The Cola war is looming on Indonesia's threshold
The Cola war is looming on Indonesia's threshold
By Lenah Susianty
JAKARTA (JP): Dehydration?...Coca-Cola. The advertisement
appeared just one day after superstar Michael Jackson was
reportedly suffering from dehydration while in Bangkok, in August
1993, for his Dangerous concert tour, which was sponsored by
Pepsi-Cola, the fiercest competitor of Coca-Cola.
A 'Cola war', started in the mid-1970s in the United Sates,
has not happened in Indonesia because Pepsi-Cola was virtually
absent from the country for many years. Coca-Cola benefited from
the void and used the opportunity to strengthen its market in
Indonesia during those 'non-Pepsi' years.
The result is that currently 90 percent of the carbonated
drink market is controlled by PT Coca-Cola Indonesia, which also
produces other soft drinks such as Fanta and Sprite. For some
Indonesians, Coca-Cola is no longer a brand name because they
call other carbonated cola drinks Coca-Cola as well.
Things may change starting this month. Pepsi-Cola has
announced its decision to reenter the market. In 1987 they had a
franchise agreement with the Mantrust group, which faced huge
debts in the 1990's.
"We prefer not to talk about the past. The future, which
offers tremendous opportunities for us, is much more interesting
to discuss," Pepsi-Cola's South Asia area vice president, Lance
Tanaka, told a press conference Wednesday.
Its comeback is strengthened by the establishment of PT Pepsi-
Cola Indo Beverage, in a joint cooperation with the food division
of the Salim group, which owns 51-percent of the new company and
Pepsi-Cola International holding the rest.
"We are sure we can change the situation. We are committed to
competing in the soft drink industry in Indonesia. By cooperating
with the Salim group, which has the experience and expertise in
local markets, it is our target to hold at least 35 percent of
the local carbonated drink market within five years," said Sung
Il Lee, marketing director of Pepsi-Cola International for South
Asia.
The meaning is clear: The 'Cola war' will happen here,
although in a 'softer' way because Indonesia's code of ethics
does not allow advertisements to picture or name competitors
together with the advertised product.
As of yesterday, Indonesian audience can see Pepsi airing its
new TV commercial, featuring super model Cindy Crawford, through
the five private-owned television stations: RCTI, SCTV, TPI,
ANteve and Indosiar.
One of the television commercials, screened in 30 countries
and watched by about 300 million consumers worldwide for the
first time this weekend Jan. 27-29, shows scientific research
using an electron microscope, under which Cindy Crawford is
revealed as the key "sub-molecular" difference between Pepsi and
Coca-Cola. International audiences, outside Indonesia, can see
scientists observing one drop of Pepsi and one drop of Coca-Cola.
Here, in polite Indonesia, Coca-Cola's can is replaced by only
mentioning "an unnamed competitor".
Another commercial called "Blind date" will not be viewed
here, because going on a blind date is not an Indonesian
tradition.
Cindy Crawford, "who portrays an appealing image and the
values Pepsi wants to picture," said Lee, "replaces Michael
Jackson, whose contract was not extended after nine years with
Pepsi."
Jackson's contract ended in November 1993 following the
cancellation of his Dangerous tour due to acute dehydration he
was suffering during in his Asian tour. According to some reports
Jackson's sudden illness followed allegations that he had
sexually molested a 13-year old boy. The allegations were made in
Los Angeles while he was in Bangkok.
Crawford, the new star of Pepsi, is committed to a one-year
contract for Pepsi's international commercials and expands
Pepsi's list of stars which include rapper MC Hammer and Latin-
American singer Gloria Estefan.
In 1983 Crawford competed in the Elite Model Management's Look
of the Year competition and was placed in the top 15 finalists.
She is now one of the world's most expensive models.
Commenting on her new role as a stunning all-American girl who
leisurely pushes the lawn mower, Crawford said that she loves
starring in the commercial because it is funny and different from
being the model of cosmetics commercials. "It is more the real
me," she said.
Pepsi-Cola's advertising is created by American-based Batten
Barton Durstine and Osborne Worldwide.
Pepsi comes to Indonesia using its international image. "For
this reentry, we want to present our international image. After
it is established, we may try to localize it," said Lee.
Coca-Cola
Coca-Cola is trying to localize its image and get closer to
its consumers. International basketball player Hakeem Olajuwon
was invited to Indonesia, which has the largest Moslem population
in the world, last September and acted in a commercial which was
shot here. Olajuwon could be considered a good choice since he is
a Moslem.
It could be on purpose, or a mere coincidence that this very
weekend, when Pepsi starts its massive campaign on TV stations,
Coca-Cola also launches its first 100 percent Indonesian-made
commercial.
Coca-Cola Indonesia's executives declined to say how much the
company spent to produce the Salute Indonesia commercial. "It was
the biggest budget Coca-Cola Indonesia has ever spent on a
commercial," one of the company's managers said.
At the commercial's launching ceremony on Tuesday night, Coca-
Cola International's vice president, who is also president of
Coca-Cola South Pacific, Mike Bascle said that Coca-Cola's one
day lead over Pepsi-Cola means that "Our new advertising campaign
is a testament to the Coca-Cola system in Indonesia's firm
commitment to expand this market, as well as our sincere
congratulations on the Republic of Indonesia's 50th Independence
anniversary."
The concept of the new television commercial, which premiered
on yesterday through private television stations, emphasizes the
popularity of Coca-Cola Company products among diverse
demographic groups in the world's largest archipelago, according
to Coca-Cola Indonesia's public relations manager Jannus Hutapea.
The commercial's "rock" jingle was composed by musician Indra
Lesmana and sung by rockers Ecky Lamoh and Sofie Jasmin. The
Paragita choir of the University of Indonesia is also heard as
the backing vocals. The commercial was produced by SAVI Asia
Pacific's office in Jakarta.
The Salute Indonesia year-long celebration will include
specially designed packaging and promotional materials due to
debut within the next month, including a logo which says 'always
Indonesia, always Coca-Cola'.
Well, salute Cola wars!