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.