Formulation Strategy - PT Mayora Indah Tbk.

Summary

In this presentation, Rafli provides an in-depth analysis of PT Mayora Indah Tbk., a major Indonesian food and beverage company. He outlines the company’s profile, mission, vision, and strategic approaches, including vertical and horizontal growth, related diversification, and various corporate strategies. Mayora’s global expansion, product innovation, and focus on operational efficiency are highlighted. Rafli also discusses the company’s market positioning, financial strategy, and workforce development initiatives, concluding with proposed strategies for future growth. His analysis reflects Mayora’s strong market presence and commitment to sustainability and innovation in the FMCG industry.

Takeaways

• 😀 PT Mayora Indah Tbk. is a leading Indonesian company specializing in food and beverage products, with a strong presence both domestically and internationally.
• 😀 Mayora's product portfolio includes biscuits, candies, wafers, chocolates, coffee, and health drinks, which are marketed through a robust distribution network.
• 😀 The company focuses on vertical growth by expanding its store delivery system to ensure products reach small stores and rural areas quickly.
• 😀 PT Mayora implements horizontal growth strategies by exporting products to over 100 countries, particularly in Asia, Africa, Central America, and South America.
• 😀 Related diversification has allowed PT Mayora to innovate, expanding beyond beverages into products like coffee, tea, and biscuits, catering to changing consumer trends.
• 😀 The company also focuses on corporate delay strategies, postponing factory expansions during the COVID-19 pandemic while maintaining strong sales growth in core products.
• 😀 PT Mayora has established a strong brand with products like Kopiko, which dominate global markets, especially in the coffee candy segment.
• 😀 Mayora's business units (SBU) include confectionery, coffee and tea, biscuits and wafers, and new ventures, all contributing strategically to the company's growth.
• 😀 PT Mayora utilizes a combination of financial strategies, including equity and debt financing, and has invested heavily in production capacity expansion and technological advancements.
• 😀 The company maintains a stable dividend policy, ensuring consistent returns for shareholders while investing in reinvestment and business growth.

Q & A

What is PT Mayora Indah Tbk. known for?

PT Mayora Indah Tbk. is a food and beverage company based in Jakarta, Indonesia. It produces a wide range of products, including biscuits, candy, wafers, chocolates, coffee, and health drinks, with a strong presence both domestically and internationally.

What is the company’s slogan, and what does it represent?

The slogan of PT Mayora Indah is 'Satu Lagi dari Mayora' ('One More from Mayora'). It is often used in their advertisements and represents the brand's commitment to producing high-quality products that satisfy customer needs.

What are the main business divisions of PT Mayora?

PT Mayora has six main business divisions: biscuits, candy, wafers, chocolates, coffee, and health drinks.

How has PT Mayora expanded internationally?

PT Mayora has expanded into more than 100 countries, focusing on regions such as Asia, Africa, Central America, and South America. Its coffee products, such as Kopiko, have gained significant popularity, especially in countries like the Philippines.

What is PT Mayora's vision and mission?

PT Mayora’s vision is to be a leading food and beverage company both in Indonesia and globally. Its mission includes producing high-quality, reliable food and beverage products, achieving profits above the industry average, and contributing positively to the environment and the countries it operates in.

What is the backward integration strategy used by PT Mayora?

PT Mayora utilizes backward integration by forming strategic partnerships with local suppliers to reduce its reliance on imported raw materials. This helps the company ensure a stable supply chain and reduce costs.

What are some of PT Mayora’s corporate delay strategies?

PT Mayora employs three main delay strategies: a pause strategy where it delayed new factory expansions during the COVID-19 pandemic, a 'not change' strategy that kept its operations stable, and a profit strategy focusing on high-value portfolios and global market expansion.

What is the role of the Strategic Business Units (SBUs) in PT Mayora?

PT Mayora has four main Strategic Business Units (SBUs) that focus on different product categories: Confectionery (Kopiko), Coffee and Tea (Kopiko and Tarubika), Biscuits and Wafers (Roma Kelapa), and New Ventures (such as Bank-Bank). These SBUs help diversify the company’s portfolio and support its growth both domestically and internationally.

How does PT Mayora approach competitive strategy in the market?

PT Mayora implements both first-mover and later-mover strategies. For example, it pioneered the coffee candy market with Kopiko, which now dominates 85% of the global market. Later, the company entered established markets with differentiated products like Tarubika and Bank-Bank, which offered unique flavors or lower prices compared to competitors.

What functional strategies does PT Mayora employ in terms of marketing and finance?

PT Mayora employs a combination of segmentation, targeting, and positioning strategies to reach a broad customer base across different age groups and income levels. In terms of finance, it utilizes a mix of equity and debt financing, while also investing in capacity expansion and technology to sustain growth.