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MARKETING STRATEGY FOR NATURAL FOOD COLORANT POWDER

KRISTY PURWANI SYAILENDRA NIM: 29111016

Master of Business Administration Program School of Business and Management

Institut Teknologi Bandung

Approved, Final Project Advisor:

___________________________

(Drs. Herry Hudrasyah, MA)

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MARKETING STRATEGY FOR NATURAL FOOD COLORANT POWDER KRISTY PURWANI SYAILENDRA

NIM: 29111016 Date of Passing Final Examination: July 15th 2013 Date of Graduation Ceremony: October 18th 2013

Graduate Program, Institut Teknologi Bandung, 2013 Final Project Counselor: Drs. Herry Hudrasyah, MA

ABSTRACT Trend of healthy lifestyle makes the food and beverages companies require the development of their products to leading towards healthy products in order to respond the needs of the market including natural food colorant. In 2011 author has already done a research to make natural food colorant which is certainly safe for human body. However, until now the author still do not know yet how to sell these products in order to be able to enter the Indonesian market, and this problem is become the business issue of this thesis.

In exploring the business issue of this thesis, there are some analysis conducted which are company analysis, STP, marketing mix, the general environment, and industry environment (Porter 5 Forces). These analyses generate 2 root causes which are the product is not communicated yet to the consumers and the target of selling the product is still unclear whether the author will sell products to the end user or user industry.

The best business solution to address that root cause is by selling the product to the industry user in the form of products making formulation. The products making formulation will then be poured in the form of a patent. STP analysis is required so that the plan of marketing communications can be right on target and effective so the information can be well delivered. After making an analysis of STP, the next step is formulate the marketing communication strategy of the product. The communication method that will be conducted is by doing a proposal presentation and also simulation products. Both of these communication methods were chosen because it is considered to be the most effective in informing the patent product formulation to the companies, because inside the proposal is contained all information needed ranging from product information until market research that support to convince the target company.

Once the proposal is accepted, furthermore will be conducted negotiation the patents selling price through the purchasing & procurement department or competent authorities in the company. The negotiation method used is by outright sales. This method is expected by the author that the company will quickly have this patent, and also can quickly produce the natural colorant in large scale then sell directly to the Indonesian market.

Keywords: Marketing strategy, proposal, patent, natural colorant

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STRATEGI PEMASARAN BUBUK PEWARNA MAKANAN ALAMI KRISTY PURWANI SYAILENDRA

NIM: 29111016 Tanggal Lulus Ujian Akhir: 15 Juli 2013

Tanggal Wisuda: 18 Oktober 2013 Program Pascasarjana, Institut Teknologi Bandung, 2013

Pembimbing Tugas Akhir: Drs. Herry Hudrasyah, MA

ABSTRAK Trend gaya hidup sehat di Indonesia membuat perusahaan makanan dan minuman membutuhkan pengembangan produk ke arah produk sehat agar dapat menjawab kebutuhan masyarakat termasuk pewarna makanan alami. Pada tahun 2011 penulis sudah melakukan penelitian untuk membuat pewarna makanan alami yang memang aman bagi tubuh manusia. Namun hingga saat ini penulis masih belum mengetahui bagaimana cara menjual produk ini agar bisa masuk ke pasar Indonesia, dan masalah ini menjadi isu bisnis di dalam tesis ini.

Dalam mengeksplorasi permasalahan di dalam tesis ini, dilakukan sejumlah analisis seperti analisis perusahaan, STP, bauran pemasaran, lingkungan umum dan lingkungan industri (Porter 5 Forces). Analsis ini menghasilkan 2 akar permasalahan yaitu produk belum dikomunikasikan kepada konsumen dan yang kedua adalah target penjualan produk masih belum jelas apakah akan dijual ke konsumen langsung (end user) ataukah pelaku industri (industry user).

Solusi yang tepat untuk menjawab akar permasalahan adalah dengan menjual produk ke pelaku industri dalam bentuk formulasi pembuatan produk. Formulasi ini selanjutnya akan dituangkan dalam bentuk paten. Analisis STP sangatlah diperlukan supaya rencana komunikasi pemasaran menjadi tepat sasaran dan efektif. Setelah membuat analisis STP, langkah selanjutnya adalah membuat strategi komunikasi pemasaran produk. Metode komunikasi yang akan dilakukan adalah dengan melakukan presentasi proposal dan juga simulasi produk. Kedua metode ini dipilih karenadianggap yang paling efektif dalam menginformasikan produk kepada perusahaan karena di dalam proposal berisi semua informasi yang dibutuhkan mulai dari informasi produk sampai riset pasar yang mendukung untuk meyakinkan target perusahaan.

