BPMM3053 | INTERNATIONAL MARKETING

1. INTRODUCTION

The project paper is to study and analyse the international marketing plan of Adabi
Consumer Industries Sdn. Bhd. The products from Adabi is higher demand and can gain
more profits because it also gain demand from other country. Adabi has potential to enlarge
their market into international market. This company is able to entry to global market through
export, joint venture, franchising or listening. We are also analyse the advantage and
disadvantages, risk and how their solve the problem. The SWOT analysis that we provide for
this project show that company can make some improvement to be the better company in the
future.
For this project, we are focusing on Fried Rice paste. The paste is used for cooking
Fried Rice and it is the popular fried rice paste from Malaysia. We choose this product
because this paste is different from others. It more delicious and can accepted by people. It
also the easy way to cook and can bring anywhere such as want to go to travel. Not only can
be used for fried rice but it also can be used for other food. Adabi Consumer Industries Sdn.
Bhd. is the first to be certified with ISO 9001:2000 in 2002 and ISO 9001:2008 in 2009 by
SIRIM Berhad. This certification attests to the company’s commitment to produce high-grade
and quality product.

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2. COMPANY BIBLIOGRAPHY

The first batch of Adabi products was created in 1984 from a small factory, Light
Industrial Area in Kuala Lumpur. From the Batu Caves, Adabi transferred to a bigger factory
in Taman Kepong Light Industrial Area in 1986. This is due to the sudden rise in market
growth, which prompted them to expand. The company had two more plants at Taman Ehsan
Light Industrial Area in the year 1990 and 1992. Due to the sudden rise in consumer demand,
Adabi move to its current location in Rawang Integrated Industrial Park. Adabi has become a
household brand in every Malaysian home. In a span of two decades, the company is able to
make the Malaysian consumers fall in love with their products. As a growing household
name, the Adabi brand is on a continuous challenge to provide and consistently deliver the
highest quality products to the Malaysian consumers. Despite its established brand, the
company is still continuously trying to grow its market share and are applying the latest
technological advancements in order to produce the best kind of food products. They are still
riding a moving train towards local and global success. (Adabi.com, n.d.)

List of Products Business Adabi

 Briyani powder
 Curry powder for meat and chicken
 Fish curry powder
 Kurma powder for meat and chicken

CURRY AND SOAP  Turmeric powder

PRODUCTS  Noodle Soup Powder

 Rice Vermicelli Soup Powder
 Coconut Milk Powder
 Soup Powder
 Vegetable Soup Powder
 Soup Spices
 Beef Rib Soup Spices

SAUCE PRODUCTS  Sweet Soy Sauce

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 Salty Soy Sauce

 Chilli Sauce

 Thai Soup Paste

 Mee Bandung Paste
 Chinese Fried Rice Powder
 Kampung Fried Rice Powder
PASTE PRODUCTS
 Tom Yam Paste
 Rendang Paste
 Hot & Tangy Paste
 Fried Vegetable Paste
 Fried Noodle Paste
 Fried Rice Paste
 Seedless Tamarind Paste

 Multipurpose Coating Flour

 Glutinous Rice
FLOUR PRODUTS
 Fried Banana Coating Flour
 Lazat Rice Cube
 Fried Chicken Coating Flour
 Beef Rendang / Dry Curry Powder

 Instant Noodles - Bandung Flavour

 Instant Noodles - Curry Flavour
 Instant Fried Noodles
INSTANT PRODUTS
 Instant Fried Noodles - Extra Hot
 Instant Noodles - 3 Rasa / Kimchi Flavour
 Instant Noodles - Chicken Flavour
 Instant Noodles - Tom Yam Flavour

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Branches in Malaysia
 Baktisan Pertama Sdn Bhd – Sungai Petani, Kedah.
 Adabi Penang Distribution Sdn. Bhd. – Pulau Pinang.
 Berkat Serbaguna Sdn. Bhd. – Ipoh, Perak.
 Bekal Baru Sdn. Bdn. – Selayang, Selangor.
 Alzas Edar Sdn. Bhd. – Kepong, Selangor.
 Adabi Consumer Industries HTO Sdn. Bhd – Batu Caves, Selangor.
 Adabi NS Trading Sdn. Bhd. – Senawang, Negeri Sembilan.
 Nyala Satria Sdn. Bhd. – Muar, Johor.
 Produk Optima Sdn. Bhd. – Johor Bahru, Johor.
 Amalan Sanjung Sdn. Bhd. – Kota Bharu, Kuala Trengganu.
 Adabi Distribution Sdn. Bhd – Mentakap, Pahang.
 Adabi Sabah Distribution Sdn. Bhd – Kota Kinabalu,Sabah.
 Stasuria Enterprise Sdn. Bhd. – Kuching, Miri, Serawak.

