bBUSINESS

o r nPLAN
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TA B L E O F C O N T E N T
TABLE OF CONTENT
EXECUTIVE SUMMARY
CHAPTER 1 COMPANY PROFILE 9
1.1
Company Outline 10
1.2
Company Background 11
1.3

Company Philosophy, Vision, Missions, and Value

1.4

Company Management

12

1.4.1
Organization Structure 13
1.4.2
List of Salaries 14
1.5
Advisory Board 15
CHAPTER 2 MARKET ANALYSIS 17
2.1
Industry Analysis 18
2.2
Market Survey Analysis 18
2.2.1
Questionnaire 19
2.2.2
Observations 23
2.2.3
Interviews 24
2.2.4
Focus Discussion Group 26
2.3
Market Trend 28
2.4
Competition Condition 30
CHAPTER 3 TARGET MARKET AND POSITIONING STATEMENTS

33

3.1
Target Market 34
3.2
Positioning Statements 34
3.2.1
Brand Positioning 34
3.2.2
Products Positioning 35
CHAPTER 4 PRODUCTS 37
4.1
Deer River Clothes 38
4.1.1
Materials 38
4.1.2
Cooperation 39
4.1.3
Variants 39
4.1.4
Size 40
4.1.5
Levels of Product 40
4.1.6
Packaging 40
4.2
Deer River Bags 41
4.2.1
Materials 41
4.2.2
Cooperation 42
4.2.3
Variants 42
4.2.4
Size 42
4.2.5
Levels of Product 42
4.2.6
Packaging 43

TA B L E O F C O N T E N T
4.3
Deer River Pouch 43
4.3.1
Materials 44
4.3.2
Cooperation 44
4.3.3
Variants 44
4.3.4
Size 45
4.3.5
Levels of Product 45
4.4

Current Stage of Products Development

45

CHAPTER 5 MARKET SIZE 47

5.1
Top-Down Analysis 48
5.2
Bottom-Up Analysis (Most Likely) 49
5.3
Reachable Market 51
CHAPTER 6 MARKETING STRATEGY 55
6.1
Brand Summary 56
6.2
Tagline and Campaign 57
6.3
Internal Launch Plan 57
6.4
Price 58
6.5
Place 58
6.6
Promotion 60
6.6.1
Above The Line 60
6.6.2
Below The Line 60
6.6.3
Endorsement and Brand Ambassador 64
6.6.4
Printed Commercials 65
6.6.5
Personal Selling 65
6.6.6
Sales Force 65
CHAPTER 7 OPERATION 67
7.1
Supply Chain 68
7.2
List of Vendors 71
7.3
Production Timeline 75
7.4
Operation Timeline 77
7.5
Reorder Policy 78
7.6
Inventory Management 79
CHAPTER 8 FINANCIAL PLAN 81
8.1
Assumption 82
8.2
Product Details 82
8.3
Use of Funds (Loan Estimation) 82
8.3.1
Production Expenses 83
8.3.2
Operation Expenses 83
8.3.3
Marketing Expenses 83

TA B L E O F C O N T E N T
8.4
Sales Forecast 84
8.5
Income Statement 86
8.6
Balance Sheet 88
8.7
Statement of Cash Flow 89
8.8
Cash Flow Ratio 91
8.9
Initial Investment 92
8.10
Breakeven Analysis 93
8.11
Financial Projection 93
APPENDIX A
JOB DESCRIPTION 94
APPENDIX B
QUESTIONNAIRE DATA 101
APPENDIX C POTENTIAL AND PROSPECTIVE BUYERS

108

APPENDIX D
ARTICLE 114
APPENDIX E
MARKETING PLAN TIMELINE 117
APPENDIX F
QUALITY CONTROL 119
APPENDIX G
INVENTORY STOCK 121
APPENDIX H PROFORMA INCOME STATEMENT PESSIMISTIC PROJECTION

123

APPENDIX I PROFORMA INCOME STATEMENT - OPTIMISTIC PROJECTION

126

E X E CU T I V E S U M M A RY
Borneo was established on 30 th August 2012 and it consists of 20 employees who
have the same shares in the company. Our vision is to be a company who delivers
practical and fashionable world for traveling. We prioritize practicality, organic
materials and Indonesian ethnic patterns usage, customer relationship building,
and problem solving. We want to encourage fashionable people to do traveling,
and and travel people to become fashionable through our brand, which is DEER
RIVER.
Combining two fully different segments to create a new brand has become an
opportunity today. Besides, the passengers growth of both domestic and international flight has increased significantly in the last 7 years. It shows that there
is an opportunity in this segment. Based on our observation, this segment needs
products that can be practical and fashionable for their lifestyle. People in this
segment also want to use Indonesian ethnic, but their demand is is hardly provided in the market. Therefore, it can be concluded that people want to do fashionable-traveling with the pride of Indonesian.
Borneo delivers three products, which are Deer River Shirt, Deer River Bag, and
Deer River Pouch. Deer River Shirt is a shirt using organic materials made in
Indonesia, which is Ramie and Tencel. Deer River Bag is a bag using Tenun-Ikat
as the value added in its design. It has variants of travelling bagpack, standard
bagpack, and sling bag, which all of them are completed with shoes compartment, laptop compartment, and other practical compartments. Deer River Pouch
is a pouch using both Tenun Ikat and glow-in the dark fabric as the value added.
The pouch is completed with headset compartment, mirror, and other practical
compartments.
We are going to offer the products to both male and female with middle-high
income and age ranging from 15 to 40 years old. The customers are those who
appreciate Indonesian ethnic value and who are proud to use good-quality products in the aspects of material, comfort, and function. We will approach them by
following their behavior, who aware of todays trend, active in fashion forums and
social media, and love to travel.

We are optimist that our target market will buy our products due to three factors:
special material, good quality, and inexpensive products, and worth it price compared to the material used. First, our special material is organic material and the
quality has been internationally proved. It fits todays trend and gives more benefits than non-organic material. Moreover, we innovate by using Tenun-Ikat and
glow-in-the-dark fabrics, which is rare in fashion industry. Second, we prioritize
quality by understanding high quality control on every production step. Last but
not least is our price. Compared to other brands, we have the most reasonable
price that is worth it regarding to the material used.
In order to promote our products and brand, we are going to do personal selling
and online sales, join events, and use endorsement. We focus on online selling
because it is low-cost, more effective and efficient. The growth of social media
and internet usage has been proven to boost growth of start-up businesses. This
strategy also supports our value which is using organic material (green business).
We need IDR 35,257,000 as our initial investment to start up the business. The
loan will be used for the first-batch of production expenses, marketing expenses,
and operation expenses. From this loan we have estimated to generate sales revenue of IDR 211,293,000 and profit of IDR 56126,044 in 4.5 months. The payback
period will be in 121 days. All the profit will be used for Community Service Responsibility.

CHAPTER 1
Company Profile

1 .1 CO MPA NY O UTL I N E

Company Name
Date of Establishment
Head Office

: Borneo Company
: August 30, 2012
: Tutorial Class 2B
2nd Floor, School of Business and Management
Institut Teknologi Bandung
Jalan Ganesha 10 Bandung 40135, West Java ,
Indonesia

Contact
Email
:
Phone / BB PIN
:
Twitter :
Website :
Total Employees
:

borneo.ina@gmail.com and deriver@borneo.com

082121252137 / 2A5FE9E0
@DeerRiverID
www.deeriver.com
20
Borneo Company is owned by 20 persons who also role as the
companys employees. Each employee has the same share in
Borneo Company.

The logo of Borneo Company is formed by the boat figure and the word

BORNEO. The boat shows our journey in attaining one destination by crossing the
obstacles that are depicted by the waves below the boat figure. The sails are used
to direct our way in adhering market trend and market demand, also to preserve
the companys stability by maximizing the performances of the 3 (three) divisions
in Borneo Company. The white color shows the companys flexibility in fitting the
market, while the blue color shows the elegancy and professionalism of Borneo
Company

10

1 .2 COM PA NY B AC KGRO U N D

Borneo Company was established in purpose of fulfilling the project of Integrated

Business Experience lecture from School of Business and Management ITB. Established on
31st August 2012, Borneo Company is going to run the business for approximately 4 (four)
months, standing under the guidance of the best business school in Indonesia, School of
Business and Management Institut Teknologi Bandung.

As a newbie, Borneo Company is going to bring something new yet different to the

market by combining the two trending majors that are travel and fashion. Borneo Company
is going to persuade travelers to do fashion, likewise in reverse, fashion people to do traveling. It concludes that Borneo Company is going to run the business in the aspect of lifestyle,
which can also still fulfill market demands.

Beside of the fascinating business concept, Borneo Company also has an incredible

human resource for example, some of Borneo Company members have had some experiences in joining business competitions. This can be very helping for Borneo Company in fleshing
out the companys performance, therefore hopefully Borneo Company can become the best
company of the Integrated Business Experience project at the end of the lecture and has a
well-known brand which is Deer River.

11

1 .3 CO MPA NY P H I LO S O P H Y , V I S I O N ,
MI SSI ON, A ND VA LU E

PHILOSOPHY
Philosophically, Borneo consists of two words that are born and neo.
Born means brought into existence, while neo means recent or new. It
brings Borneo Company to the whole meaning of creating and providing
something new to the market.

VISSION
A company which delivers a practical fashionable world of traveling

MISSIONS

To furnish products of travel which are compatible with market trend

and demands.

To furnish practical and fashionable products of travel at once.

To mold peoples perspective that traveling has to bepractical and

fashionable.

VALUE
Borneo Company prioritizes practicality and using organic materials, Indonesian
ethnic patterns, building customer relationship, and solving problems.

12

1 .4 COM PA NY MA N AGE M E N T
1.4.1 Organization Structure

CHIEF EXECUTIVE
OFFICER
Mustafid Aufar
CORPORATE
SECRETARIES
Adellia Debyane Lontoh
Reza Marta Fawzy

CHIEF MARKETING
OFFICER
Arief Syakur Sutedjo

CHIEF FINANCE OFFICER

Maria Rara Irihana
Samosir

CREATIVE DESIGN
Indahtyas Winasis

ACCOUNTING
MANAGER
Resti Ayuningtyas

EVENT MANAGER
Sabila Maharani

FINANCIAL
MANAGER
Ivana Liliani S.

EXTERNAL
AFFAIRS
Vincya Tunggadevi

CHIEF OPERATION
OFFICER
Ajianto Puspoyo

INVENTORY
Rizky Rahmany

PRODUCTION
Salman
Sutrisno
Sweeta Elfonsia
LOGISTICS &
LEGALIZATION
Arizal Khoironi
Elisa Ermasari

INTERNET SALES
MANAGER
Amelia Adani
Hamid
SALES MANAGER
Astrid Wina
Lestari
Ratih Ayudyaputri

13

1.4.2 List of Salaries

The table below shows the amount of salary distributed to each employee. The salary of each
employee is considered by the companys level of management.

