Professional Documents
Culture Documents
Throughout the 1980s, the company expanded its line traditional cosmetics
(facial care & decorative makeup, hair and body care product) and the established
itself as the uncontested market leader by 1998, four out of every 10 cosmetic
products sold in Indonesia were Mustika Ratu brands. Positioned as competitively
priced, quality products formulated specifically for Indonesian skin. Company
literature reinforced that its products were natural and integrated timeless
Indonesian beliefs of the health and beauty properties of local plants and herbs.
Mustika Ratus Jamus appealed to several market segments.
Over the years, Mustika Ratu had developed its own well-established and
highly organized distribution system, controlled through a recently installed
information technology (IT) control system. The application of improved IT control
systems ensured a higher level of service and more efficient delivery schedules as
well as more accurate and timely consumer information. IT system was also
installed due to the the challenges posed by Indonesians geography, which is
Indonesias area is so vast. Another significant challenge in distribution in Indonesia
was the highly fragmented nature of the retail industry thousands of small outlets
and roadside stalls accounted for a significant percentage of Indonesias retail
activity. Mustika Ratu used all of kind distribution channel to market their extensive
product lines.
Since 1992, Mustika Ratu had concetrated on intensifying their departement store
distribution channel. Another key strategy was to increase of distribution channels
perviously managed by third parties in their most densely populated and lucrative
markets. The establishment of Mustika Ratu-owned and operated distribution
systems resulted in an average of two and one-half percent increase in Mustika
Ratus operating margins. Delivery time was also shortened, and quality of service
provided to retail outlets was enhanced. Company also changed its accounts
receivable policy, shortening the due period from 90 days to 30 days. Namely it
drecreased lead times and resulted to smaller order lots. According to Sayuti on the
reading text, the companys distributors were his eyes and ears monitoring
customer opinion and relaying vital market information to the corporate marketing
department.
Malaysia :
Philippines :
- Mustika Ratu had opened 14 House of Mustika Ratu outlets in United Arab
Emirates, Saudi Arabia, and Egypt.
- Target Market : Brand with in developing natural products that adhered to the
Muslim Halal standards products made with no animal fat and that had
never been tested on animals.
Other Countries :
- The another countries was : Hong Kong and Holland (Mail order
distribution channel)
South Africa, Canada, Australia, China, Japan,
Korea, Vietnam
Taiwan, and Thailand (Investigating Market)
Mustika Ratu had averted the misfortune in 1998 that had befallen
many of their competitors through cautious investment of the proceeds of
their IPO (much of which had not been used as originally planned), mostly in
short term deposits at foreign-owned banks.
Though many domestic competitors were faced with managing similar cost
increases, foreign competitors were expected to become an even more
significant threat. They were not exposed to the same increases. In addition,
with foreign-currency-dominated budgets, their marketing budget went a lot
further in Indonesia. However, the price of imported cosmetics had so far
risen in tandem with the devaluation of the rupiah.