M-RCBG Associate Working Paper No. 139
Building Affordable Homes for Indonesians: Project Strategy for PVCPLANK
This Policy Analysis Exercise (PAE) is a business plan for a small-medium enterprise company in Indonesia, PT. Anugerah Mitra Semesta (AMS). AMS is founded in 2011 in Jakarta, Indonesia and it is operating in the manufacturing and building materials space [i]. As a producer, the company has been innovating and manufacturing various high-quality poly vinyl chloride (PVC)-based building materials products that are environmentally friendly and have affordable price points for the mass Indonesian market.
Recently in January 2019, the company has just launched its newest product line – PVCPLANK (pictured in Figure 1) – which is a plank for building exteriors and interiors that is formulated from recycled plasticized PVC. Some of the product variations have a faux wood grain appearance and given PVC’s characteristics that include water resistance and longwearing durability, the product provides a much better alternative in terms of price, weight and environmental-friendliness than the current building boards and planks in market, which are primarily made of gypsum and wood. Given PVCPLANK’s lower cost of production as compared to substitutions in the market, PVCPLANK will be targeted for the mass Indonesian market and to the low and lower-middle income population in Indonesia. Its affordable price point provides accessibility for millions of Indonesians living in Tier 2 and 3 cities to build proper housing for their families, instead of relying on zinc and scrap materials to build their temporary homes in slums.
Currently, PVCPLANK is the only one of its kind in Indonesia and the market needs to be educated on this innovation to drive product acceptance, sales and usage. This PAE will aim to provide a robust product launch strategy in terms of a sales and marketing plan for PVCPLANK in Indonesia.