SALARY LIST OF BORNEO COMPANY

Chief Executive Officer

Mustafid Aufar

IDR 750,000

Chief Marketing Officer

Arief Syakur Sutedjo

IDR 500,000

Chief Finance Officer

Maria Rara Irihana Samosir

IDR 500,000

Chief Operation Officer

Ajianto Puspoyo

IDR 500,000

Reza Marta Fawzy

IDR 250,000

Adellia Debyane Lontoh

IDR 250,000

Creative Design

Indahtyas Winasis

IDR 250,000

Event Manager

Sabila Maharani

IDR 250,000

External Affairs

Vincya Tunggadevi

IDR 250,000

Internet Sales Manager

Amellia Adani Hamid

IDR 250,000

Astrid Wina Lestari

IDR 250,000

Ratih Ayudyaputri

IDR 250,000

Accounting Manager

Resti Ayuningtyas

IDR 250,000

Financial Manager

Ivana Liliani S.

IDR 250,000

Inventory

Rizky Rahmany

IDR 250,000

Arizal Khoironi

IDR 250,000

Elisa Ermasari

IDR 250,000

Salman

IDR 250,000

Sutrisno

IDR 250,000

Sweeta Elfonsia Tutupary

IDR 250,000

Corporate Secretaries

Sales Manager

Logistics & Legalization

Production

The ex p os u re of each e mployees j ob d esc r i pti on can be seen on the A PPE N D I X A

14

1 .5 A DV I SOR Y B OA RD
Borneo Company has done some consultations for the Integrated Business Experience project, either with the lecturers, tutors, or even expertise.

SBM ITB L ect ure rs

Ir. Leo Aldianto, MBA, MSC
Patricia Salquero
SBM ITB Tutors
Agustina Ciptarahayu
Raden Bayuningrat
Tita Januardi Subandi
Arief W. Kautsar
Isti Raafaldini Mirzanti
Advis o rs
Nur Adam Ahmad Kurniawan

(Major of Medicine - University of Trisakti)

Radityo Susilo Dwiatmojo

(Major of Marketing - Prasetya Mulya

Business School)

Nara Mahendra

(Major of Material Engineering - Institut

Teknologi Bandung)

Miftah

(Major of Product Design - Institut

Teknologi Bandung)

Christy Team

(Major of Visual Communication Design Institut Teknologi Bandung)

Harist Team

(Major of Microbiology - Institut Teknologi

Bandung)

Muhammad Ilham

(Major of Computer System Institut

Teknologi Telkom)

Mohammad Hamzah
Dwi Putra

(Owner SAGE)

Hendra Araji

(Professional Bag Designer)

Sutera Travel

Travel Agent

15

CHAPTER 2
Market Analysis

17

2.1 INDU STR Y A NA LY S I S

Based on our research, fashion is one of the fastest growing markets in Indonesia. A lot of local
brands were appearing with their products, but merely a few of them able to sustain for a long
period of time. We know what happened to them is not because of the great amount of competitors, except for they did not have a great vision and objective in creating their products. Most
of them merely appeared as the followers and sold the same old products as the pioneers. If
we take a look at the pioneers of local brands in Indonesia such as UNKL 347, Mischief,
Massa Jeans, and Peter Says Denim, they were the ones who firstly brought the products
into the market, or the pioneers.
According to this, we could say that they have a strong objective of which the objective is to
bring this business model to Indonesia by introducing the new unknown products to the market.
However, if we create the same products with them, we have to set up ourselves with another
strong vision and objective because people tend to more trusting those pioneers than the new
comers in the same market.

2.2 MAR K ET SUR V EY A N A LY S I S

Here are shown below the examples of unfashionable products the same as ours :

Travel bag

Shirts

18

Pouch

2.2.1 Questionnaire
Here are shown below, the results that Borneo Company got from the questionnaire
distribution :

RESPONDENTS PROFILE

Respondents Job
7%

Sex

0%
10%

Entrepreneur

Male

Civil Officer

40%
60%

Private Officer

83%

Female

Student

3%
3%

Domisile

Age

5%

15 - 20

27%

21 - 25

12%

Jakarta

8%

26 - 30
31 - 35

77%

65%

more than 35

Revenue
17%

less than IDR 1,000,000

16%

IDR 1,000,000 - 1,800,000

More than IDR 1,800,000

67%

19

Bandung
Other

DEER RIVER CLOTHES ( MENS WEAR )

Model
0%

48%

Cutting
0%

Long arm

Slim Fit

43%

Short arm

52%

57%

Regular Fit

Others

Other

Color
10%

Pattern
Original
Needed

28%

33%

Nature

72%

57%

Not Needed

Pastel

Favorable Pattern
15%

3%

Navajo

16%

10%

Price

Scandinavian

17%

IDR 310K - 400K

Animals

15%

IDR 401K - 500K

Tenun Ikat

15%
21%

8%

80%

Floral
Houndstooth
Other

Willingness to Buy
23%

Yes

No

77%

20

IDR 280K - 300K

more than IDR 500K

DEER RIVER CLOTHES ( WOMENS WEAR )

Where to Buy

Grayscale

Special Store

21%
53%

8%
18%

8%

Online Shop

22%

28%

13%

12%

Basic
Nature

Trade Center

12%

35%

32%

Pastel

25%

Favorable Pattern
5%

Color

3%

3%

3%

5%

Price
IDR 200K - 300K

12%

Navajo

Other

IDR 301K - 400K

Scandinavian

IDR 401K - 500K

Animals

82%

Tenun Ikat

Willingness to Buy
Yes
28%

72%

21

No

More than IDR 500K

DEER RIVER BAGS

Model

Color
Traveling Backpack

25%
22%

Basic
Nature

Standard Backpack

42%

Price

5%

Grayscale

30%

Sling Bag

53%

8%

18%

10%

Pastel

Willingness to buy
IDR 300K - 399K

25%

IDR 400K - 499K

Yes

IDR 500K - 599K

87%

75%

more than IDR 600K

No

DEER RIVER POUCH

Size

Color
Grayscale

A5

33%

Basic

45%

Nature

22%

Price
0%
18%

Favorable Pattern
IDR 80K - 100K
101K - 150K
IDR 151K - 200K

82%

Pastel

10%

B5

more than 200K

13%
17%
13%
22%

15%

Navajo
Scandinavian
Animals
Tenun Ikat

10%

10%

Willingness to buy
Yes

30%
70%

No

The deta il about t h e col le ct ion data of q u esti on n ai re, can be seen on APPE N D I X B

22

2.2.2 Observations
In marketing survey analysis, we used observation method to research further about market
directly to the current situation. The observations that Borneo Company has already done can
be seen below :

LOOKATS Market Observation

On 14th 16th September 2012, we observed an event held in Bandung, which is LOOKATSMarket 2012. Most of the tenants presented local brands as well as Pop Meets Pop, Skelly,
and less than a year brand such as Aquamarine. However, there was also an international
brand which is Daniel Wellington. From the observation, we found that nowadays people
tend to dressed formally; it can be seen on the tenants whose products were sold quickly
and what the visitors wore. Most of the visitors wore t-shirt or shirt with formal shoes, and
most ladies wore flannel shirts with collar. The price range for shirt at LOOKATSMarket was
Rp200,000 - Rp450,000. There was also one tenant which attracted most people all around;
they provided an interesting attraction which showed people the process of making dualsided artwork, and they succeeded attracting most people.

Website Survey : Secondary Data Competitor, Trend Price, and Competitor Data
Borneo Company also used website as the source of secondary data; this approach is needed
to know further about the companys competitors and market trend. The competitor data is
one of the most important aspects to produce our products; we could set a standard that at
least the same as our competitors and provide what other competitors could not do. Borneo
Company could also see the price range for the same type of products. Therefore we would
not be under price or over price. Trend is also one of the most important aspects that producer should see what the market needs and wants. Beside of questionnaire, we have also done
a web serving of the international trend that will probably become Indonesians trend. The
psydechellic, army, and floral patterns will become trend in 2013. As a company that provides
travel products, Borneo Company has also searched some data that could have shown us the
number of flights and passengers over the past few years. The data showed that for the past
few years there are significant increase of flights and passengers; it showed that nowadays
people are more mobile than that they used to. This increased number might become the opportunity to enter the market.

23

Airport Observation
On September, Borneo Company went to Soekarno-Hatta International Airport in Cengkareng, Jakarta to do some observations. We went there because of the purpose to see the
customers behaviors that are related to our concept, which is fashion traveling. As our main
target market is travelers, therefore we could have found a lot of travelers in the airport.
Here are the results of Borneo Companys observation to Soekarno-Hatta Airport :

We found youngster people use fashionable clothes when they travel.

Youngsters use practical gears and apparels that will help them in traveling.

We found some of peoples behavior when they travel such as what kind of bag the
travelers mostly use, what activities that they usually do, etc.)

Plaza Indonesia and Grand Indonesia Observation

Borneo Company also went to some malls in Jakarta such as Grand Indonesia, Plaza Indonesia, and Pacific Place. In those malls, we observed some stores that sell fashion items and
traveling items. We went there to observe the companys target market that usually buy their
things and needs in the mall. Also, we want to know our competitor and market condition.
Here are the results of Borneo Companys observation to the malls :

The trends of todays fashion are printed shirt, parkas, vintage bags, etc.

The price of our competitors products

The variety ways of famous brands promoting their products

The Goods Dept. is becoming the place of local brand selling their products

2.2.3 Interviews
Borneo Company has interviewed some expertise in fashion and design to improve the insights and consideration in developing brands and products. Below are shown four experts
that we have interviewed during IBE I :
Kacis Nikko (Owner of Seagull Jeans)
This interview took place at Kresna on September 2012. The reason why we interviewed him is
because of his fame in local brands. Fashion activists in Bandung and Jakarta adore Seagull
Jeans as the first local jeans brand using cone-mills fabric imported directly from United
States.
Borneo Company interviewed Kacis Nikko about local and general fashion brand condition,
also the future forecast in fashion.

24

Here are the results of Borneo Companys interview with Kacis Nikko :

The future fashion trend might be related to casual formal garments.

The future pattern trends might be camouflage, geometrical, and floral.

The future color trend might be close to dark colors.

Nowadays, market is becoming more critical about brands. They demand for strong

identity, visionary vision, and strong simple design.

Araji (Designer & Marketing Consultant)
This interview took place in Bestik Demang at Jalan Dipati Ukur on October 2012. The reason
why we interviewed him is because of his expertise in marketing and design that is widely
trusted by Siete, Inksomnia, and many other brands. He has already been active in fashion
as he was ever been UNKL 347 employee when it was just established. Therefore, Borneo
Company put a trust on him about the development of local brands in Bandung. What we were
talking mostly was about the marketing strategy that can challenge in local market.

Here are the results of Borneo Companys interview with Araji :

The insight about the markets big difference between Jakarta and Bandung.

The educational value in selling products, is one of the added values that has
been trending currently.

To establish a sustainable brand, it must be started with the brand identity.

The bag designs that can be made as reference for Deer River Bag product will
be Herschel and Postman Bag.

