Marketing Strategy Through Internationalization Analysis For Choosing The International Market of PT. Sido Muncul TBK

MARKETING STRATEGY THROUGH INTERNATIONALIZATION
ANALYSIS FOR CHOOSING THE INTERNATIONAL MARKET OF

PT. SIDO MUNCUL TBK
THESIS
By:
Sheila Akiko Dwiputri 1801378991
International Business and Management Program
International Business and Management Study Program
Binus Business School
Jakarta
2018
PT. SIDO MUNCUL TBK
THESIS
Submitted as a requirement
For Bachelor Degree in
Management Study Program
Undergraduate Program S1
By:
LE24
Binus Business School Undergraduate Program
Jakarta
2018
PT. SIDO MUNCUL TBK
THESIS
Written by:
Sheila Akiko Dwiputri

1801378991
Approved by:
Thesis Advisor and Head of Program
Rianto Nurcahyo. S.E., M.M.

D5379
Dr. Engkos Achmad Kuncoro, S.E., M.M.,

Head of Management Study Program
Bina Nusantara University

Jakarta
2018
iii
DECLARATION
Hereby, I
Name : Sheila Akiko Dwiputri
NIM : 1801378991
Thesis Title : Marketing Strategy through Internationalization Analysis for

Choosing the International Market of PT. Sido Muncul Tbk
Giving the non-exclusive rights to Bina Nusantara University to store, reproduce, and
distribute my thesis work, in whole, partly or just only a summary, in the form of a
printed or electronic format.
I declare that I will retain the exclusive right of mine, to use all or part of my thesis,
for development work in the future, for example in the form of articles, books,
software, or information systems.
Jakarta, 8th August 2018
Sheila Akiko Dwiputri
1801378991
UNIVERSITAS BINA NUSANTARA
Binus Business School Undergraduate Program
Bachelor of Economics Thesis
Even Semester 2017/2018

PT. SIDO MUNCUL TBK

LE24
ABSTRACT
This research explores the internationalization process of a company specifically Sido

Muncul Tbk which operates in herbal medicines/supplement industry. In analyzing the
internationalization process of the company, researcher also analyze the firm’s
international competitiveness using Porter Diamond Model for the nation-wide
analysis, Porter’s Five Force for the industry-wide analysis, followed with company’s
competitiveness analysis using SWOT analysis which affect the international market
selection of Sido Muncul. The result of this research shows the internationalization
process of Sido Muncul and firm’s competitiveness as well as the criteria considered
by Sido Muncul in selecting their foreign markets and using it in the GE/McKinsey
matrix.
Keywords: Internationalization, Porter Diamond, Porter Five Force, SWOT model,
International Market Selection, GE/McKinsey Matrix
ABSTRAK
Penelitian ini mengeksplorasi proses internasionalisasi dari Sido Muncul yang
beroperasi di industry obat-obatan herbal. Dalam proses analisis, peneliti
menggunakan Porter Diamond Model untuk menganalisis daya saing internasional
yang dimiliki oleh perusahaan dalam skala domestic atau negara, Porter Five Force
untuk skala indsutri, dan analisis daya saing perusahaan menggunakan analisis
SWOT yang dimana kondisi ini mempengaruhi Sido Muncul dalam pengambilan
keputusan terkait pasar luar negerinya. Hasil dari penelitian ini menunjukan proses
internasionalisasi dari Sido Muncul bersamaan denga kriteria yang dipertimbangkan
Sido Muncul dalam memilih pasar luar negerinya untuk lalu diaplikasikan ke matrix
GE/McKinsey.
Kata Kunci: Internasionalisasi, Porter Diamond, Porter Five Force, SWOT model,
Pemilihan pasar luar negeri, GE/McKinsey matrix.
v
FOREWORD
Praise the Almighty God for His Grace and His guidance through the way the
author can finish this bachelor thesis with the title “MARKETING STRATEGY
THROUGH INTERNATIONALIZATION ANALYSIS FOR CHOOSING THE
INTERNATIONAL MARKET OF PT. SIDO MUNCUL TBK”. The author filled
with gratefulness for all those people who allowed and support the author to prepare
and submitted this thesis as one of the requirements for completing undergraduate
studies at Bina Nusantara University.
The author is well-aware that this thesis cannot be completed without the help
of various parties. Therefore, in this opportunity the author would like to thank:
1. God, for His mercy and grace are always with the author
2. Prof. Dr. Ir. Harjanto Prabowo, M.M., as the rector of Bina Nusantara
University
3. Dr. Engkos Achmad Kuncoro, SE., MM., as the Dean of Binus Business
School in Bina Nusantara University
4. Dr. Lim Sanny, ST., M.M., as the Head of International Business and
Management Department in Bina Nusantara University
5. Mr. Dony Saputra M.Kom, M.M., as the Deputy Head of International
Business and Management program.
6. Mr. Rianto Nurcahyo. SE., MM., as the author’s advisor which provides an
endless support, guidance, knowledge, patience, and enthusiasm in helping the
author in finishing this thesis.
7. The lecturer who have been a great role model and teach the author all he/she
knows so that the author can reach where she is now.
8. Mr. Johan Hidayat as one of the commissioners of Sido Muncul who have
given the author a great help by a permission to conduct this research in PT.
Industri Jamu dan Farmasi Sido Muncul Tbk.
9. Mr. Carlo Lukman as the Independent Director of Sido Muncul and the General
Manager of Sido Muncul who allowed and assits the author during the
interview session for this research
vi
10. Mr. Billy Utama as the Investor Relation of Sido Muncul who allowed the
author to gain more insight about the company.
11. Two loving parents, Mr. Hindro Saputro and Mrs. Yanthi Lestari, along with
Mr. Bambang Kuntjoro and Mrs. Sisca, the author’s uncle and aunty, who have
given the author their support, prayer, suggestion, and understanding during
the lecture until the preparation for complete this thesis
12. All friends and relatives who have given encouragement, knowledge,
assistance, and input during the preparation of this thesis.
Thus, the author does hope that this research can provide a significant
contribution to the reader and the author does apologize for if there are misspellings
or flaws in this thesis. Thank you.
Jakarta, 10th July 2018
Author
vii
TABLE OF CONTENTS
DECLARATION ........................................................................................................ iv
ABSTRACT ................................................................................................................. v
FOREWORD .............................................................................................................. vi
TABLE OF CONTENTS .......................................................................................... viii
LIST OF TABLES ..................................................................................................... xii
TABLE OF FIGURES .............................................................................................. xiii
TABLE OF APPENDIX ........................................................................................... xiv
CHAPTER 1 INTRODUCTION .............................................................................. 1
1.1 Research Background ......................................................................... 1
1.2 Problem Identification ...................................................................... 11
1.3 Research Objective ........................................................................... 12
1.4 Research Benefit ............................................................................... 12
1.5 Scope of Research ............................................................................ 13
1.6 State of the Art ................................................................................. 13
CHAPTER 2 LITERATURE REVIEW ................................................................. 19
2.1 Definition of Internationalization ..................................................... 19
2.1.1 Internationalization Theories ...................................................... 19
2.1.2 The Uppsala Model .................................................................... 20
2.1.3 Internationalization Motives....................................................... 22
2.2 Global Marketing ............................................................................. 23
2.3 Firm’s International Competitiveness .............................................. 25
2.3.1 Analysis of National Competitiveness - The Porter Diamond ... 28
2.3.2 Industry Competition and SWOT Analysis ................................ 32
2.4 Deciding Which Market to Enter ..................................................... 36
2.4.1 Market Segmentation ................................................................. 37

2.4.2 International Market Selection ................................................... 38
2.4.2.1 Preliminary Screening ......................................................................... 40
2.4.2.2 Fine-Grained Screening - GE/McKinsey Matrix................................. 41
2.5 Direct Export Entry Mode ................................................................ 43
2.5.1 Agents ......................................................................................... 44
2.5.2 Distributors ................................................................................. 45
2.6 Conceptual Framework .................................................................... 46
CHAPTER 3 RESEARCH METHODOLOGY ..................................................... 47
3.1 Research Design ............................................................................... 47
3.1.1 Research Approach ..................................................................... 48
3.1.2 Time Horizon ............................................................................. 48
3.2 Types and Source of Data................................................................. 50
3.3 Respondent Sampling ....................................................................... 50
3.4 Data Collection Method ................................................................... 51
3.4.1 Primary Data ............................................................................... 51
3.4.2 Secondary Data ........................................................................... 53
3.5 Data Analysis Method ...................................................................... 54
3.6 Data Validity Method ....................................................................... 56
CHAPTER 4 RESEARCH AND DISCUSSION ................................................... 59
4.1 About PT. Sido Muncul Tbk ............................................................ 59
4.2 Company’s Vision and Mission ....................................................... 62
4.3 Corporate Structure .......................................................................... 63
4.3.1 PT. Muncul Mekar ..................................................................... 64
4.3.2 PT. Semarang Herbal Indoplant ................................................. 65
4.3.3 PT. Berlico Mulia Farma ............................................................ 65
4.3.4 Muncul Nigeria Limited ............................................................. 66
4.4 Organizational Structure ................................................................... 67
ix
4.5 Respondent Background ................................................................... 67
4.6 Data Validation Analysis .................................................................. 69
4.7 Interview and Secondary Data Analysis .......................................... 73
4.7.1 Interview ..................................................................................... 73
4.7.2 Documents .................................................................................. 74
4.7.3 Questionnaire.............................................................................. 74
4.8 Key Theme Identification ................................................................. 77
4.8.1 The Comeback of ‘Back to Nature’ and ‘Healthy Lifestyle’ trend

77
4.8.2 Indonesia’s Herbal Medicine Industry ....................................... 80
4.8.3 Company’s Competitiveness ...................................................... 85
4.8.4 Export Activities of Sido Muncul .............................................. 90
4.9 Research Objectives Discussion ....................................................... 96
4.9.1 Internationalization of Sido Muncul ........................................... 96
4.9.2 International Competitiveness of PT. Industri Jamu dan Farmasi

Sido Muncul Tbk ............................................................................................. 101
4.8.2.1 Porter Diamond Model ...................................................................... 101
4.8.2.2 Porter’s Five Forces ........................................................................... 109
4.8.2.3 SWOT Analysis of PT. Industri Jamu dan Farmasi Sido Muncul
Tbk 114
4.9.3 International Market Selection of PT. Industri Jamu dan Farmasi

Sido Muncul Tbk ............................................................................................. 119
4.10 Research Implication .................................................................. 128
4.10.1 Practical Implication ............................................................... 128
4.10.2 Theoritical Implications ......................................................... 129
4.11 Research Limitation .................................................................... 130
CHAPTER 5 CONCLUSION AND SUGGESTION .......................................... 131
5.1 Conclusion ...................................................................................... 131

5.2 Suggestion ...................................................................................... 133
5.2.1 For the Company – PT Industri Jamu dan Farmasi Sido Muncul
Tbk 133
5.2.2 For Future Research ................................................................. 133
REFERENCES......................................................................................................... 134
APPENDIX .................................................................................................................. 1
Appendix 1: Interview Transcripts............................................................... 1
Transcript 1st Informant............................................................................ 1
Transcript 2nd Informant ......................................................................... 22
Transcript 3rd Informant ......................................................................... 35
Appendix 2: Field Note .............................................................................. 42
Field note narasumber 1 ......................................................................... 42
Appendix 3: Questionnaire Result ............................................................. 48
xi
LIST OF TABLES
Table 1.1 Number of Indonesia’s Exports (Free on Board) ......................................... 5

Table 2.1 Major Motives for Starting Export............................................................. 23
Table 2.2 Dimensions of market/country attractiveness and competitive strength ... 43
Table 3.1 Research Design ......................................................................................... 49
Table 3.2 Respondent Sampling ................................................................................ 51
Table 4.1 Subsidiaries of PT. Industri Jamu dan Farmasi Sido Muncul Tbk ............ 64
Table 4.2 Economic Indicators ................................................................................ 125
Table 4.3 Market Attractiveness .............................................................................. 126
Table 4.4 Company Competitive ............................................................................. 126
TABLE OF FIGURES
Figure 1.1 World Economic Outlook (October 2017) ................................................. 2

Figure 1-2 ASEAN-5 Economic Growth from 2010-2020 .......................................... 3
Figure 1-3 Indonesia's Economic Growth from 2010-2017......................................... 4
Figure 1-4 Global Herbal Medicine Market Revenue 2014- (estimated) 2024 ........... 7
Figure 1-5 The Logo of Jamu....................................................................................... 8
Figure 2-1 Internationalization Model ....................................................................... 22
Figure 2-2 Development of a Firm's International Competitiveness ......................... 27
Figure 2-3 Porter Diamond Model ............................................................................. 32
Figure 2-4 Porter's Five Force Model ........................................................................ 35
Figure 2-5 International Market Entry Strategy Process............................................ 37
Figure 2-6 GE-Mckinsey Matrix ................................................................................ 42
Figure 2-7 Conceptual Framework ............................................................................ 46
Figure 4-1 PT Industri Jamu dan Farmasi Sido Muncul Tbk .................................... 59
Figure 4-2 The First Product of Sido Muncul, Jamu Tolak Angin ............................ 60
Figure 4-3 Products of Sido Muncul .......................................................................... 62
Figure 4-4 Products of Sido Muncul (Cont.) ............................................................. 62
Figure 4-5 Corporate Structure of Sido Muncul ........................................................ 63
Figure 4-6 Organizational Structure........................................................................... 67
Figure 4-7 Gender of the Respondents....................................................................... 75
Figure 4-8 Respondents in Using Herbal Supplements for colds .............................. 76
Figure 4-9 Ages Variety of the Respondents ............................................................. 76
Figure 4-10 Variety of Profession from the Respondents Consuming Herbal
Medicines/Jamu ......................................................................................................... 77
Figure 4-11 Healthy Lifestyle: Is it really happening? .............................................. 79
Figure 4-12 Sales Number of Sido Muncul ............................................................... 81
Figure 4-13 Number of Player Herbal Medicine Industry in Indonesia .................... 84
Figure 4-14 Usage of Indonesia’s Jamu for preventing colds ................................... 87
Figure 4-15 PT Muncul Mekar Distribution .............................................................. 88
Figure 4-16 Sido Muncul Product Coverage ............................................................. 89
Figure 4-17 Marketing Distribution of Sido Muncul ................................................. 95
Figure 4-18 Experience Consuming Jamu ............................................................... 104
xiii
Figure 4-19 Porter’s Five Forces Analysis on Herbal Medicine/Supplement Industry
in Indonesia .............................................................................................................. 113
Figure 4-20 ASEAN Countries Population .............................................................. 122
Figure 4-21 GE/McKinsey Matrix ........................................................................... 127
TABLE OF APPENDIX
Appendix 1: Interview Transcripts............................................................................ A1

Appendix 2: Field Note ........................................................................................... A42
Appendix 3: Questionnaire Result .......................................................................... A48
xv
CHAPTER 1
INTRODUCTION
1.1 Research Background
Many countries from all over the world are trying their best possible way to
foster the cooperation between nations in order to solve the international problems
including economy, which also stated as the main purposes of The United Nations
(UN). According to Hutt in World Economic Forum Annual Meeting (2016), world’s
economy has always been part of the major global issue that challenges all global
community, from private sectors to public sector. One country’s economic condition
can lead to another challenge for their country such as health and education,
unemployment rate, and long-term investment for infrastructure and development.
World’ economy can be also affected by one major incidents. For example, back in
September 2011, the world was shaken with a terrorist attack which also known as the
“9/11 Attack”. This attack had both immediate and long-term economic impacts, some
of which continue to this day” quoted from www.thebalance.com (2017).
However, quoted from kompas.com (2017), the International Monetary Fund

which also known as IMF, stated that the world’s economy is going stronger every
year. To amplify this statement, stated in www.nytimes.com (2018), the revival of
world’s economy has finally been achieved after a major economic downfall for the
past 10 years. Also stated in www.nytimes.com (2018), the number 3.9 percent arose
as the expected number of world’s economy growth in 2018, going up 0.2 percent from
3.7 percent in 2017 and 0.7 percent from 3.2 percent in 2016, according to the IMF.
The Figure 1.1 below represents the global economic growth from 2010 until
October 2017 and its forecast until 2020. It is divided into 3 categories based on their
real Gross Domestic Product (GDP) growth including: World; Emerging Market and
Developing Economies and; Advanced Economies.
1
2
REAL GDP GROWTH (PERCENTAGE)

World Emerging Market and Developing Economies Advanced Economies
7.4
6.4
5.4 5.4
5.1 4.9 5 5
4.7 4.6
4.3 4.3 4.3
3.5 3.5 3.6 3.6 3.7 3.7 3.7
3.4 3.2
3.1
2.1 2.2 2.2 2

1.7 1.7 1.8 1.7
1.2 1.3
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Figure 1.1 World Economic Outlook (October 2017)
Source: International Monetary Fund (2017)
From Figure 1.1 above, we can see that the numbers of world’s economic
growth keep on fluctuating from 2010. In 2015, the number drop to 3.4 percent from
3.6 percent in the previous year and the number keeps on decreasing until 2016. This
downfall was triggered because of several reasons. According to Rizal E. Halim, an
economy observer from University of Indonesia in an interview with
www.beritasatu.com (2015), these reasons includes, uncertainty in US & Eurozone’s
economic restoration; drop in oil prices; low economic growth rate in China and the
commodity’s price volatility (But since 2017, the numbers are starting to grow more
stable followed with the emerging market and developing economies’ growth numbers
that also increase more stable from 2016 onward. On the contrary, the numbers of
advanced economies’ growth are projected to decrease after 2017 unlike the other two.
With that being said, according to www.voaindonesia.com (2018) advanced
economies’ growth will decrease to 2.2 percent in 2018 from 2.3 percent in 2017, and
world’s economic growth will be more supported by the developing countries
(emerging market and developing economies).
3
Thus, to encourage the international cooperation and to promote global

economic growth, regional intergovernmental organizations are formed. One of them
is The Association of Southeast Asian Nations (ASEAN) Economic Community
which also known as AEC that comprising ten Southeast Asian developing countries
(for developing countries, exclude Singapore) namely Indonesia, Malaysia, the
Philippines, Singapore, Thailand, Brunei Darussalam, Cambodia, Laos, Myanmar, and
Vietnam, that aims to achieve higher levels of economic dynamism, sustained
prosperity, inclusive growth and integrated development of ASEAN (ASEAN
Economic Community Blueprint: 2008).
Out of those 10 Southeast Asian countries, the latest World Economic Outlook
report by the IMF which published on October 10th2017, stated the top five ASEAN
economies (Indonesia, Malaysia, Philippines, Thailand and Vietnam) that were
expected to grow over 5 percent at the end of 2017.
ASEAN -5 (INDONESIA, MALAYSIA, PHILIPPINES,

THAILAND AND VIETNAM)
8
6.9
7 6.2
6 5.1 5.2 5.2 5.3 5.3
4.7 4.6 4.9 4.9
5
4
3
2
1
0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
ASEAN -5 (Indonesia, Malaysia, Philippines, Thailand and Vietnam)
Figure 1-2 ASEAN-5 Economic Growth from 2010-2020
To be more specific, in 2017 the economic growth for each country was
expected to reach 5.2 percent for Indonesia, 5.4 percent for Malaysia, 6.6 percent for
the Philippines, 3.7 percent for Thailand and 6.3 percent for Vietnam
(www.thejakartapost.com ; 2017)
4
For Indonesia itself, although in the 3rd quarter of 2017 the number of its
economic growth (5.06 percent according to Central Bureau of Statistic of Indonesia)
is still left behind from the other ASEAN countries such as Vietnam (7.46 percent)
and Philippines (6.9 percent) also in the 3rd quarter of 2017 (katadata.co.id; 2017),
according to kompas.com (2018), at the end of 2017 Indonesia has finally reach its
highest number of economic growth since 2014 in the number of 5.07 percent.
INDONESIA'S ECONOMIC GROWTH

(PERCENTAGE)
8
6.81
7 6.44 6.19
6 5.56
5.02 4.79 5.02 5.07
5
4
3
2
1
0
2010 2011 2012 2013 2014 2015 2016 2017
Real GDP Growth
Figure 1-3 Indonesia's Economic Growth from 2010-2017
Source: The Central Bureau of Statistic of Indonesia. Processed by Kompas.com

(2018)
The figure above shows that since 2010, the numbers of Indonesia’s economic
growth are decreasing every year until 2015 though the difference number between
them are vary from one to another. This downfall, according to www.bbc.com (2016)
and www.worldbank.org (2014), was caused by the weakening in investment growth
and exports number; low commodity’s price and consumption rate. Finally, the
number manages to gain 0.23 percent to 5.02 percent in 2016 and then gain another
0.05 percent to 5.07 percent in 2017. According to Sido Muncul (2018), this
improvement was supported by the increasing number of consumption rate, increase
in main commodity’s price, and government expenditure (especially the infrastructure
sector). With this number supported with the current global economy condition that
5
mentioned in the earlier part of this chapter, stated by Teddy Oetomo as the Head of
Intermediary of PT Schroders Investment Management Indonesia in kompas.com
(2018), the number 5.4 percent as the target of Indonesia’s economic growth rate in
2018 are considered reachable as long as the consumption rate are stable.
Hence, to be able to obtain the number above, Indonesia needs to drive more
carefully the factors that will affect the economy. One of them is, as stated in
www.worldbank.org in December 2017, export activities could help Indonesia to
strengthen its economy. The volumes of export and import activities in Indonesia are
recorded to grow into 2 digits for the first time since 2012.
Value: Million Dollar
Table 1-1 Number of Indonesia’s Exports (Free on Board)
2016 2017 Contribution

(%)
Dec Jan-Dec Nov Dec Jan-Dec
Jan-Dec 2017
Oil and Gas 1 250,2 13 105,5 1 280,0 1 509,9 15 738,3 9,33
- Manufacturing 109,9 872,0 119,4 121,2 1 639,6 0,97

Industry
- Gas Procurement 9,2 44,4 5,2 2,9 76,0 0,05
- Mining 1 131,1 12 189,1 1 155,4 1 385,8 14 022,7 8,31
Non-Oil and Gas 12 582,2 132 080,7 14 040,2 13 281,3 152 990,3 90,67
Total 13 832,4 145 186,2 15 320,2 14 791,2 168 728,6 100
Source: The Central Bureau of Statistic of Indonesia
As seen in the table above, Indonesia’s exports are divided into two
categories, Migas (Oil and Gas) and Non Migas. Indonesia’s non-oil and gas exports
including vegetable/animal fats/oils, rubber, coffee, tea and spices, and many more. In
December 2017, the total number of Indonesia’s export reached 14.791,2 million
dollars. It is 3,45 percent lower than the previous month November 2017 (15.320,2
million) but 6,93 percent higher than December 2016 (13.832,4 million).
6
Cumulatively speaking, the total number of Indonesia’s export in January-

December 2017 (168.728,6 million) has increased 16,21 percent from the same period
in 2016. These numbers were mostly contributed by the non-oil and gas exports with
90,67 percent of contribution in January-December 2017, as shown in column number
6. According to The Central Bureau of Statistic of Indonesia, the largest commodity
of non-oil and gas exports in January-December 2017 is animal/vegetable fats and oils
followed with mineral/fossil fuel, machinery and electrical appliances, vehicles and
parts, pearls/gems/jewelry, ore/slag/metal ash, iron/steel, and coffee/tea/spices. Also
stated by The Central Bureau of Statistic of Indonesia, top destination for non-oil and
gas commodity exports are China (13,94 percent), United States (11,20 percent) and
Japan (9,60 percent).
With that number though, according to liputan6.com (2018) Indonesia’s

export still left behind from other ASEAN countries. Even Vietnam has managed to
surpass Indonesia. The President of The Republic of Indonesia, Joko Widodo, stated
that Thailand manage to reach US$231 million in their export activities, followed with
Malaysia with 184 million U.S Dollar and Vietnam with 160 million U.S Dollar, while
Indonesia still in the number of 145 million U.S Dollar.
One of many commodities that have been traded across the countries are herbal
and traditional medicines/supplements. The use of traditional medicines has been
acknowledged by a widely scope of global community starting from low to medium
income countries (www.searo.who.int). Stated by Prof. Dr. Ernawati Sinaga as the
Head of Research in Jakarta National University in her interview with beritasatu.com
(2016), according to World Health Organization, the use of traditional or herbal
medicines in all over the world are getting better. Until this day, 80 percent of world’s
population use traditional medicines. Adding up to this statement, according to Global
Industry Analysts, Inc. (2017), the global market for herbal supplements is projected
to exceed US$ 140 billion by 2024 driven by the numerous benefits given whether to
cure disease, preventive care and help to maintain one body’s immune.
7
Figure 1-4 Global Herbal Medicine Market Revenue 2014- (estimated) 2024
Source: www.hexasearch.com (2017)
Since 2014, the number keep increasing until it reaches US$ 71.19 billion in
2016 from US$ 63.05 billion in 2014, and US$ 66.99 billion in 2015. This
improvement was mainly caused by the increasing preference of customers toward
traditional medicines in which traditional remedies does not have a side effect such as
overdose toxity. These traditional remedies including Ayuverda (traditional healing
system from India); Unani (traditional treatment originally from Greece) and
Traditional Chinese Medicine.
In 2014, according to the Ministry of Trade of Indonesia, the use of traditional

medicines in developed countries also showing a good number such as France (49
percent), Canada (70 percent), England (40 percent), and the United States of America
(42 percent). As in October 2017, according to Global Industry Analyst Inc., other
herbal supplements that popular across the globe for their benefits as an immunity
builder, memory booster and anti-depressants includes Garlic; Ginkgo Biloba;
Ginseng and Echinacea, with Europe as the largest market of herbal supplements and
remedies.
Thus, what exactly a traditional herbal medicine is? According to Firenzuoli &
Gori in 2007, herbal medicine defined as the application of medical plants for
prevention and treatment for diseases. Moreover, according to World Health
Organization (2013) which also known as WHO, traditional medicines include
8
herbs/herbal materials, herbal preparations, and finishes herbal products that contained
certain or whole parts of a plant. Although in some countries, herbal medicines may
contain other natural organic or inorganic active ingredients that are not part of a plant
(e.g. animal and mineral materials) where this practice was usually driven by tradition
force.
Moving along with the shifting in herbal and traditional medicines market,
Asia-Pacific emerge as the fastest growing market because of its cultural affinity to
herbalism and a confident consumer with the safety of herbal ingredients. Thus, China
and India are the two most well-known countries in Asia-Pacific who can provides a
fertile environment for the growth of modern herbalism in the region (Global Industry
Analysts, Inc., 2017).
According to the Ministry of Trade of Indonesia in 2014, the use of traditional

medicines in Asia is also keeps on increasing from time to time. Even though there are
many kinds of modern medicines, the use of traditional herbs in China reaches 90
percent of its population. In Japan, 60-70 percent of Japanese doctors prescribe a
traditional medicines to their patients, while in Malaysia the doctors use melayu’s
traditional medicines and other traditional medicines from India.
Indonesia though, is a tropical country which also located in Asia-Pacific

region with many kinds of herbs that have been used for traditional medicines for
generations (Elfahmi, Woerdenbag, & Kayser, 2014). The use of traditional medicines
in Indonesia is believed to be part of national cultivation that can continuously be
explored, examined, developed and optimized for their benefits. One of Indonesia’s
traditional medicine known as jamu. Since 2008, jamu has been declared as Indonesian
brand by the President of The Republic of Indonesia at that time, Susilo Bambang
Yudhoyono (World Health Organization - South East Asia Regional Office, n.d.).
Figure 1-5 The Logo of Jamu

Source: www.1001obat.com
9
According to Elfahmi, Woerdenbag, & Kayser (2014), the word “jamu” came
from Javanese tribal language, meaning the traditional medicines from plants. Later
on, jamu has been adopted into Bahasa Indonesia with the similar meaning. In its
further development, Jamu has big potential with the biodiversity that Indonesia has.
Indonesia has 30.000 kinds of plant species and up until 2017, there are only 350 of
them that have been utilized and officially registered for their medical use (Sido
Muncul, 2018; Elfahmi, Woerdenbag, & Kayser, 2014). Hence, a sustainable
innovation and promotion are two things that are crucial to be done by herbal
medicines industry in order to have a promising position in local and global market.
According to The Ministry of Trade of The Republic of Indonesia, the export

number for jamu industry are continue to grow each year. From 2012, jamu export
number are in 21 trillion rupiah, in 2013 the export number increased to 49 trillion
rupiah, and in 2014, the number reach 66 trillion rupiah.
Until the end of 2017, there were 986 of jamu and traditional medicines
industries recorded in Indonesia. 102 out of them are traditional medicines industries
(Industri Obat Tradisional or IOT) while 884 of them are consist of both small
enterprises of traditional medicine products (Usaha Kecil Obat Tradisional or UKOT)
and medium enterprises of traditional medicine products (Usaha Menengah Obat
Tradisional or UMOT). The Indonesian government continues to broaden the
opportunity of market expansion through export activities and economic collaboration
with national industry of jamu by carry out a comprehensive free-trade agreement (The
Ministry of Industry of The Republic of Indonesia, 2017). In line with the
government’s Master Plan of National Industrial Development for 2015-2035
(Rencana Induk Pembangunan Industri Nasional or RIPIN), jamu industry along with
cosmetic industry is the priority sector because of its huge role in steering the national
economic growth. Up until now, jamu has been exported to the Middle East,
Hongkong, Malaysia, Philippine, Singapore, Thailand, Japan, South Korea, Australia,
Europe and United States of America countries (Sido Muncul, 2017). Nonetheless, the
market share for jamu industry in the global marketplace has only reached the number
of 15 to 20 percent.
Sido Muncul is a leading herbal supplements and traditional medicines (jamu)

industry in Indonesia with their most well-known brand, Tolak Angin. Their long
10
journey in building up its reputation by continuously innovating through research

initiative has made Sido Muncul holds the biggest market share in the industry. In
order to meet the demand in traditional medicine and herbal supplement products, Sido
Muncul associated with the local farmers to produce high-quality raw materials and in
this case, the natural resources. Equipped with sophisticated facilities and technologies
along with an appropriate cooperation in research and development activities with
research institutions and universities, Sido Muncul believe that their products are
capable and strong enough to compete in a global marketplace.
According to Wirayani from thejakartapost.com in 2015, Sido Muncul reach

the global market through individual distributors or store who purchase the products
in Indonesia and carrying it to other country (indirect export). Throughout their
business activities, Sido Muncul manage to expand their business by externalizing to
15 countries across the globe including Malaysia, Brunei, Singapore, Philippines,
Myanmar, Suriname, South Africa, United States of America, Nigeria, and European
countries.
As for now, Sido Muncul continues to enhance its international experience by

opening up a new representative company and branch office as well as selecting
distributors in some other countries (Sido Muncul, 2017). This statement was proven
with a new branch office in the Philippines opened by Sido Muncul on June 5th2017,
in partnership with a local institution in order to boost the effectiveness of an importing
and marketing activities in the Philippines. In addition, Sido Muncul also established
“Muncul Nigeria Limited” located in Nigeria, which is a business entity that acts
according to Nigeria’s commercial law with the intention of supporting the process of
import activities and to control Sido Muncul’s product that are sold in Nigeria (Sido
Muncul, 2018; Hariyanto & Firhand. A, 2018 in industry.co.id).
Thus, in their annual report in 2017, Sido Muncul stated that while still focus
on playing in domestic market, they wish to keep increasing their export activities
(especially to ASEAN countries) to boost up the export contribution to their revenue
which according to Mr. Johan Hidayat⸺ one of the interviewed respondents in this
research⸺ stated that the contribution of their export activities is still very small,
approximately less than one percent out of total revenue. Ultimately, Sido Muncul
11
wishes to give a significant impact to the growth of Indonesia’s herbal supplement and
traditional medicine industries domestically and internationally.
Hence, if Sido Muncul wish to increase their export activities by doing

internationalization, there are several crucial decisions they have to made in order to
choose which market is suitable for their product including, the international market
selection process. According to (Górecka & Szałucka, 2013), “The country market
selection plays a critical role in shaping the performance of foreign activites and
influences the future success of the company”. Since the nature of international
business environment tends to be complex and challenging to enter, it is important for
business practitioners to take a careful consideration regarding the characteristic of a
specific country (potential country) as well as to recognize the risks before entering
the foreign market, considering the time, effort, and expenditure that will be spent over
the decision process. Some literature also mentioned that country-specific and firm-
specific factors can be considered as important factors that influence the decision of
market expansion before selecting the international market (Zhao, Shen, Asce, & Zuo,
2009 in Che Maznah Mat Isa, Hamidah Mohd Saman, & Siti Rashidah Mohd Nasir,
2014).
Therefore, to address this issue, a company needs to identify its situation

regarding their internationalization experience first, look further into the environment
(country-specific or firm-specific) that may influence company’s performance in
global market and thus affecting their decision in selecting the foreign markets.
Finally, a systematic sequence of steps in international market selection process are
identified in this research that may benefits Sido Muncul in choosing their foreign
market.
1.2 Problem Identification
1. How is the international experience or the internationalization of PT Industri

Jamu dan Farmasi Sido Muncul Tbk?
2. What are the international competitiveness of PT Industri Jamu dan Farmasi
Sido Muncul Tbk?
12
3. Based on the criteria used by the company, what systematic approach that can
be developed to assist PT Industri Jamu dan Farmasi Sido Muncul in choosing
their international markets?
1.3 Research Objective
1. To look out for the international experience or the internationalization of PT

Industri Jamu dan Farmasi Sido Muncul Tbk.
2. To identify the international competitiveness of PT Industri Jamu dan
Farmasi Sido Muncul Tbk.
3. To formulate a systematic approach recommendation for PT Industri Jamu
dan Farmasi Sido Muncul Tbk to assist the company in choosing their
international markets, based on the criteria used by the company.
1.4 Research Benefit
1. For the company – PT Industri Jamu dan Farmasi Sido Muncul

The findings of this research can help the company to understand better of
their internationalization process and to recognize the situations happens in
the herbal medicine/supplement industry, as well to look out for the
proposed model in this research concerning their international market
selection screening process.
2. For the author – academic purposes
This research helps the author in understanding the internationalization
process of a company which can vary among companies in different
industries as well as the implication of the countries segmentation in the
market selection process in a company. This research also assists the author
to gain better knowledge in a real-life situation and compare it with the
theoretical learning.
3. For the readers and other parties
This research could help readers and other parties to gain wider information
regarding the internationalization process of a company along with the
information of several models presented in this research such as Porter’s
Diamond Model and Five Forces Model especially in herbal supplements
13
and medicines industry-related. Findings of this research could also

provide information concerning steps that may be taken in selecting the
foreign market to export and which are the criteria used for that matter.
1.5 Scope of Research
The focus of this research is to analyze the internationalization process of PT

Industri Jamu dan Farmasi Sido Muncul Tbk only, define the firm’s international
competitiveness through Porter’s Diamond Model, Five Forces Model and SWOT
analysis, aw well as to propose a two-step semi-systematic market selection process
using knock-out criteria as preliminary screening and GE/McKinsey matrix to fine-
grained screening. The scope of this research only until the topic of
internationalization, international competitiveness, herbal medicine/supplement
industry, and international market selection process, especially for Sido Muncul. This
research is done with a qualitative method, with using in-depth interview as primary
data collection technique which consist three informants from Sido Muncul. These
informants are the owner of Sido Muncul and part of the commissioner all at once, the
general management of export department in Sido Muncul, and the investor relation
of Sido Muncul. To support the data gathered from the interview, the author also use
questionnaire that distributed online to 59 random respondents.
1.6 State of the Art
Title, Year, Methods Conclusion Adaptation

No
Author, Volume,
.
Pages
Country Market Quantitativ Multi Criteria Preliminary

Selection in e Decision Aiding Screening using
International Mehtod can be ‘knock-out’
1 Expansion Using used to solve the criteria with total
Multicriteria market selection population and
Decision Aiding problem for established
Methods
14
international countries
expansion. eliminated.
Dorota Górecka &
Małgorzata
Szałucka
Vol. 8; pg. 31-55
Multiple Criteria
Decision Making
2013
Specific-factors Quantitativ Factors that The author studied

influencing market e influencing the the understanding
selection decision firms’ decision in market selection as
by Malaysian choosing their well as firm
construction firm market abroad international
into international were intensity of competitiveness.
market competition,
existence of strict
2 quality
Che Maznah Mat requirements,
Isa, Hamidah proximity to
Mohd Saman & competitors and
Siti Rashidah host country and
Mohd Nasir firm international
competitivess.
Vol. 129; pg. 4-10

15
Social and
Behavioral
Sciences
2014
Delineating Qualitative Proposed IMS The author study

Foreign Market methodology more of
Potential: A Tool (Foreign Market international
for International Opportunity market selection
Market Selection Analysis) by literature and
assessing the definitions
industry market
Ayse Ozturk, Eric potential
Joiner, and S.
Tamer Cavusgil
Vol. 57; pg. 119-

141
Thunderbird
International
Business Review
2015
Internationalizatio Qualitative H&M and Zara did The author studied

4 n Process of Fast not entirely more on
Fashion Retailers: correlate with the internationalizatio
16
Evidence of H&M Incremental and n using Uppsala

and Zara Rapid Model.
Internationalizatio
n Models
Ziying Mo
Vol. 10; pg. 217-

236
International
Journal of
Business and
Management
2015
Using the General Quantitativ For the company The author adopts
Electric/McKinsey e to start direct the GE/McKinsey
Matrix in the export and giving Matrix and several
Process of up intermediaries criteria from the
Selecting the and open an literature.
Central and East agency on each
European Markets. market in A Class
5
countries
Vol. 19; pg.59-66
Management
Strategies Journal
17
Nicolae-Răzvan
Decuseară
2013
Source: Author (2018)

18
CHAPTER 2
LITERATURE REVIEW
2.1 Definition of Internationalization
The developments of global economy are now coexistence with the economic
globalization that portrays the trend of firms buying, developing, producing and selling
products and services from local market to cross-border region by doing
internationalization (Hollensen; 2017). For each country, international activities can
be one of the factors that will influencing their economy. With that being said, the
higher contribution of firms’ international activities (such as exporting) can leads to a
better economic condition, which means more prosper one country can be. It also has
a positive impact for the party or firms who are conducting the internationalization
itself. Why? Because when they are decided to expand their sales by entering foreign
markets, this international expansion can provide new and potentially more profitable
markets, help to increase the firm’s competitiveness, and facilitate access to new
product ideas, manufacturing innovations and the latest technology (Hollensen; 2017).
Internationalization defined as a process in which firms increasingly aware of

the vital importance of international trade to their future development, both directly
and indirectly, and then trade with other nations, according to Beamish, 1990 in Welch
& Paavilainen-Mäntymäki (2014). Other definition according to Welch &
Loustarinen, 1988 in Welch & Paavilainen-Mäntymäki (2014), internationalization is
“a process of increasing involvement in international operations”.
2.1.1 Internationalization Theories
For the past 40 years, many researchers took their opportunity to conduct a
research concerning the internationalization of companies using various basic theories
and the internationalization model implicit to the theories. In this section, author will
describe the common theory that is mentioned amongst those researches, that is the
Uppsala Model.
19
20
2.1.2 The Uppsala Model
This theory emerges as a number of Swedish researcher specifically came from

the University of Uppsala during the 1970s namely Johanson and Wiedersheim-Paul,
1975; Johanson and Vahlne, 1977, decided to focus their research on firm’s
internationalization process. These researchers studied the internationalization of four
Swedish companies regarding steps taken by those companies to internationalize.
Instead of starting immediately with a great number of foreign direct investment, the
researcher discover that those companies started their international operation from a
small steps of activities development, then gradually followed with a development in
operations abroad (Oliveira, Figuera, & Pinhanez, 2017).
The basic view of Uppsala Internationalization Model is that firms are more
motivated to increase their commitment to enter foreign markets along with an
improvement in their experience in domestic market. As previously mentioned, the
Uppsala’s researchers found that Swedish companies took small incremental steps to
internationalize. These has been done with first, the companies move forward to start
their operations abroad in market/countries that geographically close with small
psychic distance. Second, the companies have the tendency to enter the new markets
through exports. Sales organization or manufacturing subsidiaries of their own is
something that is very rare to do by the firm in the beginning of their international
operations (Hollensen, 2017). Stated by Mo Ziying in 2015, this Uppsala
Internationalization Model was identified within incremental approach
internationalization that explained the simple way for a company to internationalize
which starts off with simple steps to complex operations implying a step-by-step
process.
These arguments also supported by a recent research conducted by Mo Ziying

in 2015 that focused on the internationalization process, that The Uppsala
Internationalization Model, frequently abbreviated as U-Model, consisted of two sub-
models namely; the Establishment Chain by Johansson and Wiedersheim-Paul (1975)
and the Internationalization Process Model by Johanson and Vahlne (1977) which
describes the two patterns of internationalization at the operational level. First, an
improvement in firm’s commitment of resources to the specific market is indicated by
entering new market according to the establishment chain (Johansson and
21
Wiedersheim-Paul, 1975). The next pattern by Johanson and Vahlne (1977) discussed
that the firms enter the new market with small psychic distance before expanding to a
greater one. Psychic distance itself defined as preventing and disturbing factors that
will intervene in the flows of the information between the firm and the market
(Francioni, 2014). Hence, according to Dow (2000) in Francioni (2014), the factors
mentioned above may be referred as the differences in language, cultural, political
systems, level of education, as well as the industrial development. In addition, even
though there are numbers of literature that distinguish the significant difference
between the ‘cultural distance’ and the ‘psychic distance’, there are even more works
of literature that used “cultural distance” and “psychic distance” interchangeably.
Especially for IMS, psychic/cultural distance has been extensively used in the
international business literature as one of the most important factors that influencing
the decision on selecting the foreign markets (Francioni, 2014).
Therefore, according to Johanson and Wiedersheim-Paul (1975), there are four

distinguish modes of entering international market where the higher number of the
stage indicates the higher degrees of international involvement/market commitment
(Oliveira, Figuera, & Pinhanez, 2017; Hollensen, 2017) Those stages are:
 Stage 1: no regular export activities

 Stage 2: export via independent representatives (export modes)
 Stage 3: establishment of a foreign sales subsidiary
 Stage 4: foreign production/manufacturing units.
22
Figure 2-1 Internationalization Model
Source: Hollensen (2017) Adapted from Forsgren and Johanson (1975)
2.1.3 Internationalization Motives
The essential motive for firms in doing internationalization is the urge to make
profits out of it. But, aside from making money, the literature shows that there are
several factors that motivate firms to do internationalization including, internal factors
and external factors (Kubíčková, Votoupalová, & Toulová, 2014). All the affecting
factors that came from within the company is categorized as the internal factors, while
external factors are those factors that arose from the external environment of the
company, domestic or foreign (Mwiti et al., 2013 in Kubíčková, Votoupalová, &
Toulová, 2014).
According to Hollensen in his book called Global Marketing 7th Edition

