This document was presented when I was guest lecturing at FEUI on December 8th 2012. The purpose of this case study is to share the real practice and implementation of a Marketing Strategy concept.

1. ReVITAlize VITACIMIN
Segmentation, Targeting & Positioning
A Case Study – Presented in FEUI Depok
Disclaimer:
The presented contents and materials in this document, are merely used for
academic discussions only and not to be used for commercial purposes
without any permit from the author. This document is reserved by Intellectual
Property of the author.

2. About TAKEDA Pharmaceutical Company
• Takeda is a research-based global company with its main focus on
pharmaceuticals
• Takeda has been established since 230 years ago, founded in Osaka,
Japan.
• As the largest pharmaceutical company in Japan and one of the global
leaders of the industry, Takeda is committed to strive towards better health
for patients worldwide through leading innovation in medicine.
• Takeda's ethical drugs are marketed in around 100 countries worldwide
Mission:
“We strive towards better health for patients worldwide through leading
innovation in medicine”
Vision
“Takeda’s vision is to embody global pharmaceutical leadership through
innovation, culture and growth guided by an unwavering commitment to
significantly improve the lives of patients”
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3. Product Picture

4. Vitamin C Products Launch Year Comparison
MNF LDATE
A11G2 VITAMIN C COMBINATIONS
SUPER ESTER C TCN Feb-93
REDOXON ZINC B/S Jul-00
SUPREME ESTER C TCN
A11G1 VITAMIN C PLAIN
VITACIMIN TAK Apr-71
VITALONG C TRC BNO Jan-86
XON-CE KLB Jan-92
VICEE D.V Sep-88

6. PORTFOLIO STRATEGY
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7. Market / Product Expansion Grid Ansoff’s Market/Product
Expansion Grid
• Current and future product position to determine the best strategy
Product Development Diversification
new
PRODUCT
Market Penetration Market Development
Vitacimin &
New Variants
Existing
Existing MARKET new
6

8. Market Penetration & Development Strategies
Market Penetration Market Development
Vitacimin &
New Variants
Current Users Non Users
Increase Usage Frequency Increase Brand Awareness
Lapsed Users New Market Segment
Retention & loyalty strategy Increase Brand Awareness
Current Competitors Users
New Geography
Increase switching from
Increase distribution
competitors to our products
7

9. VITACIMIN MARKET LANDSCAPE
• IMS Data

10. VITAMIN Market in Sales Value
Total VITAMIN market in total value EUR 283 mio, growth +8%, driven by Multivitamin & Minerals
70,000 +15% 64,214
A11A MULTIVITAMINS + MINERALS
60,000 A11B MULTIVIT WITHOUT MINERAL
-2%
Value EUR’000
50,000 48,654 A11D VITAMIN B1 & COMBINATION
40,000 +3% A11G VIT C INC.MINERAL COMBS
38,446 A11E VITAMIN B COMPLEX
30,000
A11X OTHER VITAMINS
20,000
A11C VIT A & D INC. COMBS
10,000 A11F VITAMIN B12 PLAIN
-
08Q4
09Q1
09Q2
09Q3
09Q4
10Q1
10Q2
10Q3
10Q4
11Q1
11Q2
11Q3
11Q4
12Q1
MAT
30% 27%
A11A MULTIVITAMINS + MINERALS
25% A11B MULTIVIT WITHOUT MINERAL
MS %
20% A11D VITAMIN B1 & COMBINATION
20%
A11G VIT C INC.MINERAL COMBS
15% A11E VITAMIN B COMPLEX
10% A11X OTHER VITAMINS
6% A11C VIT A & D INC. COMBS
5%
A11F VITAMIN B12 PLAIN
0%
08Q4
09Q1
09Q2
09Q3
09Q4
10Q1
10Q2
10Q3
10Q4
11Q1
11Q2
11Q3
11Q4
12Q1
MAT
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11. VITAMIN C Market in Sales Value
Total VITAMIN C market in total value EUR 38.4 mio ,growth +3%, driven by Vitamin C Plain at +14% growth.
VITACIMIN growth outperforms, at 17%
25,000
A11G2 VITAMIN C COMBINATIONS
-5%
19,074 SUPER ESTER C
20,000
Units’000
19,371
+14% REDOXON ZINC
15,000 SUPREME ESTER C
A11G1 VITAMIN C PLAIN
10,000
VITALONG C TRC
5,394 VITACIMIN
5,000
+17%
XON-CE
0
08Q4
09Q1
09Q2
09Q3
09Q4
10Q1
10Q2
10Q3
10Q4
11Q1
11Q2
11Q3
11Q4
12Q1
MAT
60%
A11G2 VITAMIN C COMBINATIONS
50%
50% 50% SUPER ESTER C
MS %
REDOXON ZINC
40%
SUPREME ESTER C
30% A11G1 VITAMIN C PLAIN
20% VITALONG C TRC
14% VITACIMIN
10%
XON-CE
0%
08Q4
09Q1
09Q2
09Q3
09Q4
10Q1
10Q2
10Q3
10Q4
11Q1
11Q2
11Q3
11Q4
12Q1
MAT
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12. MARKETING RESEARCH
• Vitamin Consumers - IPSOS
• Consumers Demographic - Roy Morgan
• Real Consumers survey – Internal
• Indonesia Shopping Behaviour – MARS

