Danone flourishes in Indonesia

12 September 2012

JAKARTA: Danone, the dairy group, is taking an integrated approach in Indonesia, combining in-store promotions with mobile and social media to attract consumers in the country.

The company, which is headquartered in France, partnered with Jana Mobile, the marketing services firm, in a bid to reach people living in Jakarta who shopped at Carrefour, the French-owned hypermarket chain.

In order to achieve this, customers buying multipacks of Danone's Mikuat or Activa brands at Carrefour outlets received rebates of 5,000 rupiahs on mobile airtime credit, known locally as "pulsa".

This constituted an especially appealing proposition in Indonesia, where 91% of mobile subscribers are still on pre-paid deals.

People who bought these items were handed a scratch card with a unique redemption code, which they had to text to a dedicated phone number or enter via an app on Facebook, the social network.

Consumers taking the latter route were also given the option to refer friends to this promotion, and received another 5,000 rupiahs-worth of airtime for spreading such word of mouth.

Alongside engaging its most passionate and influential clientele, Danone registered a 27% increase in sales of the multipacks in question, when demand for competing products was flat.

"A 27% sales lift from a promotion is unprecedented," said Gift Samabhandu, marketing director of Danone Indonesia. "Clearly, the opportunity to earn pulsa was a strong incentive for consumers to try our products."

Moreover, 16% of customers who took advantage of this offer did so at least twice, and uptake remained constant throughout the campaign, rather than peaking at the start, as is generally the case.

Two weeks after the end of this scheme, all of the scratch cards had been redeemed, a result that was also described by Danone as "unprecedented".

Similarly, sales of "bundled" products, where shoppers bought multipacks of each brand, not just from one, were found to have doubled, meaning Danone enjoyed cross-selling benefits.

Among participant buyers surveyed by Danone and Jana Mobile, 100% held a favourable view of the promotion, and 99% agreed they would be interested in such campaigns.

Data sourced from Jana Marketing; additional content by Warc staff