Sunday, October 23, 2011

Buy The Value, Not The Pack

Products to be expensive because of added to the cost of packaging, advertising, and distribution. Motto is a product that erodes all that burden. The result?

Three or four years ago, PT Songo Geni Maju (SGM) may not be a catchy name to know more. But, now, people became interested and find out how to partner with this company. In fact, its competitors, if not careful, they can be swayed by the doings of this detergent manufacturer.

Why? Because SGM does not market their products like other brands. In fact, these companies do not actually do any of the brand building.
SGM is not only producing detergents, but also dish soap, floor cleaner, and more. All products output SGM given only one brand, that motto. The name is easy to remember anyone. And acceptable in almost any language.

How to market it ? Uniquely, SGM does not market its products in a conventional manner as other detergent manufacturers in general. He sold the "bulk system" aka kilogram. Not just the detergent, all liquid cleaning products he was selling in liter way.
Of course this is different, because usually toiletries outstanding products sold in containers-including, packaging refill once. Thus, consumers who will purchase comes with a carrying container respectively. If for detergent, enough with the plastic alone.

How cheap and how the quality? First for quality, SGM unequivocally states that all products are quality equivalent to the branded product or a leading brand in the market. For example, detergent powder is not inferior to Attack, then softener Molto and other equivalent. Moreover, the SGM is toiletries product manufacturers for the U.S. market, Japan, and became a partner of Unilever Indonesia.
As for price, can be up to half the price of branded products mentioned above. For comparison, in modern retail stores like Carrefour priced fairly cheap, Rinso 900 grams sold Rp 12,490, while the motto of 1 kg of detergent sold Rp 8,000 to the consumer. Of the sales price to the consumer, the dealer gets a margin of about Rp 900 per kilogram.

Goods from the SGM to be cheap because it managed to cut into two-tier distribution channels only. Namely, from manufacturers to distributors, and from distributors to dealers, the term for a retail merchant's motto. Each distributor dealers usually charge 200-500.
Then, to protect the dealers and reduce competition, the monopoly system is applied. So, everyone who wants to be dealers, the region will be surveyed. When in the area of ​​existing seller, it is advisable to look elsewhere. Because in every 300 heads of households may only have one dealer.
Who are the end-user of this bulk detergent? Apparently, very diverse. Not that cheap due to the lower middle class. But, from middle class to upper class was using it. Many dealers are located precisely in luxury estates, such as Palm d'Ivoire, City Tours, Rafflesia, and others.

Bulk sales model needs toiletries started SGM since 2006. Exactly three years after the SGM stand. It took several years to prepare, either from the system until the preparation of raw materials.
How to sell its products not just bulk only. However, the merger between multi-level marketing (MLM) and drinking water refill. MLM model is used to recruit dealers. While the refill water model is a way to distribute the product to the dealers.

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