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Presented	
  by	
  	
  

                                                         Samuel	
  E.	
  Pranata	
  
Crea%ng	
  a	
  Great	
                                        Marke.ng	
  Director,	
  
Skin	
  Care	
  Product	
                            Martha	
  Tilaar	
  Group	
  (MTG)	
  

in	
  Indonesia	
  
Blending	
  Global	
  Best	
  Prac%ce	
  
with	
  Unique	
  Local	
  Wisdom	
  
                                                           12th	
  Asia	
  Surfactants	
  Personal	
  
                                                                      &	
  Home	
  Care	
  Markets	
  
                                                        Hilton	
  Shanghai,	
  September	
  2012	
  
The	
  Martha	
  Tilaar	
  Group	
  Experience	
  
Indonesia:	
  
                 The	
  Great	
  Skin	
  Care	
  Market	
  


The	
  Martha	
  Tilaar	
  Group	
  Experience	
  
Indonesia	
  is	
  an	
  archipelago	
  with	
  
          30.000	
  plant	
  species	
  and	
  300	
  
         ethnici5es,	
  as	
  well	
  as	
  has	
  more	
  
       than	
  	
  17.000	
  islands	
  and	
  about	
  400	
  
                         volcanoes	
  
There	
  are	
  a	
  lot	
  of	
  mountain	
  water	
  springs,	
  	
  
  hot	
  springs	
  and	
  mineral	
  water	
  springs	
  


       BIODIVERSITY	
  &	
  CULTURAL	
  RICHNESS	
  
$4500	
  
                 Exci5ng	
  Performance...	
                                                                                $3000	
  


                                                                                                               $2000	
  


                                                           Economic	
            $1000	
  
GDP	
  percapita,	
  1986-­‐2014	
  
                                                             Crisis	
  


  86   87   88   89   90    91   92    93   94   95   96    97   98   99   '01   '02   '03   '04   '05   '06   '07   '08   '09   10   11   12   13   14




                           Accelerated	
  growth	
  aYer	
  reaching	
                                     Same	
  paXern	
  
                           the	
  $3000	
  per	
  capita	
  GDP	
  level	
  
The	
  7th	
  Biggest	
  Economy	
  in	
  2050...	
  




                                               #22	
  




              #7	
  
Middle	
  class	
  has	
  become	
  majority	
  popula5on	
  with	
  131	
  million,	
  	
  
Exci5ng	
  Performance...	
   	
  million	
  per	
  annum	
  
                              growing	
  7




                                  25%	
  	
                       56.5%       	
  	
  
                                      1999	
                       2010	
  


                               Source:	
  WorldBank,	
  BPS	
  


                                                                                           Source:	
  	
