CHAPTER 8

SUPPLY CHAIN AND MARKETING

8.1

Supply Chain

8.1.1

Definition of Supply Chain Management

Supply chain management is a cross-function approach including in managing

the movement of raw materials into an organization, certain aspects of the internal
processing of materials into finished goods, and the movement of finished goods out
of the organization and toward the end-consumer. As organizations strive to focus on
core competencies and becoming more flexible, it reduces its ownership of raw
materials sources and distribution channels. These functions are increasingly being
outsourced to other entities that can perform the activities better or more cost
effectively. The effect is to increase the number of organizations involved in
satisfying customer demand, while reducing management control of daily logistics
operations. Less control and more supply chain partners led to the creation of supply
chain management concepts. The purpose of supply chain management is to improve
trust and collaboration among supply chain partners, thus improving inventory
visibility and the velocity of inventory movement.
8.1.2

Plant Location
Plant location is one of the factors that determine the sustainability of the

entire physical activity in anti-termite product manufacturing, which is started from

taking raw materials, manufacture processes, until the distribution of the product to
reach the public. Selecting the plant location requires careful consideration, because it
will determine the cost of production and distribution of an industrial activity (both in
terms of minimizing expenditure or maximizing revenue), determine the expansion of
the plant in the future, as well as determine the central unit of work on the plant. The
following is some parameters that affect the specification of the plant location:

1. The location of costumers or the market places, is the placement of plant

in the area that near with costumers. The underlying reason why the plant
location must be closed to the costumers is the easiness for us to find out
the change of costumers taste to our product, reduction of the damage risk
in transport, reduction the distribution costs, etc.
2. Sources of raw materials, is the placement of plant in the area near that
near with raw materials. Basic considerations are taken when the raw
materials experienced shrinkage in volume or weight, raw materials are
easily damaged or changing in quality, and there is high risk of lack raw
materials.
3. Labor resources, an alternative that be used is if unskilled labor with
consideration of the low payment levels, simple culture life, high mobility
so the amount of salary is considered as an attraction, or skilled labors that
require better facilities, have thought about bright future, it takes skill, and
easier to find another jobs.
4. Have good transportation lines, so that the transportation access become
easier
5. Not too far from ports or airports
6. Have good facilities and utilities, such as electricity, communication, and
water.
7. Air temperature, these factors affect the smooth operation of the process
and quality results.
8. Environment, society, and the attitudes that emerge when established
factories near where they live, whether to accept or not.
9. Government regulations, laws, and tax system. General aspects that are
regulated in legislation are about maximum working hours, minimum
payment, minimum working age, and working conditions.
10. Industrial waste disposal, related to the level of pollution, waste disposal
system for the protection of the surrounding nature and maintaining
habitat balance.

Then, with taking into consideration in every parameter of plant site selection, there
are few alternatives places for our naphthalene ball factory, they are :
1. Jl. Cikunir Raya Blok Rawan Semut 1 No.12.

This industrial park is located next toll road Jakarta-Cikampek, West

Cikarang, Bekasi. This location is very strategic because it is located along the
Jakarta-Cikampek toll access through the Cibitung intersection that is very
freely from traffic, with the 54 km distance to the Soekarno-Hatta Airport, 15
km distance to Halim Perdana Kusuma Airport, 30 km along the Jakarta CBD
and to the Port of Tanjung Priok along 26 km. Moreover, the reason this site
selection is the price of land is still very low compared to other locations as
well as the potential for plant expansion planning in the future. In addition,
its very easy for employee recruitment because there is head management
who heads the entire of this industrial park.

Figure Error! No text of specified style in document..1. Map of Cikunir Plant

(Source: Authors Personal Data)

2. Delta Silicon Industrial Area, Lippo Cikarang

This area is located on Cikarang City. There are some infrastructure

such as roads, electricity, water and telecommunications. In this area, there is
still a lot of vacant land and have not used or purchased by another company.
The location in this area is considered quite strategic because it has very
close access to ports and airports. The distance from this area to Halim

Perdanakusuma Airport is about 36.6 km.

