1.

4 Product Distribution
In this section, we explain about the distribution of C-Scale insulation to our
customers. The explanation consists of product distribution location, proportion
product distribution, product distribution from plant to customers, and the mode
transportation.
1.4.1 Product Distribution Location
The main target consumer of insulation is LNG producers, which needs
insulation at its storage and transportation system. C-Scale insulation product will
be distributed to several city in Indonesia and around Asia as well. In Indonesia, we
supply the insulation demand from Badak LNG, Donggi Senoro LNG, Tangguh
LNG, Arun Regasification Unit, several Floating Storage and Regasification Units
(FSRUs) in Lampung, and Onshore Receiving Terminal in Muara Karang Jakarta.
We also ship to Japan, South Korea, Russia,
1.4.3 Product Distribution Chain
C-Scale will be distributed to 5 areas based on each demand locations. The
proportion of product shipment is distributed based on demand of LNG insulation
data. The percentage of total requirement of LNG insulation in the 5 areas show
that Sunda area 20%, East Indonesia (Badak LNG, Donggi-Senoro LNG, and
Tangguh LNG) 60%, Nanggroe Aceh Darrusalam 3%, East Asia are 12% and
Russia 5%. Tabel 1.5 will shows percentage distribution to 5 area. Each month we
deliver 200 kg insulation sheet by gross weight.
Note that the export shipment to East Asia and Russia area is not counted per
month every shipment, it is shipped every 6 months, with the total insulation sheet
is cumulative for the amount of months.

Table 1.5 Percentage distribution to 5 area

Product distribution per Percentage

No Area
delivery time (m2/month) (%)
1 Sunda 6080 20
2 East Indonesia 18240 60
3 Nangroe Aceh 3
912
Darussalam
 4 East Asia 3648 12
5 Russia 1520 5

1.5 Transportation Method

The distribution mainly will use ship as marine transportation. The use of ship
is considered more effective and flexible because it is the easiest transportation from
Indonesia as archipelagic countries. The export delivery will be faster as well. Most
of the receivers are also located near the bay, which the city has its own port to
support the LNG industrial area there.
Table 1.7 shows distribution product by ship.
Table 1.7 Distribution product by truck

Cost per
Distance Time
Route Pathway delivery time
(km) (days)
(Rp)
Batam Port to Rp
Marine 1048 9
Lhokseumawe 1.330.000,00

Batam Port to Rp
Marine 1145 11
Bontang 4.950.000,00
Batam Port to Rp
Marine 3449 13
Banggai 6.260.000,00
Batam Port to Rp
Marine 3710 14
Gulf of Bintuni 6.565.000,00
Batam Port to Rp
Marine 1145 10
Lampung 1.620.000,00
Batam Port to Rp
Marine 1103 10
Muara Karang 1.190.000,00
Batam Port to Rp
Marine 5702 17
Russia 9.200.000,00
Batam Port to Rp
Marine 5399 16
Japan 8.910.000,00
Batam Port to Rp
Marine 4895 16
South Korea 8.780.000,00

1.7 Product Marketing

To make our product bought by the customers, we need promotion.
Promotion has its communication tools which should be integrated together with
the same consistent message. Our communication plan is to promote the product
through booklet, visiting gas company and website.
a. Using website
The greetor can also sells by secure website to provides good sales. The
website will describe the product including prices and contact PT. Osthira
Chemicals Co.
b. Using booklet
The booklet will describe the product including prices and PT. Osthira
Chemicals Co. The booklet can be given to a gas company, so the company easily
to know the product and PT. Osthira Chemicals Co.
c. Visiting LNG producers
Promotion through verbal is the best way to persuade a LNG producers buy
our product. The LNG company can ask the sales engineer completely about C-
Scale insulation.