1 d’Herbs Indonesia “From Traditional Recipes for Global Health”

2007 2008 2009 2010 2011

Export 1,036 1,452 1,253 1,428 1,676

0.00

500.00

1,000.00

1,500.00

2,000.00

Mill

ion

USD

Indonesia Spices Export

0.00%10.00%20.00%30.00%40.00%50.00%

Gini Ratio (Disparity of Income)

d’Herbs Indonesia “From Traditional Recipes for Global Health”

Background

Countries in Southeast Asia are the countries which have been famous as spices suppliers

such as Malaysia, Vietnam, Philippine, and Indonesia. Beside that Indonesia have more than

thousand of traditional recipes and lot of those recipes consists of spices. According to the

data, Indonesia is the 4th in exporting spices global demand following China, Madagascar

and India.

d’Herbs Indonesia have a long term vision to extend spices value not only as commodity but

also give better future to community. Sepuran village (Wonosobo) and Mboro village

(Kulonprogo), Central Java, Indonesia consist of many less productive land that owned by

villagers and they are also have a problem to health services accessibility. Our social business

will try to empower villager to be our partner to create organic herbal products.

We aimed to rebranding Indonesia Traditional Recipes that based on spices as ingredients to

meet for our local market expectation and global market for the future. d’Herbs Indonesia

social business model can minimize welfare disparity in Indonesia. This gap of welfare can

be occurred in tropical countries in Africa, Asia, and Latin America as well.. Different

countries are able to adapt this social business model with their own commodities.

2 d’Herbs Indonesia “From Traditional Recipes for Global Health”

d’Herbs Indonesia Social Business Flow

D’Herbs social business flows consist of three phase, fist are empowering and educating

villagers to be high quality raw materials suppliers for organic herbal spices. Second d’Herbs

will process raw material to healthy product in our healthy product fabric (integrated with

Café) and at the end selling our high quality product directly to urban people. Afterward

dHerb giving profit sharing as health services (Desa Askes – Cooperate with National

Insurance Company) and additional income to villager as our vision to minimize the national

disparity of income and better health accessibility for villagers..

Villager will be produce raw materials by utilizing their less productive land and revitalize it

based on “Tumpang Sari” and “Urban Farming” programs. d’Herbs Indonesia will

purchase those raw materials at fair prices that are negotiated. Afterward, all raw materials

are going to be stored together with other basic materials to processed become finished goods

and semi-finished goods. All of those processed goods will be distributed directly to d’Herbs

Booths and Cafés. Besides the Café as our core to processed raw material and serve our

customer, the booths is to make customer easy to reach our product, d’Herbs also cooperates

with several retailer to form a consignment contract.

Forty percent of d’Herbs Indonesia profits are going to be used as premium of insurance

for villagers that supply raw material to our business. This is our way to empower villager not

only as our supplier but also owners of d”Herbs Indonesia.

3 d’Herbs Indonesia “From Traditional Recipes for Global Health”

Marketing Overview

Segmenting

Geography : Yogyakarta, Central Java

1. Healthy Product Fabric, Dine in Cafe, Central of Delivery, St. Seturan, Yogyakarta

2. Three booths : - Ambarukmo Plaza, Yogyakarta on the top floor (Tamansari)

- 2 booth located in front of mini mart (Indomaret)

Demography : 1. d’Herbs divides market into 3 segments of age, that are 17-21

years, 22 – 40 years, and 41 – 60 years.

2. Based on income, d’Herbs determines middle-end customers who

have earnings minimum USD 312.5.

Psychographic : d’Herbs customers are they who concern with health as a long

investment, disbelieve chemical drugs but trust to traditional medicines, love to hang out

in cafés, and want to balance their unhealthy life styles (smoking, high load working, etc.)

with healthy meals.

Targeting

d’Herbs selects adolescents and adults customer for their life styles and oldsters for their

concern in healthy products as well as their belief in traditional recipes.

Positioning

Healthy brand that produces product based on Indonesia traditional Recipes and herbal spices

which are packaged in a modern look and give benefits to health.

Competitive Advantages

1. Rebranding Organic Herbal, especially “Jamu” as more prestigious products.

2. Good Morning “Mbok Jamu” delivery program at 5 – 9 a.m.

3. Using organic resources that get directly from villagers (company’s supplier partner).

4. Easy to reach by customers in urban area (Dine in, Delivery Services, Booths and Retail).

4 d’Herbs Indonesia “From Traditional Recipes for Global Health”

d’Herbs Indonesia Grand Design

Index

1. Tumpangsari and Urban farming for Organic Herbs.

2. d’Herbs Café and healthy herbs fabrics.

3. Dine in products. 4. Sample for take away and

consignment product. 5. Integrated health service

incorporate with PT.Askes. 6. d’Herbs Booth.

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5 d’Herbs Indonesia “From Traditional Recipes for Global Health”

Financial Highlight

Investment

d’Herbs Indonesia needs USD 21.458 for initial investment. This investment will be used for

Supplies, Raw Materials, Seeds, Equipment, Tools and Cash Deposit. The need of investment

will be funded by own capital.

Sales and Cost

When d’Herbs Indonesia successfully runs this project, it will generate sales over USD 5,2

Million during ten years. Cost of Goods Sold is estimates at 40% from the Sales, including

raw materials and production labours. Moreover, d’Herbs also spends cost for sales and

administration that consist wages, rent, electricity, advertising, and depreciation by USD 1,1

Million. At the end, d’Herbs produces net profit by USD 1,1 Million.

Social Impact

Establishing d’Herbs’ project does not only create profit but also social benefits. This social

benefit includes additional income for farmers, health insurance, community development,

impact to better education and increase in life expectancy. Developing this project for ten

years resulting net present value USD 1,483 Million. And for USD 1 invested in d’Herbs

project there is an average USD 3.83 social benefit.

NPV Social Benefit $ 1,483,238

NPV Social Cost $ 386,866

Social Return on Investment 3.83

Social Propose Value $1,096,372