(Source: http://wikimapia.org/15732848/id/Kawasan-Industri-Delta-Silicon)
Figure Error! No text of specified style in document..2 Map of Delta Silicon Industrial Area,
Lippo Cikarang

8.1.3.1 Raw Materials Location

Our products are composed of naphthalene flakes, camphor, paraffin
wax, lavender fragrance and boric acid.

Table 1 Raw Material for Making Byemite

Total of
Name of

Compositio

required

materials

material per

1st supplier

2nd supplier

day (kg) *
Shenyang
Naphthalene
Flakes

80%

240

Unitama Sari
Mas, PT
P.T. Surya

Camphor

10%

30

Mas Mentari
(Jakarta)
PT. Anugrah

Boric Acid

5%

15

Putri Kencana
(BekasiCikarang)
PT. Sumber

Paraffin Wax

Lavender
Fragrance

1%

4%

12

Wasindo

Xingzhenghe
Chemical Co.,
Ltd.
(China)
P.T. Sinar
Gemilang
(Jakarta)
PT. Artha Jaya
Sanatyasa
Chemical
Indonesia
(Tangerang)
PT. Dua Kuda
Indonesia
(Jakarta)

Perkasa
(Jakarta)
CV. Jujur

Multi Karunia

Mujur
(Jakarta)

Nusantara
(Surabaya)

Table 2 Packaging Materials for Byemite

Total of required
Name of materials

material per day

(kg) *

1st supplier

2nd supplier

LDPE

PT. Asa Cipta

Semesta (ACS
INDO)

Cardboard

0.5

Kosasih Indonesia

8.1.3.2 Alternatives and Modelling Scenarios

From the supplier locations above, we must determine where we must
finally choose supplier to get raw materials that we want to used. Major
consideration that we have is how fast the raw materials needed can get into
the plant and how much the cost that it needs. But for this section, we will
only take into account the time factor and ruled out cost factor first for the
economic analysis are discussed in the next section. Here is a table that shows
three alternative plant selection and location of any supplier who will supply
each type of raw material.
Table 3 Alternative Determination of Byemite Constituent Materials Supplier

st

2nd Alternative (Cikarang

Name of materials

1 Alternative (Cikunir Plant)

Naphthalene Flakes

Unitama Sari Mas, PT

(Jakarta)

Unitama Sari Mas, PT

(Jakarta)

Camphor

P.T. Surya Mas Mentari

(Jakarta)

P.T. Sinar Gemilang

(Jakarta)

Boric Acid

PT. Anugrah Putri Kencana

(Bekasi-Cikarang)

PT. Anugrah Putri Kencana

(Bekasi-Cikarang)

Paraffin Wax

PT. Sumber Wasindo Perkasa

(Jakarta)

PT. Dua Kuda Indonesia

(Jakarta)

Lavender Fragrance

CV. Jujur Mujur

(Jakarta)

CV. Jujur Mujur

(Jakarta)

Plant)

Table 4 Alternative Determination of Byemite Packaging Materials Supplier

Name of materials

st

1 Alternative (Cikunir Plant)

(Cikarang Plant)

PT. Asa Cipta Semesta (ACS

PT. Multiplas Kreatif

INDO)

Mandiri

(Jakarta)
Kosasih Indonesia

(Jakarta)
PT. Karya Mandiri Kreasi

(Jakarta)

(Jakarta)

LDPE

Cardboard

2nd Alternative

Then, from some alternatives above, we create models that will help us
in the selection of alternative objectively and measurably. Selection is made
by multiplying the travel time from each supplier to the factory location of
each alternative and multiplied by the weight. The weights are determined by
the percentage on the product (for materials), and their significance in
finishing products (for packaging). In making this model the West Cikarang
then finally selected as the most ideal place for the establishment of the
factory location when viewed from the time parameter. The following table
show you about its processing.
Table 5 Alternative Models for the Determination of Raw Materials Composition in Byemite