Kacis Nikko (Owner of Seagull Jeans)

This interview took place at Kresna on September 2012. The reason why we interviewed him is
because of his fame in local brands. Fashion activists in Bandung and Jakarta adore Seagull
Jeans as the first local jeans brand using cone-mills fabric imported directly from United
States.
Borneo Company interviewed Kacis Nikko about local and general fashion brand condition,
also the future forecast in fashion.
Here are the results of Borneo Companys interview with Hamzah Dwi Putra :

The insight about ramie fiber.

The copywriting and digital medias are the primary marketing kit on the internetbased brand.

The insight about Gyakusou Nike that correlates fashion and running which inspires
us.

25

2.2.4 Focus Discussion Group

During IBE 1, Borneo Company has done focus discussion group twice, before and after the
products are made. Below are shown the descriptions and results of Borneo Companys focus
discussion group:
Before The Products are Made
This focus discussion group took place in Menteng on September 2012. These are the participants who joined the focus discussion group before the products are made :

Hamzah Dwi Putra

Nur Adam Achmad Kurniawan

Radityo Susilo Dwiatmojo

Arief Syakur Sutedjo

Mustafid Aufar

Reza Marta Fawzy

Vincya Tunggadevi

Ivana Liliani Sugih

Sweeta Elfonsia Tutupary

Sutrisno

Amellia Adani Hamid

Ajianto Puspoyo

Salman

Maria Rara Irihana Samosir

Arizal Khoironi

This focus discussion group was participated by three people outside Borneo Company. They
happen to be the expertise and market representatives in order to introduce us directly to
the market condition. Hence, Borneo Company members mind got opened about the outside
reality.

Here are the results of Borneo Companys focus discussion group 1 :

Todays short-lasting local brands are caused by the lacking of vision and pur
poses of creating the brands.

The internet-based brand is happened to be trending now, and people tend to
find their curiosity through the internet.

The products must bring a clear purpose and give out the experience (core
value) to customers, hence the products will not merely be the trend in a short
period of time.

Nowadays, marketing trend is pulling marketing strategy, instead of pushing or
forcing marketing strategy.

26

After Products are Made

This focus discussion group took place in SBM ITB on November 2012. The participants were:

Thomas Teguh

Ivan Gurhananda

Pradito Hananda

Alif Aviano Syailendra

Ramadhan Satrio

Try Juandha

Arief Syakur Sutedjo

This focus discussion group was mostly participated from people outside Borneo Company.
The purpose of this focus discussion group was to compare Borneo Companys marketing mix
with the actual market demand. Therefore, Borneo Company can adjust the marketing mix
that has been made, with the current reality.

Here are the results of Borneo Companys focus discussion group 2 :

The construction and details of the bag should be more sophisticated.
The price of each product are already suitable to the market except for the ramie shirts
that should be around IDR 200k.
The patterns that are used on the products should be renewed; they worry that the patterns will not be trending next year.
They suggested J. Crew and Uniqlo as the references for the shirts construction.
Tencel blouse has already been acceptable with all of its marketing mix.
Borneo Companys products promotion must be emphasized in the uniqueness of the fabric used.
Tenun Ikat can give the educational value for the customers in promotion.
The bag should be tested in certain weight capacity due to its traveling purpose. Borneo
Company should also put on the hangtag on the bag, explaining that the product has already been tested.
The strap of bags should be strengthened for making it more comfortable due to traveling
purpose.
The traveling bag size and the tenun ikat must be then again considered due to the constriction of possible target market.

27

2 .3 MAR K ET TR E ND

Nowadays, the trend of traveling is growing fast.

The passengers growth of international flight in Indonesia increased 21% from

2003 to 2010 (4,281,049 to 9,465,611).

The passengers growth of domestic flight in Indonesia increased 31% from

2003 to 2010 (21,171,281 to 48,872,363).

Rising revenue of a travel agent (Sutera Tour)

2010
Revenue

2011

16 billions

18 billions

2012 (up to May)

15 billions (still
growing)

T he appearance of the independent traveling communities and bloggers

Travel Junkie Indonesia, Indonesia Travel Bloggers, Get Lost in Indonesia,
Kaskus Traveling Community, @infopendaki twitter account

Combining two fully different segments to create a new brand has be

come an opportunity today.

Nike Gyakusou Running gear has successfully encouraged runners to run

in a fashionable way and fashion activists to go running (proof: Running thread
on Darahkubiru.com).

Vintage design construction and patterned fabric has become todays

trend.

Vintage design of fashion has become a trend again today. It can be seen through
the vintage brands that go trending again today, such as Herschel vintage bag
design, Jansport vintage bag design, and Gitman Brothers vintage shirt con
structions.

Continuous pattern is also todays trend and it is still going to be sustainable

until next year. The Navajo and Scandinavian patterns are the trends in most of
fashion brands. Several fashion websites forecast that camouflage, floral, and
geometrical pattern are what next year is going to be.

camouflage

Geometrical
28

Floral

Specific Market Trend

Deer River Clothes

Travelers need comfortable and fashionable garments when they travel.The clothes that they
suppose to bring when they travel are clothes that cover :

Strong material

Great endurance

Comfortable to wear

Indeed, fashion people do care very much about the design of their clothes, while todays
traveling garment does not match with the trend of fashion most people tend to follow. Thus,
here we are to solve the problem with a product that provides and serves fashionable design
and comfortable fabric of garments at once.
Deer River Bags
Travelers need a bag that has a great endurance yet fashionable design, that is able to organize travellers stuffs and keep them save from the outside circumstance. The bag design also
has to be well considered as the vintage design and pattern are trending today, considering
fashion people tend to look for the bag design. Hence, the travelers will need a bag that is :

Well designed

Well organized

Endurably well made from a good quality of fabric.

Deer River Pouch

When people travel, some small goods have to be put together inside a smaller bag (pocket)
before it is put inside the bigger bag or luggage. They need this kind of pocket, so their small
goods are not dispersed, it would even be much better if those small goods organized well
inside the pocket, therefore those goods can be taken practically. People also need something
to light up the pouch in the dark, so they will not find difficulty when taking out their goods. As
usual, the design of this pouch will also attract market to buy. Therefore, they need a pouch
which covers :

Glow in the dark material

Unique design

Well organized

Based on our observation, this small kind of pocket has never become the center of attention
in the market. However, many famous brands (Kipling, Fossil, etc.) have been selling pouches;
they use the opportunity of impulsive circumstances when market has already trusted their
brands. People tend to be impulsive toward this kind of products; hence this product usually
does not come up as the primary product of a company instead of being the secondary product.

29

2 .4 COM PE TI TI O N CO N D I T I O N
Below are the competition conditions of Borneo Companys respective products that have
been researched. In this competition condition, Borneo Company was trying to find gaps that
the competitors have not filled yet, and is able to be filled by Borneo Companys products.
Here are the results of Borneo Companys competition condition research:

Deer River Clothes ( Mens Wear )

Borneo Companys mens wear product compared to Kainikat.com and Bluesville :

kainikat.com

Bluesville

Product

- Specialized for oldster

- No trendy design

- the construction has

the happening
construction
- use natural dye

Place

Website

Website and Events

Price

IDR 545,000

IDR 650,000

Promotion

Website

Fashion Forum

Conclusion
There are few of qualified ramie clothes that are quite affordable for middle class, and there
is no ramie shirt that uses printed design while printed shirt becomes very trendy today. The
using of ramie for clothes is never been purposed for traveling whereas ramies strengths are
totally fit to traveling. Hence, this becomes Borneo Companys opportunities to fill in those
gaps with Deer River Clothes that is rich in strengths.

Deer River Clothes ( Womens Wear )

Borneo Companys womens wear product compared to Dash Hemp and Marks&Spencer :

Dash Hemp

Mark & Spencer

- Older Design
- Lack of tencel usage
on clothes, mostly for
sleep wears

Product

Older Design

Place

Only sold in web and

abroad

Only sold in stores

Price

IDR 600K - 800K

IDR 300K - 500K

Promotion

Website

Word of mouth about

their credibility for the
olders

30

Conclusion
There is still lack of competitors in Indonesia who use tencel as the material for clothes.
Competitors who use this fabric mostly targeted their products for older generation. The
price for tencel clothes is also high due to the older target market. This becomes Borneo
Companys opportunity to introduce the full benefit of natural fabric to young generation by
lowing the price from the market standard. Thus, Borneo Company is going to bring out this
product with the supportive traveling theme to fill the gaps.

Deer River Bags

Borneo Companys bags product compared to Jansport, Eiger, and Deuter :
Jansport

Eiger

Deuter

Product

- Trending design
- High quality fabric

- Not trending design

- Superior quality
fabric

- Sporty design
- High quality fabric

Place

- No Jansport stores
- Hitchhike on other

Only sold in Eiger

stores

There are no Deuter

stores in Indonesia, so
Deuter bags are hardly
to find

Price

IDR 450K - 899K++

IDR 200K - 600K++

IDR 500K - 900K++

Promotion

Conclusion

Word of mouth about

Word of mouth about their superior quality
their trending design
among other local
brands

Word of mouth about

their trusted credibility

There is only a few amount of traveling bags that has fashionable designs. Most of traveling
bags we found in the market merely prioritize to the extent of function and the endurance by
the quality of fabric used. Up to now, we have found no traveling bags that provide market
both fashionable design and the capability to load travelers needs when they travel. Those
are the gaps that Borneo Company took as an opportunity for Deer River Bags.

Deer River Pouch

Borneo Companys pouch product compared to Strawberry, Kipling, and Khakikakiku :
Strawberry

Kipling

Khakikakiku

Product

- Bad patterned
plastic

- Printed polyester
material
-Lightweight fabric

Knitted polyester
material

Place

Only sold in stores

Only sold in stores

Sold on Facebook and

stores

Price

IDR 9K - 30K

IDR 100K - 300K

IDR 90K

Promotion

Conclusion

Word of mouth about

Word of mouth about
its cheap price to
their credibility
fulfill daily needs

Facebook, Tumblr,
Twitter

It was found that there is no travel pouch that has a glow in the dark feature, mirror, headset,
and mobile charger facility to roll with affordable places, wide range of promotion, and places
to get. Hence, Borneo Company is going to fill these gaps with Deer River Pouch.

31

CHAPTER 3
Target Market and Positioning Statement

33

3 .1 TARG E T MA R K E T
Fashionable Experience and Knowledge Seekers
Borneo Companys target market is both genders that like to seek experience and
knowledge through traveling, and also prioritize the trend of fashion. The exposure
of target market will be explained further in top-down analysis.

3 .2 POSI TI O NI NG STAT E M E N T S
First of all, Borneo Company has a brand positioning in purpose of creating a wellknown and accepted brand in the market.

3.2.1 Brand Positioning

A brand must have a positioning due to competitive condition in the market. Therefore, Borneo Company has been striving to possess a strong and unique brand positioning using a method by Marty Neumeier.
What?

The only travel brand

How?

Gives encouragement to learn comfortably, practically, and

fashionably through traveling

Who?

Fashionable experience and knowledge seekers

Where?

Indonesia

Why?

