Indonesia’s huge population and demographic dividend coupled with short supply of
beef provides massive opportunity in cattle industry and this Group Field Project
(GFP) addresses such opportunity by setting up new cattle fattening business, using
Integrated Farming System which support sustainable agriculture and ultimately
becoming one of the company’s Differentiation. Nevertheless, cattle fattening
business is one of prospective yet high risk. If the price continues to raise the bar,
people might substitute it with others with lower price meet, i.e.: chicken, goat,
sheep or buffaloes. The threat also coming from new entrance and competition
among similar companies, which will heat the market.
Bri Bri Natural Farm committed to ensure selection of steer cattle using Body
Condition Score (BCS) and other performance criteria described in Operation
Strategy, in order to address all critical success factors. Bri Bri Natural Farm also
carefully calculatesthe best-fit combination of cattle feed ratio in order to achieve the
best carcass quality. Despite those strengths, the weaknesses are also noted being the
new player in the industry. Fierce competition from old and big player might
become the challenge. Bri Bri Natural Farm is therefore use Differentiation strategy
that will help to accelerate the speed for Bri Bri Natural Farm to win the competition
and create a unique selling proposition.
The Company’s unique selling positioning (USP) shall be continuous supply,
consistent carcass quality, convenient buying experience, and affordable price. The
product will be marketed under “Bri Bri Natural Farm” brand, and priced
IDR44,000 per kg which is below market price of IDR46,000 per kg.
The Company’s farm is located in Cariu, Jonggol, Bogor, and promotion strategy
will simply be direct selling to numbers of Butcher and words of mouth and
networking through relevant community and association.
Bri Bri Natural Farm financial strategy is to beginpositive position since the first
year in which the initial investment of IDR 3,172,625,000 and NPV of IDR 15,800
Million. Company will raise a loan from shareholders to finance its operation in the
first 5 years of IDR 8 Billion in the first year and return it within 3 years. Dividend
will be paid to shareholders after making profit and returned of the loan.
Bri Bri Natural Farm set up a business operation that adopts an integrated farming
system. The input of the production procured from the local farmers or the animal
market and the cattle feed is being brought from food industry by-products. The
service elements are added to output of production to ease the service delivery.
Five years plan which includes pilot plan for the first year is detailed in this Group
Field Project and a long term recommendation is also put in place to provide the
Company with a prospective and sustainable Company blue print.
This GFP research methodology is divided into four stages, namely (i)Understanding
the Industry and Demand to identify industry potential using PEST Analysis;
(ii)Understanding the Competition to understand industry competitiveness using
Five Forces of Porter and Industrial Life Cycle; (iii)Understanding the Company and
its Competitive Advantage to understand the Company’s internal strength which can
be a source of competitive advantage using Key Success Factor, and
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(iv)Formulating Company’s Business Strategy based on analysis of all the first three
mentioned stages using STP and Marketing Mix analysis, Generic Strategy, Strategy
Elements, and Value Chain Analysis. Literature review also elaborated in the second
chapter to provide a basis in terms of theory that will be used in each of the stages.

Supervisor: Harris Turino