Digital - 20367404-TA-Joo Yoon Jee PDF

UNIVERSITAS INDONESIA
B2B MARKETING: THE COLLECTING DATA AND

RESEARCH FOR ENTERING STEEL MARKET IN
INDONESIA
LAPORAN AKHIR MAGANG
JOO YOON JEE

0906620373
FAKULTAS EKONOMI
PROGRAM STUDI MANAJEMEN
DEPOK
DECEMBER 2013
B2b marketing ..., Joo Yoon Jee, FE UI, 2013

UNIVERSITAS INDONESIA
B2B MARKETING: THE COLLECTING DATA AND

RESEARCH FOR ENTERING STEEL MARKETIN
INDONESIA
LAPORAN AKHIR MAGANG
Diajukan sebagai salah satu syarat untuk memperoleh gelar

Sarjana Ekonomi
JOO YOON JEE

0906620373
FAKULTAS EKONOMI
PROGRAM STUDI MANAJEMEN
KEKHUSUSAN PEMASARAN
DEPOK
DECEMBER 2013

PREFACE
Before I started to work in POSRI (POSCO Research Institute) related with

steel company, I was not interested in steel industry. I thought that steel company
or steel industry was career just for man. So I thought I don’t have chance to work
in this industry or company. However, fortunately, I got an internship in POSRI
related with steel industry. So I got new experience and had a chance to approach
business to business (B2B) marketing. As a student who is major in marketing,
generally speaking I’m always interested in business to consumer (B2C)
marketing. But, after this internship, I can see a new business world, that is, B2B.
Because of this internship, I took a class of B2B for final semester. I was too
curious about B2B marketing compared with B2C marketing.
Usually, students who are major in marketing in management focus to learn
Business to Consumer (B2C) marketing. Moreover, my classmates who are major
in marketing also wrote a graduation thesis about B2C marketing. But I wanted to
write a graduation thesis instead of B2C marketing for differentiation with them.
In addition, before starting internship program for a credit, I already participated
in non credit internship in POSRI. So, I was interested in Business to Business
(B2B) marketing more. According to this, it was easy to approach B2B marketing
for an internship report.
For this opportunity, I thank:
Ms. Elevita Yuliati, who is an academic advisor for an internship program. She
coached me for an internship report and gave me tips on how to handle and
approach situations.
Mr. Park Kyungsuh, who is an advisor of internship program as senior
economist in POSRI. I want to thank him for giving me the opportunity to
internship program in POSRI. He always answered my questions related with
Indonesian economic situations.
Also I appreciated all coworkers during internship program. I want to thank
Ms.Maria, Mr.Murtyastanto, Mr. Wahyu Adhiprasetya.

ABSTRACT
Name : Joo Yoon Jee

Study Program : Management
Title : The Collecting Data and Research for Entering Steel Market in
Indonesia
This study aims to research data needed for entering new market in business to
business marketing. The study is focused on steel industry in Indonesia. The
results of this study indicate that which data was needed for planning strategic
marketing in steel industry. In addition, the results shows that how many it has
competitors in steel market in Indonesia and how many it has expected customers
for future. The study also shows that how to collect and research data for business
marketing and how to use data effectively.
Key Words : Business Marketing, New Market, Business Marketing Research

Process, Data Collection, Survey, Research, Steel Industry

CONTENTS
HALAMAN JUDUL ---------------------------------------------------------------------------------- i

HALAMAN PERNYATAAN ORISINALITAS ---------------------------------------------------- ii
HALAMAN PENGESAHAN ------------------------------------------------------------------------ iii
HALAMAN PERNYATAAN PERSETUJUAN PUBLIKASI TUGAS AKHIR--------------- iv
PREFACE ------------------------------------------------------------------------------------------------ v
ABSTRACT --------------------------------------------------------------------------------------------- vi
CONTENTS -------------------------------------------------------------------------------------------- vii
TABLE OF EXHIBITS --------------------------------------------------------------------------------- x
TABLE OF APPENDICES ----------------------------------------------------------------------------- x
CHAPTER 1 INTRODUCTION 1
1.1. Background ------------------------------------------------------------------------------------ 1
1.2. Indonesia Steel Industry ---------------------------------------------------------------------- 2
1.3. Internship Objectives --------------------------------------------------------------------------3
1.4. Methodology ----------------------------------------------------------------------------------- 3
1.5. Description of the Internship -------------------------------------------------------------- 3
1.5.1 Working Period & Hours -------------------------------------------------------- 3
1.5.2 Work Place ------------------------------------------------------------------------ 4
1.5.3 Internship Activities -------------------------------------------------------------- 4
CHAPTER 2 COMPANY PROFILE 5

2.1 Profile -------------------------------------------------------------------------------------- 5
2.2 History ------------------------------------------------------------------------------------- 6
2.3 Vision, Mission, and Core Value ------------------------------------------------------- 6
2.4 Company Structure -----------------------------------------------------------------------7
CHAPTER 3 RELATED THEORIES 10

3.1 Introduction to Business Marketing ------------------------------------------------------- 10
3.1.1 The Definition of Term ‘Business Marketing’ ------------------------------10
3.1.2 The Importance of Business Marketing ------------------------------------- 10
3.1.3 How Business Marketing is Unique ----------------------------------------- 10

3.1.4 Business Markets --------------------------------------------------------------- 12
3.2 New Market ------------------------------------------------------------------------------------16
3.2.1 The Business Marketing Research Process --------------------------------- 16
3.2.2 The Strategic Marketing Plan --------------------------------------------------18
CHAPTER 4 DATA AND ANALYSIS 20

4.1 Business Marketing in Practice -------------------------------------------------------------20
4.2 The Company Profile of PT. Krakatau POSCO ------------------------------------------ 21
4.2.1 The Introduction of PT. Krakatau POSCO -------------------------------------21
4.2.2 The History of PT. Krakatau POSCO -------------------------------------------21
4.3 The Data of Competitors of PT. Krakatau POSCO -------------------------------------- 22
4.3.1 PT. Krakatau Steel ---------------------------------------------------------------- 22
4.3.2 PT. Gunung Steel ------------------------------------------------------------------ 23
4.3.3 PT. Ispat Indo ---------------------------------------------------------------------- 25
4.3.4 PT. Gunawan Steel ---------------------------------------------------------------- 26
4.3.5 PT. The Master Steel -------------------------------------------------------------- 27
4.3.6 PT. Essar Indonesia ----------------------------------------------------------------28
4.3.7 PT. Bluescope Indonesia ----------------------------------------------------------30
4.4 The Marketing Plan of PT. Krakatau POSCO---------------------------------------------31
4.4.1 Marketing Strategies and Programmes for Thicker & Wider ----------------31
4.4.2 Marketing Strategies and Programmes for Overlapping Size ----32
4.5 The Expected Costumers of PT. Krakatau POSCO --------------------------------------32
4.5.1 The Industry of Automotives -----------------------------------------------------32
4.5.2 The Industry of Electronics -------------------------------------------------------33
4.5.3 The Industry of Constructions ----------------------------------------------------33
4.5.4 The Industry of Heavy Equipments ---------------------------------------------33
4.6 The Research for Demand & Supply -------------------------------------------------------33
4.6.1 Survey: South East Asian Iron & Steel Institute (SEASI) --------------------33
4.6.2 Survey: Statistics Indonesia (BPS) -------------------------------------------- 34
4.6.3 Survey: World Steel Association (WSA) ---------------------------------------35

CHAPTER 5 CONCLUSION AND SUGGESTION 37
5.1 Conclusion ---------------------------------------------------------------------------------- 37
5.2 Suggestion ---------------------------------------------------------------------------------- 37
REFERENCE 38

TABLE OF EXHIBITS
Exhibit2.1 Vision of POSRI ---------------------------------------------------------------------------- 6

Exhibit 2.2 Company Structure of POSRI ----------------------------------------------------------- 7
Exhibit 4.1 Summary of PT. Krakatau Steel ------------------------------------------------------- 22
Exhibit 4.2 Summary of PT. Gunung Steel --------------------------------------------------------- 23
Exhibit 4.3 Summary of PT. Ispat Indo ------------------------------------------------------------- 25
Exhibit 4.4 Summary of PT. Gunawan Steel ------------------------------------------------------- 26
Exhibit 4.5 Summary of PT. The Master Steel ----------------------------------------------------- 27
Exhibit 4.6 Summary of PT. Essar Indonesia ------------------------------------------------------ 28
Exhibit 4.7 Summary of PT. Bluescope Indonesia ------------------------------------------------ 29
TABLE OF APPENDICES
APPENDICE 1: PRODUCT OF PT. KRAKATAU POSCO