International Branches
 PT Nusa Adabi Tastes in Indonesia
 Phillipines Adabi Pte. Ltd. in the Philippines . (Utusan Online, 2000)

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3. Entry Mode to International Market

Most of the organization want to enter their business into the universal market sector
to grow their product globally, finding new target market and widen its market sector base.
When a company decide to enter international market, they have to choose entry mode to the
international market. Entry mode to international market are the channel which your
organization employs to gain entry to new international market. The entry mode to
international market such as exporting, licensing, contract manufacturing, join venture and
equity stake or acquisition.
Adabi Consumer Industries Sdn Bhd. (ACISB) is the main company and the main
player of Adabi Group. It inspires produces and markets products under the brand name of
Adabi. ACISB is managed and run professionally, fully product-driven and gives equal
emphasis to both Research & Development as well as Sales & Marketing. We choose
exporting for Adabi fried rice paste as mode to international market.
The exporting system can be defined as the selling of domestic product goods or
services to another country. Exporting is a traditional and well-established method of
reaching foreign market. Since exporting does not require that the goods be produced in the
target country, no investment in foreign production facilities is required. Exporting is a
suitable mode to entry for Adabi product this is because exporting offers a low- cost and it
simpler compared to licensing. Meanwhile, licensing is most frequently used in
manufacturing industries and it unsuitable for Adabi company. Licensing involves granting a
foreign company the right to create a company’s product within a foreign country in
exchange for a fee. Licensing cost is much higher because we need to pay royalties, license
fees and some others compensation.
Nowadays, we can see that many of the growth-minded business owners, preferred to
seek international growth offers opportunity by going global as an importer and exporter. By
exporting Adabi fried rice paste to Indonesia or another country, we can extend the sales life
of the product by finding new market. In addition, if our business is plagued by destabilizing
fluctuations in your markets due to seasonal changes or demand cycles, we can release our
sales by tapping different markets or even countercyclical fluctuations. By exporting our
Adabi fried rice paste to the global marketplace, we can learn how to compete against foreign
companies and even take the battle to them on their own ground.

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Other than that, Adabi company can use international strategic partnership as their
international mode to entry. Global strategic partnership Partnering is two or more firm from
different countries work as a team. Partnership with other company and in different country
especially for small and medium-sized companies, it is very desirable to develop overseas by
using partnerships. This is because it is so demanding to set up abroad entirely on the basis of
your own resources. And the partnership should be strategic because the effort and
commitment entailed could hardly be justified for a one-time profit. The major advantages of
partnering abroad are cheaper market entry, immediate local credibility and it also reduce
local overhead.
Adabi company is well known in Malaysia and their company is big company. By
joining International strategic partnership in Indonesia, they can increase the and strength
their market share. Before joining the global strategic partnership, we need to choose our
partner that have the capability, compatibility and partner that can give us full commitment.
Choose our negotiating team carefully. The purpose must be to structure an alliance which
will achieve both partners' objectives. It is no good trying to get one over on your partner.
This deal is going to be for the long term. Our company partner won not keep working at it if
it does not give them advantages too. It is more difficult to manage a partnership than a single
company.so we need to choose our partner wisely.
Competitor in our home market may have product or technology that we cannot
match, so if Adabi able to find foreign country partner who has similar or better product or
technology, it will give Adabi the advantage to our home country. Each partner must bring
something the other needs. This may be a valuable resource such as intellectual property,
market knowledge, distribution channels or available productive capacity. In additional, when
the two-company working together, we may reach wider audience than working alone. Each
company relies on other’s reputation. And customer may not realize the firm in their home
country has team up with outside firm.  Alternatively, if the firms each have a strong
reputation around the world, creating a high-profile partnership may signal that their
offerings have dramatically improved.
Lastly, before choosing the suitable entry mode to international market Adabi
company should know their objective, their ability to survive in foreign country, their
financial and also the risks that they have to bear. A good strategy can be to start with an
option that offers most flexibility and move towards greater commitment once we have more
experience and confidence in chosen market. Whichever strategy the company choose, they
will need to make sure their business is well protected. If they are partnering with someone in
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their target market, giving away too much information about their core business can leave
them to exposed. If they choose to go it alone, it can be hard to keep control over their brand
unless they are actually on the ground in-market. Spend time and money up-front getting
sound legal advice and make sure they get everything in writing whenever they deal with
anyone in their target market.
4. ENVIRONMENTAL ANALYSIS OF INDONESIA MARKET

How do the international market / culture, management styles and business system affect the

company performance? Do they have to adjust / alter their product or services to fit with the

host country market needs? How does the company face the competition?

