Producers make packaging smaller to cope with crisis<\/p>\n
By Stevie Emilia<\/p>\n
JAKARTA (JP): A woman picked up and observed a 100 gram
\nDancow's instant milk econo-pack in a supermarket. She checked
\nits price against other packages of the same brand that came in
\nboxes and tins. After a few minutes of pondering, she chose the
\nsmaller package.<\/p>\n
\"It (the econo-pack) is cheaper,\" said the mother who has
\nstuck to the brand for her two children, now 10 and seven years
\nold, for several years.<\/p>\n
\"Shifting to another brand is not easy even if the product is
\ngetting expensive... so I have to make some adjustments (to my
\nspending),\" she said.<\/p>\n
The woman is only one of millions of Indonesians who have to
\nthink creatively to deal with the devastating economic crisis
\nthat has catapulted prices. Their typical complaint is that the
\nactual value of their income is plummeting while prices of basic
\ncommodities are skyrocketing.<\/p>\n
A survey by market research company PT SRI Nielsen Indonesia
\n(ACNielsen), conducted during the first half of this year and
\ndisclosed on Sept. 16, found that sales volume of various
\nessential products dropped 37 percent in the first half of the
\nyear, whereas prices increased 83 percent.<\/p>\n
The decrease in purchasing power due to the crisis has forced
\nhouseholds to change their consumption patterns, the survey
\nreport said.<\/p>\n
Around 90 percent of households surveyed said they would keep
\na budget for vegetables during the crisis, but 57 percent said
\nthey would cut spending on meat, while 50 percent would lower or
\neliminate spending on secondary foods like chocolate, crackers
\nand soft drinks.<\/p>\n
To cope with the crisis and achieve their sales targets,
\nproducers have introduced various products in economical
\npackages, at more affordable prices.<\/p>\n
Dancow, for instance, launched its economical packages of 100
\ngrams each: Dancow instant milk at Rp 3,200 per package and
\nDancow full cream at Rp 2,900 per package, in August this year.<\/p>\n
Compared to other Dancow milk products, such as those which
\ncome in refill boxes, the econo-pack is relatively cheap. For
\ninstance, a box of Dancow's 200 gram instant powdered milk is
\nsold in supermarkets for around Rp 7,150 per box, while full
\ncream was sold at around Rp 6,500 per box.<\/p>\n
Account executive of Dancow's client service team from Indo-
\nAd, Rolita Nasudin, told The Jakarta Post on Thursday that the
\necono-pack was targeted at mothers aged between 25 and 39 who
\nhave children that drink milk.<\/p>\n
\"Basically, we understand the present situation and are trying
\nto show that we care by doing something for the consumers,\" she
\nsaid. Dancow is produced by PT Nestl Indonesia under license
\nfrom Socit des Produits Nestl S.A., Vevey. Switzerland.<\/p>\n
Even though the econo-pack is cheaper, she assures consumers
\nthat the quality is the same as that of other Dancow products.<\/p>\n
\"It's completely up to the consumers whether they buy the
\necono-pack or other packages, or whether they will buy milk on a
\nmonthly, weekly or daily basis...,\" said Rolita, adding that the
\nnew product had received a positive response from the market.<\/p>\n
Dancow is not the only product that is offering lower price
\npackages.<\/p>\n
In a busy traditional market in Bendungan Hilir, Central
\nJakarta, a grocery seller offers a 200 gram plastic package of
\nBlue Band margarine at Rp 2,400 per package to her customers.<\/p>\n
Compared to a 250 gram Blue Band margarine in its usual
\nplastic container, which sells at Rp 3,300 each, the smaller
\npackage is more affordable.<\/p>\n
\"Many of my customers buy it (the new Blue Band package) and
\nit's good for my business...,\" said Sri, the sales-lady.<\/p>\n
Despite the lower price, consumers still consider the
\npractical purposes of the products they buy.<\/p>\n
Santi, an employee, prefers buying a 250 gram Blue Band
\ninstead of the economical package. \"I only go shopping around
\ntwice a month... so I need the bigger package in case I can go
\nshopping only once,\" she said.<\/p>\n
Prices, she said, were not the only thing that mattered to
\nher. \"Just think, if I have to go to the market more often, I
\nwill spend more on transport, so it's just the same after all,\"
\nSanti said.<\/p>\n
Economical packages can also be found neatly arranged in
\nsupermarket shelves.<\/p>\n
Tropical cholesterol-free cooking oil, for instance, does not
\nonly offer its product in its usual plastic bottle but in a
\nplastic refill package as well.<\/p>\n
One liter of Tropical cooking oil is sold at Rp 6,555 per
\nplastic package, while a bottle of the same quantity is sold at
\nRp 6,915.<\/p>\n
Rinso, which is known for its various package sizes, has also
\nintroduced a 425 gram Rinso cream detergent at Rp 2,790 per
\npackage during its promotional period.<\/p>\n
Another Rinso product, a half kilo of Rinso Anti-Noda (Rinso
\nAnti-Stain), is sold for Rp 5,235.<\/p>\n
Cigarettes<\/p>\n
Producers of basic necessities are not the only ones who have
\nbeen quick to anticipate the needs of consumers during the
\ncrisis.<\/p>\n
Cigarette manufacturers have also been responsive after facing
\na decline in the number of smokers due to soaring cigarette
\nprices.<\/p>\n
If you take a close look at sidewalk vendors, you may spot a
\nslimmer 12-pack Sampoerna A Mild cigarette package, which is
\noffered at Rp 2,100 per pack, while 16-pack Sampoerna is sold at
\nRp 2,800 per pack.<\/p>\n
\"I like buying 16-pack Sampoerna instead of the smaller one
\nbecause the price is not too much different anyway,\" said
\nGunawan, a private bank employee.<\/p>\n
Sampoerna's associate brand manager, Henny Susanto, told the
\nPost that the company's targeted market segments for the 12-pack
\nand 16-pack cigarette were actually not that different.<\/p>\n
\"The target for our products is youngsters aged between 20 and
\n30,\" said Henny.<\/p>\n
By introducing the 12-pack cigarette, we mean to tell the
\npublic that customers can still smoke Sampoerna at a relatively
\naffordable price, she added.<\/p>\n
The market's response to the product, which was actually
\nlaunched in July 1996 but is only becoming popular now, is `not
\nbad', she said. \"We're considering more promotion (of the 12-pack
\ncigarette),\" Henny said.<\/p>\n
Zumrotin K. Soesilo of the Indonesian Consumers Foundation
\nwelcomed the economical package trend in the market as an
\nalternative for those who have a limited budget during the
\ncrisis.<\/p>\n
\"For workers, who get their payments on a daily basis and have
\nto provide cooking oil or milk for their families, the economical
\npackages are an acceptable alternative,\" she said.<\/p>\n
But consumers, she said, should also be careful in selecting
\nproducts that come in smaller packages.<\/p>\n
\"Economical packages are acceptable depending on the type of
\ncommodity,\" said the foundation's executive director.<\/p>\n
For instance, she said, it is feared that milk in smaller
\npackages is of low quality or contaminated if milk powder is
\npacked in a plastic container instead of in tins or boxes.<\/p>\n
\"Producers should also guarantee the quality of products
\nintroduced in economical packages because so far, many consumers
\nmake their choices because they trust the brand,\" Zumrotin said.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/producers-make-packaging-smaller-to-cope-with-crisis-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}