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Strategic Marketing

MARKETING PLAN ANALYSIS


PT. Amerta Indah Otsuka :Pocari Sweat

Jessica Setiono
1774130010058
Fondant
Table of Contents

Table of Contents……………………………………………………………………………
Executive Summary…………………………………………………………………………
Chapter 1 : A. Business Description………………………………………………………..
B. Strategic Focus and Plan…………………………………………………..
I. Vision………………………………………………………………………
II. Mission…………………………………………………………………….
C. Organization Structure…………………………………………………...
D. About Product…………………………………………………………….
I. The Packaging…………………………………………………………….
II. Product Function…………………………………………………………..
III. Industry Analysis………………………………………………………….
IV. Situation Faced…………………………………………………………….
V. Competitive Analysis………………………………………………………
E. STEEPLE……………………………………………………………………
F. SWOT Analysis…………………………………………………………….
G. Segmentation………………………………………………………………
H. Target Market……………………………………………………………..
I. Positioning………………………………………………………………….
J. Objective (SMART)………………………………………………………
.Goals (SMART)……………………………………………………………….
K. Marketing Strategy………………………………………………………
a. Pull Strategy……………………………………………………………….
b.Push Strategy………………………………………………………………
L. Tactic……………………………………………………………………….
a. Advertising………………………………………………………………..
b. Sales Promotion……………………………………………………………
M. Evaluation………………………………………………………………….

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Executive Summary

About 40 years ago, an Otsuka researcher named Rokuro Harima was on a business
trip to Mexico. There, Harima saw a doctor who drank IV solution (IV) to restore his body
fluids after completing surgery. Inspired by this idea, Otsuka researchers began to develop
rehydration drinks that can replace the water and electrolyte (ion) content that is lost when
sweating during daily activities.
When people became more aware of the importance of health, researchers led by
Harima and Takaichi tried to make health drinks for everyone when they were sweating.
Throughout the year doing research diligently, Otsuka researchers have made more
than 1,000 prototype drinks that restore body parts after daily sweating. To test the product
concept, in its development, researchers wanted to make the taste of this drink delicious,
especially after sweating. in 1980, water and electrolyte substitutes (ions) were finally
officially launched under the name Pocari Sweat.
Until now Pocari Sweat is loved not only in Japan. Pocari Sweat has become a
favorite drink in 17 countries and in various regions. Although it has adapted to each diverse
culture throughout the world, Pocari Sweat has remained loyal and has never changed. As a
science-created drink for those who are sweating, Pocari Sweat is always in the hearts of the
people to help them stay healthy.

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Chapter 1

A. Business Description

At its inception in 1997, Otsuka was an affiliated company of Otsuka


Pharmaceutical Co., Ltd. Japan that started their journey in Indonesia under the name
of PT Kapal Indah Otsuka. The company was formed from the joint investment
between Otsuka Pharmaceutical Japan and PT KapalApi with Pocari Sweat as its first
product. Then in 1999, PT Kapal Indah Otsuka changed their name to PT Amerta
Indah Otsuka. As the company expanded, in 2004 PT Amerta Indah Otsuka opened
the first factory located in Sukabumi, West Java following the next 6 years Pocari
Sweat factory in Kejayan, Pasuruan, East Java was established. With their success in
marketing products, until now the products produced have been distributed
throughout Indonesia. PT Amerta Indah Otsuka intensively distributes both directly
through official branch offices and distributors spread throughout Indonesia and
Southeast Asia. Along with the progress of the company, Otsuka is committed to
continuously improving quality by implementing the ISO 9001: 2008 Quality
Management System, Security System Food ISO 22000: 2005, and ISO 14001: 2004
Environmental Management System.

Owner : Yoshihiro Bando, Director President of PT Amerta Indah Otsuka

B. Strategic Focus and Plan

I. Vision
To be a brilliant company by giving significant and trusted contributions for
consumers and people.

II. Mission
1. Developing and maintaining high quality employees to produce high quality
products.
2. Prioritizing the needs and welfare of our consumers and people.
3. Taking nces in every aspect in the right and innovative way for the welfare

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and satisfaction of our consumers, and also for the development of company.
4. Developing and maintaining a good and profitable relation with business
partners.

C. Organization Structure

PT. Amerta Indah Otsuka is a subsidiary of Otsuka Pharmaceutical Co., Ltd., which
is a company that engages in the field of pharmacy that has been so famous in Japan.
The well-arranged organization structure will help doing the job and responsibility
for all workers. A good company has to own a well-arranged organization that is
matched with their character.

