Utilization of Spirulina Algae Extract as an Enhancer Protein Source in Milk for Pregnant

Women’s Nutrition by Recommendation Quality and Decision Strategies on Consumer

Choice

Written by :

Leader :

(1) Syaiful Bahri, ( Passport No. A 0545754 ) Germany

Members :

(2) Gunawan Wibisono, ( Passport No. A 1817533 ) Germany

(3) Dian Hidayat, Indonesia

(4) M. Abdul Rohman, Indonesia

(5) Tesar Handrean, ( Passport No. A 5229096 ) Germany

(6) Acotsca Pratama ( Passport No. A 0493097 ) Germany

(7) Nurul Wasilah , Indonesia

(8) Hidayatullah Indonesia

(9) Nadia Listiyandra Maghfiroh, Indonesia

(10) Wiro Andika, Indonesia

CONTAIN

TITLE ………………………………………………………………………………………………………………………….1

CONTAIN …………………………………………………………………………………………………………….……….. 2

1. Business description…………………………………………………………..... ..………... 3

1.1 Background and history of the business……………………………………..………..3

1.2 Aims and goal………………………………………………………………...………..3

1.3 List out the product and service description………………………………….………..3

1.4 What is Spirulina sp.?.......................................................................................………..4

1.5 What kind of vital nutrients is needed for pregnant women?...........................………..4

1.6 How is the effect of Spirulina Milk for pregnant women?...............................………..4

1.7 How to make Spirulina as an enhancer protein in milk for pregnant women?.………..4

2. Procedures of Clinical Trials Algae’s Protein……………………………………………....5

2.1 Method of Clinical Trials ………………………………………..…………...………..5

2.2 Method of effectiveness Trials ………………………...……………………..………..6

3. Business Opportunities…………………………………………………………… ………..7

3.1 Targeted Customer ……………………………………………………………………..7

3.2 Proposed Geographical area and Business Competitors……………………....………..7

4. Marketing Strategy ………………………………………………………………..……….. 8

4.1 Costing and Pricing ……………………………………………………………………8

4. 1. 1 Break Even............................................................................................................8

4. 1. 2 Target rate of return...............................................................................................8

4. 1. 3 Return on Investment……………………………………………………………8

4. 2 Marketing Plan………………………………………………………………………..9

5. Business Operation………………………………………………………………………….10

5.1 Operational Function..............................................................……………………….....10

5.2 Services Offered………………………………………………………………………...11

5.3 Personel ………………….……………………………………………………………..11

6. Finances and feasibility study………………………………………………………………14

6.1 Expenses………………………………………………………………………………...14

6.2 Revenue ……………………………………………………………………………….. 16

6.3 Financial Projection……………………………………………………………………. 17

6.4 Conclusion………………………………………………………………………………18

7. Appendix……………………………………………………………………………………19

7.1 References........................................................................................................................19

1. Business Description :

1.1 Background and History of the business

There are four nutrition problems in Indonesia, those are malnutrition, iodium deficiency problems,

vitamin A deficiency, iron deficiency anemia. In Indonesia has lot of malnutrition cases mainly caused by

lacking intake of nutrition (energy and protein), so substance that body needs is insufficient. More than two

third of infants mortality rate is Low Birth Weight Infant, less than 2500 grams. Globally estimated, 25

millions delivery per year, where 17% is Low Birth Weight Infants and almost all happen in developing

country . Indonesia as the third position for Maternal mortality trends ASEAN countries 2010 [Fig.1].

There’re cities in East Indonesia which have highest risk prevalence of malnutrition, that’s Papua with

reaches 23.1%, West Papua 19.6%, and Moluccas about 15,1% [Fig.2]. (basic health research: 2007)

1.2 Business aims and goals

When pregnant women consume spirulina milk regularly, a fetus will gain a higher protein intake. The

protein function for the fetus is as builder substance or forming and fixing body tissues such as muscles,

bones, eyes, skin, heart and liver. Protein intake deficiency takes a risk to make a smaller baby and to face

problems such as cleft lip or other physical abnormalities. Therefore, spirulina milk-consumed is very good

for pregnant women.

1.3 List of the Product or Service

In general, the protein source is divided into two, those are animals and vegetables. Animal protein has

found in foods of animal origin such as meats, eggs and etc. While vegetable proteins derived from plants,

abundant in legumes (tempeh). Protein in milk is necessary for the health of pregnant women and infants.