(2017), internationalization motives are divided into two categories namely, the
proactive and reactive motives. Proactive motives often made from internal decision
of the company which based on the desire to maximize their strategy or even endeavor
a strategy change, to utilize their unique competence or market possibilities. Differ
from proactive motives, reactive motives came from how firms respond to pressures
or threat from external environment in its home market or foreign market and adjust
their activities accordingly (Kubíčková, Votoupalová, & Toulová, 2014; Hollensen,
2017).
23
Table 2-1 Major Motives for Starting Export
Proactive Motives Reactive Motives
 Profit and growth goals  Competitive pressures
 Managerial urge  Domestic market: small and

saturated
 Technology competence/unique  Overproduction/excess capacity

product
 Foreign market  Unsolicited foreign orders
opportunities/market information
 Economic of scale  Extend sales of seasonal products
 Tax benefits  Proximity to international

customer/psychological distance
Source: Hollensen (2017) adapted from International Marketing and Export

Management, 2nd Edition, Addison Wesley (Albaum, G., Strandskov, J., Duerr, E. and
Dowd, L., 1994)
2.2 Global Marketing
The competitions between firms are more competitive from time to time. In
this era of globalization, it is more likely to find firms that have a presence more than
one domestic market whether directly (company subsidiaries) or indirectly
(exporting). Thus, the shift on opportunities to expand the business into international
environment have encourage firms to go global and develop international marketing
strategies in a global scope afterwards (Chabowski, Samiee, & M. Hult, 2013). In
addition, with communications and logistic networks became more integrated, many
markets are converging which also trigger firms from all over the world to expand
their operations on a global scale. Meanwhile, marketers are facing more economic
and cultural heterogeneity because of the international market that becoming more
diverse, which means there are more challenges for firms in adapting to different
market with diverse demand, which require a different skills and resources while
attempting to transfer knowledge between the existing markets and the new markets
(Douglas & Craig, 2011).
24
Hence, according to Hollensen in 2017, “global marketing is defined as the

firm’s commitment to coordinate its marketing activities across national boundaries
in order to find and satisfy global customer needs better than the competition”. This
implies that the firm is able to:
- Develop a global marketing strategy, based on similarities and differences

between markets;
- Exploit the knowledge of the headquarters (home organization) through
worldwide diffusion (learning) and adaptations;
- Transfer knowlege and ‘best practices’ from any of its markets and use them
in other international markets.
Another literature, according to Dacko in his book titled The Advanced

Dictionary of Marketing: Putting Theory to Use (2008), global marketing is basically
a marketing activity(s) done by a firm on a worldwide scale which means, firms
adopted the same promotional strategies around the world. It is necessary for firms
that decided to be involved in global marketing to commit themselves and applying
their assets as well as competencies on a broad international scale where global
operations are managed to meet global objectives.
Therefore, before they decided to actually involve in global marketing, one

must first define their management’s orientations toward global market opportunities
such as: “foreign people, ideas, resource” (Perlmutter, 1969 in Verbeke & Kano,
2015). Hence, according to research done by Perlmutter (1969) and Chakravarthy et
al. (1985) that focused on those orientation, there are four distinction firm’s point of
view namely, the ethnocentric, polycentric, regiocentric and geocentric (EPRG)
(Verbeke & Kano, 2015; Hollensen, 2017).
- Ethnocentric: home country-oriented. The primary market for this kind of

oriented firms is always their regional or local market. Firms set their focus on
maintaining the domestic market position and eventually reach the foreign
market with the same strategy as the national market (Wach & Wojciechowski,
2014). Hence, controls in foreign country are highly centralized and the
organization and technology implemented in foreign locations will be largely
the same as in the home country (Hollensen, 2017)
25
- Polycentric (multidomestic): firms sees each country as a unique individual

and should be treated in a different way (Hollensen, 2017). With this principal,
firms will be able to maximize their profits in foreign countries using a
different strategy that may be vary depends in host/local market conditions.
Polycentric oriented firms aim to make sure their success in many regional
markets, where they have their regional subsidiaries (Daszkiewicz and Wach,
2012 in Wach & Wojciechowski, 2014). Polycentric oriented firms also have
a limited communication between headquarters and their associates with the
control among affiliates is highly decentralized (Hollensen, 2017).
- Regiocentric: firms consider the world are divided into several regions (e.g.
Europe, Asia, the Middle East). Thus, firms try to combine several
homogeneous countries into one region and treating that region as a single
market among others.
- Geocentric (global): firms whose adapt this orientation apply a standardized
marketing concept in all operating countries and low differentiation. While
regiocentric oriented firms view the world as several regions, a geocentric
oriented firm wishes to achieve their international competitive advantage by
minimizing the unit cost of production and see the world as one single, identical
market (Wach & Wojciechowski, 2014). But, although they may have
universal products applicable to global market, those products are also adapted
to the local standards.
2.3 Firm’s International Competitiveness
In reality, not every company is capable enough to participate in the global

market. To be able to compete in international competitive arena with other
competitors, one must have first recognized their competitiveness with several
elements including resources, competences, and their relations to others in the
international area (Hollensen, 2017). Therefore, according to Hollensen in 2017, to
help firms to understand the development of international competitiveness in a broader
perspective, a model in three stages emerges:
1. Analysis of national competitiveness (the Porter diamond) – macro

level;
26
2. Competition analysis in an industry (Porter’s five-forces) – meso level;

3. Value chain analysis – micro level:
b) Competitive triangle;
c) Benchmarking.
However, in this research author will address the firm’s competitiveness

through first, at macro level to analyze the national competitiveness of the firm using
the Porter diamond model and second, at meso level to analyze the competition in the
industry using Porter’s five forces and SWOT model (Strengths, Weaknesses,
Opportunities and Threats) as an addition.
Figure 2-2 Development of a Firm's International Competitiveness
Source: Hollensen, S. (2017). Global Marketing 7th Edition
27
28
2.3.1 Analysis of National Competitiveness - The Porter Diamond
Although many companies already competing in the global market, the

characteristic of the home country plays a crucial role in shaping the firm’s
international competitiveness with its distinctive factor(s) that may drive the
competitive advantage of a nation, according to Hollensen (2017). With an accurate
combination between the national competitiveness and the firm’s proactive/reactive
action, eventually this will generate competitive advantage for firm to compete in
particular industry, at domestic level. According to Chaabna and Wang in 2015, a large
and gradually growing domestic market will support the producers to create more or
improve the technology and efficiency to reach adequate economies of scale, as Porter
believe.
On the contrary, while domestic market plays an important role in shaping

company’s competitiveness, Porter believes that the company’s ability to initiate
innovation and compete with its competitor can also create a competitive advantage
for a nation (Riasi, 2015).
 Factor Conditions
Factor conditions are usually the first point of Porter’s Diamond Model to
be observed. According to Bakan & Doğan (2012), factor conditions refer to
the inputs where can be used in the production process by a company to
compete in a particular industry. There are two kinds of factor conditions in
which Porter’s Diamond Model are referring to, they are the basic factors and
advanced factors. Basic factors include geographic area, natural resources,
unskilled labor, raw materials, and climate conditions which usually inherited
and require little or no investment at all to be utilized in the production process.
Which is why, Porter considers that the key of a good production factor is
rather “created” than “inherited” and thus, advanced factors were created.
Advance factors are mostly basic factors that upgraded through investment and
specialized becoming real value creation (e.g. sophisticated technologies and
research facilities, skilled labor) (Smit, 2010).
Competitive advantage from factor conditions can emerge depending on

how effectively and efficiently the factors are used. More importantly, the
29
specific condition of how to obtain those factors (access to the factors) is also
important. Easy access to a big number of quantities of production factor can
cause “inefficiency” in processing those factors. On the other hand, the
shortage in the number of quantity of a factor will constrain the companies to
initiate a more effective innovation.
 Demand Conditions
The demand conditions in a domestic market also identified by Porter as a

source of competitive advantage for a country (Smit, 2010). Demand
conditions refer to the situations of domestic demand in the specific industry
which will have a good impact on the competitiveness if the demand conditions
are increasing (Chaabna & Wang, 2015). According to Riasi (2015), Porter
argues that fast growing domestic market will encourage the producers to build
up their technologies and efficiency. Alongside with the size of the home
demand, the sophistication of home country buyer is also essential in this
matter hence, the customer’s preference and expectation regarding particular
products and/or services (e.g. quality and price) are important to be realized by
the firm which can also drive their competitiveness by competing with each
other to give the best experience to their customer (Smit, 2010).
With all the competition going on between firms with the pressures from
the demand conditions in the domestic market, this will intially help the firm
in processing their factor conditions which will make them ready to compete
internationally (Bakan & Doğan, 2012).
 Related and Supporting Industries
As the company’s business operation in an industry also affected by the

external environments, this element refers to the accessibility of correlations
between the supporting industries and the firm in which this relationship will
develop firms’ competitiveness by improving the quality of the products or
services, and also support the development of the product itself. For example,
this element can refer to the raw material suppliers, research organizations,
distributors and retailers, and laboratory facilities (Chaabna and Wang, 2015).
The industry’s suppliers can create the potential for comparative advantage
30
where they can provide new methodologies and opportunities to utilize new
technology so that they can produce input for the industries more efficiently
(Tasevska, 2006 in Bakan & Doğan, 2012).
Porter believe, that the success of an industry is associated with the

presence of suppliers and related industries within a region. He also argues that
it is very unlikely to find one single successful industry without challenging
yet supportive and related industries (Bakan & Doğan, 2012). According to
Tasevska (2006) in Bakan & Doğan (2012), those that are included in related
industries are organizations with their activities allocated in the value chain
when competing or organizations that produced the complements goods.
Additionally, the supplier industries that have a competitive advantage also

could offer a potential competitive advantage for firms in several ways. First,
the firms will have an early yet effective access to the most cost-efficient input
(Nilsson et al., 2002 in Bakan & Doğan, 2012). Although these suppliers
provide a cost-effective and efficient input, they still take part into the
processing and upgrading those inputs which will drive other firms in the chain
to innovate more as well. Second, the continuation of the coordination between
buyer industries and supplier industries will have a better prospect regarding
innovation and upgrading process (Nilsson et al., 2002 in Bakan & Doğan,
2012). With a relatively close relationship between the related industries, this
will provide a faster respond to the market change and trends (Kuah et al., 2005
in Bakan & Doğan, 2012). Lastly, the competitive advantage that can also arise
when there is a close relation between the supplier industries and buyer
industries are, firms will be able to take more advantage on cost-efficient from
acquiring input if the supplier industries are tightly competitive. Moreover, this
situation becomes more reinforced when the suppliers themselves are powerful
and is an important global rival (Nilsson et al., 2002; Porter, 1998; Naserbakht
et al., 2008 in Bakan & Doğan, 2012).
 Firms’ strategy, Structure and Rivalry
The next determinant of national competitive advantage in Porter’s

Diamond Model is firms’ strategy, structure, and rivalry. According to Smit
(2010), this element refers to the strategies, structure, and rivalry of a firm
31
which heavily adjusted with the nature of the domestic environment and that
there were significant differences in the business environment in other
countries. If the firm has the ability to manage and organized its strategy and
structure to meet the nature of the domestic rivalry, ultimately that could
support a nation to achieve its competitive advantage (with the innovation
came from the quality of the rivalry conditions) and helps the firm to compete
internationally (Bakan & Doğan, 2012).
According to Smit (2010), Porter also argues that rivalry is the most crucial
aspect in establishing a competitive advantage for both country and firm. He
thinks that domestic rivalry forces firms to be more cost competitive, more
innovative, and to encourage firms to perform a better quality of a product
and/or service.
 Government and Chance
Other than four elements that were explained above, Porter added two extra
determinants in the model that can importantly affect the national
competitiveness. Those two elements are government and chance factor.
Despite the fact that these elements were introduced as additional variables,
they have a significance important role that affects all of the main four elements
(Bakan & Doğan, 2012).
Specifically for the government, they have the authorities and the power to
make the policies and the regulations which may benefit or even affect the
competitiveness of a country and an industry. In fact, government shapes and
influences the situations of the factor and demand conditions, the related and
supporting industries, together with the firms’ strategy, structure, and rivalry.
The best term to describe the effect of these two elements in the model is that
whether the government role or chance factor acts as a “catalyst” or a
“challenger.” (Bakan & Doğan, 2012)
32
Figure 2-3 Porter Diamond Model
Source: www.marketingmixhub.com
2.3.2 Industry Competition and SWOT Analysis
Other than understanding the national competitiveness, a firm needs to look

out the competitive environment in industry level. A competition analysis in the
industry level can be signified by further investigations regarding related actors in the
industry such as, the rivals, buyers, suppliers, potential new entrants, and substitute
products. Porter, again, in 1980 introduced a model in his published work called
Competitive Strategy, where the description of “five forces” model founded in the first
chapter of his work (Dobbs, 2014). Alongside with Porter’s Five Forces, SWOT
analysis also commonly used by companies to conduct analysis regarding its internal
and external potential of an organization.
 Porter’s Five Force Model
Determining the key factors that influence the competitive environment of

an industry provides a view into the structure of an industry and finally helps
the company to identify a position that is more profitable and less vulnerable
to attack (Porter, 2008). According to Porter, clever customers can force down
33
the price by putting the companies against each other, a powerful supplier may
slow down the company’s profits if they charge a higher price, a low barrier of
entry making the new entrants easily join the competition, and substitute
offerings that may lure the customers away.
These five forces that shape the industry’s competition are:
- The Threat of New Entrant⸺ which also known as the barriers to

entry⸺ talked about the new player in an industry that may increase the
“fierceness” of the competition in a market (Yunna & Yisheng, 2014). The
threat of new entrant has a negative correlation with the barriers to entry
which means, if the barriers to entry are low, then the threats of new
entrant are high, and vice versa. According to Porter (in Pringle &
Huisman, 2011), the new entrants of an industry wish to gain market share
which will put pressure on price as well as cost. Those new entrants are
also expected to bring some new capacity into the industry which will put
another pressure on the industry’s competition. Such barriers of entry can
be in the form of unequal access to distribution channel, sophistication of
the technology needed in the industry, capital requirements, and restrictive
government policy.
- The Power of Suppliers refers to the ability of bargaining power and the
controlling power of the suppliers that will affect company’s production
activity (Yunna & Yisheng, 2014). The bargaining power of suppliers
discusses how powerful a supplier is to charge a higher price of a product
and/or service they sell to the customer (in this case, the customers are the
player in an industry). On the other hand, the controlling power of the
suppliers refers to the difficulty level for the customer to obtain a
particular kind of resources. Hence, the suppliers are powerful if what they
are provides to the industry is unique so that the customers would have a
smaller chance as well as higher cost to switch supplier (Porter, 2008;
Yunna & Yisheng, 2014).
- The Power of Buyers. A strong buyer⸺ which is the opposite from the
power of suppliers⸺ is able to capture more value by demanding for a
lower price of product and /or service, wanting a better quality which will
require more cost, and generally putting the player in the industry against
34
one another which will also require more cost through innovating. A group
of buyers have a powerful bargaining power if: (1) the number of buyer
are small, but they buy a large amount of a specific product (usually
powerful in industries with high fixed-cost for example,
telecommunications equipment); (2) the industry’s product are
standardized or undifferentiated or; (3) the player in an industry only
depends on a limited group of buyers only (Porter, 2008; Yunna &
Yisheng, 2014).
- The Threat of Substitutes. According to Porter in 2008, the threat of
substitutes refers to products and/or services that can play the same or a
similar function and give the same or similar outcome as an industry’s
product in a different way. For example, a video conference is a substitute
to a business travel, a towel is a substitute for a tissue, etc. A high threat
of substitutes can cause a misery to one industry’s profitability depends
on the relative price and performance ratios in which options that satisfy
the customer the most (Yunna & Yisheng, 2014). Thus, the threat of
substitutes is high if the substitute provides a more attractive price-
performance offering and the switching cost for buyers to the substitute is
low. Therefore, if an industry does not prevent themselves from a more
attractive substitute product through marketing, quality performance, and
by any means necessary, it will suffer more in terms of profitability and
growth rate potential (Porter, 2008).
- Rivalry Amongst Existing Competitors refers to the intensity of the
competition between players in the industry. The rivalry among existing
competitors can take any forms of competition including, price discount,
product diversification, advertising, promotion, and after-service
performance (Porter, 2008). In some point, a high degree of the rivalry
among existing competitors can drives down an industry’s profit if there
are plentiful number of a player in an industry with almost the same in size
and power, the exit barriers are high (which can be the result from a highly
specialized assets or manager’s devotion to a particular business).
35
Figure 2-4 Porter's Five Force Model
Source: The Five Competitive Forces That Shape Strategy (Porter, 2008)
 SWOT Analysis
Identifying the elements of SWOT analysis⸺ which consist of strengths,

weaknesses, opportunities, and threats⸺ is a common investigation done by a
company in order to either developing corporate strategies or as an aid in
conducting analysis on competitiveness (Liu, Zhang, & Xu, 2010).
According to Badr & Taghvafard (2016) and Liu, Xu, & Zhang (2010), SWOT
model is a structured analysis of a business environment or situation which
involves research on factors that occur in their internal and external environment
that can affect the overall performance of that business.
There are two parts implicit in SWOT analysis, which are the internal factors
and external factors. Internal factors analysis is basically from the internal
components of the company while external factor analysis is generally related to
its external environments (Liu, Zhang, & Xu, 2010). Thus, SWOT analysis consists
of main elements, these are:
36
- Strengths (internal, positive factors) are the positive factors possessed

by a company or an industry which contribute positive advantage over
their competitors (Badr & Taghvafard, 2016).
- Weaknesses (internal, negative factors) are also factors comes from the
internal elements of a business or industry, which reduces the value
offered to the customer and may put them in a disadvantage upon their
competitors (Badr & Taghvafard, 2016).
- Opportunities (external, positive factors) are external, attractive factors
that can assist or help a company to improve their ability in their specific
industry (Badr & Taghvafard, 2016).
- Threats (external, negative factors) are the external factors that exist
around the business environment where it is beyond the company’s control
and could place the strategy or the business itself, at risk (Badr &
Taghvafard, 2016).
2.4 Deciding Which Market to Enter
These days, international expansion became a more common activity done by

firms who wanted to internationalize and widen their business scope. As stated by Che
Maznah Mat Isa, Hamidah Mohd Saman, & Siti Rashidah Mohd Nasir (2014), when a
firm decided to expand their business, it is required for them to examine their market
entry strategy in order to determine their suitable foreign market (market selection),
how to enter the market (entry mode decision), and when to enter the market (entry
timing decision).
37
The decision about international market expansion
Market Selection
Selection of entry mode
The Marketing Plan
The Marketing Organization
Figure 2-5 International Market Entry Strategy Process
Source: Kotler (2005) in Górecka & Szałucka (2013)
In this section, author will only focus on the market selection decision process which
is one of the most important stage of firm’s internationalization process⸺ without
regard to the mode of entry selected by firms (according to Brewer (2001) in Toften
& Hammervoll, 2011)⸺ and is critical for firm’s future success (Rahman, 2003;
Gaston-Breton & Martıń, 2011; He & Wei, 2011 in Marchi, Vignola, Facchinetti, &
Mastroleo, 2014).
2.4.1 Market Segmentation
Before selecting which market to enter, firms need to understand first what
kind of customer they want to serve which can be done by market segmentation.
Through market segmentation, firms can divide large, homogeneous markets
available throughout the world into smaller segments or groups that can be reached
more efficiently with products and services that suit the best with their unique
needs (Kotler & Armstrong, 2011). According to Sofjan Assauri (2015) in Ahmadi
& Herlina (2017), market segmentation is an action of dividing the market into
different types of groups based on their characteristic. Each group will be treated
38
differently by the firms⸺ in terms of the marketing mix strategy⸺ in order to have
the best way to deliver the value of their products or services into the market.
According to Ahmadi & Herlina (2017), segmentation is a marketing process
which cannot be underestimated by firms since its crucial for their future success.
With segmentation, firms would be able to alocate their resource accordingly and
focus on which market they want to enter. Segmentation also gives a more clear
view regarding the firm’s competency and position in the market. Thus, according
to Kotler & Armstrong in 2011, there are four major types of segmentations, these
are:
1. Geographic Segmentation. The purpose of geographic segmentation

is to divide the markets into different geographical units for example,
nations, states, regions, counties, cities, or maybe even neighborhoods.
2. Demographic Segmentation. The purpose of demographic
segmentation is to divide the markets based on variable such as age,
gender, family size, income, occupation, education, religion, race, and
nationality.
3. Psychographic Segmentation. Divides the consumer markets into
segments based on social class, lifestyle, and personality.
4. Behavioral Segmentation. This kind of segmentation divided the
buyers into segments based on their knowledge, attitudes, or responses
to a product.
2.4.2 International Market Selection
As stated by Ragland, Widmier, & Brouthers in 2015 “IMS strategy is

central to international marketing, critical to the success or failure of
multinational firms, and a determining factor in a firm’s international
performance.” Hence, according to Papadopoulos & Denis, 1988 (in Hollensen,
2017: 280), to recognize the “right” market(s) to enter is crucial for firm because
of several reasons, namely:
 For it can be the key determinant that will affect the success or failure
of a company, especially in the early stages of internationalization.
 The decision of the selected countries can influence the nature of
foreign marketing programs that will be applied in foreign countries.
39
 Geographic-wise, the location of the selected markets can affect the

firm’s ability to coordinate foreign operations.
With that said, Andersen and Strandskov (1998) in Ozturk, Joiner, & Cavusgil
(2015), defined international market selection (IMS) as “the process of
establishing criteria for selecting (country) markets, investigating market
potentials, classifying them according to agreed criteria and selecting which
markets should be addressed first and those suitable for later development.”
Papadopolous & Denis in 1988 (in Musso & Francioni, 2014) introduced
two traditional approaches to the IMS process, they are the systematic approach⸺
which analyzing the potential foreign market using a formalized decision process
including statistical methods⸺ and non-systematic approach which believes in
rule of thumbs and selecting the foreign market where usually without involving a
heavy consideration on a specific method. The systematic approach also can be
considered as a stage-wise process of IMS that covers several decision-making
activities such as problem identification, define the choice criteria, weight the
criteria, generate alternatives, rate the alternatives, and compute the optimal
decision. On the other hand, the non-systematic approach focuses more on how
firms actually select their foreign markets where usually concerning the well-
known concept, the psychic distance of Uppsala Internationalization Model
(Toften & Hammervoll, 2011). According to Johanson and Vahlne in 2009 (in
Marchi, Vignola, Facchinetti, & Mastroleo, 2014), psychic distance became more
of a core concept to IMS process if the knowledge regarding the international
markets are limited and there is also a high degree of uncertainty. Though
afterwards, the company would be able to operate internationally with a greater
psychic distance and greater differences in language, education and business
practices, if they already gain enough knowledge and experience regarding the
international markets (Francioni, 2014).
In light of this matter, existing literature concludes that selecting the

appropriate country or market to enter is not an easy task to carry out during the
decision-making process (Papadopoulos & Martıń Martıń, 2011). As a matter of
fact, an international market selection decision process in a real-life practice
showed that, averagely, firms tend to perform a reactive decision due to instability
40
in the external environment rather than go with the proactive systematic decision
in choosing their foreign market. But still, the firms who are choosing to implement
a systematic sequence of steps in IMS showed a better performance in terms of
duration of export, number of markets served and number of the market share, and
in term of technology obtained (Ozturk, Joiner, & Cavusgil, 2015).
According to Papadopoulos & Martıń Martıń in 2011, IMS is a part of a

broad decision-making set in which IMS model of a copmany should be flexible,
comprehensive and cost-effective and although there are various kinds of IMS
model proposed by different researcher in IMS literature (Koch, 2001; Kumar et
al., 1994; Root, 1994; Cavusgil, 1985 in Górecka & Szałucka, 2013), there has
been no agreement on what an “ideal” IMS process is (Papadopoulos & Martıń
Martıń, 2011).
Thus, in this research, the author proposes a two-stage market screening

process which involve the preliminary screening (screening) and fine-grained
screening (identification) (Gaston-Breton & Martıń, 2011; Górecka & Szałucka,
2013).
2.4.2.1 Preliminary Screening

Preliminary screening occurs when the researcher coarse-
graining the potential markets/countries using a macro-oriented
screening method based on several criteria and lowered down the
number of markets/countries available. The markets/countries
which are selected after going through the preliminary screening
will be observed further during the fine-grained screening phase.
According to Root (1994) in Górecka & Szałucka (2013),
preliminary screening in markets/countries selection is conducted
to help the researcher minimizing two possible errors. Firstly, it can
lessen the chance of overlooked countries with a good prospect by
applying preliminary screening to all potential markets/countries.
Secondly, it can minimize the time, effort, and money on
investigating countries with poor prospects by focusing on a widely
available secondary data and conduct a quick-simple preliminary
screening technique to eliminate the unattractive countries.
41
There are several methods used for preliminary screening with

different kinds of criteria depends on the product/service in the
industry. In this research, the author used the “knock-out criteria”
which is the criteria used for eliminating the country with the less-
attractive prospective beforehand. The criteria used for this knock-
out screening method is varied depends on which are the criteria
that is suitable the most with the company’s objectives and goals
concerning their international expansion activities (Górecka &
Szałucka, 2013)
2.4.2.2 Fine-Grained Screening - GE/McKinsey Matrix

Because of the limited sources owned by a company that limit
them to invest in all their potential markets, which is why the company
should select the most appropriate market efficiently and effectively. In
this research, the author implements GE/McKinsey Matrix which
basically, this model was developed by McKinsey and Co. For General
Electric company. This matrix has two dimensions, these are the market
attractiveness and competitiveness of the firms, and aims at analyzing
the strengths and weaknesses of the firm in various area.
According to Boyd and Walker in 1995 (in Decuseară, 2013),

there are five steps in shaping the GE/McKinsey Matrix, including:
1. Selecting the measurement criteria of market attractiveness

and competitive position
2. Weighting market attractiveness and competitive position
factors to reflect their relative importance
3. Evaluating the current position of each potential target
markets for each factor
4. Designing the prospect position of each market based on
expected trends of the environment, customers and
competition.
5. Assessing the implication of any changes in business
strategies and resource requirements.
42
Figure 2-6 GE-Mckinsey Matrix
Source:www.strategicmanagementinsight.com (2018)
The figure above shows the three areas in GE/McKinsey matrix

which divided into A countries, B countries, and C countries.
 A countries (Invest and Grow): Countries that is included

in this section are the primary markets that offer the best
opportunities for a long-term strategic development. On
markets that located in the A class countries, can
established their own permanent subsidiary and the
compant should, afterwards, done a future research on
the detailed program to enter that markets.
 B countries (Selective strategy): Countries included in
this area are considered as the secondary markets to
invest, where the opportunities were there, but the
political or economic risk is perceivd to be too high to
achieve a long-term commitment to invest in that
markets. In these markets, the company has the strategy
option whether to pursues a selective improvement or
defensive strategy.
43
 C countries (Divest): the countries included in this area

are considered as the tertiary market which the company
should ‘take-as-you-can’ in selecting markets in this
area. This area is perceived as high risk markets, and
therefore, resource allocation is minimal and short-term
established. Hence, the company should not consider a
real commitment in these countries.
Table 2-2 Dimensions of market/country attractiveness and competitive

strength
Market/country attractiveness Competitive strength
 Market size  Market share
 Market Growth  Marketing ability and capacity
 Buying power of customer  Product’s fit to market demand
 Market seasons and fluctuations  Price

 Average industry margin  Contribution margin
 Competitive conditions  Image
(concentration/intensity/trade barrier)
 Market prohibitive conditions  Technology position
 Government regulation  Product quality

 Infrastructure  Market support
 Economic and political stability  Quality of distributors and services
 Psychic distance  Financial resources, access to
distribution channels
Source: Hollensen, S. (2017). Global Marketing 7th Edition.
2.5 Direct Export Entry Mode
As soon as the company selected their foreign market, the next question that is
needed for the company to answer is how to enter those targeted foreign market.
According to Hollensen in 2017, there are three main types of market entry mode based
on the degree of the control, risk and flexibility. They are export modes (low control,
44
low risk and high flexibility); intermediate modes (shared control and risk, split
ownership) and; hierarchical modes (high control, high risk and low flexibility).
Export modes are known as the most common mode for companies to initiate
their expansion into international markets. This entry mode was chosen by companies
to initiate their foreign business activities because of the characteristic of the export
modes itself as it is low risk, requires less commitment, and the company gets to
introduce their brand to the foreign market (UK Essays, 2013). Hence, according to
Johanson and Vahlne in 1977 (in Chabowski, et al., 2018), exporting is the initial step
in an “establishment chain”, where the term “establishment chain” signifies the usual
step taken by firms that wanted to do internationalization. These steps are exporting,
formal market enrties through intermediaries, investment in company-based owned
sales organizations, and manufacturing in international market.
According to Hollensen (2017:366) and UK Essays (2013), there are three

major forms in establishing export channels, they are indirect export, direct export and
cooperative export. In this research, author only focused on disscusing the direct export
method.
A direct export method occurs when the manufacturer or the company sells
their products directly to an importer or buyer located in a foreign market area
(Hollensen, 2017:372). The importer or buyer mentioned includes foreign-based
agents or distributors.
2.5.1 Agents
According to Hollensen (2017:372), an agent is an independent company

that sells the imported products to customers on behalf of the manufacturer
(exporter). The main difference between agents and distributors are unlike
distributors, agents are paid by the manufacturer in the form of commission on a
pre-agreed basis, whereas distributors gained their profits from the differences
between the buying and selling prices. The commission received by the agents are
vary depends on several factors for example, their services performance or the
market’s size of the goods offered.
Agents can be divided into three types, namely:

45
 Exclusive agents, where the agents have exclusive rights to

specified sales territories.
 Semi-Exclusive agents, where the agent handles the exporter’s
goods along with other non-competing goods from other companies
(e.g. food and apparel)
 Non-Exclusive, where the agent handles various kinds of goods,
including some that may be the competing with the exporter’s
goods.
2.5.2 Distributors
Distributors are also an independent foreign-based organization that can

help the exporting firms to enter the foreign markets. Distributors often referred as
importers in which are the exclusive representatives of the company and are
commonly the sole importers of the company’s product in their markets. As
independent companies, distributors have their own account regarding how much
to buy and stock the manufacturer’s product, as well as choosing their own
customer and determine the conditions of how to sell the products. In many cases,
distributors have and operate their own wholesale and retail establishments,
warehouses, and repair-services facilities. Their profit came from the differences
between their selling price and the buying price from the manufacturer after they
negotiated this matter along with other issues such as distribution and quantity.
Firms can get the advantage of doing direct export through both agents
and/or distributors since these channels are familiar with the local market, customs,
have existing business contacts and employ foreign nationals.
46
2.6 Conceptual Framework
PT Industry Jamu dan Farmasi Sido Muncul Tbk
Internal External
Investor Owner- General Manager of Supported Data from

Relation Commissioner Export Department herbal consumer
In-depth Interview
Internal Insight External Insight
Internationalization of Sido Muncul Firm’s International Competitiveness
Porter’s SWOT Porter’s

Diamond Analysis Five Force
International Market Selection

Process by Sido Muncul
Proposed IMS Model (Two-Step

Semi-Systematic Approach)
Figure 2-7 Conceptual Framework

CHAPTER 3
RESEARCH METHODOLOGY
3.1 Research Design
Creating a research design is essential to any researcher. According to McDaniel

and Gates (2013:42), a research design is a structure or framework that any researcher
will develop to help them answer their specific research problems or objectives. It also
can be considered as a plan for addressing the research objective or hypotheses.
Thus, according to Malhotra (2015:61), there are three basic research designs that
is commonly used in marketing research. These are exploratory research, descriptive
research and causal research. Exploratory research design aims to provide an insight
as well as further understanding regarding the problem that is confronted by the
researcher, therefore exploratory design does not intend to give a conclusive
finding(s). Brown (2006:45) stated that exploratory research “tends to tackle new
problems on which little or no previous research has been done.”
Descriptive research known as a research design with its major objective is to give
a description of an issue⸺ usually concerning the market characteristic⸺ which also
provide a conclusive finding (Malhotra, 2015:63). Usually, descriptive studies are
performed to answer the how, who, what, when and where questions of a specific event
(Lambert & Lambert, 2012).
Other than two research design mentioned above, according to McDaniel and
Gates (2015), there is also causal research design which the purpose of this research is
to examine whether the value of one variable cause an effect or determines the value
of another variable. Malhotra (2015) also add that causal research design is applied to
gain evidence of cause-and-effect (causal relationship).
Hence, for this research, both descriptive and exploratory research design is
adopted to help the researcher acknowledge the firm international competitiveness
before entering the global market and assist the development of a model that can be
used during the international market selection process of PT Sido Muncul Tbk.
47
48
3.1.1 Research Approach
The particular method chosen for a research study depends on the way which the
research will be carried out and analyzed. Thus, a qualitative approach was
implemented in the process of conducting this research. According to Denzin and
Lincoln (2000) in Mayer (2016), qualitative research is a study in which the researcher
attempts to make sense or interpret a phenomenon in their natural settings, turning the
world into a series of representations involving field notes, interviews, conversations,
photographs, recording and memos to self. The distinctive aspect of quantitative and
qualitative research approach is that while quantitative research approach focus on
quantification in data collection and data analysis, qualitative research are more
emphasizes at words (Mayer, 2016).
Other definition by Sugiyono (2015:13-15), qualitative research approach defined

as a research method based on postpositivism philosophy (postpositivism philosophy
looked at social reality as a whole/holistic, complex, dynamic and reciprocal
phenomenon) used in a natural setting where the researcher is the key instrument of
this kind of research. The data collection method that is used for qualitative research
is based on triangulation method and analyzed using inductive logic.
This research using a qualitative-case study approach where according to Yin

(2003) in Hog (2016), “a case study is an empirical inquiry that describes a
contemporary-phenomenon in a real-world context under consideration, particularly if
the boundary between the observed phenomenon and context is no clear.” Also added
in Hog (2016), the case study research is preferably used for a study in which the
research purpose is to answer the how and why questions. Therefore, the author of this
research decided to use qualitative-case study approach to look further into the
phenomenon happened to PT Sido Muncul and thus, a feasible recommendation can
be developed within the process.
3.1.2 Time Horizon
Following the research design adopted in this study, according to Malhotra

(2015:63), descriptive method can be classified into two kinds of time horizon namely,
the cross-sectional design and longitudinal design. A cross-sectional design is a type
of research that involving the collection of data or information that collected only at a
49
given point of time before the data are analyzed. While longitudinal design is type of
research which involved a repeated analysis on the same sample of population or same
variable.
Hence, this research was conducted as a cross-sectional study since the data in were
collected just once, over a period of time. This decision followed Aczel in 2016 which
stated the proper method in collecting the data of a case study investigation are using
cross-sectional method which can be carried out by interviewing the experts.
Table 3-1 Research Design
Research Research Time

Objectives Unit of Analysis
Design Approach Horizon
Cross-
O-1 Descriptive Qualitative Sido Muncul
sectional
Herbal
Cross-
O-2 Descriptive Medicine/Supplement
Qualitative
Industry and Sido sectional
Muncul
Cross-
O-3 Exploratory Qualitative Sido Muncul
sectional
Source: Researcher (2018)
O-1 (Objective Number 1): To look out for the international experience or the
internationalization of PT Industri Jamu dan Farmasi Sido Muncul Tbk
O-2 (Objective Number 2): To identify the international competitiveness of PT

Industri Jamu dan Farmasi Sido Muncul Tbk
O-3 (Objective Number 3): To formulate a systematic approach recommendation for

PT Industri Jamu dan Farmasi Sido Muncul Tbk to assist the company on choosing
their international markets, based on the criteria used by the company.
50
3.2 Types and Source of Data
In this research, the author using both primary and secondary sources of data.
1. Primary data
According to Bryman & Bell in 2011, primary data are the first-hand data that
is collected mainly for the purpose of solving the current problem at hand, it is more
specific and direct research questions. While according to Sugiyono (2015: 308),
primary source data are given directly to the researcher. In collecting primary data,
researcher might face time-consuming conditions and higher expenditure to make.
Thus, referring to the definitions above, primary data can be concluded as a data that
directly given to the researcher without any intermediaries which can be gathered to
direct interview, survey, or questionnaire.
2. Secondary data
Secondary source data are data analyzed by researcher who not has been directly
involved in the process of collecting the data (Bryman & Bell, 2011). Secondary data
are collected by another party (could be other researcher, organization or company)
for their own purpose and then it is analyzed for the researcher own purpose. One of
the advantage of using secondary data is that researcher will minimize cost and time
with usually faster access to relevant information. On the other hand, using secondary
data also have a disadvantage. It is that the data were originally collected for a different
purpose which may not be perfect for the research questions under consideration.
3.3 Respondent Sampling
According to Sugiyono (2015:301), there are two kinds of sampling in

qualitative research that is frequently used that is, purposive sampling and snowball
sampling. Purposive sampling is a qualitative sampling technique where the election
of the respondent sampling is chosen based on specific consideration, for example a
researcher chooses a particular respondent which an expert in a specific research topic.
On the other hand, snowball sampling is known as a sampling technique in which
basically, the collection of the data from the respondent are generally small and then
grew larger over time as the research are going further.
51
This research adopts the purposive sampling method in which the respondents for this
particular research were specifically chosen in order to meet the characteristic of the
topic as well as the purpose of this research. There were three respondents in this
research that fit the criteria below:
1. Respondent has an in-depth knowledge of PT. Sido Muncul Tbk and its
international market selection process.
2. Respondent holds a high-level position in management and is an expert
in his or her own field.
Table 3-2 Respondent Sampling
Name Position
Mr. Johan Hidayat Owner – Commissioner
Mr. Carlo Lukman GM Export Department

– Independent Director
Mr. Billy Utama Investor Relation
3.4 Data Collection Method
According to Lofland and Moleong (2005) in Djaelani (2013), the primary

source of a qualitative research is words and actions, other than that are the secondary
sources such as documents or literature study. Thus, the data collected in this research
are divided into primary sources and secondary sources.
3.4.1 Primary Data
1. Interview
According to Sugiyono (2015:316), interview is one of the data

collection technique which is used by researchers who wants to study about
specific topic or issue by looking further into their respondent. Also in
Sugiyono (2015:316), Esterberg (2002) stated that interview is a “meeting of
52
two persons to exchange information and idea through questions and

responses, resulting in communication and joint construction of meaning
about a particular topic”, while Susan Stainback (1988) believed that by
interviewing a respondent or an informant, means the researcher can obtain
more understanding of how that specific relevant respondent interpret a
situation or phenomenon that can be obtained through an observation alone.
According to Esterberg (2002) in Sugiyono (2015:317-319), there are

three kinds of interview in a research, namely:
1. Structured Interview
This kind of interview was only conducted if the researcher

already knows or positive about what kind of information that will
be obtained after the interview. During the interview session, the
researcher already prepared all the questions that will be
discussed, along with the alternative answers. With a structured
interview, the researcher asks the same questions to all respondent
and the collection of the data can be done by several interviewers.
2. Semi-Structure Interview
A semi-structured interview is considered as an in-depth

interview as the interview was more flexible than the structured
one. According to Bryman & Bell (2011), before conducting the
interview, researchers often prepared a list of the question of
several topics that will be covered which can be referred as the
interview guide, and the respondent has the flexibility of
answering the questions.
3. Un-Structure Interview
An un-structure interview is the most flexible interview method

and also is considered as an in-depth interview. The interviewer
in this kind of interview does not prepare any interview guide
except for only some of the main topic that will be covered during
the interview. In both semi and un-structure interview, the
53
purpose of the interviewer is to get an emphasis on how the

interviewee sees and comprehend the specific issues or subject.
In this research, the primary data were collected by the use of semi-structured
interview where the author prepared an interview guideline to questioned the
respondents. The open-ended questions that were prepared for the interview
are based on the existing literature review concerning the internationalization
and the international market selection process of PT Industri Jamu dan
2. Questionnaire
Sugiyono in 2015 defines questionnaire a data collection technique in

which the researcher gave a set of question and statement that will be filled
and answered by the respondents. Questionnaire can be an efficient way in
collecting the data if the researcher are certain about whom they are going to
collecting the data from and what to expect from those respondents.
In this research, the author distributed an online questionnaire randomly and

receive 59 responds from 59 respondents. This questionnaire is distributed in
order to gain an external view regarding the firm’s international
competitiveness.
3.4.2 Secondary Data
1. Documents/Literature Study
Documents can be considered as a fairly heterogeneous set of sources of

data such as magazines, newspapers, letters, memos, diaries,
autobiographies, internal reports and photographs (Bryman & Bell, 2011).
According to Sugiyono (2015:327), the outcome of observation or interview
could be more reliable if it were supported by published documents.
Hence, before conducting this research and the interview process, a literature
study was done by the author to gain more knowledge and insight of the
theoretical foundation in this research and other information related. The
material collected by the author are gathered from published literature or
54
document in both online and offline platform such as journal, book, annual
report, article, website and other related sources.
3.5 Data Analysis Method
Data analysis methods between qualitative and quantitative research are

noticeably different. In quantitative research, the technique used for analyzing the data
is by using statistical method, while in qualitative data analysis, the method is not well-
formulated. The statement above matched with what Miles and Huberman stated in
1984 (in Sugiyono, 2015:332) which “The most serious and central difficulty in the
use of qualitative data is that methods of analysis are not well-formulate.”
According to Bogdan (in Sugiyono, 2015:332), qualitative data analysis is a series of

systematic activities that involves the process of searching and arranging the interview
transcript, field notes, and other materials that was gathered in order to increase the
understanding of the data and to allow the researcher to present the findings of the
study. Qualitative data analysis is inductive, as the analysis comes from the data
gathered, which will be developed into hypotheses later on. The hypotheses arose from
the analyzed data will have another investigation repeatedly⸺ using triangulation
method⸺ until the hypotheses can be considered as an accepted theory or not (reject),
as Sugiyono stated in 2015.
In this research, the author implements the “Analysis Interactive Model” by Miles,
Huberman, & Saldaña (2014) which the analysis of qualitative data is divided into
three steps namely, (1) data condensation, (2) data display, and (3) conclusion
drawing/verification.
a. Data Condensation
Data condensation is a series of action which involves the process of

selecting, focusing, simplifying, abstracting, and/or transforming data from
a full-body data that collected during the data collection process in a form
of written-up field notes, interview transcript, documents and other
empirical materials (Miles, Huberman, & Saldaña, 2014). In the earlier
literature of Miles and Huberman (1983), the term used for this first step of
data analysis is data reduction. In their latest book called Qualitative Data
55
Analysis 3rd Edition: A Method Sourcebook (2014), the term used by Miles,
Huberman, & Saldaña is data condensation. The reason behind this term
transformation is that according to them, the term data reduction tend to
weaken or erase something in the process. By using data condensation, they
intend to make the data stronger without losing any during the process.
Data condensation is a form of analysis that sharpens, sorts, focuses,

discards, and organizes data in any way (including writing summaries,
coding, developing themes, generating categories and writing analytic
memos), so that “final” conclusions can be drawn and verified.
In this research, the author adopts several methods of data condensation

