Dynamite

Rolling
Tobacco

Business Economics
Syndicate 3 M. Ananda Rahmat F
29320540

Sabila Syarafina
29320561
Roberto Bosta S
29320491

Putty Erwina
M. Satria Akbar 29320402
29320365

Mitha Prissca
Rizelfi Abdillah 29320599
29320425

Moch. Firdaus
29320389
Introduction
Contents
Company Profile
Business Model
Products
Management

Customer Behavior
Customer Persona
Positioning

Market Behavior
Demand and Supply
Price and Demand Elasticity
Market Structure
Competitive Advantage

Pandemic Era and the Future

Pandemic Era
What’s Next?
Key Success Factor
 Company
Profile
01.
Company Profile
PT Rahayu Angkara Nusantara is company in tobacco business. The
company was established and legalize in 2016, also already penetrate the
market in Indonesia and Malaysia.

Known as the trademark "Tranquilize Dynamite" we appear as a solution

for the people of Modern Indonesia, for the needs of tobacco-rolled paper
and tobacco itself.

Company’s goal are to revive the long abandoned tradition of hand-rolled

cigarettes and become one of the leading companies in the field of
tobacco paper and rolled tobacco in Indonesia.
Timeline
1 3 5
December 2013 November 2015 November 2016

First paper product of TDynamite at Bintaro Dynamite Rolling Paper

Tranquilize Dynamite

2 4
March 2014 September 2016

First store of TDynamite at Establish Company

Pasar Santa
PT Rahayu Angkara Nusantara
 Business Model
Franchise
- Franchise branch by paying franchise
money
Authorized Dealer - A consignment stock system using a 1
- Get a Tdynamite Authorized month paid system
Dealer License for your store
- Independent system by
providing start-up capital

Branch
- Branches use the Consignment system
with a 1 month payment system in full
- Special Price for Tdynamite Branch
- Role Model For another branch or
franchise
Franchise & Branch Package
Dynamite Product
On September 2016 our latest product DYNAMITE, rolling paper tobacco was released

Dynamite Pink
Slowburn 1 1/4 Dynamite Tips

Material : Unbleached Material : Wood Pulp 3gr

Wood pulp 12.5 GSM Qty : 40 Leaves
Print Quality : Glossy Prize : Rp.10.000
Embossed
Qty : 40 Leaves
Size : 78x45 mm
Dynamite King Size Prize : Rp.15.000
with tips Special Dynamite White
Edition Regular Size
Material : Unbleached Material : Rice Paper
Wood Pulp 12.5 GSM 20gsm
Print Quality : Holographic
Embossed Special Ink Print Quality : Glossy
Qty : 40 Leaves Qty : 40 Leaves
Size : 110x45 mm Size : 70x45 mm
Prize : Rp.35.000
Prize : Rp.10.000
Dynamite on
Social Media
Dynamite Store Grand Opening

Dynamite on
Media
 Things Related to The Brand...

Total Search on specific Subject As : Papir, jual papir, Papir raw, toko tembakau, jual tembakau

Our Partners

AND MANY MORE!

 Management
Tranquilize Dynamite
Management Hierarchy
Direktur

Operation Marketing

Digital
Marketing
HRD Sales
 Management Operations :
Sales
: Stores Pasar Santa

: Stores Bintaro

: Stores Depok

Sales Operating in 3 locations, which are running by

the sales person whos working in the store mainly
to serve the customers.
Management - Marketing
Products
Tobacco, Papir, Accessories

Price
Premium Pricing

Place
E-commerce, franchise stores,
FOODHALL and official stores

Promotion
Social media accounts e.g instagram and facebook
and mass media
 Customer
Behavior
02.
 Customer Persona
Background:
➢Employee
➢Entrepreneurs
➢Artists

Demographics:
➢Mainly male - niche market of female
➢Living in urban area
➢Age 24-34
➢Single or Married
➢Middle high economic class
➢Potentially to expansion to lower
Interest:
economic class
➢ Prefer unique experience of
smoking
Activities: ➢ Considered smoking experience
➢Music enthusiast
as 'rituals' and 'lifestyle'
➢Travelling
➢ Adventurous people
➢Photography
➢ Considered as 'open minded'
folks
Segmentation and Targeting
Targeting
Geographic: Jabodetabek
Customer Type: B2B and B2C
Social Class: Middle-Up
Product: Tobacco and Rolling Paper

Segmentation
Geographic: National and Regional
Customer Type: B2B and B2C
Social Class: Middle-Up
Product: Tobacco and Rolling Paper
 Positioning

Premium

Low price High Price

Low Quality
 Market
Behavior
03.
Demand and Supply - Demand Trend

Search demand for rolling tobacco has an upward trend in the past 5 years. Consumer demand kept growing even in the
pandemic.