One of protein sources that can be consumed by pregnant women is a protein derived from spirulina

microalgae. For pregnant women, the elements required protein is about 60 grams per day. Spirulina has a

twice higher protein content than soy or other milk powder [Fig.3]. Protein content in soybean reaches 40.4

grams, while it’s twice in spirulina. It is about 80 grams. Protein intake from spirulina can fulfill protein

requirements of pregnant women for the fetus development. The milk-manufactured process is done

through quality testing, filtering or purification, pasteurization, evaporation, mixing, homogenizing, and

draining. Spirulina microalgae isolates are obtained from the environment then be isolated. First, the

obtained Isolates must be extracted by percolation method that will produce green oil. Protein extracts of

microalgae Spirulina is added during the mixing stage of the milk process

1.4 What is Spirulina sp.?

Spirulina sp. [Fig.4] is a kind of uniceluller microalgae, plant-like organisms is founded in fresh water

as well in salt water. It has been classified as microscopic filamentous cyanobacterium also known as

“blue-green algae”. About 70% of its whole body content consist of protein, a fairly high protein content

compared with any other protein sources. Protein content per 100 grams of dried spirulina sp. is 57.5 %

that would be enough amount of extra protein required by pregnant women than they did before

pregnancy. It also contents great amount of vitamin B 12. Concerning to its habitats, these blue-green

microalgae life widespread in all ecosystems. [Yudiati, Ervia, et al. 2011. Antioxidant Activity and

Toxicity Methanol Extracts and Crude Pigments Spirulina sp. Vol. 16 (4) 187-192. Semarang].

1.5 What kind of vital nutrients is needed for pregnant women?

Nutrients such as protein, calcium, iron, and folic acid are vitally needed during pregnancy. Anyhow,

proteins are foundation substance of body tissues such as muscles, eyes, epithelial tissues, skin, and any

other organs. In this case, pregnant women will need much more protein to maintenance growth of the

fetus on their carry. The fetus will keep growing bigger until it’s ready to be born. Protein intake

deficiency takes risk to face many physical abnormalities for the baby. [Zaenab, R., Joeharno. , 2008

Several Risk Factors The incidence of LBW in the Al-Fatah hospital Ambon period of January to

December of 2006 Available from: http: ///weight-body-low-birth-bblr.html]

1.6 How is the effect of Spirulina Milk for pregnant women?

When pregnant women consume Spirulina milk regularly, fetus will gain a higher protein intake.

They also reduce the possibilities of calcium deficiency, in other words, the nutrients that needed are

included in the milk. Fetus will grow healthy and the forming of body tissues and or organs continues.

Therefore, Spirulina milk consumption is very good for pregnant women.

1.7 How to make Spirulina as an enhancer protein in milk for pregnant women?

Protein from Spirulina sp. will be extracted and along with the process of Milk Processing [Fig.5], the

extracted protein will have to be injected and mixed with milk. We obtain Spirulina milk at the end of the

process. [Ward, the Supreme Faithful. 2012 Milk Processing Technology. Surakarta: Slamet Riyadi

University]

2. Procedures of Clinical Trials Algae’s Protein

2.1 Method of Clinical Trials

The analysis of proteins have 2 methods, that qualitative and quantitative. Qualitative analysis has

Xantoprotein reaction, Hopkins-Cole reaction, Millon reaction, Nitroprusida reaction, and Sakaguchi

reaction. While the Quantitative analysis has Kjeldahl method, titration formol, Lowry method, visible

spektrofotometry (Biuret), and UV spektrofotometry (Apriyantono et.al 1989).

Lowry method is the development of Biuret method. This method has 2 reactions. First, Complex of

Cu(II)-protein will be made like biuret method, which in alkalis Cu(II) reduced to Cu(I). Cu+ reducing

Folin-Ciocalteu reagent, complex of phosphotungstat produce heteropoly-molybdenum blue because

oxidation reaction the aromatic by catalysis of Cu which give Intensif blue colour in order to detected

with kolorimetri. The power of blue colour based on residues of tryptophan and tyrosine. The advantage

this method is more sensitive ( 100 times) than Biuret method so needs few sample of protein. The

detection limits approximately at concentration 0.01 mg/mL but this method has much interference

because the sensitivity (Lowry et.al 1951).