  Nielsen	
  
Jakarta:	
  The	
  city	
  with	
  68	
  (+14)	
  malls	
  
  The	
  biggest	
  number	
  in	
  the	
  world	
  	
  
As	
  the	
  economy	
  and	
  middle	
  class	
  are	
  growing,	
  	
  
               looking	
  good	
  is	
  also	
  a	
  trend	
  




                                 YTD	
  Growth*	
  

                                    14%	
  
                               Higher	
  than	
  food	
  



       *Nielsen,	
  2011	
  
Beauty	
  &	
  Personal	
  Care	
  Industry	
  

  Total	
  market	
  size	
  U$	
  3	
  billion	
  
  Predicted	
  	
  cosme%c	
  product	
  	
  in	
  2012	
  will	
  
   grow	
  16.9%.	
  Average	
  growth	
  of	
  cosme%c	
  in	
  
   Indonesia	
  around	
  13-­‐	
  15%	
  a	
  year	
  
  Skin	
  care	
  category	
  contributes	
  30%	
  of	
  the	
  
   market	
  
  Back	
  to	
  nature	
  concept	
  drives	
  the	
  product	
  
   with	
  natural	
  ingredients	
  
  The	
  trend	
  of	
  metrosexuality	
  starts	
  to	
  grow	
  
Skin	
  Care	
  Market	
  in	
  Indonesia	
  
  Total	
  Market	
  Size	
  U$	
  950	
  million	
  
  Prominent	
  	
  skin	
  care	
  products	
  are	
  s%ll	
  
   whitening	
  and	
  an%	
  aging	
  categories	
  
  Big	
  players	
  are	
  Unilever,	
  P&G,	
  L'Oreal,	
  
   and	
  local	
  company	
  such	
  as	
  Martha	
  
   Tilaar	
  Group	
  
Martha	
  Tilaar	
  Group	
  
Unique	
  Approach	
  and	
  Strategy	
  

   The	
  Martha	
  Tilaar	
  Group	
  Experience	
  	
  	
  
Martha	
  Tilaar	
  Group:	
  At	
  Glance	
  
  Established	
  in	
  1970	
  
  The	
  largest	
  local	
  beauty	
  companies	
  in	
  
   Indonesia	
  
  Integrated	
  opera%ons	
  from:	
  organic	
  
   planta%on,	
  manufacturing,	
  distribu%on,	
  
   retail	
  shop,	
  salon	
  &	
  spa	
  chain	
  and	
  
   beauty	
  school	
  
  Produce	
  10	
  brands	
  consis%ng	
  of	
  skin	
  
   care,	
  color	
  cosme%cs,	
  hair	
  care,	
  body	
  
   care	
  and	
  herbal	
  products	
  
 Umbrella	
  Brand	
  Values	
  

                        1.	
  Holis%c	
  Eastern	
  Beauty*	
  
                        2.	
  Sustainable	
  Nature	
  
                        3.	
  Exo%c	
  Innova%on	
  
                        4.	
  Women	
  Inspira%on	
  
                        5.	
  Responsible	
  Ci%zenship	
  
*Rupasampat	
  wahyabiantara:	
  inner	
  &	
  outer	
  beauty	
  
Flower	
  
             Palmyra	
  Palm	
                     Rupasampat	
  Wahyabiantara	
  
                                                         The	
  Total	
  Beauty	
  Concept	
  

zither	
  
                                                         The	
  concept	
  of	
  Rupasampat	
  
                                                               Wahyabiantara	
  was	
  
                                                          explored	
  from	
  the	
  myths,	
  
                                                         ancient	
  history,	
  folklore	
  and	
  
                                            tasbih	
        understanding	
  of	
  the	
  
                                                            Wahyang	
  philosophy.          	
  



                                                         Beauty	
  is	
  a	
  reflec%on	
  of	
  the	
  
                                                         harmony	
  of	
  both	
  inner	
  and	
  
                                                         outer	
  and	
  also	
  among	
  mind,	
  
                                       lotus	
  
                                                                   body,	
  and	
  soul.
                                                                                       	
  
Product	
  Development	
  
Principles	
  

“Local	
  Wisdom	
  Go	
  Global”	
  

  Natural	
  Ingredients	
  
  Indigenous	
  Knowledge	
  &	
  Recipes	
  
  Based	
  on	
  the	
  Cycle	
  of	
  Life	
  
  Holis5c	
  (Inner	
  &	
  Outer)	
  Approach	
  
   for	
  Op%mum	
  Result	
  
  Scien5fic	
  Approach	
  &	
  Technology	
  
   Implementa%on	
  
  Efficacy	
  Proven	
  
  Environmental	
  Friendly	
  
Four	
  generic	
  Strategies	
  to	
  Beat	
  the	
  Giant	
  


                                                            Local	
  Challenger	
                     Na5onal	
  Champion	
  
Ownership	
  of	
  Local	
  Advantages	
  

                                             High	
  
                                                              Selec%vely	
  aiack	
                   Beat	
  the	
  giant	
  through	
  
                                                           the	
  giant’s	
  weaknesses	
              local	
  differen5a5on	
  




                                                             Die-­‐Hard	
  Flanker	
                       Global	
  Chaser	
  
                                             Low	
  




                                                               Flank	
  and	
  create	
                  Strive	
  to	
  achieve	
  
                                                               their	
  own	
  pond	
                  global	
  best	
  prac%ces	
  



                                                                         Low	
                                        High	
  

                                                                    Capability	
  to	
  Catch-­‐up	
  Global	
  Fron5er	
  
                                                                     (Financial,	
  Technology,	
  Management,	
  etc.)	
  
