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Indonesia is among the top five fastest growing countries in Asia Pacific for retail value sales of dairy. Amid more intense competition, Frisian Flag Indonesia PT stands out as a top share gainer, thanks to a series of breakthrough innovations in condensed milk and flavoured milk drinks. This case study seeks to highlight Frisian Flag’s product innovation strategies, as well as examine its successes, growth prospects, and potential pitfalls.
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Gain competitive intelligence about market leaders. Track key industry trends, opportunities and threats. Inform your marketing, brand, strategy and market development, sales and supply functions.
For years the company has been successful at maintaining its number one position, thanks to strong footprints in the two largest dairy categories in Indonesia: drinking milk products and other dairy(specifically, condensed milk).
Frisian Flag’s strong footprint in condensed milk also translated into an over reliance on the category, As a result, when condensed milk sales slowed down in 2014, Frisian Flag’s growth lagged far behind its competitors.
In October 2015 Frisian Flag introduced easy-open cans for its condensed milk, with the slogan “Klik, Tarik, Tuang” (“Click,Pull, Pour”), to tap into the growing demand for convenience. In a category that used to be dominated by standard can ends,the easy-open can was considered a major breakthrough.
Frisian Flag introduced a new value pack size in 2016: the 560g stand-up pouch. This is the largest pack size thus far in the condensed milk category in Indonesia.
As well as in condensed milk, Frisian Flag also pushed the boundaries of innovation in flavoured milk drinks. In October 2016 the company launched Frisian Flag Pure farm Coconut Delight,the first coconut-flavoured milk in Indonesia.
mid-2017 Frisian Flag revived Mut-Mut, a condensed milk product packaged in 14g flexible aluminium/plastic, and positioned as a healthy snack for children.
Gain competitive intelligence about market leaders. Track key industry trends, opportunities and threats. Inform your marketing, brand, strategy and market development, sales and supply functions.