1.4.

Product Distribution
We saw from competitor and similar product that their market focus only in big cities thats
the whole region in Indonesia . We already decide before that our market is quite similar that is in
West, Middle, and East Indonesia especially area which is most likely will have upper-middle
people. Our antioxidation juice container products that have been packed will be proceed to the
stage of distribution. The important things about product distribution are product distribution
location, mode of transport, distribution time.
1.4.1. Product Distribution Location
We should consider the place to sell our product because its one of determining factors how
well our product will be sold. The selection criteria of right place to sell our product is who our
main target consumers are. The main target consumer of our antioxidation juice container product
is the upper middle class society that live in area thats most likely will have busy schedule and
have a healthy life style. People who got busy schedule tend to buy healthy product because they
dont have time to make it at home. Our antioxidation juice container can keep juice fresh longer.
So, you can make it on weekend and the juice would still be fresh when you drink it on Monday
or Tuesday. People who got a healthy lifestyle often goes to gym or park to do exercise, so they
have to keep their drink in the portable container that easy to bring.
Its common that the spread of upper middle class society in Indonesia is mainly in big
cities. Oxi Bottle product will be marketed and distributed to several regions in Indonesia with the
following distribution :
a. Region I covers an area of surrounding areas like Jabodetabek.
b. Region II covers major cities in region West Indonesia, like Medan, Palembang Bandung,
Semarang, Surabaya, Balikpapan, Samarinda, Pontianak etc
c. Region III covers major cities in region Middle Indonesia, like Denpasar, Makasar, Manado,
Bima, Matarame.
d. Region IV covers major cities in region East Indonesia like Ternate, Ambon and Marauke.
Oxi Bottle product marketing is done through wholesaler in each targeted distribution area. It
will reduce the amount of efforts required by us, manufacturer, in distributing our product to the
final consumers and provide a vast market coverage to our products. They greatly increase the
efficiency of exchange and lead to reduction in total cost of distribution of products. The
specialized knowledge and skill of wholesalers increases the efficiency of the distribution network.
They place orders for the product in advance regarding the demand for the product. It will enables
us to plan our production capacity. They also keep the manufacturers updated on the changes in
customers' habits, tastes, preferences and fashion.
The wholesalers that we choose are Hypermart and Ace Hardware. Hypermart and Ace
Hardwre is one of leading wholesaler in Indonesia. Difference between hypermarket and others,
such as supermarket and minimarket, is they sell more varied products and have 20 or more
checkout counter. We choose to sell our product in every Hypermart and Ace Hardware thats the
whole region in Indonesia. The consideration is Hypermart and Ace Hardware grow rapidly since
first operated in 2004. It means that upper middle class society tend to go to Hypermart and Ace
Hardware to shopping. Also they have preference to buy chemical devices with quite high cost,
compared to product commodit. They have more trust buy in hypermarket instead of supermarket
or minimarket because the product is more guaranted in terms of quality. The consideration of
buying chemical devices usually not comes from price but with quality. Here is the detailed place
of Hypermart we choose to sell our product.