APPENDICE 2: SHIPYARD LOCATION OF INDONESIA

CHAPTER 1
INTRODUCTION
1.1 Background
After economic crisis in Korea in 2008, many Korean companies started to look for
new market in global including Indonesia. Most companies focused on business in
Asian market. Representatively, there are Indonesia, Vietnam, India, and Thailand. In
the one of them, the best overseas investment is Indonesia. There are several reasons
as follows. First, Indonesia is ranking 4th of population in the world. In other words,
there has a big domestic market. Then, Indonesia has a wide land. It’s means that this
country has abundant resources. Next, Indonesia has the best stability of politics and
government in the country of Southeast Asia. So, it is easy to do a business than in
other countries. After that, Indonesia has the biggest potential business. Because of
those reasons, Korean major companies-LOTTE, POSCO- entered to Indonesian
market. Besides, other Korean major companies- CJ, SK- also started to expand their
business in Indonesia.
Since 2008, POSCO (formerly Pohang Iron and Steel Company) has invested to
build plants in Indonesia. In that time, Koreans who have been living in Indonesia
were happy to hear this news and proud of that. That’s why POSCO is one of the
biggest companies in Korea and has good image. POSCO was public enterprise
before. But, since 2000, POSCO privatized a public enterprise.
Actually, PT. Krakatau POSCO was started by requirement of Indonesian
government. The government of Indonesia felt a necessity of development of steel in
Indonesia. So, they looked for business partners. In the one of them Indonesia
selected Korea because these government was closed. Basically, this company was
started by project of governments. The government of Korea introduced POSCO
which is the best steel company in Korea to the government of Indonesia which has
PT. Krakatau Steel. After that, POSCO and PT. Krakatau Steel was started to
establish a joint venture company. Because this project was started by the government

of Indonesia, the government of Indonesia used to help this company if there are
problems of administration. This joint venture company is operated by site from PT.
Krakatau Steel and capital & technology from POSCO.
After PT. Krakatau POSCO established, POSCO group thought that POSCO
Research Institute (POSRI) is needed for research of economic situations in Indonesia
besides in China and India. According to this, POSRI Indonesia office was opened in
September 2012. In this office, there are 3 employees, that is, a senior economist who
is in dispatch service of PT. Krakatau POSCO, 2 research assistants (Korean and
Indonesian). The purpose of this office is to collect data of steel industry in Indonesia
and to research Indonesian economic situations which influence to PT. Krakatau
POSCO.
1.2 Indonesian Steel Industry
Steel industry is one of strategic industry which is deeply related with

infrastructure and manufacturing industry .Indonesia is one of the producers of steel
as ranking 36 in the world. Based on 2005~2009, it produces 3.5~4.2 tons per annual.
In Indonesia the target of steel volume is 6~6.5 tons but the deficit of steel is 3~3.5
tons. In 2015 Indonesia can meet all need for consumers. Until now on Indonesia still
import pallet and pig iron. Industry Indonesia relative down because Indonesia still
import for raw material, less supply, standard pricing, environment problem. But, the
resources (iron ore, natural gas, coal, and etc) of domestic market have high potential
business for industry steel. (Indonesia Investment Coordinating Board, ‘Development
of basic metals industry investment report’)
Indonesia’s steel consumption grew robustly by 22.4% y/y to 10.95mn metric tons
in 2011 in line with the growth in domestic steel demand. As the country with the
largest economy and highest population in ASEAN, its share of steel consumption
reached 20.9% making it the top second steel consuming country in the region.
With about 300 domestic players, the steel industry of Indonesia employs more
than 500,000 people and is capable of producing 5.5mn tons of total steel products

annually including hot-rolled steel products (bars, wire rods and plates) and crude
steel products (billet and slab). And more production is expected in the coming years.
Similar to other ASEAN member countries, Indonesia is a big net importer of steel
products as local producers supply only about half of the country’s steel demand. In
2011, imports of total iron and steel products surged 24.5% y/y to 9.7mn tons. The
largest country of origin was Japan, China and Russia.
State-owned PT Krakatau Steel (KRAS) is the largest integrated steel producer in

Indonesia. The steelmaker is capable of producing 2.5mn tons of crude steel and is
the largest producer of Hot & Cold Rolled Coils (HRC & CRC) with a domestic
market share of 41% and 24%, respectively. (Emerging Markets Direct Official
Website)
1.3 Internship Objectives
The objectives of internship program are as follows.

 To understand a situation of practical workplace
 To gain skills and knowledge for working
 To learn about the organizing of a research project (planning, preparation, and

etc.)
 To learn about research methodologies (field methods/methods to analyze data)
 To build a network.
 To know what data or information is needed in order to enter new market in steel
industry of Indonesia
 To know a role of Korea company in steel industry in Indonesia
 To acquire marketing strategic of PT. Krakatau POSCO and plan of product sales.
1.4 Methodology
This report of internship is written by research though collecting data and

interview. First, the collecting data is performed by Internet through various
official website including government official website, association official
website, and company official website. Next, the information of high quality is
gained by interviews with company officials.
1.5 Description of the Internship
1.5.1 Working Period & Hours
Internship program was started from on August 14 for 3 months. It was

finished on November 13. The working hours were from 14.30pm until
18:00pm everyday that is, from Monday to Friday.
1.5.2 Work Place
It worked in POSRI branch office in Indonesia. The office is located in

Krakatau Steel building 9th, Jl. Gatot Subroto, South Jakarta.
1.5.3 Internship Activities
As a Research Assistant it worked for Senior Economist’s task. Task in

office is as follows.
 Research data related current Indonesian economy
 Research steel industry of Indonesian (current situation, analyzing

competitors)
 Research the others industry of Indonesian, which is needed steel

plates (electronics industry, automobile industry, construction industry,

CHAPTER 2
COMPANY PROFILE
2.1 Profile
POSCO Research Institute (POSRI) was founded in 1994 as a research

institute that offers research and consulting. In the late 1990s, POSRI expanded
its research areas to include steel-consuming industries and environment
management.
In the 2000s, POSCO opened offices in Beijing and Delhi, in line with
POSCO’s strategies of enhancing global management and expanding global
production bases. Through these overseas offices, POSRI has strengthened its
regional research and its capacity to collect local information.
POSRI publishes Chindia Quarterly, an English journal that offers in-dept

management analyses and economic forecasts in regards to the steel industry in
China and India. Chindia Quarterly, first published in 2011, is distributed to
academic institutions and companies, to help them understand the markets of
China and India and the steel industry.
Each year, POSRI holds the POSCO Asia Forum in cooperation with the
POSCO TJ Park Foundation, to support research on social and human sciences
in Asia.
In the 2010s, with the increased emphasis on the POSCO Family management
system, POSRI has diversified its research areas to include materials, energy,
and the environment. POSRI supports the POSCO Family in formulating
medium-to-long- term management strategies, and conducts research on new
business. POSRI strives for synergy among the members of the POSCO Family

through the sharing of information using its signature IT information platform.
With the acquisition of POMIC in July of 2012, POSRI continues to grow as

an integrated research institute that offers research, information, consulting, and
education.
POSRI will continue to increase the depth and scope of its research,
contributing to the growth and development of the POSCO Family and Korean
society.
2.2 History
① In 1980: before established POSRI advised consultancy in management and

economics field. Also, POSRI carried out a survey as part of Research
Institute of Industrial Science and Technology. (RIST)
② In 1990: established in basis for research POSRI set up own organization

which has functions as research, analysis, and consulting in the late of 1990.
③ In 2000: for expanding into global POSRI strengthened global research so it

focused in China and India. That’s why POSRI branch was opened in China
and India. Besides, magazine was published.
④ In 2010: POSCO Family management and enhancing Corporate Social

Responsibility because management system of POSCO family was tighten in
field of raw material, energy, environment, and etc, POSRI expanded studies
for helping businesses among POSCO family.
2.3 Vision, Mission, and Core Value
 Vision
: Creative think leader in steel and beyond.