(writing summaries, coding, developing themes, generating categories) in
order to improve the effectiveness in conclusion-drawing and to organize
the data.
 Coding
According to Miles, Hubeman, & Saldana (2014), coding is
considered as part of data condensation implementation that helps
the researcher to retrieve the most important material, assemble
chunks of data that go together, and further condense the raw data
collected into readily analyzable units. Coding requires the
researcher to be heuristic, which means the researcher needs to
read the content of the data carefully and identify the core
meaning of the data.
b. Data Display
The next step in analyzing qualitative data is the data display. Data
display is an organized, compressed compilation of information that
generates conclusion-drawing and action-taking (Miles, Huberman, &
Saldaña, 2014). According to Miles and Huberman (1984) in Sugiyono
(2015:339), “the most frequent form of display data for qualitative research
data in the past has been narrative text.” Other than using narrative text as
a way to display the data, researchers can also use graphs, matrices, charts
and networks. A good display of data could help the researcher to recognize
56
what is happening and decided whether to do further investigation or not

based on the understanding (Miles, Huberman, & Saldaña, 2014).
Additionally, according to Miles, Huberman, & Saldaña (2014), data display

process can be done after data condensation (for example, coding), which
leads the researcher to gain insights on what information or data should go
to data display.
c. Conclusion Drawing/Verification
The third process of data analyzing according to Miles and Huberman

(1984) is conclusion drawing/verification. From the very first start of data
collection process, a qualitative researcher might interpret things and draw
a conclusion based on what their find. These conclusions are still tentative,
consider there is still other information that can verify those conclusions
whether it is valid or not.
As Miles, Huberman, & Saldaña stated in their book (2014), conclusion

drew from the previous analysis can be verified as the process continues to
proceed, although it may be as brief as a flashy second thought crossing the
researcher’s mind during writing the report. This sudden thought can be
supported with a short trace back to the field notes, or through
argumentation and discussion among colleagues to develop “intersubjective
consensus.”
3.6 Data Validity Method
Subjectivity of a researcher is very crucial in qualitative research. The validity

of data gathered in qualitative research can be confirmed if there is no difference
between what is reported by the researcher and what is really happened with the object
observed. As mentioned before, the researcher is the key instrument in qualitative
research thus, the data collection method⸺ which usually with an interview and/or
observation method⸺ are considered to have many weaknesses (Djaelani, 2013).
Hence, data validation is required to be done in order to minimize these weaknesses.
According to Moleong (2005) in Djaelani (2013), there are four criteria that is
needed to be check in order to validate the data. These are:
57
1. Credibility
In order increase the credibility of the data, there are several actions that
can be carried out during the research including; (a) Extend the duration
of the research; (b) Observation on the detail; (c) Triangulation or data
assessment through comparing the data from several sources; (d) Uncover
the tentative or final result of the research through analytic discussion with
colleagues; (e) Collecting and study a negative cases related with the
analysis which shows a different or opposite argument as a comparison;
(f) Compare the result with other research’s result; (g) Data examination,
interpretation, and conclusion with other party from the research.
2. Transferability
Transferability is the ability of the research whether that research can be

applied in a different kind of research situations or not.
3. Dependability
Dependability refer to the result of the research that shows the consistency
of the researcher in collecting the data, condense the data, and forming the
theme of the research in interpreting the data before drawing the
conclusions.
4. Confirmability
Just like its name, confirmability refer to the outcome of the research
whether they corresponds with the actual data in the field or not. This can
be done by confirming the result of the research with the outsider of this
research or those who was never involved with the research during the time
of that research is conducted.
58
CHAPTER 4
RESEARCH AND DISCUSSION
4.1 About PT. Sido Muncul Tbk
Figure 4-1 PT Industri Jamu dan Farmasi Sido Muncul Tbk
Source: Investor Relation of Sido Muncul Presentation Slide (2018)
PT. Industry Jamu dan Farmasi Sido Muncul, Tbk (Herbal Supplement and
Pharmaceutical Industry of Sido Muncul Corporation) or commonly known as Sido
Muncul, is currently the leader of Indonesian traditional herbal medicine (jamu)
products with its well-known brand Tolak Angin and Nature’s Blessing. In this highly
competitive era of herbal supplement industry competition, Sido Muncul manages to
achieve the highest market share with a decent reputation as the biggest herbal
supplement company in Indonesia. The journey of Sido Muncul to reach this success
and attain a “Go Public” position in Indonesia Stock Exchange (since December 2013),
began from 1940 in Yogyakarta, Central Java.
The story began when the married couple, Siem Thiam Hie (born on January
28th1897) and his wife Mrs. Rakhmat Sulistio (born on August 13th1897 under the
name Go Djing Nio), starts their first attempt to open a Melkrey business, which was
a big dairy enterprise in Ambarawa at that time. In 1928, after the World War I, there
was a severe worldwide economic depression⸺ known as The Great Depression⸺
which forces the business to liquidate and make the couple relocated to Solo, in 1930.
Without any intention of giving up, the couple opened up a bakery shop called “Roti
Muncul.” Five years later⸺ with Mrs. Rakhmat Sulistio’s skill in processing herbs
and spices⸺ they finally decided to start herbal supplement business in Yogyakarta.
59
60
In 1941, the couple started to put their focus on formulating their first
product⸺ Jamu Tujuh Angin⸺ which now the market knew it as Jamu Tolak Angin.
As the second Dutch colonial war took place in 1949, the couple has to relocated once
more to Semarang where they establish the herbal supplement (jamu) business named
Sido Muncul in 1951, which means “a dream come true.” Precisely in Jalan Mlaten
Trenggulun No. 104, this home-industry an herbal supplements business had begun
with the help of three people employees.
Figure 4-2 The First Product of Sido Muncul, Jamu Tolak Angin
Source: www.sidomunculstore.com (2018)
As the demand number of a jamu with more simple and handy packaging keeps
on increasing, Mrs. Rakhmat Sulistio was encouraged to produce Jamu Tolak Angin
in a powder formula. In 1970, a commanditaire vennootschap (CV or Persekutuan
Komanditer) was established under the name of CV Industri Jamu & Farmasi Sido
Muncul. And then in 1975, CV Indsutry Jamu & Farmasi Sido Muncul transformed
into a limited liability company (LLC or in Indonesia known as PT) under the name
PT. Industry Jamu & Farmasi Sido Muncul, where all the businesses and the assets of
the CV was combined and continue under this limited liability company.
Throughout its journey, the company manages to gain a decent growth of sales
number and thus the factory⸺ which located in Jalan Mlaten Trenggulun⸺ was no
longer able to support the production capacity needed. Hence, as the second generation
of the founder of PT. Industri Jamu & Farmasi Sido Muncul, Desy Sulistio decided to
move the factory to a small-sized industry area in Jalan Kaligawe Semarang in 1984.
61
To anticipate the rapid growth of the future, Sido Muncul decided to build more
plant, bigger and more modern. As a result, in 1997 the first stone to a groundbreaking
of the new plant was placed in Klepu, Ungaran, by Sri Sultan Hamengkubuwono X
and witnessed by the General Director of Food and Supplement Supervision at that
time.
In 11th November 2000, this new, 30-hectare factory located in Klepu, Bergas
District, Ungaran was inaugurated by the Minister of Health and Social Welfare of the
Republic of Indonesia. And during the occasion, Sido Muncul received two certificates
at once, they are CPOTB (Cara Pembuatan Obat Tradisional yang Baik) which
represents an excellent way of producing traditional supplements, and CPOB (Cara
Pembuatan Obat yang Baik) which also indicates a good manufacturing for
supplements that has been equivalent to the pharmaceutical standard. With these
certificates, Sido Muncul became the only herbal supplement (jamu) company that has
the same standard as the pharmaceutical industry does.
As a company that has been established since 1951, Sido Muncul now becomes
an herbal supplement company equipped with sophisticated technology to deliver the
best product for its consumers, and thus giving a positive value for the society. As time
goes by, Sido Muncul keeps on expanding their business which originally the company
only focuses on herbal supplement (jamu) products. In 2004, the company establishes
a new division named “Food Division” concentrating on producing a healthy food,
beverage & energy drink. The first product launched from this division is “Kuku Bima
Ener-G” energy drink, followed with Tolak Angin in a candy form as well as Jahe
Wangi and Kunyit Asam (Ginger and Turmeric Acid) sweets. Next, the “Food
Division” also released healthy drink such as Sido Muncul Vitamin C-1000, Kuku
Bima Ginseng Coffee, Sido Muncul Ginger Coffee, Alang Sari Plus and Colla Mill.
Later on, Sido Muncul announced that there are several flavors offered for Kuku Bima
Ener-G energy drink, they are grape flavor, guava, orange, pineapple, coffee, mango,
milk soda, and Kuku Bima Ener-G with Vitamin C.
62
Figure 4-3 Products of Sido Muncul
Figure 4-4 Products of Sido Muncul (Cont.)
Source: www.sidomuncul.com (2018)
Sido Muncul today, has manage to export their product to several countries
across the globe including Malaysia, Singapore, Brunei Darussalam, Australia, Korea,
Nigeria, Hong Kong, USA, etc. With a total of 122 distributors across the nation, per
November 18th2013 this family company determined to achieve a higher position in
the society by becoming a public company (Tbk), aiming for a long-lasting existence
in the industry. This improvement changes the name of Sido Muncul into PT. Industri
Jamu dan Farmasi Sido Muncul, Tbk and put the title “largest herbal medicine plant
in Indonesia” above it.
4.2 Company’s Vision and Mission
In conducting their business operations, PT. Industri Jamu dan Farmasi

Sido Muncul Tbk has the vision to become a leading company in herbal
medicine products, healthy foods and beverages, and herbal ingredients
processing which can benefit both community and environment.
63
While holding onto their vision, PT. Industri Jamu dan Farmasi Sido Muncul
Tbk has the mission to:
 To develop rational, safe, and trustworthy herbal products based on

thorough research
 To sustainably develop research initiatives on herbal medicines.
 To assist and encourage the government, educational institutions, and
medical sector to contribute more to research and development of
herbal medicines and medications.
 To raise the community awareness of the importance of maintaining
health through a healthy way of living, the use of natural ingredients,
and naturopathy medication.
 To implement an intensive corporate social responsibility (CSR)
initiatives.
 To run an environment-friendly oriented business/manufacturing
operation.
 To become a world class herbal medicine company.
4.3 Corporate Structure
Figure 4-5 Corporate Structure of Sido Muncul
Source: Sido Muncul Presentation 2018

64
The figure above shows the shareholder of PT. Industri Jamu dan
Farmasi Sido Muncul Tbk with its subsidiaries. As presented, the majority of
PT. Industri Jamu dan Farmasi Sido Muncul Tbk owned by PT Hotel Candi
Baru which is owned by Hidayat Family (81percent of total shareholder),
which is the main family of the founder of Sido Muncul, and the other
19percent share owned by the public. The company also owned three
subsidiaries which are financially reported in the company’s consolidated
financial reports. Those three subsidiaries are:
Table 4-1 Subsidiaries of PT. Industri Jamu dan Farmasi Sido Muncul Tbk
No. Name of Equity Year of Line of Operational

Subsidiary Participation Participation Business Status
1 PT. Muncul In operation

99.99% 2012 Trading
Mekar
2 PT. Semarang
Herb In operation
Herbal 99.99% 2012
Extraction
Indoplant
3 PT. Berlico In operation

99.99% 2014 Pharmacy
Mulia Farma
4 Muncul Nigeria In operation

99.99% 2018 Export
Limited
Source: Investor Relations of Sido Muncul Presentation Slide (2018)
4.3.1 PT. Muncul Mekar
PT. Muncul Mekar is a distribution company concentrated in

handling the distribution of all Sido Muncul’s products to all over the
nation. Under the control of Sofyan Hidayat, Muncul Mekar was
founded in 1975 with their head office located in Jalan Mlaten
Trenggulun No.102, Semarang. In their initial stage of business
activites, Muncul Mekar’s head office only has several employees with
only three cars for canvassers and out of town marketing activities, and
five motorcycles for in town marketing.
Start off with the government regulations that insist producers

or manufacturers select a distributor in marketing their products, PT.
65
Muncul Mekar now has four representative offices in Jakarta, Bandung,

Semarang, and Surabaya, with 103 sub-representative offices and
distributors.
4.3.2 PT. Semarang Herbal Indoplant
Established in 2010 with a 4,000 sqm of a physical building,

PT Semarang Herbal Indoplant (SHI) is a raw material extraction
factory developed by PT Industri Jamu dan Farmasi Sido Muncul
with their main purpose is to increase the production capacity. By
increasing the production capacity, the company wishes to shorten
the production chain, improve the efficiency, standardizing the raw
materials, as well as to accommodate the spices farmers (petani
rempah) when its harvest season.
With SHI, Sido Muncul will able to improve the quality of

their raw materials as well as their herbal medicine products so that
Sido Muncul’s products can meet the global quality standard and
competing in international market.
In 2015, Sido Muncul decided to expand the main building of

SHI as much as 8,795 sqm, which resulting 12,795 sqm in a total
building area. The extended area of the main building will also be
continued with the additions of 500 production machines, so that the
production capacity can be multiplied into three times from the initial
capacity, from 3,750 kg per day to 11,250 kg per day. With this
number, Sido Muncul wishes to be more prepared in fulfilling the
needs of both domestic and international markets.
4.3.3 PT. Berlico Mulia Farma
In order to take one step closer to the company’s vision which

is to become a leading company in pharmaceutical industry and
herbal medicine products in Indonesia, Sido Muncul officially
acquire PT Berlico Mulia Farma in September 1st2014. This step
taken by Sido Muncul is to realize the company’s long-term plan to
widen its portfolio in the pharmaceutical industry.
66
Originally founded in 1976, Berlico is a pharmaceutical

company which also has the CPOB certificate (Cara Pembuatan
Obat yang Baik). With a 7,246 sqm factory area, Berlico
manufactured various medicines in the form of liquid syrup, tablet,
coated tablet, and cream. Berlico also has the supporting facilities
such as research and development laboratory, quality control
monitoring room, storage warehouse, and a facility to manage all the
industrial waste (waste treatment).
4.3.4 Muncul Nigeria Limited
Muncul Nigeria Limited is the representative of Sido Muncul

in Nigeria established since January 5th2018. Sido Muncul decided to
create this sales representative in order to strengthen the export
market in Africa as well as to control the export activities in Africa.
67
4.4 Organizational Structure
Figure 4-6 Organizational Structure
Source: Annual Report of Sido Muncul 2017
4.5 Respondent Background
1. Mr. Johan Hidayat
Mr. Johan Hidayat is an Indonesian citizen, born in Yogyakarta in 1950 (67

Years). Mr. Johan is part of the Hidayat family which is the owner of Sido Muncul.
68
Appointed as Commissioner of the Company since 1972 and reappointed for the same
position in May 2016. His previous experience is as follow:
• 1994 - Present: Commissioner of PT Muncul Putra Offset
• 2001 - Present: Commissioner of PT Muncul Mekar
• 2002 - Present: Commissioner of PT Muncul Armada Raya
• 2009 - Present: Commissioner of PT Semarang Herbal Indo Plant
• 2012 - Present: Commissioner of PT Berlico Mulia Farma
• 2012 - Present: Commissioner of PT Sido Muncul Pupuk Nusantara
• 2013 - Present: President Commissioner of PT Hotel Candi Baru
• 2013 - Current: Commissioner of PT Mentari Anugerah Sakti
• 2014 - Present: Commissioner of PT Berlico Mulia Farma
2. Mr. Carlo Lukman
Mr. Carlo Lukman is an Indonesian citizen, born in 1973 (44 years).

Appointed as the Independent Director since July 2016 as well as the General Manager
of Export Department of Sido Muncul. Mr. Carlo finished his Bachelor Degree in
economics from Satya Wacana Christian University, Salatiga (1995) and his Master
of Business Administration from Management Studies Program Faculty of Economics
and Business, Gadjah Mada University, Yogyakarta (2014). His previous experiences
in this field are as follows:
 Head of Marketing Division at PT Astra Otoparts Tbk (Astra Niaga Division)
 Country Development Manager at Kalbe Group International Division - PT

Kalbe Farma Tbk.
 Export Manager at PT Alcan Packaging Flexipack
 Director Marlene Kosmetic (Malaysia) Sdn Bhd. And International Business

Manager at PT Makarizo Indonesia
 Assistant General Manager - Supply Chain PT Kino Indonesia Tbk.

69
3. Mr. Billy Utama
Joined Sido Muncul since April 2014 as the investor relation and business
analyst. Mr. Billy Utama finished his Bachelor degree in Bina Nusantara University
majoring in accounting in 2010 and his Master degree majoring in financial analysis,
still in Bina Nusantara University (Binus Business School) holding the title of Magna
Cum Laude, in 2012. His previous experience in this field includes:
 Financial Planning and Analysis – Radana Finance

 Business Analysts and Investor Relation – Sido Muncul
 Financial Planning and Analysis Manager – PT Kalbe Farma
4.6 Data Validation Analysis
Informal Additional
Theme Interview Questionnaire Document
Opinion Information
The demand
number of
jamu
The industry in
respondents Indonesia is
The increasing in
agrees that the
Comeback any
trend of a
of ‘Back to categories
healthy and
1. Nature’ and including - Valid
‘back to
‘Healthy medicines,
nature’
Lifestyle’ cosmetics,
lifestyle is
Trend and food &
happening
around them beverages
due to the
people’s
awareness
regarding a
70
more healthy
lifestyle
The
conditions of
herbal
medicine/sup
The majority
plement
of the
industry in
respondents
Indonesia
Indonesia’s claimed that
from the
Herbal they has been
2. documents - Valid
Medicine consuming
review
Industry jamu or other
correspond
herbal
with the
medicines
explainations
before
came from
the
interviewed
informants
Tolak Angin One of the

The majority
of Sido informants
of the
Muncul personally
respondents
holds the agrees that
that have the
experience of biggest PT Sido
Company’s Muncul
consuming market share
3. Competitive Tbk has a Valid
jamu for of jamu or
ness massive
preventing herbal
supplements distributio
colds before
for n channel
(jamu untuk
preventing that
masuk angin),
colds. widely
choose Tolak
spread in
Angin of Sido
71
Muncul brand all over

as their the nation
previous and make
consumption. their
All of these products
respondents are easy to
also agree that find.
Sido Muncul
products are
easy to find.
All the
PT Sido informants
Muncul Tbk stated that
recently currently,
boost their PT Sido
export Muncul is
activities by focusing
establishing in their
marketing export
office in The activities
Export
Philippines to
4. Activities of - Valid
and introduce
Sido Muncul
established jamu as
company’s Indonesia
subsidiary in n brand in
Nigeria in other
order to country
increase the and boost
export their
contribution export
to their sales contributi
on to the
72
company’
s sales.
From the table above, the author finds that the four themes mentioned was a
valid theme with the reasons as follow:
1. The comeback of ‘Back to Nature’ and ‘Healthy Lifestyle’ trend is a valid

theme. This argument was correspond with the result from the document
studies where all the informants in this research stated that the demand of
herbal medicines/supplements industry in Indonesia is increasing because of
the recent trend happened in the community that promote more of a healthy
lifestyle. More than 50 percent of the respondent of the questionnaire of this
research also agrees that healthy lifestyle and ‘back to nature’ trend is
happening around them that represented with a more healthy-concept
restaurant and facilities such as fitness center.
2. Indonesia’s herbal medicine industry also a valid theme to be discussed more
in this research where the informants of this research stated that the herbal
medicine industry in Indonesia is one of the promising industry in the future.
This argument was also supported with the result from the questionnaire where
51 respondents out of 59 respondents claimed that they have been consuming
jamu before. The data collected from the interview and from the documents
review regarding the Indonesia’s herbal medicine industry is also corresponds
to each other concerning the raw material of the industry, the entry barrier, and
the demand conditions of the industry.
3. Company’s Competitiveness is a valid theme. From interviewing the
informants of this research, the author obtained several aspect that is consired
as the competitiveness of the company which is PT Sido Muncul Tbk. These
aspects include their massive distribution channel, their strong brand
awareness, the efficacy of their products, and their modernized taste of jamu.
Thus, from the questionnaire done by the author for this research, the
respondents also agree that Sido Muncul’s products are very easy to find. They
also stated that they felt the efficacy of the products especially the Tolak Angin
of Sido Muncul. In addition, to support this argument, the author also found
73
that currently, Tolak Angin of Sido Muncul holds the biggest market share in
jamu for prenventing colds segment.
4. Export activities of Sido Muncul also a valid theme. Based on the interview
done by the author, all the informants mentioned that currently, PT Sido
Muncul is in the process of boosting their export activities where according to
them, the foreign market is a room of opportunity for them to grow in
international expansion. This theme also supported by the documents review
where the author finds that Sido Muncul recently expand their international
activities by establishing a marketing office in The Philippines as well as
establishing a company’s subsidiary in Nigeria.
4.7 Interview and Secondary Data Analysis
As mentioned in chapter three before concerning the research method, the

author implements triangulation method in order to collect and validate the data used
in this research. Therefore, triangulation method was used by combining an in-depth
interview as the primary source with 3 informants from PT Industri Jamu dan Farmasi
Sido Muncul Tbk, and data analysis from secondary source such as news, articles, and
official website as well as the annual reports of Sido Muncul.
Secondary data analysis from several sources mentioned above not only helps
the author before conducting the interview, but also support the data gathered by the
author in order to ensure the data displayed in this research is valid.
4.7.1 Interview
The primary data in this research was gathered by the author using the
interview method. The questions prepared by the author were entirely based on
the objectives of this research including the topic of internationalization;
national, firms’ and industry competitiveness; and the international market
selection criteria of PT Industri Jamu dan Farmasi Sido Muncul Tbk. The data
gathered will be analyzed further in order to answer the questions arose from
this research.
The key informants in this interview consist of three representatives

from PT Industri Jamu dan Farmasi Sido Muncul Tbk including, one person
74
from the export department of Sido Muncul, one person is in charge in their
investor relation, and another one comes from the owner family which also part
of the board of commissioner.
From what the author gained by interviewing those three informants,

the author able to analyze the current nature of herbal medicines industry and
its competitiveness, the internationalization process of Sido Muncul with its
international competitiveness, and the international market selection done by
Sido Muncul. What’s more from this interview is, the author manages to
identify the key themes drawn from the topic that is often discussed during the
interview. These themes include The Comeback of ‘Back to Nature’ and
‘Healthy Lifestyle’ trend; Indonesia’s Herbal Medicine Industry; Company’s
Competitiveness; Export Activities of Sido Muncul.
4.7.2 Documents
The author in this research also studied documents from secondary

sources to support the result of the interview session. Documents used in this
research came from differents source including the official website of Sido
Muncul, www.sidomuncul.id, annual report of Sido Muncul 2015 and 2017,
and also the presentation slide from the investor relation of Sido Muncul.
4.7.3 Questionnaire
In this research, the author also collecting data through questionnaire

in order to support and validate the data gathered during the interview session
and the data obtained from the secondary source. The questionnaire was
randomly distributed online where the total respondents that manage to be
collected for this research are 59 respondents. These respondents may be or
may be not already consumed herbal medicines/supplements before. Below
is the result of the questionnaire obtained.
75
Gender
35 32
29
30 27
25 22
20
15
10
5
0
Gender Pernah Mengkonsumsi Obat
Herbal/Jamu
Female Male
Figure 4-7 Gender of the Respondents
The figure above shows the gender difference between the respondents
of the questionnaire and its relevance on their past experience whether they
already used herbal medicines/supplements before or not. As can be seen, the
questionnaire consists of total 59 respondents which contain 32 female
respondents and 27 male respondents. Out of those 59 respondents, 51 of
them claimed that they have already used herbal medicines/jamu before,
which contain 29 females and 22 males. From this data, the author concludes
that the herbal medicines/jamu are mostly consumed by females which can
be seen from the difference between the proportion of female consumer from
total female respondents and the proportion of male consumer from total
male respondents. In other words, only 3 out of 32 (9.38 percent) female
respondents which never consume herbal medicines/jamu before while there
are 5 out of 27 (18.51 percent) male respondents which never consume herbal
medicines/jamu before.
However, from the figure below, out of 59 of the total respondents,

there are only 45 out of them which have been consumed jamu masuk angin
(herbal supplements for colds) while 14 respondents are not yet consuming
this kind of herbal supplement.
76
Herbal Supplements for colds (jamu masuk

angin)
50 45
40
30
20 14
10
0
Have you ever consuming herbal supplement for colds? (jamu
masuk angin)
Yes No
Figure 4-8 Respondents in Using Herbal Supplements for colds
From the age scope, although it is still dominated by respondents from

the age of 21-30, the respondents for this questionnaire are came from any
kinds of ages starts from below 20 to above 51, as can be seen in the figure
below.
Ages Variety of The Respondents

40 37
35
30
25
20
15
10 8
5 6
5 3
0
Ages
<20 21-30 31-40 41-50 >51
Figure 4-9 Ages Variety of the Respondents
The variety of profession of the respondents⸺especially for those who

claimed that have been consuming herbal medicines/jamu before⸺ consist
of students, bureaucrat officer (pegawai negeri), private sector employees
77
(pegawai swasta), entrepreneur (wiraswasta), and household wife (ibu

rumah tangga).
Variety of Profession from the Respondents

Consuming Herbal Medicines/Jamu
25
19 20
20
15
10
5 5 4
5
0
Profession
Pelajar/Mahasiswa Pegawai Negeri Pegawai Swasta Wiraswasta Ibu Rumah Tangga
Figure 4-10 Variety of Profession from the Respondents Consuming Herbal

Medicines/Jamu
As can be seen in the figure above, in this questionnaire, most of the

herbal medicines/jamu consumers are currently a private sector employee
(pegawai swasta) with total 20 respondents, followed with students with 19
respondets.
4.8 Key Theme Identification
Based from the research done by interviewing the three informants from Sido
Muncul, the author manages to develop the key themes mentioned before where these
themes arose from interview session supported with secondary data analysis, and
questionnaire.
4.8.1 The Comeback of ‘Back to Nature’ and ‘Healthy Lifestyle’ trend
Starts off with an analysis on secondary source data along with an

interview with several informants, the author recons that for the past few years,
the number of consumption in traditional herbal medicines is increasing which
affected by the trends of using the traditional herbal medicines. The term
78
“trend” used in this theme is because of a changing situation related to the

lifestyles of a large community across the globe as well as other several reasons
including the buyers’ preference in terms of cost advantage, and a shift in
technology development. This statement was supported by the informants
during the interview session.
“…jadi semakin kesini itu awareness orang terhadap nature, back to nature,
living healthy, itu semakin tinggi. Itu yang pertama, yang kedua dari sisi
tingkat Pendidikan juga sekarang sudah semakin tinggi, dan yang terakhir dari
sisi teknologi juga semakin maju. Teknologi ini terkait dengan akses informasi.
Jadi emm apa hal ini membuat ya kalo akses informasi dari sisi awareness itu
semakin dapet gitu, semakin meningkat. Orang mau cari informasi apa tinggal
google, internet dimana- mana, mau cari kegunaannya bahan herbal ini juga
tinggal google, bentuknya seperti apa tinggal google, rasanya seperti apa
tinggal google. Nah jadi itu awareness nya semakin tinggi. Nah dari sisi bisnis
nya tentu ini semakin potensinya bagus. Eemm dibanding kalo produksi
produk-produk supplement yang chemical sifatnya…” (Carlo Lukman)
“…trend kedepannya adalah konsumen mau sesuatu yang lebih safe, sesuatu
yang lebih natural, kayak trend back to nature gitu-gitu itu yang lebih saya
bilang sih lagi on going lah. Even di amerika pun penggunaan chemical drugs
itu lumayan berkurang. Kayak misal di jepang juga dokter-dokter sana juga
udah bikin prescription untuk eee obat-obat herbal…” (Billy Utama)
The answers above emphasize the topic of the trend of a healthy lifestyle. The
awareness of the majority of people regarding the ‘back to nature’ and ‘living
a healthy lifestyle’ is improving as the education and technology aspect are
also increasing. With a shift in the technology, people would get an easy access
to information regarding the use, taste, and the form of herbal ingredients. And
why would the education degree supported people to live a healthy lifestyle?
The higher degree of education will affect the degree of their awareness into
what is good for their body and what is not. A higher degree of education also
helps the people regarding the know-how to access all the information needed
using the technology that is also increasing. Thus, education and technology
79
are two things that correspond to each other in affecting the trend of a healthy
lifestyle.
The informants from Sido Muncul also stated that with a shift in the
majority of people’s preference to use natural ingredients⸺ including in
medicines⸺ decrease the use of a chemical drugs and increase the use of herbal
medicines. Also, according to one of the informants from Sido Muncul the
prescription of using herbal medicines in other countries also improving
including, Japan and The United States of America.
This argument also supported with the result from a questionnaire taken
by 59 respondents which distributed online.
Healthy Lifestyle: Is it really happening?

60
53
50
40
30
20
10 4 2
0
Is healthy lifestyle is happening around you?
Yes No Maybe
Figure 4-11 Healthy Lifestyle: Is it really happening?
From the result above, the figure shows that from the total of 59 respondents,
53 out of them are agree with the healthy lifestyle trend that is happening again
for the past few years while the other four are disagree, and the other two are
remain neutral. According to those who agree with this statement, the trend of
healthy lifestyles is represented with various phenomenon for example, a lot of
healthy-concept restaurant and facilities (e.g. fitness center, aerobics class,
yoga class) established that encourages people to manage their own body shape
and their well-being.
80
There were also lots of statement from the respondents that agree with
this comeback of healthy lifestyle is because of an improvement in people’s
awareness regarding the risk of taking chemical medicines. The respondents
also agree that with a shift in technology development, people now have an
easy way to access everything, and mostly, the information. With an easy
access of everything, people would get information easily from one chat room
to another, or from a news platform. Any kind of information could be obtained
with this access including why should people starts to live more of a healthy
lifestyle than before. Hence, this data collected from 59 respondents supported
the statement of the informants from Sido Muncul that the comeback of a
healthy lifestyle is really is happening nowadays.
4.8.2 Indonesia’s Herbal Medicine Industry
As previously mentioned, the trend “healthy lifestyle” is now

happening and change the way of people living. The development of
Indonesia’s herbal medicines industry is the empirical evidence to prove this
statement. According to the Ministry of Industry of The Republic of Indonesia,
in 2017 the growth of jamu industry in Indonesia has increased 10% compare
to the previous year. To support this improvement, one of the business player
in this industry, the number of the net sales of Sido Muncul keeps on increasing
since 2015 with the main contributor of its sales is come from the herbal
medicine products segment (Sido Muncul, 2017).
81
Sales Number of Sido Muncul (Q1 2018)

Herbal & Supplement Food & Beverages Pharmacies
4%
30%
66%
Figure 4-12 Sales Number of Sido Muncul
The number above shows the sales number of PT Industri Jamu dan
Farmasi Sido Muncul Tbk in the first quarter in 2018. From three segments of
product sold by Sido Muncul, the herbal and supplement segment has the
biggest contribution for the company in the number of 66% from total sales of
the company. Thus with this number, it is proved that the consumption of
herbal medicines in Indonesia are still in a good number.
Meanwhile, herbal medicine industry in Indonesia involves many

players that driving the development of the industry including the supplier,
customer, producer, and the government. Fortunately, Indonesia is very rich of
their biodiversity with approximately 5000 plant species in Indonesia are
categorized as a medicinal plant. Supported with sophisticated technologies
and skillful human resource, this will make the herbal medicines industry in
Indonesia is having a good business prospect. With these inputs, not many
people know that herbal/traditional medicines in Indonesia are divided into
three kinds of categories depends on its preparation. The first one is jamu. Jamu
is a traditional herbal medicine in a form of powder, pill, or liquid that is
82
formulated traditionally which usually only need empirically proven and

doesn’t need any scientific test. Second, is standardized herbal medicines (Obat
Herbal Terstandar or OHT) which is an herbal medicine processed from the
extract of medicinal plants, animals, or even minerals. This kind of herbal
medicines are more complex to produce, supported with a more sophisticated
equipment and also need a scientific verification for its efficacy. The third kind
of herbal medicine in Indonesia is phytopharmaceutical (Fitofarmaka). This
kind of herbal medicines is considered to have the same level as the modern
remedies for its standardized-modern process supported with a scientific test
and clinical trial to a living human (Bank Indonesia, 2008).
In light of this matter, therefore the resources for this industry are
abundant. Players in this industry basically can get their raw material easily to
formulate jamu or other traditional medicines.
“…bahan bakunya tuh emang semua ya, yang khusus herbal ya, itu semua
bahan baku utama tanam-tanaman itu hampir mungkin 90-95 persen itu
diambil dari Indonesia. Lokal. Ntah yang dari Jawa, Kalimantan, Sumatera,
itu kita ambil semua local resources gitu. Jadi ya saya setuju gitu kalo
misalnya emang menjajikan, ya menjanjikan. Source nya gampang, resource
untuk raw materialnya juga gampang…” (Billy Utama)
The statement above comes from one of the informants from Sido Muncul
which also agree with the abundant resources⸺ especially for its
biodiversity⸺ in Indonesia. According to him, the access to the raw materials
in Indonesia is rather easy, which makes 90 to 95 percent of their raw material
are purely form local resources that came from Java, Kalimantan, and
Sumatera.
However, according to the informants from Sido Muncul, what is

matter when a new player wanted to join the industry is not the access to the
raw material but, the formula and the recipe needed for their product for
efficacy is the most crucial aspect in formulating a jamu.
83
“…barriernya tuh yang paling tinggi tuh justru menurut saya bukan modal.
Menurut kita bukan modal, melainkan resep dan formulasi. Gitu. Kalo modal,
sekarang industry jamu di Indonesia itutuh lumayan fragmented, maksudnya
fragmented tuh umm terdiferensiasi sama industry-industri jamu yang kecil
yang jamu-jamu rumahan. Nah itu sangat banyak tuh industry indsutri jamu
rumahan indsutri kecil yang rumahan…” (Billy Utama)
" …core bisnis kita jamu, jamu itu indentik dengan resep nenek moyang. Jadi
yang paling, high entry barrier yang paling tinggi menurut kita itu ya mungkin
salah satunya itu adalah resep…” (Billy Utama)
“…Entry barrier nya adalah resep jamu yang merupakan heritage formula
yang terbukti khasiatnya…” (Johan Hidayat)
The statements above emphasize the barrier of entering the herbal medicine
industry in Indonesia. It is true that capital is part of things that needs to be
considered to enter any kind of industries. In this industry though, the hardest
barrier to be passed through is the formula and recipe of the herbal medicine
itself which indicates its efficacy. Thus, an herbal medicine that is not
empirically proved for its efficacy, would have a hard time to compete in this
industry. This argument also supported with the contrast difference between
the number of the Traditional Medicine Industry and the Small Industry of
Traditional Medicine which shown in the figure below.
84
Number of Player in Herbal Medicine Industry in Indonesia

(2017)
10.40%
89.60%
Traditional Medicine Industry Small Industry of Traditional Herbal Medicine
Figure 4-13 Number of Player Herbal Medicine Industry in Indonesia
Source: The Ministry of Industry of the Republic of Indonesia (2017)
But then again, with a total 986 players in this industry, the competition
in this industry can be considered as a ‘loose’ competition. The big difference
between two different scales of the player in this industry is the main reason of
why herbal medicines jamu industry does not have a fierce or tight competition.
Data from Euromonitor, in 2017 the herbal medicine industry in Indonesia is
still dominated by domestic products including, Tolak Angin from Sido
Muncul, Antangin from Deltomed, and Diapet for Soho Pharmacy.
Consequently, the Indonesia’s government is very supporting in terms

of herbal medicines industry because jamu is part of Indonesian culture. This
argument was supported by the two informants from Sido Muncul below.
“…kita pertama dari sisi government support sangat sangat support. Kenapa?
Karena jamu itu part of culture. Indonesian culture gitu. Yang bagian dari
budaya Indonesia which is ga akan mungkin dimatiin lah sama government.
Dulu pernah ada kaya gerakan minum jamu bersama di semua intansi
pemerintah setiap hari kamis kalo ga salah saya lupa di semua instansi
pemerintahan gerakan minum jamu bersama. Ya itu kan part untuk dorongan
industry herbal di Indonesia, kedua dari sisi regulasi, industry jamu tuh ee
85
lebih mudah dibandingkan industry obat-obatan gitu. Kalo misalkan obat-

obatan mau registrasi suatu produk, tes produknya itu bisa sampe ummm
taunan. Mungkin paling cepet itu tiga tahunan. sementara untuk jamu, itu
paling cepat paling cepet itu bisa bisa bisa enam bulan udah keluar. Atau
enggak setahun lah. Enam bulan sampe setahun. Karena bisa juga kan dua
tahun, tapi dari sisi regulasi kita oke, selama semua produk kita 100 persen
herbal, kita dimudahkan.” (Billy Utama)
From the statement above, the government is fully supporting the herbal
medicine industry in Indonesia by not hampering the production of herbal
medicine and “make-things-easier” for the registration process of the
medicines product. For the chemical medicines usually, it would take years to
be registered but for jamu, the registration process can be completed up to only
six months, as long as the products is 100 percent herbal.
4.8.3 Company’s Competitiveness
A competitiveness is crucial for any company that competes in any

industry including, the herbal medicine industry. Competitiveness of a firm can
take any form depends on what kind of industry they involved in. PT Industri
Jamu dan Farmasi Sido Muncul Tbk is a company runs in herbal medicine
industry and happens to hold the biggest market share in the herbal/traditional
medicine products, according to Euromonitor (in 2017) and from the interview
conducted with the informants from Sido Muncul.
“…tolak angin tuh kita ada salah satu head-to-head competition. Deltomed,
antangin. Tapi by far size nya masih jauh. Kayak misal market share kita tuh
50-55 persen, sedangkan deltomed kayak Cuma misal 20-25 persen. Tapi itu
head-to-head…” (Billy Utama)
“…persaingan masih sehat, kami masih memiliki market share yang paling
besar, karena kami adalah pemula dan pelanggan kami cukup setia
menggunakan produk kami…” (Johan Hidayat)
The herbal medicine industry competition according to Sido Muncul⸺ with

their head-to-head competitors⸺ is still relatively stable and not as fierce as
other industries might be, where the position of Sido Muncul itself is the market
86
leader in this industry. To become the market leader of an industry, companies

are supposed to have strong competitiveness which allows them to do things
better than the competitor. For Sido Muncul, there are reasons of why they hold
the biggest market share in the industry. Sido Muncul, which established in
1951, is one of the oldest company in this industry with the recipe and formula
inherited from their ancestor, and this recipe became one of several
competitiveness possessed by Sido Muncul.
“Memang benar SidoMuncul, merupakan perusahaan yang memproduksi

produk herbal/ jamu yang terbesar di Indonesia. Kesuksesn ini didukung
karena adanya inovasi yang berkelanjutan. Memang pada dasarnya produk
kami adalah jamu tradisional dengan resep warisan leluhur yang tetap
dipertahankan…” (Johan Hidayat)
“…Tapi yang membuatkan sido muncul ya balik lagi, core bisnis kita jamu,
jamu itu identik dengan resep nenek moyang…” (Billy Utama)
The statement above agrees that one of the most crucial aspects in
competing in herbal medicine industry especially for jamu is the recipe and
formula. Sido Muncul’s success story is supported with the efficacy of their
recipe especially for their first and most well-known product, Tolak Angin
which specialized in preventing colds. With empirically and scientifically
proved its efficacy, Tolak Angin became the biggest contributor for Sido
Muncul with a total sales 80 percent out of their herbal & supplement product,
and also the strongest product among jamu products for colds in this industry.
Not to mention the strong brand image adhered in Tolak Angin.
“…brand, brand image. Brand image ya kalo kita ngomong tolak angin ya itu
udah kayak indomie lah udah market leader. Pokoknya orang cari mi instan,
orang mau cari kayak umm minum aqua, cari teh carinya teh botol, sama ya
masuk angin minum tolak angin gitu kan, udah di top of mind gitu brand nya
udah kuat…” (Billy Utama)
Tolak Angin is considered to have the strongest brand image in the

herbal medicine market that is shaped in customer’s mind and thus affecting
their mindset concerning their buying decision. In Indonesia, as aqua to
87
mineral water and indomie to instant noodle, Tolak Angin has already in the
top of the customers’ mind amongst other brands of jamu especially the one
for preventing colds.
Usage of Indonesia's Jamu for preventing colds
Antangin 6, 12.8%
Bintang Toedjoe 1, 2.1%
Tolak Angin 45, 95.7%
0 5 10 15 20 25 30 35 40 45 50
Figure 4-14 Usage of Indonesia’s Jamu for preventing colds

