MARKETING STRATEGY FOR NATURAL FOOD COLORANT

POWDER

KRISTY PURWANI SYAILENDRA

NIM: 29111016

Master of Business Administration Program

School of Business and Management
Institut Teknologi Bandung

Approved,
Final Project Advisor:

___________________________
(Drs. Herry Hudrasyah, MA)
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MARKETING STRATEGY FOR NATURAL FOOD COLORANT POWDER

KRISTY PURWANI SYAILENDRA
NIM: 29111016
Date of Passing Final Examination: July 15th 2013
Date of Graduation Ceremony: October 18th 2013
Graduate Program, Institut Teknologi Bandung, 2013
Final Project Counselor: Drs. Herry Hudrasyah, MA
ABSTRACT
Trend of healthy lifestyle makes the food and beverages companies require the
development of their products to leading towards healthy products in order to
respond the needs of the market including natural food colorant. In 2011 author
has already done a research to make natural food colorant which is certainly safe
for human body. However, until now the author still do not know yet how to sell
these products in order to be able to enter the Indonesian market, and this
problem is become the business issue of this thesis.
In exploring the business issue of this thesis, there are some analysis conducted
which are company analysis, STP, marketing mix, the general environment, and
industry environment (Porter 5 Forces). These analyses generate 2 root causes
which are the product is not communicated yet to the consumers and the target of
selling the product is still unclear whether the author will sell products to the end
user or user industry.
The best business solution to address that root cause is by selling the product to
the industry user in the form of products making formulation. The products
making formulation will then be poured in the form of a patent. STP analysis is
required so that the plan of marketing communications can be right on target and
effective so the information can be well delivered. After making an analysis of
STP, the next step is formulate the marketing communication strategy of the
product. The communication method that will be conducted is by doing a
proposal presentation and also simulation products. Both of these communication
methods were chosen because it is considered to be the most effective in
informing the patent product formulation to the companies, because inside the
proposal is contained all information needed ranging from product information
until market research that support to convince the target company.
Once the proposal is accepted, furthermore will be conducted negotiation the
patents selling price through the purchasing & procurement department or
competent authorities in the company. The negotiation method used is by
outright sales. This method is expected by the author that the company will
quickly have this patent, and also can quickly produce the natural colorant in
large scale then sell directly to the Indonesian market.
Keywords: Marketing strategy, proposal, patent, natural colorant

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STRATEGI PEMASARAN BUBUK PEWARNA MAKANAN ALAMI

KRISTY PURWANI SYAILENDRA
NIM: 29111016
Tanggal Lulus Ujian Akhir: 15 Juli 2013
Tanggal Wisuda: 18 Oktober 2013
Program Pascasarjana, Institut Teknologi Bandung, 2013
Pembimbing Tugas Akhir: Drs. Herry Hudrasyah, MA

ABSTRAK
Trend gaya hidup sehat di Indonesia membuat perusahaan makanan dan
minuman membutuhkan pengembangan produk ke arah produk sehat agar dapat
menjawab kebutuhan masyarakat termasuk pewarna makanan alami. Pada tahun
2011 penulis sudah melakukan penelitian untuk membuat pewarna makanan
alami yang memang aman bagi tubuh manusia. Namun hingga saat ini penulis
masih belum mengetahui bagaimana cara menjual produk ini agar bisa masuk ke
pasar Indonesia, dan masalah ini menjadi isu bisnis di dalam tesis ini.
Dalam mengeksplorasi permasalahan di dalam tesis ini, dilakukan sejumlah
analisis seperti analisis perusahaan, STP, bauran pemasaran, lingkungan umum
dan lingkungan industri (Porter 5 Forces). Analsis ini menghasilkan 2 akar
permasalahan yaitu produk belum dikomunikasikan kepada konsumen dan yang
kedua adalah target penjualan produk masih belum jelas apakah akan dijual ke
konsumen langsung (end user) ataukah pelaku industri (industry user).
Solusi yang tepat untuk menjawab akar permasalahan adalah dengan menjual
produk ke pelaku industri dalam bentuk formulasi pembuatan produk. Formulasi
ini selanjutnya akan dituangkan dalam bentuk paten. Analisis STP sangatlah
diperlukan supaya rencana komunikasi pemasaran menjadi tepat sasaran dan
efektif. Setelah membuat analisis STP, langkah selanjutnya adalah membuat
strategi komunikasi pemasaran produk. Metode komunikasi yang akan dilakukan
adalah dengan melakukan presentasi proposal dan juga simulasi produk. Kedua
metode ini dipilih karenadianggap yang paling efektif dalam menginformasikan
produk kepada perusahaan karena di dalam proposal berisi semua informasi
yang dibutuhkan mulai dari informasi produk sampai riset pasar yang
mendukung untuk meyakinkan target perusahaan.
Setelah proposal diterima oleh target perusahaan, selanjutnya akan dilakukan
negosiasi tentang harga jual paten melalui departemen pembelian dan
pemeliharaan perusahaan. Metode negosiasi yang digunakan adalah dengan
cara jual putus. Metode ini diharapkan agar perusahaan bisa dengan cepat
memiliki paten ini, dan juga dapat cepat memproduksi pewarna alami secara
besar-besaran yang kemudian bisa langsung dijual ke pasar Indonesia.
Kata kunci: Strategi pemasaran, proposal, paten, pewarna alami

