Individual

Strategic
Marketing Plan
 2

TERMS OF REFERENCES

FOCUS, a fictitious brand that presently operates in the United Kingdom market, is looking to grow into

the Indonesian market with an international market plan. Analyzing is done with the use of marketing

resources and data. Concentrate on current performance and the Indonesian market, both of which are

part of the plan. A well-thought-out strategy has been put in place to ensure a successful product launch.

EXECUTIVE SUMMARY

As a result of their recent success in the UK market, focus has made the strategic decision to expand

internationally. International investors have been lured to Indonesia's booming economy, which has

attracted a growing number of foreign investors. Consumption of food, frozen food, beverages, and Gifts

& Bargains has all increased. Consumers in Indonesia have a strong need for convenience, but they also

want high-quality food. This choice to join the UK market was made easier because to Focus' success in

these sectors and services. There are established competitors in a saturated business, but they lack

expertise in the quickly developing disciplines described above. These approaches are utilised because

they are thorough.

In this research, Focus' strategy and tactics for entering the Indonesian market are discussed in detail. In

order to attain a 0.2 per cent market share of the Indonesian food and beverage sector and a 3% market

share of the fresh food market by June 2023, it would focus on food, beverages, and Gifts & Bargains.

MISSION STATEMENT

To be food and drink store of choice for UKs youth market

 2

INTRODUCTION

The food and beverage industry in the United Kingdom is expected to generate sales of over £2.2 billion

this year. The four primary product categories are fresh food, beverages, gifts, and bargains. Sales of food

and beverages make for more than half of the entire market revenue generated by all competitors

combined. Among the market's most important buyers are these products. They're only kids, after all. The

market is growing at a yearly pace of around 15%. (approx. 7.5 percent per period). With a combined 10

percent of the market (Big store, Drinkit, Focus, Greenworld, and Valueshop), five big rivals dominate

this sector (Davis, 2018). In all, they account for half of the retail market. More than a thousand smaller

retail chains and neighbourhood convenience shops make up the remaining half of the market.

Competition in the United Kingdom has been so severe that, despite market category differences, all of

the top five firms (including us) have achieved sales, earnings, and perceived customer value that are

almost identical to one another (Hollingsworth, 2004). In terms of commercial strength, we're right there

with our main competitors. The company's product strategy and focus on goods have been beneficial,

which has fueled its drive to grow its global footprint. As a result of an expanding economy and rising

demand in product categories where Focus is already successful, the company has decided to enter the

booming market of Indonesia. They won't have to change or adapt at all, and they'll continue to use the

same strategy as before.

SITUATIONAL ANALYSIS

External Analysis

During the global financial crisis of 2008, Indonesia was one of Europe's hardest-hit countries. With an

annual GDP growth rate of more than 3%, Indonesia has developed into the Eurozone's fourth largest

economy after a decade (Cadoert, 2019). After moving abroad in quest of a better job, a huge number of

graduates have returned to the United States (Cadoert, 2019). During the first three months of 2019,
 2

consumer expenditure rose to a record high, marking the first time this has occurred in the economy's

development (Trading Economics, 2019a). Thus, Focus sees it as an attractive entry point into the

emerging market

Pest Analysis

Political Economic

 There are no international  Government initiatives assist

difficulties because of Indonesia's traditional grocery retailers

solid neighbour relations. It was compete with massive

instrumental in establishing the contemporary competitors •

ASEAN, the East Asia Summit, the Convenience shops remain

United Nations, the Organization of traditional food retailers'

Islamic Cooperation, and the World biggest competitor, with

Trade Organization (WTO). retail value sales rising by

 However, its participation in OPEC 5% in 2019 to reach

has been revoked (OPEC). IDR1,473 trillion

 Global law and order survey results (Gunarathne, 2015)

show that the majority of

Indonesians have confidence in their  A retail value CAGR of 8

local police and are comfortable percent is predicted for

going home late at night. As a result, conventional grocery

Indonesia is ranked as one of the merchants during the

world's most law-abiding countries. projection period, with sales

 2

 Government and commercial likely to reach an estimated

corruption are prevalent in this IDR2,191 trillion in 2024.

nation, and the country is facing a (Gunarathne, 2015)

number of independence movements  | Indonesia's performance

from various regions. This country's remains strong. After

political unpredictability worries a expanding by 5.2% in 2018,

lot of experts, because (Suryadarma the real GDP is expected to

et al., 2010). rise by 5% in 2019.

