4.

0 Place/ Distribution Strategies

a) Type of marketing channel

Kopi Kapal Api is the distributors and they negotiate with one another, buy and sell
products, and facilitate the change of ownership between buyer and seller in the
course of moving the coffee from the manufacturer into the hands of consumer.

[ CITATION Sou16 \l 1033 ] Coffee products – with brands including Good Day, Kapal
Api, ABC, Kapten and Ya – comprise 85 per cent of Kapal Api’s total business. The
company exports to Malaysia, Myanmar, China and the Philippines, with
supermarkets and retail stalls providing its routes into these markets. It also sells
various types of instant coffee using 100 per cent robusta beans.

Kapal Api has a 1,200-hectare plantation in Sulawesi, where it organically grows the
finest coffee beans and other well-known varieties such as Kalosi Toraja. It also
breeds civet cats at its plantation for its kopi luwak production.

Kapal Api’s other products include candies, biscuits and non-dairy creamers. It also
ventured into the coffee shop business under the brand Excelso, with 120 branches
across Indonesia. Kapal Api has 44 distribution outlets in the country.

In China, the company plans to establish coffee shop chains and welcomes
partnership opportunities with franchisees. It also targets increasing its retail sales of
instant coffee products and eyes China’s e-commerce market as a potential revenue
stream.
b) Channels for consumer products

Wholesaler Channel

Producer

Wholesalers

Retailers

Consumers

Kopi Kapal Api is a wholesaler channel. This brand is often used for low-cost,
frequently purchased item for every consumers. The manufacturer sells to a large
percentage of the wholesaler such as Mydin that are willing to stock their products.
[ CITATION Nei \l 1033 ]The wholesaler will acquires products from Kopi Kapal Api’s
manufacturer and holds them in a distribution center and then sells them to
retailers.

c) Level of distribution intensity

 Intensive distribution
This brand is a form of distribution aimed at maximum market coverage, and it
is available in every outlet where target consumers might want to buy it. For
example : supermarkets, gas station and others. When the company sells
through as many outlets as possible, so that it is much easier for consumer to
buy the coffee.

d) Where can consumer find this product

1. Major types of retail store

 Department store
This kind of store carries a wide variety of shopping and electronics, and
sometimes furniture, with several departments under one roof. Each department
is usually headed by a buyer who selects the merchandise for his or her
department and may also be responsible for promotion and personnel. Kopi
Kapal Api can be found in department store like Parkson, Tesco, The Store and
etc.

 Supermarkets

A supermarket is designed to serve the consumer’s total needs for food, laundry
and household maintenance products. It is relatively large in size. Its operation is
low cost, low margin, high volume and self-service in nature. Superstores offer
one-stop shopping for many food and non-food needs, and may include
pharmacies, flower shops, bookstores, salad bars, and banking. For example,
Econsave and Billion. This coffee sold in this store for a reasonable price.

 Convenience Stores

A convenience store is slightly smaller than supermarket. It is only carrying only a

limited line of high-turnover convenience goods. This store is self-service and
typically located near residential areas and are open 24 hours, seven days a
week. It is relatively small. The store will sell product that seek by a customer.
However, prices charged are slightly higher at a convenience store than at a
supermarket. For examples, 7-Eleven. This coffee can be found in this store.

2. Types of non-store retailing

 Electronic retailing
 Online retailing
 It is available to users with computers and access to the internet. Online
retailing is popular and exploded because consumers find it to be convenient
and lest costly. Consumer can buy Kopi Kapal Api through online retailing like
Shopee, Mydin and Tesco websites. Consumers doesn’t have to go to the
supermarkets to buy it. They will less burden for people who have a problem
with transportation. However, consumers also need to pay shipping cost.

 Mobile retailing
This involve consumer to use wireless mobile devices to connect to the
Internet to shop. This step is also convenient for consumers. It is because
they can install the apps that have been developed and act as virtual
storefronts on a user’s mobile device. Nowadays, social media is a platform
for businesses to keep customers updated on products and services in real
time. For example, Kopi Kapal Api can also can be purchased in the Shopee’s
apps in an affordable price. It just took a minute for consumers to choose and
buy the coffee through online banking.