Distance and

Distance and

Name of

travel time of 1st

travel time of 2nd

materials

alternative

alternative (Delta

(Cikunir Plant)
37.8 km (48

Silicon Plant)

Naphthalene
Flakes
Camphor

minutes)
41.6 km (62
minutes)

56 km (73 minutes)
56.1 km (78
minutes)

1st

2nd

Weights (from

alternative

alternative

Composition)

(Cikarang

(Delta Silicon

Plant)

Plant)

80%

38.4

58.4

10%

6.2

7.8

28.7 km (31

7.1 km (14

Paraffin

minutes)
26.5 km (32

minutes)
44.8 km (70

Wax
Lavender

minutes)
73.6 km (93

minutes)
94.2 km (108

Fragrance

minutes)

minutes)
Total

Boric Acid

5%

1.55

0.7

1%

0.32

0.7

4%

3.72

4.32

100%

50.19

71.92

Table 6 Alternative Models for the Determination of Packaging Materials Composition in Byemite

Distance and

1st

Distance and
st

travel time of 1

materials

alternative

alternative (Delta

(Cikunir

(Cikunir Plant)
36.8 km (48

Silicon Plant)

Plant)

56 km (73 minutes)

38.4

58.4

6.2

7.8

44.6

66.2

Carboard

minutes)
45.3 km (62
minutes)

56.1 km (78
minutes)
Total

alternative

2nd alternative

Name of

LDPE

travel time of 2

nd

(Delta Silicon
Plant)

8.1.3.3 Distribution Chain of Raw Materials

Raw materials of Byemite product sent by the supplier to the first
alternate factory in West Cikarang either by road or sea. Cost of delivery to
the factory warehouse is assumed to be the responsibility of the supplier and is
included in the contract that has been made. Before it is sent, it should be
determined how much of the raw materials to be ordered, the time of booking,
and when the receipt of raw materials at the plant. Moreover, it also needs to
take into account the storage life of raw materials that the raw materials are

ordered does not exceed the storage capacity or pile up so that nothing is
broken. The next table in this section shows every thing discussed.
Order capacity is based on how long a supplier can fulfill ordering to a
raw material, in example, from order to the ordered goods arrive to plant
warehouse, whether the capacity which ordered can fulfill the production
process, the resistance of a raw material, and especially how much the
minimum number of ordering. The number or capacity of the first ordering is
not in accordance with the required capacity, but exaggerated to anticipate any
problems in the delivery of raw materials or are damaged so that in case of
such problems, production is still can running. The next order adjusted to
capacity needed to keep the number of items stored does not exceed the
storage capacity (items are not piling up).
The percentage of emergency capacity or capacity that exceeded based
on the material characteristics. However, all materials used in the production
process of Byemite product is not easily damaged or expired. Thus, it was
decided that each material has a high percentage of emergency capacity
because of long storage life.
Delivery time is the time it takes long or items ordered from supplier's
first mode of transportation that transports the goods leave the supplier until
the end of transportation modes company that owned by suppliers, arrive at
the factory to make loading and unloading. All modes of transportation for the
shipment of raw materials from suppliers to factories use the roads because it
is still in the island.
Determination of total base using a method that is also used to
calculate the order capacity. The method used is the Economic Order Quantity
(EOQ). EOQ method is determine when and how much is the inventory must
be ordered at certain time to minimizes the cost of the annual inventory.
Because, if the company doesnt use the EOQ method in material purchasing
(to often, to sparse, to slight, or to much ), the cost for it must be high. In

other words, EOQ determine the optimum number of orders at any given time
is determined by balancing two factors, i.e.:

Ownership costs (storage) of raw materials

Usually expressed as a percentage of average investment in inventory,

because most common variable is the interest cost and the cost of capital.