Table 1.4 List of Hypermart Location in Indonesia

No Wholesaler Store City

1 Central Plaza Lampung Lampung

2 WTC Batang Hari Jambi

3 Sun Plaza Medan Medan

4 Mega Mall Batam Center Batam

5 Hypermart Palembang Indah Mall Palembang

6 Bengkulu Indah Mall Bengkulu

7 Csp Pekanbaru Pekanbaru

8 Supermall Karawaci Tangerang

9 Gajah Mada Jakarta Pusat

10 CIbubur Junction Jakarta Timur

11 Kelapa Gading Jakarta Utara

12 Hypermart Depok Depok

13 Hypermart Sentul Sentul

14 Grandmall Bekasi Bekasi

15 Hypermart Daan Mogot Jakarta Barat

16 Mega Kemayoran Jakarta Pusat

17 Hypermart Pondok Gede Jakarta Timur

18 Hypermart Puri Indah Jakarta Barat

19 Hypermart Pejaten Jakarta Selatan

20 Cyberpark Tangerang

21 Hypermart Serang Banten

22 Hypermart Kemang Village Jakarta Selatan

23 Cimanggis Square Depok

24 Mall Ciputra CIbubur Cibubur

25 Ekalosari Bogor

26 Hypermart Cinere Depok

27 Orange Country Cikarang

28 Hypermart BIP Bandung Bandung

29 Hypermart Cianjur Cianjur

30 Hypermart Cilegon Cilegon

31 Cirebon Super Blok Cirebon

32 Solo Grand Mall Solo

33 Javamall Semarang

34 Hypermart Malang Town Square Malang

35 Royal Plaza Surabaya

36 Batu Town Square Malang

37 Yogya City Mall Yogyakarta

38 Hypermart Pontianak Pontianak

39 Borneo City Mall Ketapang Ketapang

40 Duta Mall Banjarbaru

41 Q Mall Banjarmasin

42 BTC Balikpapan Balikpapan

43 Hypermart Samarinda Samarinda

44 Hypermart Palangkaraya Palangkaraya

45 Hypermart Pangkalan Bun Waringin Barat

46 Hypermart GTC Makasar Makassar

47 Hypermart Manado Town Square Manado

49 Lippo Plaza Kendari Kendari

50 Hypermart Palu Palu

51 Hypermart Maluku City Ambon

52 Hypermart Ternate Ternate

53 Hypermart Jayapura Jayapura

54 Hypermart Kupang Kupang

55 Hypermart BTC Pangkal Pinang Pangkal Pinang

56 Hypermart Bangka Tengah Bangka

Table 1.5 List of Ace Hardware Location in Indonesia

No Wholesaler Store Location City

1 Lombok Epicentrum Mall Lombok

2 Lippo Plaza Kupang Kupang

3 Technomart Karawang

4 Boemi Kedaton Lampung Lampung

5 Hartono Mall Yogyakarta

6 Plaza Ambarrukmo Yogyakarta

Ace Hardware
7 Maluku City Mall Maluku

8 Bay Walk Jakarta

9 Cempaka Putih Jakarta

10 Daan Mogot Jakarta

11 Green Pramuka Jakarta

12 Bona Indah Jakarta

13 Cibubur Times Square Jakarta

14 Emporium Pluit Mall Jakarta

15 Green Terrace Taman Mini Jakarta

16 Cawang Jakarta

17 Citra 6 Jakarta

18 Fatmawati Jakarta

19 Kelapa Gading Jakarta

20 Kuningan City Jakarta

21 Menteng Huis Jakarta

22 Pejaten Jakarta

23 PIK Avenue Jakarta

24 Mall Puri Indah Jakarta

25 Panglima Polim Jakarta

26 Permata Hijau Jakarta

27 Pluit Lakeside Jakarta

28 Mall Grand Paragon Jakarta

29 Pantai Indah Kapuk Jakarta

30 Pesanggrahan Jakarta

31 Radio Dalam Jakarta

32 Rawamangun Jakarta
33 Cipinang Indah Mall Jakarta

34 Kota Kasablanka Jakarta

35 Mall Central Park Jakarta

36 Sunter Jakarta

37 Gandaria City Jakarta

38 Lippo Mall Kemang Jakarta

39 Pasaraya Grande Jakarta

40 Taaman Palem Jakarta

41 Grand Indonesia Jakarta

42 Mall Artha Gading Jakarta

43 Mall of Indonesia Jakarta

44 Grand Galaxy Park Bekasi

45 Mall Metropolitan II Bekasi

46 Living Plaza Bekasi Bekasi

47 Grand Metropolitan Mall Bekasi

49 Pondok Gede Bekasi

50 Lippo Cikarang Bekasi

51 Summercon Bekasi Bekasi

52 AEON Mall BSD Tangerang

53 Ciledug Tangerang
54 Galaxy Mall Rempoa Tangerang

55 Q Big Tangerang

56 Balekota Tangerang

57 Ciputat Tangerang

58 Karang Mulya Tangerang

59 Living World Tangerang

60 Bintaro Tangerang

61 Citra Raya Tangerang

62 Paramount Serpong Tangerang

63 Supermal Karawaci Tangerang

64 Depok Depok

65 Luiving Plaza Cinere Depok

66 Margo City Depok

67 Batu Bulan Bali

68 Gatsu Barat Bali

69 Sunset Point Bali Bali

70 Central Park Kuta Bali

71 Mall Bali Galeria Bali

72 Teuku Umar Bali

73 Denpasar Bali
74 Nusa Dua Square Bali

75 Mall Balikpapan Permai Balikpapan

76 Istana Plaza Bandung

77 Metro Indah Mall Bandung

78 Balubur Town Square Bandung

79 Living Plaza Dago Bandung

80 Miko Mall Bandung

81 Plaza IBCC Bandung

82 Mall Festival City Link Bandung

83 Taman Kopo Indah Bandung

84 Banjarmasin Banjarmasin

85 Q Mall Bajarbaru Banjarmasin

86 Batam Sei Panas Batam

87 Nagoya Batam Batam

88 Bogor Bogor

89 Cibinong City Mall Bogor

