Brian Krista Sembiring

Timotheus Bryan
Ardian Prananto
Amalia Rusadi
Mrs. Martha Tilaar as the Chairman of PT. Sari Ayu
Indonesia.
Martha Tilaar Group focused on Cosmetic and Toiletries
business.

Martha Tilaar Group consists of :

 PT. Martina Berto (Manufacture, Marketing for Indonesia &
International Market)
 PT. SAI Indonesia (Distributor of Martha Tilaar Group
Cosmetic Products)
 PT. Martha Beauty Gallery (Beauty Counselling and
Educational Service)
 PT. Cantika Puspa Pesona (Local and International Franchise
management)
 PT. Creative Style Mandiri (Advertising Agency)
 PT. Kreasi Boga Primatama (Human Resources Agency)
 PT. Estrella Lab ( A licensing of Germany Henkel Cosmetic)
Mrs. Martha Tilaar as the Chairman of PT. Sari Ayu Indonesia.
Martha Tilaar Group focused on Cosmetic and Toiletries
business.

Martha Tilaar Group consists of :

 PT. Martina Berto (Marketing & Production)
 PT. Cedefindo (Production & Finishing)
 PT. SAI Indonesia (Distributor & Logistic)
 PT. Martha Beauty Gallery (School & Puspita Martha
International School beauty education)
 PT. Cantika Puspa Pesona (Spa & Salon Services and “Waralaba”
Business)
 PT. Creative Style Mandiri (Advertising Agency)
 PT. Kreasi Boga Primatama (Human Resource Supplier)
Unilever:
Pond’s Age Miracle

Procter & Gamble:

Regenerist from Oil of Olay

Avon Products, Inc.:

ANEW Ultimate

Oriflame:
Ecollagen
Group’s Research and Development (R&D) arm conducted by specialists such as:
 Dermatologists
 Pharmacologists
 Medical Anthropologists
 Horticulturalists
 Biologists

R&D Department divided into sections, such as:

 In-Vitro Laboratories
 Plant Research
 Safety & Efficiency
 Raw Material Appraisal

Research by R&D:
 Internal: Looking for potential new ingredients, developing ingredients & products by testing and
analyzing.
 External: Collaborating with other beauty institutions, either locally or globally.
Several Brand names under it’s flagship such as:
• Sariayu
• Belia ( For Teenagers)
• PAC ( For Professional makeup artist and limited communities)
• Biokos (Skincare for Women)
A Skincare for Women who are concerned about ageing and/or premature ageing in
terms of visible lines and wrinkles.
Biokos 3 sub-categories:
• Biokos Pure Balance (For women around their 20s)
• Biokos Vital Nutrition (For women around their 30s)
• Biokos Age Repair (For women around their 40s)
Strategic Movement:
• Mentioning the visible results after 1 month of use
• Positioning the new product as a premium product with brand-new
• Exclusive packaging (based on the results of FGD)
5 Phases of innovation process:
• Phase 0: Idea Generation
• Phase 1: FGD
• Phase 2: Research and Develop
• Phase 3: Testing
• Phase 4: Manufacturing
• Phase 5: Launching The Product To The Market
https://www.youtube.com/watch?v=0biNzL2mQQM
From the video, we learn that in Product development
there are steps to do things, from feasibility study,
marketing, purchasing, packaging, supply chain until it
reach to the factories to provide us the products to sell.
From the video, it shows us an example of an
international project from San Francisco for the
incubator team, manufactured in China and finally the
coordination team from Europe. It teaches us about
entrepreneurship that we must adapt to the evolving
market.
5 lessons:
• Formulation Development
• Package Selection
• Due Diligent Testing
• Stability Testing
• Microbiological Testing
Formulation Development: Martha Tilaar always design and developed all product
ranges by specialist with different fields of expertise, such as dermatologists,
pharmacologists, medical anthropologists, horticulturalists and biologists that
makes PT. Martino Berto received the Siddhakretya Technology Award for the
most innovative cosmetic and herbal industry category.

Package Selection: Martha Tilaar consider their package to increase brand image
as an international brand with a modern, exclusive and interesting look. A bottle
container and a pump and sprayer closure.

