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Pepsi leads in emoji – 11 vs 6 for Coca-Cola in the APAC region

Pepsi is unleashing emojis on its packaging as an answer to Coca-Cola’s highly successful ‘Share a Coke’ campaign. The emoji-clad ‘Say it with Pepsi’ campaign is to be launched in the summer of 2016 across over 100 markets.

In Asia, Coca-Cola beat Pepsi to the game with the debut of its ‘Share a Feeling’ emoticon campaign in Vietnam in July 2015. Share a Feeling is an extension to the ‘Share a Coke’ program, which was first introduced in Australia in 2011.

xin chao
Coca-Cola’s ‘Share a Feeling’ in Vietnam

‘Say it with Pepsi’ marked its Asian debut in Thailand in October 2015. In November 2015, one month after PepsiCo’s launch in the country, Thailand became the next market for Coca-Cola ‘Share a Feeling’.

pepsi thailand emoji

Coca-cola thailand

The table below provides a summary of the emoji packaging launched by Coca-Cola and PepsiCo in the Asia Pacific region from July 2015 to mid-May 2015.

say it with pepsi chart

 

As part of the global roll out of ‘Say it with Pepsi,’ the campaign has now covered all of the Indochina market, two major countries in the Indian subcontinent (India and Pakistan), Australia and several other countries in Southeast Asia (Singapore and the Philippines) with most of them within the February to April 2016 period.

In contrast to Pepsi, the ‘Share a Coke’ is still going strong and there is less urgency to go ahead with ‘Share a Feeling.’ This partly explains the rather slow introduction of the ‘Share a Feeling’ across the Asia-Pacific region.

Share a Coke in Pakistan
‘Share a Coke’ in Pakistan
Korea Coke
Coke ‘Share a Feeling’ in South Korea

The two countries that are notably absence from the emoji war waged between the two beverage giants are China and Indonesia. The upcoming Ramadan (5 June 2016 to 5 July 2016) may well see Coca-Cola continuing with the ‘Share a Coke’ campaign in the world’s most populous Muslim country.

Ramadan Share a Coke in Malaysia
Ramadan Share a Coke in Malaysia (2015)

In view of the possibility of soda tax in several countries in the region including the Philippines and India, the emoji campaign will hopefully slowdown consumer migration to other drinks and the impact of the proposed taxes.

In India, Pepsi is taking preparing itself for the soda tax by launching new mini cans (150ml) priced at Rs 15 to coincide with the debut of the PepsiMoji campaign in March 2015.

pepsi mini
Pepsi Mini (150ml) launched in India
Pepsi India
PepsiMoji campaign in India

Ultimately, the emoji packaging will bring the two Colas head on with each other.

Real Good small-pack UHT liquid milk sales volume up 30%

The Real Good small-pack UHT liquid milk of Japfa Ltd is doing very well. Sales volume of Real Good UHT liquid milk in Indonesia rose double-digit for two consecutive years (2014-2015), up respectively by 30% and 41%.

Mini Me Insights from company information
Mini Me Insights from company information

On the contrary, sales of the company’s extended shelf life branded milk in the Southeast Asia region under the Greenfields brand fell 6.6% in 2015 to 21.1 million litres. About 70% of Greenfields milk is exported, while the remaining 30% is consumed locally.

Mini Me Insights from company information
Mini Me Insights from company information

The Real Good UHT milk in the 160ml pillow pack is designed for aspirational consumers and is popular with school children, thanks to its affordable price.

Real Good price

Japfa currently has a UHT milk processing plant with a monthly production capacity of 3,500 tons or 42,000 tons per year.

The Real Good UHT milk in pillow pack is still the best way to reach lower income consumers. Eventually, there is a likelihood the company will come up with a carton alternative to encourage consumers to buy something of higher value. This will be a repeat of the strategy of OT Gelas for its Teh Gelas RTD tea in a cup now also available in more expensive PET and carton options.

Unilever selling Sunsilk in sachet in Malaysia

Malaysia has grown past the sachet economy. Unlike consumers in Indonesia and the Philippines, Malaysian consumers have the power buying to purchase consumer goods in larger pack sizes. However, it is interesting to see Sunsilk hair care products being being sold in individual sachet through the traditional trade channel.

Sunsilk sachet malaysia
Sunsilk Lively Clean & Fresh sachets selling at a roadside stall in Petaling Street

The products are neatly displayed with a special cardboard imprinted with Sunsilk product information suitable for five rows of sachets. The choice of product, the Sunsilk Lively Clean & Fresh, is geared mainly towards Muslim women wearing the headscarf.