Exhibit 2.1 Vision of POSRI
Source: POSRI Official Website
 Mission
: POSRI contributes to the growth of the POSCO Family and the

development of Korean society by presenting optimal strategies and
policies based on collective intelligence.
 Core Value
① Customer: POSRI puts the highest priority on customers and listens

attentively. POSRI delivers services in Research, Information,
Consulting, Education, with the aim of providing customers with
optimal values.
② Challenge: POSRI demonstrates a strong spirit even in adversity,

formulating creative strategies and policies. POSRI takes on challenges
in a brave and adventurous manner.
③ Execution: POSRI immerses itself in its projects happily and meets

targets set through mutual cooperation. POSRI takes responsibility for
all outcomes.
④ People: POSRI offers equal opportunities to all employees to realize

their potential. POSRI gives consideration to and has faith in each and
every employee.
⑤ Integrity: POSRI pursues honest and transparent management based on a

firm ethical belief. POSRI upholds social responsibility toward all
interested parties.
2.4 Company Structure
Exhibit 2.2 Company Structure of POSRI

Source: POSRI Official Website
① Steel Industry Research Center
: Research on the steel industry, steel marketing and investment strategy-

setting. Research on raw material prices, forecast on price, and demand-
supply of raw materials. Research on the environment, and sustainable
management.
② Regional Studies & Economic Research Center
: Research on emerging markets, including China and India, economic

trend monitoring & in-dept analysis on issues. Analysis on Korean and
overseas policies and issues, response strategy-setting.
③ Corporate Strategy Research Center
: Establishment of vision and medium-to-long-term strategies for POSCO

and its affiliates. Research on industry/ management strategies for POSCO

and its affiliates. Research on energy, green growth business and non-
ferrous materials.
④ Management Consulting Center
: Management diagnosis, corporate governance, labor relations, labor

management, human resource management and policy development,
consultation on corporate innovation & change management.
⑤ Education & Innovation Business Unit
: Planning and operation of professional education and consulting

programs for management innovation and change management,
including leadership, business culture, organization development, Six
Sigma, TRIZ, innovation on the ground.
⑥ Management of Technology Synergy TFT
: Agenda setting for technology management synergy and actual

economy, support for the development of management systems for
POSCO and its affiliates.
⑦ Human Capital Development Strategy Research Team
: Human Resource Development strategy-setting for POSCO and its

affiliates.
⑧ Information Service Division
: System planning & management, analysis and processing of

information on industry/economy/management, information service for
research.
⑨ Planning & Coordination Division
: HRM reform and change management, budgeting/improvement of

research system/project management, procurement/general
affairs/information system/security.

CHAPTER 3
RELATED THEORIES
3.1 Introduction to Business Marketing
3.1.1 The Definition of Term ‘Business Marketing’

Business marketing is marketing products or services to other companies,
government bodies, institutions, and other organizations. Business marketing also
includes the marketing of products and services that facilitate their operations. (F.
Robert Dwyer & John F. Tanner, Jr. ‘Business Marketing’ 4th)
3.1.2 The Importance of Business Marketing

How much salt does the average household in the United States use each year?
Total food-grade salt sales for the United States are 1.33 million pounds annually.
Consumption in the household, however, is 7-8 grams per day per person, which
only equates to 824 thousand pounds. Why difference? The consumption figure
doesn’t count the amount of salt that is in processed foods or foods we purchase
in restaurants. Business purchase and use over 500,000 pounds of food-grade salt
per year, or almost 40 percent of total salt sales, for such purposes as making
pickles, breakfast cereals, and other food products. Add to this amount the volume
of industrial-grade salt, and the industrial purchases of salt tower over consumer
purchases. (F. Robert Dwyer & John F. Tanner, Jr. ‘Business Marketing’ 4th)
3.1.3 How Business Marketing is Unique

 Buyer-Seller Relationships
In consumer markets, there are few industries where close personal

relationships exist between buyer and seller. Perhaps in those instances
where personal selling is the most important element of the marketing
mix and where customer service is also important, relationships between
buyer and seller may exist. These situations, however, are rare.

In business marketing, situations where strong personal and business
relationships grow between buyer and seller are not as rare. The strategic
importance of many purchases is too great for companies to always shop
around when making a purchase; they need to make absolutely sure that
the product fits their needs and that it will be available when needed at the
right cost. Therefore, many companies enter into long-term contracts, build
relationship that enable buyers and sellers to plan jointly, and work to
secure the future for both companies. (F. Robert Dwyer & John F. Tanner,
Jr. ‘Business Marketing’ 4th)
 Shorter Distribution Channels
In most cases, distribution channels do not include anyone between the

manufacturer and the customer who uses the product, or user. Many
manufacturers sell directly to the user, which reflects a large difference
between business marketing and consumer marketing. In situations where
industrial distribution are used, there are still fewer steps between the
consumer and manufacturer.
Shorter channels contribute to the closer relationship between
manufacturer and buyer. Buyers can have more direct input into the
product planning process. Direct relationships between various functional
areas within both companies can result; for example, the accounts
payable department of the buyer may talk directly with the billing
department of the seller if problems arise. (F. Robert Dwyer & John F.
Tanner, Jr. ‘Business Marketing’ 4th)
 Emphasis on Personal Selling
Stronger relationships and shorter channels are two reasons why there
is a greater emphasis on personal selling in business marketing. Direct
communication between buyer and seller also increases the need for
strong personal selling, because someone is needed to coordinate that

communication. Salespeople are the members of the organization
responsible for coordinating their company’s efforts at satisfying their
customers. That responsibility is greater when the organization is
concerned about creating and maintaining partnerships with its customers.
Complex buying procedures involving many members of the buying
organization also require personal selling. Only through personally
getting to know each individual and coordinating the sales-purchase
process can a business be successful. Multiple personal relationships can
strengthen organizational relationships, and these relationships are the
responsibility of the salesperson.
A customer’s size and a direct channel also influence business
marketing by increasing the importance of negotiation. Large orders sold
directly by the manufacturers to the user or OEM (Original Equipment
Manufacturer) buyer increase the likelihood of negotiation because
changes can be made to the product and price. There is greater flexibility
in the seller’s offering, increasing the potential for negotiating the final
deal and adding to the importance of personal selling. (F. Robert Dwyer
& John F. Tanner, Jr. ‘Business Marketing’ 4th)
 Greater Web Integration
One unique aspect of business marketing is how the Web is used. The
Web becomes the backbone of a supplier/customer communication
network that enables customers to track shipment information, order
products at prices and terms agreed to by the salesperson and buyer, and
access other account information that helps manage the supply process. (F.
Robert Dwyer & John F. Tanner, Jr. ‘Business Marketing’ 4th)
 Unique Promotional Strategies
The complex buying process and inclusion of several people from

different functional areas impact the business marketing promotional

strategies, too.
Each different department may have a separate set of needs and
interests, which may influence how marketers promote their products.
Additionally, consumers can go to shopping malls for their purchases.
Few business shopping malls exist, so trade show or expositions are
created. These shows last for a few days and bring together buyers from
all over the world. (F. Robert Dwyer & John F. Tanner, Jr. ‘Business
Marketing’ 4th)
3.1.4 Business Markets

 Types of Business Customers
 Original Equipment Manufacturers
: When a company purchases a product or service to be included in

its own final product, the company is called an original equipment
manufacturer (OEM).
 Users
: User is the business equivalent of the final consumer.

 Government Agencies
: The purchasing processes used by the government can be frustrating

and complex, particularly because the government seeks to
accomplish social objectives through purchasing. Policies designed to
encourage the growth of minority or women-owned businesses as
well as small businesses are example of social objective policies that
influence government purchasing.
 Institutions
: Institutions include organizations such as schools, hospitals and

nursing homes, churches, and charitable organizations. Some of these
organizations may use purchasing procedures similar to those utilized
by government agencies, whereas others may follow less

standardized procedures.
 Industrial Distributors
: Industrial distributors are those organizations that supply industrial

companies with products and service.
(F. Robert Dwyer & John F. Tanner, Jr. ‘Business Marketing’ 4th)
 Types of Products
 Raw Material
: Raw materials are products from extractive industries, such as

mining, forestry, fishing, and agriculture. Examples would be coal,
iron ore, crude oil, sea salt, timber, fish, meat, corn, wheat, copper,
sand, limestone, lead, silver, gold, wool, cotton, and many more. All
products originate within the raw material’s spectrum. Many man-
made products, such as plastics or glass, had their start in crude oil or
sand. These products may be sold as OEM components, or as end-
user supplies.
 Installations
: Installations are capital goods that have to be installed on the

customer’s premises. A drop forge, a large industrial robot, a machine
tool, a large planer, an overhead crane, and a mainframe computer are
examples of installations.
 Auxiliary Equipment
: Auxiliary equipment would include small, portable equipment, such

as typewriters, personal computers, electric saws, grinders, routers,
gauges, electronic test equipment, and drills. OEMs, and-users, and
distributors would purchase these items.
 Component Parts
: Also called subassemblies, these parts are incorporated into an