Ordering Cost
Fixed cost of raw materials ordering is irrelevant, because only the

variable costs or cash costs should be included in the purchase. The booking
fee includes the cost of making proof of purchase requests, purchase orders,
receiving reports, handle shipments, communication with suppliers,
accounting and payment upon delivery and other charges due to insufficient
supplies including loss of opportunity for savings in the purchase and
utilization of duty discounts on purchases.

EOQ=

2 amount of raw material neededa year order unit cost

raw material cost per unit cost deviation percentate
Table 7 EOQ for Each Raw Material

Raw
Material

Feed
stock
per
day
(kg)

Feed
stock
per
year
(kg)

Feed
stock
per
month
(kg)

Feed
stock
per
week
(kg)

Base
(kg)

Price per
unit (kg)

Total price
per base

Naphthale
ne Flakes

240

7920
0

5760

1440

100
0

Camphor

30

9900

720

180

100

Boric Acid

15

4950

360

90

10

990

72

18

12

3960

288

72

Rp15,60
0.00
Rp78,00
0.00
Rp6,475.
00
Rp14,30
0.00
Rp13,00
0.00

Rp15,600,0
00.00
Rp7,800,00
0.00
Rp64,750.0
0
Rp14,300.0
0
Rp13,000.0
0

Paraffin
Wax
Lavender
Fragrance

Total
delivery cost
per base
Rp5,000,00
0.00
Rp700,000.
00
Rp60,000.0
0

Order
time
(day)
2
2
2

Rp7,000.00

Rp7,000.00

EOQ
14250.
51
843.07
13
605.76
38
62.264
94
130.60
8

EOQ
(Approa
chment)
14251
844
606
63
131

Table 8 EOQ for Each Packaging Material

Packagin
g
Material

Feed
stock
per
day
(kg)

Feed
stock
per
year
(kg)

Feed
stock
per
month
(kg)

Feed
stock
per
week
(kg)

Base
(kg)

Price
per unit
(kg)

Total price
per base

Total
delivery
cost per
base

Order
time
(day)

EOQ

EOQ
(Approa
chment)

Plastic

660

48

12

0.5

5000

Boxes

0.5

165

12

0.5

5000

Rp2,500.0
0
Rp2,500.0
0

1500

39.7995

40

2000

22.97825

23

Table 9 Order Capacity for Each Raw Material

Raw
Material
Naphthale
ne Flakes
Camphor
Boric Acid
Paraffin
Wax
Lavender
Fragrance

Total
order
per day
(kg)

Safety
stock

Safety stock
(Approachment)

Order
size

Reorder
point

Total
order per
year
(times)

Total order per year

(times)
(Approachment)

480

72

72

14323

552

5.557505

60
30

9
4.5

9
5

853
611

69
35

11.72986
8.168317

12
9

0.9

64

15.71429

16

24

3.6

135

28

30.22901

31

Table 10 Order Capacity for Each Packaging Material

Packagin
g
Material

Total
order
per day
(kg)

Safety
stock

Safety stock
(Approachment)

Order
size

Reorder
point

Total
order per
year
(times)

Total order per year

(times)
(Approachment)

Plastic

0.6

41

16.5

17

Boxes

0.15

24

7.173913

Table 11. Ordering and Delivery Schedule of Byemite Raw Materials and Packaging Materials (Part 1 of 2)

Raw
materials
Naphthalene
Flakes
Camphor

Schedule
Ordering
Reception
Ordering
Reception

Boric Acid

Ordering
Reception

January
1 2 3 4

February
1 2 3 4

March
1 2 3 4

April
2 3 4

May
2 3

June
2 3 4

July
1 2 3

Ordering

Paraffin Wax

Reception
Lavender

Ordering

Fragrance

Reception
Ordering
Reception
Ordering
Reception

LDPE
Cardboard

Table 12 Ordering and Delivery Schedule of Byemite Raw Materials and Packaging Materials (Part 2 of 2)

Raw materials

Schedule

Naphthalene

Ordering
Reception
Ordering
Reception
Ordering
Reception
Ordering
Reception
Ordering