Effective in early 2020, Directorate General of Customs and Excise raised the excise tax of cigarettes for 23%, elevating bulk
selling price of cigarette for 35%. Higher price of cigarettes shift demand from cigarettes to rolling tobacco, resulting to a peak
demand in 2020.
Demand and Supply - Production of Tobacco
Rising, then stagnating
Increasing trend from 2017 to
2019, but stagnant afterwards
As highlighted by Agus Pramuji of
Association of Tobacco Farmer
Indonesia (bisnis.com), the plateau
was caused by high annual rate of
rainfall and wind.
Elevating price of industrial oil for
drying tobacco also increased
production cost

Pandemic hit productivity

Low absorption by factories and
strict health protocols in tobacco
Graph 1: Indonesia’s Tobacco Production (Directorate General of Estate, 2021)
orchard lowered productivity
Demand and Supply - Production of Tobacco
Quarterly trend
Quarterly sales has a downward trend with a seasonal
tendency

Graph 2:
Quarterly Quantity Sales of Dynamite Rolling
Tobacco from 2019 to 2020
Annual Sales
As the supply of tobacco stagnated from
2019 to 2020, rolling tobacco sales also
suffer from decrease in sales despite
increasing demand.
Graph 3: Annual Quantity Sales of Dynamite
Rolling Tobacco from 2019 to 2020
 Price &
Rolling Paper as the main revenue generator for
Tdynamite, contributing 60% of the total net sales. Demand Elasticity
Papir
Rolling Paper is a tertiary and complementary
commodity of tobacco. Rolling Paper from Tdynamite is
a premium class so it may considered as an oligopoly
market.

The main effect of price elasticity for papir sold by

Tdynamite is the exchange rate of the rupiah against
the dollar. Other than that, price elasticity is also
influenced by competitors and non-currency
advantages of the product.

Types of Price Elasticity of Demand may considered as

Relatively inelastic demand.
Price & Demand Elasticity
Tobacco

Tobacco is a secondary revenue generator for T dynamite,

contributing about 30% of total net sales.

In general, tobacco prices are not elastic due to nationally

balanced demand and supply.

The main influence of price elasticity for tobacco sold by

Tdynamite is regulation and purchasing power of customers
and competitors in order to maintain positioning and loyal
customers.

Tobacco is a tertiary need, with perfect competition market

conditions, the fluctuations of the price will affect market
sentiment.

Types of Price Elasticity of Demand may considered as Relatively

inelastic demand.
Market Share & Structure
Oligopoly Market
➔ One of the characteristics of an oligopoly market is the awareness of
producers about competition, so..Dynamite really maintains quality and taste

➔ Consumers also have several alternatives, as well as innovation from

manufacturers to develop their products and services.

➔ So that in an oligopoly market, the role of marketing in marketing dynamite

products is very influential in order to maintain the existence of its name.

➔ In this industry is tough to new firms to enter the market

 Market Share & Structure
- Competitors
Competitor of dynamite
Market Share & Structure
- Growth

The highest income from the store

Market Share & Structure
- Growth

There is an increase and decrease in income, the highest

income in May
Competitive Advantage
Highly Experienced Since 2012
Dynamite is well experienced in its field. It was established in 2012
and has made more than 10,000 transactions.

The customers are spread from Sabang to Merauke

Dynamite has so many loyal customers from Sabang to Merauke.
Dynamite outlets and products are spread to all around Indonesia.

Patents and Intellectual Works in Process

Patents and intellectual works of Dynamite are being processed.
 Competitive Advantage
Providing various variants of Indonesian tobacco
with the best quality
Dynamite’s tobacco products have a lot of variants for the
blunt and the rolling paper. The variants of flavors not only
consist of fruits such as strawberry, cherry, blueberry,
chocolate, coconut, and kiwi, but also unique flavors such as
cotton candy, jamaican rum, and bubble gum.