Setelah proposal diterima oleh target perusahaan, selanjutnya akan dilakukan negosiasi tentang harga jual paten melalui departemen pembelian dan pemeliharaan perusahaan. Metode negosiasi yang digunakan adalah dengan cara jual putus. Metode ini diharapkan agar perusahaan bisa dengan cepat memiliki paten ini, dan juga dapat cepat memproduksi pewarna alami secara besar-besaran yang kemudian bisa langsung dijual ke pasar Indonesia.

Kata kunci: Strategi pemasaran, proposal, paten, pewarna alami

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PREFACE

Praise and gratitude author prayed to Allah SWT who has given His mercy and grace, so that I can finish this thesis with the title Marketing Strategy for Natural

Food Colorant Powder. Author would like to express her greatest gratitude to Him, as I have finished this thesis as my last task to fulfill my master degree of Master Business Administration at Institut Teknologi Bandung in 2013, without His help and His permission author will not be able to finish it all.

This thesis would not have been possible without many supports from many people, therefore, authors thank profusely to:

1. Drs. Herry Hudrasyah, M.A., as the project councelor who has directing, giving his ideas, and also guiding during the thesis writing.

2. Ir. Dr. Mustika S. Purwanegara, MSc., and Dr. Bambang Rudito, Msi. as the examiners who have given a lot of direction and feedback to author.

3. Papa dan mama who already give all their never ending love, pray, and vigor to author.

4. Novrizal Syailendra dan Adrian Novada Syailedra as auhtors siblings who always supported and continues to motivate author to complete this thesis

5. Muhammad Idham Rizki, the beloved one, best friend and brother in the same time that is always encouraging author to keep survive until our feet

have trod to His Jannah later. 6. Dikdik Dwiparandi, MBA, who already given his suggestion in the last

minute of the revision.

7. Ir. Bambang P. K. Bintoro, MBA., who already helped giving his time to discuss with author.

8. All Informants for their participation which is willing to provide their responds in blind test and depth interview.

9. Reza Ashari Nasution, Ph.D., as Head of Master Business Administration Program, Institut Teknologi Bandung.

10. All lecturer in Master of Business Administration that give great experience to author.

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11. MBA ITB friends fromyoung professional class batch 45, class A, B and C for the encouragement and enthusiasm to immediately complete the study.

12. All staff and employee of MBA ITB who already helped author which can not be mentioned one by one.

Finally the authors hope that it can provide benefits to all parties, for the common reader and writer in particularly. If there are any suggestions, criticisms, and a variety of information related to this thesis, I respectfully wish to send it to my email [email protected] and I would be very pleased to the suggestions, criticism and the information.

Bandung, June 2013

Author

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TABLE OF CONTENT

ABSTRACT ....................................................................................................................................... i ABSTRAK ......................................................................................................................................... iii

PREFACE ....................................................................................................................................... vii TABLE OF CONTENT .................................................................................................................. ix LIST OF FIGURES ........................................................................................................................ xi LIST OF TABLE .......................................................................................................................... xiii LIST OF APPENDICES ............................................................................................................... xv CHAPTER 1 INTRODUCTION .................................................................................................... 1

1.1. Background ........................................................................................................................... 1

1.2. Industry Background ........................................................................................................... 6

1.3.Business Issue ......................................................................................................................... 8

1.4.Business Goals and Objectives .............................................................................................. 8 1.5.Research and Methodology Analysis .................................................................................... 8

CHAPTER 2 BUSINESS ISSUE EXPLORATION ...................................................................... 9 2.1.Conceptual Framework ......................................................................................................... 9 2.2.Internal Factor Analysis ...................................................................................................... 11

2.2.1.Company Analysis ......................................................................................................... 11 2.2.2.Segmentation Targeting Positioning............................................................................ 11 2.2.3.Marketing Mix ............................................................................................................... 12

2.2.3.1.Product ..................................................................................................................... 12

2.2.3.2.Price ......................................................................................................................... 25

2.2.3.3.Placement ................................................................................................................. 27

2.2.3.4.Promotion ................................................................................................................. 27

2.3.External Factor Analysis ..................................................................................................... 28

2.3.1.The General Environment ............................................................................................ 28 2.3.1.1.Demographic ............................................................................................................ 28

2.3.1.2.Economic ................................................................................................................. 30

2.3.1.3.Political/Legal .......................................................................................................... 31

2.3.1.4.Technological ........................................................................................................... 32

2.3.1.5.Sociocultural ............................................................................................................ 32

2.3.2.The Industry Environment (5 Porters Analysis) ....................................................... 32 2.3.2.1.Threats of new entrants ............................................................................................ 33

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2.3.2.2.Bargaining power of buyers ..................................................................................... 33

2.3.2.3.Bargaining power of suppliers ................................................................................. 34

2.3.2.4.Threat of substitute products .................................................................................... 34

2.3.2.5.Intensity rivalry among competitors ........................................................................ 34