The	
  Sariayu	
  Pu.h	
  Langsat	
  Story	
  
                       Glocaliza.on	
  MaTers	
  


The	
  Martha	
  Tilaar	
  Group	
  Experience	
  
Sariayu	
  Pu%h	
  Langsat	
  
      A	
  Case	
  Study	
  	
  
Indonesian Whitening
……………
Like Victoria ?
Like Jolie with Sexy Lips?
Flawless skin as Zi Yi?
Sariayu	
  Pu%h	
  Langsat	
  
                                     Background	
  

  Skin	
  of	
  eastern	
  people	
  (incl.	
  Indonesia)	
  is	
  different	
  from	
  
   western	
  people	
  
  	
  Need	
  a	
  whitening	
  product	
  that	
  suitable	
  for	
  eastern	
  people.	
  
   Light	
  and	
  bright	
  without	
  changing	
  skin	
  character	
  
  Come	
  into	
  Pu%h	
  Langsat	
  Concept;	
  Pu5h	
  means	
  white,	
  
   Langsat	
  is	
  fruit	
  as	
  an	
  iden%ty	
  or	
  character	
  of	
  Indonesian	
  skin	
  
Sariayu	
  Pu%h	
  Langsat	
  
                            Background	
  

  Pu%h	
  langsat	
  is	
  the	
  lightening	
  concept	
  that	
  is	
  
   developed	
  met	
  to	
  Indonesian	
  skin	
  (eastern	
  
   whitening	
  concept)	
  
  	
  Establish	
  new	
  whitening	
  concept	
  to	
  differen%ate	
  
   from	
  the	
  exis%ng	
  one	
  by	
  using	
  natural	
  ingredient	
  
   “Langsat”	
  (Lansium	
  domes.cum)	
  
  	
  Using	
  cultural	
  approach	
  that	
  is	
  approved	
  by	
  ethno	
  
   pharmacology,	
  in	
  vitro	
  and	
  clinical	
  study	
  
Etno	
  pharmacology	
  Study	
  
  Ethnicity	
  of	
  Dayak,	
  in	
  province	
  of	
  
   Kalimantan	
  (South	
  &	
  Middle),	
  
   culturally	
  and	
  historically	
  used	
  
   “Bedak	
  Dingin”	
  (cooling	
  powder)	
  
  They	
  used	
  bedak	
  dingin	
  everyday	
  to	
  
   keep	
  their	
  skin	
  health	
  and	
  beauty	
  
  Their	
  skin	
  looked	
  light	
  and	
  bright	
  
   that	
  was	
  different	
  from	
  other	
  
   ethnici%es	
  
  Bedak	
  dingin	
  (cooling	
  powder)	
  
   contains	
  Langsat	
  fruit	
  (Lansium	
  
   domes.cum)	
  
In	
  Vitro	
  Study	
  
    Sample	
         Concentra5on	
       DPPH	
  Scavenging	
      Inhibi5on	
  Rate	
  
                         (%)	
              Ac5vity	
  (%)	
       against	
  Tyrosinase	
  
                                                                      ac5vity	
  (%)	
  

