Paper Title
Business Strategy For Formula Toothpaste To Achieve Sustainable Competitive Advantage

PT Ultra Prima Abadi is subsidiary of OT Group, establish since 1976, manufacturing, product research and development and marketing – in food, health drink and oral care category. Formula oral care itself, established since 1984. Although Formula toothbrush is leading the toothbrush in Indonesia, but Formula only have single digit share in toothpaste category. Being in a business environment, especially in a category that dominated by the market leader and other brands who battle for second position is not an easy job. In toothpaste category, most of Indonesia consumer, use the market leader brand, because it’s been few generation in the family that use the same brand. Thus, Formula toothpaste is underperforming compare to its competition. There are 4 facts that indicate its performance: (i) The strength in its toothbrush could not leverage Formula toothpaste, (ii) Low brand awareness of Formula in toothpaste category, (iii) Declining share especially in General Trade; (iv)Growth in Modern Trade is driven by price promotion. In order to stole some share from the market leader, as well as, winning the battle for second position, the brand and product must being different compare to its competition. Although Formula already has a differentiation, but since it is not promote widely or heavily, not all consumer know about the differentiation. This final assignment is focusing in finding business strategy for formula to achieve its goals, being number two in the category. Is the differentiation that Formula have is perceived as competitive advantage and have potential to be Formula’s competitive advantages? The secondary data is utilized to explore and analyze the business issue. Observational research and in-depth-interview also conducted in order to know how consumer perceive Formula and its competition in order to find insight how to win consumers heart – insight on any factors that possibly being Formula’s competitive advantages, or how to strengthen current core competencies to be competitive advantages. The research brings out seven proposed business solutions or tactics to solve the business issue - based on internal and external factors. Tactic D (Increase Advertising and Promotion Activities) is chosen to be the most potential solution. But in order to achieve better impact, then Tactic D need to be executed simultaneously with tactic E (communicate about the product quality) and tactic G (improve current products’ claim). Keywords- business strategy, competitive advantage, marketing, strategic formulation, strategic marketing.