OEM’s finished product, which is resold down the channel. They can
be electronic assemblies, gears, switches, tires, motors,
microprocessors, and light bulbs, to name a few.
 Processed Materials
: Product that could not be considered component parts occupy this

classification. Typical of this group would be plastics, sheet steel,
chemicals, lubricants, abrasives, filters, glass, leather, boxboard,
plywood, and various hydrocarbon products. These products are used
in the manufacturing process, which often causes them to wear out
and requires replacement, repair, or restoration.
 Supplies
: Supplies are used during the operation or production phase. Towels

for the washroom, paper, pencils, pens, carbon paper, computer
diskettes, marginal punched computer paper, work gloves, safety
glasses, uniforms, wipes, and hard hats are considered supplies.
Frequently, industrial supplies are handled by specialized supply
houses or by industrial distributors.
 Industrial Services
: These services are sufficiently important to be classified

separately. They include legal services, financial services, training,
educational services, marketing research, advertising consultation,
and management and marketing consulting.
 Size and Location of Customers
Size and location of customers create unique challenges for business

marketers that are not faced by those who market directly to customers.
Business customers are larger than individual consumers, so each
business customer is more important to the financial success of the

business marketer. At the same time, there are fewer individual business
customers.
Business customers are also more likely to be geographically
concentrated. Industries tend to arise around key resources.
At the same time that business markets tend to be geographically
concentrated, they are also globally oriental. Because customers are
fewer in number and tend to be larger and geographically concentrated in
various parts of the globe, competition for business tends to be more
global. (F. Robert Dwyer & John F. Tanner, Jr. ‘Business Marketing’ 4th)
 Purchasing Standards and Processes
 Strict Standards
: Business buyers apply strict performance standards to their

purchases. Professional purchasers and multiperson buying teams
have formal responsibility for product and vendor evaluation. Inputs
often must conform to design specifications, cost constraints,
delivery windows, and the like.
 Purchasing Process
: The larger number of people involved in organizational purchasing

contrasts sharply with typical household buying. Within families,
purchasing roles are more flexible, often arising from implicit
negotiation, expertise, and habit, Although in both cases, someone
may purchase a product for use by someone else, the sheer size and
complexity of organizations and number of people involved often
lead to a more complex purchasing process.
Furthermore, many organizational controls are in place to assist
professional purchasers-and evaluate them.
 The Nature of Demand

 Derived Demand
: Derived demand is demand for their products and service is derived

from the demand for their customers’ products and services.
For suppliers to manufacturers of consumer products, the issue of
derived demand may not be too great. In this situation, there is
virtually a one-to-one relationship; for every consumer product
purchased, there is a one-to-one relationship with the supplier of a
component of that product.
 Joint Demand
: Joint demand, in contrast to derived demand, is a relatively simple

concept to understand. Joint demand refers to situations where two
products are used together and are demanded together.
Joint demand can create especially difficult marketing challenges
for technology based products because the company is dependent on
the technology.
3.2 New Market
3.2.1 The Business Marketing Research Process
 Step1: Justify Need for Data
Before any research can be started, the company managers must

establish the need for the information. Research is expensive and time
consuming. The collection of data to simulate or give the illusion that
progress is being made is unpardonable. It occurs when fuzzy objectives
and fuzzy information needs are used. Reports that used to be due every
three months may be demanded every day, for example. Nobody asks of
this added knowledge generates new output.
 Step 2: Establish Research Objectives

The second step is a statement of the research objectives or problem
definition and the specific information that is needed to achieve these
objectives. Both tasks give direction and purpose to the research.
 Step 3: Determine Sources of Data
The third step is to determine the secondary data sources available.

These sources could include both internal and external sources to the firm.
Previous research work, company records, commercial trade magazines,
journal articles, industry reports, government reports, and other
secondary sources are some of the best secondary sources. If sufficient
data are not provided by the secondary sources, primary sources have to
be tapped. Primary data may be collected by mail, telephone, personal
interviews, observation, experimentation, technical focus research,
attitude research, and simulation.
 Step 4: Develop Research Instruments
The fourth step and subsequent steps in the marketing research process
are related to developing new data. Data collection forms, research
instruments, or personal interview questionnaires have to be developed.
This is a most critical step since the use of improper forms or poorly
worded questions could damage the integrity of the data collected,
generating dirty or distorted data.
 Step 5: Sample Design
Sample design is the fifth step. A clear definition of the total

population of the universe to be determined and a sample characteristic of
this universe must be drawn. Usually probabilistic or non probabilistic
samples are taken depending upon the data’s availability. The correct size
of that sample is important because it affects the accuracy of the
subsequent research

 Step 6: Data Correction
The sixth step is the data collection process, which can account for
many of the errors that exist in marketing research. The human factors of
perception, memory, interpersonal relationships, ethnocentrism, and basic
communications may help to distort data collection.
 Step 7: Data Processing
Data processing is the seventh step. It includes editing and coding of

the data so the data can be easily analyzed to develop meaningful results.
After editing and coding, the data are ready for tabulation either by hand
or by computer. Computers, even PCs, are most helpful for the smallest
projects.
 Step 8: Data Analysis
Once tabulated, the data are analyzed to determine the results. This is
an attempt to make the analysis consistent with the objectives and
informational needs discussed in step two. Caution must be taken to
separate useful data from illusions. Frequently, a reexamination of the
questions asked will uncover some interesting results. Superfluous
information may have been generated. The respondents may have given
answers to questions about which they had little or no knowledge. Many
software packages exist that are used in this step, but one of the notable
one is called MIDAS, an acronym for Market Image Data Analysis
System. Companies can build the system themselves using a combination
of hardware and software, according to the developers. This type of
system use Express, Metaphor, and SPSS software.
 Step 9: Presentation of Research Results

The ninth and last step in the marketing research process is the
presentation of the results to management, via oral and written
communications. Regardless of the accuracy and scholarly attributes of
the research, the research and subsequent analysis is no better than its
presentation to marketing managers. Communication of results is the key
to effective marketing research. Many well-researched and well-analyzed
projects have been stymied because of a poor or inadequate presentation
to management. Conversely, some well-presented projects, not as well
researched and analyzed, have been enthusiastically received by
management.
(Robert W. Eckles, ‘Business Marketing Management’)
3.2.2 The Strategic Marketing Plan
 Step 1
Formulate the mission/goal statement.

 Step 2
Prepare a detailed market analysis, which includes competitor’s

strengths, weaknesses, and strategies, and economic, legislative, and
regulatory trends affecting the company, its customers, and its
competitors.
 Step 3
Analyze the SBU strengths, weaknesses (which includes its products,

pricing distribution, and promotion programs).
 Step 4
Formulate the marketing objectives, strategies, and implementation

tactics essential to the plan.

 Step 5
Examine the human and financial resources required to achieve the

objectives. If a shortfall in resources occurs, objectives, strategies, and
tactics are reviewed and redesigned to fit the limited resources.
 Step 6
Compare the revised objectives to the long-term mission/goal statement

to ensure objectives are compatible with the company’s expected long-term
direction and market opportunities.
(Robert W. Eckles, ‘Business Marketing Management’)

CHAPTER 4
DATA AND ANALYSIS
4.1 Business Marketing in Practice
Based on Chapter 3, business marketing has 5 unique characteristics: a) buyer-

seller relationships, b) shorter distribution channels, c) emphasis on personal
selling, d) greater web integration, and e) unique promotional strategies .How can
these theories be applied in practice?
First, in practice of buyer-seller relationships, it is different relationship
compared with B2C marketing. Usually, in B2C marketing buyers don’t need to
order products to sellers. But, in B2B marketing buyers need to order products to
sellers. In case of PT. Krakatau POSCO, PT. Krakatau POSCO’s customers have
to request order to PT. Krakatau POSCO in detail.
Second, in practice of shorter distribution channels, buyers deal directly with
sellers. So, there are no middlemen for supply. In case of PT. Krakatau POSCO,
PT. Krakatau POSCO’s customers keep in touch with PT. Krakatau POSCO
directly for order or PT. Krakatau POSCO keep in touch with their customers.
Third, in practice of an emphasis on personal selling, B2B companies focus on
this marketing tool among many marketing tools. In case of PT. Krakatau POSCO,
marketing managers of PT. Krakatau POSCO have a close association with
buyers each company. For example, marketing managers of PT. Krakatau POSCO
visit customers’ company. In addition, through a meeting they decide quantity of
order or types of products.
Fourth, in practice of greater web integration, several websites which are
related with steel industry exist for their communities. There are 2 websites:
South East Asia Iron & Steel Institute (SEASI) and World Steel Association
(WSA). Through these websites, many steel companies interact information
exchanges each other and acquire up-dated news in industry.
Fifth, in practice of unique promotional strategies, marketing events are held as

a promotion. In case of PT. Krakatau POSCO, on December 2013 PT. Krakatau
POSCO invited their customers to marketing event in plant in Cilegon, Indonesia.
By this marketing event, PT. Krakatau POSCO improves their reliability to their
customers and increases the level of closeness with their customers for
maintaining good relationships.
In practice, it can be found features of business marketing as above. According
to this, B2B marketing is definitely different from B2C marketing.
4.2 The Company Profile of PT. Krakatau POSCO
4.2.1 The Introduction of PT. Krakatau POSCO
PT. Krakatau POSCO is a Joint Venture Company between PT.