Those who thirst of a new experience and knowledge

The only travel brand that gives encouragement to learn comfortably, practically, and fashionably through traveling for fashionable experience and knowledge
seekers mostly in Indonesia, who thirst of a new experience and knowledge.
Source : The Onliness Statement Method Developed by Marty Neumeier, ZAG

However, the brand positioning would not be able to stand by itself without any existence of the product positioning that would support the brand positioning. Borneo
Companys products have different purpose respectively in solving target markets
problems. Therefore, each product also needs its own positioning which will be using the Audience Benefit Compelling (ABC) method.

34

3.2.2 Products Positioning

Deer River Clothes ( Mens Wear )

The only ramie shirt that is targeted to fashionable experience and knowledge
seekers, that gives target market its natural strengths wherever they travel to,
this ramie shirt is specialized with the sophisticated details that most other ramie
shirts do not care about.

Deer River Clothes ( Womens Wear )

The only tencel shirt that is targeted to fashionable experience and knowledge
seekers, that gives target market its natural strengths wherever they travel to, this
tencel shirt is specialized with the varieties of the trending printed patterns.

Deer River Bags

The only travel bags whose target is fashionable experience and knowledge seekers, that gives target market an ethnic education and sense of being fashionable
wherever they travel to, this bag is specialized with the uniqueness of genuine

tenun ikat .

Deer River Pouch

The only travel pouch that is targeted to fashionable experience and knowledge
seekers, that gives target market practical features (mirror, roll for gadget chargers, handset, and useful compartments) attached to the pouch fro target markets
important goods, this travel pouch is specialized with glow in the dark fabric that
helps target market in finding the goods in the dark.
We have listed both potential and prospective buyers of Borneo Company, that can be seen
on APPENDIX C

35

CHAPTER 4
Products

37

Borneo Company has created 3 (three) innovative products which are :

1.

Deer River Clothes

2.

Deer River Bags

3.

Deer River Pouch

The products specification will be explained respectively below.

4 .1 DEE R R I V E R C LOT H E S

Womens Wear

Mens Wear

4.1.1 Materials
In purpose to produce a good quality of clothes, Borneo Company has selected several best materials. Here is the exposure of Deer River Clothes materials :
Mens Wear
Ramie is a fiber made from natural plants; this fiber is well known as the second best natural
fabric after silk. Moreover, ramie has already been well developed in other countries because
of its incredible strengths. Most countries develop this fiber for military needs considering the
strengths that are really compatible for it. What ramie fiber has fulfilled in military proved that
its strengths could be also compatible for traveling. Ironically, it has not been well developed in
Indonesia whereas ramie plants are more fertile in tropical area.

The strengths of ramie fabric contain:

Humid resistant

Heat resistant

Antibacterial

Strong material

Ecofriendly

Sweat absorbing

Keep dye well

38

Womens Wear

Tencel is a fiber made by cellulose in wood pulp which is harvested from tree-farmed trees that
were found on land that is unsuitable for food crops. Cellulose is a natural polymer that makes
up the living cells of all vegetation.
The strengths of tencel fabric contain:
Natural

Color rich. It has a high absorbency and can be dyed to a high quality standard.

Comfortable. It is soft, breathable, and lightweight.

Lasting. It is shrink resistant, durable, and is a strong fiber, both wet and dry.

Easy to maintain. It is easy to pack, wrinkles resistant, and quickly dry. Most are machine
washable, although different garment constructions may have specific cleaning requirements.

Economic usage

Biodegradable

4.1.2 Cooperation
Borneo Company has had a corporate cooperation with Major of Textile Skill Design Institut
Teknologi Bandung for the clothes material and Major of Visual Communication Design Institut
Teknologi Bandung for the clothes pattern designs, labeling, and product packaging.

4.1.3 Variants
Deer River Clothes has 4 (four) variants :
1.

Original-Printed Shirt

2.

Printed-Dyed Shirt

3.

Dyed Shirt

4.

Tencel Blouse

There are 6 (six) main printed patterns made

for Deer River Clothes, which are animals, geometrical, navajo, floral, camouflage, scandinavian, and houndstooth. There is also the limited
edition pattern on Christmas.

39

4.1.4 Size
Deer River Clothes will be available in 4 (four) sizes as shown below :

4.1.5 Levels of Product

These are the core, actual, and augmented product of Deer River Clothes :
DEER RIVER CLOTHES
Core

Give out a comfortable and confident sense either in daily

activities or traveling
A high quality traveling brand of ramie shirts for mens

Actual

wear and tencel blouse for womens wear, designed with

todays trending patterns (animals, geometrical, navajo,
floral, and Christmas as the limited edition pattern)

Augmented

Several types of colors and models

Flexible payment (preorder gets 50% prepaid

payment)

Available for online, delivery, and direct order

4.1.6 Packaging

Front Side

Back Side

40

Inside Look

4 .2 DE E R R I V ER B AGS
Deer River Bags are fashionable travel bags which are completely suitable for travelers, featured with laptop bag, shoes slot, dirty clothes space, and bag raincover. This product is made
by cordura which is very light and comfortable to use.

4.2.1 Materials
In purpose to produce a good quality of bags, Borneo Company has selected several best materials. Here is the exposure of Deer River Bags materials :

Tenun Ikat

Cordura

Cordura

Borneo Company is going to use 1000 deniers of cordura because it has small knit and internationally used for standard bag.

Leather

Borneo Company is going to use genuine leather from Garut for some detail parts, and pick
the best quality brown leather to be served to customers. The leather is going to be used as
the material of the held and labelling.

Suede

Borneo Company is going to use suede for the material of bag base, and pick the best quality
brown suede from Garut to be served to customers.

Tenun Ikat

Borneo Company is going to use the traditional tenun ikat from Nusa Tenggara Barat, and
match the pattern and color with the cordura color used.

Thin Pattern Polyester Canvas

Borneo Company is going to use pattern canvas for the inside part of the bag.

Water Proof Polyester

Borneo Company is going to use water proof polyester for the bag raincover.

41

4.2.2 Cooperation
Borneo Company has had a corporate cooperation with Major of Visual Communication Design
Institut Teknologi Bandung for the bags labelling and product packaging.

4.2.3 Variants

Traveling Bag

Standard Backpack

Laptop Bag

Sling Bag

Deer River Bags are also available in several colors for each variant of bags, which are navy
blue, red wine, and stone.

4.2.4 Size
These are the specific size for each variant of Deer River Bags :
Traveling Bag

: 46 cm x 51 cm

Standard Backpack : 42 cm x 51 cm
Sling Bag

: 38 cm x 46 cm

4.2.5 Levels of Product

These are the core, actual, and augmented product of Deer River Bags :

DEER RIVER BAGS

Give out a practical traveling to fit all the stuffs organized
Core

properly in one bag which is also stylish and

fashionable.

Actual

- Fashionable bag with unique design and tenun ikat pattern

- A balanced price with quality
- Several colors (navy blue, red wine, and stone)

Augmented

- Flexible payment (cash and transfer)

- Available for online, delivery, and direct order

42

4.2.6 Packaging

4 .3 DE E R R I V ER P O U C H
Fashionable pouch made by qualified fabric, suede, mirror, charger rolls, headset rolls, and
glow-in-the-dark material. The glow in the dark material is used to marking the pouch in the
dark, so it will be easy to find any stuff inside the pouch. Fashionable pouch made by qualified fabric, mirror, charger rolls, headset rolls, and glow-in-the-dark material. The glow in
the dark material is used to marking the pouch in the dark, so it will be easy to find any stuff
inside the pouch.
Button
Deer River Logo
Mirror
Zipper
Net pocket

Sketch of Inside Look

Zipper
Headset Pocket
glow in the dark
Small Pocket
Gadget Pocket
Gadget Pocket

Holder

Sketch of Outside Look

Glow in the dark

Deer River Logo

Canvas Fabric

43

4.3.1 Materials

Glow in The Dark

Borneo Company is going to use planel fabric which is syringed by phospor liquid. In the dark,
the fabric will glow with its green light.

Tenun Ikat

Borneo Company is going to use the traditional tenun ikat from Nusa Tenggara Barat, and
match the pattern and color with the cordura color.

Mirror

Borneo Company is going to use mirror that will be put on the inside of Deer River Pouch.

Pattern Canvas

Borneo Company is going to use pattern canvas as the material of the outside part of Deer
River Pouch.

Glow in The Dark

4.3.2 Cooperation
Borneo Company has had corporate cooperation with Major of Material Engineering Institut
Teknologi Bandung for controlling the process of phosphor spraying on fabric, Major of Textike Skill Design for the pouchs material, and Major of Visual Communication Design for the
pouchs pattern designs, labelling, and product packaging.

4.3.3 Variants
Deer River Pouch has 3 (three) variants in its patterns which are geometrical, navajo, and
abstract patterns.

Geometrical

44

4.3.4 Size
The size of Deer River Pouch is the size of A5 paper (15 cm x 10.5 cm).

4.3.5 Levels of Product

These are the core, actual, and augmented product of Deer River Pouch :

DEER RIVER POUCH

Core

Give out a practical traveling with an innovative pouch

- Fashionable pouch with unique design
- Classy and vintage sense with genuine suede material and

Actual

glow in the dark fabric

- Equipped with mirror
- A systematic place to organize messy stuffs
- Several types of colors

Augmented - Flexible payment (cash and transfer)

- Available for online, delivery, and direct order

4 .4 C UR R E NT STAGE O F P RO D U CT S D E V E LO PMEN T
1. Deer River clothes are in the process of revising the first prototype due to the
construction detailing and sizing
2. Deer River bag is in the process of revising the first prototype due to the
construction detailing and sizing
3. Deer River Pouch is in the process of creating prototype

45

CHAPTER 5
Market Size

47

5.1 TOP D OW N A NA LY S I S

DEER RIVER TOP DOWN

ANALYSIS

TA R G E T
M A R KET

Demographic :
- Male & Female
- 15 40 years old
- Student, Executive,
Creative Entrepreneur
- Middle-High class
- Urban people

Behavior :
- Follow todays trend
- Know well about brands
- High capability in buying
- Active in fashion forum,
read
fashion magazines
- Love to travel

Psychographic :
- Appreciate local
ethnic values and
traveling insights
- Get the pride
beneath function
- Prioritize comfort

POTENTIAL MARKET
17,451,682 people who live in urban area of Jakarta and West Java with the range of age
17 40
years old

REACHABLE MARKET
39,409 people from chosen majors in the chosen universities, chosen schools and chosen
communities in Bandung and Jakarta.