Due Diligent Testing, Stability Testing and Microbiological Testing: In these testing
have actually explained in Phase 3, in-vitro testing is conducted to determine
whether the formula is stable, safe and the possibility of color change once is
packed into jars. And then the formula is clinically tested to determine whether
the formula is safe to use, can deliver the stated claims and advantages and
rechecked before going to the manufacturing department.
 Formulation Development: KFC Recipes were made by Colonel Sanders himself only by a
handful from the kitchen ingredients that he learn from his mother. He then
 Package Selection: KFC’s packaging use 100% paper-based with fiber from responsible
managed forest and recycled source. They uniquely positioned to provide packaging to their
customers around the globe that reduces their impact on the environment.
 Due Diligent Testing, Stability Testing and Microbiological Testing: For fast food restaurant
such as KFC, they established a Hazard Analysis Critical Control Point (HACCP) as their main
program to identifying, evaluating and controlling hazards i.e. physical, biological and
chemical to ensure food safety. It is applied from receiving of raw materials at their
restaurant until serving to their customers. And lastly for KFC stability Testing, at every chain
restaurant in the world, every KFC restaurant need to be approved by the local ministry of
health such as BPOM in Indonesia, so the food is already tested and approved that it will not
harm consumers and already met their health standards.
Source : https://www.youtube.com/watch?v=Bo2bu3C6xW8

From the video, we can see the process of evolution of industrial

production. Starting from the first industrial revolution mechanized
production using water and steam, industry 2.0 introduced mass
production with the help of electrical power, industry 3.0 was the digital
revolution with the use of electronics and IT to automate production.
Today, in the fourth industrial revolution cyber-physical systems will
communicate with one another using the IoT. There are 5 radical
changes in the environment that require a different type of leadership,
that call leadership 4.0. Leadership 4.0 support young and dynamic
competition, by supporting to quickly entry the new competition; flatter
structures to free up decision making and keep communication flowing;
adopting new technological investment; optimize high connectivity using
internet as the communicatyion platform; places transparency in
communication.
The main difference among industries are in utilize the
resource and in adopting technology. Starting from fully
utilize human resource until fully utilize new technology

4.0
Everything
3.0 connected to
Computing & everything
2.0 Mass Automation
Production
1.0 Early use
of power
 Adopting cloud-based system and IoT to engage with their software applications to
optimize operational efficiency. Realize the potential of big data analytics, that can help
manufacturers identify critical failures before they occur.
 Consumer engagement through NFC-tag-based connectivity as a way of digitally
connecting brand with consumers.
 Pursuit of operational effectiveness, and overall equipment effectiveness (OEE) and the
ability to achieve mass customization at mass manufacturing prices because customers
are demanding higher levels of responsiveness, mass customization and product
availability, which increases pressure on inventory.
 Though reduction in total cost of ownership (TCO) and an increase in OEE by
eliminated downtime cost.
 Martha Tilaar machine must be modular, smart and fully connected, capable of
improving a manufacturing company’s packaging speed, and able to deliver
customised products and effective, scalable production by using new technologies
 New technology adopted for hygienic, fast and
automated in producing food
 Stay connected with customer by using application
centric concept to increase efficiency in utilize
resource.
 Process efficiency by developing agile system to speed
up the process
 Cost efficiency
 Big Data analytic to watch and create the new demand
to growing innovation of product
 Co-sourcing: A combine elements of consulting and outsourcing,
the provider would take line management responsibility. But there
would be no transfer of staff, instead, the provider team would work
alongside existing L’Oréal procurement staff.
 It could save a lot of money that benefits beyond simply lower
prices and reduces the company’s costs.
 Reducing management risks.
 An increased strong focus on team communication and motivation.
 A changes of roles that become more strategic, with greater
visibility at senior levels in the company.
 All of the 5 points are almost basically the same with Martha Tilaar, but what made
Martha Tilaar more visible is because that they have a several groups called
Martha Tilaar Group that each of them have a specific roles for them to cover it up
such as, PT. Martina Berto focusing on manufacturing and marketing, PT. SAI
Indonesia focusing on distribution and logistic.
 Martha Tilaar outsourcing partner is from PT. Kreasiboga Primatama to handle the
Human Resource supplier such as, human resource, cleaning sevice and laundry.
 For Martha Tilaar Consultant, it is by PricewaterhouseCoopers (PWC) to provide
the Annual Financial Statement.
 KFC have a contract of consultant with Earnst & Young to provide them with their
Annual Financial Statement. E&Y also will be the one that lead the Annual General
Meeting of Shareholders.
 For the outsourcing, PT. CTI that focused on the technology machinery such as
hardware and maintain technology infrastructure such as maintaining the server,
storage and security appliance.
CASE STUDY: PROBLEM 4 BY BRIAN SEMBIRING
Martha Tilaar sells their products directly to retailers through PT SAI Indonesia, which
is their distributor. They have intensive distribution throughout Indonesia.
Martha Tilaar Group uses transportation services provided by PT SAI Indonesia,
which is a distributor of Martha Tilaar Group, to move products from their company-
operated factories directly to their stand-alone stores and retail kiosks.
For online sales, Martha Tilaar Group uses shipping services at additional costs to
consumers.
Product Segmentation Martha Tilaar:
Skin Care, Body Care, Hair Care & Make Up
Age Segmentation:
Teenagers (15 years) to Mature ( >40 years)
Gender Segmentation:
Male and Female
Class/ Price Segmentation:
A (premium), B (upper middle),
C (middle), D (lower middle)
Psychology Segmentation:
(1) Natural & Eastern Image
(2) Modern Image
PT Martina Berto places its products in warehouses owned by PT SAI Indonesia. PT
SAI Indonesia owns and operates warehouses and is a distributor of Martha Tilaar
Group
Franchisor