Krakatau Steel Tbk and POSCO Korea that have experience on steelmaker
manufacturing. It is expected to start production early 2014 to early stage
development. Construction of the plant construction began on July 1, 2011,
marked by the erection of the project’s first pole in the region Cilegon,
Krakatau Steel Industry, which was attended by Vice President Boediono.
PT. Krakatau POSCO will reach capacity total about 6 million tons/year
(Phase I: 3million tons/year). PT. Krakatau POSCO area is 388 hectare in
Krakatau Industrial Estate Cilegon (KIEC), Indonesia. Products of the
company will consist of slab, plate (Phase I) and Hot Rolled Coil (Phase
II).
4.2.2 The History of PT. Krakatau POSCO
 Year 2008
 Feb. 10: Basic Agreement between Government
 Oct. 22: MOU between POSCO and PT. Krakatau Steel
 Year 2009
 May. 31: Completion of Preliminary Feasibility Study

 Oct. 31: Completion of Feasibility Study
 Dec. 2: MOA between POSCO and PT. Krakatau Steel
 Year 2010
 Aug. 4: JVA between POSCO and PT. Krakatau Steel
 Aug. 26: Establishment of JVCo
 Oct. 28: Commencement of Ground Breaking Work
 Dec. 8: Founding Shareholders Meeting.
4.3 The Data of Competitors of PT. Krakatau POSCO
4.3.1 PT. Krakatau Steel
Established Year Year 1970

President Director Irvan Kamal Hakim
Product Hot Rolled Coil (HRC)/plate, Cold Rolled Coil
(CRC)/sheet, wire rod
Capacity 2.45M tons/year
Sales USD 2, 287, 445,000 (based on 2012)
Location  Head Office
Jl.Industri No.5 P.O. Box 14, Cilegon, Banten
42435, Indonesia
 Marketing Office
Gedung Krakatau Steel, 4th floor, Jl.Gatot
Subroto Kav.54, South Jakarta, Indonesia
Contact  Head Office
Tel: +62 254 392 159, 392 003 (hunting)
Fax: +62 254 372 246, 395 178
 Marketing Office
Tel: +62 21 522 1255 (hunting)

Exhibit 4.1 Summary of PT. Krakatau Steel
Source: PT. Krakatau Steel Official Website
In the era of 1960, President Soekarno launched Trikora Iron Steel Project as a
foundation of firm national industries. Ten years ahead, on 31 August 1970, PT.
Krakatau Steel was established by utilizing materials of Trikora Iron Steel
Project such as steel wire mill, steel bar mill and steel section mill plants.
In 1977, President Suharto initiated the first operation of the largest steel
producer in Indonesia.
Krakatau Steel, the company engaging in the steel industry, has shown its
significantdevelopment. In less than ten years, the company has added
its production facilities such as Sponge Iron Plant, Steel Billet Plant, and Wire
Rod Plant, as well as infrastructure facilities of electricity power and
Water Treatment Plant, Cigading Special Port and telecommunication system.
This development leads PT. Krakatau Steel to become the only integrated
steel company in Indonesia.
Furthermore, the company proceeds to expand its production of various steel

products for numerous consumptions, such as hot and cold rolled coils as well as
wire rods. At the moment, Krakatau Steel has a current production capacity for
crude steel of 2.45 million tons per year to support its steel production. Together
with its ten subsidiaries, Krakatau Steel has diversified into supporting business
which generate various high-added-value steelproduction (such as spiral and
ERW pipes, steel bar and steel section), provides utility industry (water and
electricity), infrastructure industry (port and industrial estate), EPC (Engineering
Procurement and Construction) services, information technology and medical
services (hospital). All products are aimed at fulfillingnational steel needs and
also marketing worldwide.
Since early years, Krakatau Steel’s technical expertise has acknowledged

pursuant to international standards. In fact, the company obtained the ASTM
A252 and AWWA C200 in 1973, as well as API 5L for the production of spiral

pipes in 1977. In 1993, PT. Krakatau Steel was awarded the ISO
9001 certification which had been upgraded to the ISO 9001:2000 in 2003. In
1997, SGS International awarded another ISO certification (the ISO 14001)
for company’s commitment to environmental awareness and safety occupation.
On 10 November 2010, amidst volatile market conditions, PT. Krakatau Steel

succeeded to become a Public Company by carrying out Initial Public Offering
(IPO) and listed its stock on the Indonesia Stock Exchange. In 2011, PT.
Krakatau SteelTbk. booked its net revenue of Rp17.9 trillion and net income of
Rp1.02 trillion. In the same year, the Company and its Subsidiaries with Rp21.5
trillion assets employed 8,023 people.
4.3.2 PT. Gunung Steel

President Director DjamaluddinTanoto
Product Angle (HR), cell form, H-beam, honey comb, king
cross, queen cross, T-beam, wide flange beam
(IWF)
Capacity 1, 950,000M tons/year
Sales -
Location  Representative Office
Jl. PangeranJayakarta 105 G, Jakarta 10730,
Indonesia
 Head Office & Factory
JL.ImamBonjol IV, WarungBongkok,
Kp.Tangsi RT.004/RW.006, Ds. Sukadanau,
Kec. Cikarang Barat,
Kab. Bekasi 17520, West Java, Indonesia
Contact  Representative Office
Tel : +6221629 8031
Fax. : +62 21649 2734

 Head Office & Factory
Tel: +62 21 8900111 (Hunting)
Fax: +62 21 8900555
Exhibit 4.2 Summary of PT. Gunung Steel
Source: PT. Gunung Steel Official Website
From the humble beginning of a small welding workshop in Medan, Sumatra

Utara, this company has now become the major player in steel industry in South
East Asia. Formed on 1986, Gunung Steel Group (GSG) was formally known as
Gunung Garuda Group and group’s name change to Gunung Steel Group in 2001.
At the starting of this company, Gunung Steel Group produces hot rolled steel
profiles, and has gradually added a range of different profile beams into their
product lines under PT. Gunung Garuda. After successfully produce profile beam
products, this group later expands into flat steel products in the early years of
2000s, producing variety grades of hot rolled coils and plates (sheet). With more
than 27 years of experience in the steel industry, PT. Gunung Steel has the ability
to produce 1.950.000 metrictonnes of steel per year and they are currently
expanding their capacity and capability in response to the better outlook of
Indonesia’s development by being the most comprehensive integrated steel mills
in Indonesia.
All of their operation process is handled and controlled by experts from

Indonesia that has many years of experience in the steel industry, ensuring that
they are able to maintain our commitment to quality and reliability. PT. Gunung
Steel Group is located in Cikarang Barat, West Java Province, Indonesia. They
combined head office and mills are located in the same complex area covering
over 200 hectares. With these combinations in the same area enables them to
effectively manage and execute their production and services processes with the
maximum efficiency.
4.3.3 PT. Ispat Indo

President Director Baldeo Prasad Banka
Product High carbon steel wire rod, low carbon steel wire
rod, cold heading quality steel wire rod, welding
electrode grades steel wire rod, bar in coil for
concrete reinforcement
Capacity 700,000 tons/year
Sales -
Location  Plant & Office
Desakedungturi, Taman, Sidoarjo, PO BOX
1083, Surabaya, Indonesia
 Corporate Office
Berkeley Square House, 7th floor, Berkeley
Square, London WIJ 6DA, United Kingdom
Contact  Plant & Office
Tel: +62 31 788 7000
Fax: +62 31 788 7500
 Corporate Office
Tel: +44 207 629 7988
Fax: +44 207 629 7993
Exhibit 4.3 Summary of PT. Ispat Indo
Source: PT. Ispat Indo Official Website
PT. Ispat Indo was established in Indonesia in 1976. The company was set up
as a 60,000 tpa Greenfield project, for rolling. Today, PT. Ispat Indo has an
annual production capacity in excess of 700,000 tons.
The company manufactures a wide range of low and high carbon grades of
billets, wire rods and bars using approximately 65% scrap and 35% of DRI/Pig
Iron. The mix varies according to the grade of steel produced.