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Picture above is the organization structure of PT. Amerta Indah Otsuka Medan

Source :PT. Amerta Indah Otsuka

The uses of job dividing in a company or in a organization are:

1. To save time and energy

2. To prevent the accumulation of work in a section.

3. To facilitate supervision by superiors.

4. To facilitate the work implementation.

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D. About Product

I. The Packaging

Sachet 15 gr PET 500 ml

Sachet 37 gr PET 900 ml

Kaleng 330 ml PET 2 L

PET 350 ml

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II. Product Function

WHAT IS ION?

Ions are part of electrolytes, which are mineral salts in our bodies. Electrolytes in our body
will break down into ions, both positively and negatively charged to help the processes in the
body. Electrolytes cannot be produced by the body itself, so you really need to get intake
from outside, either through food or drinks.

POCARI SWEAT FOR OUR BODY?

Lack of body fluids can reduce body endurance, performance and digestive disorders.
POCARI SWEAT has a similar composition to body fluids so it can be absorbed faster and
faster to replace lost body fluids and ions. That way, health can be improved well, as well as
our activities.

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III. Industry Analysis

At the beginning of penetration, the public perception in Indonesia towards Pocari was
still blurred. This misperception does not only come from consumers, but also traders and
retailers. Evidently the Pocari Sweat is still often on display in contrast to soft drinks like
Coca-cola, Sprite and Fanta. Even with mineral water drinks such as Aqua, Vit and 2 Tang.
Though Pocari is an isotonic drink that is clearly different from soft drinks, energy drinks or
mineral drinks. This difference is not understood by some consumers and sellers.
As an isotonic drink, Pocari's function is to replace body fluids lost due to exercise or
dehydration. The composition is deliberately made similar to the liquid that is in the human
body. So, by drinking Pocari instead of increasing energy as in energy drinks (energy drink),
but making the energy quickly recover as before. The function of isotonic drinks only
restores, does not increase energy. The fate of Pocari that is stumbling in Indonesia is actually
similar to what happened in Japan. In Japan, Pocari was also difficult at first, not selling well.

IV. Situation Faced


From the situation faced by the Pocari Sweat Company, we can see:
Currently Pocari Sweat is in the Establish position, where Pocari Sweat has become a trusted
brand of public. Pocari Sweat has also been a sponsor of sports events such as the Asean
Games. The lifestyle of people now has more attention to healthy lifestyles. It can be proven
by the achievement of Pocari Sweat as the Top Brand isotonic drink from 2010. So that
makes Pocari Sweat a trusted isotonic drink for public.

 Here is the Top Brand Index 2017


ISOTONIC DRINKS isotonic drink category (it can be
seen that until now Pocari Sweat
BRANDS TBI TOP remains ranked first in the isotonic
beverage category)
Pocari Sweat 59.8% TOP

Mizone 32.6% TOP

Fatigon - Hydro 0.6%

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V. Competitive Analysis

5 Top Brand Isotonic Drink

Channel
Brand Producer Price Size Taste Packaging
Distribution

Rp 5.300,- 550 ml
(bottle) (bottle)
Bottle, Modern &
Pocari PT. Amerta Rp 4.500,- 330 ml
Citrus Can & traditional
Sweat Indah Otsuka (can) (can)
sachet channel
Rp 1.400,- 15 gr
(sachet) (sachet)

Orange
Modern &
Lime. Lecce
Mizone Aqua Danone Rp. 2.500,- 500 ml Bottle traditional
lemon &
channel
Passion Fruit

Modern &
Citrus with
Vitazone Mayora Indah Rp. 3.000,- 500 ml Bottle traditional
cool ice
channel

Coca Rp 3.200,- Modern


Powerade 330 ml Grapefruit Can
Cola Indonesia channel

PT. Nara
Optima Modern
ViniEka Rp. 3.375,- 330 ml Guava Can
Sweat channel
Beverages

Based on the table above, competition in the isotonic beverage market can be
formulated in terms of the marketing mix concept (Products, Prices, Promotions, and
Distribution). Isotonic drinks are a new product in the health drink industry where Pocari
Sweat is a pioneer of isotonic drinks in Indonesia and is still the market leader. However, it is
important for Pocari Sweat to keep an eye on the movements of competitors. In fact, so far

from the product side, isotonic beverage companies do not offer varied benefits, in general
the benefits are limited to substitutes for body fluids lost due to activity. So far, the variations
that have been incremental, such as adding vitamins, flavor, and packaging.