13. What is the incidence of taking Vitamin C?
Because of its several benefits, Vitamin C intake among Takeda’s target market is
widespread — indicating a big market for VITACIMIN
Incidence of consuming Vit.
C Supplement
Total
(100%)
Not Consumed in Consumed in
P1Y (5%) P1Y (95%)
Not Consumed in Consumed in
P3M (3%) P3M (92%)
NOTE:
© 2011 Ipsos
P1Y; Past 1 Year
P3M: Past 3 Months
P1M: Past 1 Month
Not Consumed in Consumed in
P1M (6%) P1M (86%)
Base: All respondents
12
A8c – A10 : Which brands of Vitamin C have you consumed in past 1 year, past 3 months, past 1 month?

14. Ready to Drink as 1st option for other format of
VITACIMIN
 The chewable candy format dominates the Vitamin C market since VITACIMIN
is the market leader.
 The chewable candy format is appealing to a wide group of Vitamin C users
and also projects a fun, practical & ‘young’ image; although it is expensive,
RTD is seen as young, fun, effective & refreshing
READY-TO-
CHEWABLE EFFERVESCENT TABLET
DRINK (RTD)
 Females  Young
Profile  Wider segment  Young
 SEC A  Single
Why Prefer
 Practical  Practical  Practical  Practical
to Use
 Expensive
 Practical to use  Expensive
 Refreshes
 Consumed daily  Refreshes
Image  Easily absorbed  Bad taste
 Fresh sensation  Easily absorbed
 Immediate reaction
 Fun to consume  Immediate reaction
 Practical to use
© 2011 Ipsos
 Fun/cheerful  Serious  Active
Personifi-  Serious
 Teenagers  Smart  Fun/cheerful
cation  Adults
 Adults  Teenagers
13

15. Key Learning -1
 The usage & purchase behavior of the leading brands vary depending on their format---
the ‘non-medicine type’ which are the chewable candy and the Ready-to-Drink have
generally the same characteristics versus the “medicine type’ which are tablets and
effervescent as shown below:
VITACIMIN XONCE YOU C1000 ENERVON C REDOXON
 RTD
Product  Chewable  Chewable
(Ready To  Tablet  Effervescent
Format candy candy
Drink)
How  71%  61%  63%  53%  51%
Consumed occasional occasional occasional occasional occasional
Consumption
 5x/wk  4-6x/wk  4x/wk  5x/wk  4-6x/wk
Frequency
Place of  Warung  Mini market  Pharmacy  Pharmacy
 Warung
Purchase  Pharmacy  Warung  Drugstore  Drugstore
Planned vs  Impulse,  Impulse,  Impulse,  Impulse,  Impulse,
© 2011 Ipsos
Impulse 54% 56% 63% 24% 34%
Purchase
 11x/month  11x/month  12x/month  6x/month  5x/month
Frequency
14

16. Price Index
Redoxon Double
VITACIMIN Xonce Vitalong C Enervon C You C1000*
Action
Manufacture Takeda PT Kalbe Farma PT Bernofarm Mediafarma Bayer Consumer PT.
Tbk Care Djojonegoro
C-1000
Formulation Chewable Chewable tablet Capsul Tablet Effervescent Drink
tablet tablet
Package strip @2 tab strip @2 tab Bottle @30 cap Bottle @30 Tube @10 tab Bottle
Price per Rp475 Rp440 Rp700 Rp747 Rp2,229 Rp5,000
tab
Dosage 1 1 1 1 1 1
Price / day Rp475 Rp440 Rp700 Rp747 Rp2,229 Rp5,000
(daily dose)
Index 100 93 147 157 469 1,053
Formulation Ascorbic acid Vitamin C 250 mg, Vitamin C 250 mg, Vit B1 50 Mg, Vitamin C 1000 mg, Vitamin C
500mg soft powder of Na soft powder of Na Vit B2 25 mg, zinc 10 mg. 1000 mg,
ascorbate 250 mg ascorbate 250 mg vit B6 10 mg, Niacinamide 2
vit B12 5 mcg, mg,
vit C 500 mg, Sodium 45
niacinamide 50 mg, mg,
Ca pantothenate 20 Sugar 14 g,
mg Carbohydrate
s 14 g,
Energy 60
kcal.
15