The figure above came from the questionnaire taken by the author to
59 respondents, which 52 out of them has already consume jamu for preventing
colds before. There are several big players in this industry which is according
to Sido Muncul, these are the head-to-head competitor for Tolak Angin. They
are Bintang Toedjoe from Kalbe Farma and Antangin from Deltomed. From
52 respondents, 45 out of them (or 95.7 percent) are choosing Tolak Angin of
Sido Muncul brand as they previous consumption in jamu for preventing colds,
while six of them choose Antangin from Deltomed, and one of them choose
Bintang Toedjoe from Kalbe Farma. Hence, this data supported the argument
from Sido Muncul before regarding their product, that Tolak Angin has the
strongest brand image compare to other brands in this product segment.
Move on to the next competitiveness of Sido Muncul, they also have

several product segments to increase their competitiveness over their
competitor in herbal medicine industry. According to the informant from Sido
Muncul, the other things that boost the competitiveness of Sido Muncul, is their
distribution channel. PT Muncul Mekar, as previously mentioned in corporate
88
structure (section 4.3), handle the distribution of all Sido Muncul products
through an extensive distribution network spread all over the nation.
Figure 4-15 PT Muncul Mekar Distribution
“…kita yang tadi perusaahan distribusi kita under muncul mekar gitu, itu
national distributor eee muncul mekar itu kita bagi jadi 4 kategori, satu itu
modern trade, modern trade itu kayak hypermart, alfamart, indomart, ya
pokoknya convenience store. Trus kita ada tradisional, tradisional itu wet
market, pasar basah kayak street vendor gitu kayak toko-toko, warung-
warung, pasar-pasar, sama terakhir kita ada medical channel distribution itu
apotek. Nah sido muncul tuh masih kuat dimanasih? Kalo kita ngomong sido
muncul itu kuatnya di tradisional. Karena part of heritage, jamu itukan lebih
kearah tradisional-tradisional lah ya jadi ya kita lebih besarnya di tradisional
market. Nah dari market tersebut kita bagi jadi 3 area, tengah, barat dan
timur…” (Billy Utama)
The figure and statement above represent the distribution channel of Sido
Muncul. The local distributors of Sido Muncul are divided into three categories
namely, the modern trade, traditional trade, and medical channel. Convenience
store and supermarkets are included in the modern trade; street vendor,
traditional market and smaller store are included in the traditional trade; and
drugstore or pharmacies are included in their medical channel. With that, Sido
89
Muncul now has 122 sub-distributors across the nation which makes the
customer can easily access their products wherever they are.
Is Sido Muncul Products Are Easy to Obtain?
0%
100%
Yes No
Figure 4-16 Sido Muncul Product Coverage
The figure above is the questionnaire result of 52 people that already

had jamu before, and all of them agree that Sido Muncul’s product are easy to
find. With this result, the wide-range of distributor of Sido Muncul’s products
across the nation giving them a better competitiveness compare to other
competitor by providing an easy access which will affect the buying decision
of their customer or their potential buyers.
In addition, Sido Muncul also strengthens their competitiveness by

developing a cooperation with hundreds of farmers for supplying their raw
materials such as herbal plants and other natural resources needed.
“Tidak sulit, karena kami telah bekerja sama dengan banyak kelompok petani
rempah diseluruh wilayah Indonesia.” (Johan Hidayat)
“kita kerja sama sama seratusan kelompok tani. Jadi kita ada kerja sama sama
ratusan kelompok tani yang waktu musim panen, itu kelompok tani tersebut
serratus persen supply ke kita. Jadi kita akan beli di harga berapapun pas
panen, tentunya pas harga lebih murah, pas panen itu kita beli mereka mau
panen berapapun kita beli semuanya gitu. Jadi kita kadang-kadang gapernah
90
merasa khawatir tentang masalah raw material seperti itu. Even kaya misalnya
petani-petani kita misalnya jahe, kita ada source nya di jawa. Even misalnya
kayak yang susah-susah dicari tuh saya juga waktu masuk sini gatau nih ini
ada taneman namanya yang susah-susah, dia bisa metik di Sumatera, atau
Kalimantan, yang mereka tuh akan 100 persen supply ke kita gitu.” (Billy
Utama)
From the statement above, Sido Muncul collaborated with hundreds

of farmers from all over the region (e.g. Java, Sumatera, Kalimantan) to
supply all the raw materials needed in the production. According to one of the
informants, this collaboration between Sido Muncul and groups of farmers
has established since around 50 years ago. Therefore, if it’s in the harvest
season, those groups of farmers will sell all their yields to Sido Muncul with
a reasonable price, and thus Sido Muncul doesn’t have to worry about their
raw material supplies.
4.8.4 Export Activities of Sido Muncul
With more than 70 years operating in the herbal medicine industry, Sido
Muncul’s product has already widely spread in all over the countries. In their
business portfolio, there are more than 20 countries that have been penetrated
by Sido Muncul with Tolak Angin and Kuku Bima as their main exported
products.
“…itu exactly. Satu di domestic nya sukses, kita try to earn another new
success story dengan produk yang sama…” (Carlo Lukman)
According to one of the informants from Sido Muncul, one specific reason of
why Tolak Angin and Kuku Bima are chosen to be exported to other countries
is because of their strong position in the domestic market. As mentioned before,
Tolak Angin holds the biggest market share for herbal medicine product
segment which also contribute most of the company’s sales. Thus, with this
success, Sido Muncul wishes to create another success story with the same
product, but in different countries.
91
Afterwards, Sido Muncul entered their target markets by exporting their

products. Sido Muncul particularly choose export mode as their mode of entry
because firstly, they wanted to introduce their product to other countries and
thus export mode is the simplest and easiest way of entering other countries.
“licensing kita gak mau karena kita emang mau develop nama brandnya tolak
angin” (Carlo Lukman)
“…nah, yang kedua kalo joint venture gitu gitu kita enggak juga karena kita
sebenernya ga perlu karena kita mampu melakukan sendiri, jadi ya lebih ke
normal export seperti itu” (Carlo Lukman)
“…pasti lebih mudah melalui export, licencing prosesnya mungkin jauh lebih
rumit. Tahap awal harus mengenalkan produk kita dulu sampai benar2
terkenal baru akan mengarah ke licencing” (Johan Hidayat)
Thus, in exporting their products, Sido Muncul implemented three different

business models which were originally proposed by the general manager of
export department, Mr. Carlo Lukman. These business models are called
trading, semi-marketing, and marketing.
“…Emm bisnis modelnya saya tuh eksportnya tuh ada tiga, satu trading, satu
saya sebut semi-marketing, yang ketiga marketing. Gitu. Nah, trading itu apa?
Trading itu ya sheila datang ke saya, saya ada rekan atau mewakili company
di china, saya mau beli. Beli apa? Beli barang a b c. nah harganya a,b dan c
segini-segini. Kuantitinya, minimum order quantity nya segini-segini. Singkat
cerita deal-deal, yasudah. Nih saya jual harga serratus ke sheila. Sheila di
cina mau jual seribu terserah satu juta terserah mau dijual online caranya
terserah mau dijual ke distributor terserah. Its totally beli putus gitu.” (Carlo
Lukman)
The first business model is called ‘trading’ which basically a one-time

transaction with no further obligations between the buyer and Sido Muncul
afterwards. The buyer came to Sido Muncul to buy a particular number of
products which they will re-sell it later and Sido Muncul has no control over
how they are going to sell the products, how much the selling price would be,
92
and how are they going to market the product. With this kind of business
model, the buyer and Sido Muncul has no sustainability in terms of their
cooperation because Sido Muncul wouldn’t know when is the next
purchasement done by the buyer and Sido Muncul inevitably depends on the
financial conditions of the buyerit is totally one-time transaction. This kind of
business model is not suitable for a big company who wanted to have a
sustainable cooperation between players in the industry however, there is one
advatange in applying this business model and that is, no risk because the
payment is done by the buyer before Sido Muncul ship the products.
“Saya gatau kapan lagi sheila datang ke saya, saya gatau kapan lagi sheila
nanti apa akan berapa lama lagi hubungan. Jadi in terms of sustainability nya
benerbener question mark. Dari sisi kelangsungan produknya juga question
mark. Bagusnya cuman satu. Gada risk. Ya saya minta sheila bayar didepan
sebelum shipment. Untung langsung didepan, gada risk. Dp juga semua
didepan. Itu. Kalo perusahaan mau besar, ini trading gabisa sebagai bisnis
model yang bagus, gitu. Karena ya itu tadi, sustainability nya ga ini misal
tahun 2017 jualan 2 juta US Dollar, 2018 suruh target berapa kan gabisa di
predict. Gabagus. Dan gabisa besar. Karena kita tergantung sama berapa
punya duitnya sheila.” (Carlo Lukman)
The next business model applied by Sido Muncul is called ‘semi-marketing’

business model. Basically, a semi-marketing business model is not having
much different with ‘trading’ business model however, semi-marketing
business model has a further discussion regarding future support from Sido
Muncul as the principal. This support from Sido Muncul is in a form of
allocated investment for example, from 20 percent of Sido Muncul’s profit,
they allocate 5 percent out of it to the buyer as promotion goods (e.g. product
sample, hat, t-shirt, towel, etc). With this support, the buyer is expected to give
a ‘sustainability’ to Sido Muncul by securing a minimum one-year agreement
before the allocation is given. Hence, with using this method, Sido Muncul still
has a bigger profit than the allocated investment and also a better sustainability.
“semi-marketing ini sama basically sepreti trading, tapi ada pembicaraan leih
lanjut mengenai support dari kami sebagai principal. Support misalnya gini.
93
Saya jual sama kayak tadi, 100. Lalu saya ngomong ama sheila, saya kasih
support mau gak? So it means that I allocate some of my profit, and I transfer
to you as a promotion. Bisa itu dalam bentuk sampling, bisa sample nya
sendiri, bisa free goods, bisa kasih kaos, atau bolpen, atau pencil, topi, handuk,
whatever it is.” (Carlo Lukman)
“…it means that I give you some of my profits to support you. Take and give
dong? Kamu juga harus kasih sesuatu ke saya dong? Apa itu? Nah itu
sustainability. Jadi kita bicara satu tahun. Misal gua mau kasih lu segini, nah
lu satu taun mau ambil berapa? Gitu. Nah itu dari sisi certainity nya lebih
certain dong?” (Carlo Lukman)
The last business model applied by Sido Muncul called ‘marketing’.

This business model is the one that Sido Muncul currently tries to implement
in many countries rather than the ‘trading’ and ‘semi-marketing’. Marketing
business model is the most special than the other two business model because
of the amount of investment allocated in this model is the biggest one amongst
the other. If the allocated amount in ‘semi-marketing’ business model is lower
than the profit, in ‘marketing’ business model, the allocated investment for the
buyer is bigger than the profit. For example, the total profit for Sido Muncul is
30 percent, and yet the company spends 40 percent for the investment on the
buyer. With this, Sido Muncul is on loss for spending more than their profit but
for what? Just like the name of this business model, Sido Muncul allocates their
investment for the marketing activites of their products in other countries. The
buyer of their products is completely controlled by Sido Muncul regarding how
they are going to sell the products, how many products should be available in
each store. In return, Sido Muncul would support the marketing activities in
the designated country where the buyer operates their business. There is only
one exclusive distributor chosen in one country that Sido Muncul penetrates
using ‘marketing’ business model.
To implement the ‘marketing’ business model in penetrating other

countries, Sido Muncul is obligated to have sufficient amount of investment
and other preparation needed⸺ such as registration, distributor selection, and
other requirements need⸺ which can bring the company to one or two years
94
of deficit. But after the downfall, the number of sales growth of Sido Muncul’s
products are expected to grow bigger and bigger.
“nah yang terakhir bisnis model namanya marketing. Marketing ini another
level. Intinya gini, sama seperti semi-marketing ya sama seperti semi-
marketing, tapi tadi untung misal 20 persen kan tadi perusahaan diambil misal
5 persen, nah ini diambilnya kita spending nya 30.” (Carlo Lukman)
“nah itu. Itu bener sekali. Jadi emm ini bener-bener sheila dalam tanda kutip
disetir sama principal. Sheila tolong jualnya di indomart ya, atau alfamart
segala macem, harganya segini, kamu marginnya segiini, kamu harus kasih ke
retailer segini, ke wholesaler segini. Jadi kamu bener-bener disetir. Aku mau
jualan ini, tugas kamu harus availability. Kesekian warung, kesekian took,
kesekian supermarket, itu yang ditarget. Satu toko isinya harus segini gini gini
gini. Jadi kita bener-bener take control of you. So, kita in return apa? Oke saya
akan bikin tv commercial. Tau dong ga murah kan? Nah tv commercial dengan
endorser artis terkenal, sama seperti sini lah. Atlit, whaterver it is, tapi kita
bicara ini country baru, market baru, jadi yang dilakukan adalah pasti tahun
pertama sama tahun kedua pasti suffer. Perusahaan, yakan, nah setelah itu
expected bisa eee besar. Besar sebesar Indonesia.” (Carlo Lukman)
Up until recent years, Sido Muncul export activites is not focused

enough to bring a significant contribution to the company’s total sales, still less
than one percent from their total sales. According to the informants from Sido
Muncul, in the last two years, the company only exports their products through
‘trading’ business model, which holds the lowest degree of sustainability.
Since 2016, the ‘trading’ business model was reduced and Sido Muncul more
focuses on ‘semi-marketing’ or ‘marketing’ business model. In result, the total
country exported by Sido Muncul lessened to 15 countries, but profit-wise, the
number is increasing better than before.
“…Eee yang kecil-kecil datang kesini beli 10 karton, 15 karton untuk ekspor
di hand carry sudah dianggap ekspor. Nah waktu saya masuk ya istilah saya
saya rapihkan aja gitu. Jadi yang begitu-begitu saya gak layanin. Kalo mau
beli ya beli ke pasar pagi atau ke distributor local kami. Jadi kami yang bener-
bener ekspor yang besar. Jadi customer itu shrinking. Jadi yang banyak itu
95
shrinking jadi cuma sekarang 15 country eem tapi secara omzet naik malahan.
Karena yang fokus tadi. Karena ada yang sudah lama trading, long-term
trading partner kan? Ya kenapa gak kita leverage jadi paling enggak semi-
marketing gitu. Eeee nah produk ini produk bagus gitu tolak angin ya jadi kita
sekarang lagi ada projek untuk marketing export marketing bisnis model untuk
negara Philippine…” (Carlo Lukman)
“…jadi sekarang customer tinggal kira-kira tinggal 15an lah gitu. Tapi ya itu
yang bener-bener ya kerjanya kita siapin ini-ini dapetnya lumayan kita
minimum 25 ribu dollar itu di sido muncul itu value standard nya kita. Kecil
itu. Dulu ada yang seribu dollar dua ribu dollar, dibanding 25 ribu kan jauh.
Cuman ya dari sisi ekspor buat company lain mungkin 25 ribu itu peanut tapi
for us its still significant.” (Carlo Lukman)
Next, in choosing their potential market to be entered using ‘marketing’

business model, firstly Sido Muncul carry out a country-visit to observe the
market profile in the appointed country and to look out for the potential
distributor in that country. Several aspects that is considered by Sido Muncul
in choosing their distributor in other countries are includes the network
coverage, how long is the experience in the business, financial aspect, and the
principle holds by the distributor.
Country
XX Convenience Store
PT Sido
Supermarkets End
Muncul Tbk Distributor Stores User
XX Pharmacy
Export Retail
Modes Customer
Border
Figure 4-17 Marketing Distribution of Sido Muncul

Figure…..

96
4.9 Research Objectives Discussion
4.9.1 Internationalization of Sido Muncul
In line with this globalization era, the development of the global economy
is now familiar with such thing as internationalization. The trends of firms
buying, developing, producing and selling products and/or services across the
border⸺ other than their local market⸺ are now considered as common
activities done by various firms from various industries. This practice was done
by the firms usually because of either proactive or reactive motives. By
internationalize, firms would be able to find new customers of their products
and/or services, increase their profitability, broaden their international
experience and expand their market, gain more network and information in the
global markets, and many other reasons.
“…we hope within 5 years (dengan melakukan ekspansi pasar) people already
starting to understand about tolak angin and then in the Philippines becoming
the same with Indonesia. Bukan kita yang cari tapi di pintu kita ngantri
distributor yang tinggal kita pilih.” (Carlo Lukman)
In this research, as mentioned on the title above, the author tries to identify the
internationalization of an herbal medicine company in which holds the biggest
market share in Indonesia and already established for 67 years, PT Industri
Jamu dan Farmasi Sido Muncul Tbk.
The decision to do internationalization is not an easy step to take by any

companies at the beginning of their business activities especially when they
were still comparatively small. PT Industri Jamu dan Farmasi Sido Muncul
Tbk was born from a couple of husband and wife who dare to dream big and
establish their home-industry herbal supplement business back in 1951.
Throughout their journey, Sido Muncul was managed hereditarily from
generation to generation which makes this company starts off as a family firm.
As Pukall & Calabrò stated in 2014, family firm tends to have a negative
impact on the internationalization with the characteristics such as the
percentage of family members within the management or the board of director
and minimum presence of shareholder equity from the outside party. Thus in
97
2013 precisely in November 18th, in order to gain more trust from their
customer and to increase the sustainability of the company without worrying
that family conflict might interfere in the future, Sido Muncul finally decided
to register their stock to Indonesia Stock Exchange (IDX) and becoming a
public company.
After Sido Muncul became a public company, they increasingly try to

expand their market globally and boost up their international trade activities
through exporting. In fact, Tolak Angin of Sido Muncul has already reached
the foreign market even before the company declares their “go public”
announcement. As stated in their annual report, Sido Muncul products have
already available in 15 countries including: Malaysia, Brunei Darussalam, The
Philippines, Myanmar, Suriname, South Africa, Nigeria, Australia,
Netherlands, and other several countries in Europe and United States.
Because of its efficacy and massive promotion, Tolak Angin manages to

become the most well-known product from Sido Muncul with the highest sales
contribution to the company. With the success story in the domestic market,
Tolak Angin has also succeeded to enter the foreign market although, at the
beginning of their foreign activities, Sido Muncul only responds to the external
trigger which is usually an unsolicited demand from the foreign customers.
Later on, the products reached those foreign customers only through individual
or groups who bring them via hand carry.
“…Jadi saya join perusahaan ini dua tahun lalu. 2016. Pada saat itu
perusahaan bisa dibilang gak fokus lah ke ekspor. Eee yang kecil-kecil datang
kesini beli 10 karton, 15 karton untuk ekspor di hand carry sudah dianggap
ekspor…” (Carlo Lukman)
This kind of export activity has a very low degree of sustainability for the
company to keep maintain the number of sales of the product in the foreign
markets.
As the company grew bigger from time to time, Sido Muncul’s product
enters the foreign markets through a local trader where usually these local
traders bought a larger number of Sido Muncul’s product along with other
98
products from different companies and different industries, to be shipped

together in one container to the foreign market. This way, Sido Muncul achieve
a better degree of sustainability and perpetuity, but still very low compare to
other methods adopted by Sido Muncul.
“Produk SidoMuncul (tidak hanya Tolak Angin saja) sudah berada di 16

negara didunia ini, namun sebelumnya penjualan ke luar negeri dilakukan
dengan hanya menjual pada trader local masing masing negara / diimport oleh
pedagang local.” (Johan Hidayat)
“Trader, biasa trader. Trader itu jadi, namanya trader ciri-cirinya itu dia beli
barang banyak. Jadi barang sido muncul ambil 200 karton, barang krupuk
ambil sekian, barang selai ambil sekian, ambil saos ambil sekian digabungin
jadi satu container. Di shipment bareng bareng. Itu namanya biasa trader
begitu. Gitu…” (Carlo Lukman)
Afterwards, as the company increases both their amount of allocated

resource committed and their commitment to internationalize, Sido Muncul
now increase their portfolio by establishing company’s representative office in
the Philippines in 2017 and also establishing a new entity to monitor the
marketing activities and export sales in Nigeria⸺ Muncul Nigeria Limited⸺
in January 2018.
“…sekarang kami mulai aktif melakukan kegiatan perdagangan ke luar negeri

secara aktif. Dengan mendirikan kantor Cabang atau perusahaan yang
memiliki potensi besar. Karena produk kita sudah dapat diterima oleh
masyarakat di masing2 negara, sehingga potensi ini tidak kami sia siakan.”
(Johan Hidayat.)
The reason of why Sido Muncul sell their products, not only to the domestic
market but also to the international markets, is that other than they wish to
increase their sales number contributed by the export activities, Sido Muncul
also see the potential market from the customer in other country who also agree
with the efficacy of the Sido Muncul’s products, and thus Sido Muncul can
introduce Indonesian heritage jamu to the world. Sido Muncul’s decision to
increase their international activities indicates that they have a good experience
99
in herbal supplement industry which gave them the market-specific knowledge

needed to continually expand their market and improve their profitability.
Therefore, as the market knowledge and experience possessed by Sido Muncul
keeps on improving, this will enhance the capabilities and competencies of
Sido Muncul and thus lowering the uncertainty for the company to
internationalize.
Based on the explanation above, the author finds that the

internationalization process of Sido Muncul correspond with the Uppsala
internationalization approach by Johanson & Wiedersheim-Paul (1975) and
Johanson & Vahlne (1977) which divided the internationalization process into
four steps or degree of international involvement. These are:
 Step 1: no regular export activities

 Step 2: export via independent representatives
 Step 3: establishment of a foreign sales subsidiaries
 Step 4: foreign manufacturing/production
First, Sido Muncul begins their international activities by exporting to several

countries, but it’s only done sporadically. As mentioned before, Sido Muncul
simply responds to the spontaneous or irregular demand from the customer in
other countries and not following any systematic shipping method at the
beginning of their export activities. With this kind of involvement, Sido
Muncul would be able to gain more general knowledge and market-specific
knowledge concerning their products in other countries so that incrementally,
they can move to the next degree of internationalization. In this kind of export
activities, Sido Muncul does not yet take into account regarding the psychic
and geographic distance matter.
As the commitment to grow bigger in the international market gets

higher, Sido Muncul then entered the foreign markets through independent
representatives, be it a trader or a distributor in the host country. This step
follows the next stage (stage two) of internationalization according to Uppsala
Model. Sido Muncul decided to export their products through trader or
distributor first because they want to expand their international activities one
step at the time, for establishing a company representative in a foreign country
100
needs a relatively large amount of investment. But still, Sido Muncul chooses
their distributor very carefully so that they can have a long-term relationship
and they can focus on those relationships to build a profitable cooperation
between two parties.
“…yang kecil-kecil datang kesini beli 10 karton, 15 karton untuk ekspor di

hand carry sudah dianggap ekspor. Nah waktu saya masuk ya istilah saya saya
rapihkan aja gitu. Jadi yang begitu-begitu saya gak layanin. Kalo mau beli ya
beli ke pasar pagi atau ke distributor local kami. Jadi kami yang bener-bener
ekspor yang besar. Jadi customer itu shrinking. Jadi yang banyak itu shrinking
jadi cuma sekarang 15 country eem tapi secara omzet naik malahan. Karena
yang fokus tadi. Karena ada yang sudah lama trading, long-term trading
partner kan? Ya kenapa gak kita leverage jadi paling enggak semi-marketing
gitu…” (Carlo Lukman)
Moving on to the next stage of the internationalization according to Uppsala

Model⸺ which is to establish a foreign sales subsidiary⸺ in 2018 the
company manages to launch their first foreign representative and prove a
stronger commitment of Sido Muncul to operates internationally. This
commitment of Sido Muncul to increase their international activities was the
result of their previous experience where they operate in a simpler way and
thus gradually gain bits of knowledge about foreign markets.
The author also finds in this research that the success of Sido Muncul
in the domestic market helps and affects the company in making their decision
regarding the international activities. This finding corresponds with the
discussion in Mo Ziying in 2015, where according to the Establishment Chain
U-Model by Johansson and Wiedersheim-Paul (1975), firms that have the
strong base in the domestic market before operates internationally will supports
the company to maintain their financial stability. If a company financially
stable, this will encourage them to increase their participation in foreign market
activities.
101
4.9.2 International Competitiveness of PT. Industri Jamu dan Farmasi

Sido Muncul Tbk
As the previous section discussed about the Establishment Chain

internationalization model, before a company reach its success story in the
international markets, their position in the domestic market is crucial in shaping
their competitive advantage. Thus, in this section, the author elaborates more
of the firm’s international competitiveness starts from nation-wide
competitiveness using Porter Diamond Model, and the analysis of industry and
firm’s competitiveness using Porter’s Five Forces and SWOT analysis.
4.8.2.1 Porter Diamond Model

1. Factor Conditions
- Natural Resources
Sido Muncul is a company that plays in the herbal supplement

and pharmaceutical industry. They most well-known product is
Tolak Angin which holds the biggest market share in the herbal
medicine products, especially for jamu, an Indonesian traditional
medicine with plants as their main raw material. Thus, to be a
player in herbal medicine industry especially for jamu, the
conditions of the natural resources are crucial for this industry.
Fortunately for Indonesia, Indonesia is very abundant for its
unique biodiversity which also covered by about 143 million
hectares of tropical forest. It is estimated that there are 28.000
plants species in Indonesia with 5.000 out of them are categorized
as medicinal plants by the Medicinal Herbs Index in Indonesia,
and according to the National Agency of Drug and Food Control
(Badan Pengawas Obat dan Makanan), there are 283 plant
species that have been officially registered for medicinal use
while the rest of them are used traditionally. This condition is one
of the main reason why herbal industry in Indonesia is in a good
prospect ahead.
102
“he em, kalo kita ngomong tanaman sumber daya, ya kayak

misalnya eee sido muncul, herbal, bahan bakunya tuh emang
semua ya, yang khusus herbal ya, itu semua bahan baku utama
tanam-tanaman itu hampir mungkin 90-95 persen itu diambil dari
Indonesia. Lokal. Ntah yang dari Jawa, Kalimantan, Sumatera,
itu kita ambil semua local resources gitu. Jadi ya saya setuju gitu
kalo misalnya emang menjajikan, ya menjanjikan. Source nya
gampang, resource untuk raw materialnya juga gampang…”
(Billy Utama)
- Knowledge resources
This kind of resources includes the recipe and prescription which

will determine the efficacy of jamu medicine products. In
Indonesia, there is numerous number of players in jamu or herbal
medicines industry, from those who are classified as a Traditional
Medicine Industry (Industri Obat Tradisional) to Small Industry
of Traditional Medicine (Industri Kecil Obat Tradisional).
According to the Ministry of Industry of The Republic of
Indonesia in August 2017, there are approximately 986
companies that are active in jamu industry. 102 out of them are
categorized as the Traditional Medicines Industry, while the rest
are categorized as Small Industry of Traditional Medicines with
most of them are based in Java region. With these numbers, the
author concludes that the access to starts a small industry on
traditional medicine is rather simple, supported with an easy
access to the raw materials as well as which also signifies the
common or basic recipes of a jamu has been traditionally
inherited from generation to generation.
- Sophisticated technology along with a research and

development
Back in the days, the use of jamu and other traditional remedies
are perceived to be “outdated” because of its preparation method,
its presentation and even because of its taste. Now, with a shift in
103
the technology sector, the herbal medicine industry has become

an industry with technical innovations. This means, with
technology as an aid, the herbal medicine industry could
accelerate their growth concerning there are still huge numbers of
medicinal plant species in Indonesia where its efficacy still not
officially proven. The Ministry of Industry of The Republic of
Indonesia also believes that with an appropriate utilization of
technology and raw material, the jamu and herbal medicine
industry will be one of the most crucial sectors that drives the
economy of Indonesia.
- Human Resources
Human resources are the main condition in enhancing research

and development (R&D) in jamu and herbal medicine industry.
An expert or talent in this particular field of study is heavily
needed in this industry. Other than to discover new efficacy of a
medicinal plant, the role of a researcher could also scientifically
prove that generally, most of the medicinal plants are safe and
confirm the false belief spread over the community.
2. Demand Condition
The economic condition of a country is having an impact to the
one industry’s demand condition. In Indonesia, its economic
growth is finally showing their highest number in 2017 since its
downfall in 2014. This improvement is supported by several
elements including an increase in commodity’s price, government
expenditure, and household consumption expenditure (Sido
Muncul, 2017).
As mentioned previously, the demand condition in the domestic

market (Indonesia) for jamu industry is showing decent numbers
over the years. Jamu industry itself is divided into several
categories such as the herbal medicines, food & beverages,
cosmetics, as well as spa & aromatherapy necessities. In this
104
research, the author only focused on the discussion of herbal

medicines industry.
Nowadays, in the middle of a widely spread of vitamins and other

kinds of supplements, the fame of herbal ingredient still doesn’t
lose its place. The trend of living healthy among the community
also boosts the demand for the herbal medicines recently.
Therefore, although the demand condition in Indonesia is
reported to be stagnant until 2015, the jamu and traditional
medicines industry in Indonesia still showing a good number of
sales which in the number of IDR 16 trillion in 2015
(Kompas.com, 2016). This number also contributed by major
Indonesian jamu companies such as Sariayu Martha Tilaar, PT.
Sido Muncul, PT. Deltomed, PT. Pharos, and many more. Hence,
the customer acceptance toward jamu in Indonesia is still showing
a positive respond. This statement also supported by one of the
player in the industry, PT Sido Muncul Tbk, where they manage
to increase their net sales number for about 0.9 percent from the
previous year in 2015.
Furthermore, the collected data from the questionnaire in this

research also pointed out the positive response from the majority
of the respondents toward jamu in Indonesia.
Experience Consuming Jamu

60 51
50
40
30
20
8
10
0
Have you ever tried jamu before?
Ya Tidak
Figure 4-18 Experience Consuming Jamu

105
From the figure above, out of 59 respondents, 51 of them claimed

that they have been consuming jamu before which is around 86
percent from the total respondents. As can be seen from this data,
it is shown that the consumption rate of jamu or herbal
medicines/supplements by the respondents in this questionnaire
are still relatively high.
The trend of a healthy and ‘back to nature’ lifestyle is considered

to be the main driver of the current demand condition in jamu
industry in Indonesia where the community tend to prefer a more
safe and healthy way of consuming medicines by avoiding the
chemical ones. According to Mr. Billy Utama as one of the
interviewed respondents in this research, the jamu industry in
Indonesia is quite promising in the future because of the abundant
resources possessed by Indonesia and this healthy and ‘back to
nature’ lifestyle that encourage the people to choose herbal
medicines/supplements over chemical medicines.
“…Source nya gampang, resource untuk raw materialnya juga

gampang, dan juga satu, trend kedepannya adalah konsumen
mau sesuatu yang lebih safe, sesuatu yang lebih natural, kayak
trend back to nature gitu-gitu itu yang lebih saya bilang sih lagi
on going lah. Even di amerika pun penggunaan chemical drugs
itu lumayan berkurang. Kayak misal di jepang juga dokter-dokter
sana juga udah bikin prescription untuk eee obat-obat herbal. Di
China apalagi, government nya sangat-sangat support
traditional Chinese medicine yang which is umm even kayak
sinshe lah kalo sana kan notok-notok tradisional sinshe sinshe
nya tuh udah punya license seperti itu. Makanya, menjanjikan
gak herbal? Ya menurut saya sih quite promising indsutri ini.”
(Billy Utama)
3. Related and Supporting Industries
The related and supporting industries for jamu industry in

Indonesia covers several industries. These includes the upstream
106
industries such as raw material suppliers and extraction company;

mid-stream industries such as the research and development
(R&D) organization and packaging industry; and down-stream
industry such as logistic and distribution industry. These
industries are identified by two out of three informants in this
research, Mr. Johan Hidayat and Mr. Billy Utama.
“…Berkesinambungan lah ya, kita juga pasti butuh industry

distribution channel, industry logistic segala macem, semarang
herbal juga ya kita kan butuh industry-industry
berkesinambungan juga. Itukan vertical kan.” (Billy Utama)
“…as long as its related with health care industry dan

consumption maksudnya yang berhubungan dengan konsumsi
kesehatan atau health care industry, itu kita bisa team up, gitu.”
(Billy Utama)
“Industri pendukung: Industri kemasan, Perusahaan distribusi.”

(Johan Hidayat)
As mentioned above, jamu industry is highly related to an

extraction company as well as research and development
organization (R&D) in order to create an innovation of a product
and to fully utilize the resources provided by the supplier in this
industry. Moreover, for the products to reach its customer, a
suitable distribution channel and a good corporation with logistic
industry could be beneficial for jamu industry in Indonesia sales
number. Thus, these related and supporting industries could be
perceived as a crucial aspect to the competitiveness of Indonesian
jamu industry.
4. Firms’ Strategy, Structure, and Rivalry
Jamu industry in Indonesia consist of many players in the industry

including big company such as PT Sido Muncul and PT Deltomed
as well as small enterprises such as home-industry jamu
production where each player in this industry are equipped with
107
their own recipes of their jamu products. In Indonesia, the term

‘medicine’ is allowed to be included in the packaging of the
product however, if the player in this industry wish to be able to
compete internationally with the term ‘medicine’ still included in
their product description, the registration process would take a
longer time and slow down the process of entering new market.
Therefore, according to one of the informant from PT Sido
Muncul Tbk, this issue could be anticipated if they registered their
product(s) as a ‘supplement’ rather than ‘medicine’.
In regard to the demand condition of herbal

medicines/supplements industry in Indonesia, the rivalry amongst
players in this industry should be able to trigger a more
competitive action between them. Investment in research and
development (R&D), certification such as CPOTB (Cara
Pembuatan Obat Tradisional yang Baik), and a buildment in
brand awareness, should be able to support the nations to achieve
its competitive advantage in this specific jamu industry and help
the company itself to develop their competitiveness to compete
internationally.
5. Government and Chance
Government and chance are also included in the Porter Diamond

Model. So far, these two aspects have a good impact on jamu
industry in Indonesia. Two informants from PT Sido Muncul Tbk
claimed that Indonesian government really support this industry
to develop because jamu itself is considered as part of Indonesian
culture that the government want to introduce to the other country
and the world. They also stated that the registration process for
jamu products in Indonesia is more uncomplicated compare to the
regular medicines as long as their products are 100 percent herbal.
“ngg ya kita pertama dari sisi government support sangat sangat

support. Kenapa? Karena jamu itu part of culture. Indonesian
culture gitu. Yang bagian dari budaya Indonesia which is ga akan
108
mungkin dimatiin lah sama government. Dulu pernah ada kaya

gerakan minum jamu bersama di semua intansi pemerintah setiap
hari kamis kalo ga salah saya lupa di semua instansi
pemerintahan gerakan minum jamu bersama. Ya itu kan part
untuk dorongan industry herbal di Indonesia, kedua dari sisi
regulasi, industry jamu tuh ee lebih mudah dibandingkan industry
obat-obatan gitu. Kalo misalkan obat-obatan mau registrasi
suatu produk, tes produknya itu bisa sampe ummm taunan.
Mungkin paling cepet itu tiga tahunan. sementara untuk jamu, itu
paling cepat paling cepet itu bisa bisa bisa enam bulan udah
keluar. Atau enggak setahun lah. Enam bulan sampe setahun.
Karena bisa juga kan dua tahun, tapi dari sisi regulasi kita oke,
selama semua produk kita 100 persen herbal, kita dimudahkan.”
(Billy Utama)
“Pemerintah cukup mendukung, misal dengan program “minum

jamu bersama”. Tentu saja Pemerintah harus mendukung karena
produk jamu merupakan warisan nenek moyang bangsa
Indonesia yang wajib dilestarikan.” (Johan Hidayat)
In addition, the chance or opportunity that exists for this industry

also supporting jamu industry in Indonesia to keep on growing.
As previously said, the trend of healthy and ‘back to nature’
lifestyle together with the abundant resources owned by
Indonesia, are included as one big opportunities that can be seized
by the player in this industry. Moreover, the development of
modern technology could also considered as a chance or
opportunity in this industry to support the innovations on research
and development (R&D) activities and may increase the
effectiveness as well as the efficiency of their production.
109
4.8.2.2 Porter’s Five Forces

- Threat of New Entrants: As Porter describes in 2008, the
threat of new entrants can also be associated directly to the
barriers of entry. According to Sido Muncul, there are several
points which can be considered as the strongest entry barrier in
this specific industry for the time being, the herbal/traditional
medicine and supplement industry. Basically, to enter this
industry, there are two points that is the core aspect in this
industry and is very difficult to overcome to any new comer in
the industry. Before all that, there are two kinds of industry
scale in herbal/traditional medicine industry which is the
traditional medicine industry (larger scale) and small industry
of traditional medicine (smaller scale). For the small industry of
traditional medicines in Indonesia, there are approximately 800
players within this scale. With a number this big, it is reliable to
consider that to enter this industry is quite easy as long as the
potential new entrant has the easy access to obtain the raw
material.
However, in traditional medicine industry scale, which is the

bigger scale compare to small industry of traditional medicine,
capitals as well as the recipe/formula are the two main barriers
that prevent the potential new entrant to enter the industry.
“Saya akan tetep bilang eee industry herbal ini high barrier
entry gitu. Meskipun yang rumah-rumahan kecil itu bisa, tapi
ga akan sebesar ee sido muncul. Maksudnya kalo untuk menjadi
sebesar sido muncul itu akan butuh waktu yang sangat lama.
Even kalo kamu peratiin kalo beberapa kemaren kan nyonya
meneer aja collapse, yakan, jamu jago juga certain apa berapa
persen market sharenya sama Cuma produk tertentu doang
seperti itu.” (Billy Utama)
As mentioned before, recipe and formula is the core of this

business. The efficacy of the formula is what makes the
110
customer repurchase the herbal medicine/supplement product

and proved its usability so that the customer has the sustainable
preference of the product. This efficacy is the hardest and
strongest entry barrier in herbal medicine/supplement industry
for the formula and the recipe behind it that would probably
needs a lot of time to make the perfect blend of the formula.
Other than the efficacy of its product, capital is also a crucial
aspect in this traditional medicine industry. Even though this
industry can be entered by anyone, including home-industry of
herbal medicine. But, for reaching the scale as big as Sido
Muncul, capital⸺ like any other industry⸺ is essential in
herbal medicine industry. Herbal industry now is tightly
corresponded with the technology development especially with
abundant resources possessed by Indonesia which drive the
R&D’s growth more rapidly. Therefore, according to Sido
Muncul, to become a big player in this industry, two crucial
aspect which also the hardest barrier to conquer is the efficacy
of the formula/recipe and the capital possessed by the company.
“kalo kita ngomong barrier, high entry barriernya tuh yang

paling tinggi tuh justru menurut saya bukan modal. Menurut
kita bukan modal, melainkan resep dan formulasi. Gitu. Kalo
modal, sekarang industry jamu di Indonesia itutuh lumayan
fragmented, maksudnya fragmented tuh umm terdiferensiasi
sama industry-industri jamu yang kecil yang jamu-jamu
rumahan. Nah itu sangat banyak tuh industry indsutri jamu
rumahan indsutri kecil yang rumahan. Makanya saya bilang ya
untuk become a big player, maksudnya setara sido muncul
memang entry barriers nya salah satunya adalah modal lah.
Karena, ya seperti yang saya bilang, karena sido muncul tuh
production capacity atau economic of scale nya jauh lebih
besar dibandingkan dengan perusahaan-perusahan lain. Tapi
yang membuatkan sido muncul ya balik lagi, core bisnis kita
jamu, jamu itu identik dengan resep nenek moyang. Jadi yang
111
paling, high entry barrier yang paling tinggi menurut kita itu
ya mungkin salah satunya itu adalah resep.” (Billy Utama)
- Bargaining Power of Suppliers: According to Porter in 2008,

a supplier with more powerful bargaining power over the
company would be able to capture more value for themselves
by putting a higher price of the resources, limiting service or
quality or even charging different price to different player in the
industry. Fortunately, the natural resources needed in the
herbal/traditional medicine industry in Indonesia are mostly
came from the local farmers which tend to charge the normal
market price and won’t cost a higher price for those resources
because the local farmers also need to put the competitive price
in the market in order to sell their yields. So basically, both the
player and the supplier in the herbal medicine industry are
dependence from one to another because the local farmers need
these players in the industry to buy their yields in the harvest
season, on the contrary, the player also needs thes local farmers
to supply the raw materials needed in the production. Therefore,
supported with the Indonesian government in herbal medicine
industry especially jamu industry, hopefully there won’t be any
trouble regarding the access to the raw materials except if there
is a crop failure in certain season.
- The Bargaining Power of Buyers: Similar with the bargaining
power of the suppliers, a stronger power from the buyer can
force a lower price of a product and/or service, demanding for
a better quality which will require more cost in the process
which naturally bring the competition in the industry more
intense and forced the player in the industry to innovate that will
require them to spend another cost (Porter, 2008).
The buyers’ in herbal medicines industry in Indonesia (refer to
the end-user of this industry) are large in number and covers all
kinds of demographic aspect of segmentation. Products from
herbal medicine/supplement in Indonesia have a wide-variety
112
of product segments with different usability which can be

consumed from the children, youngster, and seniors. Herbal
medicines/supplements also tend to have a cheaper price
compare to chemical medicines which give the buyer a more
cost-advantage experience that anyone would be able to afford
it. In addition, the products sold in this industry also
differentiated by their efficacy of the formula/recipe as
mentioned before in the ‘threat of new entrants’ section. Thus
with the argument above, the bargaining power of the buyer for
the herbal medicines/supplements industry in Indonesia can be
considered as not too strong and even more likely to weak
compare to the business player in this industry.
- Threat of Substitute: A high threat of a substitute product
and/or service could cause a serious misery to the profitability
flow of an industry. At times, most of the substitute products
and/or service satisfy the customers in a different way, and often
more efficiently and more effectively. Therefore, in order to
defend themselves from the threat of substitute products and/or
services, a company should try everything by any means
necessary for example, through marketing or through quality
management.
In herbal medicines/supplements industries, the closest
substitutes for these products are the western pharmaceutical. In
addition, specifically for the energy drink as Kuku Bima Ener-
G by Sido Muncul, the closest substitute for this product is other
kinds of beverages, anything that can help the consumers to gain
more energy and release their thirst such as tea, vitamin-C,
coffee, and so on.
- Rivalry amongst Existing Competitor: According to Porter in
2008, the competition between the existing competitors in the
industry can take any forms including in price discount,
products diversification, advertising, promotion, and after-
service performance.
113
As previously mentioned, there are approximately 986 players

in herbal medicines/supplement industry in Indonesia which
divided into two different scale of the industry, namely the
Traditional Medicine Industry and Small Industry of Traditional
Medicine. Thus, the competition in herbal medicine/supplement
industry in Indonesia are considered to have a ‘loose’
competition because from the total of 986 industries, more than
80 percent out of them are came from small industry of
traditional medicines which usually take form of a home-
industry.
Figure 4-19 Porter’s Five Forces Analysis on Herbal Medicine/Supplement