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PREFACE

Praise and gratitude author prayed to Allah SWT who has given His mercy and
grace, so that I can finish this thesis with the title Marketing Strategy for Natural
Food Colorant Powder. Author would like to express her greatest gratitude to Him,
as I have finished this thesis as my last task to fulfill my master degree of Master
Business Administration at Institut Teknologi Bandung in 2013, without His help
and His permission author will not be able to finish it all.
This thesis would not have been possible without many supports from many people,
therefore, authors thank profusely to:
1. Drs. Herry Hudrasyah, M.A., as the project councelor who has directing,
giving his ideas, and also guiding during the thesis writing.
2. Ir. Dr. Mustika S. Purwanegara, MSc., and Dr. Bambang Rudito, Msi. as the
examiners who have given a lot of direction and feedback to author.
3. Papa dan mama who already give all their never ending love, pray, and vigor
to author.
4. Novrizal Syailendra dan Adrian Novada Syailedra as auhtors siblings who
always supported and continues to motivate author to complete this thesis
5. Muhammad Idham Rizki, the beloved one, best friend and brother in the
same time that is always encouraging author to keep survive until our feet
have trod to His Jannah later.
6. Dikdik Dwiparandi, MBA, who already given his suggestion in the last
minute of the revision.
7. Ir. Bambang P. K. Bintoro, MBA., who already helped giving his time to
discuss with author.
8. All Informants for their participation which is willing to provide their
responds in blind test and depth interview.
9. Reza Ashari Nasution, Ph.D., as Head of Master Business Administration
Program, Institut Teknologi Bandung.
10. All lecturer in Master of Business Administration that give great experience
to author.
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11. MBA ITB friends fromyoung professional class batch 45, class A, B and C
for the encouragement and enthusiasm to immediately complete the study.
12. All staff and employee of MBA ITB who already helped author which can
not be mentioned one by one.
Finally the authors hope that it can provide benefits to all parties, for the common
reader and writer in particularly. If there are any suggestions, criticisms, and a
variety of information related to this thesis, I respectfully wish to send it to my email
kristypurwanisyailendra@gmail.com and I would be very pleased to the suggestions,
criticism and the information.

Bandung, June 2013

Author

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TABLE OF CONTENT

ABSTRACT ....................................................................................................................................... i
ABSTRAK......................................................................................................................................... iii
PREFACE ....................................................................................................................................... vii
TABLE OF CONTENT .................................................................................................................. ix
LIST OF FIGURES ........................................................................................................................ xi
LIST OF TABLE .......................................................................................................................... xiii
LIST OF APPENDICES ............................................................................................................... xv
CHAPTER 1 INTRODUCTION .................................................................................................... 1
1.1. Background ........................................................................................................................... 1
1.2. Industry Background ........................................................................................................... 6
1.3.Business Issue ......................................................................................................................... 8
1.4.Business Goals and Objectives .............................................................................................. 8
1.5.Research and Methodology Analysis .................................................................................... 8
CHAPTER 2 BUSINESS ISSUE EXPLORATION...................................................................... 9
2.1.Conceptual Framework ......................................................................................................... 9
2.2.Internal Factor Analysis ...................................................................................................... 11
2.2.1.Company Analysis......................................................................................................... 11
2.2.2.Segmentation Targeting Positioning............................................................................ 11
2.2.3.Marketing Mix............................................................................................................... 12
2.2.3.1.Product ..................................................................................................................... 12
2.2.3.2.Price ......................................................................................................................... 25
2.2.3.3.Placement ................................................................................................................. 27
2.2.3.4.Promotion ................................................................................................................. 27
2.3.External Factor Analysis ..................................................................................................... 28
2.3.1.The General Environment............................................................................................ 28
2.3.1.1.Demographic ............................................................................................................ 28
2.3.1.2.Economic ................................................................................................................. 30
2.3.1.3.Political/Legal .......................................................................................................... 31
2.3.1.4.Technological ........................................................................................................... 32
2.3.1.5.Sociocultural ............................................................................................................ 32
2.3.2.The Industry Environment (5 Porters Analysis)....................................................... 32
2.3.2.1.Threats of new entrants ............................................................................................ 33

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2.3.2.2.Bargaining power of buyers ..................................................................................... 33

