are as good as bacteria in breast-fed children,
so this is also beneficial for maintaining the health of the child's intestines.
Probiotics FOS-GOS will maintain the function of the digestive tract
optimally.
- DHA & ARA
Both are omega-3 fatty acids which are also found in breast milk and certain
foods, such as fish and eggs. Several studies have shown that
docosahexanoic acid (DHA) and arachidonic acid (ARA) in Pureeno can
help the vision and development of a child's brain.
- Lutein
A nitrient found in breast milk that support eye.
- Vitamin E
An important nutrient found in breast milk that developing cells.

Customer Segmentation Analysis

• Segmenting
Milk for child growth attracts the attention of almost all milk producers in
Indonesia. They are busy issuing products to segment children in various ages. Based
on data released by The Nielsen Indonesia, in general the growth of milk powder by
volume is 6.6%, while in terms of value is 1.8%. Meanwhile, milk with the child
segment in terms of volume grew 9.9% and in terms of value grew 6.9% in 2010
compared to 2009. It is seen, that the growth of milk powder with the child segment,
exceeds the total growth of all milk powder. The following is a table of milk
segmentation in Indonesia:
 According to The Nielsen Indonesia, there are 4 segmentation of dairy products in
Indonesia - namely for:
- Children (1-5 years)
- adults and pregnant / breastfeeding women.
- Milk growth is in the baby milk category (stages 1 and stage 2), and children's
categories (stages 3, 4, and 5).

• Targeting
Target Marketing also related with Market Segmentation because the target
market is the next stage of the segmentation analysis process or in other words
segmentation analysis produces a target market. The target marketing targeted by
Pureeno is for women and children of a certain age. The target is for pregnant and
shrinking women as well as infants and toddlers who are in a period of growth.

• Positioning
After targeting or aiming for the market to be entered, the next step is to make
a positioning that is doing a study or research to position the product in the market
among existing products. Pureenos is in the market challenger. Pureenos is a
competitor for other milk producers, not as an innovate product which is a "new
comer" on the market.

Brand concept
Pureenos as milk that contains the best nutrients, namely Probiotics FOS-GOS,
Vitamin E, etc., positions its brand as a middle up in the milk class for child
development. This is supported by the Pureenos brand campaign, namely Growing
Healthy, Active Growing. This is because, the content of Pureenos can help children to
optimize the performance of their brains. Other than that. As for the benefits of
Pureenos, it contains nutritious and high-quality milk. This is influenced by attributes
that support Pureenos, in terms of maintaining the quality of milk. So that protection is
not only in terms of nutrition owned by milk, but also supported by technology, and
standardized quality. As for the promise of Pureenos to Indonesian mothers, Pureenos
guarantees the quality of milk that is maintained. Nutrition in milk has also passed
various lab tests, aiming to ensure that every child's nutritional needs can be met
properly.

Brand Strategic Plan

A brand strategy is a formal plan used by a business to create a particular image of itself
in the minds of current and potential customers. When a company has created and
executed a successful brand strategy, people know without being told who the company
is and what they do.
• Vision:
A vision statement is an aspirational statement of where you want your unit to be in
the future. “Future” is usually defined as the next three to five years, but it could be
more. A vision should set the overall direction for the unit and team and should be
bold and inspirational. A vision describes the “what” and the “why” for everything
you do. And vision of Puneero is to become a leading nutritious dairy company and
provide quality products for all consumers in Indonesia.

• Mission:
A mission statement explains what your business is trying to achieve. The critical
things to figure out the one thing you are trying to do better than anyone else. And
mission of Puneroo is committed to improving nutritional quality for all Indonesians
by providing the best quality dairy products and public education for a healthy
lifestyle.

• Objectives:
An objective is a measurable step that’s taken to implement a strategy. It can be a
desired achievement or something that is desired to be avoided. Objectives are
specific, actionable, realistic, measurable, and time-based. And the objectives of
Puneero is providing quality and nutritious dairy products for all Indonesian families.
In addition, the company is also active in providing education for the community to
improve their understanding of nutrition, especially contributing to improving the
quality of human resources, through sustainable growth.
• Strategies:
A strategy is the overarching method or methods used to attain a goal, such as brand
advocacy, market leadership, or customer preference. And strategies of Puneero are:
1. Presenting high-quality dairy products and having good benefits for the body.
2. Increasing competitiveness in the premium milk competition market in Indonesia.
3. Strengthening a quality brand image.