Franchise

KFC
KFC sells semi-finished products directly to the restaurant directly, or to a restaurant
that has KFC franchise. KFC does not sell its products to retailers
From the farm the raw material for food will be brought using a truck to the place
where food will process. After processed semi-goods, food will be taken to a storage
area using a special truck that can maintain the temperature for the food. From the
storage to get to the restaurant use the same vehicle.
All forms of products that have been produced by KFC to be able to reach
consumers, KFC uses motorized vehicles such as 2-wheeled vehicles (delivery).
Geographic Segmentation:
KFC focuses how geographically its customers demand different product

Demographic Segmentation:
The market is divided into groups based on an age, gender, family size, income,
occupation, religion, race and nationality

Psychographic Segmentation:
The market divided into middle class & upper class
Raw materials will be managed in a special place, after being managed it will be
stored in a storage area that matches the type of food or drink, such as a refrigerator
(chicken, meat etc.), storage for dry food (bread, etc.).
Each restaurant also has a warehouse to store food items such as refrigerators, dry
food storage and so on.
PAC (Martha Tilaar):
A make-up product aimed at the
market for professional make-up
artists. Having a low market share
but a fairly high market growth
compared to other products.
Market share is still low because
many competitor products have
better branding strategies.

Martha Tilaar Day Spa:

A Day Spa service that serves
various types of services such as
scrubs, etc. Has a high market
share and is currently a Market
Leader in 2018.
Sari Ayu Skincare (Martha Tilaar):
A product line from Martha Tilaar for
various skin care. Has a high enough
market share, but the market growth is not
large enough. This is due to the arrival of
competitor products from abroad such as
Nature Republik (Korea), etc. which are
able to win Market share and have better
growth.
Sari Ayu Cosmetics (Martha Tilaar):
currently has a fairly high Market Share in
Indonesia, but the market growth is not
good, due to the presence of similar
competitors such as Wardah and similar
products that have a better marketing
strategy.
Botu-Like (Martha Tilaar):
Anti Aging Skin Care has a moderate
market share and less growth. This can be
caused by poor product marketing
strategies.
Oriflame Age Revive:
Anti Aging Skincare Product. Has a low
Market Share and Growth.
Avon:
Market Share is still low but has
moderate Market Growth in Indonesia.
Olay:
Anti Aging products have a high Market
Share and high Growth
Ponds:
This Unilever product has a high market
share and high growth.

Suggestions for Martha Tilaar:

restructuring marketing strategies and
product diversification that depend on
demand and trends in the market.