Flakes
Camphor
Boric Acid
Paraffin Wax
Lavender

August
2 3

September
1 2 3 4

October
2 3
4

November
1
2
3
4

December
1 2 3 4

Fragrance

Reception
Ordering
Reception
Ordering
Reception

LDPE
Cardboard

2.1.1

Inventory of Raw Material and Packaging Material

Raw material which store as safety inventory is necessary to keep in order to make constant production.
Table 13 Curve Inventory Of Raw Material

Scheduling
Month

Week

Day

0
1

0
1

0
1
2

Naphthalen
e Flakes

Camph
or

Boric
Acid

Paraffi
n Wax

14323
14323
14083

853
853
823

611
611
596

64
64
61

Lavende
r
Fragranc
e
135
135
123

LDP
E

Cardboa
rd

41
41
39

24
24
24

3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29

13843
13603
13363
13123
12883
12643
12403
12163
11923
11683
11443
11203
10963
10723
10483
10243
10003
9763
9523
9283
9043
8803
8563
8323
8083
7843
7603

793
763
733
703
673
643
613
583
553
523
493
463
433
403
373
343
313
283
253
223
193
163
133
103
73
43
866

581
566
551
536
521
506
491
476
461
446
431
416
401
386
371
356
341
326
311
296
281
266
251
236
221
206
191

58
55
52
49
46
43
40
37
34
31
28
25
22
19
16
13
10
7
4
65
62
59
56
53
50
47
44

111
99
87
75
63
51
39
27
15
138
126
114
102
90
78
66
54
42
30
18
141
129
117
105
93
81
69

37
35
33
31
29
27
25
23
21
19
17
15
13
11
9
7
5
3
42
40
38
36
34
32
30
28
26

23
23
22
22
21
21
20
20
19
19
18
18
17
17
16
16
15
15
14
14
13
13
12
12
11
11
10

30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56

7363
7123
6883
6643
6403
6163
5923
5683
5443
5203
4963
4723
4483
4243
4003
3763
3523
3283
3043
2803
2563
2323
2083
1843
1603
1363
1123

836
806
776
746
716
686
656
626
596
566
536
506
476
446
416
386
356
326
296
266
236
206
176
146
116
86
56

176
161
146
131
116
101
86
71
56
41
26
622
607
592
577
562
547
532
517
502
487
472
457
442
427
412
397

41
38
35
32
29
26
23
20
17
14
11
8
5
66
63
60
57
54
51
48
45
42
39
36
33
30
27

57
45
33
21
144
132
120
108
96
84
72
60
48
36
24
12
135
123
111
99
87
75
63
51
39
27
15

24
22
20
18
16
14
12
10
8
6
4
2
41
39
37
35
33
31
29
27
25
23
21
19
17
15
13

10
9
9
8
8
7
7
6
6
5
5
4
4
3
3
2
2
1
1
24
24
23
23
22
22
21
21

Legend :
Red

: Order

Blue

: Reception

Naphthalene Flakes
15000
14000
13000
12000
11000
10000
9000
8000

Kg Material

Naphthalene Flakes

7000
6000
5000
4000
3000
2000
1000
0

30

60

90

120

150

180

210

240

270

300

330

Day

Figure Error! No text of specified style in document..3 Naphthalene Flakes Fluctuation Curve

Camphor
1000
900
800
700
600

Kg Material

500

Camphor

400
300
200
100
0

30

60

90

120

150

180

210

240

270

300

Day

Figure Error! No text of specified style in document..4 Champor Fluctuation Curve

330

Boric Acid
1000
900
800
700
600

Kg Material

500

Boric Acid

400
300
200
100
0

30

60

90

120

150

180

210

240

270

300

Day

Figure Error! No text of specified style in document..5 Boric Acid Fluctuation Curve

330

Paraffin Wax
300

250

200

Kg Material

150

Lavender Fragrance

100

50

30

60

90

120

150

180

210

240

270

300

330

Day

Figure Error! No text of specified style in document..6 Paraffin Wax Fluctuation Curve

