1

1.5. Transportation Method

1. By Land
For this method of transportation there are two alternatives,
by truck or by train. Because all of the city or region except
Denpasar and Balikpapan have Train Station and very possible to
distribute by train and for the distribution by truck container, the
reason for using this type of container is because it is container
can protect our product from weather. By using trucks container,
our products will be transported directly to the wholesaler.
However, for train alternatives, there is minimum weight to
distribute the product. The minimum amounts of distribution are
250 jerrycans. For truck container, there is maximum to
distribute the product. The maximum amounts of distribution are
500 jerrycans.

Figure 3. 1 Transportation of Distribution

(Source: Authors Personal Data)

2. By Sea
Besides using land transportation, the other alternative that
can be used is the sea transportation alternative, which is using
ships. To distribute our products, especially outer of Java Island
which is Denpasar Bali, sea transportation is needed to cross the
sea. By using ships, for longer distance, especially for other
island distribution sometimes it will take shorter time do
distribute our product.
The delivery of goods will be done once a month, which is
early month by using 4 truck containers. The time needed to
deliver products for the varied pathways of distribution and the
estimating the distribution cost.
Table 3.1. Distribution Cost

Distribution

Pathw

Route

Time Spent

Cost

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Pathway

Jabodetabek
(Region1)

ay

Land

Cilegon North
Jakarta
Cilegon West
Jakarta
Cilegon Cikarang
Cilegon Tanggerang
Cilegon - Bekasi

West Java
(Region 2)
Yogyakarta
(Region 3)
Surabaya
(Region 4)
Denpasar, Bali
(Region 5)

Land
Land
Land
Land
Sea

Cilegon Bandung
Cilegon Sukabumi
Cilegon Yogyakarta
Cilegon Surabaya
Cilegon Ketapang - Bali
Cilegon Ketapang - Bali

2 Hours 6
Minutes
1 Hour 59
Minutes
2 Hours 45
Minutes
1 Hour 24
Minutes
2 hours 26
Minutes
5 Hours 1
Minutes
4 Hours 26
Minutes
12 Hours 37
Minutes
17 Hours 12
Minutes
23 Hours
23 Hours 28
Minutes

Rp. 953.500,00
Rp. 857.500,00
Rp.
1.115.400,00
Rp. 790.400,00
Rp.
1.075.000,00
Rp.
1.832.500,00
Rp.
1.532.500,00
Rp.
4.000.000,00
Rp.
5.270.000,00
Rp.
8.950.500,00
Rp.
8.906.500,00

(source: reproduced from private source)

The time spent column is gotten from searching the distance of

each location by using Google Maps. For the Estimating Cost, we
determined it by assuming the cost of renting the trucks and
calculating the fuel charge of each city. From the table above, it
shows that the distribution cost to Denpasar Bali is very high and
distribution cost to Jakarta is low because of the distance.
3.6. Fluctuations of Products in the Plant Warehouse
(Inventory)
Fluctuations of the products in the distribution centre are
important to be made because they will show our capability to
meet the market demands. Assumptions that were made to make
the fluctuations curves are:
1. 100% production capacity.

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2. The distribution of products to the each regions are scheduled

each week, with different time of deliverance for each region
3. Products distributed for each distribution centre will be
bought by markets
This flunctuation is used for checking the safe inventory of our
product. This table below shows that the amount of our product
fluctuation in the ware house and each regions.
Table 3.2. Warehouse Planning

Product
s in
Plant
Wareho
use
(Packa
ge)
(End of
The
Day)
0

7,231

14,462

Jabodet
abek

West
Java

Central
Java &
Jogjaka
rta

East
Java

Bali

Num
ber
Of
Days

Product
s in
Plant
Wareho
use
(Packa
ge)
(End of
The
Day)

Region
1

Regio
n2

Region
3

Regi
on 4

Regi
on 5

0
0
0
0
0
20,247

0
0
0
0
0
5,062

0
0
0
0
0
0

0
0
0
0
0
0

0
0
0
0
0
0

Num
ber
Of
Days

3
4
5
6
7
8

21,693
28,924
36,155
43,386
50,617
7,231

Jabodet
abek

West
Java

Central
Java &
Jogjaka
rta

East
Java

Bali

Region
1

Regio
n2

Region
3

Regi
on 4

Regi
on 5

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9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26

Num
ber
Of
Days

27
28
29
30
31

STOCK

5,06
2

14,462

17,716

21,693
28,924
36,155
43,386
50,617
7,231

0
0
0
0
0
20,247

0
0
0
0
0
5,062

0
0
0
0
0
0

14,462

17,716

21,693
28,924
36,155
43,386
50,617
7,231

0
0
0
0
0
20,247

0
0
0
0
0
5,062

0
0
0
0
0
0

14,462

17,716

0
0
0
0
0
0
5,06
2

21,693
28,924
36,155

0
0
0

0
0
0

0
0
0

0
0
0

Jabodet
abek

West
Java

Central
Java &
Jogjaka
rta

East
Java

Bali

Region
1

Regio
n2

Region
3

Regi
on 4

Regi
on 5

0
0
20,247

0
0
5,062

0
0
0

0
0
0

14,462

17,716

0
0
0
5,06
2

21,693

Product
s in
Plant
Wareho
use
(Packa
ge)
(End of
The
Day)
43,386
50,617
7,231

0
0
0
0
0
0
5,06
2

Time of Arrival at
every Regions
1021 (Every Month)