Industry in Indonesia
Source: The Five Competitive Forces That Shape Strategy (Porter, 2008)
114
4.8.2.3 SWOT Analysis of PT. Industri Jamu dan Farmasi Sido Muncul Tbk
 Strengths (internal, positive factors)
1. Efficacy of its formula of Tolak Angin Sido Muncul
As mentioned before, in herbal medicine/supplement

industry, efficacy is the most essential aspect to survive in
the competition. As one of the oldest jamu industry in
Indonesia, Sido Muncul’s products are basically a traditional
jamu with formula and recipe inherited from generation to
generation, but with the form and taste that were already
modernized to fit the customer preferences. The efficacy
along with the modernized taste of Sido Muncul’s jamu
especially for Tolak Angin is two best combination that has
been proved by many awards received by Sido Muncul and
also by the customers’ feedback. In this specific product
segment⸺ the jamu medicines for preventing colds⸺ Tolak
Angin holds the biggest market share other than its
competitor including Bintang Toedjoe from Kalbe Farma
and Antangin from Deltomed. Kalbe Farma and Deltomed
are also two big local herbal medicine/supplement industries
which also have the same product segment as Tolak Angin.
However, Tolak Angin still maintain the position as the
biggest market share other than the other two because of first,
its efficacy that still cannot be reached by its competitor, and
second one is the taste, that already adjusted to the taste of
the majority of people in this modern era. This strength of
Tolak Angin Sido Muncul also supported with the result of
the questionnaire taken from 59 respondents which from the
total of 45 respondents that has already consume Tolak
Angin before, 40 respondents agreed that they have felt the
efficacy of the products, and 39 out of 45 agreed that the taste
of Tolak Angin Sido Muncul fit with their taste preference.
115
2. Strong Brand Image

The strong brand image possessed by Sido Muncul is
also one of the strongest aspect from Sido Muncul. Because
generally, building a brand image of a product in the mind of
the customer or potential buyer can be difficult. Sido Muncul
build their brand since 1951 before they reach their position
now, just like the statement below which taken by the author
in interviewing one of the informants from Sido Muncul.
“ga banyak perusahaan-perusahaan herbal yang bisa besar
gitu. Umm gabisa besar sebesar sido gitu karena apa karena
satu, brand nya harus lebih kuat, which is brand nya kuat itu
bukan perkara perkara gampang. Kita bangun brand ini
perlu puluhan tahun gitu…” (Billy Utama)
Sido Muncul’s effort in building their brand image often
using an endorser of an actress or an athlete, either from local
endorser or from international endorser. For example, back
in 2015, Sido Muncul associated with professional boxer
from The Philippines, Manny Pacquiao ‘Pacman’, to be the
ambassador of Kuku Bima Ener-G by Sido Muncul. With
cooperating with a well-known figure like this, would
definitely boost the awareness of the potential buyer to Sido
Muncul’s products and gradually would build the brand
image of Sido Muncul’s products.
3. Massive Distribution Channel

Another strength owned by Sido Muncul is their massive
distribution channel. As mentioned before, Sido Muncul has
their own subsidiary named PT Muncul Mekar, which in
charge of the distribution of all Sido Muncul’s products to all
over the nation. PT Muncul Mekar has distributed Sido
Muncul’s products into three different markets which
categorized as modern markets, traditional trade, and
medical channel/pharmacy. These three categories cover
almost all region in Indonesia including the west side,
116
middle, and the eastern side. With a total of 122 sub-

distributor spreaded all over the nation makes, everyone can
find Sido Muncul products in almost everywhere including
supermarkets, wholesalers, stores, and pharmacy/drug store,
or even in the street vendors.
4. Easy Access for Raw Materials

An established relationship with the local farmers to
provide the raw materials brings another advantage for Sido
Muncul, especially if the relationship already last for about
50 years. Sido Muncul cooperated with hundreds of local
farmers in Indonesia to sell 100 percent of their entire yield
to Sido Muncul. Thus, these hundreds of local farmers would
not sell their harvest to other company in the industry.
Therefore, Sido Muncul would not be concerned about their
raw material supplies for they have the advantage of
cooperation with the local farmer which will sell their 100
percent of their harvest to Sido Muncul.
 Weaknesses (internal, negative factors)

1. Slow Respond to the Shift in E-Commerce
Even though Sido Muncul is a jamu industry which
identic with traditional heritage of Indonesia, in doing
business in this globalization era, Sido Muncul has to grow
along with the shift in technologies. Not only in their
research and development area, but also in this more
digitalize era which brings out the term ‘e-commerce.’
Throughout their business operation, not many of Sido
Muncul’s products that is advertised through social media or
another platform on the internet. The online shop of Sido
Muncul that is available in their website also not fully
maximize by the company even though online shop is in the
trend these days. Therefore, to anticipate the future shift in e-
117
commerce, Sido Muncul must act quickly and adapt more

into this digitalized era of business.
“iya sudah ada tapi ya hanya ada gitu cuman pelengkap

belom jadi source” (Billy Utama)
2. Heavily Depends on One Brand, Tolak Angin

Considered as the main product of Sido Muncul with the
biggest growth number and biggest sales contributor for the
company, Tolak Angin are perceived to have most of the
company attention compare to other brands from Sido
Muncul. Other brand from Sido Muncul such as Kunyit
Asem, Susu Jahe, and other brands from their food and
beverages segments are having less attention by Sido Muncul
especially in marketing the products.
 Opportunities (external, positive factors)
1. Export Activities
The foreign markets for herbal medicine/supplement
industry are showing a good number of consumption growth.
With several past experiences by Sido Muncul in penetrated
the foreign markets, increasing their export activities would
be beneficial for the company in order to increase their sales
as well as their business portfolio. With exporting their
products, Sido Muncul could also introduce their products as
an Indonesian brand to the world and thus expanding the
name of Sido Muncul to another country.
2. Utilization of E-Commerce
As mentioned before, with a shift in the technology
especially in business environment opens up an opportunity
for any business players in any industries. With e-commerce,
doing things now can be done only with smartphones and
computers including advertising. People nowadays are lives
side-by-side with their smartphones or laptop. Therefore,
118
Sido Muncul can use this opportunity to put up some ad

about their products in any platform online. It can be in the
form of an adsense in youtube or a pop-up ad when someone
launches a specific application.
3. Infrastructure Development on the Eastern Side of

Indonesia
As the infrastructures in Indonesia are gradually grow for
the past few years, many businesses see the eastern part of
Indonesia as a potential market to grow in creating another
demand other than their main market. With the infrastructure
development on the eastern side of Indonesia, the access of
transportation and logistic are now easier than before and
thus, will affect the price of the product itself in that area.
Therefore, if in the past companies cannot reach this part of
Indonesia because of the high cost in logistic and
transportation, now they can slowly introduce their products
in that area, and finally grow another room for their demand,
including for Sido Muncul.
 Threat (external, negative factors)
1. Competition
Competition in an industry cannot be avoided in any
player in that industry including in herbal
medicine/supplement industry. A healthy competition would
encourage the player in the industry to innovate and increase
the competitiveness of the firm and the industry. However, if
in the future competition became too fierce and lead to an
unhealthy competition between the players in the industry, it
will only slow down the profitability flow of the industry and
threaten the existence of the company.
2. The Rapid Growth of E-Commerce

As mentioned before, a rapid growth in e-commerce can
bring both opportunities and threat. It can open an
119
opportunity for Sido Muncul to marketing their products,

but at the same time, if Sido Muncul cannot keep pace
with the rapid growth of e-commerce, Sido Muncul
would be left behind the other competitor, and it will
affect their market share in the industry. On the contrary,
if Sido Muncul reacts too soon to this change, there are
also potential that Sido Muncul would not make it in this
change.
“…Opportunity dan threat. Opportunity nya kita umm

bisa digitalize, yang tradisional jadi modern lah
pokoknya abis kita digitalize juga kita bisa grab juga
more milenials. In terms of threat, threat nya adalah kalo
kita bergeraknya lama, mungkin innovationnya kurang
atau terlalu lama, kita akan ketinggalan wave nya
gituloh. Kita gak riding the wave gituloh. Kayak main
surfing lah. Orang main surfing kan nunggu wave kan.
Nunggu wave nya kan, wave yang tepat dia baru berdiri
kan kalo wave nya too early, dia jatoh. Wave nya too late,
dia ga akan kedorong kedepan gitu.” (Billy Utama)
4.9.3 International Market Selection of PT. Industri Jamu dan Farmasi

Sido Muncul Tbk
As previously mentioned, Sido Muncul adopted three different kinds of

business model which basically differentiated by the amount of investment
allocated in each business model. The international market selection process
found in this research is the one for the “marketing” business model which
requires the company to invest more than the other two business models. Thus,
before proceeding to the systematic approach suggested, the author learnt
several points related to the international market selection process of Sido
Muncul.
First, the author finds that Sido Muncul divided the foreign markets into
segments based on two main aspects, these are the geographic aspect and
demographic aspect. By geographic, Sido Muncul first targeted the countries
120
that are physically and psychically close to Indonesia and that is, the ASEAN
countries. With relatively close geographically, Sido Muncul also perceived
that these markets would have the similarities with the domestic market here
in Indonesia, regarding the demographic conditions. Characteristics such as the
economy, attitudes & taste, lifestyle, and preference are also taken into
consideration by Sido Muncul. That is why, Sido Muncul choose ASEAN
countries as their initial market in allocating their foreign investment. This
statement happens to be proven by the informants interviewed for this research.
“…Nah masuk angin itu related dengan sebenernya mostly dengan eeee apa
negara dengan demografi yang hampir sama. Nah kalo ASEAN itu kan
demografinya sama, preference nya juga sama, taste, sisi eee apa dari ekonomi
nya juga kan pretty much almost the same. Jadi, dari sisi affordability nya very
affordable gitu. Nah penerimaan rasa juga mereka lebih bisa terima, mereka
familiar dengan rasa jahe, kunyit, mint pedes nah kan kebayangkan kalo misal
kita suruh orang yang bule kan pasti apa sempet, waktu itu adasih orang
jepang yang minum dibilang kayak minum mouthwash” (Carlo Lukman)
“…negara yang sdh bisa menerima produk kami, selanjutnya ke negara2 Asia
Tenggara, alasan: habits dan preferensi mirip dengan masyarakat Indonesia”
(Johan Hidayat)
Hence, this finding corresponds with the international market segmentation

according to (Kotler & Armstrong, 2011) where they divided a large,
heterogeneous markets into smaller group based on its geographic aspect,
demographic aspect, psychographic aspect, and behavioral aspect.
Second, based on the interview done with the informants from Sido
Muncul especially the owner himself and the General Manager of Export
Department of Sido Muncul, the author manages to pinpoint further regarding
the criteria used for each market segmentation done by Sido Muncul in order
to select their international markets. Starts with the geographic segmentation.
As mentioned before, Sido Muncul focuses on entering the neighboring
countries of Indonesia⸺ the South-East Asia countries⸺ to allocate their
investment through marketing activities. The reason for why Sido Muncul
chooses to segment their potential market geographically is because of the
121
similarities on the characteristic possessed by other South-East Asia countries

with the domestic market here in Indonesia. For example, the similarities in the
economic aspect where most of South-East Asia countries were categorized as
developing countries (other than Singapore). The same thing also occurs for
another characteristic such as preference, taste, related symptoms of cold (e.g.
bloated, nausea, sore throat), similar belief in traditional custom or tradition, as
well as the cultural affinity to herbalism. This matter is critically affect the
decision process of Sido Muncul because of their main product (jamu) is
classified as a traditional herbal medicines/supplements which for other
segments of customer, the taste of a ginger, turmeric, and any other herbal
plants might be too strong and unfamiliar with their preference (e.g. customers
from western or European countries).
“iya pedes dan terlalu thick buat mereka ya something new, gak common lah.
Kembali lagi, apakah kita gak mau masuk kesitu? Ya mau cuman ya namanya
target market negara yang besar sekali harus namanya skala prioritas dulu.
Jadi ya saat ini fokusnya ASEAN…” (Carlo Lukman)
“yo ee nanti gini, kalau kita sudah strong di asean, kan tadi itu ya keyword
nya kan priority. Nah setelah kita strong di asean parallel juga kita akan
explore negara-negara lain starting dari bukan eropa sih tapi dari middle east.
Di eee UAE, Pakistan, kan harus kita secure satu halal certificate, kalo kita
sudah punya halal, that is the second step, and then goes to Africa…” (Carlo
Lukman)
Hence, from the statement and analysis above, the author concludes that the
way Sido Muncul choose their international market in this early step and the
way of thinking of the company correlated with the findings by Ojala (2015)
in which stated that the greater the psychic distance to an international market,
the more time and resources that is required to build the network that will
reduce the uncertainty caused by the distance.
Third, after Sido Muncul segment their potential markets into ASEAN
countries, the author also found the next criteria considered by Sido Muncul
that is, the population of the potential target market. According to Decuseară
(2013) as one of the macro-oriented analysis before selecting a target country,
122
the number of population is affecting the market size. In respect with the
demographic growth, the larger number of one country’s population can lead
to a larger scope of the demographic segmentation. Thus, this consideration
also part of the criteria used by Sido Muncul in choosing their foreign markets.
This was proven with their recent investment in 2017 at The Philippines where
according to International Monetary Fund (2018), The Philippines holds the
second biggest population among ASEAN countries after Indonesia in 2017.
ASEAN Countries Population (April 2017)

300
261.989
250
200
150
105.305 93.643
100 69.095
52.645
50 32.05
16.013 6.68 5.612
0.429
0
ASEAN Countries
Figure 4-20 ASEAN Countries Population
Value: Millions of People
“…ya namanya target market negara yang besar sekali harus namanya skala
prioritas dulu. Jadi ya saat ini fokusnya ASEAN dan tentunya ASEAN starting
dari penduduknya yang paling besar…” (Carlo Lukman)
“ya kalo ada yang serratus juta penduduk yaa im not going to enter Singapore
yang lima juta penduduk gituloh. Buat apa. Kan inikan masuknya maunya
dalam artian marketing bisnis model tadi itukan. Itu dulu loh ya jangan yang
trading atau yang lainnya” (Carlo Lukman)
123
Finally, after analyzing the criteria used by Sido Muncul in selecting their
foreign markets, the author found that Sido Muncul follows the traditional
international market selection process with a non-systematic approach by
Papadopolous & Denis in 1988 (in Musso & Francioni, 2014) rather than
systematic approach. This conclusion was reached because of their decision
regarding the international market that was heavily affected by the psychic distance
among countries. Thus, this argument support the statement regarding in a real-life
situation, psychic distance became more of a core consideration in international
market selection process when the company has a limited amount of knowledge
and experience in the international area, according to Johanson and Vahlne in 2009
(in Marchi, Vignola, Facchinetti, & Mastroleo, 2014).
However, follow the argument by Ozturk, Joiner, & Cavusgil in 2015

which basically mentioned that those who implement a systematic approach in
their international market selection process show a better performance than those
who are not, such as the advantage of a long-term export activity, numbers of
markets served and the number of the market share of the company. Therefore, as
part of the findings of this research, the author would like to suggest a semi-
systematic proactive approach of international market selection process with a two-
steps screening process that could help Sido Muncul in selecting their foreign
market with regard to their competitiveness along with the criteria used for their
market selection process.
As this proposed screening method is a new thing for Sido Muncul, the
author wishes to keep this screening process to be as simple as it can be Hence, the
author suggest a two semi-structure screening model⸺ where only the searching
part is apporoached methodically⸺ and consist of preliminary screening and fine-
grained screening. The author basically adopt this model from a research done by
Górecka & Szałucka in 2013 which concerning the country market selection
process in international expansion of a leading manufacturers and suppliers of
sanitary articles, cosmetics, and medical devices and from a research done by
Decuseară in 2013 concerning the market selection of commodities containing
polyether polyols to Central and Eastern Europe using GE/McKinsey Matrix. The
basic theory for each step on this model is already explained in the chapter 2.
124
 Preliminary Screening
This is the first stage of the model. At this stage, the author
establishes two ‘knock-out’ or ‘go/no-go’ criteria based on the interview
with the informant from Sido Muncul. This preliminary screening goes like
this: if one or more countries did not meet one or both of these criteria, then
those countries would immediately ‘kicked-out’ and won’t be done any
further analysis on these countries. Hence, in this first stage of the screening
process, two major knock-out criteria were recognized, these are:
- The country will be selected by a ‘total population’ criteria.

Therefore, the two countries from ASEAN countries with least
number of total population will be eliminated. This criterion
was chosen because of the statement from Sido Muncul earlier
which stated that they wanted to start allocating their investment
from the biggest number of the total population first.
- The country must not yet be penetrated by Sido Muncul (with

the ‘marketing’ types of investment).
From the preliminary screening, Brunei Darussalam, Singapore,

and the Philippines are eliminated or screened out from the potential
countries that will take into consideration by Sido Muncul and no longer
need further analysis on these countries.
 Fine-Grained Screening
In this next step, the author use the GE/McKinsey matrix to evaluate
the market or country attractiveness and its relationship with the
competitive strength of the firm. Researcher believes, that GE/McKinsey
matrix is a very efficient tool to help companies select their foreign
markets. The reason for the author choose this model is because, with this
matrix Sido Muncul would acknowledge which are the countries that may
offer the best opportunity for a long-term strategic development; which are
the countries that may offer an opportunity, but there still might be a
political or economic risk that is perceived to be too high for a long-term
strategic development; and which are
125
The countries that have the highest risk amongst all and therefore
the resource relocation is minimal (Decuseară, 2013).
Table 4-2 Economic Indicators

Lao
Cambodia Malaysia Myanmar Thailand Vietnam
P.D.R
Population
(million 16.013.000 6.680.000 32.050.000 52.645.000 69.095.000 93.643.000
people)
GDP per 1.390 2.540 9.810 1.260 6.590 2.350

capita ($)
Consumer
Spending 17.412,42 13.162,92 212.321,41 - - 166.809,99
($)
GDP real
growth 6.9 6.8 5.9 6.7 3.9 6.8
rate (%)
Imports
(% of 64.2 41.5 64.4 - - 98.8
GDP)
Each of the two dimension in this matrix⸺ which is the

market/country attractiveness and the competitive strength of the firm⸺
has four indicators that was chosen by Sido Muncul that will be analyzed
further by the author. Next, the author will assigned the weighting
coefficient for each indicator based on the number desired by Sido Muncul.
The sum of all weighting coefficient for each dimension will be equal to
one (1). After that, for each indicator, will be giving the point from 1 to 5
which will be multiplied by its weight later on.
The analysis of GE/McKinsey matrix for this research is

specifically calculted for Sido Muncul where the countries that is taken into
account is the ASEAN countries which is currently the main target market
for the company based on the interview with the informants from Sido
Muncul.
126
Table 4-3 Market Attractiveness
Lao
Indicators Weight Cambodia Malaysia Myanmar Thailand Vietnam
P.D.R
GDP per 0.4 0.4 0.8 2 0.4 0.16 0.8

capita
Consumer 0.2 0.6 0.4 1 0 0 0.8

spending
GDP
growth 0.15 0.75 0.75 0.6 0.75 0.45 0.75
rate
Imports 0.25 1 0.75 1 0 0 1.25

of GDP
Total 1 2.75 2.4 4.6 1.15 0.61 3.6
Table 4-4 Company Competitive
Lao
Indicators Weight Cambodia Malaysia Myanmar Thailand Vietnam
P.D.R
Product
Quality
0.3 1.2 1.2 1.2 1.2 1.2 1.2
Price 0.2 0.6 0.4 0.8 0.4 0.8 0.8
Product fit
to market 0.3 1.2 0.6 1.5 0.6 0.9 1.2
demand
Managerial
and
0.2 0.4 0.4 1 0.4 0.6 0.6
marketing
staff
Total 1 3.4 2.6 4.5 2.6 3.5 3.8

127
Market Attractiveness
High Medium Low
5
Strong
MLY
Vietnam Thai
Competitive Strength
C
Moderate
MY
L
Weak
0
Figure 4-21 GE/McKinsey Matrix
Based on the GE/McKinsey matrix above, there are two countries categorize
in A class countries, two countries in B class countries, and two countries in C class
countries. Malaysia and Vietnam are included in A class countries in which these
countries are the primary markets that propose the best opportunities for a long-term
strategic development Given criteria from Sido Muncul, Malaysia and Vietnam are the
two best potential target market concerning the total population and consumer
spending. As previously mentioned, Sido Muncul prioritizes the total population of
their potential target market. Hence, Vietnam holds the highest rank on population
amongst other countries after the preliminary screening and is the highest number of
population in ASEAN after Indonesia and Philippines. And for Malaysia, according to
the economic indicator table above, Malaysia has the biggest number of consumer
spending which also considered by Sido Muncul as one of their criteria in choosing
international markets. In addition, Malaysia and Vietnam also the biggest number in
128
import’s volume which indicates that those countries are open to goods and/or services
came from abroad.
In B class countries, there are Cambodia and Thailand in which these

countries are categorized as the secondary markets of Sido Muncul, where in these
countries opportunities are identified but, the are risk comes from its economic or
political aspect that is perceived to be too high to establish a long-term commitment.
In this matter, Sido Muncul may enter this market but only for ’trading’ or ‘semi-
marketing’ business model adopted by Sido Muncul that explained earlier in this
chapter.
In C class countries, there are Myanmar and Laos. These are the countries
that categorized as the last option for Sido Muncul to enter. These markets are
perceived to have a high risk but, to allocate resources in these countries can be done
but as minimal as Sido Muncul can. This position match with the criteria from Sido
Muncul where they prioritized the total population in screening their potential foreign
markets. Lao PDR have the least amount of total population in their country compare
to other five. Besides, Lao PDR also possessed the lowest number in imports number
and consumer spending, while the data for Thailand imports number and consumer
spending are not identified by the author.
4.10 Research Implication
4.10.1 Practical Implication
1. The outcome from this research shows that for the past few years the
way people live their life are affected with the “healthy lifestyle” and
“back to nature” trend in which increasing the consumption and the
utilization of the herbal/traditional ingredients. Thus, with the strength
of Sido Muncul elaborated in this research, combined with the
opportunity in Indonesia’s herbal medicine industry, Sido Muncul have
a big potential in grabbing more of the market share in this industry by
utilizing the e-commerce more effectively.
2. The outcome from this research also shows that the current
internationalization process of Sido Muncul are growing slowly, for
Sido Muncul has not focusing on their export activities until recently.
129
Therefore, Sido Muncul needs to use the fact that their products have
already penetrated several foreign countries, and focus more in
upgrading the export activities in those countries through ‘marketing’
business model.
3. The outcome of this research also found the criteria than can be
considered by Sido Muncul before selecting their international market
which applied in the proposed model of IMS as the findings of this
research.
4.10.2 Theoritical Implications
1. The outcome of this research support the Uppsala Internationalization

Model of internationalization stated by Mo Ziying in 2015 which
explained the simple way for a company to internationalize which starts
off with simple steps to more complex operations implying a step-by-
step process.
2. The outcome of this research support the statement by Che Maznah Mat
Isa, Hamidah Mohd Saman, & Siti Rashidah Mohd Nasir (2014) that
stated that important factors that influencing the market expansion of a
company including the country-specific factors and firm-specific
factors.
3. The outcome of this reseach also support the argument from
(VLAHOVIĆ, KAVALIĆ, BORIĆ, STANISAVLJEV, & ĆURČIĆ,
2016) that stated the size of the retail number have a specific impact on
the market share.
4. The outcome of this research also support the argument from (Liu, Xu,
& Zhang, 2010) which stated that SWOT model can affect the
international competitiveness of a company.
5. The outcome of this research also agrees with the journal by (Górecka
& Szałucka, 2013) which use ‘total population’ and ‘established
market’ as the preliminary screening of international market selection
process.
6. The outcome of this research also follows the journal of Decuseară
(2013) which using GE/McKinsey Matric in selecting foreign market
due to the limited resources possessed by a company.
130
4.11 Research Limitation
The limitations of this research are as follow:
1. This research is done in a relatively short period and limited respondent

and thus, limited information.
2. Supporting data obtained from the questionnaire are still in a narrow-range
of respondents and the numbers of total respondent are still too small.
3. There are still several up-to-date data that is unable to be obtained by the
author, primary and secondary, concerning the limited access owned by the
author.
4. The objective of this research only applicable to PT Industry Jamu dan
CHAPTER 5
CONCLUSION AND SUGGESTION
5.1 Conclusion
This research done by the author in order to analyze the internationalization

and international market selection process of Sido Muncul, and as a result, an
international market selection model proposed in the end of this research. Before
proposing the IMS model, the author looks out for the internationalization process
done by the company and identifies several aspects that can influence the company in
determining the criteria to selecting their international market. Therefore, in light of
the objectives of this research, the author concludes that:
1. As the market leader in this industry, Sido Muncul has done many export
activities to the foreign markets as their attempt to gain more sales. Yet,
the internationalization process of Sido Muncul is rather slow, considering
the company has already been operating in this industry for approximately
70 years. In 2017, Sido Muncul has increase their commitment in
international activites by regularly exports their product to independent
representatives in The Philippines and by 2018, Sido Muncul establishes
their first marketing subsidiary in Nigeria. Two most exported products
from Sido Muncul are includes Tolak Angin and Kuku Bima Ener-G
which also holds the biggest market share in herbal supplement as well as
the biggest sales contributor for the company. Hence, the author concluded
that the internationalization process of Sido Muncul is corresponds with
the Uppsala Model of internationalization process which divided the
internationalization process of a firm starts with an incremental step such
as no regular export activities, export via independent representative,
establishment of foreign sales subsidiary, and foreign
production/manufacturing units.
2. In order to identify the international competitiveness of Sido Muncul, the
author employs three different kinds of model. These are Porter Diamond
Model, Porter’s Five Forces, and SWOT Analysis. Therefore, from this
analysis, the author concludes that for the past few years, the trend ‘back
131
132
to nature’ and ‘healthy lifestyle’ are coming back again due to the
improvement in community’s awareness regarding the chemical
ingredients in medicines that might affect their health and also an
improvement in technology where people can access any kinds of
information including concerning the shape, taste, and smell from the
herbal ingredients. Further, in order to enter the herbal
medicine/supplement industry in Indonesia, the hardest and strongest
barrier to conquer is the formula/recipe of the products itself which will
affect its efficacy. Other than the high barrier to entry this industry, herbal
medicine/supplement in Indonesia has a weak bargaining power of both
the supplier and buyer, loose competition in the industry, and weak threat
of substitution for there are only several substitute products for this
industry. Thus, the author concluded that herbal medicine/supplement
industry in Indonesia is categorized as an attractive industry and hence,
supporting the competitiveness possessed by Sido Muncul⸻ such as
strong brand image, massive distribution channel and the efficacy of its
recipe⸻ to compete in international markets.
3. Next, after analyzing the industry competitiveness of herbal
medicine/supplement industry in Indonesia, the author focuses on the
competitiveness of the object of this researc7h which is Sido Muncul.
Before they choose their target markets, Sido Muncul implement three
different kinds of business model which differentiated based on the
amount of the investment allocated in the host countries. Starting from the
least amount of investment, these are the trading, semi-marketing, and
marketing business model. Afterwards, in choosing their target export
market, Sido Muncul took a careful step in choosing the market that is
geographically and psychically close to Indonesia. Thus, the current Sido
Muncul’s short-term plan in expanding their market into another country
is by focusing in ASEAN markets first, before gradually move to another
country with greater distance geographically and psychically. And for that
reason, using the GE/McKinsey Matrix, the author proposes two suitable
countries for Sido Muncul to expand their market by investing through
their ‘marketing’ business model. These countries are Malaysia and
Vietnam.
133
5.2 Suggestion
5.2.1 For the Company – PT Industri Jamu dan Farmasi Sido Muncul Tbk
Several suggestions from the author to PT Industri Jamu dan Farmasi Sido
Muncul Tbk that is arose from this research are:
a. The company to not too focus only on marketing the Tolak Angin
products, but also those that comes from the food and beverages
segment because Sido Muncul actually has numerous kinds of product
in food and beverage segment but the marketing of these products other
than Tolak Angin and Kuku Bima Ener-G are still very few almost
none.
b. The company could try to utilize e-commerce as a respond of the
current trend in consumer goods business which will also makes Sido
Muncul an Indonesian traditional jamu producer, yet still in the same
wave with the globalization.
c. The company could try to enter foreign markets categorized in A class
countries in GE/McKinsey matrix, Malaysia and Vietnam using a
‘semi-marketing’ business model
5.2.2 For Future Research
In light of the limitations of this research, future research studies are

suggested to:
a. Widen the scope of research into another industry, regions, or countries,

with more respondents and comprehensive information.
b. Future research also encouraged to apply the quantitative method as
well as other model that would strengthen the internationalization and
international market selection concept and understanding.
c. Lastly, future research also suggested to apply the proposed
international market selection model in this research in other area of
industries in order to validate and strengthen the function of the model
REFERENCES
Aczel, P. (2016). Case Study Method. International Journal of Sales, Retailing &
Marketing , 15-22.
Ahmadi, N., & Herlina. (2017). ANALISIS SEGMENTASI TERHADAP

KEPUTUSAN PEMBELIAN PRODUK EIGER DI BANDAR LAMPUNG.
Jurnal Manajemen Magister, 3, 75-95.
Amadeo, K. (2017, September 11th). How the 9/11 Attacks Still Affect the Economy
Today. Retrieved March 1st, 2018, from www.thebalance.com:
https://www.thebalance.com/how-the-9-11-attacks-still-affect-the-economy-
today-3305536
Amianti, G. (2017, October 11th). Top five ASEAN economies to grow over 5%: IMF
outlook. Retrieved March 7th, 2018, from The Jakarta Post:
http://www.thejakartapost.com/news/2017/10/11/top-five-asean-economies-
to-grow-over-5-imf-outlook.html
Badan Pusat Statistik. (2017). Pertumbuhan Ekonomi Indonesia Triwulan III-2017.

Berita Resmi Statistik. Jakarta: Badan Pusat Statistik.
Badan Pusat Statistik. (2018, January 15th). Perkembangan Ekspor dan Impor
Indonesia December 2017. Retrieved March 14th, 2018, from www.bps.go.id:
https://www.bps.go.id/pressrelease/2018/01/15/1416/nilai-ekspor-indonesia-
desember-2017-mencapai-us-14-79-miliar-dan-nilai-impor-indonesia-
desember-2017-mencapai-us-15-06-miliar.html
Badr, P., & Taghvafard, M. (2016). SWOT Framework of Academic Traditional

Iranian Pharmacy (TIP). Trends in Pharmaceutical Sciences, 2, 183-194.
Bakan, İ., & Doğan, İ. (2012). COMPETITIVENESS OF THE INDUSTRIES BASED

ON THE PORTER'S DIAMOND MODEL: AN EMPIRICAL STUDY.
International Journal of Research and Review in Applied Sciences, 441-455.
134
135
Bank Indonesia. (2008). Pola Pembiayaan Usaha Kecil (PPUK): Industri Jamu
Tradisional (Pola Pembiayaan Konvensional). Jakarta: Bank Indonesia.
Barus, H. (2015, December 16th). Ekonomi Dunia Masih Melambat Pada 2016.
Retrieved March 12th, 2018, from www.beritasatu.com:
http://www.beritasatu.com/ekonomi/332007-ekonomi-dunia-masih-
melambat-pada-2016.html
BBC Indonesia. (2016, February 5th). Pertumbuhan ekonomi Indonesia menurun lagi.
Retrieved March 13th, 2018, from www.bbc.com:
http://www.bbc.com/indonesia/majalah/2016/02/160205_indonesia_prtumbu
han_menurun
Berita Satu. (2016, July 24th). Penggunaan Obat Herbal di Indonesia Semakin
Meluas. Retrieved February 28th, 2018, from www.beritasatu.com:
http://www.beritasatu.com/kesehatan/376160-penggunaan-obat-herbal-di-
indonesia-semakin-meluas.html
Brown, R. B. (2006). Doing Your Dissertation in Business and Management: The

Reality of Researching and Writing. SAGE Publications .
Bryman, A., & Bell, E. (2011). Business Research Method 3rd Method. New York:
Oxford University Press Inc.
C. F., F. R., & G. V. (2008).
Chaabna, S., & Wang, H. (2015). Analysis of the State of E-commerce in Algeria.
International Journal of Marketing Studies, 7, 44-58.
Chabowski, B., Kekec, P., Morgan, N., M. Hult, G., Walkowiak, T., & Runalls, B.
(2018). An Assessment of the Exporting Literature: Using Theory and Data to
Identify Future Research Directions. Journal of International Marketing, 26,
118-143.
Chabowski, B., Samiee, S., & M. Hult, G. (2013). A bibliometric analysis of the global
branding literature and a research agenda. Journal of International Business
Studies, 44, 622-634.
136
Che Maznah Mat Isa, Hamidah Mohd Saman, & Siti Rashidah Mohd Nasir. (2014).
Specific-factors influencing market selection decision by Malaysian
construction firms into international market. Procedia - Social and Behavioral
Sciences, 129, 4 – 10.
Chung, T. W. (2016). A Study on Logistic Cluster Competitiveness among Asia Main

Countries using the Porter's Diamond Model. The Asian Journal of Shipping
and Logistics, 32, 257-264.
Cooper, S. (2017, September). Herbal Medicine Market Size and Forecast, By Product
(Tablets & Capsules, Powders, Extracts), By Indication (Digestive Disorders,
Respiratory Disorders, Blood Disorders), And Trend Analysis, 2014 - 2024.
Retrieved December 14th, 2017, from www.hexasearch.com:
https://www.hexaresearch.com/research-report/global-herbal-medicine-
market/
Dacko, S. (2008). The Advanced Dictionary of Marketing: Putting Theory to Use.

United States: Oxford University Press Inc., New York.
Decuseară, N.-R. (2013). Using The General Electric / McKinsey Matrix in the Process
of Selecting the Central and East European Markets. Management Strategies
Journal, 19, 59-66.
Deny, S. (2018, January 31th). Jokowi: Ekspor RI Masih Jauh Tertinggal dari
Malaysia dan Thailand. Retrieved March 15th, 2018, from
bisnis.liputan6.com: http://bisnis.liputan6.com/read/3244421/jokowi-ekspor-
ri-jauh-tertinggal-dari-malaysia-dan-thailand
Djaelani, A. R. (2013). TEKNIK PENGUMPULAN DATA DALAM PENELITIAN

KUALITATIF. Majalah Ilmiah Pawiyatan, 82-92.
Dobbs, M. (2014). Guidelines for Applying Porter’s Five Forces Framework: A Set of
Industry Analysis Templates. Competitiveness Review, 24, 32-45.
Dominguez, N., & Mayrhofer, U. (2017). Internationalization Stages of Traditional

SMEs: Increasing, Decreasing and Re-Increasing Commitment to Foreign
Markets. International Business Review, 1-13.
137
Douglas, S., & Craig, C. (2011). Convergence and Divergence: Developing a

Semiglobal Marketing Strategy. Journal of International Marketing, 19, 82-
101.
Elfahmi, Woerdenbag, H., & Kayser, O. (2014). Jamu: Indonesian Traditional Herbal
Medicine Towards Rational Phytopharmacological Use. Journal oh Herbal
Medicines, 1-23.
Euromonitor. (2017, October). Herbal/Traditional Products in Indonesia. Retrieved

June 27th, 2018, from Euromonitor International:
http://www.euromonitor.com/herbal-traditional-products-in-indonesia/report
Firenzuoli, F., & Gori, L. (2007). Herbal Medicine Today: Clinical and Research
Issues. Based Complementary and Alternative Medicine, 37-40.
Francioni, B. (2014). International Market Selection, Entry Mode Decisions, and

Psychic Distance for SMEs. International Journal Strategic Change
Management, 93-106.
Gaston-Breton, C., & Martıń, O. (2011). International market selection and

segmentation: a two-stage model. International Marketing Review, 28, 267-
290.
Global Industry Analysts, Inc. (2017, October). Losing Appeal of Chemical Remedies
and Growing Consumer Interest in Herbal Medicine and Supplements Drives
Market Growth. Retrieved March 20th, 2018, from www.strategyr.com:
http://www.strategyr.com/MarketResearch/Herbal_Supplements_and_Remed
ies_Market_Trends.asp
Gog, M. (2016). Case Study Research. International Journal of Sales, Retailing &
Marketing, 4, 33-41.
GOODMAN, P. S. (2018, January 27th). Every One of the World’s Big Economies Is
Now Growing. Retrieved March 2nd, 2018, from The New York Times:
https://www.nytimes.com/2018/01/27/business/its-not-a-roar-but-the-global-
economy-is-finally-making-noise.html
138
Górecka, D., & Szałucka, M. (2013). Country Market Selection in International

Expansion Using Multicriteria Decision Aiding Method. Multiple Criteria
Decision Making, 8, 31-55.
Hariyanto, & Firhand. A, A. (2018, April 3rd). Develop Business in Global Market,
Sido Muncul Open Branch in Philippines and Nigeria. Retrieved June 20th,
2018, from industry.co.id: http://en.industry.co.id/read/4749/develop-
business-in-global-market-sido-muncul-open-branch-in-philippines-and-
nigeria
Hewett, K., & Bearden, W. (2001). Dependence, Trust, and Relational Behavior on
the Part of Foreign Subsidiary Marketing Operations: Implications for
Managing Global Marketing Operations. Journal of Marketing, 65, 51-66.
Hewett, K., & Bearden, W. (2001). Dependence, Trust, and Relational Behavior on
the Part of Foreign Subsidiary Marketing Operations: Implications for
Managing Global Marketing Operations. Journal of Marketing, 65, 51-66.
Hollensen, S. (2017). Global Marketing (Vol. 7). London: Pearson.
Hosseini, M., & Dadfar, H. (2012). Network-based theories and internationalization

of firms: Applications to Empirical Studies. International Trade & Academic
Research Conference (ITARC). London, UK.
Hutt, R. (2016, January 21st). What are the 10 biggest global challenges? Retrieved
March 1st, 2018, from www.weforum.org:
https://www.weforum.org/agenda/2016/01/what-are-the-10-biggest-global-
challenges/
International Monetary Fund. (n.d.). Retrieved March 1st, 2018, from www.imf.org:
http://www.imf.org/external/datamapper/NGDP_RPCH@WEO/OEMDC/AD
VEC/WEOWORLD
International Monetary Fund. (2018, April). IMF Data Mapper - Population.

Retrieved June 26th, 2018, from International Monetary Fund:
http://www.imf.org/external/datamapper/LP@WEO/IDN/LAO/MYS/PHL/S
GP/THA/MMR/VNM/KHM/BRN
139
Investor Relation of Sido Muncul. (2018). Company Update Q1 2018 of PT Industri

Jamu dan Farmasi Sido Muncul Tbk. Sido Muncul.
Johanson, J., & Vahlne, J. (1977). The Internationalization Process of the Firm-A
Model of Knowledge Development and Increasing Foreign Market
Commitments. Journal of International Business Studies, 23-32.
Jonathan, A. (2012). Strategi Business to Business (B2B) Dalam Manajemen Bisnis

Perusahaan. Kajian Ilmiah Mahasiswa Manajemen, 26-29.
Julianto, P. A. (2016, August 30th). Industri Obat Tradisional Mampu Serap 15 Juta
Tenaga Kerja. Retrieved June 26th, 2018, from Kompas.com:
https://ekonomi.kompas.com/read/2016/08/30/155210326/industri.obat.tradis
ional.mampu.serap.15.juta.tenaga.kerja
Kamakura, W., Ramón-Jerónimo , M., & Vecino Gravel, J. (2012). A Dynamic

Perspective to the Internationalization of Small-Medium Enterprises. Journal
of the Academy of Marketing Science, 236-251.
Kompas.com. (2018, January 15th). Sido Muncul Bikin Perusahaan di Nigeria.

Retrieved June 28th, 2018, from ekonomi.kompas.com:
https://ekonomi.kompas.com/read/2018/01/15/110717226/sido-muncul-bikin-
perusahaan-di-nigeria
Kotler, P., & Armstrong, G. (2011). Principles of Marketing 14th Edition. New Jersey:
Pearson.
Kubíčková, L., Votoupalová, M., & Toulová, M. (2014). Key motives for
internationalization process of small and medium-sized enterprises. Procedia
Economics and Finance, 12, 319-328.
Lambert, V., & Lambert, C. (2012). Qualitative Descriptive Research: An Acceptable

Design. Pacific Rim International Journal of Nursing Research, 16, 255-256.
Liu, Y., Xu, C., & Zhang, Y. (2010). An Analysis on the International Competitiveness
of China’s Traditional Medicine Industry Based on the SWOT Model.
International Journal of Business and Management, 5, 225-229.
140
Liu, Y., Zhang, Y., & Xu, C. (2010). Analysis of the International Competitiveness of
Chinese Medicine Industry Based on the Diamond Model. International
Business Research, 3, 165-170.
Malhotra, N. K. (2015). Essentials of Marketing Research: A Hands-On Orientation.