2.4.SWOT Analysis .................................................................................................................... 35 2.5.Root Cause Analysis ............................................................................................................. 37

CHAPTER 3 BUSINESS SOLUTION ......................................................................................... 41 3.1.Alternative Business Solution.............................................................................................. 41 3.2 Analysis of Business Solution .............................................................................................. 42

3.2.1.Segmentation Targeting and Positioning .................................................................... 42 3.2.1.1.Segmentation ............................................................................................................ 42

3.2.1.2.Targeting .................................................................................................................. 43

3.2.1.3.Positioning ............................................................................................................... 45

3.2.2.Marketing Communication Strategy ........................................................................... 45 3.2.2.1.Product ..................................................................................................................... 45

3.2.2.2.Price ......................................................................................................................... 51

3.2.2.3.Promotion ................................................................................................................. 52

3.2.2.4.Placement ................................................................................................................. 56

3.2.3.Conclusion ...................................................................................................................... 56 CHAPTER 4 IMPLEMENTATION PLAN ................................................................................ 59

4.1.Proposal................................................................................................................................. 59

4.1.1.Proposal Concept .......................................................................................................... 59 4.2.Timeline................................................................................................................................. 63

4.3.Negotiation ............................................................................................................................ 64

REFERENCES ............................................................................................................................... 67 APPENDICES ................................................................................................................................ 70

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LIST OF FIGURES

Figure 1.1.Food Containing Textile Colorant ................................................................................ 1 Figure 1.2.Atmosphere during Merchants Added Textile Colorant in Food ............................. 2 Figure 1.3. Soil and Water Pollution .............................................................................................. 5 Figure 1.4.Red Cabbage .................................................................................................................. 7 Figure 1.5.Red Cabbage Powder .................................................................................................... 7 Figure 2.1.Conceptual Framework ............................................................................................... 10 Figure 2.2.Natural Colorant Powder from Red Cabbage .......................................................... 12 Figure 2.3.Red Cabbage Powder after Packaging ...................................................................... 13 Figure 2.4.Blind Test Result Chart ............................................................................................... 16 Figure 2.5.Atmosphere during Blind Test ................................................................................... 16

Figure 2.6.Bakery Industry Informants ....................................................................................... 19

Figure 2.7.Atmosphere during Depth Interview ......................................................................... 20

Figure 2.8.Atmosphere during Depth Interview ......................................................................... 22

Figure 2.9.GDP and Inflation ........................................................................................................ 30 Figure 2.10.Porters Five Forces Model ....................................................................................... 33

Figure 2.11.SWOT Analysis for Natural Colorant ..................................................................... 36 Figure 2.12.Root Cause Analysis .................................................................................................. 38 Figure 3.1 Illustrated of Alternatives Business Solution ............................................................ 41 Figure 3.2 Varieties of Natural Food Colorants .......................................................................... 46 Figure 3.3 Intellectual & Property Rights Consultant in Indonesia .......................................... 49 Figure 3.4. Halal and BPOM Certification Logo ........................................................................ 51

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LIST OF TABLE

Table 1.1.Indonesian Health Condition ......................................................................................... 2 Table 1.2.Food Color Additives ...................................................................................................... 3 Table 2.1.The Blind Test Sample .................................................................................................. 14 Table 2.2.The Blind Test Result .................................................................................................... 15

Table 2.3.Comparison Table between Natural Colorant and Artificial Colorant ................... 24

Table 2.4.Comparison Table between Red Cabbage Powder and Natural Colorant which Sold in Indonesia ................................................................................................................. 25 Table 2.5.Red Cabbage Powders COGS per 1 Bottle ................................................................ 26 Table 2.6.The Growth Number of Food Companies in Indonesia ............................................. 28 Table 2.7.Indonesian Economic Outlook 2012-2016 ................................................................... 31 Table 3.1.Segmentation .................................................................................................................. 43 Table 3.2.Targeting ........................................................................................................................ 44

Table 3.3.Patents Selling Price Formulation .............................................................................. 52 Table 4.1.Timeline .......................................................................................................................... 63

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LIST OF APPENDICES

Appendix 1A. 27 Brands of Food Colorants Listed at BPOM ................................................... 71 Appendix 1B. Red Colorants that Commonly Sold in the Market ............................................ 73 Appendix 2A. Production Process Diagram of Red Cabbage Powder ...................................... 75 Appendix 2B. Blind Test Form ..................................................................................................... 77

Appendix 2C. Guidance Depth Interview Form For Bakery Industry .................................... 79 Appendix 2D. Guidance Depth Interview Form For Customer ............................................... 83 Appendix 3A. The Patent Procedure ............................................................................................ 87

Appendix 3B. The Procedure for Certification ........................................................................... 89 Appendix 3C. The Procedure for Halal Certification ................................................................. 91

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