Jakarta
: 15 40 years old, Urban = 1,826,213
West Java : 15 40 years old, Urban = 5,103,327
Source: www.bps.go.id
www.darahkubiru.com
www.twitter.com

48

5 .2 BOT TOM -UP A NA LY S I S ( M O S T - L I K E LY )

Numbers

Bottom-Up of Deer River Clothes

(Men's Wear)
50
45
40
35
30
25
20
15
10
5
0

Decembe
r

January

February

March

April

Online Sales

Personal Selling

19

21

23

23

21

Events

10

10

19

Numbers

Specific Sales of Deer River

Clothes (Men's Wear)
50
45
40
35
30
25
20
15
10
5
0

December

January

February

March

April

Original-Printed

10

10

11

Dyed

10

11

15

15

19

Printed-Dyed

13

13

15

Total Sales of Deer River Clothes (Mens Wear) : 168 items

Bottom-Up of Deer River Clothes

(Women's Wear)
60

Numbers

50
40
30
20
10
0

December

January

February

March

Online Sales

April
8

Personal Selling

20

20

20

20

20

Events

18

21

28

Total Sales of Deer River Clothes (Womens Wear) : 204 items

49

Bottom-Up of Deer River Bags

70
60
Numbers

50
40
30
20
10
0

December

January

February

March

Online Sales

April
5

Personal Selling

20

30

30

30

30

Events

24

24

28

Specific Sales of Deer River Bags

70
60
Numbers

50
40
30
20
10
0

December

January

February

March

April

Traveling

12

Messenger

13

22

22

22

Standard

15

19

32

32

29

Total Sales of Deer River Bags : 240 items

Bottom-Up of Deer River Pouch

80
70
Numbers

60
50
40
30
20
10
0

December

January

February

March

April

Online Sales

Personal Selling

25

25

25

25

25

Events

30

30

37

Total Sales of Deer River Pouch : 249 items

50

5 .3 R EAC H A B L E M A RK E T
DEER RIVER REACHABLE
MARKET
The reachable market that Borneo Company has observed is shown on the table below :
Bandung University Students
Institution

Faculty
Faculty of Law

2248

Faculty of Social Science and

Politics

3280

Faculty of Communicative Science

3600

Faculty of Management

1080

Faculty of Accounting

800

Faculty of Social Science and

Politics

540

Study of Development

320

Faculty of Law

1200

Faculty of Business Administration

900

School of Business and

Numbers

Management
Management of Industrial
Engineering

560

668

Jakarta University Students
Institution

Faculty

All faculties

2000

Faculty of Economics

3000

Faculty of Social Science and

Politics

UniversItas Indonesia

Numbers

4800

Faculty of Law

2000

Faculty of Medicine

1000

Faculty of Law

1350

Faculty of Dentist

800

51

Jakarta Senior High School Students

School

Numbers

Labschool Senior High School of Rawamangun

660

Labschool Senior High School of Kebayoran

600

Central Al-Azhar Senior High School

360

Al-Izhar Senior High School

354

State of Senior High School 6 Jakarta

600

State of Senior High School 70 Jakarta

1200

State of Senior High School 8 Jakarta

1200

Forum
Name of Forum

Numbers

Darahkubiru

8800

Indonesian Backpacker Community in Bandung

1392

Indonesian Backpacker Community in Jakarta

8806

Indonesian Traveler Community

309

Indonesian Backpacker and Traveler Community (Footstep)

382

Moslem Backpacker Community

600

52

CHAPTER 6
Marketing Strategy

55

6 .1 BR A ND SUMM A RY

Borneo Company has a brand with an intense objective, which creates different experience
with other local brands nowadays. We named our brand as Deer River; this brand has an
objective of encouraging two segments to experience each other in reverse. In this term, the
two segments are travel and fashion. Thus, through our educational campaign, we are going
to encourage fashion people to go traveling and travelers to go on an adventure in a fashionable way. In the campaign, our products come up as the fashionable gears that fashion people
likely to use and what travelers need for.

Fashion
Interest

Encourages

Travel
Interest

Take an example of Gyakusou Nike who also has two segments which are sport and fashion,
and both have already successfully implemented this method of combination to the market.

56

6 .2 TAG L I NE A ND CA M PA I GN
Tagline
Deer River has a tagline which is

Be Mature with Nature.

Explanation of Tagline and Campaign
Deer River is a brand that has a tagline, Be Mature with Nature. This brand concept intends
to encourage people to have the natural way of learning yet sophisticated which we called
traveling. We believe that traveling is one of the best ways to learn about living with nature.
Nature has millions of knowledge while nature and environment that we see, hear, and touch,
shall teach us to be a better human being. With our products, hopefully people can grow and
develop into a more mature human being through traveling to keep abreast of the fashion
trends.

6 .3 INTER NE T L A U N C H P L A N
Employees Uniform

Male

Female

The concept of Borneo Companys campaign is Sail the Equator. Therefore, the employees
uniform is customized with Borneo Companys theme and designed as the picture that shown
above. The male uniform will be associated as a Russian sailor, while the female uniform will
be made more formal to create an elegant look. The male uniform has more characters in
order to create the dashing impression. The blue-sea color is taken from our theme color and
the blue-marine hat is made for both male and female to emphasize the sailing concept.

57

6.4 PRI C E
Deer River Clothes
Deer River Original-Printed Ramie

: IDR 259,000

Deer River Printed&DyedRamie

: IDR 399,000

Deer River Dyed Ramie

: IDR 325,000

Deer River Tencel Shirt

: IDR 250,000

Deer River Bags

Deer River Traveling Bag

: IDR 435,000

Deer River Standard Backpack

: IDR 298,000

Deer River Sling Bag

: IDR 375,000

Deer River Pouch

Pouch : IDR 84,000

6.5 PLAC E
In choosing places, Borneo Companys marketing strategy does not only aim for sales. We also
consider free cost places to grow the brand awareness. There are three places that were selected as the primary places where we are going to have sales activity and branding activities.
The places are website, Boulevard ITB, and Kresna SBM-ITB.

Website
Borneo Companys website also provides the online order system. Therefore, our website will
be one of the places where there transactions will occur. The reason why we provide the online
ordering system is because the trend of online shopping is increasing now, and we want to use
that opportunity to gain our sales.

58

Boulevard ITB
Borneo Company selected this free cost place as one of our place strategy in a purpose of
introducing our brand to ITB students. By opening a stand at Boulevard ITB, Borneo Company
aims to grow the brand awareness in ITB. Therefore, sales are not the main purpose in opening
Deer River Stand at Boulevard instead of the brand awareness in ITB.

Kresna SBM-ITB
Kresna SBM-ITB is a free cost place where SBM students pass by everyday because of its place
in front of SBM main gate. We admit that most of our products will not be bought compulsively
here. However, Borneo Company has another aim to increase brand awareness and introduction of our brands to SBM civitas.

59

6 .6 PR O MOTI O N
The promotion that Borneo Company going to do is divided into two groups, which are above
the line and below the Line.

6.6.1 Above The Line

Media selection is one of our advertising strategies; the objective of this strategy is to reach
our target market. Then, we will use the selected medias that support our brand and products
to promote it.
We considered the media based on several things, start from the cost of the advertising, profile
of the reader, until the appropriation with our brand positioning whether it would build a good
image of our brand and products or not. Thus, we choose some medias that appropriate with
our theme, and we hope that they can deliver the value contained in our brand and products.

Magazine

Borneo Company is going to use the magazines such as Go Girl, Cosmo Girl, NYLON, and NYLON GUYS because we think the readers of those magazines are really appropriate with our
target market.

6.6.2 Below The Line

Creative Writing
Based on the FGD and interview with Hamzah, we found that copy writing is a primary promotional kit in promoting our products. Market will be adored with creative writing about story
behind our products. Therefore, we are going to make paragraphs for each product and our
brand, then the creative writing will be placed in hangtags, booth decoration, website, and our
social medias.
The writing or article that we took as an example can be seen on APPENDIX D.

60

Campaign Video
This video will take place in travel place in Indonesia (probably the same as where the photo
shoot takes place). There will be one person wearing our products while traveling, and emphasizing the video about learning through travelling.

Photo Shoot
Based on the research, that digital media is becoming a trend of promoting now, hence we
decided to do the photo shoot strategy. This photo shoot will be divided into two types of photo
shoot, one is studio photo shoot in purpose of showing our products details and quality, and
the other one is traveling photo shoot which will take place on the beach somewhere between
Seribu Islands, Karimun Jawa, or Bali. We want to promote our products with the beauty of
traveling places. Therefore, this will be very helpful for our campaign.

Blackberry Messenger (BBM)

Five million people in Indonesia use Blackberry smartphone. From the fact, we conclude that
we can use Blackberry Messenger to make our customer easier to reach us. On the Blackberry
Messenger, we can also create a group which contains the Deer River products. The Blackberry Messenger will also be used as the customer service where customers can order here. We
put the Blackberry PIN and phone number on social electronic & printed medias and product
packaging to facilitate our customers in ordering the products.

Instagram
Instagram is the current trend of social media where the users can access and upload pictures
from their phones, in a practical way, yet get a maximum result. We utilize this media as the
media campaign, so our customer can view the picture collections of our products and events
that we attend. On the bio data page, we also put the information about the contact that can be
reached if the customer wants to give complain, suggestion, or even buy the products.

Twitter
Twitter has been a very popular social media nowadays. Twitter users have no limit of ages, so
most of our target market is basically on twitter. Indonesia is the fifth largest users of twitter
in the world; there are almost twenty million people in Indonesia use twitter, and being active
there.
Many businesses involve twitter to promote their products or services. Therefore, Borneo
Company made a twitter account to promote the products and increase the awareness of the
brand. The twitter account is @DeerRiverID; we chose to use the name of our brand instead of
the name of our company, so the customers would not get confused with our brand, products,
and company name.
We would use our twitter to update some travel info, information of the products, events, and
customer service info, also about the traveling facts and traveling quotes. We have also prepared the topic for the big days during the IBE 2 and the other topic related to traveling such
as where a movie takes place. We want our twitter account to be as interesting as possible to
be followed. The twitter account will announce all the followers about the upcoming events and
upcoming edition of our products.

61

Website

Borneo Company has created a website that is also a web store for Deer River brand. This
website was made to facilitate the access to our products easily; the address of our website
is www.deeriver.com. In this website we can see the details of the products, both in size and
color. We also provide the shipping facilities for all regions in Indonesia.
1. On the first page there is the index which is the home page to enter our web store. In the
index page, there is only a simple and elegant logo of Deer River with white color and a dark
blue color as the background to emphasize our brand.
2. The second page is the home page where the main menu is available. On the home page
there are photos and a video slide of Deer River campaign.
3. On the About Us page, we put the information about Borneo Company as the students of
School of Business and Management ITB, and the other information.
On the Blog page, we do not only upload videos of Deer River products, but also videos that
related to traveling, such as traveling by using our products, Deer River. We also post articles
or stories about Deer River products.
4. Entering the Collections page, we will see the photo slideshow and products photo when our
brand ambassadors use the products. Also, on this page we can find out the specific details of
the products by clicking the photo.
5. From the Collections page we can go to the Product page. This page explains the details of
the products from design, size, to color. We can also clearly see the materials of those products and how to order here.
6. Last one, there is an order page equipped with a purchasing data form on the Contact page.
For FAQ session, we can also find the contact on this page.