Standard curve for Concentartion from 100mcg/ml

– 600mcg/ml

sample x, y and z( 0,6 ml )

Added 3 ml reagent C and waiting for

15 minutes at room temperature

Added 0,3ml reagent E

Incubated for 15 minutes at room

temperature2nd Incubated

doing the standard curve like a sample

Blank

measuring absorbance of mix at wave number 500 nm by spektrofotometer

visible

Calculate the concentration of

protein

2.2 Method of effectiveness Trials

In 1st step we analysis protein in laboratory, it means to measure the concentration which contained

in products ( Algae’s milk ). The products which has high of protein concentration be able to produce and

analysis to animals for the reaction of proteins in the body before it’s consumed by the human especially for

pregnant women if this reaction has a positif result such like animal become healthy after thi case, it means

indicators has the product become effective for pregnant women, before the product is consumed by

pregnant women, the product must be improved the system of productions to increasing ammount of protein

in spirulina milks. Next test to pregnant women from 1st , 2nd and 3th period of the months. It will show the

effectiveness of protein for pregnant women. If the pregnant women in healthy condition and has more

power than before consumed Spirulina milks. Based on their reports and then we have to evaluation for the

data, it means the objectives has been metabolism of the pregnant period. The final test is repeatedly the

previous test. this test might be worked with the sample more than previous test after that the products will

be produced and distributed to market.

2nd Step : Test to animal.

3rd Step : Test to pregnant women from 1st ,2nd and 3rd

period of the Months.

4th Step : Evaluation of the data

1st step : Laboratory test Algae ( Protein ).

5th Step : Test to pregnant women from 1st , 2nd and 3rd

period of the months.But we give more than previous

test ( 3rd Step )

6th Step : Recommendation quality

and promote

3. Business Opportunities :

3.1 Targeted Customer

An issue for further research is the inclusion of consumer's trust in the study . Trust is likely to be

closely related to the perception of the quality of the agent as well as to the use of it . in addition , we

have not included consumer expectations of the recommendation agent in our study . Another issue for

further research concerns consumer preferences, which may not be well - defined and easily influenced

( constructive preferences ) . The decision environment may therefore be perceived as it is , yielding no

differences in effort and accuracy perceptions.

3.2 Proposed Geographical area and Business Competitors

Especially eastern part of Indonesia is facing this case. Based on the research the Health of Minister

Depertement 2007 be discovered Chronic Malnutrition risk prevalence of 15-45 years old of Female

Population by Province, Basic Health Research 2007. There’re cities in East Indonesia that have the

highest risk prevalence of malnutrition, that’s Papua which reaches 23.1%, West Papua 19.6%, and

Moluccas about 15,1% [Fig.2]. From all these reasons we focus on the proposed geographical or our

special objective costumer in the eastern part of Indonesia.

4. Marketing Strategy :

4. 1 Costing and Pricing

4. 1. 1 Break Even

Sales quantity ( in units ) to break even

4. 1. 2 Target rate of return

A more likely financial goal than break – even is a target rate of return on investment. This rate,

which our study must select as part of is the pricing policy, is multiplied by the investment involved and

entered into the break – even formula above as part of fixed costs .

4. 1. 3 Return on Investment

The point of view of financial analysis , a rate of return is specific to a definite time period for 5

years .The more times our study uses its investment during a year , the higher the rate of return .

( $ 195.000 - $ 80.411.67) = $ 114.588.33

$ 114.588.33=

$ 80.411,67

Product total profit = Product total revenue – Product total cost

¿CostsPrice−Variable costs

(Product total revenue−Investation)Investation x100 %

= $ 142.502.144

4. 2 Marketing Plan

We started with list of data items for our business plan. it was extended and refined according to

statements on open ended questions of human resource management . The objective of this study was to

develop a method , which consists from technological development , to identify decision strategies . The

two existing methods for strategy identification have clear limitations. We focused on the development

of new method to identify decision strategy in an environment like the recommended . This study

emerged from the sales service whether recommendation agents can affect decision strategy usage . The

decision strategy is an important element in decision making as it .

Marketing and sales

Outbond logistics

Operations

Inbound logistics

After-sales Service

Technological developmentHuman resource management

Firm infrastructureProcurement

(Figure 6: The value chain, by John Sloman “Economics and The Business Environment” ).

5. Business Operation

5.1 Operational Function

Operating functions is performed according standard concept 5 services of satisfaction from spirulina

to customers that will be divided into:

1. The first peority ingredient is the best algae for manufacturing process of spirulina.

2. Spirulina with best processing dairy products and has been legalized through a standard system by

central government attention to hygiene and support all aspects of dairy products spirulina as well.