Lavender Fragrance
100
90
80
70
60

Kg Material

50

Paraffin Wax

40
30
20
10
0

30

60

90

120

150

180

210

240

270

300

330

Day

Figure Error! No text of specified style in document..7 Lavender Fragrance Fluctuation Curve

LDPE
100
90
80
70
60

Kg Material

50

LDPE

40
30
20
10
0

30

60

90

120

150

180

210

240

270

300

Day

Figure Error! No text of specified style in document..8 LDPE Fluctuation Curve

330

Cardboard
100
90
80
70
60

Kg Material

50

Cardboard

40
30
20
10
0

30

60

90

120

150

180

210

240

270

300

330

Day

Figure Error! No text of specified style in document..9 Cardboard Fluctuation Curve

The full data of raw material and packaging material fluctuation can be seen in the Appendix.

2.1.2

Inventory of Product
The market of Byemite is Jabodetabek. Our product will keep being stored and

transported to the retailer from the wholesaler. The following curve storage of product is shown
in the next table and figure.
Tabel 14 Byemite Inventory

Week

Production

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24

14000
14000
14000
14000
14000
14000
14000
14000
14000
14000
14000
14000
14000
14000
14000
14000
14000
14000
14000
14000
14000
14000
14000
14000

Sent to
Whole
Seller
0
28000
0
28000
0
28000
0
28000
0
28000
0
28000
0
28000
0
28000
0
28000
0
28000
0
28000
0
28000

Inventory
(Package)
14000
0
14000
0
14000
0
14000
0
14000
0
14000
0
14000
0
14000
0
14000
0
14000
0
14000
0
14000
0

Chart of Inventory Product in Plant

50000
45000
40000
35000
30000
Product Inventory in Plant Location

25000
20000
15000

Inventory (Package)
Sent to Whole Seller
Production

10000
5000
0

Time (week)

Figure Error! No text of specified style in document..10 Product Inventory Curve

8.1.4

Product Distribution
The anti-termite product that has been packaged in plastic bags and boxed furthemore

send to step for distribustion to consumen. In this step of this product distribution will be
explained how a time and distribution tool of anti-termite product as produce from factory.
Components which will be explained in this section in order to run well there are store location,
factory location, kind of transportation for distribution, and time from that anti-termite product to
reach the store.
8.1.4.1 Distributing Product Location
Consumen target for the anti-termite product is consumen that have termites problems
and usually buy this kind of solution for housing problems. This consumen segmentation is
more in town area or big city in Indonesia. In big city, distribution process and information
delivery is faster from place to another place, so this distribution of product can be easier.

Product market of anti-termite product focused on java island that is Jabodetabek

( Jakarta, Bogor, Depok, Tanggerang, dan Bekasi). It is because Jabodetabek especially Jakarta
has the biggest population in Indonesia. Beside of that, Jakarta as the capital city of Indonesia,
have big economic rate and places that are economic center. So that, this place is more potencial
to promote our anti-termite for book protector product. The most place in this region that will be
first target to our marketing of Byemite product are Jakarta region as mention above.

Table 15 Retailer and Specific Location

Region

Name of Retailer

Location
Mal Pondok Indah 1
Mal Puri Indah
Mal Grand Paragon
Panglima Polim (Jl. Panglima Polim Raya No. 73)
Pejaten (Gedung Promenade)
Permata Hijau
Pesanggrahan (Jl. Pesanggrahan Raya No. 2)
Pluit Lakeside
Radio Dalam (Jl. Radio Dalam Raya No.17)
Rawamangun (Jl. Pemuda No. 66-67)
Sunter (Jl. Danau Sunter Utara Raya Blok A No. 5-6)
Tebet Green
Cipinang Indah Mall
Gandaria City
Grand Indonesia
Kota Kasablanka
Lippo Mall Kemang
Mal Artha Gading
Mal Central Park
Pasaraya Grande
Mall of Indonesia
Bay Walk Mall
Bona Indah
Cawang (Ruko Cawang)
Cempaka Putih (Gedung C-One Plaza Lt 1-2)