62

E-mail
We have made the companys personal e-mail to provide the FAQ from customers, where they
can reach us through :

deriver@borneo.com

borneo.ina@gmail.com

Next Level
Next Level is an annual fashion exhibition which has been held since 2012 in order to introducing Indonesian youth brands and package it with lifestyle. More or less 100 booths will be
available for local brands to rent in indoor area. All tenants that participating in this event has
to be local which are created and produced by Indonesian within the range of small to large
business scales. Fashion show, artworks, and music performances will also be presented during the event.
This event target is people from middle to high class who are interested in fashion; totally suitable with our target market. After we had some talks with the seniors, we found that Next Level
event contributes the highest or second highest revenue from all events. From those facts, we
prioritize this event. At the end of the event, the brand with the most buyer and most attractive booth will be awarded with trophy and cash. This achievement is carried out as a form of
appreciation to a productive youth brand, and may also be a role model to other local brands.

Pop Up Market
Pop Up Market is an event held by Prasetya Mulya Business School, which targets the middlehigh class people between 17 25 years old. They create different unique theme each year,
which could give more than a usual shopping activity instead to give a unique shopping experience that customers had never experienced before. Pop Up Market supported local development brand and young entrepreneurs.
Many of our seniors recommend this event because of the same target market as ours. From
the first event, they have already made a good impression to customers and visitors. With this
good impression, we hope that for the next event there will be more visitors attend this event.
Pop Up Market also produces middle-high revenue to the previous companies, thus Borneo
Company also prioritize this event.

Ina Craft
INA Craft is one of the biggest exhibitions of Indonesias local brand. In this event, there are
numerous types of handicraft from all over Indonesia. On the last event, the visitors can reach
to 200,000 people in 4 days; the majority of visitors are above 25 years old. Young fashionable
people who is our target market, rarely come to INA Craft, but from the last year experience,
the sale was above the expectation. Therefore, we think that we should take a chance on this
event, and perhaps sharing the booth with the companys neighbor (Bricks Company) considering the booth price that is too high.

63

6.6.3 Endorsement and Brand Ambassador

We would use some actors and actresses to endorse our product. These brand ambassadors
will promote our products by using the products on their concerts or shows. They will also
give an announcement of our products. We chose the ambassadors who can encourage people,
especially our target markets or at least their fans to buy our products. Therefore, it would
increase the awareness of our brand.
The selected actors and actresses to be our brand ambassadors are :

Soulvibe

Soul vibe is a musical group from Indonesia who has already got 16,193
likes on its Facebook page. Soulvibes music genre is pop, and the listeners of their music are usually youth and adults

Adhitia Sofyan

Adhitia Sofyan is a singer and songwriter from Jakarta who has got the
awards from ICEMA (Indonesian Cutting Edge Music Awards) as the
favorite solo artist and favorite singer-songwriter in 2010.

Gita Sucia

Gita Sucia is an actress who plays on SKETSA TV show. We hope that

she can use at least one of our products on that TV show and post it
on her social media, therefore people can have a look on the product.

Riyanni Djangkaru

Riyanni Djangkaruis well known as the presenter of Jejak Petualang TV

show. The traveling brands have been attached to her, so we hope that
she can also encourage a lot of people who travel to be both practical
and trendy just like as our vision and mission.

64

6.6.4 Printed Commercials

Printed commercials that we are going to use are A3-sized posters; we plan to stick it around
ITB. The posters will contain the information of our products on every event. For each event,
we are going to allocate 10 posters, which will be put at strategic areas and SBM ITB building,
such as the wall of magazines in front of the admin, auditorium, and first floor to third floor
wall of magazines. Then, the three other posters will be placed at the civil parking wall of
magazine and East & West GKU ITB wall of magazines.
In addition to the event posters, we are going to create a poster campaign that contains the information of travel places in Indonesia, and put it at any places inside of ITB to make a brandawareness from Borneo Company.

6.6.6 Personal Selling

We are going to use our human resources to sell the products of Borneo Company in a personal way. This method is chosen considering the effectiveness and less cost used. The personal
selling is powered by the campaign plan that our company has planned
The rule of personal selling is that every member of Borneo Company is responsible of certain
number of products to be sold. They do not have to sell to their relatives; they can sell to anybody through any medias that our marketing strategy has provided.

6.6.7 Sales Force

We are going to approach the fashion bloggers in order to promote our products through their
posts on several fashion blogs, such as Darahkubiru.com. The fashion bloggers are Mohammad Hamzah Dwi Putra and Alif Aviano Syailendra.

To be much clearer about the marketing plan, we provide the marketing plan timeline that
can be seen on APPENDIX E.

65

CHAPTER 7
Operation

67

7 .1 S UP P LY C H A I N
Deer River Clothes (Mens Wear)

RAMIE FABRIC
(10 days)

The order per week is 100 1000 m

30% down payment
Fulfillment payment is after QC 1.

QUALITY
CONTROL

DESIGN

QUALITY
CONTROL

PRODUCTION

PACKAGING

INVENTORY

Print

CUSTOMER

Total Production Time: 15 - 35 Days

68

Deer River Clothes (Womens Wear)

FABRIC

SEWING

QUALITY
CONTROL

1 day

10 days

3 hours

INVENTORY

CUSTOMER

Total Production Time: 11 Days

CORDURA
FABRIC

TENUN IKAT
FABRIC

1 day

4 days

2 weeks

DESIGN
1 week

QUALITY
CONTROL

PRODUCTION
2 weeks

PACKAGING

1 day

INVENTORY

Half Produced
Goods

Middle Production
Quality Control

Finishing
CUSTOMER

1 day

Total Production Time: 18 days

69

Deer River Pouch

TRIBAL
FABRIC
1 day
GLOW IN
THE DARK
FABRIC

QUALITY
CONTROL

SEWING
2 weeks

INVENTORY

1 day

1 day
2 weeks

PACKAGING

Total Production Time: 15 days

CUSTOMER

The further exposure of quality control can be seen on APPENDIX F

70

7 .2 L I ST OF V E ND O RS

Product
Product

Phase
Phase

Vendor
Vendor

Capacity
Capacity

Minimum
Minimum
Order
Order

Araji Professional Bag

Designer
Design

Jl. Tubagus Ismail VIII No.

19 Bandung

Rp50,000,000

Rp600,000

100 rolls

1 roll of
ikat fabric

1,000 bags

50 bags

1,000 bags

24 bags

1,000 bags

45 Bags

Blackberry PIN : 3263A784

Woven
Logo
Woven
Bundle

Deer

Fabric

River

Helen
Blackberry PIN : 22F3B15A
Bali Ethnics
Jl. Raya Kerobokan Kelod
137 Br. Taman, Kerobokan,
Kuta Bali 80361
Arif Reclays Afterlife

Bags

Jl. Pacuan Kuda I No. 55

Arcamanik, Bandung
Plan B : Wandi
Producti
on

Jl. Suci Bandung

Phone : 08568648321
Plan C : Deni
Jl. Cidurian Utara
Kawaluyaan I No. 23
Bandung
Phone : 08122331201

71

Product

Phase

Vendor
Jl.

Pasir

Cilengkrang

Jati

Capacity
160

Ujung

Minimum
Order

Desa
Berung,

10,000 bags

100 bags

10,000 bags

100 Bags

Bandung
Packaging
Productio
n

Plan B : Kreasindo Panca

Jaya
Jl. CIbadak No. 20 Bandung
Phone : 022 4220566
kreasindopancajaya@ymail.com

72

Product

Phase

Vendor

Capacity

Minimum
Order

Makky M Siddik Ramie

Darussalam
Jl.
Fabric
Producti
on

KampungTipar

RW

03,

RT

02

DesaWanaraja,

KecamatanWanaraja,

1000

100

10,000

500

500

10,000

A4 size

10,000

A4 size

Kabupaten Garut 44183

Phone : 0262 441103
Tencel
Jl.

Hegarmanah

No.

Bandung
Batik Komar
Jl. Cigadung Raya Timur 1
No. 1 Bandung 40191
Dyeing

Phone : 022 2514788

Deer
River

Plan B : Batik Hasan

Clothes

Cigadung, Bandung
Jl.
Printing

Pagarsih

No.

146

Bandung
Plan B:Paskal Hypersquare

Woven
Logo

Helen
Blackberry PIN : 22F3B15A

Bpk. Rudi
Phone : 081223208528

Rp50,000

Rp600,000

500 shirts

1 shirt

1,000 shirts

50 shirts

Plan B : Deni
Sewing

Jl.

Cidurian

Utara,

Kawaluyaan I No. 23
Bandung
Phone : 08122331201

73

Product
Product

Phase

Vendor
Vendor

Capacity

Minimum
Minimum
Order
Order

CV. Anugrah Grafika

(packaging & printing)
Jl. Pagarsih No. 40 A

20,000 pcs

100 pcs

200 pcs

1 piece

100 packs

1 pack

1,000

1,000

1 feet /
0.11

1,500 bags

50 bags

10,000 bags

100 bags

10,000 bags

100 bags

Phone : 022 6044871

Packagin
g

Polar (stamp sealing)

Producti

Jl. Pagarsih Bandung

on
Enlogis (wax sealing)
Jl. Kopi Jakarta Utara
Phone : 021 99028286
E-mail : cs1@enlogis.com
Tribal
Fabric

Pasar Baru Bandung, West

Java
Plan B : Mayestik Jakarta
PT.

Glow in
the Dark
fabric

Deer
River

Indo

Pancaran

Gemilang
Mal Taman Palem Lt. 2 A
37
Jl.

Lingkar

Luar

Barat

1,000

Cengkareng
Producti
on

Pouch

Arif Reclays Afterlife

Blackberry PIN : 2800B6E0
Jl. Pasir Jati 160 Desa
Cilengkrang Ujung Berung

Packagin

Plan B : KreasindoPanca
Jaya

g
Producti
on

Jl. CIbadak No. 20

Bandung
Phone : 022 4220566
kreasindopancajaya@ymail.
com

74

7.3 PRO D UCTI ON TI M E L I N E

Deer River Clothes ( Mens Wear )

Week 1

Week 2

Week 3

Week 4

Fabric Orders

Dyeing

Printing

Sewing

Quality Control

Packaging

Packaging

Selling to

Production

Customers

Note: This production
timeline is merely for one production session.

Deer River Clothes ( Womens Wear )

Tencel Fabric

Week 1

Week 2

Week 3

Week 4

Quality Control

Packaging

Packaging

Selling to

Orders
Woven Logo
and Hangtag
Production
Production

Production

Customers

75

Deer River Bags

Week 1

Bundle Fabric

Week 2

Week 3

Week 4

Quality Control

Packaging

Packaging

Selling to

Orders
Woven Logo
Orders
Production

Production

Customers

Notes :

The production timeline is merely for one production session.

After the vendor has finished production, the products will be checked at the vendors
spot and if there is any repair needed, it will be immediately fix there.

Deer River Pouch

Tribal Fabric

Week 1

Week 2

Week 3

Week 4

Orders
Glow in the
Dark Fabric
Orders
Production

Quality Control
Packaging

Packaging

Selling to

Production

Customers

76

7 .4 O P E R ATI ON TI M E L I N E
Plan A
Production

December

January

February

March

April

Deer River Clothes

Deer River Bags

Deer River Pouch

Packaging

Production

December

January

February

March

April

Deer River Clothes

Deer River Bags

Deer River Pouch

Packaging

Plan B ( Optimist )

Conclusion :
1.