The roadside stall is located in Petaling Street or Chinatown in the heart of Kuala Lumpur. There are many budget hotels in the area. The 6ml sachet is aimed at tourists who are not willing to spend more for shampoo.

The special display for Sunsilk shampoo in sachet probably indicates Unilever is looking at expanding the sachet strategy in Malaysia to encourage trial and to reach out to price-sensitive consumers.

Mr Best introduces functional snack nuts

SLG Food Industries Sdn Bhd has introduced a new range of healthy snack nuts under the Mr Best label.  The range comprises four variants – Healthy Bean, Slimming Nuts, Cashew Cranberry Nuts Mix and Healthy Nuts. They are available at MyNews.com convenience store in 70g pack.

Slimming Nuts Healthy Beans

The interesting thing about the snacks are they include ingredients not commonly found in snacks such as goji, red dates and black melon kernel.

The following are their ingredients.

Slimming Nuts – Cashew nut, almond, dried figs, raisin, peanut and pistachios kernel.

Healthy Nuts – Goji, raisin, almond, white pumpkin, kernel and black melon kernel.

Healthy Beans – Cashew nut, almond, black soya bean and green soya bean.

Cashew Cranberry Nuts Mix – Red dates, cranberry, raisin, cashew nut and peanuts.

Slimming nuts

As consumers shift to healthy eating, the snacking market is increasingly moving towards healthy indulgence. Among the attributes of healthy indulgence are ingredients (dried fruits eg cranberries, colour (purple potato) and processing technique (baked).

Healthy chips

Mr Best new product has a clean design and the vibrant colours convey a fresh and healthy image. The 70g pack size also complements the existing common snack nut pack sizes of 30-40g and 150-180g. Unlike existing products in the market, the new range is opened to experimenting with goji (wolfberry), red dates and black melon kernel, making this range stands out in the crowded snack nut isles. The product description eg. slimming nuts and healthy nuts has introduced consumers to a new approach of making their selection, which is based on functionality and less about taste.

Kellogg’s oatmeal rolls into Southeast Asia

Kellogg’s is fighting back. This time, it is introducing instant oatmeal, marking its entry into PepsiCo’s traditional turf – oatmeal This is in response to PepsiCo’s entry into the breakfast cereals market with the new Quaker Crunch range at the end of 2015.

quaker breakfast

Kellogg’s is no stranger to oats. In India, the company has a range of oat products including Oats Tomato Salsa and Oats Green Pudina localised for the Indian market.

Kelloggs-Oats-product-range

The new Kellogg’s oat is packed in Malaysia using oats imported from Australia. It is distributed in Malaysia by Delfi Marketing, Hong Kong by LF Asia, the Philippines by Monde Nissin and Singapore by Centurion Marketing. The pack size is 800 grams.

Kellogs price

Sea salt drink spreads wings, now in Indonesia

China’s highly successful Haizhiyan Sea Salt Lemon Water (海之言) has been introduced in Indonesia under a new name Nu Oceana. The new Nu Oceana Sea Salt Lemonade was officially launched in April 2016 by PT ABC President, a joint venture between local ABC Central Food and Taiwan’s Uni-President Enterprises Corporation. Uni-President’s local unit in China owns the Haizhiyan brand. Nu Oceana is lauded as the first sea salt drink in Indonesia.

Haizhiyan sales reached CNY 1 billion (USD 154 million) in first six months of 2015

In China, sales of the juice-flavoured functional drink Haizhiyan was reported to have reached CNY 1 billion in the first half of 2015. In 2015, the combined sales of Haizhiyan (CNY 1.7 billion) and Classmate Xiaoming RTD tea stood at more than CNY 2.5 billion.

Nu Oceania versus Haizhiyan

Nu Haizhiyan

Nu Oceana comes in a smaller 460ml bottle whereas Haizhiyan has a larger volume of 500ml. There is currently only one flavour for Nu Oceana. Haizhiyan, launched in 2014, now has five flavours – lemonade, calamansi, blackcurrant, grapefruit and peach. Peach and blackcurrant are the new flavours introduced in early 2016.

Sea, sun and sand

Haizhiyan beach

summer

As the key ingredient is sea salt, the TVCs and print and ads for Haizhiya and Nu Oceana revolve around sea, sun and sand. But Haizhiyan goes one step further by claiming it uses Mediterranean sea salt. The difference is obvious. Mediterranean is more effective in conjuring the image of sea, sun, sand and blue sky for Chinese consumers as well as implying quality (sea salt from the Mediterranean).

For Indonesian consumers, there are already living in a tropical country that is hot and sunny. The only thing that turns them on is leaving the congested urban sprawls and pollution and head to the beach for a relaxing vacation with friends and family.

