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!