Mustika Ratu Case Summary

Mustier Rat’s Marketing Strategy Throughout the sass, the company expanded its line traditional cosmetics (facial care & decorative makeup, hair and body care product) and the established itself as the uncontested market leader – by 1998, four out of very 10 cosmetic products sold in Indonesia were Mustier Rata brands. Positioned as competitively priced, quality products formulated specifically for Indonesian skin. Company literature reinforced that its products were natural and integrated timeless Indonesian beliefs of the health and beauty properties of local plants and herbs.

Mustier Rat’s Jambs appealed to several market segments. Segment : Men, women, adults, and teenagers. Target : Predominantly middle- to upper-middle-income cue insurers. Positioning : Products were natural and integrated timeless Indonesian levels of the health and beauty properties of local plants and herbs. Condition of competition in the jam segment was becoming fierce in the next following years. Many roadside stalls selling jambs to cure headaches, boost sexual drive or to reduce weight were common. These jambs were targeted at the middle- to lower-income market segment.

So, Mustier Rata also competed in these market segments with their flank brand “Garage Jambs”. According to the company’s 1 997 annual report, this line “contributed to overall profitability and had great potential for future growth. ” Exhibit low are Mustier Rat’s product differentiation based on market segment. Each segment has each marketing strategy that suitable to applied to their market. Based on reading text, Mustier Rat’s core value that become major quality of Mustier Rat’s product was high quality of their natural ingredients.

It become a competitive factor for Mustier Rata differentiation to another brands. This competitive factor that Mustier Rata tried to sell from their marketing campaign. This became a major focus in the company’s marketing communications. An average of over 25 percent of annual net sales was spent n marketing campaigns which promoted value-priced, natural alternatives to imported cosmetics. Another key promotion activity that increased the company’s profile was sponsorship of several major beauty events, including the Miss Indonesia pageant.

B. R. A. Immorality’s high profile as an owner of Mustier Rata, who granted meritorious achievement in the promotion of Indonesian culture and traditions and the Asian Institute’s Marketing Management Award (in 1992 and 1 995) also increased Mustier Rat’s profile in domestic area. Mustier Rat’s Distribution Strategy Over the years, Mustier Rata had developed its own well-established and highly organized distribution system, controlled through a recently installed information technology (IT) control system.

The application of improved IT control systems ensured a higher level of service and more efficient delivery schedules as well as more accurate and timely consumer information. IT system was also installed due to the the challenges posed by Indonesian geography, which is Indonesian area is so vast. Another significant challenge in distribution in Indonesia was the highly fragmented nature of the retail industry – thousands of small outlets and roadside stalls accounted for a significant percentage of Indonesian retail activity.

Mustier Rata used all of kind distribution channel to market their extensive product lines. Mustier Rata Brand’s Distribution Channel ‘ Lower- and middle- income brand : ubiquitous stalls, wet markets, conventional retail shop, supermarket, direct sales channel Upper- income brand : Department stores, company-owned stores, direct sales force Since 1 992, Mustier Rata had concentrated on intensifying their department store distribution channel.

Another key strategy was to increase of distribution channels previously managed by third parties in their most densely populated and lucrative markets. The establishment of Mustier Rata-owned and operated distribution systems resulted in an average of two and one-half percent increase in Mustier Rat’s operating margins. Delivery time was also shortened, and quality of service provided to retail outlets was enhanced. Company also changed its accounts receivable policy, shortening the due period from 90 days to 30 days.

Namely it addressed lead times and resulted to smaller order lots. According to Essayist on the reading text, the company’s distributors were his “eyes and ears” monitoring customer opinion and relaying vital market information to the corporate marketing department. Mustier Rat’s International Market In international markets, Mustier Rata used a combination of in-house owned operated distribution channels, as well as contracted distributors.

Malaysia The company’s most significant international market, accounting for 70% of international revenue. 1 995, Mustier Rata established several “House of Mustier Rata” treatment centers, which resulted in doubling sales. Target Market : Indigenous Malay (properly target), Chinese (lasted catered), Middle market products. Philippines : Demographics in Philippines market were relatively similar with domestic product lines. Target Market : Health and beauty products for teenage girls was one of the least crowded market segments.

Next step in penetrating the Filipino market was to capitalize on the established third-party distribution channels used for the body splash and to introduce other product within the Putter line as well as Mustier Rat’s slimming Tea. The Middle East : Mustier Rata had opened 14 “House of Mustier Rata” outlets in United Arab Emirates, Saudi Arabia, and Egypt. Target Market : Brand with in developing natural products that adhered to the Muslim ‘Hall’ standards -? products made with no animal fat and that had never been tested on animals.

Other Countries : The another countries was : Hong Kong and Holland (Mail order distribution channel) South Africa, Canada, Australia, China, Japan, Korea, Vietnam Taiwan, and Thailand (Investigating Market) Successfully Navigating Through A Chaotic External Environment Mustier Rata had averted the misfortune in 1 998 that had befallen many of heir competitors through cautious investment of the proceeds of their PIP (much of which had not been used as originally planned), mostly in short term deposits at foreign-owned banks.