Ace Hardware

Cibubur Times Square

Citra 6
Daan Mogot (Mal Matahari Puri)
Emporium Pluit Mall
Fatmawati (Jl. Fatmawati Raya No.42 Blok B1)
Grand Terrace Taman Mini

JABODETABEK

Kelapa Gading

In one day of process, it will produce 300 kg of anti-termite product that will be divided
into 2000 packages (150 grams each). Based on our judgment, process of distribution
product will be done one in a week by choose regions as a our target and pay attention
number of transportation that exist in those region. Furthermore, determined a Regions
based on the largest number of vehicles. The following table are shown regions the
largest number of vehicles and the percentage distribution.
Table 16 Percentage Distribution

Distribution of

Percentage

Product/package

(%)

Jakarta (42 store)

1400

70

II

Bogor (4 store)

100

III

Depok (3 store)

100

IV

Tangerang (7 store)

200

10

Bekasi (7 store)

200

10

2000

100

Region

Location

Total

Based on table above, we see that largest distribution is focused for Jakarta, it is because
this location have largest number of vehicle or transportation to transport the product.
The evidence for this case is high level of trafic jam on this location than other place.
Indonesian research Effort for Environment said that in 2014 the growth of motor
vehicles is 1.600-2.400 unit per day. The amount of vehicles in Jabodetabek that operates
in Jakarta reach 38,7 million units. From that we can conclude the largest number of
vehicle or transportation to transport the product is in Jakarta.

8.1.4.2

Product Distribution Chain

The final product are saved in storage then sent to consume. Anti-termite product
is distribute with packages filled in boxes. The product that have been boxed, are
distributes to wholeshaler where is expalained before with follow alternatif of
distribution.
Our region covered Jabodetabek (DKI Jakarta, Bogor, Depok, Tanggerang, and
Bekasi). Products are distribute to this region by truk box and directly sent to wholeshaler
that is PT. Polarchem located in Jl. Pluit Kacang Molek IV Blok P2 U No. 31, North
Jakarta. After that, from wholeshaler, product of anti-termite will be distributed to every
retailer which has been scheduled by the wholeshaler to that store or retail. For another
store that arent have schedule from wholeshaler, the distribution is directly from storage
of fabric after booking from the retail.

1st alternative (39.3 km) 2 Hour 2 min

Figure Error! No text of specified style in document..11 First Alternative

For the first alternative, it will go through Jakarta Inner Ring Road with distance
about 39.3 km. It is the shortest way from the Byemite plant to the wholesaler. The
transportation used for this route is land transportation that is pick-up truck.

2nd alternative (45.4 km) 1 Hour 49 min

Figure Error! No text of specified style in document..12 Second Alternative

For the second alternative, we used Jakarta Inner Ring Road and Pantura Lane,
this route is a bit further than the 1 st alternative with the 45.4 km distance. We also used
pick-up truck for transporting the product from the plant to the wholesaler.

3rd alternative (48.8 km) 1 Hour 52 min

Figure Error! No text of specified style in document..13 Third Alternative

For the last alternative, we used Jakarta Outer Ring Road to transport the product
from the plant to the wholesaler. It is the furthest way to go with 48.8 km distance. All of
these alternative can be easily pass by any kind of land transportation. So our pick-up
truck can also go by these alternatives.
From these alternatives, we can see that the shortest way to go is the 1 st alternative, but
the time is not always dependent with the distance. There are a lot of factors such as traffic jam,
accidents, natural disaster, etc. So we can say that these alternatives are a good way to transport
the product depend on the occurring situation.
8.2

Marketing
Marketing is a set of activities which are making the availability of products that can

satisfy customers and provide benefits to companies that offer such products (Sugiharto,2002).