Nu Oceana’s “Taste of Summer in a Bottle” tagline sets is apart  from Danone’s Mizone and Vit Levite. The ads of Mizone and Vit Levite are usually set in an urban environment addressing the needs of urban dwellers such as uplifting the spirit (Mizone’s Bantu Semangat OK Lagi!) and relaxing (Vit Levite’s Rasakan Ringan).

Lightly flavoured drink in vogue

In China, “lightly flavoured” or “near water” drink has become a key category for new product innovation. The popularity of “near water” drink reflects consumer changing preference for natural hydration with low artificial flavour and sweetness. Lightly flavoured drink is characterised by its transparent colour (water like) and its fruit-based flavour.

China lightly flavoured water
From left to right Suntory Qin Ning Shui (沁柠水), Master Kong Sea Crystal Lemon (海晶柠檬) with sea salt, Uni-President Hai Zhi Yan (海之言) with sea salt, Danone Mizone Sui Yue (随悦) with sea salt and Nongfu Shanquan Water series.

In Indonesia, Danone Mizone Fresh’in, debuted in 2014, is the closest equivalent to “near water” drink. The other is Danone’s Vit Levite light fruit-flavoured water, also launched in 2014.

Danone Mizone Fres'in (left) and Danone Vit Levite (right)
Danone Mizone Fres’in (left) and Danone Vit Levite (right)

Nu Oceana now joins the light fruit-flavoured water bandwagon. The new beverage is positioned as a hydration drink to replace lost fluid and electrolyte and is suitable for every day consumption.

Sea salt drink spreading its wings

Oceanic lime drink

In Singapore, Yeo’s has launched something similar made with real fruit juice and Australian sea salt.  With a Nu Oceana making an appearance in Indonesia, would it be time before similar light fruit-flavoured water with salt makes its way to Malaysia.

From India with love: Cadbury Five Star arrives in Southeast Asia

Cadbury Five Star, the new caramel chew bar, has been officially launched in Malaysia. Five Star was first introduced in India in 1969. It comes with layered chocolate, caramel and nougat.
According to Mondelez International  Inc. category director for chocolate in Southeast Asia, Ben Summons, “Chewy caramel bar is very popular worldwide, but it is not very big in Malaysia.” The company also disclosed its chocolate market share in Malaysia at 22% in 2015, making Mondelez the market share leader in chocolate.
The following pricing data and product availability comes from Malaysiafoodie.com

Cadbury 5 Star comes in three snacking options:
‒      45g bar (RRP RM2.90)
‒      150g (10 bar x 15g) sharepack (RRP RM9.90)
‒      15g bar (RRP RM1.00)

Five price

“The first two options are available at all major hypermarket, supermarket and convenience retail stores, while the last option is available at provision retail stores nationwide from May 2016 onwards.”

Image taken at Mydin, May 2016
Image taken at Mydin, May 2016
Malaysia and the Philippines are the first two countries in Southeast Asia for the launch of Cadbury Five Star.
The interesting thing about Cadbury 5 Star for the Malaysia market is the size of the individual bar. It is a much bigger 15g for the Malaysia market versus 10.5g for India. The 10.5g Cadbury 5 Star was really tiny when I first saw it in India in 2015. The smaller pack size is designed to suit the buying power of local consumers in India.
The other observation is Cadbury 5 Star comes with a better price point compared to Cadbury Boost in the same caramel chew bar category. The made-in-Australia Boost is priced at RM 4.70 (60g), while the made-in-India Cadbury 5 Star is priced at RM 3.60 (45g). On a per unit basis, Boost is actually slightly cheaper (RM 7.8/KG) compared with 5 Star (RM 8/KG).
5star boost

China gets its first hemp seed drink Sutiwa

Hemp-infused drink has been in the market in the US for several years now. Hemp appears in energy drink, water, vodka, beer, milk and wine.  Hemp seeds are th

e seed of the Cannabis Sativa plant. In the US, it is legal to sell the product as it does not have the same levels of tetrahydrocannabinol (THC) as marijuana does. Hemp seed is eaten for its essential fatty acid, protein and fibre content. With the perfect ratio of fatty acids, hemp seeds also help fight anxiety and stress, said Dr Oz.

China is the second biggest producer of hemp seeds in the world after France. The country is also the top exporter of hemp paper and textiles. In China, hemp seed is known as huo ma ren (火麻仁). In traditional Chinese medicine (TCM), huo ma ren helps moistens the intestines and unblocks the bowels.