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0
2,53
1
0
0
0
0
0
0
2,53
1
0
0
0
0
0
0
2,53
1
0
0

0
2,53
1

REMAININ
G

20672

(source: reproduced from private source)

After the table that we made above, we can make the graph
which shows the fluctuation of our plant warehouse.
60000
50000
40000
Total Packages

30000
20000
10000
0
0

10

15

20

25

30

35

Number of Days
Figure 3.1. Fluctuation of Product Warehouse
(source: reproduced from private source)

From the figures above, we can infer that in the beginning of

the production time, it will rise to the highest point of production.
After reaching its highest point, products will gradually decrease
to make a stable fluctuations for a set period of time. This is
because the distribution to each region as shown in the table. It
is set that their amount will be enough for the distribution of
products to the wholesaler in each regions. So this is the graph
that will show clearer about the distribution.

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25000
20000

Jabodetabek

15000

West Java

10000

Central Java &

Yogyakarta
East Java

5000

Bali

0
0

10

15

20

25

30

35

Figure 3.7.Fluctuation of Product at every Regions

(source: reproduced from private source)

The graphs shows that stock or the inventory of our

product in every region is very different according to the
percentage of the product that we will distribute.
After our product being produced for a month, we need to
stock our product. the number of our stock product will be 5% of
total production for a month which is about 1012 packages f our
happy honey product. This stock management system is used
because of some considerations.
Our Raw Material is not available in every month. This is
because our main raw material is honey. Honey production only
begin in the summer season or dry season in 6 months and can
be collected only twice a year. Therefore, there is some
probability we cant produce our formula honey and we are going
to reduce our capacity in some months. So, this stock will
substitute

the

number

of

loss

production

capacity.

This

consideration also relate with other reason. The other reason is

because the wholesaler needs a stable distribution. Thats why
we cant have a low product production, to fulfil the needs we
need stocks for the anticipation. This inventory is usually called
seasonal inventory.

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Table 3.13. Total stock for 6 months

Number of

Total Stock (End of

Month

the month)

1
2
3
4
5
6
Total

1,021
2,042
3,063
4,084
5,105
6,126
2,1441

(source: reproduced from private source)

This total stock that we have from the inventory for 6

months is about 21441 packages that can be stored and
delivered to our wholesaler.

This happens when tour raw

materials are hard to get.

1.7. Marketing
Marketing is defined as an activity which makes the
availability of the product and can satisfy customers, and also
provide benefits to companies that sells the product. To be able
to distribute our products, it is necessary for having an adequate
network of marketing. The marketing of our products is aimed to
introduce our brand new product to the public, to raise the
feeling of awareness of our product in public, and to attract
peoples interest to buy and use our products.
1.7.1. Target Determination
For planning and developing our marketing strategy, to determinate our
products target is a must in order to be more focused in the market in accordance
to our products specialty. Our marketing targets are producer ice cream, chocolate
and snack packaging.
1.7.2. Market Segmentation

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Market segmentation is a grouping of the market into segments of

potential consumers with characteristics that similar to each other that also show
the similarities of consumers behavior.
1.7.3. Geographic Segmentation
Our products will be sell in some of the big cities in Indonesia, such as
Jakarta, Bekasi, Tangerang, Bandung, Surabaya, Sukabumi, Yogyakarta, Denpasar
and Balikpapan. The considerations of the locations are based on the plant
location, population of the city, etc. We can markets our product maximally with
lower transportation cost than other locations based on those considerations.
1.7.4. Demographic Segmentation
The market for this segmentation is grouped by ages, type of gender, level
of income, occupation, education levels, religion and race. Our product is made
for household, with parent whose income level is middle up to upper level.
1.7.5. Psychographic Segmentation
This segmentation is grouping the market of consumers by their social
class, lifestyle, and personality. Based on the form of our product which is
EColdSive, will be suitable to any product packaging based on cold technology
because of our friendly and safety form of our product and also its easiness to
use.
1.7.6. Behavior Segmentation
This behavior segmentation groups the user based on their level of
knowledge, attitudes, and their reaction after using a product. With segmentation
based on knowledge, user are expected to understand more about uses and
benefits of our products. By doing so, it will automatically affect their attitudes to
our products. Because of our safety products, easiness to use, and the function of
our products, we are sure that our products will give good reaction and also gives
a great enthusiasm to our products.
1.7.7. Marketing Integration
The purpose of marketing integration is to create an effective marketing,
achieve a successful marketing and also to give satisfaction to the user.
Product

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The name of our product is EColdSive, which is an adhesive for seal snack
packaging with cold technology. Our product is available in jerrycan, which has
capacity is 20 liters. The compositions of our product give a great effect to
bonding strength .With many kinds of specialty and benefits for consuming our
products, we are confident enough that our product can compete with other
adhesive.
Price
The price of our EColdSieve is 35.000 IDR/liter. We estimate that this
price is affordable to compete with other adhesive cleaner products and for our
consumers to buy.
Place
Our product will be distributed to ice cream producer, chocolate producer
and snack packaging manufacture. The wholesalers to distribute our product are
Walls, Campina, and Silverqueen
Promotion
The promotion of our product is needed to spread information to people
about a new adhesive remover. The promotion will be done through the
deployment of advertises in television, radio, magazine, product website, and soft
launching.

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