3. The best spirulina dairy products previous standards is checked two times for prior product to sell,

the goal of maintaining the integrity of product is no damage in the packaging of dairy products

spirulina.

4. Shipment spirulina dairy products to be applied fast and effective way for customer’s satisfaction

with service delivery, it means without damage and disadvantage both of parties.

5. Treating re-sorting system to dairy products before produce for customer, the last we give the best

quality from spirulina for satisfaction’s costumer.

Clinical Trials&

Efectiveness

Packaging+

Market on target

Spirulina Select the best AlgaeProcessing

dairy products

Product (Milk)

Marketing Strategy

5.2 Services Offered

In providing services to consumers will be maintained and care as well as possible. Consumers are

the most important thing and served by providing services through a call center or comments and

suggestions via e-mail or directly to company. In the provision of these services is intended to provide

a full service of advice and development as well as the quality of dairy products spirulina is to make

criticisms and suggestions from consumers. To increase the enthusiastic customers of our products is

to provide tactical price as the price lining, cash discounts, and other ways, which will have a positive

impact on consumer linkages to dairy products spirulina, aims to enhance customer satisfaction to

dairy products spirulina.

5.3 Personel

In personnel issues that would explain the operation of the business of dairy products spirulina, how

we do our best to manufacture and sale of dairy products for customers spirulina. Both standard and

using the best policy to dairy spirulina and customers. All aspects of benefits are the best. Both in

terms of product, service and pricing policies. System and the policy will support the customer

satisfaction of spirulina dairy products, as well as maintaining the quality of the goods to be provided.

PromoteRecommendation Quality

Name Position Responsibilities Salary Syaiful Bahri* CEO Responsible for the success or

failure of the company. Operations, marketing, strategy, financing, creation of company culture, human resources, hiring, firing, compliance with safety regulations, sales, PR, etc.

$ 666.67

Dian Hidayat (Leader) * Social Innovation About the safety and health professionals who inspect and supervise workplaces to ensure that workers and the public are protected from dangerous or unsafe conditions

$ 250

Tesar Handrean* Personal Hygiene Food handlers have an overall responsibility for doing whatever is reasonable to make sure that they do not make food unsafe or unsuitable for people to eat. Food handlers also have specific responsibilities related to their health and hygiene.

$ 208.33

Nurul Wasilah* Healthcare Giving the products to patientsTaking patients from their ward to consultations and back againDistributing post throughout the hospitalTaking samples to laboratories

$ 208.33

Muhammad Abdul(Leader) *

Accounting Prepares asset, liability, and capital account entries by compiling and analyzing account information.Summarizes current financial status by collecting information; preparing balance sheet, profit and loss statement, and other reports.

$ 250

Hida yatullah (Leader)* Financial Sustainability The most common function of the finance department comprises the documentation and the controlling of incoming and outgoing cash flows as well as the actual handling of the cash flows.

$ 250

Gunawan Wibisono (Leader)*

Business Operation Department

A marketing department interacts with people on all sides of a business, from top-level management to end-users

$ 250

Acotsca Pratama* Supervisor Production Accomplishes manufacturing staff results by communicating job expectations, appraising job results and disciplining employees

$ 208.33

Nadia* Supervisor QC Quality control specialists work in a wide variety of industries like automobile manufacturing to food production.

$ 208.33

Wiro Andika* Supervisor Marketing Write and present press releases to enhance awareness of store events, external event sponsorships and strategic partnerships.

$208.33

6. Finances and feasibility study

6.1 Expenses

Fixed Cost

Number Total Depreciation

of Units Price (Per Year)

1 Vehiclea. Car pick-up 2 9.429,17USD 18.858,33USD 8 1.666,67USD 138,89USD b. Motorcycle 2 1.083,33USD 2.166,67USD 5 333,33USD 27,78USD

2 Machinery and Equipment Supportb. Milk Maker 3 1.208,33USD 3.625,00USD 4 718,75USD 59,90USD c. Freezer 3 250,00USD 750,00USD 4 156,25USD 13,02USD d. 2 Nozzle Filling Machine 4 5.416,67USD 21.666,67USD 8 2.291,67USD 190,97USD