To be able to deliver our product is necessary to adequate network marketing as an extention of

the distribution network. Marketing our products aim to introduce our products to the public,
raise awareness of our products among the public, and attract people to use Byemite product.
8.2.1

Target Setting
Target setting is made so that a more focused marketing to the market in accordance with

the excellence of our products. Our products target market is for peoples house, company or
instantion who wants to use our product, because the main selling thing from our product is the
performances.

8.2.2

Market Segmentation
Market segmentation is the division or grouping into market segments of potential

customers with similar characteristics indicating a common behavior of buyers. Market

segmentation divides the market / buyer based on geographic, demographic, psychographic, or
behavior. Four segments of this market will affect consumer demand for the product.
a. Geography Segmentation
Based on geographic segmentation, the market is divided by domicile. Our product
planned to be marketed in several big cities in Indonesia that is Jakarta, Bogor, Depok,
Tangerang, and Bekasi. The choice of location is based on the consideration that the
population is mostly be in those cities and also the level of sun exposure and humidity, so
our product is suitable with their needs.
b. Demographic Segmentation
Based on demographic segmentation, the market is divided based on age, gender, income
level, occupation, education level, religion, or race / ethnicity. Our products are made for
families, single men, single women, students, and the level of economic (income) upper
middle (for those who already have a job) and active working age (20-65 years old),
especially those who already have their own house and places for books.
c. Psychographic Segmentation

Based on market psychographic segmentation, it is divided by social class characteristics,

lifestyle, and personality. In terms of functional, our products are intended for individuals
or families with middle to upper economic levels, especially those who already have their
own house. It is based on those who already have a place of their own have a greater need
for anti-termite product for than not having a place to stay.
d. Behavior Segmentation
Based on the behavior of market segmentation, it is divided by the level of knowledge,
attitudes, and usage or their reaction to a product. Based on the level of knowledge, we
feel that there is no need to restrict consumers to a particular school level, because
awareness to use anti-termite product for book protector in their homes can be grown
through branding, sales promotion and demonstration time. After the consumers know
the benefit our product, then consumers will be loyal to our products and attract other
consumers to use our product too.

8.2.3

Marketing Mix
To establish the right strategy, so that the product gained a strong position in the market,

it is necessary to intermingling marketing (marketing mix). Marketing Mix aims to create a good
and successful in achieving company objectives and provide satisfaction to the customer.

Product
Byemite is a brand of anti-termite product for book protector with the abilities of
having pleasant smell, effectively protect books, easy to use, and dust-free ball

Place
Our products will be marketed through wholesalers in Jabodetabek region

Promotion
Promotion will be done through advertisements, brochures, website creation products,
also account setup facebook, twitter.
a. Advertisement

Promotion with advertising through print media and online advertising. Some print
media cooperation Our products are Kompas, Harian Seputar Indonesia, Tabloid
Homes, Idea Tabloid, Tabloid Hunianku, Griya Asri magazine. As for the online
advertising, promotion through the site detik.com, alibaba.com, tokobagus.com,
kaskus.co.id, Google AdSense, ad-gratis.com, tabloidrumah.com, ideaonline.com,
tabloidhunianku.com, majalahasri.com.
b. Brochure
Printing and distribution of brochures made to increase public attrackness and
awareness of the anti-termite for book protector the reasons why they need it:
pleasant smell, effectively protect books, and easy to use. Brochures should be
included in the benefits of our product for daily life and the values that they will get if
they use our product. Distribution of brochures will be carried out in strategic places
such as in shopping malls, at product exhibitions, wholesaler, and other strategic
places.
c. Website and Social Media
To provide adequate information for prospective customers, products and company
websites and social media need to be made. We know that our people daily life is so
into world wide website and social media, those all are influence admittedly quite
strong in social life, including in marketing. Website and social media like Facebook
and Twitter account is used so that consumers can continue to get the latest updates
on products and promotional activities related to the product. The website will
contains specifications, images, product benefits and advantages. Besides, this
website also contains information about the company, including company profile,
vision and mission, a contact can be reached, and also serves as a customer service,
which includes contact that can be reached when a prospective customer/consumer
wants to ask questions or make complaints.