PT. Ispat Indo has a strong foothold in neighbouring markets and is
strategically well positioned for trading throughout the world. It sells
approximately 70% of its products to the domestic market and about 30% to the
export markets of the fast growing Asia-Pasific region. It is the largest wire rod
producer in Indonesia with the highest market share. PT. Ispat Indo is known for
the shortest delivery period with highly flexible product mix at the most
competitive prices.
The products of PT. Ispat Indo are an outcome of the most modern facilities of
steelmaking through the electric arc furnace with slag free eccentric bottom
tapping, secondary metallurgy and continuous casting for clean steels. It followed
by rolling in the state of the art automated mill with controls for better
metallurgical properties. Goods are under close supervision for quality control
and testing at each stage of process with complete identification and traceability
of each coil dispatched to the customers.
4.3.4 PT. Gunawan Steel

President Director Tetsuro Okano
Product 1. Low carbon structural steel plates, high strength
low alloy structural steel plates, hull structural steel
plates (mild steels), high strength hull structural
steel plates (high tensile steels)
Capacity -
Sales IDR 1 trillion (2013)
Location Jl. Margomulyo No. 29 A, Tandes, Surabaya
60183, Indonesia
Contact Tel: +62-31 749 0598
Fax: +62-31-749 0581, 7481939
Exhibit 4.4 Summary of PT. Gunawan Steel
Source: PT. Gunawan Steel Official Website

PT.GunawanDianjaya Steel Tbk (GDS) was established in 1989 on Surabaya
pursuant to Notarial Deed No.6 dated April 8, 1989 of public notary
JamilahNahdi, SH. The deed has been approved by the Minister of Justice of
Republic of Indonesia in its decision letter No. C-2.11174.HT.01.01.Th.1989
dated December 11, 1989. The Articles of Association have been amended
several times. The latest amendment was made by public notary Dr.
IrawanSoerodjo SH, M.Si. No.73 dated July 16, 2009. The deed has been
approved by Ministry of Law and Human Rights of the Republic of Indonesia in
a decree letter No. AHU-35724.AH.01.02 dated July 28, 2009 and was published
in the State of Gazette No.65 dated August 6, 2010. PT.GunawanDianjaya Steel
Tbk. engages in hot rolled steel plate industry with 60% major market share for
export and the rest for the domestic market. Resided on approximately 20 acres
area, GDS commenced its commercial production since the end of 1993.
Since its establishment, GDS continues to realize commitment on growth
through sustainable innovation. Backed by the latest high rolling technology and
quality human resources, GDS maintains growth and faces challenges in global
steel industry. Proven to date, GDS is one of the leading steel plate rolling mill
industries in ASEAN.
4.3.5 PT. The Master Steel

President Director DiahSoembedi
Product Wire rod, bar, ibeam, upn channel, equal angle
Capacity 1.5M tons/year
Sales -
Location  Sales Office
JL. PangeranJayakarta 107, Jakarta Pusat,
Indonesia
Contact Tel: +62-21639 3608
Fax: +62-21 659 7766

Exhibit 4.5 Summary of PT. The Master Steel
Source: PT. The Master Steel Official Website
The Master Steel Mfg was established in 1972 as one of the pioneers in steel-
making and rolling in Indonesia. The first steel plant was initially set up as a
green-field project on twelve hectares of land in Pulogadung, East Jakarta. As
one of the earliest industrial estates, Pulogadung lies in close proximity to the city
center as well as to TanjungPriok port, making it the most strategic industrial area
in Jakarta.
ISO 9001:2008 certified company currently operates four major steel plants
with combined capacity of 1.5 million tpa, occupying more than one hundred
hectares of land in Jakarta and Gresik (East Java), employing more than five
thousand people working around the clock on a three-shift production schedule.
PT. The Master Steelis looking forward to reaching more than two million tpa
capacity by 2014 with the on-going modernization and expansion project of the
new state-of-the-art 600,000 tpa bar mill, 500,000 tpa wire-rod and bar combi-
mill.
PT. The Master Steel products have been used extensively in most
construction projects and other applications throughout the Indonesian
archipelago as well as acknowledged and approved by the international market,
including The Civil Engineering Department of Geotechnical Engineering
Office in Hong Kong and the Housing Development Board of Singapore.It also
export our world-class products to neighboring Asian countries like Singapore,
Hong Kong, Vietnam, and Cambodia, also reaching Australia, USA and the
Middle-East region.
4.3.6 PT. Essar Indonesia

President Director K.B. Trivedi

Product  Soft product: tubes and pipes , enamelware,
furniture and panels , drums and cans,
automotive parts , electrical appliances
 Hard product: galvanized roofing, strapping,

tubing
 Galvanized product
- Building: roofing, siding, ceiling, gutter, floor

decking, partitious, ducking, fence, trusses
- Automotive: automotive heat shields, bus
bodies, muffles, air and oil filters, wheel rim
- Colour coating: colour coating of panels,
multifarious profiles
- White goods: refrigerators, washing machines,
air conditioners, cable cover
- Office equipment: filing cabinets, locker, show
cases
Capacity 400,000 M tons/year

Sales -
Location  Reg. Office & Plant
BekasiFajar Industrial Estate
Industri 3 Area Kav #B1
Cibitung, Bekasi - 17520,
West Java - Indonesia
 City Office
19th Floor, MenaraKarya Building
Jl. H.R. Rasuna Said Block X-5 Kav. 1-2,
Jakarta - 12950, Indonesia
Contact  Reg. Office & Plant

Tel: +6221 8980152
Fax: +6221 8980150 – 51
 City Office
Tel: +6221 57944800
Fax: +622157944811
Exhibit 4.6 Summary of PT. Essar Indonesia
Source: PT. Essar Indonesia Official Website
PT.Essar Indonesia commenced its commercial operations in 1997 and it is the

largest producer of Cold Rolled Steel in the private sector in Indonesia.
Equipped with state-of-the-art technology, it is located at MM 2100 Industrial

Estate, a world class infrastructure and facility, 25 Km on the Jakarta-Cikampek
highway with close proximity to its customer base and raw material suppliers,
catering diverse market segments with exacting international quality standards of
the domestic and international market and a wide customer base in Indonesia and
other countries.
With an Installed rolling capacity of 400,000 MT per annum including 150,000

MT per annum of galvanized products and 100,000 MT per annum of CR Soft
products, PT EssarIndonesia plans to focus on value added soft CR products.
4.3.7 PT. Bluescope Indonesia

President Director Andrew Heycott
Product ABADI steel, ANCOR steel, Clean COLORBOND
XRW, Clean COLORBOND ULTRA, Clean
COLORBOND CRP, Clean COLORBOND, Clean
COLORBOND XPD, GALVALUME MFG steel,
GEMILANG steel, INDAH steel, INTERIOR
steel, PELANGI steel, PERISAI steel, TANGGUH

steel, TEXTURA steel, ZINCALUME steel,
ZINCALUME ULTRA steel
Capacity -
Sales -
Location BRI II Building 9th Floor, Suite 902
Jl. Jendral Sudirman No. 44-46
Jakarta 10210 - Indonesia
Contact Tel: +6221 578 54150
Fax: +6221 578 54151
Exhibit 4.7 Summary of PT. Bluescope Indonesia

Source: PT. Bluescope Indonesia
PT. BlueScope Steel Indonesia was established in 1995 and is the one and only
local manufacturer of zinc/aluminum metallic coated and prepainted steel.
Theyproduce high quality ZINCALUME® steel and Clean COLORBOND® steel,
which provides solutions against tropical staining.
September 2, 1993 was a historical day for BlueScope Steel Limited and
BlueScope Steel Indonesia, as it marked the commencement of flat steel metallic
coating and painting facilities construction in the Cilegon Industrial Complex,
Banten.
The factory was inaugurated on October 13, 1995, making us the only local
producer of zinc/alumunium coated steel in Indonesia. As they grew from
strength to strength, they established sales and marketing offices in three major
cities; Jakarta, Surabaya and Medan.
For over one decade, they have successfully operated in Indonesia based on
OUR BOND, the guiding principles.
4.4 The Marketing Plan of PT. Krakatau POSCO
4.4.1 Marketing Strategies and Programmes for Thicker & Wider

A. Shipbuilding
 Market and product scopes
 To penetrate large shipbuilder especially for new birth
 To fullfil all grades of ship plate with wider plate of 7 – 8 feet with
all thickness
 Geographical scopes
 To dominate Batam market and penetrate large shipyard in Greater
Jakarta, Semarang & Surabaya
B. General Structures
 To provide large fabricators or workshop
 To fullfil all grade especially grade A36/SS400 or equivalent and
above with thickness range more than 12 mm or width more than
2,000 mm
 To dominate marine/heavy fabricators in Batam and in greater
Jakarta,Cilegon, Medan, Surabaya, & Balikpapan.
C. Heavy Equipment
 To develop potential demand and intensely focus to supply
heavyequipment manufacturer which will make parts and
component,especially use plate for grade SS 400 and above with
thickness range more than 12 mm or width more than 2,000 mm
 Geographical scope
 To cover largely greater Jakarta
4.4.2 Marketing Strategies and Programmes for Overlapping Size