Adabi can expand their market globally without a doubt especially to Indonesia
market. As a marketer before entering international market, a marketer should do a research
towards the country. For example, Adabi wants to enter Indonesia market and the marketer
should study about the Indonesia culture, lifestyle, interest and ethnic. These are all important
to sustain in the Indonesia market and to compete with the existing competitors. Adabi also
should not take for granted even though of Indonesia and Malaysia culture are quite same.
Adabi cannot simply judge before doing a research. Adabi should adapt according to their
consumer’s needs. It is an advantage for Adabi to join Indonesia market because of Malay
ethnic also there. They will probably become the first customer and will spread it to their
family, friends, college mate , housemate through words of mouth. Adabi are a well-known
brand in Malaysia so that they have a high of market share and will success to expand fried
rice paste to Indonesia market. Indonesia has the biggest Muslim population which perfect
with Malaysia and will not have obstruction to purchasing Adabi products. This is because
Adabi are Halal products and checked with the most trusted endorsement which is Jabatan
Agama Islam Malaysia (JAKIM).

4.1 Demographics
Demographics is the study of population based on factors such as income, population, age,
gender, education, race and occupation. The data for Indonesian population around 255
million people. According to the population size, Indonesia is the fourth-largest country.
Indonesia’s total median age is 28.6 years. This indicates that one half of the population is

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older than 28.6 years, while the other half is younger than this figure. When divided in sexes
the female median age is one year older (29.1 years) as compared to the male counterpart
(28.1 years)

Table 1: Indonesian Population by Sex and Age Group

% of total       Male    Female
 
population  (absolute)  (absolute)
0-14 years      27.3 34,165,213 32,978,841 
15-64 years      66.5 82,104,636  81,263,055 
65 years and over       6.1  6,654,695  8,446,603
Source: data.worldbank.indonesia

Table 2: Indonesia's Labor Force

in million 2010 2011 2012 2013 2014 2015 2016
Labor Force 116.5 119.4 120.3 120.2 121.9 122.4 127.7
- Working 108.2 111.3 113.0 112.8 114.6 114.8 120.7
- Unemployed   8.3   8.1   7.3   7.4   7.2   7.6   7.0
Source: Statistics Indonesia

Indonesia is the most appropriate market for Adabi. Malaysian food quite same with
Indonesian food such as fried rice, mi and other. Adabi will survive in Indonesian market
with their product which is fried rice paste. Adabi Fried rice paste have many flavors such as
fried rice vermicelli paste, Chinese fried rice paste, Chinese fried chicken powder, kampung
fried rice powder, chicken fried rice powder, anchovy fried rice powder, tomyam fried rice
powder. The new product that suitable with kids is kid’s fried rice that less hot. For the trend,
15-64 years is the highest percentage of population which is 66.5%. Teenagers market which
is students that stay among them would probably cook using this fried rice paste because it is
easier for them. It will not take a long of time to cook fried rice when using this paste. They
will have more free time to study and finish up their homework or assignments.

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Next, Adabi also targeted the family market as the modern parents who have a busy
work schedule that do not have enough time to cook. They want to be an express mother
because want to avoid traffic jam. Fried rice paste only takes 5 to 10 minutes to complete
cook. It is so fast and suitable for parents as office worker that want to leave home early in
the morning and want to cook something simple for their family to eat. People that working
in Indonesia is high amount compare to unemployment. Adabi fried rice paste will easy to
sell to them because they do not have much time to cook.
Adabi make it easy to cooking.. Students that live far from their family also will cook to save
their budget same with single people. Students abroad also use this fried rice paste to cook to
survive in other country especially in country which is difficult to find Halal Foods. Adabi
also trusted company that have Halal certificate to Muslims.