Sutiwa – China’s first relaxing drink 

Sutiwa3

A local company Han Yi Sheng Wu Biosciences (HYBT) has recently launched Sutiwa (萨缇瓦) hemp seed-based functional drink at D.Park Beijing House on 9 April 2016. The drink is lauded as China’s first relaxing drink. It contains hemp seed extracts, γ-Aminobutyric acid, α-Linolenic acid and vitamin B. There are two flavours to choose from passionfruit and lime. A pack of four costs RMB 112 (USD 17.2). The manufacture is Foshan Shanshui Zibao Xiongdi Beverage (佛山市三水孖宝兄弟饮料有限公) is located in Foshan in southern China’s Guangdong province. The shelf life is 365 days. Each bottle weights 245ml. 

sutiwa4

The marketing message is aimed at urban professionals helping them to relax their mind and aiding their sleep.

sutiwa

The relaxation marketing message ensures Sutiwa stands out in the crowded functional drink market. Sleep deprivation is a major problem in China. People are maximising their time following a hard day at work or study. Energy drinks such as Red Bull are focusing on mental alertness. However, there is hardly a drink to help with relaxation and sleeping. As such, Sutiwa fills a crucial gap in the market.

Tesco, Woolworths ditching cheap no-brand private labels, GCH Retail moving in right direction

From thetimes.co.uk

In the UK, Tesco has ditched its ‘Everyday Value’ discount brand in favour of seven fictitious British-sounding farm names, while in Australia, Woolworths abandoned its 33-year-old ‘Homebrand’ generic brand for the new ‘Essentials’.

100 % of original
Essentials

Supermarket chains are letting go of their iconic private label brands to address perception of inferior quality. Both ‘Everyday Value’ and ‘Homebrand’ essentially conveys the no-frills image but with the improving economy and consumers upgrading to better quality products, it is now the time to revisit their private label strategies to improve the quality image.

Competes with Aldi 

Both chains are competing with the German discounter Aldi. Woolworths claims the introduction of Essentials is to fight the perception that consumers can get better quality at Aldi. The problem with Tesco and Woolworths is the use of ‘no-name’ private label strategy featuring plain packaging to infer low price. In contrast, Aldi’s low-price private label mimics nationally branded products through the use of brand names. The Aldi approach gives it the advantage of brand and price. Aldi’s strategy has proven to be superior. The 2014 Roy Morgan survey in Australia revealed Aldi shoppers were willing to buy more store’s own products than well-known brands.

Roy morgan home brand
Roy Morgan from The Leader.com.au

GCH Retail mimics national brand names

Market garden

In Malaysia, the mimicking brand name approaching is being adopted by GCH Retail. The retailer that operates Giant and Cold Storage has introduced exclusively imported products under brand names such as Sun Harvest, Papa Alfredo and Vita Pet. As the quality of private label improves to be on par with national branded alternatives, the once ‘cheap and nasty’ private label perception will change. That is the time when retailers need to rethink their ‘no-name’ private label strategy.

When herbal tea meets Angry Birds

JDB partners with Angry Birds. Appointing Red as the World's No Internal Body Heat Ambassador

What would you do when you feel you are as angry as Angry Bird? Drink Jia Duo Bao (JDB) herbal tea!

Herbal tea to relieve anger & stress
Anger management and stress relieving through drinking herbal tea has become a new marketing message for JDB to attract a generation of young consumers who are into things that are lovely and cute or ‘mai meng’ (卖萌).

angry bird

On 9 May 2016, JDB will launch four limited-edition Angry Birds JDB collections on JD.com. The four designs features four types of internal heat caused by staying up late (熬夜),  working over time (加班), stuck in the traffic jam (堵车) or angry at something without an apparent reason (无名). All these feelings will result in the accumulation of internal body heat and this can be doused off by drinking JDB herbal tea.

Combating ‘Wu Ming Huo’ 大战无名火

wuming huo

Users can participate in a game on WeChat to douse anger caused by being angry at something or someone without an apparent reason (无名火).

WuminghuoProtecting the islands from 无名火 (Wu Ming Huo) using Jia Duo Bao herbal tea as a weapon.

Protecting

Dousing off the 无名火 (Wu Ming Huo) represented by the angry pigs using Jia Duo Bao herbal tea

Wuminghuo 3

The author has eliminated five ‘Wu Ming Huo

Eliminated

Herbal tea is big business in China

JDB sold RMB 22 billion worth of herbal tea in 2015, while Wong Lo Kat was reported to have achieve sales of approximately RMB 23 billion. Dali Foods posted herbal tea sales of RMB 2.6 billion in 2015. The estimated combines sales of the three herbal tea behemoths stood at RMB 47.6 billion in 2015 or USD 7.3 billion.

 

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