• Tactics:
A tactic is an action or a tool that’s used to accomplish an objective that’s linked to a
strategy. Tactics are typically the various actions you take on a daily or weekly
basis. And tactics of Puneero are:
1. Product design innovation
Pureeno has various kinds of packaging to make it easier for consumers to buy
according to their wants and abilities. Pureeno provides products that are sold in
the form of cans and boxes that make it easier for consumers to choose Prureeno
products to buy.
2. Sales promotion
Sales promotion aims to attract customers to buy Pureeno milk. These
promotions can be in the form of giving discounts, and giving product samples
for the first purchase.
3. Strengthening distribution networks and business cooperation
Pureeno has an extensive distribution network in almost all parts of Indonesia.
To increase competition in the market, the need for expanding distribution to all
regions in Indonesia has become an important focus prepared by Pureeno.
4. Special event
Pureeno is very concerned about child development in Indonesia. Pureeno
conducted various events about Parenting and often campaigned on child
development and parent and child relationships.
5. Personal selling and direct marketing
To maintain customer loyalty, Pureeno needs to strengthen personal sales and
direct sales to deal directly with consumers in order to communicate added
values for consumers. Pureeno also created the Parenting Center community,
 Pureeno Consumer Service Center, and others in an effort to get closer to
consumers.

Customer Insight
Customer insight is the understanding of your customer, based on their buying
behavior, their experiences with you, their beliefs or needs. Customer insights go
beyond raw data or research, it is a multi-view of your customers derived from a
strategic analysis of qualitative and quantitative data.
In Pureeno's customer insight. it is represented by parents. The importance of the
presence of children for parents, making parents, especially mothers, will give their best
to give their children's needs, including nutrition for their children. One of the nutrients
that are important for the development and growth of children is milk. Almost all
mothers who have children under two years old give breast milk until the age of 19-24
months. Along with the growth of the child, it is usually difficult for mother to continue
giving breast milk to her baby. Especially for working mothers, generally they don't
even have time to give breast milk to their children.
And in determining the brand or product to be purchased for children, mother is
the one who determines the brand or product to be purchased for children. According to
the mothers, product quality is the most important consideration. In addition, the
benefits of the product are also a consideration for mothers to buy formula milk. Mother
who have babies under two years old is a loyal consumer in buying products with
trusted brands for children. This can be seen when the desired brand of products is not
available, most of the mothers will buy the product with the desired brand elsewhere.
In addition, the shopping behavior of mothers who have babies under two years old
tends to spoil children by providing the best quality products. This behavior is mainly
found in newly moms. Most mothers are mothers who work and are included in the
middle-class population in Indonesia, which has a characteristic expenditure of more
than Rp 3 million per month. This group of mothers has used social media for various
activities, including shopping online. Mothers with baduta are also decision-makers in
household spending. In particular, in terms of purchasing baby equipment.
Brand Element
Elements used to express or represent and identify or differentiate the brand.
The consistent use of brand elements in all marketing programs helps communicate the
Brand Character to the marketplace. The brand name, logo, slogan, and packaging style
are all examples of Brand Elements.
• Names:
“Pureeno” is derived from the word pure, which means natural. By using word
“Pureeno”, it is expected to increase consumer confidence in nutritious dairy
products that have a quality that is maintained.

• Logo:
Pureeno usng logotype as their representative brand. This is slightly different from
the selection of logos in middle to lower brands, because mostly they use logogram
as their representative brand. Logotype looks more simple and not rigid, which is
reflects the character of children in the logotype. Beside that, the form is simple and
supports premium to a brand. The color of logotype using gold color, because its
show the exclusivity of a product on a visual display.

• Characters:
The character illustration used in pureeno is an animal character with vector style (2
dimensions). The use of simple illustrations makes the appearance of milk packaging
more exclusive. The use of character aims as a form of approach to children.

• Slogan:
The slogan from Pureeno milk is "A Healthy Treat for All". This slogan is based on
Pureeno's value proposition, “healthy grow, active grow”. Healthy grow certainly
 supported by healthy treats. Nutrition at Pureeno is also a good intake for growing
children.

• Packaging :
Pureeno has 2 types of packaging (boxes and cans). Packaging in cans is chosen
because the storage period of milk in cans can last longer because it is airtight and
opaque. Pureeno’s packaging is also made in box to make it more efficient if
consumers want to bring Pureeno milk.

Strategy Promotional Mix

• Advertising
Advertising is any paid form of media communication. This includes print ads in
magazines, newspapers, radio, TV, Website, and billboards. Advertising is a non
personal promotional activity because the seller has no direct contact with the
potential customer during the communication process.
The media that Pureeno used in advertising communication are through television,
internet, billboards, posters, and merchandise media to support other promotions.
• Sales promotion
In-store demonstrations, displays, contests and price incentives (50% off, buy-one-
get-one-free) are sales promotion techniques.
Sales promotion aims to attract customers to buy Pureeno milk. These promotions
can be in the form of giving discounts, merchandise, and giving product samples for
the first purchase.

• Personal selling and direct marketing

Face-to-face communication between buyer and seller.
Pureeno presents sales presentations in supermarkets and at events that held every
end of the month and the beginning of the month.
• Public relations
These activities promote a positive image, generate publicity and foster goodwill
with the intent of increasing sales. Generating favorable media coverage, hosting
special events and sponsoring charitable campaigns are examples of public relations.
Pureeno is very concerned about child development in Indonesia. Pureeno has
various programs on Child Care and often campaigns on child development and the
relationship of funds and children, holding charity events.