Panjaitan, Hisar Mariono and Wijaya, Hadie and Herawaty and Pahala, Reza and Harapan M, Tonny and Sinaga, Xaverius (2008) Route to Local Market for "Teh Saring". Project Report. Sekolah Tinggi Manajemen IPMI, Jakarta Selatan. (Submitted)

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Abstract

PT.Sariwangi AEA (hereinafter referred to as SAEA) was founded by Mr. Johan Alexander Supit and was started the production in 12 February 1973. SAEA is the reputable company which is in the top 4 as tea producer which production capacity of 12.5 thousand tons after PTPN VIII who is the biggest tea producer with 67.8 thousand tons, PT. Unilever Indonesia Tbk with 23 thousand tons and PTPN IV with 21 thousand tons. The bigger business of SAEA is exporting processed non-branded or custorner tea brands base to overseas such as to the United States, Russia England, Australia, middle east countries like Iraq and other countries. Besides that SAEA also serves the domestic market. The tea market was valued at IDR 8.7 trillion in year 2006, in total annual tea market volume in Indonesia was 63.7 thousand tons. The market is estimated to be growing by 10.3% in the next five years and can be reached IDR 9.7 trillion in year 2011, in volume estimated to be reached 68 7 thousand tons. From the total market, green tea and black standard tea contribute around 65% of the market cast equivalent to IDR 5.6 trillion in 2006 and estimated to be growth by 12.5% ​​in the next five years or equivalent to IDR 6.3 trillion in year 2011. Considering tea market in Indonesia which will be continuously growing by around 10% in the next five years, SAEA sees an opportunity to compete with the existing players by strengthening it's export business and try to expand it's domestic market by penetrating the retail market. To gain the market share in indonesia's retail market, SAEA was introducing an innovative product concept called "Teh Saring", a brand with unique value propositions to customers. The objective of this paper is to propose the route to the retail market and distribution strategy for the company. We analyze the company's current strategy begin with analyzing the 4P's which are product, price, place and promotion strategy We got on overall picture regarding the company current strategy and achievement from interview and discussion with the President Director, General Manager of the company as well as the Sales and Marketing team of the company to get detailed information in terms of their current operations We also conducted a market survey in JABOTABEK via questionare to Warteg. Restaurants Restaurants house hold and catering companies Research market research data provided by research agencies, literatures and publications. From our study, despite the unique value propositions and innovative product concept of 'Teh Saring ', SAEA faces a serious challenge in penetrating the local market due to limitations in distribution network capability and other resources. Based on our analysis and in order for the company to succeed in penetrating the retail market in Indonesia we propose two alternative routes to the market for 'Teh Saring': 1. Appoint Multiple distributors 2. In House distribution. Targeted areas are sub urban and rural and focused on retailers, wholesalers, and local distributors. There is no doubt for PT. Sariwangi AEA to gain the retail market share in Indonesia if the company can select the right multiple distributors or establish in house distribution considering the company has a strong brand name and the unique and innovative product.

Item Type:	Monograph (Project Report)
Subjects:	H Social Sciences > H Social Sciences (General) H Social Sciences > HF Commerce
Divisions:	Library > GFP (Group Field Project)
Depositing User:	Putri Lumithasari
Date Deposited:	17 Jan 2020 05:19
Last Modified:	17 Jan 2020 05:19
URI:	http://repository.ipmi.ac.id/id/eprint/396

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