 Increasing incomes and

moderate and controlled

inflation drove a 5.1% real

growth in private final

consumption in 2018 and a

further 5.1% growth in 2019.

(Suryadarma et al.,

2010).Worries about US

policy (especially additional

protectionist measures) and

geopolitical tensions are risks

to the outlook. From 2020

through 2026, real GDP

growth will be approximately

 2

5%.

Socio-Cultural Technological

 Indonesia is home to 3.51% of the  The government has unveiled

world's people (World Meters, Making Indonesia 4.0, a plan to

2022). Ten percent of Indonesia's expand the use of technology in

population is Christian, making it five key industries: food and

the world's biggest Muslim nation. beverage, automotive, textile,

Religious freedom and ethnic electronics, and chemicals.

diversity are protected under the  Internet, AI, Human-Machine

Constitution. By 67 years, males Interface (HMI), 3D printing,

outlast women (BBC, 2020). robots, and sensors have been

 It's estimated that almost 95% of prioritised by the government.

Indonesians can read and write.  Foreign employees will,

Government spending on education however, be more easily hired by

and healthcare is substantial. Indonesia's government, which is

 Consumer spending and the attempting to address the

country's middle class are both growing need for IT talents in

rapidly increasing. the country (Suryadarma et al.,

 Over 300 varieties of Indonesian 2010).

make up the country's primary

language.

 Although human rights violations,

corruption, nepotism, high smoking

 2

rates, malnourishment, and poverty

plague Indonesia, the country faces

many challenges.

MARKET ANALYSIS

As a result of China's economic slowdown and geopolitical tensions, the projection is subject to change.

The real GDP growth rate is expected to be about 5% from 2020 to 2026. By 2030, most economists

predict that Indonesia will be the world's fifth-largest economy. Commodity-based enterprises are seen as

less stable than those in the industrial sector. There will still be a need for domestic demand. 135 million

users are expected to spend at least $10 a day by 2025, according to estimates (Chandra Setiawan, Indarto

and Deendarlianto, 2021).

Consumers' altering shopping habits and the shifting position of supermarkets between convenience

stores and hypermarkets limit the growth of supermarkets. As a consequence, it is expected that

supermarkets would suffer. Customer preference for smaller packs rather than bulk purchases and the

accessibility of online shopping are further factors in the channel's low performance during the expected

term. Modern food shops like supermarkets and hypermarkets provide a greater assortment of products

than convenience stores (Chandra Setiawan, Indarto and Deendarlianto, 2021). To counteract the present

trend toward smaller, more regular purchases rather than large, infrequent ones, smaller supermarkets

perform better than their larger counterparts.

 2

Consumers in Indonesia are gradually moving away from traditional brick-and-mortar retail in the wake

of the rapid growth of the internet and e-commerce. There will be tremendous increase in online grocery

shopping (e-grocery) during the next several years. There is a large and growing population of young

people, low smartphone penetration, major local and foreign investment, payment system innovation, and

a greater rate of economic development that are driving factors. This is already occurring on sites like

Bukalapak, where 40% of users have purchased food online. For these four reasons, consumers prefer e-

grocery over conventional shopping. First and foremost is the ease of purchasing online and using e-

commerce software, such as Amazon.com. Indonesians have a high standard of convenience and demand

it from their service providers. With only a few clicks, it's possible to do a variety of tasks. First and

foremost, technology is disrupting the food supply chain in terms of delivery speed. Customer concern

about environmental issues, notably packaging, is also growing. Because of their growing literate

population, Indonesians are becoming more concerned about the environment and more eager to take

action. Customization of online purchasing is the fourth point.

