Future Economists

Seeds of future prosperity lies in today's children,
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To its fullest growth,
for the greater welfare of Society.
Let's be united to remove the
poverty and corruption.


Saturday, March 09, 2013

Visiting Morin company

Last time we were visiting Morin, one of the biggest companies in Indonesia. Astaguna Wisesa,PT. was made in 1978 and founded by an entrepreneur Hadi Januar and presently the product under brand "MORIN". It has been a No.1 market leader in the Jam & Spread category. Morin is a brand that used by PT Asta Guna Wisesa, they are also known as private limited company. Morin is the brad that was came from the "Nrimo" that means receive in Javanese language.In there we were doing a field trip, at there we could studied about some of their strategies of business. We were given a chance to go inside the production process. At the first they produce a peanut butter, and it was going well then they develop it until it becomes many types of it. Until now they produce it batch.They're the leader of the jam production in that country, so it means that they monopolize the jam supply in Indonesia. Now days they also produce some of the jam to some of the country in South East Asia and some Middle East area, they also produce to Egypt to satisfying consumer needs. They distribute their product to some of the distributor in Indonesia, like : Lotte, Makro, etc. they are not sell their product directly from production place. Their Segment are people who age from kids (6years old -12 years old) to teenage(12 years old to 20 years old) and to adult (20 years old - up). They produce their product also for family use, then they also produce some of their product to be used as the filling to food, such as filling for bread, also cake, etc.What I like from this company is their production process. They don't use many machine but more on labor so it means that it also helps economy to be better by decreasing unemployment. Even tough they are doing batch production they don't want to use all 100 % machines. Some of it ( about 40 %) was produced by machine but there are 60 % is produced by human resources. if inflation happens in an Economy ( Indonesia ) they prefer more on the quality of their product than the cost but that doesn't means that they don't try to push down the price of production, in case that there was a time when a coconut milk has disappeared in market they still produced their product but with higher price but they also control the good and also the nutrition and etc, this is from what I was researching.

In the production process they also produce some of others/private labels ( other company that wanted to makes a jam with lower price) that want to also produce jam but in lower price. Private labels are those company that want to produce goods in this case jam but they can’t so they negotiate with the producers then the producer makes the composition, from their original recipe they modify the recipe and they test it to them if they don’t agree they will change it again until they agree and the price meet with the agreement, and from that moment producer produce the goods and it labels with the other company name. private-labels develop because of the price of their jam is to high.

They also has the group of consumers such as consumers type A+( very rich / always use their products ), A ( they are rich but just often buy their product), B+ ( Middle class people that used their products), and the last is B ( middle class people but usually buy their products). But for type C+ and C ( lower class people  or low income people that wanted to buy their product but they cant) they can't buy their product, so Morin gives they C+ , and C to the private labels.

There is a way of their promotion strategies, it is the combination of above and below the line. They collaborate it so they use the above the line strategies to introduce their product to market so there will be brand awareness, but for increase sell they use below the line method. They also have collaboration of leadership style, like for the marketing site they use autocratic style of leader, but in the production process as what I saw was, they use democratic style. They said that they rarely use money as the motivation to their employees; instead of using money they give them extra holiday to their employees. So their employees will not tired working, they also do some activities with their employee such as gathering, outbound, etc. it means that they give non financial reward instead of financial.

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