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E. STEEPLE

Social
Changes in social structure that can affect the corporate environment. Changes that
occur can be changes in lifestyle patterns, community growth, consumer behavior.
Analysis of social problems can provide new solutions to problems and ideas.
Increasing levels of public health care provide opportunities for Pocari Sweat. With
growth and changes in behavior patterns especially among young people, Pocari Sweat
can develop its production market.

Technology
Technological developments trigger changes in society widely and periodically.
Technology helps improving work performance of companies in all fields. New
opportunities in the market can be created with the advancement of technology so that it
can provide the best efficiency for the company.

Pocari Sweat uses machine technology in every process to ensure that products
remain sterile and hygienic. The use of technology also speeds up and simplifies
workmanship so that it can produce up to thousands of products in a relatively short
time.

Economic
The company's economic situation often changes over time. Changes that occur in a
company can be inflation, economic growth, and trade relations. By analyzing this
change, it can be estimated how the future state of the company's marketing and
strategies can be done.
Economic growth and stability of the Indonesian currency make Pocari marketing
relatively smooth. An economy that is often stable also encourages investment to
continue so that the Pocaricompany also develops.

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Environmental
Every company has an impact on the surrounding environment, one of which is
industrial waste. How this companies can overcome the waste so that it does not harm
the surrounding environment? In an effort to show caring for the environment, Pocari
Sweat held activities to plant 30,000 trees in Sukabumi and clean the beaches of
PelabuhanRatu.

Politic
Political factors can affect the state of a company through government policy. This
policy can be in the form of licensing problems of a company, policies regarding the
country's economic system, and also regarding taxation policies. This can affect the
company's policy too.
Through the Indonesian government's policies regarding the production of
medicines locally, Pocari Sweat stopped importing product materials from the country of
origin and started overall production with local Indonesian ingredients.

Legal
Regulations limit companies from acting arbitrarily without accountability. This
element also adds costs in industries. This regulation is based on law. Many factors must
be considered to ensure conformity in legality such as personnel, safety, health, etc.
In the vision and mission listed, Pocari Sweat strives to develop high-quality
employees and prioritize consumer welfare needs. And Pocari Sweat also uses
philosophy in "creating new products for better health throughout the world.

Ethical
Ethical factors refer to the range of social values that shape behavior in business.
This value is the basis for consideration in making decisions. Ethical concepts can be
seen through social responsibility to better understand ethical placement.
One of the ethical activities carried out by Pocari Sweat through its care program is
"Unite Hearts to Smart the Nation". Pocari Sweat provides teaching center facilities and
provides donations in the form of money to reconstruct schools and also donate books to
the library. And also through teaching programs to elementary schools.

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F. SWOT Analysis

1.Strength
• Large production capacity (more than 100 million liters per year).
• Already have a good relationship with international sporting events.
• Licensing products from Japan and using advanced technology in their production.

2. Weakness
• Less understanding of actual pocari sweat products, different from soft drinks and
energy drinks
• Only have one type of taste.
• The price offered for isotonic drinks is quite expensive.
• Cannot be consumed by people who have acidic disease.

3. Opportunities
• This product can be consumed and attracted by people, from children to adults.
• Have the ability to expand the target market.
• So far only isotonic beverage products that are developing so that they have
opportunities for product expansion or innovation.

4. Threat
• The product cannot be consumed if it has passed the expiration date because it can
damage the ion content in the beverage which can be harmful to consumers.
• Competitors of isotonic drinks are priced competitively in the market.
• Consumers are more selective, easier to move to other products.
• This product contains high acid. So, people with stomach acid cannot drink too much.

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G. Segmentation
Demography :
 Ages 18-35 years old with dynamic activities and concern for health and appearance. This can be
seen from marketing communication that presents young and high performing talent in the field
of sports and entertainment
 Families, especially targeting families of young couples who tend to be open to various health
products outside of herbs. This can be seen from Family product packaging in sizes 1L and 2L.
In its marketing communications, the market is educated to realize that in daily activities
consuming only water is not enough.
Geography :
 Both those in urban and rural areas.
Psychographic:
 Students, employees, civil servants, employers, workers and various other types of jobs can
consume this product.
 Lifestyle: those who like to work hard and sweat a lot, one example is athletes. Not only that,
even when they are relaxing, they can consume this drink. When exercising any type of exercise
run, swim and so on. Starting from the middle to lower society until the upper middle class
people can consume this drink.

a. Target Market
1. Age : 15 – 25 years old
2. Gender : Male and Female
3. Job : Schoolers, people who like to exercise, people who pay attention to health, people
who have high mobility.

