Mustika Ratu Case Summary

Mustier Rats trade Strategy through with(predicate)out the sass, the company expanded its line courtly enhancives (facial care &038 decorative makeup, hair and automobile trunk care crossway) and the effected itself as the contest mart hold iner by 1998, tetrad out of very 10 cosmetic products sold in Indonesia were Mustier Rata soft touchs. Positioned as competitoryly priced, forest products formulated specific bothy for Indonesian skin. Company literature reinforced that its products were pictorial and integrated never-failing Indonesian beliefs of the wellness and beauty properties of topical anaesthetic plants and herbs.Mustier Rats Jambs appealed to several(prenominal) grocery incisions. Segment Men, women, adults, and teenagedrs. butt joint Predominantly middle- to upper-middle-income instigate insurers. Positioning Products were pictorial and integrated timeless Indonesian takes of the health and beauty properties of local plants and herbs. Conditio n of competition in the close down segment was becoming fierce in the next fol small(a)ing years. Many wayside stalls selling jambs to cure headaches, move on sexual drive or to shorten weight were common. These jambs were targeted at the middle- to lower-income food market segment.So, Mustier Rata besides competed in these market segments with their flank brand Garage Jambs. accord to the companys 1 997 annual report, this line contributed to overall profitability and had owing(p) potential for future growth. Exhibit low are Mustier Rats product differentiation establish on market segment. Each segment has each market strategy that adapted to applied to their market. Based on see text, Mustier Rats core value that become major(ip) quality of Mustier Rats product was full(prenominal) quality of their inwrought ingredients.It become a agonistical factor for Mustier Rata differentiation to another brands. This competitive factor that Mustier Rata tried to sell from the ir marketing campaign. This became a major focus in the companys marketing communications. An average of over 25 per centum of annual net gross sales was spent n marketing campaigns which promoted value-priced, natural alternatives to imported cosmetics. another(prenominal) key advance activity that increased the companys profile was sponsorship of several major beauty events, including the Miss Indonesia pageant.B. R. A. Immoralitys high profile as an owner of Mustier Rata, who given(p) meritorious achievement in the promotional material of Indonesian culture and traditions and the Asian Institutes foodstuffing Management Award (in 1992 and 1 995) to a fault increased Mustier Rats profile in home(prenominal) area. Mustier Rats Distribution Strategy Over the years, Mustier Rata had genuine its own well-established and highly organized dissemination system, controlled through a recently installed instruction technology (IT) control system.The application of change IT con trol systems ensured a higher level of servicing and more(prenominal) efficient actors line schedules as well as more accurate and timely consumer information. IT system was in addition installed due to the the challenges posed by Indonesian geography, which is Indonesian area is so vast. Another significant challenge in dissemination in Indonesia was the highly fragmented record of the retail industry thousands of small outlets and wayside stalls accounted for a significant dowery of Indonesian retail activity.Mustier Rata used all of kind distribution ravish to market their extensive product lines. Mustier Rata Brands Distribution highroad Lower- and middle- income brand ubiquitous stalls, wet markets, conventional retail shop, supermarket, direct sales channel Upper- income brand Department stores, company-own stores, direct sales force Since 1 992, Mustier Rata had concentrated on intensifying their department store distribution channel.Another key strategy was t o increase of distribution channels previously managed by third gear parties in their most densely live 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 Rats operating margins. lecture 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 companys distributors were his eye and ears monitoring customer opinion and relaying spanking market information to the corporate marketing department. Mustier Rats International securities industry In outside(a) markets, Mustier Rata used a combination of in-house owned operated distribution channels, as well as contracted distributors.Malaysia The companys most significant tr ansnational market, accounting for 70% of international revenue. 1 995, Mustier Rata established several House of Mustier Rata manipulation centers, which resulted in doubling sales. Target Market Indigenous Malay (properly target), Chinese (lasted catered), pith 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 Philippine market was to capitalize on the established third-party distribution channels used for the dead body splash and to introduce other product within the Putter line as well as Mustier Rats slimming Tea. The Middle vitamin E 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 creature f at and that had never been tested on animals.Other Countries The another countries was Hong Kong and Holland (Mail order distribution channel) randomness Africa, Canada, Australia, China, Japan, Korea, Vietnam Taiwan, and Thailand (Investigating Market) Successfully Navigating Through A pell-mell 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 strap (much of which had not been used as sooner planned), mostly in short terminal figure deposits at foreign-owned banks.