Pearson Education.
Marchi, G., Vignola, M., Facchinetti, G., & Mastroleo, G. (2014). International market
selection for small firms: a fuzzy-based decision process. European Journal of
Marketing, 48(11/12), 2198-2212.
Mayer, I. (2016). QUALITATIVE RESEARCH WITH A FOCUS ON

QUALITATIVE DATA ANALYSIS. International Journal of Sales, Retailing
& Marketing, 4, 53-67.
McDaniel, Jr., C., & Gates, R. (2013). Marketing Research Essentials 8th Edition.
Hoboken, New Jersey: Wiley.
Miles, M., Huberman, A., & Saldaña, J. (2014). Qualitative Data Analysis 3rd Edition:
A Methods Sourcebook. California: SAGE Publications Inc.
Mo, Z. (2015). Internationalization Process of Fast Fashion Retailers: Evidence of

H&M and Zara. International Journal of Business and Management, 10, 217-
236.
Musso, F., & Francioni, B. (2014). International Strategy for SMEs: Criteria for
Foreign Markets and Entry Modes Selection. Journal of Small Business and
Enterprise Development, 21, 301-312.
Ojala, A. (2015). Geographic, Cultural, and Psychic Distance to Foreign Markets in

the Context of Small and New Ventures. International Business Review, 1-11.
Oliveira, R., Figuera, A., & Pinhanez, M. (2017). Putting the Uppsala Model Against
the Wall: The Challenges Posed by the Rise of EMNEs. European Journal of
Business and Social Sciences, 6, 63-89.
Özer, K., Latif, H., Sarıışık, M., & Ergün, Ö. (2012). International Competitive
Advantage of Turkish Tourism Industry: A Comperative Analyse of Turkey
141
and Spain By Using The Diamond Model of M. Porter. Procedia - Social and
Behavioral Sciences, 58, 1064 – 1076.
Ozturk, A., Joiner, E., & Cavusgil, S. (2015). Delineating Foreign Market Potential: A
Tool for International Market Selection. Thunderbird International Business
Review, 57, 119-141.
Papadopoulos, N., & Denis, J.-E. (1988). Inventory, Taxonomy and Assessment of
Methods for International Market Selection. International Marketing Review,
5, 38-51.
Papadopoulos, N., & Martıń Martıń, O. (2011). International market selection and
segmentation: perspectives and challenges. International Marketing Review,
28, 132-149.
Popovici, M. (2017). International Marketing and Global Marketing - Delimitation,

Comparisons and Strategic Approaches. Romanian Statistical Review, 74-79.
Porter, M. (1990). The Competitive Advantage of Nations. Harvard Business Review,

71-91.
Porter, M. (2008). The Five Competitive Forces That Shape Strategy. Harvard
Business Review, 24-41.
Prabawani, B. (2017). Jamu Brand Indonesia: Consumer Preferences and

Segmentation. Archives of Business Research, 5, 80-94.
Pringle, J., & Huisman, J. (2011). Understanding Universities in Ontario, Canada: An

Industry Analysis Using Porter's Five Forces Framework. Canadian Journal of
Higher Education, 41, 36-58.
Pukall, T., & Calabrò, A. (2014). The Internationalization of Family Firms: A Critical
Review and Integrative Model. Family Business Review, 103-125.
PUTERA, A. D. (2018, January 10th). Ekonomi Global Membaik, Pertumbuhan 5,4

Persen pada 2018 Dinilai Bisa Tercapai. Retrieved March 8th, 2018, from
kompas.com:
https://ekonomi.kompas.com/read/2018/01/10/132521326/ekonomi-global-
membaik-pertumbuhan-54-persen-pada-2018-dinilai-bisa-tercapai
142
Putri, N. D. (2018, January 31th). Sido Muncul Bidik Porsi Ekspor Mencapai 5%.
Retrieved June 26th, 2018, from Kontan.co.id:
https://investasi.kontan.co.id/news/sido-muncul-bidik-porsi-ekspor-
mencapai-5
Ragland, C., Widmier, S., & Brouthers, L. (2015). A Factor Endowment Approach to
International Market Selection. Journal of Strategic Marketing, 1-15.
Rahman, S. (2003). Modelling of International Market Selection Process: A

Qualitative Study of Successful Australian International Businesses.
Qualitative Market Research: An International Journal, 6, 119-132.
Riasi, A. (2015). Competitive Advantages of Shadow Banking Industry: An Analysis

Using Porter Diamond Model. Business Management and Strategy, 6, 15-27.
Sembiring, L. J. (2017, November 27th). Pertumbuhan Ekonomi Indonesia Kalah dari

Filipina dan Vietnam, Ini Reaksi Sri Mulyani. Retrieved March 7th, 2018, from
economy.okezone.com:
https://economy.okezone.com/read/2017/11/27/20/1821554/pertumbuhan-
ekonomi-indonesia-kalah-dari-filipina-dan-vietnam-ini-reaksi-sri-mulyani
SETIAWAN, S. R. (2018, February 5th). Ekonomi Indonesia 2017 Tumbuh 5,07

Persen, Tertinggi Sejak Tahun 2014. Retrieved March 7th, 2018, from
ekonomi.kompas.com:
https://ekonomi.kompas.com/read/2018/02/05/113820026/ekonomi-
indonesia-2017-tumbuh-507-persen-tertinggi-sejak-tahun-2014
Sido Muncul. (n.d.). Retrieved 2018, from Sido Muncul: http://sidomuncul.id/
Sido Muncul. (2017). Annual Report of Sido Muncul 2017: Enhancing the Quality of
Life.
Sido Muncul. (n.d.). Sejarah Sido Muncul. Retrieved June 16, 2018, from
sidomuncul.id: http://sidomuncul.id/about-us/sejarah-sidomuncul
Sinha, P., Wang, M., Scott-Kennel, J., & Gibb, J. L. (2015). Paradoxes of Psychic
Distance and Market Entry by Software INV's. European Business Review, 34-
59.
143
Siregar, D. I. (2017, August 9th). Perbesar Ekspor, Sido Muncul Rambah Pasar
Filipina dan Afrika. Retrieved March 20th, 2018, from
ekonomi.metrotvnews.com:
http://ekonomi.metrotvnews.com/read/2017/08/09/741758/perbesar-ekspor-
sido-muncul-rambah-pasar-filipina-dan-afrika
Smit, A. (2010). The competitive advantage of nations: is Porter’s Diamond

Framework a new theory that explains the international competitiveness of
countries? Southern African Business Review, 105-130.
Sugiyono. (2015). Metode Penelitian Kombinasi (Mixed Methods). Bandung:

Alfabeta.
The Ministry of Industry of The Republic of Indonesia. (2017, August 3rd). Industri
Kosmetik dan Jamu Mampu Serap 15 Juta Tenaga Kerja - Dunia Usaha.
Retrieved June 26th, 2018, from Kementerian Perindustrian Republik
Indonesia: http://www.kemenperin.go.id/artikel/17920/Industri-Kosmetik-
dan-Jamu-Mampu-Serap-15-Juta-Tenaga-Kerja---Dunia-Usaha
The Ministry of Trade of The Republic of Indonesia. (2014). Warta Ekspor: Obat
Herbal Tradisional. Jakarta.
The Ministry of Trade of The Republic of Indonesia. (2015, January 13th). Industri
Jamu Berpotensi Tingkatkan Nilai Ekspor Tiga Kali Lipat. Retrieved June
20th, 2018, from Directorate General for National Export Development:
http://djpen.kemendag.go.id/app_frontend/accepted_rsses/view/54b46f51-
e020-4ae5-9390-2c3ec0a83502
The World Bank. (2014, December 9th). Laporan Bank Dunia: Pertumbuhan Ekonomi
Indonesia Pada 2015 Diperkirakan 5,2 Persen. Retrieved March 12, 2018,
from www.worldbank.org: http://www.worldbank.org/in/news/press-
release/2014/12/08/indonesia-to-grow-by-5-2-percent-in-2015-world-bank-
report
The World Bank. (2017, December 14th). Pertumbuhan Investasi dan Ekspor Terus
Memperkuat Ekonomi Indonesia. Retrieved March 8th, 2018, from
www.worldbank.org: http://www.worldbank.org/in/news/press-
144
release/2017/12/14/stronger-investment-and-export-growth-continue-to-
strengthen-indonesia-economy
Thertina, M. R. (2017, November 24th). Ekonomi Kuartal III Lima Negara ASEAN
Melaju, Indonesia Tertinggal. Retrieved March 8th, 2018, from katadata.co.id:
https://katadata.co.id/berita/2017/11/24/indonesia-tertinggal-ekonomi-
kuartal-iii-lima-negara-asean-melaju
Toften, K., & Hammervoll, T. (2011). International Market Selection and Growth
Strategies for Niche Firms. International Journal of Entrepreneurship and
Innovation Management, 13, 282-295.
UK Essays. (2013, November). Modes of Entry for International Markets. Retrieved

06 14, 2018, from UK Essays: https://www.ukessays.com/services/example-
essays/business/various-modes-of-entry-for-which-an-organisation-can-
internationalise-their-operations.php#citethis
Uppsala Model, Transaction Cost Theory and Network Model. (2017, February 23rd).
Retrieved April 11th, 2018, from UK Essays :
https://www.ukessays.com/essays/marketing/internationalization-theories.php
Verbeke, A., & Kano, L. (2015). An internalization theory perspective on the global
and regional strategies of multinational enterprises. Journal of World Business,
1-10.
Verdinelli, S., & Scagnoli, N. (2013). Data Display in Qualitative Research.

International Journal of Qualitative Methods, 359-381.
VLAHOVIĆ, M., KAVALIĆ, M., BORIĆ, S., STANISAVLJEV, S., & ĆURČIĆ, N.
(2016). THE IMPACT OF THE NUMBER OF RETAIL OUTLETS ON THE
MARKET SHARE OF CONSUMER GOODS' RETAIL BRANDS.
JOURNAL OF ENGINEERING MANAGEMENT AND COMPETITIVENESS
(JEMC), 36-45.
VOA Indonesia. (2018, January 11th). Negara Berkembang Dorong Pertumbuhan

Ekonomi Global 2018 . Retrieved March 7th, 2018, from
www.voaindonesia.com: https://www.voaindonesia.com/a/negara-
berkembang-dorong-pertumbuhan-ekonomi-global-2018/4202981.html
145
Wach, K., & Wojciechowski, L. (2014). The Size and the Strategic International
Orientation: The Use of EPRG Model among Polish Family and Non-Family
Firms. Enrepreneurship and Management, 7, 143-156.
Welch , C., & Paavilainen-Mäntymäki, E. (2014). Putting Process (Back) In: Research
on the Internationalization Process of the Firm. International Journal of
Management Reviews, 16, 2-23.
Wesley, A. (n.d.). International Marketing and Export Management 2nd ed.,. reprinted
by permission of Pearson Education Ltd.
Wikipedia. (2018, January 18th). Globalisasi Ekonomi. Retrieved March 21th, 2018,
from id.wikipedia.org:
https://id.wikipedia.org/wiki/Globalisasi#Globalisasi_ekonomi
Wirayani, P. (2015, November 12th). Sido Muncul to Double its Export Revenues.
Retrieved June 20th, 2018, from The Jakarta Post:
http://www.thejakartapost.com/news/2015/11/12/sido-muncul-double-its-
export-revenues.html
World Health Organization - South East Asia Regional Office. (n.d.). Traditional
Medicines in Republic of Indonesia.
World Health Organization. (2013). WHO Traditional Medicine Strategy 2014-2023.

Geneva: World Health Organization .
Wu, Y., Xiao, X., & Song, Z. (2017). Competitiveness analysis of coal industry in
China: A diamond model study. Resources Policy, 52, 39-53.
Yunna, W., & Yisheng, Y. (2014). The Competition Situation Analysis of Shale Gas
Industry in China: Applying Porter’s Five Forces and Scenario Model.
Renewable and Sustaibale Energy Reviews, 40, 798-805.
Zamroni Salim, Ph.D, & Ernawati Munadi, Ph.D. (2017). Info Komoditi Tanaman
Obat. Badan Pengkajian dan Pengembangan Perdagangan Kementerian
Perdagangan Republik Indonesia.
APPENDIX
Appendix 1: Interview Transcripts
Transcript 1st Informant
P: Peneliti
N: Bapak Carlo
P: Bapak, saya mohon ijin rekam boleh ya Pak
N: silahkan silahkan
P: responden pertama dengan Bapak Carlo, saya langsung memulai pertanyaannya ya

Pak
N: he em
P: pertama, karena saya membahas ekspor, ee saya mau tanya terlebih dahulu
bagaimana kondisi pasar global unutk produk-produk herbal yang digunakan sebagai
bahan dasar produk sido muncul seperti misalnya jahe, atau kunyit, atau sebagainya
gitu Pak
N: eemm kondisi pasar global tu maksudnya untuk market, potensi market nya atau
dari sisi apa bahan-bahannya?
P: eeee dari sisi bahan-bahannya terlebih dahulu pak
N: ooo bahan-bahannya oke. Bahan2nya yang mau ditanyakan apanya?
P: eee apakah dia mempunya potensi yang cukup maksudnya untuk diekspor ke luar
negeri gitu pak he eh
N: ohh he eh gini, jadi semakin kesini itu awareness orang terhadap nature, back to
nature, living healthy, itu semakin tinggi. Itu yang pertama, yang kedua dari sisi tingkat
Pendidikan juga sekarang sudah semakin tinggi, dan yang terakhir dari sisi teknologi
juga semakin maju. Teknologi ini terkait dengan akses informasi. Jadi emm apa hal ini
A1
A2
membuat ya kalo akses informasi dari sisi awareness itu semakin dapet gitu, semakin
meningkat. Orang mau cari informasi apa tinggal google, internet dimana- mana, mau
cari kegunaannya bahan herbal ini juga tinggal google, bentuknya seperti apa tinggal
google, rasanya seperti apa tinggal google. Nah jadi itu awareness nya semakin tinggi.
Nah dari sisi bisnis nya tentu ini semakin potensinya bagus. Eemm dibanding kalo
produksi produk-produk supplement yang chemical sifatnya. Seperti itu. Eemm dari
sisi global ya seperti itu terutama untuk yang eem developing country juga semakin
ini, nah untungnya di Indonesia ini kita kan kaya bahan-bahan tradisional herbal. Jadi
itu ya another advantage. Jadi kalo liat dari hal ini ya jawabannya adalah potensinya
besar sekali gitu untuk ekspor.
P: ooo oke. Mungkin untuk umm untuk sido muncul sendiri pernah ada melakukan
research atau semacamnya yang terkait produk apa saja yang termasuk bahan herbal
dari Indonesia yang paling banyak di ekspor?
N: emm gini. Kita kan eksportir produk jadi, jadi kalo spesifik bahan bakunya kita
gapernah jadi unutk just to be clear dulu. Jadi kalo, gatau saya gabisa jawab berarti
pertanyaan tersebut saya rasa kurang applicable lah buat sido muncul kecuali sido
muncul ini ya raw material company jadi mungkin itu bisa ohh jahe lebih besar
dibanding apa daun cengkeh atau apa gitu tapi untuk sido muncul enggak
P: Oke pak baik. Selanjutnya nih pak untuk sido muncul sendiri kan udah banyak
ekspor, ke 15 negara kemarin saya lihat di beberapa berita. Nah itu eem ada yang
mendominan tidak Pak diantara negara-negara tersebut misalkan berapa persen di
Malaysia, berapa persen di Singapore…
N: oya tentu kalo yang namanya bisnis itu area pasti ada yang dominan marketnya.
Untuk sido muncul dominan marketnya saat ini ya masih Malaysia. Eee karena
relatively penduduk Malaysia itu kebanyakan sudah mengerti akan apa itu jamu. Jadi
udah familiar. Jadi ya saat ini paling besar marketnya ya Malaysia
P: baik, untuk selanjutnya. Eemm kondisi itu tadi emm kondisi market potential yang
ada di global market itu pastinya kan mempengaruhi sido muncul dalam pengambilan
keputusan kan pak, nah itu kriteria apa saja yang misalnya bapak dan tim gunakan
dalam memilih negara tujuannya?
A3
N: oke oke. Nahh karena bisnis kita merupakan produk herbal, dan saat ini kita bisa
dibilang eem apa namanya, kalo ditingkat dari skala prioritas ya tentu kita akan
prioritaskan untuk ASEAN. Kenapa? Karena kan kita punya produk tuh andalannya
tolak angin, tolak angin itu obat suplemen untuk masuk angin. Nah masuk angin itu
related dengan sebenernya mostly dengan eeee apa negara dengan demografi yang
hampir sama. Nah kalo ASEAN itu kan demografinya sama, preference nya juga sama,
taste, sisi eee apa dari ekonomi nya juga kan pretty much almost the same. Jadi, dari
sisi affordability nya very affordable gitu. Nah penerimaan rasa juga mereka lebih bisa
terima, mereka familiar dengan rasa jahe, kunyit, mint pedes nah kan kebayangkan
kalo misal kita suruh orang yang bule kan pasti apa, sempet waktu itu adasih orang
jepang yang minum dibilang kayak minum mouthwash
P: ehehehhe soalnya pedes ya hehehe
N: iya pedes dan terlalu thick buat mereka ya something new, gak common lah.
Kembali lagi, apakah kita gak mau masuk kesitu? Ya mau cuman ya namanya target
market negara yang besar sekali harus namanya skala prioritas dulu. Jadi ya saat ini
fokusnya ASEAN dan tentunya ASEAN starting dari penduduknya yang paling besar.
Setelah Indonesia siapa?
P: di ASEAN plus three atau six pak hehehehhe
N: plus six tuh siapa
P: plus six kan ada china, india hehehe
N: nonono ASEAN just ASEAN
P: nomor dua itu… umm Vietnam?
N: bukan
P: Thailand? hehehehe
N: bukan
P: ummm
N: Philippine. Iya sekarang Philippine tuh udah seratus juta

A4
P: oohhh
N: nah iya jadi kemarin itu kita pergi kesana, kita pingin grab marketnya filipin. Seperti
itu. Eee lagi-lagi, disana juga mengenal yang namanya sore throat, nausea, bloated,
kembung gitu. Kalo masuk angin itukan kombinasi dari symptoms kan, apakah
idungnya mulai gaenak, badannya pegel-pegel, perut kembung, ya beda orang beda
symptoms. Nah itu yang kita ingin tembus gitu.
P: nah ini pak untuk sebelumnya nih pak untuk produk yang di ekspornya itu hanya
fokus di tolak angin saja atau?
N: saat ini ada dua, fokusnya di tolak angin dan kukubima energi
P: ooh jadi dua itu ya pak prioritasnya.
N: iya tolak angin dan kuku bima. Tapi sebetulnya kuku bima itu gakbisa dibilang
herbal karena mengandung apa vitamin b-complex, kafein gitu tapi kita dari sisi
affordability nya dibanding, kan kita head-to-head competitornya kan kaya hemaviton,
redbull gitukan yang ready to drink. Nah inikan advantagenya dari apa dari powder
sachet. Jadi dari sisi harga lebih terjangkau.
P: untuk lebih spesifiknya kenapa tuh pak memilih dua produk tersebut mungkin
karena di domestiknya..
N: nah iya itu exactly. Satu di domestic nya sukses, kita try to earn another new success
story dengan produk yang sama, itu yang pertama. Yang kedua, kita kalo dari sisi
supply chain nya kalo kita create new product yang baru dari sisi supply chain nya
akan repot. Susah. Karena economic of scalenya ga dapet. Misalnya nih saya mau
produksi tolak angin tapi disana harus tolak angin dalam botol misalnya karena
orangnya ga biasa minum sachet misalnya. Botol. Nah berarti kita kan harus bicara
dengan supplier botol, nah supplier botol kuantitinya ya gausah jauh2 deh di mangga
dua kalo kita beli dua biji sama dua puluh biji kan harganya beda to? Kalo beli botol
dengan market yang baru bisa gak kita beli dua puluh biji? Gabisa dong? Well kalo
kita pake sachet, ngomong sama suppliernya udah enak gitu karena di indonesia juga
udah begitu. Demikian dengan material-materialnya. Jadi economic of scale issue yang
jadi fokusnya.
A5
P: oke.. produk-produk tadi itu pak untuk memasuki negara tujuannya dalam mode of
entry export betul pak? Atau mungkin ada yang lain?
N: betul. Ekspor.
P: kenapa memilih ekspor pak? Kan mungkin ada pilihan lain seperti mungkin
licensing atau fdi atau joint venture
N: ohh kalo dari licensing kita gak mau karena kita emang mau develop nama
brandnya tolak angin,
P: oh tolak angin saja pak? Atau sido muncul juga?
N: tolak angin dan sido muncul at the same time, iya toh, nah, yang kedua kalo joint
venture gitu gitu kita enggak juga karena kita sebenernya ga perlu karena kita mampu
melakukan sendiri, jadi ya lebih ke normal export seperti itu
P: itu exportnya B2B atau B2C pak?
N: B2B
P: B2B berarti ke distributor ya pak..
N: betul. Jadi kita engage dengan distributor. Distributor kita tunjuk satu eksklusif
distributor, di negara tersebut. Jadi kita single partner. Emm bisnis modelnya saya tuh
eksportnya tuh ada tiga, satu trading, satu saya sebut semi-marketing, yang ketiga
marketing. Gitu. Nah, trading itu apa? Trading itu ya sheila datang ke saya, saya ada
rekan atau mewakili company di china, saya mau beli. Beli apa? Beli barang a b c. nah
harganya a,b dan c segini-segini. Kuantitinya, minimum order quantity nya segini-
segini. Singkat cerita deal-deal, yasudah. Nih saya jual harga serratus ke sheila. Sheila
di cina mau jual seribu terserah satu juta terserah mau dijual online caranya terserah
mau dijual ke distributor terserah. Its totally beli putus gitu.
P: ooh berarti saat itu juga selesai ya pak transaksi nya
N: selesai. Saya gatau kapan lagi sheila datang ke saya, saya gatau kapan lagi sheila
nanti apa akan berapa lama lagi hubungan. Jadi in terms of sustainability nya
benerbener question mark. Dari sisi kelangsungan produknya juga question mark.
Bagusnya cuman satu. Gada risk. Ya saya minta sheila bayar didepan sebelum
A6
shipment. Untung langsung didepan, gada risk. Dp juga semua didepan. Itu. Kalo
perusahaan mau besar, ini trading gabisa sebagai bisnis model yang bagus, gitu.
Karena ya itu tadi, sustainability nya ga ini missal tahun 2017 jualan 2 juta US Dollar,
2018 suruh target berapa kan gabisa di predict. Gabagus. Dan gabisa besar. Karena
kita tergantung sama berapa punya duitnya sheila.
P: berarti ketergantungan dengan customernya kalo begitu ya pak oke. Selanjutnya

kalau untuk semi-marketing bagaimana pak?
N: semi-marketing ini sama basically sepreti trading, tapi ada pembicaraan leih lanjut
mengenai support dari kami sebagai principal. Support misalnya gini. Saya jual sama
kayak tadi, 100. Lalu saya ngomong ama sheila, saya kasih support mau gak? So it
means that I allocate some of my profit, and I transfer to you as a promotion. Bisa itu
dalam bentuk sampling, bisa sample nya sendiri, bisa free goods, bisa kasih kaos, atau
bolpen, atau pencil, topi, handuk, whatever it is. Atau missal nanti kamu bilang oh di
negara saya mau ada festival, Chinese new year buka stand, saya mau join buka stand
gini gini, nah nanti disitu ada diskusi antara kita. Nah so it means that I give you some
of my profits to support you. Take and give dong? Kamu juga harus kasih sesuatu ke
saya dong? Apa itu? Nah itu sustainability. Jadi kita bicara satu tahun. Misal gua mau
kasih lu segini, nah lu satu taun mau ambil berapa? Gitu. Nah itu dari sisi certainity
nya lebih certain dong?
P: iya pak, karena sudah setahun dibicarakan sebelumnya
N: nah iya itu semi-marketing. Jadi missal untung saya 20 persen, saya buang 5 persen
kah 7.5 persen kah atau 8 persen kah tapi saya iket ini. Company masih untung gak?
P: masih
N: masih iya. Nah iya jadi itu jadi lebih ke ini. Bisa besar gak? Ya kan kita
ngebuangnya juga tergantung sheila berapa besar ngambilnya. Kalo sheila ambilnya
sedikit ya saya kan juga buangnya kan sedikit. Tapi kalo kita lock segini, misal, oiya
komitment satu tahun 6 kontainer. Yasudah saya biasanya ngomong ama customer
saya, kalo nge hit satu tahun 6 kontainer saya kasih you additional discount of 5 percent
in the form of goods. Gitu
P: oke
A7
N: gitu jadi ya saya juga keluarnya firm gitu karena saya kena dulu 6 kontainer baru
saya keluar. Kalau saya keluar didepan kan rugi. Itu namanya semi-marketing.
P: ohh iyaiya
N: nah yang terakhir bisnis model namanya marketing. Marketing ini another level.
Intinya gini, sama seperti semi-marketing ya sama seperti semi-marketing, tapi tadi
untung misal 20 persen kan perusahaan diambil misal 5 persen, nah ini diambilnya kita
spending nya 30
P: lebih besar dari untung ya pak berarti
N: iya he eh. Rugi gak?
P: rugi
N: rugi, tapi kok mau? Perusahan rugi?
P: mungkin untuk invest di marketing?
N: nah itu. Itu bener sekali. Jadi emm ini bener-bener sheila dalam tanda kutip disetir
sama principal. Sheila tolong jualnya di indomart ya, atau alfamart segala macem,
harganya segini, kamu marginnya segiini, kamu harus kasih ke retailer segini, ke
wholesaler segini. Jadi kamu bener-bener disetir. Aku mau jualan ini, tugas kamu
harus availability. Kesekian warung, kesekian took, kesekian supermarket, itu yang
ditarget. Satu toko isinya harus segini gini gini gini. Jadi kita bener-bener take control
of you. So, kita in return apa? Oke saya akan bikin tv commercial. Tau dong ga murah
kan? Nah tv commercial dengan endorser artis terkenal, sama seperti sini lah. Atlit,
whaterver it is, tapi kita bicara ini country baru, market baru, jadi yang dilakukan
adalah pasti tahun pertama sama tahun kedua pasti suffer. Perusahaan, yakan, nah
setelah itu expected bisa eee besar. Besar sebesar Indonesia.
P: sebesar domestic market gitu ya pak
N: iya. Jadi selalu tiga bisnis model itu ada trade-off nya, pros and cons nya.
Tergantung perusahaan mau yang mana. Kalo mau yang besar, itu ya marketing.
A8
P: iya pak karena yang saya lihat juga sido muncul di pasar domestic marketing nya
sangat di inikan pak digenjot banget dengan iklan artis tadi atlit-atlit dengan kuku bima
tolak angin itu
N: ya istilah saya produknya disekolahin. Gitu. Kalo produk talk angin dikasih iklan,
berarti disekolahin. Kalo produk gitu kan kayak anak, supaya pinter, supaya besar,
supaya ini. Kalo anaknya ga disekolahin Cuma dijualnya pake trading bisnis aja ya
anaknya kayak ditelantarin. Tergantung orang tuanya yang angkat anaknya mau
disekolahin apa enggak gitu.
P: betul pak. Nah eeem sampai saat ini pak kondisi ekspor nya sido muncul sendiri
bagaimana pak? Oke? Atau fluktuatif mungkin?
N: masih…. Jadi saya join perusahaan ini dua tahun lalu. 2016. Pada saat itu
perusahaan bisa dibilang gak fokus lah ke ekspor. Eee yang kecil-kecil datang kesini
beli 10 karton, 15 karton untuk ekspor di hand carry sudah dianggap ekspor. Nah waktu
saya masuk ya istilah saya saya rapihkan aja gitu. Jadi yang begitu-begitu saya gak
layanin. Kalo mau beli ya beli ke pasar pagi atau ke distributor local kami. Jadi kami
yang bener-bener ekspor yang besar. Jadi customer itu shrinking. Jadi yang banyak itu
shrinking jadi cuma sekarang 15 country eem tapi secara omzet naik malahan. Karena
yang fokus tadi. Karena ada yang sudah lama trading, long-term trading partner kan?
Ya kenapa gak kita leverage jadi paling enggak semi-marketing gitu. Eeee nah produk
ini produk bagus gitu tolak angin ya jadi kita sekarang lagi ada projek untuk marketing
export marketing bisnis model untuk negara Philippine. Eee bedanya ya kalo namanya
marketing itukan melibatkan investasi, nah investasi itukan kita gak.. ya kita we do it
one step at the time gitukan gabisa pilih lets go to Vietnam, filipin, satu muscle nya
gakuat. Dari sisi financial muscle. Ya kita harus smart yah, yang pertama dari itu. Yang
kedua dari sisi human resource nya juga kan kurang. Gitu. Jadi saat ini eem kalo
dibilang ya sedang berkembang. Ya baru dua tahun
P: oh hiya berkembang ya pak
N: sheila tau dong produk ini produk suplemen untuk masuk ke negara kan harus
didaftarkan, badan-badan pom nya sana, dan itu bukan daftar hari ini minggu depan
jadi, it takes around 6 months gitu kadang-kadang.
P: wah lama ya pak

A9
N: iya lama. Masih untung ini kalo ethical tau? Produk ethical?
P: ethical?
N: he eh kalo pharmaceutical yang ethical yang obat resep bisa setahun, setaun
setengah, bisa dua tahun
P: yang kayak generic gitu bukan pak?
N: eeee yang pokoknya yang kamu beli pakai resep. Yang gabisa jual beli bebas lah
pokoknya. Kalo kita kan masuknya supplemen
P: supplement saja atau supplemen dan obat herbal pak?
N: suplemen. Jadi tiap negara ada yang mengenal, ada kategori nya herbal medicine,
ada yang enggak. Jadi beda-beda. Beda country beda regulations.
P: nah itu untuk country nya itutuh pak, eeee kriteria-kriteria apa yang.. misalnya
bapak belom liat negara-negaranya tapi bapak sudah menentukan kriteria pokoknya
negara tujuan kita harus minimal misalkan GDP segini, atau indicator lain segini gitu
N: oh ndak ndak. Pada saat ini kan kita tadi kriteria nya very simple sih. ASEAN,
dengan petimbangan profile produk kita dan demografi segala macem, itu darisitu.
P: nah oiya sebelumnya nih pak, saya kan baca di annual report sido muncul sama dari
Om Johan sendiri kan bapak ini direktur independen pak betul?
N: he eh
P: nah kalo bisa diberi gambaran sedikit direktur indepeden itu sebenrnya seperti apa
gitu pak
N: ooo kalo ini mungkin ga terlalu related sama apa thesis kamu.
P: buat biodata sih pak nantinya hehehehe
N: ooo direktur independen itu.. sebenernya kamu bisa googling aja bisakok. Jadi
perusahaan sido muncul itukan perusahaan apa public listed, perusahaan apa terbuka
kan yang terdaftar di bursa saham. Nah bursa saham itu mengharuskan adanya seorang
direktur independen. Apa tugas direktur independen? Direktur independen itu bertugas
memasrtikan bahwa terjadi good corporate governance di perusahaan tersebut. Jadi
A10
siapa sih direktur independen ini? Direktur independen adalah yang mewakili saham
yang ada di public, pemilik saham di public. Jadikan misal nih saham 100 persen. Yang
di public kan macem-macem kan perusahaan kan, ada yang 20 persen, ada yang 30
persen, punyanya public. Sisanya kan punya owner kan punya pemilik. Nah si public
itukan punya interest kan terhadap perusahaan ini. Nanti kalo ownernya seenak aja
make dui tapa buat apa buat apa siapa gitu yang control? Siapa wakil saya, misalkan
saya pembeli saham nih. Itulah fungsi gampangnya ya. Supaya mudah gituloh direktur
independent tuh jadi seperti saya sebagai direktur independen syaratnya tidak boleh
punya afiliasi sedarah atau sekandung dengan pemilik. Kedua ada beberapa syarat
yang kamu bisa googling sendiri. Jadi namanya independen bukan keluarga ataupun
saudara, punya hubungan family.
P: berarti sido muncul ini sebenernya punya family firm ya pak tergolongnya?
N: enggak bukan. Bukan. Ya perusahaan nya perusahaan tbk ya kebetulan mayoritas

saham nya masih keluarga.
P: ohh berarti tetep masuknya terbuka ya pak ya
N: iya tetep terbuka financial nya harus tau, financial report, untung berapa, ini berapa,
kamu bisa lihat semua.
P: iyasih pak kemarin saya juga sempet pake laporan sido untuk apa ada ujian gitu
dikampus analisis laporan keuangan. Iya kebetulan waktu itu saya baca direktur
independen itu yang mengurusi export importnya gitu pak
N: ooo not necessary not necessary. Bisa. Jadi direktur yang ngurusin finance misal
sebagai direktur independen juga, bisa direktur hrd sebagai direktur independen juga.
Jadi ga spesifik export import.
P: oooh he em.. emm selanjutnya berarti untuk negara tujuan itu bapak masih eee fokus
nya di asean karena dasar demographic dan geographic gitunya ya pak ya
N: he em he eem
P: oke selanjutnya emm.. ini pak terkait model yang saya cantumkan di email waktu
itu
N: iya agak lupa sih cuma perlu baca dulu

A11
P: hehe iya pak ini silahkan. Oiya pak untuk suppliernya sendiri di negara tujuan pakai
distributor ya pak jadinya?
N: iyah distributor. Emm jadi ini dari dimensi industry attractiveness dan strength of
business unit maksudnya apa ini?
P: dari produknya pak
N: oh dari produknya he em
P: iya pak jadi pertama dari kondisi market nya dulu baru dari kekuatan produknya
N: ini market kan berarti ini bisa dibilang country. Ini produknya oke he eh. Terus
pertanyaan kamu apa?
P: nah inikan ada beberapa kriteria nih pak yang akan dimasukan kesini salah satunya
seperti ini, mungkin ini bisa dijadikan contoh kriteria nya pak. Nah itu dari beberapa
contoh kriteria tersebut mana saja yang sekiranya dipertimbangkan oleh sido muncul?
N: oh oke saya bikin disini aja ya apa eee kasih nomor ya
P: boleh bapak silahkan.
N: paling ini 4 iya
P: untuk masing-masing dari kriteria ini ada indikatornya gak pak mungkin kayak
market size yang bapak butuhnya misalnya berapa dollar sampai berapa dollar gitu
N: oh gak ada.
P: gak ada ya pak cuma ini prioritasnya disini gitu ya pak
N: he em. Market size saya lebih liat dari eeem apa namanya population iya population
P: ada populasi tertentu mungkin pak yang ditargetkan?
N: ya kalo ada yang serratus juta penduduk yaa im not going to enter Singapore yang
lima juta penduduk gituloh. Buat apa. Kan inikan masuknya maunya dalam artian
marketing bisnis model tadi itukan. Itu dulu loh ya jangan yang trading atau yang
lainnya
A12
P: oke pak.. eem nah ini pak tadi kan bapak juga sempet mention nih produk sido
muncul yang baunya kuat, rasanya juga kuat, tapi mungkin ada rencana gak pak ke
negara-negara yang apa namanya yang seperti tadi itu seperti western atau yang
konsumennya itu bule?
N: he em. Kenapa?
P: kalau misalkan masuk sampai ke situ mungkin ada siasat apa gak pak yang
dipersiapkan untuk menghadapi hambatan terkait rasa dan bau tadi itu?
N: yo ee nanti gini, kalau kita sudah strong di asean, kan tadi itu ya keyword nya kan
priority. Nah setelah kita strong di asean parallel juga kita akan explore negara-negara
lain starting dari bukan eropa sih tapi dari middle east. Di eee UAE, Pakistan, kan
harus kita secure satu halal certificate, kalo kita sudah punya halal, that is the second
step, and then goes to Africa. Jadi kalo untuk eropa sama amerika itu mungkin ya nanti
untuk priority kesekian kali ya gitu, karena itu bukan target kita.
P: eeem oke. Selanjutnya pak, secara garis besar saja, step-step apa saja yang dilakukan
sebelum exporting gitu pak? Misalkan apakah bapak apa namanya langsung propose
kan suatu negara atau..
N: eem oh enggak, jadi gini. Kita propose negara, terus kita eee kunjungin negara
tersebut, kita lihat profile marketnya dulu. Diliat dulu. Jadi eem ya tentunya kalo kita
ngomong dari sisi consumer goods nya, channel of distribution nya gimana gituloh,
kalo di Malaysia mungkin modern trade lebih sudah establish daripada di filipin atau
Vietnam, di Vietnam kebanyakan masih pasar becek semua, itunya harus kita lihat.
Karena begitu structure nya itu beda, itu dari sisi investment cost juga akan beda.
Contoh. Kalo mau modern trade yang besar, mendominasi, maka akan lebih besar dari
investment cost nya untuk enter the market. Karena ada listing fee nya, listing fee tau
dong ya kalo mau jualan ke indomaret gitukan harus bayar kan, nah itukan pasti ini,
kalo jualan ke warung bayar gak? Enggak kan, nah ke pasar itu juga enggak. Jadi
tergantung mau yang seperti apa. Itu kita liat dulu yang pertama. Terus yang kedua ya
tentu the closest competitiornya. Ya habitnya bagaimana. Kalau bicara tolak angin its
very easy. Karena there is no competitor. So if there is no head-to-head competitor,
then what is the closest one? If people feeling nausea yang tadi gejala masuk angin
gitu what is the closest competitor? Misal oh ada namanya hemextri misal, itu herbal?
A13
Herbal. Form nya apa? Tablet. Jadi itu another ya bukan ini nah, eee apa terus orang
flu oh misal minum vitamin atau apa Panadol. Nah itu harganya berapa? Nah kalo
udah, di gather semua information nya, ee terus orang seberapa perception nya
terhadap herbal gitu disana. Nah kalo udah dapet semua baru dibawa pulang informasi
tersebut. Baru dibikin kayak simulation. Toalk angin disini dijual segini, disana mau
dijual berapa? Satu container berapa, shipment berapa, importir diberapa, dibikini
simulasi. Dibikin simulasi terus eeee tadi jumlah oulet berapa baru dibikinin bisnis
plan gitu. Jadi stepnya begitu
P: oke baik. Nah eeem itukan tadi masuk kesana melalui distributor kan pak, nah itu
untuk distributornya itu sendiri memasarkan produknya itu ada sido muncul tau gak
gitu gimana caranya…
N: ya tau
P: atau memang dikontrol?
N: ya tau. Kita tau. Jadi sebelum ini ya kita ketemu beberapa candidate distributor, ya
candidate ini ya kayak cari istri ya kayak cari pasangan kan. Ooh istri yang ini keluarga
nya pendidikannya gak segitu tinggi tapi punya tanah banyak, yang ini cakep pinter
apa, ini istri c ini istri d. Ya kalo distributor itu harus diliatnya apa? Oh ini networknya
segini besar, oh saat ini bawa produk ini ini ini, ini apa oh ini principal nya sekian oh
ini bawa nya ini ini ini warehousingnya kayak gini, system logistic nya kayak gini, nah
dari situ oh ini minta fee nya sekian, ini minta feenya sekian sekian. Nah baru
dibandingin, di beauty contest gitu. Siapa yang menang, ya baru kita ngomong. Dan
mereka juga punya standard jugakan. Nah kalo di Indonesia, kamu ke provinsi
manapun, sebagai bawa baju sido muncul, ya hantu pun mau jualan gitu kan kasarnya.
Sudah “ohhhiyaaa sini sini siniii mau mauu” ya gimana. Misalkan ini sido muncul
ngomong “pokonya lu harus begini begini begini” oo oke pak oke pak setuju. Ya
karena ini sido muncul, di Indonesia. Kalo lu pergi ke filipin, ada orang kenal sido
muncul? Gabisa. Kita gabisa ngomong “lu harus begini begini begini” di filipin gabisa
begitu. Jadi dia yang “karena lu produk baru, gua mau margin yang segini segini
segini” well that’s the arts of negotiations happen. Gitu yakan different.
P: ohhh iyaya pak

A14
N: nah nanti siapa tau ya we hope within 5 years people already starting to understand
about tolak angin and then in the Philippines becoming the same with Indonesia.
Bukan kita yang cari tapi di pintu kita ngantri distributor yang tinggal kita pilih.
P: oh okay.. baik bapak
N: yaa
P: ee okay untuk selanjutnya oh ini ada gak pak produk sido muncul yang dijual diluar
tapi tidak dijual di Indonesia? Mungkin untuk mencocoki pasar atau bagaimana
N: ee gini. Ada cuman dalam bentuk like totally isinya berbeda. Dari sisi packaging
berubah
P: oh packaging nya beda ya pak
N: iya berubah tapi gak berubah drastic gitu. Nih saya tunjukin sebentar saya ambilin
P: ehehehe
N: tapi kalo totally beda. Oo Malaysia pingin rasa duren disini ga ada rasa duren terus
kita bikini kayaknya enggak ya
P: enggak ya pak mungkin packaging nya aja disesuaikan ya pak
N: tapi ada export yang lain ini sebenernya kecil sekali makanya tadi gak saya mention.
Yaitu manufacturing business, jadi misalnya saya bikini dong, kamu tau kan tolak
angin punya permen? Tau kan?
P: iya pak tau
N: nah itukan lozenges kan permen tenggorokan kayak strepsils gitukan. Nah ada
orang pengen minta dibikinin lozenges merek x gitu. Dengan materialnya ini ini ini
packagingnya ini ini ini gitu. Jadi statusnya sekarang pabrik kita ini cuma penjahit
P: oooo
N: nah itu totally beda sih kalau buat pertanyaan kamu tadi ada gak produk yang di
eksport tapi gada di Indonesia ya itu. Itu totally beda. Gitu. Nah kalo yang tadi saya
bilang bedanya Cuma adjustment design aja. Cuma presentation nya tetep sachet, satu
box tetep dua belas.
A15
P: itu yang berbeda itu dimana pak?
N: filipin. Terus kita juga punya packaging yang khusus export. Jadi Bahasa inggris
semua.
P: oh hiya he eh
N: terus disini kan semua “obat masuk angin” gitukan?
P: iya heeh
N: claim medicine tuh gaboleh. Begitu input your wording medicine, it cannot claim
as a supplement.
P: ohhh se detail itu ya pak
N: iya jadi kalo di amerika contoh kita klaimnya dietary supplement, gabisa name ini
P: gabisa herbal medicines gitu ya pak
N: dii ini herbal syrup kita di Australia kalo ga salah gitu
P: oh oke.. untuk pertanyaan selanjutnya emm maaf ya pak agak banyak nih
pertanyaannya..
N: iya gapapa
P: ohh ini pak packaging nya iya beda ya pak
N: beda kan? Ini filipin packaging. Dalemnya kalo di kita kan landscape kan
P: iya pak he eh
N: kalo ini portrait
P: wah kayak sambel ya pak hehehe
N: tapi ini isinya sama. Tuh bilangnya herbal supplement kan disini.
P: iya beda. Sama disini kan biasanya ada lambangnya sido muncul kan ya pak
N: iya ini juga ada tapi dibelakangnya doang nih kecil