4.2 Ethnic
In Indonesia there are more than 300 ethnic groups. In the table below is the largest
ethnic groups in Indonesia. Indonesia have various type of ethnic because of the migration
from India, Arab, TiongHoa and others country. It is not surprising that Indonesia is the
fourth-largest according to their population. The various of ethnic make them special to each
other base on their interest in food. For example some ethnic like the spicy food while others
ethnic tendency to choose sweet food or sour food. Adabi should adapts the fried rice paste
according to the customers demand. Adabi company needs to do the research toward their
customers and ask a feedback to improve the fried rice paste whether it is fulfilled their taste.
Normally, Indonesia and Malaysia do not have a big differences because it is quite similar.
Malay ethnic also have in Indonesia and it is not a problem for Adabi to remains in the
market.

Largest Ethnic Groups in Indonesia

 % of total
Group
Population
Javanese     42.65
Sundanese     15.41
Malay      3.45
Madurese      3.37

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Batak      3.02

Minangkabau      2.72
Betawi      2.51
Bugis      2.49
Bantenese      2.05
Banjarese      1.74
Source: Statistics Indonesia Population Census 2010

4.3 Social Trend

As technology and media social become trends, Adabi also not being left behind,
Adabi have own website that customers can get information from the website about their
products, history, management teams, awards and others. Adabi also use Facebook as
platforms to connects with their customers. Youngster are always with their smartphones
Adabi can catch their eyes with the attractive video, promotions to attract them buy the Fried
rice paste. It will be an advantages to Adabi make a video recipe how to cook fried rice using
their paste. YouTube also famous web to post video and become trends nowadays.
Youngster like student they look on YouTube to search the recipe of the foods. Indirectly,
this will help Adabi to market their products. As become a trend, not only youngster but
everyone in the world also use YouTube to look for the music, tutorials and many more.

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5. How Adabi company face the competition? How does a host country political and
international legal environment or trade barrier affect the Malaysian companies in
their international marketing activities?

A. SEGMENTATION

Market segmentation can be defined as categorized market into definite groups with
distinct needs, comparatively, way of behaving or characteristics who might need separate
products or marketing mixes. The objective of market segmentation is to enable the marketer
to ensure marketing mixes to meet the needs of one or more certain segments. In the term of
choosing the right segmenting criteria is necessary so that the marketing plan can be take out
correctly. Adabi Consumer Industries Sdn Bhd actually segmenting consumer markets as
they present various products to the consumers. They have tried divergent segmentation
variables to find the best way to get the sight of the market structure, to acquire the maximum
profits and to deliver customers’ satisfaction.

Moreover, one of the segmentation variables for consumer markets is geographical

segmentation. Adabi’s manage to separates the market into different geographical units based
on city, metro size, country, climate and market density. Adabi’s can give priority more on
Indonesia market for their new product called Fried Rice Paste. However, Adabi’s also export
their products to others countries as well, such as Singapore, Thailand, Philippines and
Vietnam. This Fried Rice Paste can be market in many places in Indonesia, such as
supermarket, hypermarket, small market, also general merchandise. It means, Adabi’s Fried
Rice paste should not be market only in big cities, but also in smaller towns because the price
is affordable as well as suitable for all level of income. Adabi’s Fried Rice Paste can be sell

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in every place in Indonesia such as in place that are crowded with people like in cosmopolitan
areas of Medan and Jakarta. So, the larger society in Indonesia can increase their revenues
and sells because this type of Fried Rice Paste can be considered as daily-consume product
which is easy to use and convenience to buy by their customer.

Moreover, demographic segmentation separates the market into groups based on variables
such as age, family size, gender family life cycle, occupation, income, education, race,
religion, generation and nationality. For Adabi’s, their Fried Rice Paste is a product that are
instant(ready-made) and are suitable for all age, low and middle income workers or family.
This is a good chance for them to offered as nowadays either in Malaysia or Indonesia, the
demand for new and convenient packaged food product is high due to consumers find
themselves are involved in busy lifestyle.

Furthermore, Adabi’s should identify their main consumer target for Fried Rice Paste. They
can aim for women group which already married, and usually cooks, because this group are
the person who prepare foods for their family every day and of course can contribute big
demand from them. This kind of product also can attract the housewife group because
basically women like Fried Rice Paste that offer them a convenient but at the same time
provide good taste. Moreover, the consumers will prefer something that is easy to prepare,
especially food. While convenient, Adabi’s Fried Rice Paste is produced in travel-friendly
type of package which is easy to bring anywhere, measure for serving and easy to uses. This
could be something hit if it was promote in Indonesia as it fulfil needs and satisfaction of the
buyer.

