Advertising spend in 2008
Today, Nielsen released the advertising spend in 2008, remember my post on the first semester advertising spend? I said political organisation and also hotline service is driving the growth. looking at the total year, that is still be the case. Now please note before your read any further, that the following figure is based on the rate card (not including discount etc) Read more
History of Cigarette Kretek – Part I
No doubt, “Kretek” cigarette dominate the cigarette market in Indonesia at staggering 90% share. This kretek cigarette is a genuine Indonesian invention and Indonesian has been smoking it for more than 100 years. It will be interesting to know the history of this humble Kretek and its development trough out the year till become one of the Indonesia Icon.
Pre-Kretek History
It all started when in 1490′s Columbus discover America continent and reporting back to europe that the ingeniuos people are smoking “leave”. Cut the story short, the colonial (dutch) brought tobacco to Indonesia and plant it here, it strive and Indonesian start to smoke it too. At this time Cigarette is mostly handrolled, if there is no paper to roll the tobacco, Klobot (corn husk) will do.
The very well known legend related to cigarette is Roro Mendut , a very hot and sexy lady who live in the 17th century in Mataram Kingdom who refuse to married a very powerful man (Wiroguno), instead she chose the humble Pronocitro her sweet heart.
Wiroguno finally applied a very high tax to her (although she did not have any income) in hope that she can not pay the tax and marry him instead. Knowing that she is hot and beautiful, the defiant Roro mendut sell cigarette that been rolled and use her saliva as the glue to the highest bidder. Although she paid tax, she finally died together with her love life pronocitro just like Romeo and juliet. Read more
What so mild about “mild cigarette”
cigarette
Before, I always think that Mild Cigarette (which advertised as low tar and low nicotine cigarette) is made of special (or specially processed) tobacco to reduce the tar and nicotine content. Actually that is not the case, they made from the same tobacco (may be less but the same) as regular / full flavor cigarette.
To reduce the Tar or Nicotine, the cigarette manufacturer add some kind of vent somewhere in the filter, so when you pulls a cigarette, the vent will also draw in air from outside, so in result you draw less smoke and less tar or nicotine. This also explain that Mild cigarette is “easier / lighter to draw”.
So if you switch from regular / full flavor cigarette to mild cigarette, you probably feel that it will be too light for you and you may suck in deeper than usual. This will be more dangerous than smoking regular cigarette because the smoke (and tar and Nicotine and other things although smaller in quantity) will go deeper into your lungs.
You also get similar tar and nicotine as regular cigarette if you “close” the vent by your finger. so if you want to reduce Tar and Nicotine by switching to Mild cigarette, don’t hold cigarette too strong and and don’t draw too deep.
Is this WII marketing campaign?
Bunch of kids got their Wii for Christmast… oh what a joy… 
, watch here…
SKU – Stock Keeping Unit
SKU or Stock Keeping Unit is one of the Jargon that I hear many times without knowing what it is in my early working life, together with PLU and Barcode concept make things more confusing. I hope this writing, you can avoid confusion like I had in the past.
What is SKU
Say I want to buy a liquid soap in Hypermarket, I go to liquid soap section, in there I will be facing lots of liquid soap product and brands. Considering they spend a lot of money advertising, I chose one brand from Unilever, Lux for example. This not make tings easier, I still have tons of options. Read more
Pulpy Orange Product Launch
In 2008, one of the NPD (new product launch) that worth talking is Pulpy Orange from Minute Maid, which also part of Coca-Cola company.
Minute maid is an US company that produce orange juice concentrate using a process that eliminated 80 percent of the water in orange juice. Just add the water, and you’ll got a fresh orange juice ready. In 1960 Coca-Cola bought this company. So I am not very surprised if they advertise this product quite heavy in 2008 and possibly will continue strongly in 2009 as well.
Yesterday I go to Hero supermarket near home and see this product my self, surprisingly in the packaging I do not see any word “juice” written in the pack. So what it is… is it juice or is it flavored water like Frutang with no real juice in it?
Looking at the ingredient, it does say that it come from concentrated juice and real juice pulp. So it is juice then.. but why there is no word juice in it? or probably the juice content is very small to be legally mentioned.