A16
P: oooiyah.. eee ini untuk kriteria-kriteria ini berarti bapak gak ada indicator khususnya
gitu ya pak yang bisa dijadikan angka seperti ini misalkan kayak gini..
N: um gini. Eee apa diskoring gitukan ya
P: iya pak discoring
N: enggak, enggak ada. Ya you bisa buat suggestion toh buat the company nanti in
your thesis kan
P: iya pak hehehhhehe
N: iya gitu saja ive been through that once. Tapi ya kadang begitu-begitu di real world
nya agak kurang ya kecuali multinational company ya. Kalo ini kan kita enggak. Kalo
multinational company kan mungkin they have their own analysis lah, sampe mungkin
beli sama siapa si..
P: he em iya pak dari BCG kan misalnya
N: yaa BCG atau misal country filipin laki nya berapa perempuan nya berapa, habit
consumptionnya gimana, ini apa. Ya itu proper sekali.
P: iya pak betul.. emm selanjutnya untuk competitor sido muncul pak di Indonesia,
competitor terbesarnya sido muncul pak?
N: emm secondnya tuh kalo gasalah deltomed ya kalo salah sama antangin nya yah.
Tapi buat angkanya saya gatau saya gapunya datanya.
P: emm mungkin nanti coba saya cari di internet ya pak
N: coba aja saya kurang tahu
P: iya soalnya kan saya melihat salah satu research dari hexaresearch itu menyatakan
kalau sido muncul itukan nomor 1 di Indonesia, nah namun kan untuk
mempertimbangkan competitor dan apa persaingan dalem negeri gitukan saya harus
mencantumkan kompetitornya itu apa saja gitu
N: he em he em. Ya kalo seinget saya sih produk mirip tolak angin di market itu banyak
banget ada antangin, bintangin, ada apalah you carilah pasti ada, cuman the closest one
ya antangin. Tapi angkanya berapa saya gatau.
A17
P: antangin ya pak he em
N: tapi yang pure eee herbal company yang public listed ya cuma sido muncul gitu
P: eem oh iya pak jadi begitu.. oiya pak untuk pabrik selain di ungaran ada tempat lain
lagi mungkin pak? Atau sejauh ini di ungaran saja?
N: oh belum iya masih di Ungaran aja.
(cont.)
P: Peneliti
N: Bapak Carlo
P: eem melanjuti pembicaraan waktu itu yang terkait ekspor, emm bapak kan
memperkenalkan saya ada tiga bisnis model. Ada trading, semi-marketing, dan
marketing
N: betul
P: nah itu untuk referensi dari bisnis model ini sendiri tu bapak carlo dapet dari mana
atau emang pak carlo sendiri yang membentuk bisnis model itu sendiri?
N: oo eee yaa saya ga dapet referensi dari buku karena saya berdasarkan dari
experience, karir saya jadi dan kebanyakan di perusahaan-perusahaan tuh, kan saya
kan perusahaan dari mulai dari kalbe, terus makarizo, terus kino Indonesia, terus
sekarang sido muncul itu semua consumer goods, dan semuanya punya saya rasa
punya pattern, pola dimana eeee ya itu saya akhirnya kelompokan jadi tiga, tiga besar
itu saya gak pake apatuh reference teroi si x atau si a teori buku apa saya gak pake..
diliat dari business practices nya saya kelompokan jadi tiga seperti itu, berdasarkan
pengalaman saya di international business dari tahun 1997
P: setahun setelah saya baru lahir itu pak hehehehe
N: hehe iyaa dari tahun 1997, eee itu seperti itu. Ada pattern pola nya ya seperti itu.
Jadi emm ya itu jual-putus, orang datang beli dia nguurus sendiri itu trading, yang
semi-marketing itu kita berikan something gitu, tapi kalo ya full marketing itu kita
yang invest, gitu.
A18
P: oo emm heem berarti untuk istilahnya sendiri bapak yang came up with the idea ya
pak?
N: saya yang came up sendiri.. sebenernya bukan saya came up sendiri sih. Waktu itu
siapa ya manager atasan saya, apa tim management export yang di kalbe yang sempet
ada ini terus saya yaa menurut saya itu betul ya gitu..
P: ohh oke.. untuk selanjutnya, melalui tiga metode tersebut yang diadaptasi oleh sido
muncul yang mana pak? Atau ketiga nya memang digunakan oleh sido muncul?
N: saat ini tidak eem sebelum saya join yang jalan itu yang pertama yang jalan yang
trading. Terus saya masuk, saya perkenalkan yang nomor tiga, yang marketing. Yang
saat ini jalan untuk filipin iya.
P: ooo berarti eee saya kan juga observasi data sekunder juga di berita sama annual
report, nah itukan mengatakan kalau sido muncul sampai saat ini belum direct export,
masih indirect kan yang dimana kalo marketing ini kan berarti dia jatohnya B2B dan
direct betul pak?
N: he emm
P: nah berarti untuk marketing ini dan direct exportnya ini baru ke filipin?
N: baru ke filipin, iya. Bisa dibilang gitu. Marketing itu baru yang di filipin. Karena
sekali lagi inget gak sheila waktu saya jelasin pertemuan pertama ee apa untuk direct
itu waktu persiapannya gak sebentar. Ada yang namanya registrasi produk, pemilihan
distributor, eee terus persiapan segala sesuatunya gitu. Jadi dan itu sekali lagi kan
invest something, jadi gabisa dilakukan ke satu country, ya tergantung sih kalau
perusahannya willing dan mau punya budget alokasi yang cukup, dan dari sisi human
resources nya cukup, satu tahun mau jalan tiga empat countries gitu bisa bisa aja
misalkan segede mayora atau Indofood gitu gitu mereka kan giant itu. Tapi kalo dari
sisi kita inikan baru pertama, dari sisi management sido muncul. Jadi ya one step at
the time lah
P: baik emm oke. Berarti eem kan tadi bapak bilang untuk yang marketing ada regulasi
nya, step-step nya gitu. Nah untuk yang trading berarti itukan orang cuma dateng, buat
terus langsung dijual kesana gitu pak?
A19
N: he em
P: nah itu berarti regulasi nya gimana pak? Maksudnya kan menjual produk Indonesia
yang ada kandungan-kandungan itunya
N: jadi gini. Regulasi itu..oke. regulasi yang sheila maksud ini dari sisi mana dulu?
Karena gini. Namanya ekspor, buyer itu, ada juga yang dalam tanda petik dari sisi
regulasi mungkin masih abu-abu. Dia sendiri gituloh. Tapi adajuga yang mereka mau
do the right thing. Dalam arti mereka mau registrasi. Kalo trading, sekarang kan saya
pernah jelasin waktu itu eee trading pun saya ndak bisa orang dateng lalu beli. Dan
misal dari country A sheila datang. Terus besoknya ada yang namanya sheila B, datang
juga untuk country yang sama. Itu saya terus terang saya hindari walaupun trading.
Jadi misal sekarang kayak Afganistan. Afganistan itu yang mau beli kuku bima itu
banyak sekali. Tapi saya batasi. Saya eksklusif sama satu orang. Tujuannya apa?
Supaya ya trading nya itu trading yang bener lah. Saya mau iket pake target, segala
macem, gitu.
P: berarti itu semua sejak yang bapak carlo join dengan sido muncul ya pak?
N: nah yang sejak saya join sido muncul saya lakukan pertama audit customer.
Customer yang belinya kecil-kecil, gak rutin. Ya kalo mau dateng lagi dinaikan, kalo
you ga sanggup ya im sorry, you ambil dari local aja gitu jadi dari kami lebih selektif
lah. Nah dari situ yang semut-semut ini yang kecil-kecil ini hilang. Gak kita handle,
jadi sekarang customer tinggal kira-kira tinggal 15an lah gitu. Tapi ya itu yang bener-
bener ya kerjanya kita siapin ini-ini dapetnya lumayan kita minimum 25 ribu dollar itu
di sido muncul itu value standard nya kita. Kecil itu. Dulu ada yang seribu dollar dua
ribu dollar, dibanding 25 ribu kan jauh. Cuman ya dari sisi ekspor buat company lain
mungkin 25 ribu itu peanut tapi for us its still significant.
P: eemm oke.. kalo yang mereka yang dulu yang semut-semut itu bapak tau gak
gimana cara mereka jualnya?
N: ga tau. Cuma orang dateng beli, dah selesai gua kirim kemana. Ada yang dikirim
ke Gudang kapuk lah, ada yang kemana. Ada tapi saat ini yang masih kecil tapi kita
masih layani yaitu australi sama amerika. Amerika itu ambil paling setahun 250
karton-300 karton. Kecil banget. Tapi saya masih perlu untuk portfolio kami. Oh kita
A20
masuk amerika gitu. Jadi ada reason juga gitulho. Kalo itu judulnya satu negara di
benin afrika atau partai gading gitu-gitu ya tak buang.
P: eem oke.. itu yang biasa untuk yang gitu-gitu apasih pak maksudnya yang beli jual
disana itu biasanya siapa gitu
N: trader, biasa trader. Trader itu jadi, namanya trader ciri-cirinya itu dia beli barang
banyak. Jadi barang sido muncul ambil 200 karton, barang krupuk ambil sekian,
barang selai ambil sekian, ambil saos ambil sekian digabungin jadi satu container. Di
shipment bareng bareng. Itu namanya biasa trader begitu. Gitu gamungkin trader satu
container satu jenis barang, ya ada cuman kecil sekali lah.
P: mmm oo oke.. berarti untuk metode yang marketing, saya memastikan lagi ya pak
hehe, itu sejak bapak carlo join 2 tahun lalu ya pak betul?
N: yak betul
P: ooo berarti yang sebelumnya tadi yang hanya trading itu aja ya pak
N: he em
P: terus emm jadi ee distributor sido muncul ini sekarang totalnya ada berapa pak?
Yang distributor secara B2B nya
N: eem maksudnya gimana
P: yang kayak misalkan melalui banyak distributor gitu lalu bapak pilih satu eksklusif
N: gini, kamu jangan starting dari situ. Mending dari bisnis model tadi 3 bisnis model
tadi. Itu saya bisa lebih jawab. Tapi kalo yang dari sisi pertanyaan B2B itu agak kurang
clear. Jadi kalo si marketing baru ada satu kan si filipin, kalo yang semi-marketing itu
mungkin ada kira-kira emm 5. Sisanya itu ee trading. Trading tapi ya itu tadi. Trading
tapi ya kita bener-bener selektif lah.
P: untuk di negara asean sendiri sudah ee dimasuki sido muncul total ada berapa pak?
N: semua kecuali Thailand.
P: mungkin ada alasan tertentu pak?

A21
N: Thailand itu karena satu eem entry cost nya gede ya. Terus local herbal nya juga
sudah kuat. Ya laos juga sih cuman laos ya kecil sekali.
P: emm waktu itu bapak juga sempat menyatakan jugakan pak mau fokus ke negara-
negara asean dulu berarti ini dalam konteks yang marketing ya pak ya?
N: he em he em
P: soalnya kan negara asean yang marketing baru filipin kan pak
N: betul betul betul
P: lalu.. emm nah untuk ee pemilihan distributor dalam konteks marketing, itu bapak
ada indicator khusus atau kriteria yang dilihat tidak pak?
N: untuk apa?
P: pemilihan distributor dalam yang marketing
N: oh yang marketing. Oya dari sisi ini dari itu network coverage nya terus sales force
terus ee financial, terus principle yang sudah dipegang, terus eee experience di
bisnisnya berapa lama.. itu ajasih secara simple.
P: ini bapak biasanya yang waktu itu survey ke lapangan itukan ya pak
N: iya jadi kita ya karena mungkin saya sudah lama di ekspor kan, jadi ya punya
network lah nah dari punya network itu kita bisa explore tanya, misal ibaratnya kamu
kan kuliahnya di BSD kan ya?
P: iya pak di Tangerang
N: nah iya ee kalo saya tanya kos yang paling enak dimana gitu kamu ngerti toh?
Temen-temen kamu kos dimana gitu “oh disini pak disini.” Ya itu sama. Jadi ya saya
udah punya network di filipin jadi saya tinggal tanya, tanya tapi apakah langsung deal?
Ya ndak. Sudah kumpulin candidate, minta waktu meeting-meeting gitu. Kan kayak
cari istri, didatengin, ada yang istrinya gamau sama kita, bisa juga. Ada yang minat.
Ya jadikan mengerucut gitu candidatenya misal dari 6 jadi 3, dari 3 ini dibandingin
lagi akhirnya dipilih satu gitu toh.
A22
Transcript 2nd Informant
P: Peneliti
N: Bapak Billy Utama
P: baik bapak silahkan
N: hee kalo misalkan kita ngomong sido muncul ya semua orang sudah tau sido
muncul tuh eem part of industry herbal di Indonesia gitu kan dan kita si confidence
bahwa sido muncul tuh sampai sekarang ini yang terbesar gitu diantara pemain-pemain
lain di industry herbal. Jadi di ya maksud saya ga hanya sebatas jamu gitu ya emang
karena jamu kan termasuk obat tradisional herbal kan tapi yang obat non-herbal juga
sido muncul kalo misal dibandingin sama kompetitornya itu mungkin sido muncul
paling gede dari skala economic. Maksudnya dari skala economic itu apa? Dari sisi
production, outputnya yang keluar kita mungkin yang paling gede gitu. Eem emang
umurnya kan udah 70 tahun lebih lah ya segala macem struktur, terus eeem kita juga
kalo misalnya lanjut bisa dilihat dihalaman nomor 4. Kita dibawah sido muncul itu
kita ada 4 anak perusahaan eee yang pertama tuh eee muncul mekar. Muncul mekar
itu perusahaan distribusi kita lah gitu jadi emang distribusiin semua produk-produk
sido muncul. Abis itu kita punya semarang herbal indoplant itu untuk pabrik ekstraksi,
pabrik ekstraksi itu untuk apa? Untuk sebelum jadi produk jamu, misalnya kayak tolak
angin, kita punya raw material kan bahan baku kita kan herbs tuh tanaman-tanaman.
Itu dibawa ke semarang herbal indoplant di ekstrak untuk jadi liquid atau cair abis itu
baru jadi bahan produksi. Jadi kayak bahan semi-finish good gitu. Yang ketiga ini
berlico farma, ini kita baru akuisisi mungking ditahun 2014 setau saya. Di 2014 kita
akuisisi berlico farma ini perusahaan farmasi. Jadi bener-bener chemical drugs bukan
cuma herbal. Abis itu terakhir, ini kita baru establish muncul Nigeria ltd kita baru diriin
di taun ini, januari. Ini untuk tadi ni Pak Carlo punya tugas nih
P: iya ini saya lihat di annual report belum ada ya pak yang muncul Nigeria
N: iya ini kan soalnya baru januari 2018 kan kita establish gitu kita baru diriin di
januari 2018. Nah ini 4 perusahaan ini part of Sido Muncul terus kalo misalkan kita
ngomong ya kita perusahaan sido muncul itu perusahaan public, jadi saham kita
dimiliki public sekitar 18 persen ee next nya apa mungkin mau kemana nih kamu
nanya itu tadi briefing sekilas tentang sido muncul sih. Nah mungkin saya lanjut ke
A23
halaman 7 kali supaya lebih tau lagi mengenai kegiatan bisnis selain IB juga domestic
market di Indonesia seperti apa, itu kan ada distribusi network kita di Indonesia. Eem
kita yang tadi perusaahan distribusi kita under muncul mekar gitu, itu national
distributor eee muncul mekar itu kita bagi jadi 4 kategori, satu itu modern trade,
modern trade itu kayak hypermart, alfamart, indomart, ya pokoknya convenience store.
Trus kita ada tradisional, tradisional itu wet market, pasar basah kayak street vendor
gitu kayak toko-toko, warung-warung, pasar-pasar, sama terakhir kita ada medical
channel distribution itu apotek. Nah sido muncul tuh masih kuat dimanasih? Kalo kita
ngomong sido muncul itu kuatnya di tradisional. Karena part of heritage, jamu itukan
lebih kearah tradisional-tradisional lah ya jadi ya kita lebih besarnya di tradisional
market. Nah dari market tersebut kita bagi jadi 3 area, tengah, barat dan timur.
Cangkupannya ya barat itu ada jawa, kalo gasalah jawa barat, dki, Tangerang, banten,
dan sumatara, lalu yang tengah itu ada jawa tengah, yang timur itu luar pulau timur
sana gitu.
P: emmm he em he em
N: nah ini dibawah muncul mekar tuh dibawah traditional trade itu kita punya 122 sub-
distributor yang kerja sama sama kita. Jadi kalo misalnya kita ngomong kenapa saya
bilang kita dalam skala ekonomi itu besar, karena distribusi network kita aja udah besar
gitu untuk ukuran perusahaan herbal.
P: ini untuk 122 sub-distributor ini mencangkup semua ya pak? Modern, tradisional
dan medical?
N: aaa 122.. 122 itu aaa iya 122 itu mencangkup semua.
P: oke..
N: nah yang tadi saya bilang kenapa kita itu besar banget? Ya karena distribusi kita itu
besar. Kamu cari tolak angin dimana-mana pasti juga nemu kan. Mau dijalanan, mau
dimana mau di emm convenience store alfamart indomart, semua udah tersedia. Nah
itu yang tidak dimiliki kapasitasnya oleh eem perusahaan jamu lain. Nah terus secara
IB, international business, mungkin sebelumnya kamu udah dijelasin lah ya lebih
banyak sama Pak Carlo. Soalnya dia kan expert di international businessnya, nah saya
cuma nambahin aja mungkin sekarang sih kita eem produk kita udah ada di yaa
lumayan lah ada di, kalo boleh saya bilang ada lebih di 20 negara, ada di semua benua,
A24
Australia, US, Europe segala macem. Nah ini yang masih mau digenjot lagi. Soalnya
kita mau ngenalin produk-produk Indonesia ke luar seperti itu. Udah deh. Itu
sekilasnya.
P: masuk ke pertanyaannya ya bapak
N: iyak
P: umm pertama, terkait market leader nih, sido muncul kan dari Euromonitor aja juga
udah menjadi ee market leader di obat-obat an tradisional, nah eee apakah betul produk
tolak angin yang merupakan sales terbesar gitu dari sido muncul?
N: iya dari sido muncul ini kita kan bagi, nah kalo misal kamu mau ngomong soal ini
bisa liat halaman 8 dihalaman 8. Nah itu kamu kan bisa liat tuh ada sales mix, nah
sales mix ini tuh dibagi jadi 3 dalam sido muncul ada dibagi 3 grup yaitu herbal
supplement, food and beverage sama pharmaceutical. Eeem herbal dan supplement itu
contributor utamanya tolak angin, gitu. Jadi kalo misalkan diliat ya dari 66% ini
mungkin hampir sekitar 80an persen nya itu tolak angin semua. Jadi bisa dikatakan
tolak angin itu memang yang paling besar penjualan untuk sido muncul. Kalo di fnb,
itu 30 persen, itu contributor utamanya itu kuku bima energi. Gitu. Jadi ya emang bener
kalo misalnya ee tolak angin itu yang paling besar. Untuk pasar jamu sendiri umm kita
sih kita liat memang tolak angin, maksudnya jamu masuk angin itu yang paling besar
sih untuk sekarang ini.
P: baik. Umm untuk selanjutnya, umm sekarang saya ingin mengetahui pertama dari
industrinya sendiri, diluar sido muncul tapi di industry obat-obatan herbal ini. Nah
umm menurut bapak untuk factor modal atau biaya produksi itu untuk masuk ke
indsutri ini tuh salah satu barrier bukan?
N: umm kalo kita ngomong barrier, high entry barriernya tuh yang paling tinggi tuh
justru menurut saya bukan modal. Menurut kita bukan modal, melainkan resep dan
formulasi. Gitu. Kalo modal, sekarang industry jamu di Indonesia itutuh lumayan
fragmented, maksudnya fragmented tuh umm terdiferensiasi sama industry-industri
jamu yang kecil yang jamu-jamu rumahan. Nah itu sangat banyak tuh industry indsutri
jamu rumahan indsutri kecil yang rumahan. Makanya saya bilang ya untuk become a
big player, maksudnya setara sido muncul memang entry barriers nya salah satunya
adalah modal lah. Karena, ya seperti yang saya bilang, karena sido muncul tuh
A25
production capacity atau economic of scale nya jauh lebih besar dibandingkan dengan
perusahaan-perusahan lain. Tapi yang membuatkan sido muncul ya balik lagi, core
bisnis kita jamu, jamu itu identik dengan resep nenek moyang. Jadi yang paling, high
entry barrier yang paling tinggi menurut kita itu ya mungkin salah satunya itu adalah
resep. Karena gini, ee cerita perusahaan farmasi yang besar-besar banyak gak yang
lebih besar daripada sido muncul? Banyak. Kayak kalbe farma tuh juga perusahaan
gede kan. Dan kalbe farma tuh juga punya bintang tujuh. Bintang tujuh itu dia mau
spesialisasi ke herbal. Nah si bintang tujuh ini juga skala ekonomi nya gede gak? Ya
skala ekonominya gede. Tapi yang gabisa ditembus salah satunya adalah formulasi.
Formulasi itu mencangkup apasih? Mencangkup ummm efikasi, efikasi tuh apa ya
umm kemanjuran, jadi ya manjur atau enggak gitu soal obat. Yang kedua, rasa. Kalo
manjur, tapi rasanya pait ga akan diterima. Kalo rasanya enak tapi ga manjur, juga ga
akan diterima. Jadi ya sido muncul tuh yang salah satu inovasinya apa? Ya efikasi nya
sama rasanya bisa diterima sama semua orang
P: itu bisa termasuk strength nya sido muncul juga ya pak
N: yes. Itu salah satu strength nya. Selain itu, strength nya nomor satu, dari sisi
formulasi kita itu yang nomor satu lah. Strength, kedua, brand, brand image. Brand
image ya kalo kita ngomong tolak angin ya itu udah kayak indomie lah udah market
leader. Pokoknya orang cari mi instan, orang mau cari kayak umm minum aqua, cari
teh carinya teh botol, sama ya masuk angin minum tolak angin gitu kan, udah di top
of mind gitu brand nya udah kuat.
P: nah selanjutnya untuk umm di industry ini, sebenernya skill dari pekerja nya itu
dibutuhkan skill khusus gasih pak?
N: maksudnya skill khusus itu gimana?
P: misalnya umm harus kah dia bisa mengoperasi eee mesin tertentu atau misalkan
kayak…
N: enggak sih. Enggak sampe sih kalo skill skill khusus. Kalo misal kayak operational
mesin mah sama aja. Yang penting product knowledge nya.
P: umm nah kan menurut kementerian perdagangan, itu indsutri jamu di Indonesia
merupakan salah satu industry yang menjanjikan berkaitan dengan sumber daya alam.
A26
Nah ini menurut bapak sendiri bagaimana pendapat bapak atas pernyataan ini. Apakah
emang sekarang sumber daya Indonesia lagi kaya-kaya nya terkait eee jumlah dan
kualitas?
N: he em, kalo kita ngomong tanaman sumber daya, ya kayak misalnya eee sido
muncul, herbal, bahan bakunya tuh emang semua ya, yang khusus herbal ya, itu semua
bahan baku utama tanam-tanaman itu hampir mungkin 90-95 persen itu diambil dari
Indonesia. Lokal. Ntah yang dari Jawa, Kalimantan, Sumatera, itu kita ambil semua
local resources gitu. Jadi ya saya setuju gitu kalo misalnya emang menjajikan, ya
menjanjikan. Source nya gampang, resource untuk raw materialnya juga gampang, dan
juga satu, trend kedepannya adalah konsumen mau sesuatu yang lebih safe, sesuatu
yang lebih natural, kayak trend back to nature gitu-gitu itu yang lebih saya bilang sih
lagi on going lah. Even di amerika pun penggunaan chemical drugs itu lumayan
berkurang. Kayak misal di jepang juga dokter-dokter sana juga udah bikin prescription
untuk eee obat-obat herbal. Di China apalagi, government nya sangat-sangat support
traditional Chinese medicine yang which is umm even kayak sinshe lah kalo sana kan
notok-notok tradisional sinshe sinshe nya tuh udah punya license seperti itu. Makanya,
menjanjikan gak herbal? Ya menurut saya sih quite promising indsutri ini.
P: nah tadi kan bapak bilang 90-95 persen itu raw materialnya kan dari Indonesia, nah
untuk sido munculnya sendiri tuh apakah sulit mendapatkan akses terhadap raw
material tersebut atau emang sido muncul udah punya eee ini dengan petani sendiri
gitu?
N: ooo kita kerja sama sama seratusan kelompok tani. Jadi kita ada kerja sama sama
ratusan kelompok tani yang waktu musim panen, itu kelompok tani tersebut serratus
persen supply ke kita. Jadi kita akan beli di harga berapapun pas panen, tentunya pas
harga lebih murah, pas panen itu kita beli mereka mau panen berapapun kita beli
semuanya gitu. Jadi kita kadang-kadang gapernah merasa khawatir tentang masalah
raw material seperti itu. Even kaya misalnya petani-petani kita misalnya jahe, kita ada
source nya di jawa. Even misalnya kayak yang susah-susah dicari tuh saya juga waktu
masuk sini gatau nih ini ada taneman namanya yang susah-susah, dia bisa metik di
Sumatera, atau Kalimantan, yang mereka tuh akan 100 persen supply ke kita gitu.
P: nah kalau kayak gitu bargain power nya bagaimana pak?

A27
N: nah kita gapernah, kita gapernah, kadang-kadang kalo misalkan kita ngomong
“kamu supplier kita bisa teken harga kamu” gitukan sido muncul tidak melakukan
praktek seperti itu. Pokoknya harga pasarnya berapa, kita ambil semua. Kita gak mau
kayak um teken harga petani lagi.
P: kalau misalkan sebaliknya bagaimana pak misalkan petani yang menekan harga ke
sido muncul?
N: umm kemungkinan ga akan pernah ya. Harusnya enggak. Karena kita juga tau harga
pasar berapa, kondisi pasar gimana gitu.
P: berarti untuk akses ke raw material nya sendiri gada masalah ya pak
N: gak gak ada masalah. Kaya misalnya pernah suatu saat tuh eee harga salah satu raw
material tuh naik. Naiknya tinggiii banget jadi kita bingung. Tapi emang kita tau harga
naiknya tinggi itu kenapa. Karena di wilayah tersebut emang lagi kurang, panennya
gagal segala macem.
P: ohh..
N: jadi kita bisa ya maksudnya kita gak akan menekan harga gara-gara itu turun segala
macem, kita ga neken harga gitu.
P: oke.. umm nah untuk berarti untuk yang barrier tadi itu orang mau join industry ini
sebenernya gampang ya pak asal ada resep?
N: umm ya saya gamau bilang gampang. Karena ya resep nya itu yang paling susah.
Makanya saya bilang high barrier entry, karena ga banyak perusahaan-perusahaan
herbal yang bisa besar gitu. Umm gabisa besar sebesar sido gitu karena apa karena
satu, brand nya harus lebih kuat, which is brand nya kuat itu bukan perkara perkara
gampang. Kita bangun brand ini perlu puluhan tahun gitu. Saya akan tetep bilang eee
industry herbal ini high barrier entry gitu. Meskipun yang rumah-rumahan kecil itu
bisa, tapi ga akan sebesar ee sido muncul. Maksudnya kalo untuk menjadi sebesar sido
muncul itu akan butuh waktu yang sangat lama. Even kalo kamu peratiin kalo beberapa
kemaren kan nyonya meneer aja collapse, yakan, jamu jago juga certain apa berapa
persen market sharenya sama Cuma produk tertentu doang seperti itu.
A28
P: umm oke untuk selanjutnya, apakah ada segmentasi pasar tertentu yang khusus
ditargetkan untuk industry ini. Mungkin menargetkan khusus untuk orang-orang tua
gitu.
N: umm sejak munculnya tolak angin, kita melihat kalo dari konsumen dari tolak angin
tuh all across demographic, maksudnya semua semua ee semua lini umur, pendapatan,
semua konsumsi tolak angin. Profesi apapun, umur berapapun, gender apapun tetep
konsumsi tolak angin. Tapi kita tetep bikin satu khusus untuk anak-anak. Itu satu yang
khusus kita bikin umm varian khusus untuk anak-anaknya dengan ukuran lebih kecil,
dosis lebih kecil, rasanya lebih manis, kurang pedes gitu. Tapi emang di khususin buat
anak-anak. Soalnya kalo tolak angin cair itu konsumsi untuk 12 tahun keatas, yang
anak anak itu untuk 12 tahun kebawah. Makanya kita bilang produk tolak angin itu
cukup terdiversifikasi karena kita punya untuk anak-anak ya untuk orang dewasa juga,
gitu.
P: hmm iyaiya.. okee umm di berita berita saya sempat menemukan terdapat
pernyataan yang dimana di pasar domestic itu sido muncul merupakan perusahaan
herbal di Indonesia yang memiliki paling banyak pengalaman internasional, apakah
pernyataan ini benar?
N: kalo Indonesia sih ya produk herbal yang paling banyak di ekspor ya cuma tolak
angin doang. Paling ama kuku bima.
P: berarti memang betul ya pak pengalaman sido muncul di pasar internasional itu
sudah nomor satu di industry herbal?
N: eee kalo menurut saya statement itu bisa iya bisa enggak sih ya bisa dua
kemungkinan karena kita gatau seberapa besar ekspor nya yang lain kan? Kita gapunya
data. Nanti kalo kita main claim kan gabisa
P: nah untuk industry obat atau supplement herbal ini sendiri ada institusi lain apa gak
yang sekiranya mungkin bisa menjadi catalyst gitu yang mendukung atau kerja sama
dengan industry ini gitu misalnya industry mobil sama industry ban.
N: sebenernya ya packaging. Packaging kan kita punya sendiri
P: berarti company punya packaging sendiri ya pak

A29
N: heem. Berkesinambungan lah ya, kita juga pasti butuh industry distribution channel,
industry logistic segala macem, semarang herbal juga ya kita kan butuh industry-
industry berkesinambungan juga. Itukan vertical kan
P: iya pak, kalau yang horizontal nya mungkin? Yang tetangga-tetangga nya gitu
soalnya kayak distribution sama ekstrak tadi itukan masih dibawah sido muncul
N: sebenernya ya kita, sebenernya kalo kayak team up catalyst ya yang tadi saya
bilang, logistic, distribusi terus packaging semua itu ya catalyst kita. Karena gini
kebetulan kita udah punya aja gitu, sebenernya kalo misalkan kayak ngomong astra,
astra punya otomotifnya, astra juga punya autoparts gitu punya ban nya gitukan.
Sebenernya catalyst industry nya juga ya, sebenernya tipikal industry di Indonesia kalo
misalnya udah punya satu, dan modal capital nya kuat, dia akan buy in buy in buy in
dan akuisisi perusahaan perusahaan yang menurut dia sebagai catalyst nya dia untuk
team up untuk jadi satu konglomerasi yang gede, gitu. Kayak misalnya sido muncul
juga kan kita team up dengan farmasi kan, karena kenapa satu, untuk distributionnya
ke yang bidangnya farma seperti itu. Jadi kalo tadi saya bilang as long as its related
with health care industry dan consumption maksudnya yang berhubungan dengan
konsumsi kesehatan atau health care industry, itu kita bisa team up, gitu.
P: oh oke baik. Nah untuk sifat dari persaingan diantara competitor yang seimbang
dengan sido muncul ini bagaimana untuk sekarang-sekarang ini pak apakah sedang
ketat, atau kadang tetap kadang enggak
N: ngg kalo dari sisi, ya kalo dari parameter paling gampangnya kan ya market
sharenya kan. Kalo ngomong persaingan dengan tolak angin tuh kita ada salah satu
head-to-head competition. Deltomed, antangin. Tapi by far size nya masih jauh. Kayak
misal market share kita tuh 50-55 persen, sedangkan deltomed kayak Cuma misal 20-
25 persen. Tapi itu head-to-head. Yang paling gede. Di segment masuk angin. Ya kita
ngomong persaingan selama beberapa tahun terakhir ini, ya kita masih market leader
meskipun ya kita masih ngerasain ada beberapa preassure. Itu kita gabisa pungkiri lag
namanya bisnis pasti ada persaingan tapi bagi sido muncul kita masih lumayan.
P: oh oke.. selanjutnya untuk dari government indonesianya terhadap industry ini

bagaimana pak? Mendukung atau mungkin adakah regulasi-regulasi yang sekiranya
menghambat langkah-langkah untuk berkembang?
A30
N: ngg ya kita pertama dari sisi government support sangat sangat support. Kenapa?
Karena jamu itu part of culture. Indonesian culture gitu. Yang bagian dari budaya
Indonesia which is ga akan mungkin dimatiin lah sama government. Dulu pernah ada
kaya gerakan minum jamu bersama di semua intansi pemerintah setiap hari kamis kalo
ga salah saya lupa di semua instansi pemerintahan gerakan minum jamu bersama. Ya
itu kan part untuk dorongan industry herbal di Indonesia, kedua dari sisi regulasi,
industry jamu tuh ee lebih mudah dibandingkan industry obat-obatan gitu. Kalo
misalkan obat-obatan mau registrasi suatu produk, tes produknya itu bisa sampe
ummm taunan. Mungkin paling cepet itu tiga tahunan. sementara untuk jamu, itu
paling cepat paling cepet itu bisa bisa bisa enam bulan udah keluar. Atau enggak
setahun lah. Enam bulan sampe setahun. Karena bisa juga kan dua tahun, tapi dari sisi
regulasi kita oke, selama semua produk kita 100 persen herbal, kita dimudahkan.
P: ohh oke.. nah selanjutnya selain brand image, kemanjuran, serta rasa yang dapat
diterima oleh eee para customer itu, ada strength lain tidak yang buat sido muncul tuh
jauh lebih unggul dilain competitor-kompetitornya?
N: nhh yaa ummm other thing is I think distribusi kita. Distribusi kita udah massive,
terstruktur, jadi umm distribusi kita maksudnya barang gampang dicari lah. Itu salah
satu strength kita. Dibanding sama competitor lah. Skala ekonomi kita juga jauh lebih
besar juga termasuk strength jugakan, cuma tetep yang paling utama itu resep sama
brand, itusih yang paling utama.
P: betul pak. Nah kalo sebaliknya gitu pak untuk kelemahannya yang sekiranya bisa
lebih ditingkatkan oleh sido muncul?
N: umm mungkin ini ya inovasi ya menurut saya ya kan range dari produknya gitu
maksud saya. Ya seperti yang tadi kita bilang, ada anak, kita sih juga ada yang bebas
gula, eee itu kan yang penting kan tolak angin sendiri, kayak misalnya pepsodent,
pepsodent itu kan sudah generic kan, pepsodent kan ada yang whitening lah apalah,
terus dulu juga ada bikin untuk level yang anak muda kan close up, itu kenapa gabisa
konsepnya menurut saya kalo mau di adopt gitu untuk konsep akan lebih luas lagi lah
menurut saya. Misalnya tolak angin untuk milenials seperti sheila gitu, apa gitukan,
tolak angin cherry lah apa whatever it is ya, saya gatau. Atau lebih premium dengan
packaging lebih premium seperti aqua. Aqua ada yang botol bening kan? Botol bening
jual di warung gak? Enggak kan? Di hotel-hotel kan?
A31
P: iya pak
N: isinya sama gak? Sama. So that’s kind of thing, menurut saya nih ya, ini pribadi loh
ya, menurut saya itu yang room for growth gitu. Karena dominasi yang tolak angin
kuning itu strong sekali gitu. Jadi ya its our advantage at the same time our
disadvantage juga. Kalo begitu kena goyang juga its gonna effect the company a lot.
Menurut saya itusih. Sama exportnya. Room for growth nya masih besar sekali ya.
P: umm nah untuk yang tadi supplier petani 100 petani itu, itu hanya sido muncul aja
yang ngambil ke mereka atau ada perusahaan-perusahaan lain juga gitu pak?
N: nggak kalo kita udah kerja sama sama petani-petani tersebut, petani tersebut juga
gaboleh supply kemana-mana lagi kecuali ke kita doang karena kita yang beli semua
dia punya hasil panen gitu.
P: memang kerja samanya sudah seperti itu ya pak
N: iya emang kerja samanya juga udah dari dari lama sih itu
P: untuk bargaining power dari suppliernya ada satu apa namanya daerah tertentu yang
bikin angkanya berat sebelah gitu misalkan ee konsumen besar di Jakarta atau…
N: yaiya pasti adadong semua rata tiap provinsi penjualannya samaa semua itu gak.
P: iya lalu ada ketergantungan gak yang misalnya penjualannya kecil?
N: loh ketergantungannya ke yang kontribusinya besar dong?
P: maksudnya kalau yang kecil-kecil itu bagaimana gitu apakah ada ketergantungan di
konsumennya supaya tetep ada penjualan?
N: justru ya kita liatnya bukan dari ketergantungannya kalo yang kecil-kecil itu
melainkan ya potential room to growth. Ibaratnya tuh kayak untapped demand jadi
demand yang belom kita maksudnya disitu ada demand, tapi kita belom create market,
ada potensi. Itu potensi gitu, tapi kalo misalnya kalo kita ngomong area-area kita di
Indonesia timur itu growth nya yang paling tinggi loh sekrang ini, ya karena itu tadi
kamu bilang itu dasar nya kecil. Tapi ya from nothing to something gitu justru room
for improvement nya lebih gede dibandingkan kita yang sekarang udah udah bener-
bener big nya di jawa lah. Jawa ini kan kalo mau ditambahin lagi kan susah kan.
A32
Karena misalkan gini kayak konsumsi nya udah lagi tinggi-tingginya kamu mau
jebolin lagi konsumsinya kan gamungkin kan. Karena populasi kan juga segitu-segitu
doang. Tapi justru yang diluar luar ini yang kecil kecil ini adalah room to growth.
Sama same thing untuk IB nya. IB nya juga kalo misalkan kita bisa push di IB juga itu
pasti sumber source of growth yang baru juga gitu bagi kita.
P: berarti termasuk opportunity juga ya pak
N: itu salah satu opportunitynya. I think hampir semua consumer goods industry
consumer goods product itu pasti ngeliat luar pulau jawa, Indonesia timur itu sebagai
salah satu potential. Apalagi sekarang dengan infrastrukturnya dibenerin dibenahin,
biaya logistic pasti akan lebih murah, kalo udah infrastrukturnya jadi, ya kita shipping
kesana itu udah enak banget pasti udah murah gitu.. ga cost yang tinggi lagi. Kalo dulu
kan kendalanya apa? Karena costnya tinggi, jualnya harga berapa cost nya tinggi, ga
akan mungkin
P: jadi disananya juga mahal ya pak
N: nah itu mungkin salah satu apa ya opportunity. Opportunity karena ya itu Indonesia
timur kalo infrastruktur nya semakin bagus semakin baik, ya mungkin logistic cost nya
akan semakin murah gitu.
P: selain hal tersebut ditambah dengan healty life trend itu apa back to nature itu, ada
opportunity lain gak yang dapat digunakan oleh sido muncul kedepannya?
N: hmm dengan ini berkembangnya e-commerce. Kita kan belom utilize banget gitu
e-commerce padahal sekarnag kan semua trend nya kan kesana gitu. Ya itu mungkin
dari sisi digital kalo kita bisa meng-grab ya itu salah satunya sih
P: tapi sido muncul udah ada kan ya pak sido muncul store nya?
N: iya sudah ada tapi ya hanya ada gitu cuman pelengkap belom jadi source. Saya
percaya kok mungkin lima tahun kedepan mulai pelan-pelan akan terus shift gituloh.
Nanti outlet outlet toko-toko apatuh namanya
P: toko fisik gitu pak?
N: iya toko fisik itu akan lama-lama tutup. Kamu liat aja hero banyak tutup, hypermart
tutup. This is true loh milenials tuh musingin semua perusahaan. Semua gerakannya
A33
musingin perusahaan, tiba-tiba orang shifting dari yang.. biasa kamu beli baju dulu
kan orang mesti liat dulu harus nyoba. Sekarang milenials gaperlu mereka ngukur
badan sendiri gitu lalu bisa beli asal dia liat gambarnya enak gitu. Nah contohnya
lainnya juga dulu kita kan disetir sama tv, tv itukan dulu fix, jam segini akan tayang
film ini. Nah ini kan kita siap-siap nih jam segini kita harus pulang, harus nonton duduk
depan tv apa yang kita mau. Kalo sekarang mau nonton apa aja, kapan kita mau, kapan
kita bisa, udah bisa. So it means that iklan yang di advertising di tv itu lama kelamaan
akan kegerus dan diganti dengan advertising youtube, adsense lah pokoknya gitu. Jadi
ya kalo untuk mengacu pertanyaannya itu apa area lain yang bisa di ini ya menurut
saya sih itu. Kita sudah saatnya sih digitalize. Jadi ya ada satu tim yang benar-benar
professional orang pengalaman untuk develop ini. Karena once you digitalize, you can
grab also the milenials. Kita buka apa-apa sekarang, tokopedia, bukalapak, sama airy
lah apa, traveloka. Kenapa ga itu kebayang gak kalo itu iklannya tolak angin?
P: yang pop up gitu ya pak?
N: ya yang pop up kan atau ya yang kayak di youtube-youtube itu sebelum dimulai
yang kayak video will played after this gitu gitu 5 second commercial. Ini jadi bisa
menjawab dua pertanyaan sekaligus. Opportunity dan threat. Opportunity nya kita
umm bisa digitalize, yang tradisional jadi modern lah pokoknya abis kita digitalize
juga kita bisa grab juga more milenials. In terms of threat, threat nya adalah kalo kita
bergeraknya lama, mungkin innovationnya kurang atau terlalu lama, kita akan
ketinggalan wave nya gituloh. Kita gak riding the wave gituloh. Kayak main surfing
lah. Orang main surfing kan nunggu wave kan. Nunggu wave nya kan, wave yang tepat
dia baru berdiri kan kalo wave nya too early, dia jatoh. Wave nya too late, dia ga akan
kedorong kedepan gitu.
P: nah selanjutnya kalau untuk product substitute mungkin?
N: umm product substitute selain herbal, umm ya western pharmaceutical
P: termasuk ancaman untuk ini gak pak atau hanya sekedar competitor saja?
N: umm no I don’t think so ancaman ya. Kita complimentary. Even kita gini, kita gak,
kita tuh categorized as a supplement, not a remedy. Gitu. Jadi bukan yang pengobatan,
kita supplement. Makanya kalo misalnya in case udah sakit, ya tetep kita anjurkan ke
dokter atau gak ya take chemical drugs gitu. Kalau tolak angin kan suplemen. Case
A34
baru lagi nih di kuku bima, ada produk substitute? Ada. Meskipun bukan sama-sama
minuman energi. Tapi misalkan kayak minuman manis, kayak teh, teh kan selalu
booming banget kan. Nah itu kita lihat ya ada substitute. Ancaman substitute ada dari
produk lain. Tapi yang paling berasa mungkin di industry fnb nya kita. Karena orang-
orang butuh energi tuh eee gak cuma gak cuma modal kafein, tapi gula pun juga kasih
kita energi. Nah itusih.
A35
Transcript 3rd Informant
1. Menurut Euromonitor (2017), PT Sido Muncul Tbk merupakan

market leader di Indonesia untuk produk herbal atau obat-obatan
tradisional. Apa tanggapan anda terkait informasi ini? Apakah anda
dapat membagikan sedikit cerita dibalik kesuksesan PT Sido Muncul
Tbk sehingga dapat mencapai posisi tersebut? Memang benar
SidoMuncul ,merupakan perusahaan yang memproduksi produk
herbal/ jamu yang terbesar di Indonesia. Kesuksesn ini didukung
karena adanya inovasi yang berkelanjutan. Memang pada dasarnya
produk kami adalah jamu tradisional dengan resep warisan leluhur
yang tetap dipertahankan. Sehingga pada saat bentuk dan rasanya
sudah dipermodern, khasiat nya tetap dapat dijaga. Dengan inovasi ini,
produk kami dapat dikonsumsi oleh generasi milenial , tidak berhenti
pada generasi saat ini saja.
2. Sido Muncul sangat dikenal dengan salah satu produknya yaitu Tolak
Angin. Apakah Tolak Angin memang produk dengan penjualan
tertinggi dari Sido Muncul? ya
Berapa rata-rata output dari Tolak Angin yang dihasilkan setiap
tahunnya kurang lebih selama 5 tahun terakhir? Rata rata 500 juta –
900juta sachets setiap tahunnya
3. Berdasarkan sumber-sumber informasi yang sudah banyak beredar,

