Singling out a product from commodity crowd

Singling out a product from commodity crowd

Burhanuddin Abe, Contributor, Jakarta

Only a couple of years ago wheat flour was a generic or unbranded commodity, but today go to any supermarket and you will find various brands to choose from, including Cakra Kembar (Twin Wheels), Segitiga Biru (Blue Triangle), Kunci Biru (Blue Key), Gunung Bromo (Mount Bromo), Roda Biru (Blue Tire) and many others.

Just like all fast-moving consumer goods, flour has turned into a branded product complete with all the marketing activities required to establish it in consumers' minds, similar to the current brand positioning enjoyed by Nike shoes or gowns with the Yves Saint Laurent label.

There was a time when only products manufactured by Bogasari Flour Mills dominated the local market. However, the antimonopoly policies issued by the government several years ago have given rise to other manufacturers. Hence, this giant corporation has had to embrace modern marketing, including serious branding and big-budget advertising to face its competitors.

Going all out in its advertising and promotional campaign, Bogasari Flour Mills is also sponsoring a popular television program on cooking that is aired by a television station within the same group of companies: Indosiar. Due to its high ratings, the program, Sajian Bersama Bogasari (Delicious dishes presented by Bogasari), was recently taken over by another station, RCTI. What is interesting is that a huge number of noodle and martabak (crepe filled with spices, egg and pieces of meat) vendors are among those who watch the show and purchase the flour.

To cater to this segment, dangdut singer Ikke Nurjanah was hired for its advertisements. The time slot of the program is also appropriate, being aired right after the boxing matches, which is a favorite sport for many small-business owners.

Philip S. Purnama, the senior vice president and chief commercial officer of Bogasari Flour Mills, acknowledged that maintaining a leadership position was not easy as it required the most effective marketing strategy. However, the MBA graduate of Harvard University, through his aggressive marketing, succeeded within four years in increasing the company's sales sixfold to Rp 6 trillion.

Starting with three brands, the company -- one of the world's largest flour manufacturers -- currently dominates the domestic market with a 70 percent share with its 30 brands. Subsequent to the deregulation of the State Logistics Agency (Bulog), Philip said the company had to face a bigger challenge in the wake of globalization and the tough worldwide competition.

"In fact, we have been quite prepared for this major challenge, including the ASEAN Free Trade Area," Philip said.

Branding is now used not only for flour-based products, but also for other commodities that were previously generic products, like sugar and salt. Garam Gurih (Delicious salt) is one of the brands available here, while for sugar one recently introduced brand is Gulaku (My sugar).

Previously unimaginable, most supermarkets now carry no fewer than 20 different brands of eggs. Similarly, just like imported fruits, local fruits are also marketed in brands. This means that farmers or their marketers are now more confident about the consistent quality of their products.

Branding has been long recognized as one of the most important elements in marketing. In the category of commodities like flour, sugar, salt, etc., according to noted Indonesian marketing expert Hermawan Kartajaya, branding has also become one of the most effective strategies for singling out a product and making it stand out among the commodity crowd.

Ask any marketing director or brand manager and every one of them will say that making your brand stand out is not easy as it requires patience, consistency and persistence. Above all, it is not cheap. However, in the long run, establishing a brand is a profitable investment.

The huge budgets for marketing communication, which often range in the billions of rupiah, seem extravagant at first impression. However, such amounts of money are generally only about 1 percent of estimated sales figures. So it should come as no surprise just how heavy the bombardment of ads is for the products of major corporations like Bogasari, Gudang Garam, Unilever and so forth.

In today's era of globalized marketing, modern marketing that includes branding and marketing communication is unavoidable. It is the most effective tool for transforming a brand into an asset, which will be useful not only for the domestic market but, more importantly, for penetrating international markets.

"Our country badly needs companies who are willing to establish major brands that in time will turn into a kind of asset for the nation in today's highly competitive world," Hermawan concluded.