Grabbing a piece of the growing baby food market

Grabbing a piece of the growing baby food market

Burhanuddin Abe, Contributor, Jakarta

In terms of his budget, bachelorhood was much simpler for
Hidayat. Apart from his daily needs, he only had to set aside
some money for things like the movies, going out with friends to
cafes and so forth. Now that he is a father of two children,
however, he has to count every rupiah so he can provide for his
family.

Keeping his personal spending to a minimum, he also has to
start saving for the time when his children, both under the age
of five, begin school. Millions of other new parents are going
through the same thing, especially as concerns the most basic
need of their children: baby food.

Young children represent a huge market for manufacturers.
Quite a number of companies that previously manufactured milk-
based products for babies, have for several years now been
turning out food products for children below the age of five.
With about 4.5 million babies born in the country each year it is
certainly a lucrative market.

Although there is a trend toward smaller families with fewer
children, today's modern mothers demand quality food that is
practical to serve to their children. "This is one of the reasons
that cereals for babies are enjoying growth in their sales," said
a marketing executive from the Salim Group who was involved in
the launch of that company's food division.

For every category of baby food, milk and supplements, a
number of companies are racing to dominate the market, as can be
seen by the numerous advertising campaigns and the various
children's programs on television sponsored by these companies.

Next to milk-based food products, cereals for babies are now
very popular, especially in larger cities where more mothers
prefer practicality in feeding their children. "I would not, as
my mother used to do, make a homemade cereal using rice and
bananas, for example," said Esther Sutomo, a corporate secretary
and the mother of a 10-month-old baby.

Most Indonesian mothers switch from cereal to steamed rice
once their babies are eight months. For older babies -- up to two
years -- the menu also includes steamed rice with ground chicken
liver. Biscuits that contain special nutrients for babies are
also popular.

Currently, Gizindo, a company that is part of the Salim Group,
dominates the baby food market with a 60 percent share -- equal
to about 8,000 tons annually -- held by its some 60 brands, which
include Promina and Sun. Other popular baby food brands are
Cerelac produced by Nestle, Milna and Balita from Bayer, and SNM
manufactured by Sari Husada.

Given the heightened competition every aspect of a product
matters, including its packaging. Gizindo, for example, was the
first to introduce a special plastic wrapping for better
protection, which was later copied by competitors.

Maintaining customer loyalty is the most important part of
marketing. "For baby products, once your baby is used to one
brand you cannot just change to another. Just like the line in
the commercial: 'For your babies, never experiment,'" Esther
said.

Besides big-budget advertising through the media, baby food
companies also smartly conduct other promotional activities, such
as healthy baby contests, which is another trademark of Gizindo.
Some other companies provide a 24-hour information hot line for
their customers, who can call up and ask questions related to the
nutrition and health of their children.

All this illustrates how each baby food manufacturer is
striving to grab a piece of this highly potential market that is
increasing by the minute.