Kirana Care: A Facial Care Brand from Indonesia

Healthy lifestyle tends to be more and more attractive for Indonesian people, including in the selection of cosmetic products, especially facial care. Euromonitor Indonesia (2010) predicted that the growth of facial care products will continue to increase 20% - 30% until the year 2016. It shows that the facial care market is still at the stage of growth. By carrying out the natural ingredients, paraben free, and targeting in masstige segment, PT. Beauty Kirana Indonesia was established with initial capital of Rp 13.12 billion obtained from the founders and investors. Focus on cost is the company’s generic strategy, because we want to target specific segment, which is woman 20-29 years old and 30-49 years old, who are concern about their appearance. Based on our survey result, we offer 5 facial care products: facial wash, day cream, night cream, facial serum and BB cream. The products are differentiated into 2 series: whitening with cocoa extract for woman 20-29 years old and anti-aging with seaweed extract for woman 30-49 years old. For the procurement of raw materials and product formulations, PT KBI has partnership with PT. BEA laboratory in France, where BEA will send raw material in bulk. PT. KBI then will do the filling and capping process, including packaging until finished products in our own plant in Banten. Products are produced with cost of good sold of less than 30% of revenue in 5 years. We implement 5C (Caring, credible, Competent, Competitive, and Customer Delight) as our culture. We also implement 4S (Senyum, Sapa, Salam, and Santun) in daily activity. Those 2 cultures can support company’s strategy and build employees loyalty and commitment. Based on the financial feasibility analysis, business plan is viable with a consideration of 11.54 M positive NPV, IRR of 48.32%, and the Discounted Payback Period less than 6 years.