A. Shipbuiding

 To penetrate small and medium shipbuilder including ship repairing.
 To provide ship plate with thickness 6-12 mm and width 5 & 6 feet.
 To cover entirely at domestic market (Java, Kalimantan, Sulawesi)
excluding Batam market.
B. General Structures
 To penetrate small and medium shipbuilder including ship repairing.
 To provide ship plate with thickness 6-12 mm and width 5 & 6 feet.
 To cover entirely at domestic market (Java, Kalimantan, Sulawesi)
excluding Batam market.
C. Heavy Equipment
 To supply part and component makers for heavy equipment with
steel plate of SS 400 and above with thickness range from 6 mm up
to12 mm and width up to 2,000 mm
 Geographical scope
 To cover largely greater Jakarta
4.5 The Expected Customers of PT. Krakatau Steel

4.5.1 The Industry of Automotives
 PT. Toyota Astra Motor
 PT. Honda Prospect Motor Indonesia
 PT. Krama Yudha Tiga Berlian Motors
 PT. Suzuki Indonesia
 PT. Astra Daihatsu Motor Indonesia
 PT. Nissan Motor Indonesia
 PT. Isuzu Astra Motor Indonesia

4.5.2 The Industry of Electronics
 PT. LG Electronics Indonesia
 PT. Samsung Electronics Indonesia
 PT. Panasonic Gobel Indonesia
 PT. Toshiba Visual Media Network Indonesia
 PT. Sharp Electronics Indonesia
 PT. Hartono Sales Indonesia (Sanyo Sales Indonesia)
 PT. Maspion Group
 PT. Istana Argo Kencana (Sanken)
 PT. Media Electronics Indonesia
4.5.3 The Industry of Constructions

 PT. Adhi Karya
 PT. Pembangunan Perumahan (PP)
 PT. Wijaya Karya
 PT. Hutama Karya
 PT. Total Bangun Persada
4.5.4 The Industry of Heavy Equipments

 PT. Caterpillar Indonesia
 PT. Hitachi Construction Machinery Indonesia
4.6 The Research for Demand & Supply

4.6.1 Survey: South East Asia Iron & Steel Institute (SEASI)
 The Introduction of SEASI
The South East Asia Iron and Steel Institute (SEAISI)was

incorporated in 1971 under the auspices of the United Nations
Economics Commission for Asia and the Far East (ECAFE). It is
registered as a limited company in the Republic of Singapore. Previously

in Singapore and then Manila, the Secretariat is now permanently based
in Shah Alam, Malaysia.
SEAISI is a technical institute and its main objective is to promote the

iron and steel industry in the South East Asian region. It achieves its
objectives by facilitating technology transfer from around the world,
especially from Australia, Japan, Korea and Taiwan. SEAISI organizes a
major international conference and exhibition every year and amongst its
publications are the Statistical Year Book, the Steel Quarterly Journal
and the monthly newsletter.
SEAISI enjoys a large membership base with members coming from

all parts of the world, including some leading steel companies and
material suppliers and equipment suppliers.
 Data Collecting
 Overview of Steel Consumption Pattern

 Analysis of Steel Consumption in ASEAN Member Countries
 Scrap Demand in ASEAN Countries
 Steel Structure
 Major Economic Indicators
 Annual Statistics
 Crude Steel Production
 Total Production of Hot Rolled Steel Products
 Total Production of Finished Products
 Apparent Steel Consumption of Total Steel Products
 Total Import of Iron & Steel Products
 Total Export of Iron & Steel Products
 Production
 Consumption Statistics
 Import Statistics
 Export Statistics

 Production, Consumption and Trade Statistics by Country
: Australia, Indonesia, Japan, Korea Rep. of, Malaysia, Philippines,
Singapore, Taiwan, Thailand and Vietnam
 Scrap Demand & Supply and Trade Statistics
 Scrap Demand & Supply
 Scrap Imports
 Scrap Exports
4.6.2 Survey: Statistics Indonesia (BPS)

 The Introduction of BPS
Badan Pusat Statistik (BPS-Statistics Indonesia) is a Non-
Departmental Government Institution directly responsible to the
President. The BPS is instituted by Law Number 16, 1997 on Statistics;
Government Regulation Number 51, 1999 on Statistics Undertakings;
Presidential Decree Number 166, 2000 on Status, Task, Function,
Authority, and Organizational Structure of the Non- Departmental
Government Institution; Presidential Decree Number 178, 2000 on
Organizational Structure and Task of the Non-Departmental
Government Institution; Presidential Decree Number 163, 1998 on
College for Statistics; Executive Act Number 001, 2001 on The
Organization and Task of the BPS; Executive Act Number 101, 1998 on
The Organization and Task of College for Statistics. Previously, BPS
was Biro Pusat Statistik or Central Bureau of Statistics (CBS) instituted
by Law Number 7, 1960 on Statistics.
The aforementioned law, and decree stipulate functions to be
performed by BPS, as follows:
 To provide data to the government, and public.

The data is derived from its comprehensive statistical activities,
comprises of periodic information on structure and growth of
economy, social change, and development. Those statistics may be

derived from its own researches and surveys as well as from other
government department as secondary data.
 To assist statistics divisions of government departments and other
institutions, in developing statistical system, needed to setup work
program and periodic reporting scheme.
 To develop and promote standards to be incorporated in the
implementation of statistical techniques and methods, and to provide
necessary services in the field of education and training in statistics.
 To establish cooperation with international institutions and other
countries for the benefit of Indonesia's statistical development.
 Data Collecting
 Gross Domestic Product at current market prices by industrial origin,

2004-2012
 Gross Domestic Product at 2000 constant market prices by industrial
origin, 2004-2012
 Percentage distribution of Gross Domestic Product at current market
prices by industrial origin, 2004-2013
 Growth rate of Gross Domestic Product at 2000 constant market
prices by industrial origin (percent), 2004-2012
4.6.3 Survey: World Steel Association (WSA)
 The Introduction of WSA
The World Steel Association was founded as the International Iron

and Steel Institute on 19 October 1967. It changed its name to the World
Steel Association on 6 October 2008.
World steel is a non-profit organization with headquarters in Brussels,

Belgium. A second office in Beijing, China, opened in April 2006.

The World Steel Association (world steel) is one of the largest and
most dynamic industry associations in the world. World steel represents
approximately 170 steel producers (including 17 of the world's 20
largest steel companies), national and regional steel industry associations,
and steel research institutes. World steel members represent around 85%
of world steel production.
World steel acts as the focal point for the steel industry, providing
global leadership on all major strategic issues affecting the industry,
particularly focusing on economic, environmental and social
sustainability.
World steel promotes steel and the steel industry to customers, the
industry, media and the general public. It assists its members to develop
the market for steel. World steel promotes a zero-accident working
environment for steel industry employees and contractors.
 Data Collecting
 Crude steel production

 Blast Furnace Iron (BFI) production
 Direct Reduced Iron (DRI) production
 Iron production 2012
 Steel production 2012
 Monthly crude steel production archive
 Annual crude steel production archive
 Monthly iron production archive
 Annual iron production archive
 Steel statistical yearbook

CHAPTER 5
CONCLUSION AND SUGGESTION
5.1 Conclusion
For business marketing it is important to collect data needed and research first.
By Internet and interview it can gain information. For new market in steel
industry of Indonesia, various data or information is needed. First, it researches
major companies of steel for understanding situation of steel industry of
Indonesia. There are several steel companies: PT. Krakatau Steel, PT. Gunung
Steel, PT. Ispat Indo, PT. Gunawan Steel, PT. The Master Steel, PT. Essar
Indonesia, PT. Bluescope Indonesia. According to these competitors, PT.
Krakatau Steel can make a positioning of business.
Then, it can help to make marketing plan for sales though data of expected
customers in each industry – automobiles industry, electronics industry,
construction industry, heavy equipment industry.
Next, by survey several association official website, that is, South East Asia
Iron & Steel Institute, Statistics Indonesia, World Steel Association, it can
research volume of demand and supply in steel market of Indonesia.
After that, through information of shipyard location in Indonesia it can make a
plan for transport of products.
Finally, for success of business marketing it needs to be prepared or provided
various data for marketing plan and strategic marketing.
5.2 Suggestion
It is difficult to gain all data though Internet. It is limited to research it by

Internet. According to this, sometimes it needs other methods for research. For
example, another method is by an interview. In addition, it needs a double check
of information for ensuring an accuracy of data.
It suggests that Statistics Indonesia as a government organization can provide

more various data and accurate information for public. The data from Statistics
Indonesia is insufficient compared with the data from South East Asia Iron &
Steel Institute (SEASI) and World Steel Association (WSA).