90 Terasutra Bogor

91 Cirebon Cirebon

92 Cirebon Superblock Cirebon

93 Living Plaza Cirebon Cirebon

94 Jambi Town Square Jambi

95 Living Plaza Latanete Makasar

96 Mall Ratu Indah Makasar

97 Living Plaza Pettarani Makasar

98 Mall Panakkukang Square Makasar

99 Kompleks Mall Olympic Malang

100 Malang City Point Malang

101 Manado Town Square Manado

102 Cambridge City Square Medan

103 Juanda Medan

104 Centre Point Medan Medan

105 Putri Hijau Medan

106 Gatot Subroto Medan

107 Sun Plaza Medan

108 Mall Palembang Indah Palembang

109 Palembang Square Palembang

110 Gedung Panam Square Pekanbaru

111 Mall Pekanbaru Pekanbaru

112 Pontianak Pontianak

113 Majapahit Semarang Semarang

 114 Living Plaza Semarang Semarang

115 Semarang Semarang

116 Siliwangi Semarang Semarang

117 Sidoarjo Sidoarjo

118 Hartono Mall Solo

119 Solo Paragon Solo

120 Grand City Surabaya Surabaya

121 Plaza Surabaya Surabaya

122 Mall Galaxy Surabaya

123 Lenmarc Surabaya

124 Supermal Pakuwon Surabaya

125 Royal Plaza Surabaya

126 Mall Tanjungan Plaza II Surabaya

127 East Coast Surabaya

128 Gedung Robinson Samarinda Samarinda

129 Samarinda Central Plaza Samarinda

130 Asia Plaza Tasikmalaya Tasikmalaya

131 Living Plaza Tasikmalaya Tasikmalaya

1.4.2. Mode of Transportation

Our finished goods are stored in storage in our plant to be delivered or distributed to the
consumer. Each of our antioxidation juice container is packaged with carton box, and plastic,
making it safe during shipping. There is no distribution center as our product are manufactured in
a relatively small quantity. The finished goods is distributed to wholesalers and the distribution
chain depends on the plant location. The route will be estimated from Google Maps. There will
only limited option because we dont use distribution center. There are 2 major options, by making
our own transportation using pick up car. If we will be using own transportation, we need to
consider vehicle and effective route for transportation. As for transportation services, cost will
depend on how far the destinations are. However, due to no distribution centre is involved, there
are no further route alternative. So, the distance from Tanjung Priok to the retailers is summed up
and then multiplied with few determining factors (transportation costs) for the self-own
transportation. Transportation services cost estimation is by multiplying the cost per distance with
the total distances.
From the wholesalers we choose, which are Hypermart and Ace Hardware, they have their
own distribution centre. So we just need to deliver all our product from our plant to their
distribution centre. Our plant is located in Tanjung Priok, while distribution center of Hypermart
Lippo Cikarang is in Bekasi and the distribution center of Ace Hardware is in South Jakarta .
Though we deliver our product to distribution centre, its still classified as wholesaler because the
distribution centre is owned by wholesalers. We will choose land transportation using pick up car.
With assumption each box pick up car can pick 37 products, we need 5 pick up cars to move our
entire product in a week. We will deliver product once a week.

Figure 1.1. Distribution Route to Hyparmart Central

(Source: google maps)
 Figure 1.2. Distribution Route to Ace Hardware Central
(Source: google maps)

Figure 1.3. Diagram of Land Route Product Distribution

(Source: Authors Document)
The time needed to deliver our product to Hypermart Central is 1 hour 34 minutes. Its
estimated based on our rented pick up car will use Jakarta Cikampek Toll route with distance of
14 km. Meanwhile, the time needed to deliver our product to Ace Hardware Central is 51 minutes.
The distribution time is very short because we choose the location of our plant very near to
distribution centre of wholesalers. After the product arrive, it will be stored for certain time until
wholesalers in certain location need to be supplied by our product. We dont have to think of how
our product is distributed from distribution centre to wholesalers anymore because its now
become wholesalers responsibility. We just have to control and make sure that the product is
arrived at destinated place and bought by customers.