Conclusion

To conclude, this industrial visit was definitely interesting because it was my first time to do this dairy products industrial visit even though I had visited Cimory several times before. I finally knew why the products are premium, and it was really fun to see the company has improved their branches to so many new products I had never seen before; Chocomory, soy milk. Five years ago, Cimory has only two main business, milk and Kenzler.

I learned that they manage to deliver the highest quality of their product, to maximize the customer satisfaction by doing a very long manufacturing process with so many quality checks. At first, I really did not realize that Cimory sell this good products. I did not know that the quality checks have to be done so many times.

Cimory has also done good expansion in their milk business to sell soy milk as well for people who can not enjoy milk like me because of lactose intolerant. They also come in so many different flavors which are amazing.

For me, the products they sell are affordable and they are worth the price I pay, especially from the manufacturing processes they do to make the highest quality of their products.

Here are some pictures inside Chocomory store which is amazing!

4 P(s) International Market - Cimory

Cimory still has not done any international market at the interim.

International Trading - Cimory

Currently, Cimory is still a nation-wide dairy product company because it is still impossible to deliver their products outside of Indonesia. They have to keep their products at 4 degree Celcius, which is impossible to deliver the products outside of Indonesia.

Distribution

Currently, Cimory does its distribution by using their own intermediaries, as I have explained that Cimory has some companies that can manage the transportation and everything.

Actually, this definitely gives more profit for the company because using outside intermediaries costs a lot of money. Freight cost is actually really expensive, and if companies manage to cut it down, it is amazing.

Marketing Department

Cimory has several companies and they have their marketing department from all of the companies.
This is actually the most interesting part. They do the marketing process by word of mouth, from people like us who visited Cimory factory in Cisarua. Absolutely low cost, and we even had to pay them the factory tour fees. Intead of spending lots of money on marketing processes, just like most of the companies do, they can spend more money on the production cost, to make sure their products are great.

Usually, companies spend lots of money, thousands of dollars on marketing processes. Companies may use expensive advertising while using TV media, radio, billboards, etc. I have seen so many drinks advertising on TV, and I just realized that I have never seen any Cimory advertising on TV before.

Word of mouth marketing strategy is absolutely low cost for the company and it enhances companies' product quality, which is amazing. Therefore, their stores and restaurants in Cisarua are pretty good places to visit and very chill. They have to create good impression for the visitors, so the visitors can tell their families and friends about how good Cimory's places in Cisarua are.

Cimory Manufacturing Process

During the Q&A session, the EO described how they manufacture the milk, and it was really itneresting. I was first confused why the price of their products are pretty high and I wanted to know if the product quality meets its price! It was interesting to hear that they do their production based on order because dairy products are easily expired and it is impossible to sell fresh milk, with preservative added.

The great thing to hear was they get their milk from village cooperation, so all the products are all from our country's resources. However, they sellect their milk carefully and there are some requirements for the milk to have, such as 80% water. After the first quality control, they do filtration, aeration to kill the excesive smell, and finally, pasterurization done at 90 degree celcius for the milk to not boil. After this long process, they do another quality check before the packaging processes. It was interesting for me to see that they do so many quality control so the products are definitely premium. For people like me who have lactose intolerant, they also produce soy milk product which I think is really great to consume.

The greatest thing on Cimory's manufacturing process is the amount of the quality control to make sure their products are good. It is important for the companies to make sure to deliver the highest quality product to make the highly satisfied customers. Recently, I just learned that retaining existing customers is really important and I just saw this application in real life.

Obviously, there are things to improve as well to be done by Cimory. I think they need to create some more factories all around Indonesia because they tell us that it is impossible to do deliveries far away from the factory because they have to keep the temprature cold, so the milk is in the best condition for selling. It is definitely a big investment, but I think that this will create bigger market for them.

Cimory - The Trip

Me and my friends had to be at school earlier because the trip was quite far. We started the trip around 7 in the morning, and it took us around 2 hours to be there. It was great because we went there during weekdays when people do not go to Puncak or Cisarua on that day/hours.