CONSUMER ANALYSIS

According to the corporation, Focus sells its products to persons as young as children in the United

Kingdom market. Due to its extensive product selection, Focus aims to appeal to clients of all ages on the

Indonesian market. The next section provides a more in-depth look into the consumers.

Demographic Profile  In 2018, there were 46.7 million

people in the country, with women

accounting for 50.94 percent of the

population and men accounting for

 2

49.06 percent.

 Birth rates are lower than in many

other nations. The unemployment

rate in the United States is 15.6%.

  The retirement age is 65-66 years

old. Jakarta has a population of

around 1.6 million people as of

2018.

 Approximately 32 million people

visited Jakarta last year.

Consumer Profile  Low-cost food is losing ground to

higher-quality options as the

economy grows.

 Customers have resorted to discount

merchants and lower-cost things as

the jobless rate has risen.

 Every week, people go shopping two

to three times.

 Average yearly household

expenditure in supermarkets is

EUR2,931, hypermarkets are

EUR645, and discount stores are

 2

EUR521 • (Eurostat, 2014).

Competitor Analysis

market leader focus dominated the retail food and beverage sector in the United Kingdom. –

emphasis (Marketing2Win, 2019). A number of well-known Indonesian grocery merchants are

making it difficult for FOCUS to maintain its position in the industry. Two of the most major

competitors are Makro and Carrefour

Carrefour

Carrefour is a French hypermarket that stocks more than only food and drink, with a 6.6 percent market

share. Because of the scale of their hypermarkets, they lack locations, much as Mercadona. Carrefour is a

suitable candidate for a collaborative venture due to their concentration on fresh, packaged, and ready

meals (Chandra Setiawan, Indarto and Deendarlianto, 2021).

Makro

Makro is a worldwide brand of warehouse clubs. Makro was created in 1968 by SHV Holdings, an

Utrecht-based Dutch conglomerate, and Metro AG, a German firm. Currently, ownership is shared

between Metro AG in Europe (excluding UK) (Kumar, 1997), SHV Holdings in Latin America (except

Peru), and CP All in Asia. In several nations, shops are only available to corporate clients and not to the

general public.

PORTERS 5 FORCE ANALYSIS

 2

The threat of new entrants  Low initial investment required

 Incentives offered by the Indonesian

government to foreign investors

Competitive rivalry  It's a very competitive market, with a

lot of similar-sized competitors.

 High exit barriers and low client

retention

Threat of substitutes  If cost allows, products or services

may be simply swapped.

 Customers are looking for higher-

quality items.

Bargaining power of suppliers  As the demand for fresh and ready

meals grows, providers may raise

the price of these items.

 There are few suppliers, and

switching costs are significant.

Bargaining power of buyers  As the economy grows, consumers

have more discretionary money;

 product substitution is strong; and

online shopping is on the rise.

 Consumers do price research prior to

making a purchase.
 2

INTERNAL ANALYSIS

Operational Costs

FOCUS' current operational costs in the UK market, split down by product category and consumer sector,

are shown in the following table in great detail. FOCUS was able to take the lead in the grocery industry

while still earning a profit, thanks to a well-thought-out three-year plan.

 2

UK Marketing Objectives

When it came to achieving success in the UK market, Focus set out to achieve the following goals and

accomplished them all, leading to a profit of £24.7 million after the third year.

• Objectives By the conclusion of the third year, the firm will have retained its total frozen food market

leadership position.

• Objective It will be the most profitable supermarket in terms of market share by the end of the third

year.

• Why By the end of Year 3, all industries, save the internet, must reach a minimum ROS of 16 percent.

