ISLAND SOUVENIRS: GLOBAL MARKETING ENTRY PLAN TO INDONESIA

_________________________________________

A GLOBAL MARKETING ENTRY

PLAN Presented to the

Undergraduate Faculty of the Department of Business

Administration

University of San
Carlos

Cebu City,
Philippines

_____________________________________

In Partial Fulfillment

of the Requirements for the Course

GLOBAL MARKETING (MARK 37)

_____________________________________
BY

ARGUILLES, RUTCHELLE

MONDONEDO, KEZIA

JUNE 2018
 APPROVAL SHEET

This paper entitled Island Souvenir: Global Marketing Entry Plan to Indonesia
prepared and submitted by Arguilles, Rutchelle and Mondonedo, Kezia in p a r t i a l
fulfilment of the requirements for t h e c o u r s e o n GLOBAL
MARKETING (MARK 37) has been accepted for SUBMISSION to the Department of
Business Administration.

TECHNICAL COMMITTEE

CORAZON G. ANZANO,
PhD
Adviser

PANEL OF EXAMINERS

Approved by the Committee on Oral Examination with a grade of

PASSED.

CORAZON G. ANZANO,
PhD
Adviser

Date of Oral Examination: June 30, 2018.

 ACKNOWLEDGMENT

The researcher would like to express their deepest gratitude to their adviser Dr. Corazon
Anzo for sharing her knowledge, advises, support and guidance to the members. Without her
continuous support and her encouragement the study would not be done successfully. The
researcher would also like to express our heartfelt gratitude to our parents and their family
members for their undying support through providing t us the financial needs, the inspiration
and motivation to keep going and finish the study. To the researchers who exerted their best
effort in all the activities and fulfill this study. Lastly, to God who has been guiding the
researchers all throughout the way of finishing the study.
 EXECUTIVE SUMMARY

Two to 3 pages overview or summary of the entire marketing entry plan. This
part is usually limited to the situational analysis of the business, its marketing
strategies used and the proposed recommendations of the researchers.
 TABLE OF CONTENTS

Page

Title Page i

Acknowledgment ii

Executive Summary iii

Table of Contents iv List

of Tables v

List of Figures vi

1 MARKETING SITUATION

Business Review 1

Competitive Review (Country Specific)

External Environment Analysis

Internal Environment Analysis

Strength, Weaknesses, Opportunities, and Threats

2 ENTRY STRATEGY

Entry Strategy

Segmenting, Targeting, and Positioning

Product Strategies

Pricing Strategies

Distribution Channels

Integrated Marketing Communications

3 CONCLUSION AND RECOMMENDATIONS

BIBLIOGRAPHY
APPENDICES
 LIST OF TABLES

Table # Table Title Page

 LIST OF FIGURES

Figure # Figure Title Page

 MARKETING SITUATION

Business Review

The Islands Group traces its history back to the early beginnings of Islands Souvenirs in Cebu
in 1992. The Islands Group is all about making travel in the Philippines an unforgettable
experience. Plain and simple passion for service, understanding what the market needs, and
drive to deliver great value have shaped the Islands Group into the multi-awarded brand it is
today.

Mission

“To provide a premium quality souvenir items that are practical and creatively designed and
packaged in vibrant retail environments”

Packaged in vibrant shopping environments, it transformed the way that souvenirs were sold
completely. Today, Islands Souvenirs has captured a significant share of the souvenir market
and has become the most awarded souvenir brand in the Philippines. Its retail operations
have expanded to over a hundred stores in various high-traffic tourist locations in the
Philippines.

Vision

“To be Asia’s number one recognized souvenir provider operating around all over the Asia
with excellent strong customer base”
 
With tourism in the upswing, the Islands Group has recently experienced unprecedented
growth, having launched several exciting new concepts over the past few years. Aside from
the Islands Group’s strengths in understanding the market, this can also be attributed to the
robust and ever-developing tourism industry in the Philippines. In the year 2010 alone, the
Philippines had reached a new record for highest number of visitors. With the economy’s
positive outlook, this number is only expected to grow.
 
 Competitive Review

Island Souvenirs wants to expand to Kota Jakarta Selatan, Daerah Khusus Ibukota Jakarta
12160, Indonesia.

POLITICAL FACTORS
The political system of the country is democratic and the president and vice president of the
country are elected through parliament. It is declared the Republic and their rules and
regulations are developed under Roman-Dutch Law. The president and vice president are
elected after five years and president has authority to appoint his cabinet through votes of
public.