Regardless this is flavored water or juice, the advertising is quite good, showing people peel up the orange only to find that orange is empty, the pulp (and the juice) goes into this product. Very nice execution I might say, and it started to have few “loyal” users as well, like this two ladies: http://ayuprameswary.wordpress.com/2008/09/24/si-pulpy-orange/ and http://dadut.multiply.com/reviews/item/33
In terms of distribution, this product already available in most of the modern trade, easy thing for Coca-Cola. But I yet to see it in semi permanent shop or traditional trade, probably because the price is quite high, Rp. 4000 in modern trade.
Any other information you want to share about this product..? Just shoot…
Cheers
Omnibus – Part II
Here is the link for Omnibus part I
In part one we know what is omnibus study and how what to expect from this study, and now we will discuss what type of research is best using this study.
As you may know that omnibus cost is shared (therefore is cheaper) there are limitation in terms of the complexity of the study and the length of the questionnaire you want to include in the study. Hence This study is best for basic information that require few questions to ask.
I generally advise to ask about 6 to 10 questions in this kind of study, which usually enough for most of my clients KPI. These are the questions that I usually put in Omnibus.
- Unaided Brand awareness
- Aided brand awareness
- Advertising awareness
- What to remember in the ad for specific brand
- Brand trial
- Brand Used Most often / Last used
- Brand imagery
- and other stuff according to clients need
With this few questions it usually enough to give us basic info about our marketing KPI. This can be powerful tool if we track this trough same omnibus, we will be able to see how our marketing activity can impact on the awareness, usage and image of our brand. Don’t forget you will get demographic profile too, so we can analyze it in specific market segment.
Although this research tool is meant for simple and broad information, this study anything but simple in terms of the methodology. The agency need to ensure that the sample is randomly selected, the quality control is also need to be good to ensure that the study is reliable and representative to the population that this study covered.
So call your research agency now and ask if they have this kind of study… it is good quality and cost efficient to get some basic information about your consumers.
Cheers
Omnibus – Part 1
Merry Christmas and Happy New Year!
Some friend of mine asked what is the “cheapest” quantitative study that can help them to get some information that they need. As always my answer would be “depend on what you need to know”, but few alternatives would be: Omnibus, Telephone or online research, or just small scale study on one event.
Today I would like to talk about omnibus kind of study which I see is underused or even overly used by some.
What is Omnibus study
When I explain about Omnibus, I like to use Bus VS Taxi comparison to differentiate this service compare to regular quantitative research.
Just like in a bus, we share the cost with others to make it cheaper, so in one project, the questionnaire may be coming from multiple clients. They can not from same industry thought, otherwise we will repeating same question over and over again. The questionnaire will be divided into few “chapter” ie. Biscuit, Cigarette, RTD tea etc.
Just like in a bus, they are already set of things that clients can not change, for example : sample size, sample definition, area covered and field schedule. So check the detail of the omnibus project before you actually committed to join.
Say your target market is consumer aged 30 + but omnibus stated that they cover 18+ so you probably end up having less sample than it intended. But sometimes it is OK if you get only part of the sample as long as is still cheaper than you do it trough regular project. And no, there will be no discount for not having 18-29 age of respondents.
Despite sharing the fieldwork cost, the questionnaire will be specifically designed to each of the client need and in the end each of the client will get specific report/data according to questions asked. The result will not be shared with other client. This what made omnibus is different with syndicated report.
Since some clients may ride this bus, the questionnaire should be kept short generally 5-8 question per client (total interview can not more than 45 minutes). Other than those questions, clients will get demographic profile data as part of the deal.
OK that is about Omnibus, I will cover about how best use this type of the study in second part.
Ad spend first semester 2008
Just few weeks ago, Nielsen Indonesia published the first semester Indonesian advertising spend. It said that advertising total has increase 24% compare to YTD last year. Anyone can guess what is driving such a big growth…? If your answer is FMCG, you guess it wrong… it’s Hotline service and political organization, their ad spend increase by 80% ha ha ha…
Here are the industry ranks:
- Communication spend 1.957 Billion, increase by 57%
- Motorbike spend 848 Billion, Increase by 20%
- Gov./Political org. 769 Billion, Increase by 79%
- Corporate ads / Soc. services 752 Billion, Increase by 44%
- Clove cigarette 699 Billion, decrease by 7%
- Hair care Product 635 Billion, Decrease by 6%
- Hotline service / Partyline 556 Billion, Increase by 81%
Let me know if you have questions, or better yet, contact directly to Nielsen Indonesia
Cheers
