Mustika Ratu Case Summary

Mustier Rats Marketing strategy Throughout the sass, the company expanded its line traditional enhancives (facial care & nonfunctional makeup, hair and body care intersection point) and the established itself as the uncontested marketplace leader by 1998, four out of very 10 cosmetic products sold in Indonesia were Mustier Rata brands. Positioned as competitively priced, quality products formulated specifically for Indonesian skin. Company literature reinforced that its products were natural and integrated dateless Indonesian beliefs of the health and lulu properties of local plants and herbs.Mustier Rats Jambs appealed to some(prenominal) market segments. fragment Men, women, adults, and teenagers. Target Predominantly middle- to upper-middle-income cue insurers. Positioning Products were natural and integrated in margeinable Indonesian levels of the health and beauty properties of local plants and herbs. Condition of competition in the jam segment was becoming fierce i n the next sideline years. Many roadside stalls selling jambs to cure headaches, boost knowledgeable drive or to reduce weight were common. These jambs were targeted at the middle- to lower-income market segment.So, Mustier Rata besides competed in these market segments with their flank brand Garage Jambs. According to the companys 1 997 annual report, this line contributed to overall profitability and had great potential for forthcoming growth. Exhibit low are Mustier Rats product differentiation based on market segment. Each segment has each marketing strategy that equal to applied to their market. Based on reading text, Mustier Rats core value that induce study quality of Mustier Rats product was high quality of their natural ingredients.It effect a competitive fixings for Mustier Rata differentiation to a nonher brands. This competitive factor that Mustier Rata tried to sell from their marketing campaign. This became a major focus in the companys marketing communicatio ns. An average of over 25 percent of annual benefit sales was spent n marketing campaigns which promoted value-priced, natural alternatives to imported cosmetics. some other strike promotion activity that increased the companys indite was sponsorship of several major beauty events, including the Miss Indonesia pageant.B. R. A. Immoralitys high profile as an testifyer of Mustier Rata, who granted meritorious achievement in the promotion of Indonesian culture and traditions and the Asian Institutes Marketing Management Award (in 1992 and 1 995) also increased Mustier Rats profile in domestic area. Mustier Rats Distribution Strategy Over the years, Mustier Rata had developed its own wellspring-established and highly organized diffusion system, controlled through a recently installed reading technology (IT) control system.The application of improved IT control systems ensured a high level of service and more efficient delivery schedules as well as more accurate and timely con sumer information. IT system was also installed collectible to the the challenges posed by Indonesian geography, which is Indonesian area is so vast. other prodigious challenge in diffusion in Indonesia was the highly split up nature of the sell industry thousands of small outlets and roadside stalls accounted for a significant percentage of Indonesian retail activity.Mustier Rata used all of benignant distribution channel to market their extensive product lines. Mustier Rata Brands Distribution lineage Lower- and middle- income brand ubiquitous stalls, wet markets, conventional retail shop, supermarket, direct sales channel Upper- income brand Department stores, company-own stores, direct sales force Since 1 992, Mustier Rata had concentrated on intensifying their department store distribution channel.Another key strategy was to increase of distribution channels previously managed by triad parties in their most densely populated and lucrative markets. The establishment of Mustier Rata-owned and operated distribution systems resulted in an average of two and one-half percent increase in Mustier Rats operating margins. Delivery time was also shortened, and quality of service provided to retail outlets was enhanced. Company also changed its accounts receivable policy, shortening the due period from 90 days to 30 days.Namely it addressed lead times and resulted to smaller secern lots. According to Essayist on the reading text, the companys distributors were his eyes and ears monitoring customer opinion and relaying vital market information to the corporate marketing department. Mustier Rats planetary Market In international markets, Mustier Rata used a combination of in-house owned operated distribution channels, as well as contracted distributors.Malaysia The companys most significant international market, accounting for 70% of international revenue. 1 995, Mustier Rata established several House of Mustier Rata treatment centers, which resulted i n doubling sales. Target Market native Malay (properly target), Chinese (lasted catered), halfway market products. Philippines Demographics in Philippines market were relatively similar with domestic product lines. Target Market Health and beauty products for teenage girls was one of the least crowded market segments.Next step in penetrating the Filipino market was to capitalize on the established third-party distribution channels used for the body splash and to introduce other product within the Putter line as well as Mustier Rats slimming Tea. The Middle East Mustier Rata had opened 14 House of Mustier Rata outlets in United Arab Emirates, Saudi-Arabian Arabia, and Egypt. Target Market Brand with in developing natural products that adhered to the Muslim Hall standards -? products made with no animal fat and that had never been tested on animals.Other Countries The another countries was Hong Kong and Holland (Mail order distribution channel) South Africa, Canada, Australi a, China, Japan, Korea, Vietnam Taiwan, and Thailand (Investigating Market) Successfully Navigating Through A Chaotic External Environment Mustier Rata had averted the misfortune in 1 998 that had befallen some(prenominal) of heir competitors through cautious investment of the proceeds of their PIP (much of which had not been used as originally planned), mostly in short term deposits at foreign-owned banks.