17. Which brands are mostly remembered? -1
Vit. C users are aware of several brands; VITACIMIN has an advantage in terms of
SPONTANEOUS awareness with Redoxon following from afar
In : %
Top of Mind Other Spontaneous Aided
76
Vitacimin 36 40 21 97
58
Redoxon 18 40 39 97
42
YOU C1000 8 34 47 89
49
Enervon C 18 31 39 88
35
Xonce 9 26 46 81
17
Vicee 2 15 54 71
© 2011 Ipsos
Base: All Respondents (UnWTD n=550; WTD n=550)
A1 : What brands of Vitamin C do you know of? (S) DO NOT AID
A2 : What other brands of Vitamin C do you know of? What else? Anything else? (M) DO NOT AID
A5 : By looking at these cards, which brands of Vitamin C do you know of? What else? Anything else? (M)
16

18. Brand Map (Total)
VITACIMIN is highly associated to being suitable
Brand map also reveals that
for all family members, safe for daily consume, fun to consume, affordable. Redoxon on the
other hand is perceived more “serious”--- recommended by doctor & pharmacist; Xonce & Vicee are not
associated to any factors
Main Title
Af f ordable price
Can be consumed everywhere/anywhere
Practical to consume
Purchased everywhere
Vitacimin Suitbl f or all f am members
Saf e f or daily consumed
Xonce
No side ef f ects
Fun to consume Avaibl in various f lavors Vicee
Good taste
Fam/f riends recommend Avaibl in various f ormats
Contains several vitamins
Pharmacist recommend
Famous brand
Maintain immune systm
By f amous company
Ef ectiv maintain stamina
High quality
Being advertised
© 2011 Ipsos
Doctor recommend
Base: All
Respondents
(UnWTD n=550;
Redoxon
WTD n=550)
17
B3. Which brand applies to……

19. Roy Morgan’s Research – Type of Vitamin Used
by Age Groups (Redefined)
• The 76% of Vitamin Chewable tablets users are range from 18 to 49 y.o
65 and over 0.9
50-64 6.9
Other
35-49 22.7 Bottled drinks
Normal tablets
25-34 28.1
Chewable tablets
18-24 25.7 Effervescent tablets
14-17 15.7
0 10 20 30 40 50
Raw Data
Effervescent Chewable Normal Bottled
% tablets tablets tablets drinks Other
14-17 y.o 4.4 15.7 9.6 10.7 1.8
18-24 y.o 19 25.7 20.2 19.4 24.3
25-34 y.o 32.5 28.1 33.1 36.4 38.2
35-49 y.o 24.4 22.7 26.2 26.9 19.6
50-64 y.o 19.2 6.9 10.2 6 15.4
> 65 y.o 0.5 0.9 0.8 0.6 0.7
TOTAL 100 100 100.1 100 100

20. Summary of Indonesia Shopping Behaviour
Survey 2012 – OTC Category, MARS
• OTC products are more to occasional products which purchased if needed. And mums
play a key role in choosing the OTC products to be used by her family.
58% find the 59%
OTC when purchases
74% buy OTC
Family is OTC when
products in
sick needed
retail
Decision makers
in purchasing OTC
products:
mums/wives 73% Purchase
, dads/husbands locations:
25% Pharmacy
45%, Mini
buyers: stall 35%
users:
mums/wives dads/husbands
57% , 35%
dads/husbands Mums/wives 35%
34% Children 29%
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21. The Face of Respondents
20

22. MARKETING STRATEGY
• SEGMENTATION
• TARGETING
• POSITIONING & DIFFERENTIATION

23. Segmentation based on Vitamin C consumptions
Source: internal calculation based on
Secondary data; MARS Indonesia Shopping
Total 234 mio population Behaviour, Markplus Middle Class
Population Monitoring, BPS
(100%)
63 mio households
Non Middle Class Middle Class 133 mio population
Population (43%) Population (57%) 36 mio households
FAMILY routine
Non (~%) expense on
27 mio population
health (29%) 10 mio households
Segments for Not consumed
Consumed
15 mio populations
market Vitamin or
vitaimin or
supplement (43%)
Supplement 6 mio HH
education (57%)
Segments for Not consumed Consumed
market
Vitamin C Supp in Vitamin C 14 mio population
P3M Supp in P3M
penetration (92%) 5.5 mio households
(8%)
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24. Targeting
Market education Market penetration
Family Family
Dad 40-45 y.o
Mum 35-45 y.o
Children 12-18 y.o
2nd 1st Progra
ms
Mass
Spill
Individual
Male & Female, 16
– 35 y.o
over 3rd Progra
ms
Vitamin / Vitamin C Supp
Supplement Users Users
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25. Positioning & Differentiation
Family
Wider age group
Chewable
XonCee FUN
FIT
Twice a day Protection/
Immunity
HEALTHY
FMCG like OTC like
VITACIMIN
RTD Redoxon
Young-Middle You C
age groung 1000 Tablet Healthy
Enervon C
Bottle 1-3 takes in one week Stamina
Expensive Beauty
Mid expensive
Nourish Skin Individual
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28. Thank you
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