   Lansium	
                2	
                   33.9	
                    30.4	
  
  Phylanthus	
              2	
                   78.6	
                    34.1	
  
  Lansium	
  +	
            2	
                   92.4	
                    30.8	
  
  Phylanthus	
  


  Langsat	
  (Lansium)	
  can	
  inhibit	
  melanin	
  synthesis	
  
  	
  Langsat	
  extract	
  has	
  an%oxidant	
  ac%vity	
  
  Combina%on	
  of	
  langsat	
  (lansium)	
  and	
  phylantus	
  has	
  higher	
  
   an%xodant	
  ac%vity	
  compared	
  to	
  a	
  single	
  plant	
  	
  
Clinical	
  Study	
  
                                                                                                              Clinical	
  Study	
  
                                                                                       Sariayu	
  Pu5h	
  Langsat	
  Moisturizer	
  
                                                                                     Sariayu	
  Moisturizer	
  &	
  Lightening	
  
                                                                                         Skin	
   Pu%h	
  Langsat	
  Moisturizer	
  
                                                                                           Skin	
  Moisturizing	
  &	
  Lightening	
  
                                                                  Clinical	
  Test	
  Result:	
  
                                                                  -­‐	
  79%	
  subjects	
  showed	
  improvement	
  in	
  skin	
  moisturizing	
  ater	
  2	
  hours	
  
                                                                  -­‐	
  75%	
  subjects	
  showed	
  improvement	
  in	
  skin	
  lightening	
  ater	
  2	
  weeks	
  
                                                                  -  83%	
  subjects	
  showed	
  improvement	
  in	
  skin	
  lightening	
  ater	
  4	
  weeks	
  

                                                                                                                                                                            *
Improvement	
  toward	
  base	
  line	
  (unit)	
  




                                                                                                                                                 *
                                                                                                                           *




                                                      *	
  =	
  sta%s%cally	
  significant	
  at	
  p	
  <	
  0.05	
  
Clinical	
  Study	
  
                            Patent	
  
            Sariayu	
  Pu5h	
  Langsat	
  Moisturizer	
  
Gain	
  Patent	
  of	
  new	
  efficacy	
  Lightening	
  
              Skin	
  Moisturizer	
  &	
   of	
  Indonesian	
  plants	
  
Clinical	
  Study	
  
      Publica%ons/Seminars	
  
       Sariayu	
  Pu5h	
  Langsat	
  Moisturizer	
  
        The	
  research	
  has	
  b&	
  Lightening	
  
              Skin	
  Moisturizer	
   een	
  presented	
  
in	
  many	
  scien%fic	
  seminars	
  and	
  conferences	
  
Clinical	
  Study	
  
       Sales	
  Performance	
  
    Sariayu	
  Pu5h	
  Langsat	
  Moisturizer	
  
      Skin	
  Moisturizer	
  &	
  Lightening	
  
Launched	
  in	
  2007,	
  Sariayu	
  Pu%h	
  Langsat	
  
     has	
  experienced	
  a	
  robust	
  growth	
  
Develop
Natural concept   Technology
                               products

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Creating a Great Skin Care Product in Indonesia