REFERENCES
Dwyer, F. Robert, Tanner, John F. (2009) Business Marketing:Connecting Strategy, Rel
ationships, and Learning, 4rd Edition, McGraw-Hill/Irwin.
Eckles, Robert W. (1990), Business Marketing Management: Marketing of Business Products
and Services, Prentice Hall PTR
http://www.bkpm.go.id/
http://www.bluescopesteelasia.com
http://www.bps.go.id/eng/index.php
http://www.emergingmarketsdirect.com/
http://www.essar.co.id
http://www.grdsteel.com
http://www.gunawansteel.com
http://www.ispatindo.com
http://www.krakatausteel.com
https://www.posri.re.kr/eng/main
htp://www.seaisi.org/html/index.asp
http://www.themastersteel.com
http://www.worldsteel.org/

APPENDICE 1
PRODUCT OF PT. KRAKATAU POSCO
 Classification and Specification
Segment Application Product Specification

(Plan)
Automotive & Heavy Steel for production of - JIS: SS400,
Equipment mechanical parts, SM490, S10C-
excellent in machine S55C;SCM440;AIS
ability and abrasion I 1020-1055
resistance. - ASTM: SAE 1010-
1046
Steel for automobile - JIS: SAPH 400,
structures, excellent in SAPH 440
branding and deep
drawing.
Boiler & Pressure Ni is added to this type - JIS: SLA325B
Vessels of steel, giving
excellent low-
temperature toughness
and corrosion
resentence.
Steel for gas ball - JIS: Sb410, 450
tanks, LPG Tanks, (≤ 50t),480(≤
petroleum and 35t) ; SGV410
liquefied materials ( ≤ 30t) SPV235,
storage tanks, and fire 315, 450;SB450M,
power generation 480M
boilers, excellent in - ASTM: A285 GrA,
workability and weld B, C; A515 Gr55,
ability, and both heat 60, 65, 70
and corrosion resistant. A302 GrC( ≤
2inch)
A516-55, 60, 65, 0
(≤ 1.5inch)
Construction & Steel for general - JIS: SS330, 400,

General Structure welding structures, 490; SM400A, B,
bridges, industrial C;SM490A, B,
structure, has high C;SM490YA,
weld ability and is YB;SM520B, C
widely used in - ASTM: A283 GrA,
machines and B, C,
construction materials. D;A36;A572;Gr42,
50, 60, 65

- DIN: ST37-2,3;
ST52-3; RST37-
2;ST44-2,3
- BS: 4360 Gr40B,
Gr43A, B, C;
EEGr50A, B, C
- EN10025: S335J2;
S355K2
Atmospheric corrosion - JIS: SMA400, 490
resistant element as - ASTM: A588 GrA,
Cu, Cr, and Ni are B, C
added to increase both
weather and corrosion
resistance.
Oil & Gas Pipe Steel for line pipes that - API: API5L-B;
transport petroleum or X42;X46;X52,
natural gas. Steel X56, X60
proven with extreme
situation is produced
in order to cope with
the worsening
environment stemming
from exhaustion of our
natural resources.
Shipbuilding This steel is widely <Classification
used in shipbuilding Societies>
industry. Classification BKI; NK; ABS; DNV;
of general steel and CR; BV; RINA; LR;
high tension steel will GL; KR; CCS; RS
obtain manufacturing <Specification>
approval from - NK: KA; KB; KD;
overseas classification KE; KA32; KD32;
societies. KA36; KD36;
- ABS: A; B; C; D;
AH32; DH32;
- NV: A; B; C; D; A27;
D27; E27; A32; D32;
A36; D36
- CR: A; B; C; D; A32;
D32; A36; D36
- BV: A; B; C; D; A32;
D32; A36; D36
- RINA: A; B; C; D;
A27; D27; A32; D32;
A36; D36
- LR: AH32; DH32;
AHS34; DHS34;

AH36; DH36
- GL: A32; D32; A36;
D36
 Plat Size
Thickness
6 7 8 9 10 11 12
1,600
1,700 25,000
1,800 25,000
1,900 Impossible to be rolled 25,000 25,000
2,000 25,000 25,000
2,100 25,000 25,000 25,000
2,200 25,000 25,000 25,000
2,300 25,000 25,000 25,000 25,000
2,400 25,000 25,000 25,000 25,000
Width
2,500 25,000 25,000 25,000 25,000

2,600 25,000 25,000 25,000 25,000 25,000
2,700 25,000 25,000 25,000 25,000 25,000
2,800 25,000 25,000 25,000 25,000 25,000
2,900 25,000 25,000 25,000 25,000 25,000 25,000
3,000 25,000 25,000 25,000 25,000 25,000 25,000
3,100 25,000 25,000 25,000 25,000 25,000 24,237
3,200 25,000 25,000 25,000 25,000 25,000 23,479
3,300 25,000 25,000 25,000 25,000 24,837 22,768
3,400 25,000 25,000 25,000 25,000 25,000 24,107 22,098
3,500 25,000 25,000 25,000 25,000 25,000 23,148 21,467
3,600 25,000 25,000 25,000 25,000 25,000 22,768 20,879
3,700 25,000 25,000 25,000 25,000 24,368 22,152 20,306
Max Width 4,500mm

APPENDICE 2
SHIPYARD LOCATION OF INDONESIA

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UNIVERSITAS INDONESIA

B2B MARKETING: THE COLLECTING DATA AND

LAPORAN AKHIR MAGANG

JOO YOON JEE

B2b marketing ..., Joo Yoon Jee, FE UI, 2013

B2B MARKETING: THE COLLECTING DATA AND

LAPORAN AKHIR MAGANG

Diajukan sebagai salah satu syarat untuk memperoleh gelar

JOO YOON JEE

B2b marketing ..., Joo Yoon Jee, FE UI, 2013

Before I started to work in POSRI (POSCO Research Institute) related with

B2b marketing ..., Joo Yoon Jee, FE UI, 2013

Name : Joo Yoon Jee

Key Words : Business Marketing, New Market, Business Marketing Research

B2b marketing ..., Joo Yoon Jee, FE UI, 2013

HALAMAN JUDUL ---------------------------------------------------------------------------------- i

CHAPTER 2 COMPANY PROFILE 5

CHAPTER 3 RELATED THEORIES 10

B2b marketing ..., Joo Yoon Jee, FE UI, 2013

CHAPTER 4 DATA AND ANALYSIS 20

B2b marketing ..., Joo Yoon Jee, FE UI, 2013

B2b marketing ..., Joo Yoon Jee, FE UI, 2013

Exhibit2.1 Vision of POSRI ---------------------------------------------------------------------------- 6

APPENDICE 1: PRODUCT OF PT. KRAKATAU POSCO

B2b marketing ..., Joo Yoon Jee, FE UI, 2013

B2b marketing ..., Joo Yoon Jee, FE UI, 2013

1.2 Indonesian Steel Industry

Steel industry is one of strategic industry which is deeply related with

B2b marketing ..., Joo Yoon Jee, FE UI, 2013

State-owned PT Krakatau Steel (KRAS) is the largest integrated steel producer in

1.3 Internship Objectives

The objectives of internship program are as follows.

 To gain skills and knowledge for working

 To learn about the organizing of a research project (planning, preparation, and

 To learn about research methodologies (field methods/methods to analyze data)

 To know a role of Korea company in steel industry in Indonesia

This report of internship is written by research though collecting data and

B2b marketing ..., Joo Yoon Jee, FE UI, 2013

1.5 Description of the Internship

1.5.1 Working Period & Hours

Internship program was started from on August 14 for 3 months. It was

1.5.2 Work Place

It worked in POSRI branch office in Indonesia. The office is located in

1.5.3 Internship Activities

As a Research Assistant it worked for Senior Economist’s task. Task in

 Research steel industry of Indonesian (current situation, analyzing

 Research the others industry of Indonesian, which is needed steel

B2b marketing ..., Joo Yoon Jee, FE UI, 2013

POSCO Research Institute (POSRI) was founded in 1994 as a research

POSRI publishes Chindia Quarterly, an English journal that offers in-dept

B2b marketing ..., Joo Yoon Jee, FE UI, 2013

With the acquisition of POMIC in July of 2012, POSRI continues to grow as

① In 1980: before established POSRI advised consultancy in management and

② In 1990: established in basis for research POSRI set up own organization

③ In 2000: for expanding into global POSRI strengthened global research so it

④ In 2010: POSCO Family management and enhancing Corporate Social

2.3 Vision, Mission, and Core Value

: Creative think leader in steel and beyond.

B2b marketing ..., Joo Yoon Jee, FE UI, 2013

: POSRI contributes to the growth of the POSCO Family and the

① Customer: POSRI puts the highest priority on customers and listens

② Challenge: POSRI demonstrates a strong spirit even in adversity,

③ Execution: POSRI immerses itself in its projects happily and meets