There will be no productional activity in April 2013 due to the last month of Integrated

Business Experience project and it is going to be risky in selling products if there would be new
stock produced on its month with short period of selling.
2.

We are keep going to produce packaging in January although we still have stock re-

mainder, in case to anticipate of the increase sales considering there would be a lot of events
in February. We are also going to produce packaging in February to fulfill the needs in March
and April. Therefore, in the last two months, there would not be any production of packaging.

77

7 .5 R EO R D ER P O L I CY
Deer River Clothes
We are going to order ramie and tencel fabrics every month because it will be very expensive if
we merely order the raw material of this product at once, except for woven logo and hang tag
because they have a minimum order to produce it. Thus, we are going to produce all of it in the
beginning. We are going to order the fabrics to fulfill next months sales forecast, but if we still
have remainder of the previous months stocks that can fulfill next months needs, we will not
order the raw materials. Also, in April we will not order any raw materials because April is the
last month of IBE selling period.
We have estimated that we should make an order for the following month if the stock of Deer
River Clothes left in inventory reached 54 shirts for mens wear and 20 shirts for womens wear.

Deer River Bags

We are going to order tenun ikat and cordura fabrics based on every months sales forecast.
For woven logo and hangtag, we are going to order in the beginning because they have a minimum order to produce it. However, if we still have remainder of the previous months stocks
that can fulfill next months needs, we will not order the raw materials. Also, in April we are
not going to order any raw materials because April is the last month of IBE selling period.
We have estimated that we should make an order for the following month if the stock of Deer
River Bags left in inventory reached 41 bags.

Deer River Pouch

We are going to order tribal and glow in the dark fabrics based on every months sales forecast.
With the total production cost for about two (2) weeks, we have estimated that we should make
an order for the following month if the stock of Deer River Pouch left in inventory reached 25
pouches.

78

7 .6 INV ENTOR Y M A N AGE M E N T

For the inventory management, we are going to use FIFO (First In First Out) system where the
first product received will be sold first. We use this system to simplify the inventory traffic
considering the production cost of each goods sold (in case of theres a change in production
cost), and also to avoid the old stock for taking too long time in storage to ensure our products
are served in finest quality.

The details of inventory stock can be seen on APPENDIX G.

79

CHAPTER 8
Financial Plan

81

F IN AN C I A L PL A N

In this chapter, there will be an explanation about companys projection during

operative period of Integrated Business Experience (IBE) through pro forma income statement, statement of cash flow, and pro forma balance sheet start from beginning (December 2012) until the end of IBE period (April 2013).

8 . 1 A SS U M P T ION

0.825 Percen t per Mon th lo a n I n te re st R a te Pa i d to CI M B - Ni a g a B ank

At t he e nd of period, BO R NE O C o mp an y w i l l p ay t h e i n te re st 9 . 9 % e a c h
ye ar.
Conside ring t he IBE only fo r 5 mo n t h s, t h e i n te re st to b e p ai d i n e ac h
mo nt h is 0.825% from to tal lo an .

0.167 Percen t per Mon th De po s i t I n te re st R a te R e ce i ve f ro m

CI MB-Niag a Ban k. Com pan y w i l l re ce i ve i n te re st reve n u e f ro m b an k 2 %
f ro m loan pe r ye ar; it me an s we wo u l d g ai n 0 . 1 6 7 % i n te re st reve n u e u n til
th e end of IBE.

Pay Back Pe riod w il l be cou n t af ter the f i rst d ay loan tak i n g.

8 . 2 PR OD U CT D E TA ILS
Here is the detail of Borneos products from the cost of good sold, selling price, and
profit margin that will be gained by Borneo Company.

Products

Cost of Good Sold

Selling Price

Profit Margin

Pouch

IDR 40,000

IDR 84,000

110%

Shirt

IDR 163,000

IDR 259,000

59%

Printed-dyed Ramie Shirt

IDR 234,000

IDR 399,000

71%

Ramie dyed shirt

IDR 189,000

IDR 325,000

72%

Tencel blouse

IDR 95,000

IDR 250,000

163%

Traveling Bag

IDR 200,000

IDR 435,000

118%

Standard Backpack

IDR 165,000

IDR 298,000

81%

Sling bag

IDR 165,000

IDR 375,000

127%

Original-printed Ramie

8.3 Use of F unds (Loan E stimation )

BORNEO will need a loan to operate in the first month only and those amount of money
will be used to cover :
a. Production in December consist of Pouch Bag, Ramie Shirt, Tencel Shirt, and Bag.
b. Operation expenses needed in the December to run the business such as The
Gasoline, Office Supplies, Product Design Cost, stamp, and delivery cost.
c. Marketing Expenses needed in December to promote BORNEOs Product such as
Website, Poster, Booth and Decoration, Lookbook,endorsemet and prototype of
the products.

82

8 . 3 . 1 Pro d u c ti o n E x p e n s e s
Products

COGS

Quantity

Total

Original-printed Ramie Shirt

IDR 163,000

20

IDR 3,260,000

Printed-dyed Ramie Shirt

IDR 234,000

15

IDR 3,510,000

Ramie dyed shirt

IDR 189,000

21

IDR 3,969,000

Tencel blouse

IDR 95,000

30

IDR 2,850,000

Traveling Bag

IDR 200,000

IDR 1,000,000

Standard Backpack

IDR 165,000

25

IDR 4,125,000

Sling bag

IDR 165,000

20

IDR 3,300,000

Pouch bag

IDR 40,000

50

IDR 2,000,000

Packaging shirt

IDR 15,000

100

IDR 1,500,000

Packaging bag

IDR 13,000

100

IDR 1,300,000

Total Production Expenses

IDR 26,814,000

8 . 3 . 2 Op e rati n g E x p e n s e s
Expenses
Gasoline

Price

Quantity

IDR 200,000

Total Price
IDR 200,000

Delivery Cost

IDR 50,000

Office Supplies Expenses

IDR 50,000

Stamp

IDR 120,000

IDR 120,000

Product Design Cost

IDR 2,400,000

Total Operation Expenses

IDR2,820,000

8 . 3 . 3 M ar ke ti n g E x p e n s es
Expenses

Price

Quantity

Website

Total Price
IDR 1,500,000

Poster

IDR 8,000

40

IDR 320,000

Prototype (Deer River Bags)

IDR174,000

IDR 174,000

Prototype (Deer River Clothes)

IDR 180,000

IDR 180,000

Decoration Booth

IDR 1,500,000

Name Card

IDR 65,000

IDR 195,000

Look-book

IDR 25,000

10

IDR 250,000

IDR 163,000

IDR 1,304,000

IDR 200,000

IDR 200,000

Endorsement (Original-printed
Shirt)
Endorsement (Traveling Bag)

Total Marketing Expenses

IDR 5,623,000

TOTAL LOAN

IDR 35,257,000

83

8 . 4 SA L E S FOR E CA S T ( In Unit)

Sales Forecast (accumula/ve)

300
250
200
Op:mis:c

150

Most Likely

100

Pesimis:c

50
0

Month

December January

February

March

April

December

January

February

March

April

Oprimistic

110

133

225

228

246

Most Likely

98

120

204

207

232

Pesimistic

86

107

109

186

207

T h e Detai l o f E ac h P ro d u c ts Sales Fo recast Deer R iver Clot hes

( M e n s We ar ) , D e e r R iver Clo thes ( Wo m ens Wear )
DE ER R IV E R S H IR T ( M EN S WEAR )
Pessimistic

Most Likely

Optimistic

December

18

21

24

January

23

26

29

February

25

38

42

March

34

38

42

April

40

45

44

T O T A L

140

168

181

Pessimistic

Most Likely

Optimistic

December

22

25

28

January

25

28

31

February

25

46

51

March

44

49

54

April

50

56

62

T O T A L

166

204

226

DE ER R IV E R S H IR T ( WO MEN S WEAR )

84

BAG
Pessimistic

Most Likely

Optimistic

December

21

24

27

January

31

35

39

February

31

59

65

March

53

59

65

April

56

63

69

T O T A L

192

240

265

Pessimistic

Most Likely

Optimistic

December

25

28

31

January

28

31

34

February

28

61

67

March

55

61

67

April

61

68

71

T O T A L

197

249

270

PO UCH B AG

In most likely sales forecast, Borneo Company optimist that the company can sell

168 mens wear, 204 womens wear, 240 bags, and 249 pouch bags. The amount of product
sales in December and January are small because there is no event that will be joined and
the sales only gained from personal selling and internet sales. The amount of sales will be
increase in February until April, because there will be one big event every month that will be
joined by Borneo Company. In most likely sales forecast, Borneo Company is expected to get
IDR 56.126.044 as net income.

In pessimist sales forecast, the company will sell 140 mens wear, 166 womens

wear, 192 bags, and 197 pouch bags. This pessimist forecast are based on assumption from
marketing division related to the least product company can sell. In Pessimist sales forecast,
Borneo Company is expected to get IDR 37.229.624 as net income.

Meanwhile in optimist sales forecast, Borneo Company will sell 181 mens wear, 226

womens wear, 265 bags, and 270 pouch bags. Same like previous sales forecast, the sales
will be increase from February until April. This optimist sales forecast assumed based on assumption from marketing division related to the most optimistic amount of product the company can sell. In optimist sales forecast, Borneo Company is expected to get IDR 64.398.044
as net income.

85

978,000
2,106,000
2,079,000
2,660,000
600,000
3,135,000
2,145,000
1,240,000
14,943,000

2,119,000
1,404,000
1,890,000
2,375,000
800,000
2,475,000
990,000
1,120,000
13,173,000

30,166,000

5,662,000

4,470,000

25,070,000

1,305,000

1,505,000

2,604,000

7,000,000

6,250,000

2,352,000

3,575,000

3,250,000

4,875,000

3,591,000

2,394,000

2,250,000

1,554,000

January

2,599,000

December

24,227,000

2,440,000

3,630,000

5,280,000

1,000,000

4,370,000

2,835,000

3,042,000

1,630,000

49,237,000

5,124,000

8,250,000

9,536,000

2,175,000

11,500,000

4,875,000

5,187,000

2,590,000

February

BORNEO Company
Pro-Forma Income Statement
Most Likely Projection
For For
5 mon
ths enended
d ed A
pr i l2013
2013
( I D R)
5 months
April
(Rp)

24,512,000

2,440,000

3,630,000

5,280,000

1,000,000

4,655,000

2,835,000

3,042,000

1,630,000

49,987,000

5,124,000

8,250,000

9,536,000

2,175,000

12,250,000

4,875,000

5,187,000

2,590,000

March

27,749,000

2,720,000

3,630,000

4,785,000

2,400,000

5,320,000

3,591,000

3,510,000

1,793,000

56,833,000

5,712,000

8,250,000

8,642,000

5,220,000

14,000,000

6,175,000

5,985,000

2,849,000

April

The detail of proforma income statement optimistic and pessimistic can be seen on APPENDIX H and APPENDIX I

Total COGS

Pouch bag

Sling Bag

Standard Backpack

Travelling Bag

Tecnel shirt

Ramie dyed shirt

Ramie print-dyed shirt

Ramie Original-print shirt

Cost Of Goods Sold

Total Sales

Pouch bag

Sling Bag

Standard Backpack

Travelling Bag

Tencel shirt

Ramie dyed shirt

Ramie print-dyed shirt

Ramie Original-print shirt

Sales Revenue
Sales

wi ll be in a p pen dix .