  • 1. Presented  by     Samuel  E.  Pranata   Crea%ng  a  Great   Marke.ng  Director,   Skin  Care  Product   Martha  Tilaar  Group  (MTG)   in  Indonesia   Blending  Global  Best  Prac%ce   with  Unique  Local  Wisdom   12th  Asia  Surfactants  Personal   &  Home  Care  Markets   Hilton  Shanghai,  September  2012   The  Martha  Tilaar  Group  Experience  
  • 2. Indonesia:   The  Great  Skin  Care  Market   The  Martha  Tilaar  Group  Experience  
  • 3. Indonesia  is  an  archipelago  with   30.000  plant  species  and  300   ethnici5es,  as  well  as  has  more   than    17.000  islands  and  about  400   volcanoes   There  are  a  lot  of  mountain  water  springs,     hot  springs  and  mineral  water  springs   BIODIVERSITY  &  CULTURAL  RICHNESS  
  • 4. $4500   Exci5ng  Performance...   $3000   $2000   Economic   $1000   GDP  percapita,  1986-­‐2014   Crisis   86 87 88 89 90 91 92 93 94 95 96 97 98 99 '01 '02 '03 '04 '05 '06 '07 '08 '09 10 11 12 13 14 Accelerated  growth  aYer  reaching   Same  paXern   the  $3000  per  capita  GDP  level  
  • 5. The  7th  Biggest  Economy  in  2050...   #22   #7  
  • 6. Middle  class  has  become  majority  popula5on  with  131  million,     Exci5ng  Performance...    million  per  annum   growing  7 25%     56.5%     1999   2010   Source:  WorldBank,  BPS   Source:    Nielsen  
  • 7. Jakarta:  The  city  with  68  (+14)  malls   The  biggest  number  in  the  world    
  • 8. As  the  economy  and  middle  class  are  growing,     looking  good  is  also  a  trend   YTD  Growth*   14%   Higher  than  food   *Nielsen,  2011  
  • 9. Beauty  &  Personal  Care  Industry     Total  market  size  U$  3  billion     Predicted    cosme%c  product    in  2012  will   grow  16.9%.  Average  growth  of  cosme%c  in   Indonesia  around  13-­‐  15%  a  year     Skin  care  category  contributes  30%  of  the   market     Back  to  nature  concept  drives  the  product   with  natural  ingredients     The  trend  of  metrosexuality  starts  to  grow  
  • 10. Skin  Care  Market  in  Indonesia     Total  Market  Size  U$  950  million     Prominent    skin  care  products  are  s%ll   whitening  and  an%  aging  categories     Big  players  are  Unilever,  P&G,  L'Oreal,   and  local  company  such  as  Martha   Tilaar  Group  
  • 11. Martha  Tilaar  Group   Unique  Approach  and  Strategy   The  Martha  Tilaar  Group  Experience      
  • 12. Martha  Tilaar  Group:  At  Glance     Established  in  1970     The  largest  local  beauty  companies  in   Indonesia     Integrated  opera%ons  from:  organic   planta%on,  manufacturing,  distribu%on,   retail  shop,  salon  &  spa  chain  and   beauty  school     Produce  10  brands  consis%ng  of  skin   care,  color  cosme%cs,  hair  care,  body   care  and  herbal  products  
  • 13.  Umbrella  Brand  Values   1.  Holis%c  Eastern  Beauty*   2.  Sustainable  Nature   3.  Exo%c  Innova%on   4.  Women  Inspira%on   5.  Responsible  Ci%zenship   *Rupasampat  wahyabiantara:  inner  &  outer  beauty  
  • 14. Flower   Palmyra  Palm   Rupasampat  Wahyabiantara   The  Total  Beauty  Concept   zither   The  concept  of  Rupasampat   Wahyabiantara  was   explored  from  the  myths,   ancient  history,  folklore  and   tasbih   understanding  of  the   Wahyang  philosophy.   Beauty  is  a  reflec%on  of  the   harmony  of  both  inner  and   outer  and  also  among  mind,   lotus   body,  and  soul.  
  • 15. Product  Development   Principles   “Local  Wisdom  Go  Global”     Natural  Ingredients     Indigenous  Knowledge  &  Recipes     Based  on  the  Cycle  of  Life     Holis5c  (Inner  &  Outer)  Approach   for  Op%mum  Result     Scien5fic  Approach  &  Technology   Implementa%on     Efficacy  Proven     Environmental  Friendly  