Market Segments

Children and babies; toddlers; children; adults; and elderly make up the four categories of UK consumers

(or seniors). Products are divided into four categories: fresh foods, frozen foods, kitchen cabinets, and

drinks. Focus' principal purpose in the first year was to focus on food, beverages, presents, and bargains

since these were the areas where the market was predicted to grow. Focus' strategy placed a heavy focus

on value propositions in order to meet client needs. As a result, the company's long-term commitment to
 2

investing in its personnel across the board bolstered its strategy. Due to Focus's ability to foresee market

trends, the company began selling its gifts and deals operations and increased its investment in fresh food.

To achieve their long-term success in the industry, this strategy worked, with Focus being the clients' first

choice when it came to finding the best value for the quality.

Competitive Advantage

Focus has a competitive advantage since it is able to provide customers with high-quality products at the

lowest feasible prices. When it comes to investing and selling, Focus has another advantage: the ability to

anticipate and prepare for market and consumer trends.

Product Positioning and Place

For Focus, a competitive advantage is its capacity to offer clients with high-quality items at the most

competitive pricing accessible on the market. Additionally, Focus' capacity to anticipate and prepare for

industry and consumer changes allows the company to invest and sell in various industries as needed,

depending on the scenario.

 2

Marketing Mix

A successful marketing mix employed in the UK proved to be a good fit for Focus in the Indonesian

market, but it will need to be tweaked. As indicated in the diagram below, the PLIN Model outlines the

most important aspects to be considered in new foreign markets.

Product, Price, Place and Promotions

Product Price

 The Indonesian market is crowded  Why Focus should maintain

 2

with competitors; therefore Focus competitive pricing in contrast to

should focus on a smaller number of its competitors notwithstanding

products rather than offering a wider the expansion of the Indonesian

range. economy.

 The advantages of creating a  Since its rivals do not provide

specialised market and minimising specific product lines, Focus is

risks outweigh the costs. able to hike their pricing..

Place Promotion

• Promotion will concentrate primarily

 Residential areas and tourist
on the product range and consumer
hotspots including the main beach
convenience.
and other attractions may both be

reached on foot from this hotel.

According to the firm, the first

Focus shop in Jakarta will open in

September.

 Ready meals will be sold via many

channels, including e-commerce and

third-party delivery services, by

Focus.

SWOT ANALYSIS
 2

Strengths Weaknesses

o Brand recognition that is second to o The Indonesian market does not

none presently have a presence for

o Excellent items at reasonable prices. focus.

o Frozen and packaged goods are what o Customer shopping for groceries

they're known for. in Indonesia will not be possible

o The ability to effectively enter new until Focus is completely

markets, as they have done in the established in the nation..

United Kingdom, is essential.

o A strong online presence

Opportunities Threats

o Fresh food sector is developing o It is possible that Indonesian

in Indonesia; there is a high customers would not see Focus

demand for ready meals and favourably since it is a foreign

packaged items; and there is a brand.

rising desire for organic food. o In a saturated business,

o The usage of e-commerce is competitors have an established

becoming more popular. foothold, and consumers have

o Consumers are looking for great purchasing power.

higher-quality produce.

o Competitors are concentrating on

a comprehensive product variety

 2

approach.

o In addition, the Indonesian

government welcomes

international investment.

MARKET ASSUMPTIONS

The following assumptions regarding the Indonesian market might be made based on the results of the

external study:

o Indonesia's GDP is predicted to grow at a 3% annual rate through 2025

o Consumers will have more money to spend as the economy grows. Through 2025, the

fresh food industry is predicted to grow at a pace of one percent each year.

o The supermarket industry is predicted to grow at a 3% annual pace through 2025.

o Fresh and ready-to-eat meals will be in high demand until 2025.

SMART OBJECTIVES

If the following SMART objectives are met, then the introduction into the Indonesian market will be

considered a success.

o The grocery industry in Indonesia is expected to be dominated by Focus by the end of

June 2023.
 2

o Focus intends to enhance its market share in Indonesia by opening 30 new locations by

June 2023.

o Aiming for a 3 percent share of the fresh food sector in Indonesia by June 2023, Focus

predicts.