When we first arrived there, we had our introduction with one of Cimory EO, and it was actually my first time to hear what Cimory stands for, I thought Cimory was just a name given by the owner in the past. After a short introduction, we went to see some clips made by Cimory for the visitors about the company, and it was quite surprising that Cimory actually has pretty big expansion since tha last five years period. I did not know that Cimory now has so many branches, such as Chocomory. 

After the introduction session, we had our welcome drink real quick, strawberry milk and I really did not like it. We went to a little cattle pen inside Cimory's property and we got to see some huge ass cows right there. It was a really hot day, I did not expect Puncak would be that hot during that time. The EO introduced how do they cross their cows, which was really disturbing, and I had heard of it when I was still in high school. After some talks about the milk quality and stuff, we finally got some little time to learn how to milk a cow. It was really gross so I decided to wait and see the process in a distance because I had seen this process several times in the past.

We were all hungry and finally, the lunch time that we have waited for hours come. Sadly the food was not good and we decided to get some additional orders because why not? After we had our lunch done, the Q&A session finally came. I had waited for this session to begin because the explaination and the introduction information were not enough for me. In this session, the EO described us how the process of the sterilization process, shipping, etc. It was really good to know this processes as a guarantee their products are amazing because the price of their products are pretty high. 

Before we went back home, they showed us how to make some milkshake and how cheap it actually is to create them. 

Cimory Trip - My Expectation

I had visited Cimory several times in the past with my family to chill when I was still in high school almost four years ago. This visit was not my first industrial visit, since me and my friends in Raffles College did an industrial visit to Indomie factory around two months ago. During this trip, I expected to see how dairy product industries go, how do they manage to be this big right now, and if they expanded their business. Learning new business strategies done by industrial visit has always been interesting to me because I want to be a businessman in the near future !

What factors should you consider when deriving an estimate of your lifetime value to a retailer? How can a retailer increase your lifetime value?

Personall, I purchase Starbucks Coffee twice a week. Let's say that I spend Rp 50,000.- every time I buy the coffee. In a year, I spend Rp 52,000,000.0-, so if I live 50 years from now, I will spend approximately 2.5 Billion Rupiah during my life time.

OBVIOUSLY, companies have to keep customer satisfaction as high as they can. Service businesses is definitely challenging. Communication between the employees and the customers have to be improved too. Promotion is definitely imporant here too. For example, sales discount, or promotion like buy one get one free or something is definitely attractive and interesting.

Explain the difference between the share of customers and customer equity. Why are these concepts important to marketers?

Share of customer is the share marketers get of the customer's purchasing in their produc categories.
For example my own consumption on coffee. 50% of the time I purchase coffee at starbucks, 10% on white coffee luwak, 10% on Kapal Api, and the rest on random coffee shops. This percentage always differs from one to another because it depends on the preference, and we understand that we people are all different in preferences.
To increase share of customers, firm can leverage relationships by offering greater variety to current customers. For example, Starbucks can add multiple new flavors to the coffee shop. Obviously, the advertising of the new flavors are going to be attractive to Starbucks customer.

Talking about customer equity, customer equity is the total lifetime values of your current and future customer.A company with high customer equity will be valued at higher price than a company with low customer equity.

Define marketing and discuss how it is more than just "telling and selling".

Marketing is a social and managerial process by which individuals and organisations obtain what they need and want through creating and exchanging value with others. Value is the benefits to the customer in exchange of what they pay. The marketing process does not stuck only on the advertising. Marketing mix consists of 4P(s), which is Price, Place, Product, and Promotion. Telling and selling is only a small part of the promotion mix. Marketers observe, or research the trend that is happening at the interim, and deliver the product, or services to the customers. Understanding the needs of the customer is the hardest part here because trend changes everytime and marketers have to follow, so definitely, marketing is a deep word to talk about.
For example, Apple keeps on publishing their new product every year, while we can see the changes in features available.