Product Development and Innovation, the Keys for MBTO to Survive the Pandemic

Throughout 2019, PT Martina Berto Tbk keeps doing the business transformation so they can always be more efficient in overcoming the changes of the market and customer behavior. By pushing the innovations, strong brand equities in all categories, and strengthen the performance in every unit business, in 2019 the company performance has entering net sales Rp537.568,- billion or increasing 6.9% from 2018 and and the company managed to reduce net loss to Rp66,946 billion from Rp114,131 billion because of some repairments, net sales growth, and efficiencies.

For product innovation, last year MBTO has launched five new products, they are Biokos Vital Nutrition, Mirabella Effortless Makeup, RHC Pomade, PAC Satin Lip Cream, and Sariayu Color Trend 2019 Inspirasi Indonesia. Some of the management strategies to increase promotion and marketing are by utilizing digital and social media and collaborating with key opinion leaders, beauty bloggers, and the beauty community. To raise the awareness, MBTO also participating in some of the local or international events and activities such as Jakarta X Beauty, Surabaya X Beauty, Jakarta Fashion & Food Festival, Jember Fashion Festival, Festival Morotai, Festival Gandrung Sewu, official makeup for National Flag Hoisting Troop, Teater Koma, Ilagaligo, and Broadway Musical Hairspray.

Meanwhile, in the first quarter of 2020, even though customer’s buying power is weakening and some of the large retail outlets are closed, the business prospect of the company is still promising in the future because of the distribution channel optimization and improvisation. With national cosmetics market growth, PT Martina Berto Tbk record Rp87,06 billion of sales.

Although the Covid-19 pandemic brings impact to company regular operation, MBTO has taken important anticipation and control to protect the business from bad impact by strengthening PT Cedefindo performance and Martha Tilaar Group, and through product development by producing hand sanitizer, hand gel, and hand wash. Using the name Quick N Fresh as the product that produced by PT Martina Berto Tbk and Bright Clean that produced bt PT Cedefindo, MBTO plans to produce FMCG which focus on household cleaning and herbal drinks, and also strengthen the skincare, body care, and hair care category, and wary to customer behavior which has an impact to makeup category.

Moreover, through Martha Tilaar Innovation Centre, MBTO cultivates natural resources to be good quality products that have economic value. In a form of raw ingredients, these natural active ingredients from Indonesia are called Berto Extract. This Berto Extract is not only for internal use but also for sale to the local and international beauty industry. For the overseas distribution, MBTO holds a collaboration with Clariant, one of the well-known chemical companies in the world.

In the middle of challenging market and Covid-19 pandemic, PT Martina Berto Tbk hoping that innovation and product development can push the business growth. For the year-end 2020, the company targets the net sales Rp564.000 billion or increases 4,92% above the national economic growth estimation. The company said that the customer's demand for beauty personal care will have good potential in 2020.

http://www.marthatilaargroup.com/detail/en/555/product-development-and-innovation,-the-keys-for-mbto-to-survive-the-pandemic