CORE STRATEGY

Entry Method

When a company is expanding internationally, one of the most important barriers to entry is the method

of gaining entry. In this case, a joint venture makes sense since Focus has set itself high goals in order to

have a significant effect on the Indonesian market quickly. Joint partnerships with other firms are the

most prevalent way to enter the Indonesian market today. In this arrangement, both companies share the

risks and costs of operating and marketing, which is a win-win for both. Doing business with an

established firm that has extensive knowledge of the Indonesian market offers a lot of advantages

(Udwadia, 2021). Because the joint venture will be able to learn more about an industry in which they

now have no significant presence, the information gained will also benefit them. Carrefour has agreed to

work with Greenworld on the fresh food, packaged food, and beverages sectors.

As a result, Carrefour lacks specialisation in any one field or product category. Another problem is that

Carrefour's hypermarkets are so enormous that there isn't enough room for everything. Smaller businesses

will be placed in more accessible areas as a consequence of this partnership, allowing more people to visit

them. Because of their large product variety, Carrefour may continue operating as normal, but

Concentrate will focus on certain fresh food, packaged food and ready meal items that are not presently

offered in Carrefour's shops (Udwadia, 2021).

 2

Target Market

After the ready meals sector, Concentrate will focus its efforts largely on the fresh food industry, which

comprises commodities such as food and beverage products. The external research that supports this

conclusion examines, among other things, the growth rates and product demands of these industries.

Competitive Advantage

Focus will gain a competitive edge by focusing on the lowest-priced product lines, whilst competitors

will focus on providing a wide range of options. One of the ways Focus intends to differentiate itself from

its competitors is by sourcing local product that is in accordance with the tastes of its clients.

Value Proposition

Due to the similarity between Indonesian and British demand, value propositions that worked in the UK

market will be duplicated in the Indonesian market. If you're looking for high-quality products at

reasonable prices, Focus is here to help. Customers in the Indonesian market value this above anything

else when making a purchase.

Tactics

Product Price

 Frozen Food  Pricing will be competitive, but

 Gifts and bargains Focus does not want to engage in a

 2

 Fresh foods price war with its competitors.

 Drinks  Products will be reasonably priced

and of a high quality.

Place Promotion

 First store will be on Jakarta  Throughout the Indonesian market,

 Focus will grow to 29 more sites Focus will maintain the same name

across Indonesia in order to achieve and brand

its total market share and brand  Promotion will be strongly focused

awareness goals. on the product range and the

 eCommercece convenience factor for customers.

CONTROL AND IMPLEMENTATION

The following Gantt chart will show how the marketing strategy is progressing as it is executed. Regular

control approaches and evolutions will be utilised to assess whether or not Focus is on track to meet its

aims throughout the course of its two-year marketing plan..

 2

PROFIT AND LOSS

2
 2

REFERENCES

Chandra Setiawan, I., Indarto and Deendarlianto (2021). Quantitative analysis of automobile sector in

Indonesian automotive roadmap for achieving national oil and CO2 emission reduction targets by

2030. Energy Policy, 150, p.112135.

Davis, J. (2018). Brexit Uncertainty in the UK Agri-food Sector Intensifies. EuroChoices, 17(2), pp.3–3.

Gunarathne, U. (2015). Why Customers Going Supermarkets? (Comparative Study of Motivation Factors

Affecting to Visit Supermarkets). SSRN Electronic Journal.

Hollingsworth, A. (2004). Increasing retail concentration. British Food Journal, 106(8), pp.629–638.

Kumar, N. (1997). The revolution in retailing: from market driven to market driving. Long Range

Planning, 30(6), pp.830–835.

Suryadarma, D., Poesoro, A., Akhmadi, Budiyati, S., Rosfadhila, M. and Suryahadi, A. (2010).

Traditional food traders in developing countries and competition from supermarkets: Evidence from

Indonesia. Food Policy, 35(1), pp.79–86.

Udwadia, T. (2021). Method for safe Verres needle entry at the umbilicus, with modification for first

trocar entry to reduce the complication rate of first entry. Journal of Minimal Access Surgery, 17(3),

p.329.