Having high quality standard tobacco products

The grading of tobacco consists of A-H where H is the highest
quality, and H is the lowest. The grading is based on the
physical, chemical, organoleptic and economic properties of
the tobacco, including the smell, color, and texture. Dynamite
products are consisted of tobacco in grade D. The source for
Dynamite’s tobacco is from Madura.
 Competitive Advantage

The first Tobacco Shop with the right concept for young
people and tobacco lovers
Dynamite is the first tobacco shop with a creative and unique
concept designed for youngsters and tobacco lovers. Dynamite has
three choices of store concepts and each of them has their own
purpose.
Competitive Advantage

Highly competitive with time processing

Dynamite is also high competitive with their
products’ production time processing.

Just in time
Since the pandemic era, the price of cigarettes
increases and the people stays home more than
before. Those two factors make the rolling tobacco
chosen. People who usually smoke would make time
to create their own rolling tobacco. The trend of
rolling tobacco is increasing from time to time, as we
can see in Google trends. Rolling tobacco is
expected to be the next big thing and is expected to
replace the cigarettes.
Competitive Advantage
 Pandemic and
The Future
04.
So surely then, faced with a global pandemic of a disease
that attacks the respiratory system,

you would expect to see smokers quitting in their droves

and a noticeable decline in tobacco sales?
Well, you’re wrong…

Sales of factory-made cigarettes

7.3%
It has finally reached 25 billion euros with a staggering 7.3% increase during the pandemic.

Sales of rolling tobacco/RYO

36.3% Sales for the past year (pandemic) reached more than one billion euros (36.3%), with more than four
billion euros sales in total.

Courtesy of
thegrocer.co.uk
A Trend from Google in “tingwe”

Looking to the searched matter in Indonesia, which “tingwe” means RYO tobacco or rolling tobacco in
English shows a significant increase in the start of 2020.

We could see as well with the supporting news that happened, regarding the cigarette excise, that has
increased several times since 2013. During 2013–2020, the government has increased cigarette excise five
times. If 2015 increased by 8.72%, 2016 by 11.9%, 2017 by 10.54%, and 2018 by 10.04%.

This means that 2021 will be the era of the largest cigarette excise increase in the
last eight years. (12.5%)
Courtesy of kompasiana.com
So, will there be any chances for rolling tobacco industry
to rise?

With all the supporting facts, rolling tobacco will be the

best choice for smokers, eventually.
 What’s Next?
Collaborate
Expand Distribution
Channel

Lower Segment
Tobacco
Dispenser
Hire More Sales

New Variant
Rolling Paper
What’s Next? (opportunity)

Tobacco
Dispenser

Targeting coffee shop in Jabodetabek to sell

Tdynamite Products in Tobacco Dispenser
Model
What’s Next?

Targeting
Lower Segment

Create a lower segment tobacco and targeting

variant class segment from the lower market
in order to expand the market size
What’s Next?

New Variant
Rolling Paper

Launching a Transparent Rolling Paper called

Dynamite C-Tru(th) as the first Transparent
Rolling Paper in Indonesia.
What’s Next?

Collaborate

Collaborate with another brand to gain more

market share
 Key Success Factor

Experience Customer Satisfaction Brand Value

Dynamite was established in
2012 and it has made more than
10,000 transactions.
Dynamite has proven its
customer satisfaction by having a
lot of loyal customers, and its
familiarity or closeness with the
customers.
Dynamite has excellent brand
value which is valued by the
market.

Technology Advantage
Dynamite has their own
technology advantage compared
to its competitors because they
have advanced technology for
processing the tobacco products.
Dynamite is using production
technique and ingredient from
Java which is more sophisticated
than other place sources.
Key Success Factor
Product
Value
Dynamite has high quality
standard for their products, and
has a lot of variants.
Operational Advantage
Dynamite has their own
operational advantage. Its
operational activities are well
managed with their specific
system. Each outlet has its
system that can be controlled on
iPad. The cost and stock
management are also well
controlled and managed.
ThankYou!
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