3 Inventory 17 166,67USD 2.833,33USD 4 602,08USD 50,17USD

4 Support Equipmentb. Scissors 15 0,50USD 7,50USD 2 3,75USD 0,31USD c. Bin 20 2,50USD 50,00USD 2 25,00USD 2,08USD d. Basket 30 1,25USD 37,50USD 2 18,75USD 1,56USD

5 Cost of Building Rental Operations 10.000,00USD 10.000,00USD 1 10.000,00USD 833,33USD

59.995,00USD 15.816,25USD 1.318,02USD

The Lifetime of Monthly

Total Fixed Costs

No Description Price

Variable Costs

Others Costs

Total Cost of Business

¿CostsPrice−Variable costs

Sales quantity ( in units ) to break even

$ 15.816,24$ 0,54−($ 89.002,38: 360.000/bottle)

=$54.022,03

6.2 Revenue

Product total profit = $ 195.000,00 – $ 89.002,38

= $ 105.999

6.3 Financial Projection

Product total profit = Product total revenue – Product total cost

6.4 Conclusion

No Product Protein Substance Price Comparation

1 Spirulina Milk 60% - 70% $ 0,54/bottle 1 bottle = $ 0,54

2Ordinary Pregnancy

Milks 13% $ 7,40 / 5 servings 1 serving = $ 1,48

(Comparation of Spirulina protein among others, [Fig. 3])

7. Appendix

There is a relationship between knowledge with attitudes and respondents action toward dairy products Spirulina sp.

Respondents with a better level of knowledge about the potential of Spirulina sp. for maternal health have a positive attitude and actions towards dairy products of Spirulina sp.

Spirulina sp. can be one of the potential solution to overcome the problems of maternal mortality rate (MMR) in Indonesia, particularly in eastern Indonesia.

7.1 References

[1] Zaenab, R., Joeharno. 2008. Several Risk Factors Incidence of Low Birth Weight Infants in Al-Fatah

Hospital Ambon During January – December 2006. Available from: Http://berat-badan-lahir-rendah–

bblr.html

[2] Yosta, E, et al. 2010. Algae Oil Extraction from Spirulina Sp. New Discourse of Raw Material

Alternative on Biodiesel Production Process. Surabaya: Surabaya Institute of Technology

[3] Wardana, Agung Setia. 2012. Milk Processing Technology. Surakarta: Slamet Riyadi University

[4] Vroomen, Björn. 2006. The Effect of the Internet, Recommendation Quality and Decision Strategies on

Consumer Choice. Rotterdam: Erasmus Universität Rotterdam.

[5] Apriyantono et.al 1989. Manual analysis of the food laboratory. IPB Bogor.

[6] Lowry O H, Rosebrough N J, Farr A L & Randall R J. Protein Measurement with the Folin phenol

reagnt. J. Biol. Chem. 193:265, 1951.

[7] Bradley, Frank. 1995. Marketing Management. Dublin: University College.

[8] Sloman, John. 2008. Economics and The Business Environment, second edition. Available from :

www.pearsoned.co.uk.

7.2 Attachment

Fig 1 (Source : UN Martenal Mortality Estimation Group: WHO, UNICEF, UNFPA, WORLD BANK , 2010)

East N

usa T

engg

ara

Papua

Yogyak

arta

Wes

t Pap

ua

Center

Java

Jakar

ta

East J

ava

Molucc

as

South

East S

ulawes

i

South

Born

eo05

1015202530

of Female Population by Province, Basic Health Research 2007)

Types of Food Protein Content

Spirulina 60-70%Meat and fish 15-25%Chicken 24%Soybean 35%Milk powder 35%Legumes 25%

Egg 12%Cereals 14-18%Milk in general 3%

Fig 3: Comparation of Spirulina protein among others ( Yosta, E, et al. 2010. Algae Oil Extraction from Spirulina ) Fig 3 : blokosutho.blogspot.com

100 grams of soy milk contains 23 grams of protein

100 grams of tempeh contains 41 grams of protein

100 grams of cow's milk contains 3.2 grams of protein

Pregnant women need protein intake around 55-60 grams per day

NOT ENOUGH

Fig 2: (Chronic Malnutrition risk prevalence of 15-45 years old

Fig 4, Source : Crude Pigments Spirulina sp. Vol. 16 (4) 187-192. Semarang

(www.mesin-raya.com )Fig 5: The Spirulina milk-manufactured process passes through a series of stages from quality testing,

filtering or purification, pasteurization, evaporation, mixing, homogenizing, and draining. (www.mesin-raya.com )