Consumer Goods Innovation: Adapting to Evolving Customer Preferences in Indonesia

A global consumer goods manufacturer with a significant presence in Indonesia partnered with Eurogroup Consulting to revitalize its product strategy and market approach. The client faced intense competition from local and international brands and aimed to better align its products with the fast-changing preferences of Indonesian consumers to sustain growth in this vibrant market.

Despite a strong legacy in the market, the company had seen a plateau in sales growth as consumer tastes rapidly evolved. New local entrants were capturing market share by offering products tailored to Indonesian cultural preferences and price points. The client’s product development cycle was slow and not adequately informed by current consumer insights, leading to offerings that sometimes missed the mark in terms of flavor, packaging, or marketing appeal. Additionally, the company’s traditional distribution channels were being challenged by the rise of e-commerce and modern retail formats in Indonesia, and its marketing strategies had not fully embraced digital engagement that younger consumers favor. These challenges left the company at risk of losing relevance among key customer segments.

Eurogroup Consulting crafted an innovation and go-to-market strategy focusing on consumer insight, agile product development, and channel diversification. The plan started with an in-depth market research initiative, gathering data on emerging consumer trends, local preferences, and feedback on the client’s existing product range. Using these insights, the consulting team facilitated ideation workshops to localize and innovate products – from introducing new flavors and smaller, affordable packaging, to developing entirely new product lines geared towards health-conscious and tech-savvy consumers. To accelerate the product development process, an agile framework was introduced, allowing the company to prototype and test new products quickly in select markets before full-scale launch. In parallel, Eurogroup Consulting advised on diversifying the client’s market channels: expanding e-commerce presence through partnerships with online marketplaces, strengthening relationships with modern retail chains, and leveraging social media and influencer marketing to engage younger audiences. The solution also included training the client’s marketing and product teams on data analytics and trend-spotting to make the innovation cycle continuous.

The engagement kicked off with comprehensive consumer research, including surveys, focus groups, and analysis of purchasing data across Indonesia’s diverse regions. Eurogroup Consulting worked with the client’s local marketing team to interpret the findings and translate them into actionable product concepts and positioning strategies. The consultants introduced an iterative development approach, creating cross-functional teams that included marketing, R&D, and sales to collaborate on fast-tracking promising product ideas. Pilot launches of new or revamped products were conducted in a few cities, with close monitoring of sales performance and customer feedback. Meanwhile, the team helped the client negotiate partnerships with major e-commerce platforms and set up an internal e-commerce unit to manage online sales and digital customer service. Marketing campaigns were revamped through the engagement of local influencers and interactive content on popular social media channels, tested in tandem with the product pilots. Eurogroup Consulting maintained a hands-on role throughout, guiding adjustments based on pilot outcomes, ensuring that successful innovations were scaled up and embedded into the company’s standard operations.

To keep the company at the forefront of consumer trends, Eurogroup Consulting recommended establishing an ongoing consumer insight program. This could involve a small in-house research team and periodic engagement with external research firms to continually gauge market shifts. The company was also advised to institutionalize the agile innovation process, making cross-functional collaboration permanent and rewarding teams for successful new product introductions. On the distribution front, it was suggested that the client continue expanding its digital footprint, including exploring direct-to-consumer sales channels and personalized marketing using customer data from online platforms. Eurogroup Consulting emphasized the importance of nurturing an innovation-focused culture – encouraging experimentation, staying attuned to local trends, and being willing to pivot quickly in response to consumer feedback. This cultural shift, along with strategic investments in insights and digital capabilities, would help the company maintain relevance and competitiveness in Indonesia’s dynamic consumer goods sector.

The transformation in the client’s approach led to a rejuvenation of its performance in Indonesia. Within a year, the company launched several new or revamped products that resonated strongly with target consumers, leading to a notable uptick in sales growth after the previous plateau. One new product line developed during the engagement became a market leader in its category, driven by its alignment with local tastes and savvy social media marketing. The shift to agile product development cut the time-to-market for new offerings by nearly half, enabling the company to respond faster to trends than ever before. Additionally, the client’s expansion into e-commerce and modern retail channels significantly increased its market reach, with online sales growing rapidly from a very low base. The brand’s engagement with younger consumers improved markedly, reflected in higher social media followership and interaction metrics. In sum, the case study highlights how a focus on innovation and adaptability, grounded in deep consumer understanding, revitalized the company’s growth and solidified its position in Indonesia’s competitive consumer goods landscape.