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H. Positioning
The positioning of Pocari Sweat is a substitute for body fluids and minerals lost during
activities. This tends to have similarities with the benefits offered by other brands. However,
more specifically the positioning of Pocari Sweat can be found in the following tagline:
 "Isotonic drinks to replace lost body fluids every day". The sentence that confirms
that Pocari Sweat is important to drink every day even though it is not accompanied
by heavy activity.
 Isotonic drinks that are suitable for sports activities, can be seen from the
use of sports talent in the advertising media and participation in sports
competitions.

I. Objective ( SMART )
 S ( Specific ): When setting a target, specify what you want to achieve.
 M ( Measurable ) : What benchmarks will be used to fulfill the objectives?
This makes the goal more tangible because it provides a
way to measure progress.
 A ( Achievable) :It focuses on how important a goal is for you and what
you can do to make it reachable and may require the
development of new skills and changing attitudes.
 R ( Realistic ) : Focus on something that makes sense with broader business
goals. For example, if the goal is to launch a new
product, then there must be something that fits the
overall business goals.
 T ( Time ) :Provide the target date / deadline for a target that must be
achieved

SMART GOALS
 Specific : Maintaining product image during 2010.
 Measurable : We can see from the Pocari Sweat ranking on the TOP BRAND
INDEX which is still in the first place

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 Achievable: Specific goals can be achieved with supporting media, such as
advertising and (marketing communications for customers,
transfer of product knowledge to customers)
 Realistic:Pocari Sweat has established good cooperative relationships with
international sporting events, marketing channels established
in 1990.
 Time:The goal can be achieved in 2010.

J. Marketing Strategy

a. Pull Strategy
1. Pocari Sweat hires Indonesian soccer star Irfan Bachdimto be the advertisement
star as well as opening the 2011 futsal championship event in Jakarta. Pocari also
made Irfan the star of television commercials this year. This sporting event is a
manifestation of Pocari Sweat's commitment in educating the public about the
importance of maintaining body fluid balance for healthy living.
2. Advertising on printed media and television by endorsing on leading figures who
are competent with this beverage product.
3. Making a different advertisement, unlike any other brands, the kind that Pocari
had been done before (Pocari Sweat Goes to Space).
4. Emphasizing that Pocari is not merely a drink for sick people, but drinks that can
be used anytime and under any conditions.
5. The addition of packaging variants, by launching a 15 gram sachet package with a
retail price of only Rp. 1,500, -. This can expand Pocari to lower consumer
segments.

b. Push Strategy
Offering products to consumers through Sales Promotion Girls who are at certain
events. (example: bazaar, exhibition, Car Free Day)

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K. Tactics

Analyze Promotional Strategies


a. Advertising
Pocari Sweat uses television mass media to market their products. They make
advertisements that aim to remind consumers about their products. Pocari Sweat ads
try to convey that pocari sweat is always needed to restore lost body fluids after
activity.
b. Sales Promotion
PT. Amerta Indah Otsuka works with Indomaret, and makes one promotion if you buy
1 Pocari sweat, Soyjoy Ionessence any variant of Rp. 20,0000 in Indomaret, you will
get 1 i-Coupon. If consumers make the terms and conditions listed, they will get
offers for vacation packages to Japan or other prizes such as selfie drones, apple
watch, free celebrity fitness membership, or indomaret shopping vouchers, with
limited winners.

L. Evaluation

However, the achievements achieved by Pocari Sweat were extraordinary. In the


midst of the tight competition in the beverage sector, Pocari Sweat can achieve an
annual sales increase of 50%, certainly amazing. From Indocommercial's data, the
average increase in energy drink and health drink products in Indonesia is only 28.6%
per year. It means,Pocari can grow far outperforming its industry. For the manager of
PT. Amerta Indah Otsuka, the current achievement is the result of the hard work of
PT. Amerta Indah Otsuka in passing the stagnation that had been experienced in the
first years introducing Pocari Sweat.

Now, Pocari Sweat has become a frequent sponsor of various events, such as sports
events. Pocari Sweat has been sponsoring for four times in the Asian Games
activities. With this support, the company hopes that more people will understand the
health benefits of Pocari Sweat so that it can strengthen brand value.

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