ECONOMICAL FACTORS
Indonesia is developing country and the government has taken various serious steps to
increase the GDP growth in few years. The government spends only 23.5% on their GDP and
they have the revenue of $92.62 billion and their expenses are about $98.88 billion. Indonesia
has the reserves of crude oil and natural gas and it is at the 8th position in exporting the gas.
Indonesia has made significant development and it has robust GDP growth to 6.1%. This
country earns the GDP growth of 14.4% from agriculture, 48.1% from industry and 37.5%
from service sector. It has given specific attention on FDI and has good inflow of FDI with
$67.3 billion, which shows its consistently increasing side and strength in their economic
sector.

SOCIAL FACTORS
Indonesia has large population, which is increasing steadily with the ratio of 1.13%. They
have good average life, which is over 70 years. Most of the people live in urban areas. Most
of the people are concerned with agriculture and industry and they are working for the
development of their country. The government has given specific attention to education and it
has impressive literacy rate of 90.4%. This country spends 3.6% of its GDP on its education.
Government has its own public schools and colleges, where the students can get education at
the nominal fee charges. It has developed some universities, in which education is given to
the students in different disciplines and the students are taking interests in getting more and
more education, which is necessary for their survival as a nation in this world.
TECHNOLOGICAL FACTORS
Indonesia has developed their own transport system and they have 139 airports, railways and
water ways to go to other parts and islands of the country. As it is located in the ocean, so
there are many big and small ports and it has the biggest merchant marine of 971 in which
114 are registered with foreign countries. This country has developed its communication
system and various new brands of the smart phones are available there. The government has
adopted the effective broadcasting technology. They have their 54 TV channels in which 11
are national TV networks and some are located in the private sector.

COMPETITOR ANALYSIS

Khas Jakarta

The shop is located within a huge shopping mall. It’s located in Jl. Thamrin Boulevard
blok H5 no. 6 | Thamrin City Lantai 1, Jakarta 11110, Indonesia. The shop has it all, a
complete one stop shopping to find Jakarta’s local food, a simple key chains, magnets, t-
shirts and some others souvenirs with affordable price.

Pasaraya, the Pride of Indonesia

It is located in Blok M Jln. Iskandarsyah II 2 | Kebayoran Baru, Jakarta 12160, Indonesia.

They provide smallest wood carving pencils, book marks to sterling silver signature creations,
must-buy masks, sarongs, cool casual bags to carry around, place mats, batik and
handicrafts with a lower price.

Batik Keris

It is located in Soekarno-Hatta Airport, Jakarta, Indonesia. They sell Batik dress and scarf for
women or men with affordable price. In addition to nice batik clothes, they also have unique
carvings, metal figures, shadow puppets, key chains and other trinkets.
External Environment Analysis

 Threat of new entrants

o large capital and time for startup
o Adopting the culture

 Supplier power
o lots of suppliers for raw materials
o supplier size includes local and international areas for import

 Competitive rivalry
o customer loyalty depends on the convenience of location
o competitors have lower quality of concrete and cement

 Buyer power
o higher quality of tshirts
o low pricing compared to other competitors
 SWOT ANALYSIS

HELPFUL HARMFUL

STRENGTHS WEAKNESSES

 Higher quality and innovative  Seasonal bead off of the

products demand of their
INTERNAL

 Safety- focused merchandises

 Comfy merchandises  Pricing perception
 Customer-focused

OPPORTUNITIES THREATS

 Expand in international  Increasing market

markets competition
EXTERNAL

 Technology Advancement  Similar products are

 Increasing investments everywhere
 Low Revenues
 Chapter 2

MARKETING STRATEGY

Entry strategy

This section should discuss what type of entry strategy it wants to adopt as
it enters into the global market (franchising, joint venture, etc)

Segmentation, Targeting, and Positioning

Segmentation – what segmentation variables are being

applied Targeting – identification of company’s target
segments Positioning – unique propositions of the
company

Product Strategies

Describe company’s product levels.

Pricing Strategies

Company’s pricing strategies used.

Distribution Channels

Describe company’s value delivery network and distribution systems utilized.

Integrated Marketing Communications

Company’s specific blend of promotion tools that he company uses to

persuasively communicate customer value and build customer relationships.

CONCLUSION AND RECOMMENDATIONS

 BIBLIOGRAPHY

Books (at least 3 books)

Periodicals

Unpublished Materials

Internet Resources (at least 2 sites)

Note: Use the APA Bibliographic Citation Format.

RESUME

REFER TO ATTACHED.