H ere is th e m o st l ike ly pro je c tio n o f pro -fo rm a i n co me state me n t o f Bo rn e o C om pa n y. T h e pessim istic a n d optim istic projec tion

8.5 IN COME S TATEM EN T

86

87

50,000
6,000,000
6,300,000

50,000
0
2,820,000

0
0
0
0
3,000,000

0
3,765,000
354,000
1,304,000
200,000
0
3,000,000
5,923,000

250,000
3.470.000

0
5,623,000
3,454,000

290,870.250
5,691,008.940

290,870.250
3,222,008.940

290,870.250

5,923,000

3,454,000

13,578,008.940

290,870.250

58,879.190

13,810,000

13,810,000

4,300,000

11,833,008.940

290,870.250

58,879.190

12,065,000

12,065,000

6,500,000

4,300,000

6,910,000

6,000,000

60,000

50,000

300,000

500,000

25,475,000

21,802,008.940

276.557

55.982

22,034,000

22,034,000

6,500,000

7,050,000

6,000,000

250,000

300,000

500,000

29,084,000

The detail of proforma income statement optimistic and pessimistic can be seen on APPENDIX H and APPENDIX I

58,879.190

204.500

1.141.000

354.000

195,000

6,900,000

6,000,000

50,000

50,000

300,000

500,000

25,010,000

1,500,000

58,879.190

120,000

2,400,000

320,000

50,000

50,000

1,500,000

200,000

15,223,000

11,897,000
200,000

58,879.190

Earnings After Tax and Interest / Net Profit

Earnings Before Interest and Taxes

Earnings Before Interest Taxes and Depreciation

Total marketing expenses

Legalization Event

Endorsement (Travelling Bag)

Endorsement (ramie original print shirt)

Prototype (2 products)

Total Advertising Expenses

Lookbook

Name card

Decoration Booth

Poster

Website

Marketing expenses
Advertising expenses

Total operating expenses

Salary Expenses

Office Supplies

Stamp

Product Design

Delivery cost

Toll road

Gasoline

Operating expenses

Gross Profit

Sales Discount

70,514,000

TOTAL ASSETS

38,479,009

35,257,000
70,514,000

Total Equities

TOTAL LIABILITIES & EQUITIES

73,736,009

Donated Capital

35,257,000

35,257,000

3,222,008.94

Ordinary Capital

Retained Earnings

Equities
0

35,257,000

35,257,000

TOTAL LIABILITIES

35,257,000

35,257,000

Long Term Debt

Liabilities

Liabilities and Equity

73,736,009

70,514,000

Total Current Asset

73,736,009

10,841,000

35,257,000

27,638,009

December

79,427,018

44,170,018

6,000,000

35,257,000

2,913,017.88

35,257,000

35,257,000

79,427,018

79,427,018

13,878,000

35,257,000

30,292,018

January

93,005,027

57,748,027

12,000,000

35,257,000

10,491,026.82

35,257,000

35,257,000

93,005,027

93,005,027

20,130,000

35,257,000

37,618,027

February

For 5 months ended April 2013 (IDR)

Pro forma Balance Sheet

BORNEO Company

35,257,000

Bank Collateral

Inventories

35,257,000

Beginning

Cash

Assets

8.6 BALANC E SH E ET

88

104,838,036

69,581,036

18,000,000

35,257,000

16,324,035.76

35,257,000

35,257,000

104,838,036

104,838,036

23,881,000

35,257,000

45,700,036

March

56,126,045

56,126,045

Ending

56,126,045

56,126.045

126,640,045 56,126,045

91,383,045

24,000,000

35,257,000

32,126,044.70

35,257,000

35,257,000

126,640,045 56,126,045

126,640,045

35,257,000

91,383,045

April

89
0
0

Office Supplies

Stamp

0
0

Endorsement (ramie original print shirt)

Endorsement (Travelling Bag)

200,000

1,304,000

195,000

1,500,000

Lookbook

Decoration Booth

320,000

1,500,000

120,000

50,000

2,400,000

50,000

200,000

25,070,000

195,000

Poster

DECEMBER

Name Card

Website

Marketing expenses

Product Design

Delivery cost

Toll road

BEGINNING

50,000

50,000

200,000

30,166,000

JANUARY

Most Likely Projection (IDR)

Statement of Cash Flow

Gasoline

Operating expenses

Cash paid for

Sales

Cash receipts from

Operating Activities

8.7 STATEME NT OF CAS H FLOW

50,000

50,000

300,000

500,000

49,237,000

FEBRUARY

60,000

50,000

300,000

500,000

49,987,000

MARCH

250,000

300,000

500,000

56,833,000

APRIL

90

290,870,25

58,879,19

290,870,25

58,879,19

6,000,000

14,314,000

28,263,000

6,500,000

58,879,19

6,000,000

51,983,000

3,800,000

35,257,000

35,257,000

Net Cash Flow from Financing Activities

Net Cash Flow

(10,363,991)

(231,991)

14,654,009

5,768,009

19,326,009

5,768,009

20,082,009

5,768,009

22,494,009

(29,488,991)

290,870,25

290,870,25

58,879,19

6,000,000

13,558,000

30,479,000

4,300,000

Interest Expense

290,870,25

58,879,19

6,000,000

8,886,000

17,980,000

3,000,000

35,257,000

35,257,000

(10,132,000)

26,814,000

354,000

Payment of Long Term Debt

Cash paid for

Interest Income

Issuance of Long Term Debt

Donated Capital

Cash receipts from

0

Net Cash Flow from Investing Activities

Financing Activities

Purchase of property and equipment

Cash paid for

Sale of property and equipment

Cash receipts from

Investing Activities

Net Cash Flow from Operations

0

Legalization Event

Inventory purchases

Prototype (2 products)

8 . 8 CA S H F LOW R AT IO
December January February
LIQUIDITY RATIO
Current Ratio
Quick (acid-test) ratio
FINANCIAL LEVERAGE RATIO
Debt to asset
Debt to equity
Interest coverage ratio
PROFITABILITY RATIO
Gross profit margin
Operating profit margin
Net profit margin
ROA
ROE
ACTIVITY RATIO
Inventory turnover
Total Asset turnover

March

April

2.09
1.78

2.25
1.86

2.64
2.07

2.97
2.30

3.59
3.59

0.48
0.92
11.87

0.44
0.80
20.36

0.38
0.61
47.48

0.34
0.51
41.48

0.28
0.39
75.75

47%
14%
13%
4%
8%

50%
20%
19%
7%
13%

51%
28%
28%
15%
24%

51%
24%
24%
11%
17%

51%
39%
38%
17%
24%

122%
34%

108%
38%

120%
53%

103%
48%

45%

The Ra t i o A n alys i s

From the liquidity ratio which consists of curret and quick ratio, it shows that the

company ability to returns its current liabilities by current asset and quick assets ( not included inventory) are increase in every month which is good.

From the debt ratio , especially the interest coverage ratio which shows the companys

ability to make contractual interest payment, the companys ratio show increasing number
from 11.87 in December to 75.75 in April, this ratio means that companys earning before
interest and taxes ratio would still be able to pay interest expense every month.

The companys profitability ratio is increasing mostly from December to April. Net

Profit Margin is increasing, so it indicated that the company is more profitable each month.

91

8. 9 I NI T I AL IN V E S T M E N T
A ss umi ng t hat t he Inte re st Loan f ro m B an k i s 9 . 9 % p e r ye ar we wo u l d h ave C o st
o f Ca p i ta l by 0.825% per m ont h to b e p ai d e ac h mo n t h fo r t h e n ex t 5 mo n t h s lo a n .

MO ST L I K E LY
Cash Flow
Initial Investment

Cumulative Cash Flow

(IDR 35,057,000)

(IDR 35,057,000)

December

IDR 3,222,008

(IDR 31,834,992)

January

IDR 5,691,009

(IDR 26,143,983)

February

IDR 13,578,009

(IDR 12,565,974)

March

IDR 11,833,009

(IDR 732,965)

IDR 21,802,008

IDR 21,069,043

April

Payback Period

P E SSI M I S T IC

4.03 months (121 days)

Cash Flow

Cumulative Cash Flow

(IDR 35,057,000)

(IDR 35,057,000)

December

IDR 2,205,324

(IDR 32,851,676)

January

IDR 4,168,324

(IDR 28,683,352)

February

IDR 2,554,324

(IDR 26,129,028)

March

IDR 9,789,324

(IDR 16,339,704)

April

IDR 18,512,324

IDR 2,172,620

Initial Investment

Payback Period

4.88 months (146 days)

O PTI M I ST IC

Cash Flow

Cumulative Cash Flow

Initial
Investment

(IDR 33,522,000)

(IDR 32,985,500)

December

IDR 4,724,008

(IDR 28,261,492)

January

IDR 6,904,008

(IDR 21,357,484)

February

IDR 15,803,008

(IDR 5,554,476)

March

IDR 14,058,008

IDR 8,503,532

April

IDR 22,909,008

IDR 31,412,540

Payback
Period

3.39 months (102 days)

92

8 . 1 0 BR E A K E V E N A N A LYSIS
Product

BEP

Pouch

80

Original-printed Ramie
Shirt

15

Printed-dyed Ramie Shirt

19

Ramie dyed shirt

23

Tencel blouse

68

Travelling Bag

Standard Backpack

42

Sling bag

27

shows the amount of each product that needed to cover up all

The breakeven analysis
costs that we need to support the company. It means that after we reach the amount,
the next selling of product will generate profit.

8 . 1 1 FI N A N C IA L P R OJE CT IO N
Rp60,000,000.00
Rp50,000,000.00
Rp40,000,000.00
Sales Revenue

Rp30,000,000.00

Net Prot

Rp20,000,000.00

Expense

Rp10,000,000.00

ril
Ap

ch
ar
M

y
ar
Fe
br
u

ry
nu
a
Ja

De
ce
m

be
r

Rp0.00

December

January

February

March

April

Total

Sales Revenue

IDR 25,070,000

IDR 30,166,000

IDR 49,237,000

IDR 49,987,000

IDR 56,833,000

IDR 211,293,000

Expense

IDR 8,443,000

IDR 9,300,000

IDR 11,200,000

IDR 13,410,000

IDR 7,050,000

IDR 49,403,000

Net Profit

IDR 3,222,008

IDR 5,691,009

IDR 13,578,009

IDR 11,833,009

IDR 21,802,008

IDR 56,126,043

Sales in December and Januari are small, because there is no event that will be joined by
Borneo Company. The sales in December and January are gained from personal selling and
internet sales. The sales will increase in February until March because there will be one
big event each month, like Pop-Up Market, Inacraft that will be joined by Borneo Company.
Those events according to our marketing division have big potential sales. The biggest expense that Borneo will spend is in March and the smallest expense is in December.

93