Transcript
IV. The Marketing Plan
IV.1.
Economics
Indonesia is a big market market for pesticide products. The use of pesticide has increased increased with the expansion of modern farming in the country to increase productivity. productivity. The types of pesticide include insecticides, fungicides, rodenticide, herbicides, acaricides and bactericides. bactericides. There are currently local and multinational companies that competing in I ndonesia’s ndonesia’s pesticide market. market. Multinational companies companies as member Crop Crop ife Indonesia such as !yngenta, "ayer #grosciences, $u%ont #griculture %roduct, &ufarm Indonesia, "#!', 'MC, and $ow #gro !cience. #round () of the local companies are members of the #ssociation #ssociation of &ational %esticide %esticide Community *+M%&. *+M%&. The member of Crop ife ife dominate the market with a market share of -) percent with +M%& members having a /0 share, and 1/0 from companies outside of +M%& and Crop ife members. In )12)13, the value of pesticide business in Indonesia was estimated to reach up t o I$4 - trillion *5!$ /)) million. million. %esticide sale have have increased - percent per year year by value over the past five years, and trend to increase in line the agriculture practice in Indonesia. "ase on data from Ministry of #griculture, #griculture, there are ,-6 brands pesticide found in Indonesia. The main brands brands are insecticides with 776 items, items, followed by herbicide herbicide -6 items and fungicide ()/ items. items. The largest consumer consumer of pesticide in the country approximating approximating for (10 of the total domestic consumption, followed by oil palm plantation approximating for 60 and horticulture plants for 30. +erbicide have the largest share of pesticide market accounting (,/0, followed by insecticide according according for 36,/, fungicide 170 170 and other type for 0. +erbicide consumers consumers are mainly for the plantation sector and consumers of fungicide are mainly for food crop sector. %T &usa Mandiri 5tama *&M5 as new player in pesticide industry industr y in the country. 4ecently &M5 is focusing on plantation sector such as palm oil, rubber, and sugarcane. &M5 need growing as the oil palm sector has grown tremendously over the years, the oil palm sector will be &M5 top target. In )1/ &M5 will introduce to the retail market in horticulture and food crop segment because its biggest market market in pesticide about -)0 from total market. market. +owever by maintaining the plantation sector, &M5 estimating got )0 revenue from retail market.
IV. 2. Product ucts Currently &M5 have seven brands registered at #griculture Ministry such as herbicide and insecticide type. type. The active ingredient ingredient of herbicide herbicide are gliphosate, gliphosate, para8uat, para8uat, triklopir, triklopir, diuron, metil metsulfuron, and ,(2$ amine and carbofuran for insecticide. Target Target market of these products are plantation segment. +erbicide consumers are mainly for the plantation sector. sector. 9liphosate and para8uat para8uat are biggest market market in plantation. 5nfortunately, most of pesticide companies already have a gliphosate and para8uat, also ,(2$ amine, metal metsulfuron. metsulfuron. These products are has been been :generic product;. The second target &M5 business is completely the product portfolio by registering products to introduced retail market in )1/. The products will select and should have a large market share, has a good margin, margin, and in accordance with market market needs. In another side &M5 will will 1
develop a competitive advantage not or products. %lantation companies can buy directly to &M5 through direct purchase or a tender mechanism. !everal government companies such as %T%& and private companies that have a large plantation area usually perform with tenders in procurement pesticide products.
IV.!. om"etition The pesticide industry is highly fragmented and very competitive between multinational company with national companies and between national companies. Currently, approximately more than 1)) companies as owner registration product in the Ministry of #griculture. Multinational company was leading in marketing and promotion activities because they have advantages by :patent product; and marketing cost. They product was setting in premium price with excellent service and distribution. In the other side, national companies no more advantage in the product and marketing cost. This situation makes the price war between the national companies. #s national company &M5 will head to head competition with multinational companies, which have modern production facility, patent products, skilled human resources, massive marketing campaign, etc.
Table 1? Competitive #nalysis #naly=e each maor label expansion, research and development activities, and demo plot trial. Market development budget is using for promotion activities, advertising, exhibitions, marketing tools material, and sales incentives. !ales incentives budget for retailer about 1/0 from revenue *5!$ (,7 million are using for agent and retailer reward, bonuses, and other incentives. Bhereas corporate incentive about 0 from revenue *5!$ ,( million.
I. -. (. %ricing &M5 products have premium 8uality with price setting policy prices by /0 below the market leader products. The determination of this price in order to attract market leader customer
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and to avoid a price war with below segment products. They are still got the good 8uality product with price competitive. I. -. (. ocation &M5 has representatives in every province across the Indonesian province. Each province will be handling by a Territory Manager *TM and coordinated by 4egional !ales Manager *4!M and 4!M as sub ordinate &ational !ales Manager *!&M. TM as &M5 representative in the territory.
I. -. /. $istribution Channels &M5 using distributors *dealer and plantation companies *corporation as distribution channel. The distributors are the direct buyer from &M5, which distributed to maor kiosk *43 then product will delivered to the end user as free market. $istributor as the first channel in the retailer market, and also can selling product through the plantation if they appointed as exclusive distributor.
I. -. -. !ales 'orecast &M5 !ales forecast for )1(2)1- per segment are as below? !egments Corporate 4etailer Total
)1( *5!$ /./7.-G 1)) 0 /./7.-G
)1/ *5!$ 1).G-(.6G3 6G0
)1- *5!$ 1).63-.1-G 6G0
6.)).))) 13).1-(.6G3
3.-().))) 1/3.36-.1-G
10
10
#s seen in the table above, approximate 6G0 from &M5 sales revenue will come from the plantation segment *corporate and 10 from the retailer segment.
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