Sido Muncul sudah melakukan intemasionalisasi dengan mengekspor
produknyaC khususnya tolak anginE; ke negara lain. Kapan pertama
kali Sido Muncul memutuskan untuk memperluas pasarnya dan
merambah pasar luar negeri? Apa alasan dibalik keputusan
tersebut?Produk SidoMuncul ( tidak hanya Tolak angina saja) sudah berada
di 16 negara didunia ini, namuan sebelumnya penjualan ke luar negari
dilakukan dengan hanya menjual pada trader local masing masing negara /
A36
diimport oleh pedagang local. Namun sekarang kami mulai aktif melakukan
kegiatan perdagangan ke luar negeri secara aktif. Dengan mendirikan kantor
Cabang atau perusahaan yang memiliki potensi besar.
Alasan : karena produk kita sudah dapat diterima oleh masyarakat di masing2
negara, sehingga potensi ini tidak kami sia siakan.
4. Sejauh ini, bagaimana kondisi ekspor Sido Muncul? Apakah penjualan

di masing-masing pasar luar negeri memiliki angka yang stabil? Atau
bahkan meningkat?meningkat
5. Berdasarkan info yang saya dapatkan dari Bapak Carlo selaku Direktur
Independen PT Sido Muncul 'Tbk (mohon ijin apabila ada kesalahan
dalam penulisan), produk Sido Muncul yang sampai saat ini berhasil
memasuki pasar luar negeri adalah Tolak Angin dan Kuku Bima.
Mengapa Sido Muncul memutuskan hanya produk tersebut yang
diekspor keluar negeri?tidak hanya 2 produk tersebut, tetapi ada
beberapa macam produk lainnya
6. Dart rata-rata output Tolak Angin yang dihasilkan setiap tahunnya
(mengacu pada soal nomor 2), berapa persen diantara jumlah output
tersebut yang dikirimkan keluar negeri/diekspor?total expor kami
masih sangat sedikit, kurang dari 1% total penjualan
7. Mengapa Sido Muncul memilih untuk memasuki pasar luar negeri
dengan menggunakan jalur ekspor dibanding jalur lainnnya seperti
licensing, franchising, joint venture dan sebagainya?pasti lebih mudah
melalui export, licencing prosesnya mungkin jauh lebih rumit. Tahap
awal harus mengenalkan produk kita dulu sampai benar2 terkenal baru
akan mengarah ke licencing.
8. Langkah-langkah apa saja yang diambil/dipersiapkan oleh Sido
Muncul sebelum mengekspor produknya keluar negeri? Bagaimana
proses pemilihan negara sebagai pasar luar negeri oleh Sido
Muncul?sementara diputuskan: negara yang sdh bisa menerima produk
A37
kami, selanjutnya ke negara2 Asia Tenggara, alasan: habits dan

preferensi mirip dengan masyarakat Indonesia
9. Kriteria-kriteria apa saja yang dibutuhkan Sido Muncul dalam memilih
pasar luar negeri nya? Hal-hal penting lainnya apa yang dilihat Sido
Muncul di calon pasar luar negeri nya sebelum memasuki pasar
tersebut?idem 8
10.Bagaimana cara Sido Muncul memperkenalkan produknya ke luar
negeri mengingat rasa ataupun aroma dari produk Sido Muncul yang
mungkin asing bagi konsumen luar negeri?tidak ada masalah, karena
rasanya sudah disesuaikan, jangan dibayangkan seperti jamu yang
pahit. Maaf.. anda sudah pernah minum Tolak angina? Enak kan
rasanya?
Pertanyaan-pertanyaan berikut disusun sesuai dengan tema terkait kondisi

industry obat/supplement herbal di Indonesia.
1. Menurut anda, apakah faktor modal dan/atau biaya produksi

merupakan salah satu hal yang dapat menjadi barrier atau penghalang
bagi perusahaan baru untuk memasuki industry ini? Mengapa? Tidak .
Entry barrier nya adalah resep jamu yang merupakan heritage formula
yang terbukti khasiatnya, dan resep ini tidak di share atau di expose
dalam kemasan secara terbuka.
2. Apakah tenaga kerja yang dibutuhkan dalam industry ini memerlukan
skill/kemampuan/teknologi khusus? Mengapa? Dengan begitu,
apakah biaya tenaga kerja yang dibutuhkan dalam industry ini
tergolong tinggi atau rendah?ya, karena kami menggunakan mesin
mseing yang sangat modern
3. Apakah menurut anda industry ini memiliki hambatan atau barriers
yang cukup tinggi bagi pendatang-pendatang baru yang ingin
A38
memasuki industry ini?ya, lihat no 1

4. Seperti yang dilansir dari Kementerian Perdagangan, industry jamu di
Indonesia merupakan salah satu industry yang menjanjikan berkaitan
dengan kekayaan sumber daya alam di Indonesia. Bagaimana
tanggapan anda terkait pernyataan ini? Benar. Apakah akses untuk
mendapatkan bahan baku sumber daya alam yang dimaksud itu
tergolong sulit atau mudah? Bagaimana dengan Sido Muncul?
Bagaimana cara Sido Muncul mendapatkan bahan-bahan baku yang
diperlukan tersebut? Tidak sulit, karena kami telah bekerja sama
dengan banyak kelompok petani rempah diseluruh wilayah Indonesia.
5. Dalam aspek demand atau permintaan, berapa kira-kira ukuran market
(market size) yang dimiliki oleh industry ini? Apakah industry ini
untuk kedepannnya memiliki prospek yang bagus?sangat besar, belum
dilakukan survey ttg hal ini oleh pihak independent
6. Apakah ada segmentasi pasar tertentu yang khusus ditargetkan untuk
industry obat/supplement herbal ini?tergantung dari jenis produknya.
7. Apabila terdapat pernyataan yang menyatakan bahwa "Di pasar
domestic, Sido Muncul merupakan perusahaan supplement herbal di
Indonesia yang memiliki paling banyak pengalaman internasional
(dalam hal ini berkaitan dengan perdagangan internasional)
dibandingkan dengan competitor, supplier, ataupun industry berkaitan
lainnya."Belum sampai ke sana, tapi kami sedang menuju ke sana
Apakah anda setuju/tidak dengan pernyataan seperti ini? Mengapa
demikian? Untuk 5 tahun ke depan “ya”
8. Apabila anda menjawab "ya", apakah hal ini bermaksud bahwa
competitor dan supplier anda tidak memiliki pengalaman internasional
sama sekali?silahkan disimpulkan sendiri
9. Di industry obat/supplement herbal ini sendiri, industry-indsutry lain
apa saja yang sekiranya berkaitan sehingga dapat membantu Sido
A39
Muncul baik itu mulai dari proses produksi sampai produk tersebut
sampai ke konsumen? (seperti contohnya mungkin industry logistic
yang dapat mendukung efektifitas dan efisiensi rantai penjualan
dan/atau pengiriman) • Industri pendukung: Industri kemasan,
Perusahaan distribusi .
10.Bagaimana sifat persaingan dalam industry ini? Apakah cukup ketat,
atau sangat ketat, atau mungkin bahkan persaingan dapat dikatakan
cukup longgar? Sejak kami IPO, maka keterbukaan informasi
mendorong perusahaan farmasi memproduksi produk sejenis ( tentu
saja dengan resep yang totally berbeda). Persaingan masih sehat, kami
masih memiliki market share yang paling besar, karena kami adalah
pemula dan pelanggan kami cukup setia menggunakan produk
kami.Siapa competitor terbesar Sido Muncul di industry
obat/supplement herbal ini? Antangin, Bintang tujuh masuk angin dan
masih banyak lagi yang lain. Mengapa demikian?
11. Bagaimana dengan peran pemerintah Indonesia sendiri terhadap

industry ini? Dalam bentuk apakah pemerintah Indonesia dapat
membantu mendukung pertumbuhan dari industry ini? Apakah
terdapat regulasiregulasi pemerintah yang sekiranya merugikan atau
"mengharnbat" pertumbuhan market size dari industry
ini?Pemerintah cukup mendukung, misal dengan program “minum
jamu bersama”. Tentu saja Pemerintah harus mendukung karena
produk jamu merupakan warisan nenek moyang bangsa Indonesia
yang wajib dilestarikan
A40
Pertanyaan-pertanyaan berikut disusun sesuai dengan tema terkait

kondisi internal eksternal perusahaan PT Sido Muncul Tbk.
1. Hal-hal apa yang berkaitan dengan kekuatan atau strength yang dimiliki
oleh Sido Muncul sehingga Sido Muncul dapat unggul dibandingkan
competitor
lainnya dan menjadi market leader di industry ini? Unique selling point
apa yang dimiliki oleh Sido Muncul untuk menarik perhatian calon
konsumennya? Tentu saja khasiat dan rasanya yang disukai
2. Dibandingkan dengan perusahaan competitor lain di industry ini,

apakah Sido Muncul memiliki bargaining power atau kekuatan
penawaran yang lebih kuat dibandingkan suppliemya sehingga Sido
Muncul tidak memiliki ketergantungan terhadap suppliemya? Kami
membeli bahan baku dengan harga yang wajar, meskipun memiliki
bargaining position, kami tidak berusaha menekan supplier kami,
karena kerja sama ini sdh berlangsung lebih dari 50 tahun..Atau bahkan
sebaliknya? Saling mendukung.
3. Hal-hal apa yang berkaitan dengan kelemahan atau weakness yang
pernah atau masih dimiliki oleh Sido Muncul sehingga untuk
kedepannya dapat lebih ditingkatkan lagi agar dapat mencapai hasil
yang lebih memuaskan? Belum adaPersaingan
4. Bagaimana kondisi bargaining power Sido Muncul terhadap
konsumennya? Apakah Sido Muncul memiliki pasar domestic yang
merata sehingga bargaining power Sido Muncul masih lebih kuat
dibandingkan konsumennya? NA
5. Hal-hal apa yang sekiranya dapat menjadi opportunity atau
kesempatan yang mungkin akan datang di masa depan, dimana Sido
Muncul dapat menggunakan kesempatan tersebut untuk meningkatkan
pertumbuhan profitnya? Perluasan pasar ke seluruh wilayah Indonesa
dan Luar negeri
A41
Di masa yang akan datang, ancaman-ancaman atau threat apa (dari segala
aspek) yang sekiranya dapat muncul yang dapat mungkin menghambat
performs baik Sido Muncul? Apakah ancaman akan berkembangnya
produk-produk substitute merupakan salah satu ancaman bagi Sido
Muncul?Persaingan
A42
Appendix 2: Field Note
Field note narasumber 1
No : Field Note 1
Tanggal : 4 Juni 2018, pukul 11.00
Tempat : Sido Muncul Cilandak
Narasumber : Carlo Lukman
Alat Bantu Wawancara: Smartphone dan Catatan
Subjek : Kriteria Pemilihan Pasar Luar Negeri
Pewawancara : Sheila Akiko
Pewawancara sampai di lokasi pada pukul 10.55, sembari menunggu

responden, saya menunggu di lobby setelah saya ijin ke resepsionis. Pada pukul 11.00
tepat, Bapak Carlo keluar dari ruangan beliau dan memanggil nama saya, selanjutnya
saya langsung memasuki ruangan Bapak Carlo untuk melaksakan wawancara.
Topik Isi Wawancara Catatan

Peneliti
Potensi Terdapat peningkatan kesadaran para masyarakat

Industri obat- Indonesia terhadap pola hidup yang sehat ‘back to
obatan herbal nature’ dan ‘healthy lifestyle’ yang dimana dalam
sisi bisnis potensi industry ini semakin meningkat
pula
Kriteria Untuk pasar luar negeri Sido Muncul

pengambilan mengutamakan negara-negara ASEAN yang
keputusan memiliki rasa dan preferensi (demografi) yang
pasar luar hampir sama dengan Indonesia karena negara-
negeri negara ASEAN mayoritas telah familiar dengan
rasa jahe, kunyit, mint pedes. Selain itu, faktro
geografis juga menjadi bahan pertimbangan atas
A43
mengapa Sido Muncul memprioritaskan negara-

negara ASEAN
Di antara negara ASEAN pun, Sido Muncul

memilih negara-negara yang memiliki populasi
dari yang paling besar, kedua setelah Indonesia
yaitu Filipina
Bisnis Model Sido Muncul mengadoptasi tiga jenis bisnis

Sido Muncul model yang dibedakan berdasarkan jumlah
dalam investasi yang di alokasikan dan dibedakan
menerapkan berdasarkan sustainability atau keberlangsungan
aktivitas kerja sama yang dimiliki antar kedua belah pihak.
perdagangan
Bisnis model tersebut adalah trading, semi-
luar
marketing, dan marketing.
negerinya.
Kondisi Ekspor Sido Muncul sebelum tahun 2016 masih

ekspor Sido belum focus dengan melakukan ekspor. Sejak
Muncul Bapak Carlo bergabung dengan Sido Muncul,
Bapak Carlo mulai membenahi ekspor Sido
Muncul dengan mengurangi agen-agen atau
distributor yang berskala kecil, namun
memfokuskan kepada agen-agen yang sudah
terjalin hubungan lebih lama untuk ditingkatkan
jenis kerja sama nya.
Step-step Pertama, pihak Sido Muncul mempertimbangkan

Sido Muncul suatu negara. Setelah terdapat calon negara yang
sebelum akan dituju oleh Sido Muncul, Sido Muncul
exporting ke melihat profile market nya terlebih dahulu.
suatu negara Selanjutnya dilihat dari sisi consumer goods,
channel of distribution, dan juga bagaimana
kondisi pasar disana apakah masih berbentuk
A44
traditional market atau sudah lebih modern trade.

Seperti contohnya Malaysia sudah memiliki
market yang lebih modern dibandingkan dengan
Vietnam.
Bagaimana Pertama, Sido Muncul mengobservasi langsung

Sido Muncul ke lokasi untuk melihat atau survey lokasi ke
memilih negara tujuan ekspor, sekaligus untuk melihat
calon calon-calon distributornya. Selanjutnya Sido
distributornya Muncul mempertimbangkan networknya,
di negara logisticnya, dan penawaran yang diberikannya
tujuan
ekspornya?
A45
No : Field Note 2
Tanggal : 9 Juni 2018, 09.14
Tempat : -
Narasumber : Johan Hidayat (muncul.mekarsby@yahoo.co.id)
Subjek : Daya Saing dan Kegiatan Ekspor Sido Muncul
Wawancara ini dilakukan dengan via email, yang dimana penulis mengirimkan
daftar pertanyaan ke email beliau, lalu keesokkannya narasumber membalas email
penulis dengan isi jawaban seperti yang dilampirkan
A46
No : Field Note 3
Tanggal : 26 Juni 2018
Tempat : Sido Muncul Cipete
Narasumber : Billy Utama
Alat Bantu Wawancara: Smartphone dan Catatan
Subjek : Daya Saing Sido Muncul dan industry obat-obatan herbal di

Indonesia
Topik Wawancara Isi Wawancara Catatan Peneliti
Daya saing Sido Sido Muncul merupakan pemain terbesar dalam

Muncul indsutri herbal di Indonesia. Selain itu, Sido
Muncul memiliki beberapa anak perusahaan
dibawahnya termasuk Muncul Mekar untuk
perusahaan distribusi, Berlico Farma, dan
Semarang Herbal. Dan yang terbaru adalah
Muncul Nigeria Ltd yang didirikan di Nigeria.
Dengan Muncul Mekar yang menangani

distribusi produk Sido Muncul, Sido Muncul
memiliki channel distribution yang sangat besar
dibandingkan dengan perusahaan obat herbal
lainnya. Sido Muncul juga memiliki brand
image yangsudah sangat kuat, yang
meningkatkan daya saing Sido Muncul
Entry barrier Barrier paling kuat untuk menghambat pemain

baru untuk masuk ke indsutri ini merupakan
kemanjuran dari resep dan formula yang
A47
biasanya jamu merupakan iidenticdengan resep

nenek moyang
Sumber daya Sido Sido Muncul bekerja sama dengan ratusan

Muncul terkait petani rempah yang akan menjual 100 persen
raw material hasil panennya kepada Sido Muncul sehingga
Sido Muncul tidak pernah khawatir terkait
suplai raw materialnya
Industri Industry packaging dan logistik

pendukung untuk
industry herbal di
Indonesia
Product substitute Produk obat lainnya tidak menjadi ancaman

untuk Sido bagi Sido Muncul karena, sido muncul
Muncul menganggap produknya merupakan produk
pelengkap yang berguna untuk mencegah
penyakit, namun bukan untuk menyembuhkan
A48
Appendix 3: Questionnaire Result
No Gender Umur Domisili Pekerjaan
1 Female 21 - 30 Jabodetabek Pelajar/Mahasiswa
2 Female 31 - 40 Jabodetabek Pegawai Negeri
4 Male <20 Jawa Timur Pelajar/Mahasiswa
5 Female <20 Jabodetabek Pelajar/Mahasiswa
7 Female 31 - 40 Jabodetabek Pegawai Swasta
8 Male 21 - 30 Jabodetabek Pegawai Swasta
11 Female 21 - 30 Jabodetabek Pelajar/Mahasiswa, Wiraswasta
13 Male 41 - 50 Jabodetabek Pegawai Negeri
14 Female 21 - 30 Jawa Barat Pelajar/Mahasiswa
19 Female 31 - 40 Luar Jawa Pegawai Swasta

A49
23 Male 21 - 30 Jabodetabek Pelajar/Mahasiswa
28 Male 21 - 30 Jawa Barat Pegawai Swasta
29 Male 21 - 30 Jawa Tengah Pelajar/Mahasiswa
33 Male >51 Jabodetabek Wiraswasta
34 Female <20 Jabodetabek Pelajar/Mahasiswa
35 Female >51 Jabodetabek Wiraswasta, Ibu Rumah Tangga
37 Male <20 Jabodetabek Pelajar/Mahasiswa
40 Female 41 - 50 Jawa Tengah Ibu Rumah Tangga
42 Female >51 Jabodetabek Ibu Rumah Tangga

A50
45 Male >51 Jawa Timur Wiraswasta
46 Female 41 - 50 Luar Jawa Pegawai Negeri
47 Female >51 Jabodetabek Ibu Rumah Tangga
50 Male 31 - 40 Jabodetabek Wiraswasta
52 Male >51 Luar Jawa Sales obat nyamuk
53 Male 21 - 30 Luar Jawa Pegawai Swasta
54 Male 21 - 30 Luar Jawa Pegawai Swasta
55 Female 21 - 30 Jabodetabek Pelajar/Mahasiswa, Pegawai Swasta
56 Male <20 Jawa Barat Pelajar/Mahasiswa
57 Male 21 - 30 Jawa Barat Pegawai Swasta

A51
Berdasarkan penelitian yang saya

temukan dari wawancara dan berita, saat
ini banyak orang yang lebih
No Penghasilan Perbulan (rupiah)
memperhatikan gaya hidup sehat
(healthy lifestyle). Apakah anda setuju
dengan pernyataan ini?
1 < 5.000.000 Ya
2 > 25.000.000 Ya
3 5.000.000 -15.000.000 Ya
4 < 5.000.000 Ya
5 5.000.000 -15.000.000 Mungkin
6 < 5.000.000 Ya
7 5.000.000 -15.000.000 Ya
8 5.000.000 -15.000.000 Ya
9 5.000.000 -15.000.000 Ya
10 < 5.000.000 Ya
11 5.000.000 -15.000.000 Ya
12 < 5.000.000 Ya
13 5.000.000 -15.000.000 Ya
14 5.000.000 -15.000.000 Ya
15 > 25.000.000 Ya
16 > 25.000.000 Ya
17 < 5.000.000 Ya
18 5.000.000 -15.000.000 Ya
19 > 25.000.000 Ya
A52
20 < 5.000.000 Ya
21 > 25.000.000 Ya
22 < 5.000.000 Ya
23 < 5.000.000 Tidak
24 5.000.000 -15.000.000 Ya
25 < 5.000.000 Ya
26 5.000.000 -15.000.000 Ya
27 < 5.000.000 Ya
28 5.000.000 -15.000.000 Ya
29 < 5.000.000 Mungkin
30 > 25.000.000 Ya
31 5.000.000 -15.000.000 Ya
32 < 5.000.000 Ya
33 5.000.000 -15.000.000 Ya
34 < 5.000.000 Ya
35 5.000.000 -15.000.000 Ya
36 5.000.000 -15.000.000 Ya
37 5.000.000 -15.000.000 Ya
38 < 5.000.000 Ya
39 5.000.000 -15.000.000 Ya
40 < 5.000.000 Ya
41 5.000.000 -15.000.000 Ya
A53
42 5.000.000 -15.000.000 Ya
43 > 25.000.000 Ya
44 > 25.000.000 Ya
45 < 5.000.000 Tidak
46 5.000.000 -15.000.000 Ya
47 > 25.000.000 Ya
48 < 5.000.000 Ya
49 > 25.000.000 Ya
50 < 5.000.000 Ya
51 < 5.000.000 Ya
52 5.000.000 -15.000.000 Tidak
53 < 5.000.000 Ya
54 5.000.000 -15.000.000 Ya
55 < 5.000.000 Ya
56 5.000.000 -15.000.000 Tidak
57 < 5.000.000 Ya
58 > 25.000.000 Ya
59 5.000.000 -15.000.000 Ya
A54
Jika ya, berapa kali

Apakah anda pernah
rata-rata anda
Apa alasan anda terhadap mengkonsumsi jamu
No mengkonsumsi
jawaban anda diatas? atau obat-obatan
produk jamu tiap
herbal?
bulannya?
lebih concern akan

1 kesehatan tanpa produk Ya 4 - 6 kali
chemical
Sudah mulai banyak

produk dan penjual
2 makanan organik tanpa Ya 1 - 3 kali
bahan pengawet dan
makanan/minuman
kesehatan
Banyaknya orang yang

lebih memperhatikan dan
3 memilih makanan Ya 1 - 3 kali
makanan organik, vegan,
dll
4 karena sehat itu mahal Ya 1 - 3 kali
Karena belum sepenuhnya

5 sebagian kaum manusia Ya 1 - 3 kali
tidak peduli terhadap
hidup sehat
6 Tentunya itu adalah benar Ya 1 - 3 kali

dan tepat
Semakin banyaknya
tempat2 olahraga di mal.
7 Semakin banyaknya Ya 1 - 3 kali
restoran dengan menu
makanan sehat.
8 Karena sudah banyak Ya 1 - 3 kali

penyakit langka
9 Sehat itu no1 Ya 1 - 3 kali
Karena akan menjaga

10 penampilan dan Ya 1 - 3 kali
produktivitas
11 semakin banyak healthy Ya 1 - 3 kali

products
A55
12 Masyarakat jadi punya Ya 4 - 6 kali

banyak akses informasi
13 Mau tau aja Kamu Sheila Tidak

Akiko Preman
14 kesehatan adalah hal yang Ya 1 - 3 kali

paling penting
15 Karena saya juga berpikir Ya 4 - 6 kali

seperti itu
Banyak informasi pola

16 hidup sehat yang beredar Ya 4 - 6 kali
di buku, internet, maupun
majalah
17 Banyak baca crita Ya 1 - 3 kali
18 Biar sehat Ya 1 - 3 kali
19 Karena itu yang saya juga Tidak

lakukan
Hidup sudah sulit jangan

20 dibikin makin sulit dengan Ya 1 - 3 kali
kesehatan yg buruk
Karena hidup sehat sgt

21 penting untuk kesehatan Ya 1 - 3 kali
tubuh dan pikiran
semakin banyak orang

yang mengkonsumsi
22 makanan sehat dan Ya 1 - 3 kali
menjalankan gaya hidup
sehat
23 Karena jarang mendengar Ya 1 - 3 kali
Memiliki hidup sehat

sudah menjadi bagian dari
24 hidup dan menjadi Ya 1 - 3 kali
tantangan tersendiri bagi
setiap manusia
Karena saat ini hidup sehat

25 sebagai sebuah tuntutan. Tidak
Terlebih ditengah
kesibukan masyarakat
A56
Hidup sehat untuk bisa

26 nunjang kegiatan sehari- Ya 1 - 3 kali
hari kayaknya penting saat
ini
27 Berdasarkan berita dan Ya 1 - 3 kali

artikel-artikel di internet
Kita sibuk sehari-hari kerja

tapi kalau kesehatan gk
28 dijaga nanti tidak pernah Ya 1 - 3 kali
bisa prima untuk mencari
uang
Masyarakat mulai peka

29 tentang pentingnya Tidak
kesehatan dan mahalnya
biaya rumah sakit
saat ini banyak orang

memilih makanan yang
30 lebih sehat dan minat Ya 1 - 3 kali
terhadap tempat kebugaran
juga tinggi
Bisnis minuman dan

31 makanan sehat (vegan) Ya 1 - 3 kali
mulai marak
Karena kesehatan menjadi

32 hal yang mahal di zaman Ya 1 - 3 kali
ini
karena kesehatan berharga.

33 dan sekarang sudah lebih Ya 1 - 3 kali
tahu resiko, jadi makin
hati-hati
Mulai muncul banyak

34 tempat makanan atau Tidak
catering sehat
35 karena duit banyak kalau Ya 7-9

tidak sehat untuk apa
36 Teman2 dan instagram yg Ya 1 - 3 kali

demikian
37 Healthy food Ya 1 - 3 kali
38 Meningkatnya makanan Ya 1 - 3 kali

yang kurang sehat
A57
Sekarang concern
39 makanan bukan hanya rasa Ya 1 - 3 kali
tapi makanan enak yang
juga sehat
semakin kesini semakin

40 aware akan resiko tidak Ya 4 - 6 kali
menjaga kesehatan tubuh
41 yA Ya 1 - 3 kali
42 Karena biaya sakit itu Ya 4 - 6 kali

mahal
43 Karena memang ini sering Ya 1 - 3 kali

sekali terjadi
44 Memperhatikan kesehatan Tidak 1 - 3 kali

untuk jangka panjang
Masih lebih banyak orang

yang tidak perhatian
dengan gaya hidup sehat.
Masih banyak yang suka
45 tidur menjelang pagi, Ya 4 - 6 kali
makan menu junkfood dan
tinggi lemak/karbohidrat,
suka minum/makan yang
manis dan malas berolah
raga
Orang senakin sadar

46 dengan pentingnya Ya 1 - 3 kali
kesehatan
47 Panjang umur. Ya 1 - 3 kali
Karena banyak orang ingin

48 hidup untuk waktu yang Ya 1 - 3 kali
panjang.
49 Karena sehat itu mahal Ya 1 - 3 kali
Karena demand dalam

bekerja semakin tinggi,
dan keinginan untuk
50 melakukan berbagai Ya 1 - 3 kali
aktivitas juga tinggi, jadi
hidup sehat itu semakin
penting.
A58
51 Orang mulai sadar akan Tidak

pentingnya kesehatan
52 Saya temennya imam Ya >10

perdana putra bos besar dk
Karena belakangan ini

53 penyakit semakin Tidak
berkembang.
54 Sehat itu mahal Ya 1 - 3 kali
Agar menjaga benduk

55 badan dan kesehatan untuk Ya 1 - 3 kali
bisa melakukan aktifitas
yg tinggu
Karena masih banyak

56 jajanan pinggir jalan yg Ya 1 - 3 kali
sulit untuk dilewatkan
57 Issue Food Safety Ya 1 - 3 kali
Semakin banyak acara di

media yg berisi konten
gaya hidup sehat serta
58 semakin banyak catering Ya 4 - 6 kali
yang menyediakan gaya
hidup sehat dari makanan
secara online
59 Harus selalu jaga Ya 1 - 3 kali

kesehatan untuk performa
A59
Terkait dengan rasa,

Apakah anda pernah Jika ya, product jamu menurut anda apakah rasa
No mengkonsumsi jamu masuk angin apa yang dari jamu tolak angin itu
untuk masuk angin biasa anda konsumsi? sendiri dapat anda terima?
Mengapa?
1 Tolak Angin Sido ya. karena rasa mint yg

Ya
Muncul melegakan
2 Tolak Angin Sido Bisa. Rasanya cocok di

Ya
Muncul lidah saya.
3 Tolak Angin Sido Lumayan karena tidak

Ya
Muncul terlalu pahit
karena di iklan orang pintar

4 Tolak Angin Sido
Ya minum tolak angin
Muncul
sidomuncul
5 Tolak Angin Sido Bisa. Karena memang bau

Ya
Muncul jamu seperti itu.
6 Tolak Angin Sido Terima sajalah. Rasanya

Ya
Muncul memang sudah seperti itu.
7 Bisa. Karena rasanya tidak

Ya Antangin Deltomed
pahit.
8 Tidak
9 Tolak Angin Sido

Ya Bisa, rasanya ga pahit
Muncul
10 Tolak Angin Sido

Ya Bisa. Seger
Muncul
saya sukanya tolak angin

Tolak Angin Sido
11 anak karena manis dan yg
Ya Muncul, Antangin
biasa gasuka rasanya kayak
Deltomed
odol
12 Tolak Angin Sido

Ya Ya, tidak terlalu pahit
Muncul
13 Tidak
14 Tidak
15 Tolak Angin Sido Iya. Karena rasa dari jamu

Ya
Muncul tersebut dapat diterima
A60
Ya, membuat rasa hangat

16 Tolak Angin Sido
Ya dan lega terutama saat batuk
Muncul
atau kembung
17 Tolak Angin Sido

Tidak
Muncul
18 Tolak Angin Sido ya, pas dengan lodah

Ya
Muncul indonesia
19 Tidak
20 Tolak Angin Sido Ya, tidak terlalu pahit

Ya
Muncul cenderung manis
21 Tolak Angin Sido Ya, rasanya seperti obat

Ya
Muncul batuk
Masih dapat di terima, karna

22 Tolak Angin Sido
Ya rasanya tidak terlalu pahit
Muncul
dan tidak terlalu asam
23 Tolak Angin Sido Dapat, karena rasanya

Ya
Muncul cukup enak
Tolak Angin Sido

24 Ya.. karena memberikan
Ya Muncul, Antangin
rasa menyegarkan
Deltomed
25 Tidak
26 Tolak Angin Sido Ya, karena rasa nya enak

Ya
Muncul dan tidak buat mual
Kurang, karena rasanya

27 Tolak Angin Sido
Ya terlalu tajam dan kurang
Muncul
manis
28 Rasanya banyak dan enak

Ya Antangin Deltomed
pas diminum
29 Tolak Angin Sido

Ya Rasanya menyegarkan
Muncul
ya, karena meskipun rasa

jamunya cukup tajam, tapi
30 Tolak Angin Sido rasa manisnya bisa
Ya
Muncul dikatakan dapat
mengimbangi atau menutupi
rasa jamu itu sendiri
A61
31 Tolak Angin Sido

Ya Ya, rasa herbal yg subtle
Muncul
32 Tolak Angin Sido Tidak terlalu pahit, dan

Ya
Muncul manis
33 Tolak Angin Sido cukup, tapi akan lebih baik

Ya
Muncul apabila ditambah varian rasa
34 Tidak
Tolak Angin Sido

35 Ya Muncul, Antangin ya.
Deltomed
36 Tolak Angin Sido

Tidak
Muncul
37 Tolak Angin Sido Rasanya manis, bermint dan

Ya
Muncul enak
38 Tolak Angin Sido

Ya Ya, tidak aneh rasanya
Muncul
39 Tolak Angin Sido

Ya Ya, tidak terlalu pahit
Muncul
40 Tolak Angin Sido

Ya ya
Muncul
41 Tolak Angin Sido

Ya enak rasanya
Muncul
Tolak Angin Sido

42 Ya Muncul, Antangin Ya
Deltomed
Dapat diterima. Karena

43 Tolak Angin Sido
Ya rasanya tidak begitu pahit
Muncul
menurut saya
Terima.. Menjaga jika

44 Tolak Angin Sido
Ya kekurangan tidur dan tahan
Muncul
tubuh
Tolak Angin Sido Rasanya enak, lega di

45 Ya Muncul, Bintang tenggorokan dan
Toedjoe Kalbe Farma menyegarkan mulut
46 Tolak Angin Sido

Ya Tidak terasa spt jamu
Muncul
A62
47 Tolak Angin Sido Masih bisa diterima, tidak

Ya
Muncul terlalu pahit.
48 Tolak Angin Sido Ya, karena rasanya cukup

Ya
Muncul enak.
49 Tidak
50 Tolak Angin Sido Iya. Karena sudah terbiasa

Ya
Muncul dengan obat herbal.
51 Tidak
52 Tidak
53 Tidak
Bisa, karna tidak terlalu

54 Tolak Angin Sido
Ya pahit yang bikin malas
Muncul
konsumsi nya
Bisa , ya sewajarnya obat

55 Tolak Angin Sido
Ya dia sedikit pait terasa pedas
Muncul
tapi melegakan
56 Tidak
57 Tidak
Ya, walaupun gak terlalu

58 Tolak Angin Sido
Ya suka tapi rasa mint nya
Muncul
membantu
59 Tolak Angin Sido

Ya Bisa, menyejukan
Muncul
A63
Apakah menurut Apakah menurut anda

Bagaimana menurut anda anda produk jamu harga yang ditawarkan
No terkait khasiat yang dimiliki Tolak Angin ini oleh produk jamu Tolak
oleh jamu Tolak Angin? mudah untuk Angin terjangkau?
didapatkan? Mengapa demikian?
1 oke Ya terjangkau
Biasa saja. Bersaing

Biasa saja. Saya tidak terlalu
2 Ya dengan produk merek
merasakan khasiatnya.
lainnya
Ya karena ditujukan
untuk semua kalangam
3 Biasa saja Ya dan orang membutuhkan
produk tersebut lumayan
sering
ya,karena keluarga saya

luar biasa,udara perut
4 Ya bercukupan sehingga
langsung 0
mampu beli tolak angin
Terjangkau karena obat

Lumayan efektif dalam tersebut dibuat dari
5 Ya
menghilangkan masuk angin. bahan yang mudah di
dapat.
Saya kurang yakin

khasiatnya. Tapi mungkin
jadi sugesti aja. Kalau masuk Awalnya lumayan
6 angin minum tolak angin. Ya murah. Tapi lama2 jadi
Padahal belum tentu mahal juga.
berkhasiat mengobati masuk
angin
Cukup terjangkau untuk

harga 1 sachet tidak
Lumayan membantu
sampai 5000 rupiah
7 mengurangi rasa 'tidak enak Ya
sudah bisa membantu
badan'.
mengurangi rasa sakit
(masuk angin).
Ya, tidak semahal obat"

9 Sejauh ini memuaskan Ya
lainnya
10 Bagus Ya Iya
lumayanlah. lebih ke sugesti iya, karena memang

11 Ya
aja murah
A64
12 Bagus Ya Ya, harga reasonable
13
14
Cukup berkhasiat bagi saya

karena saya suka masuk Terjangkau. Karena saya
15 Ya
angin terus suka sembuh jual. Hehe
karenanya
Ya. Karena saya mampu

16 Cukup ampuh Ya
beli
17
terjangkau, at least
18 baguus Ya
worth it
19
Efektif untuk menghangatkan

tubuh dari dalam karena saya
20 Ya Ya, karena murah
jomblo tidak ada yg
menghangatkan dari luar
Lgsg sendawa setelah

21 Ya Ya, murah
dikonsumsi
menurut saya sangat

terjangkau, masih bisa di
22 berkhasiat dan langsung Ya
beli
meredakan gejala flu saya
Terjangkau, karena saya

23 Ada Ya
dapat membelinya
Terjangkau.. tidak
Membantu mengurangi
24 Ya terlalu mahal dr segi
masuk angin
ukuran
25
Sangat terjangkau,
Cukup baik sejauh yang saya karena harganya murah
26 Ya
rasakan. dan tidak buat dompet
bolong
Iya. Dengan ukuran

27 Cukup baik Ya sachet sangat terjangkau
dan relatif simpel
A65
Kasiatnya bagus. Badan saya Menurut saya harganya

28 jadi gk gampang masuk Ya murah banget tapi
angin dan selalu segar kasiatnya bagus
29 Cukup baik Ya Iya, murah
dengan khasiat dan

kualitas yang diberikan,
30 bagus Ya
tolak angin dapat
dikatakan terjangkau
Cukup sesuai dengan khasiat

31 Ya Ya
yang ditawarkan
Berpengaruh terhadap
32 Ya Terjangkau
kebutuhan badan
terjangkau. tapi makin

33 berpengaruh kok lumayan Ya
murah makin bagus
34
35 jos, tokcer Ya bersahabat
36
Karena bisa dikonsumsi

37 Cukup efektif Ya
semua kalangan
38 Ampuh Ya Ya, karena murah (?)
39 Cukup bagus Ya Ya, tidak terlalu mahal
lumayan manjur kalu minum

ya tidak butuh pikir dua
40 saat badan mulai rasa tidak Ya
kali untuk beli
enak
41 manjur Ya terjangkau
42 Manjur Ya Ya karena tidak mahal
Sangat terjangkau.
Selama saya mengkonsumsi
Karena memang untuk
khasiatnya cukup bisa saya
43 Ya harga pasaran menurut
rasakan ketika sedang tidak
saya sudah pas untuk
enak badan
masyrakat
Terjangkau.. Karena isi

44 Oke Ya dari 1 box lumayan
banyak
A66
Harga sudah bagus dan

Sudah bagus. Tinggal
berharap harga di pasar
menjaga jangan sampai ada
45 Ya lokal indonesia tetap
obat-obatan kimia masuk
murah. Ini jamu yang
dalam campuran.
sudah merakyat.
Mempunyai sugesti yang

46 Ya Ya
kuat
Terjangkau. Bisa beli

47 Meringankan sakitnya Ya
satuan
Cukup membantu apabila

48 Ya Ya
saya masuk angin.
49
Iya. Karena dengan

Baik. Karena memang dapat
harga yang ada, kita
membantu menghilangkan
50 Ya masih mendapatkan
mual, pusing dan sakit ringan
beberapa sachet
lainnya.
sekaligus.
51
52
53
Kashiat alaminya cepat

54 membantu kondisi tubuh Ya Masih terjangkau
kembali
Ya, murah banget

Bikin angin keluar terus juga
55 Ya dengan kemasan yang
meredakan mual
sesuai
56
57
Cukup ampuh, terutama

58 dalam masuk angin setelah Ya Iya terjangkau
begadang
Membuat pernafasan lebih

59 Ya Terjangkau, worth it
lancar

Marketing Strategy Through Internationalization Analysis For Choosing The International Market of PT. Sido Muncul TBK

Încărcat de

Informații document

Titlu original

Drepturi de autor

Formate disponibile

Partajați acest document

Partajați sau inserați document

Opțiuni de partajare

Vi se pare util acest document?

Este necorespunzător acest conținut?

Drepturi de autor:

Formate disponibile

Marketing Strategy Through Internationalization Analysis For Choosing The International Market of PT. Sido Muncul TBK

Încărcat de

Drepturi de autor:

Formate disponibile

MARKETING STRATEGY THROUGH INTERNATIONALIZATION

ANALYSIS FOR CHOOSING THE INTERNATIONAL MARKET OF

Sheila Akiko Dwiputri 1801378991

International Business and Management Program

International Business and Management Study Program

Binus Business School

For Bachelor Degree in

Management Study Program

Sheila Akiko Dwiputri 1801378991

International Business and Management Program

Management Study Program

Binus Business School Undergraduate Program

Sheila Akiko Dwiputri

Rianto Nurcahyo. S.E., M.M.

Dr. Engkos Achmad Kuncoro, S.E., M.M.,

Bina Nusantara University

Name : Sheila Akiko Dwiputri

Thesis Title : Marketing Strategy through Internationalization Analysis for

Jakarta, 8th August 2018

Sheila Akiko Dwiputri

MARKETING STRATEGY THROUGH INTERNATIONALIZATION

Sheila Akiko Dwiputri 1801378991

This research explores the internationalization process of a company specifically Sido

Jakarta, 10th July 2018

TABLE OF CONTENTS .......................................................................................... viii

LIST OF TABLES ..................................................................................................... xii

TABLE OF FIGURES .............................................................................................. xiii

TABLE OF APPENDIX ........................................................................................... xiv

CHAPTER 1 INTRODUCTION .............................................................................. 1

1.1 Research Background ......................................................................... 1

1.2 Problem Identification ...................................................................... 11

1.3 Research Objective ........................................................................... 12

1.4 Research Benefit ............................................................................... 12

1.5 Scope of Research ............................................................................ 13

1.6 State of the Art ................................................................................. 13

CHAPTER 2 LITERATURE REVIEW ................................................................. 19

2.1 Definition of Internationalization ..................................................... 19

2.1.1 Internationalization Theories ...................................................... 19

2.1.2 The Uppsala Model .................................................................... 20

2.1.3 Internationalization Motives....................................................... 22

2.2 Global Marketing ............................................................................. 23

2.3 Firm’s International Competitiveness .............................................. 25

2.3.1 Analysis of National Competitiveness - The Porter Diamond ... 28

2.3.2 Industry Competition and SWOT Analysis ................................ 32

2.4 Deciding Which Market to Enter ..................................................... 36

2.4.1 Market Segmentation ................................................................. 37

2.4.2.1 Preliminary Screening ......................................................................... 40

2.4.2.2 Fine-Grained Screening - GE/McKinsey Matrix................................. 41

2.5 Direct Export Entry Mode ................................................................ 43

2.5.1 Agents ......................................................................................... 44

2.5.2 Distributors ................................................................................. 45

2.6 Conceptual Framework .................................................................... 46

CHAPTER 3 RESEARCH METHODOLOGY ..................................................... 47

3.1 Research Design ............................................................................... 47

3.1.1 Research Approach ..................................................................... 48

3.1.2 Time Horizon ............................................................................. 48

3.2 Types and Source of Data................................................................. 50

3.3 Respondent Sampling ....................................................................... 50

3.4 Data Collection Method ................................................................... 51

3.4.1 Primary Data ............................................................................... 51

3.4.2 Secondary Data ........................................................................... 53

3.5 Data Analysis Method ...................................................................... 54

3.6 Data Validity Method ....................................................................... 56