2.3.2.3.Bargaining power of suppliers ................................................................................. 34
2.3.2.4.Threat of substitute products .................................................................................... 34
2.3.2.5.Intensity rivalry among competitors ........................................................................ 34
2.4.SWOT Analysis .................................................................................................................... 35
2.5.Root Cause Analysis............................................................................................................. 37
CHAPTER 3 BUSINESS SOLUTION ......................................................................................... 41
3.1.Alternative Business Solution.............................................................................................. 41
3.2 Analysis of Business Solution .............................................................................................. 42
3.2.1.Segmentation Targeting and Positioning .................................................................... 42
3.2.1.1.Segmentation ............................................................................................................ 42
3.2.1.2.Targeting .................................................................................................................. 43
3.2.1.3.Positioning ............................................................................................................... 45
3.2.2.Marketing Communication Strategy........................................................................... 45
3.2.2.1.Product ..................................................................................................................... 45
3.2.2.2.Price ......................................................................................................................... 51
3.2.2.3.Promotion ................................................................................................................. 52
3.2.2.4.Placement ................................................................................................................. 56
3.2.3.Conclusion...................................................................................................................... 56
CHAPTER 4 IMPLEMENTATION PLAN ................................................................................ 59
4.1.Proposal................................................................................................................................. 59
4.1.1.Proposal Concept .......................................................................................................... 59
4.2.Timeline................................................................................................................................. 63
4.3.Negotiation ............................................................................................................................ 64
REFERENCES ............................................................................................................................... 67
APPENDICES ................................................................................................................................ 70

LIST OF FIGURES

Figure 1.1.Food Containing Textile Colorant................................................................................ 1

Figure 1.2.Atmosphere during Merchants Added Textile Colorant in Food ............................. 2
Figure 1.3. Soil and Water Pollution .............................................................................................. 5
Figure 1.4.Red Cabbage .................................................................................................................. 7
Figure 1.5.Red Cabbage Powder .................................................................................................... 7
Figure 2.1.Conceptual Framework............................................................................................... 10
Figure 2.2.Natural Colorant Powder from Red Cabbage .......................................................... 12
Figure 2.3.Red Cabbage Powder after Packaging ...................................................................... 13
Figure 2.4.Blind Test Result Chart............................................................................................... 16
Figure 2.5.Atmosphere during Blind Test ................................................................................... 16
Figure 2.6.Bakery Industry Informants ....................................................................................... 19
Figure 2.7.Atmosphere during Depth Interview ......................................................................... 20
Figure 2.8.Atmosphere during Depth Interview ......................................................................... 22
Figure 2.9.GDP and Inflation........................................................................................................ 30
Figure 2.10.Porters Five Forces Model ....................................................................................... 33
Figure 2.11.SWOT Analysis for Natural Colorant ..................................................................... 36
Figure 2.12.Root Cause Analysis .................................................................................................. 38
Figure 3.1 Illustrated of Alternatives Business Solution ............................................................ 41
Figure 3.2 Varieties of Natural Food Colorants .......................................................................... 46
Figure 3.3 Intellectual & Property Rights Consultant in Indonesia.......................................... 49
Figure 3.4. Halal and BPOM Certification Logo ........................................................................ 51

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LIST OF TABLE

Table 1.1.Indonesian Health Condition ......................................................................................... 2

Table 1.2.Food Color Additives ...................................................................................................... 3
Table 2.1.The Blind Test Sample .................................................................................................. 14
Table 2.2.The Blind Test Result .................................................................................................... 15
Table 2.3.Comparison Table between Natural Colorant and Artificial Colorant ................... 24
Table 2.4.Comparison Table between Red Cabbage Powder and Natural Colorant
which Sold in Indonesia ................................................................................................................. 25
Table 2.5.Red Cabbage Powders COGS per 1 Bottle ................................................................ 26
Table 2.6.The Growth Number of Food Companies in Indonesia ............................................. 28
Table 2.7.Indonesian Economic Outlook 2012-2016 ................................................................... 31
Table 3.1.Segmentation.................................................................................................................. 43
Table 3.2.Targeting ........................................................................................................................ 44
Table 3.3.Patents Selling Price Formulation .............................................................................. 52
Table 4.1.Timeline .......................................................................................................................... 63

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LIST OF APPENDICES

Appendix 1A. 27 Brands of Food Colorants Listed at BPOM ................................................... 71

Appendix 1B. Red Colorants that Commonly Sold in the Market ............................................ 73
Appendix 2A. Production Process Diagram of Red Cabbage Powder ...................................... 75
Appendix 2B. Blind Test Form ..................................................................................................... 77
Appendix 2C. Guidance Depth Interview Form For Bakery Industry .................................... 79
Appendix 2D. Guidance Depth Interview Form For Customer ............................................... 83
Appendix 3A. The Patent Procedure ............................................................................................ 87
Appendix 3B. The Procedure for Certification ........................................................................... 89
Appendix 3C. The Procedure for Halal Certification ................................................................. 91

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