  • 16. Four  generic  Strategies  to  Beat  the  Giant   Local  Challenger   Na5onal  Champion   Ownership  of  Local  Advantages   High   Selec%vely  aiack   Beat  the  giant  through   the  giant’s  weaknesses   local  differen5a5on   Die-­‐Hard  Flanker   Global  Chaser   Low   Flank  and  create   Strive  to  achieve   their  own  pond   global  best  prac%ces   Low   High   Capability  to  Catch-­‐up  Global  Fron5er   (Financial,  Technology,  Management,  etc.)  
  • 17. The  Sariayu  Pu.h  Langsat  Story   Glocaliza.on  MaTers   The  Martha  Tilaar  Group  Experience  
  • 18. Sariayu  Pu%h  Langsat   A  Case  Study    
  • 21. Like Jolie with Sexy Lips?
  • 23. Sariayu  Pu%h  Langsat   Background     Skin  of  eastern  people  (incl.  Indonesia)  is  different  from   western  people      Need  a  whitening  product  that  suitable  for  eastern  people.   Light  and  bright  without  changing  skin  character     Come  into  Pu%h  Langsat  Concept;  Pu5h  means  white,   Langsat  is  fruit  as  an  iden%ty  or  character  of  Indonesian  skin  
  • 24. Sariayu  Pu%h  Langsat   Background     Pu%h  langsat  is  the  lightening  concept  that  is   developed  met  to  Indonesian  skin  (eastern   whitening  concept)      Establish  new  whitening  concept  to  differen%ate   from  the  exis%ng  one  by  using  natural  ingredient   “Langsat”  (Lansium  domes.cum)      Using  cultural  approach  that  is  approved  by  ethno   pharmacology,  in  vitro  and  clinical  study  
  • 25. Etno  pharmacology  Study     Ethnicity  of  Dayak,  in  province  of   Kalimantan  (South  &  Middle),   culturally  and  historically  used   “Bedak  Dingin”  (cooling  powder)     They  used  bedak  dingin  everyday  to   keep  their  skin  health  and  beauty     Their  skin  looked  light  and  bright   that  was  different  from  other   ethnici%es     Bedak  dingin  (cooling  powder)   contains  Langsat  fruit  (Lansium   domes.cum)  
  • 26. In  Vitro  Study   Sample   Concentra5on   DPPH  Scavenging   Inhibi5on  Rate   (%)   Ac5vity  (%)   against  Tyrosinase   ac5vity  (%)   Lansium   2   33.9   30.4   Phylanthus   2   78.6   34.1   Lansium  +   2   92.4   30.8   Phylanthus     Langsat  (Lansium)  can  inhibit  melanin  synthesis      Langsat  extract  has  an%oxidant  ac%vity     Combina%on  of  langsat  (lansium)  and  phylantus  has  higher   an%xodant  ac%vity  compared  to  a  single  plant    
  • 27. Clinical  Study   Clinical  Study   Sariayu  Pu5h  Langsat  Moisturizer   Sariayu  Moisturizer  &  Lightening   Skin   Pu%h  Langsat  Moisturizer   Skin  Moisturizing  &  Lightening   Clinical  Test  Result:   -­‐  79%  subjects  showed  improvement  in  skin  moisturizing  ater  2  hours   -­‐  75%  subjects  showed  improvement  in  skin  lightening  ater  2  weeks   -  83%  subjects  showed  improvement  in  skin  lightening  ater  4  weeks   * Improvement  toward  base  line  (unit)   * * *  =  sta%s%cally  significant  at  p  <  0.05  
  • 28. Clinical  Study   Patent   Sariayu  Pu5h  Langsat  Moisturizer   Gain  Patent  of  new  efficacy  Lightening   Skin  Moisturizer  &   of  Indonesian  plants  
  • 29. Clinical  Study   Publica%ons/Seminars   Sariayu  Pu5h  Langsat  Moisturizer   The  research  has  b&  Lightening   Skin  Moisturizer   een  presented   in  many  scien%fic  seminars  and  conferences  
  • 30. Clinical  Study   Sales  Performance   Sariayu  Pu5h  Langsat  Moisturizer   Skin  Moisturizer  &  Lightening   Launched  in  2007,  Sariayu  Pu%h  Langsat   has  experienced  a  robust  growth  
  • 31. Develop Natural concept Technology products