To be more clear, for example, housewives. Adabi’s product is a essential to every

housewives. This Fried Rice Paste could give the favours to increases the taste of the dishes.
This Fried Rice Paste also could make the cooking process become more easier and faster
which are ready to eat by having only a few steps .Moreover, for a people who are in the
process of learning how to cook will prefer Adabi’s Fried Rice Paste as the product can
satisfy their demand and needs.
Next is Adabi may aim for student as well. As we know this perfect Fried Rice Paste
can make the cooking process more faster and easier, so it could be said that Adabi’s give
the chance for Malaysian people that stay in Indonesia as they could still taste and enjoy the
delicious Fried Rice Paste from Malaysia . This may rise up their potential customer from

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Indonesian student as well if they are courageous to try this product. On top of that, the prices
is affordable thus it can helps students in saving their money.

Beyond the doubt , this Fried Rice Paste could be different from others competitor
because it is come up with the clear status of HALAL recognition from government and
Adabi’s also known for 100% Halal product. So it will be suitable for all the religions and
races since Indonesian countries is a multi-racial country and could be categorise as Islamic
countries too. This might help them to expand their business in Indonesia successfully.
Furthermore, Adabi’s has create their own unique and special Fried Rice Paste recipes that
could not have same taste like the others which can attract all the races to give it a try. For
example, inside the paste it has a mixed spice ingredients that provide Malaysian taste.
Adabi’s also have the possibilities to focus most on the people Indonesian group because they
are basically prefer to eat something that are can be spice but sweet at the same time and this
product has the sense of taste for what they would prefer to. Although the classifying of
ethnic groups in Indonesia is not flexible and in some cases unknown due to migrations,
cultural and linguistic impact. Below is the Adabi’s Fried Rice Paste.

Other segmentation which is for consumer markets is psychographic segmentation.

Psychographic segmentation can be interpret as ways of dividing markets based on
personality, motives, and lifestyle. Base on the personality concept, Adabi’s could mainly
focus on Malay Jawi group because they are influence by the culture. Adabi’s Fried Rice
Paste can be brought into Indonesia, mainly to Medan, Sumatera where there are a lot of
Malay Jawi group here. Medan has been picked as the entry point as Adabi’s Fried Rice Paste
are familiar to the locals who knew about Adabi’s from Malaysia TV transmission. Through

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this the demand for the products may be encouraging as well. This ethnic located in Medan
and near Jakarta. The city is the largest outside the island of Java and metropolitan third
largest in Indonesia after Jakarta and Surabaya. This is also where most tourist and foreign
people is spotted the most. Thus, this is the best location in Indonesia where the Adabi’s
Fried Rice Paste can develop. Moreover, Malay Jawi are influence by culture so if their
culture taste also is near more like Malaysian and so likely their product acceptance towards
this product will be great. This may sound as a risk but the possibilities to success here is
bigger but as long as Adabi’s Fried Rice Paste could hit their wants and needs then it should
not matter. In the motives concept, the consumers’ believe their tagline is “tasty, easy, save”.
So, if Adabi’s provide good quality and good taste of Fried Rice Paste in their products to the
customers, Adabi can gain the customers loyalty. Besides that, lifestyle means a set of values
or tastes displays by a group of consumers, especially as they are reflected in expending
patterns. For example, the comparison between the traditional and modern lifestyle. In old
times, people usually use traditional way which uses the nature ingredient to make food, but
in the modern lifestyle, nowadays people more prefer uses the convenient as well as instant
ingredient and Adabi’s Fried Rice Paste have those characteristics for surely it can fit
customer demand.

The last major segmentation variable is the behavioral segmentation. This

segmentation is separates a market into group base on consumer level of knowledge,
occasions, use, behavior as well as response towards the products, benefits, and loyalty status.
These behavior variables are the best conceptions for develop market segments for new
product like Adabi’s Fried Rice Paste. Adabi’s basically can use the word of “Bersih dan
Asli” interior concept as their strategies to develop loyalty consumers as the consumer can
clear that Adabi’s are the company that provide food-product with good image and good
tastes trough that word strategies. In fact, consumers always assume that what are describe at
the packaging is true and if it equals to the quality of the product as claimed by Adabi’s then,
they will loyal to Adabi’s Fried Rice Paste without doubt.

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BERSIH DAN ASLI

Next, base on the knowledge concept, customers nowadays alert about their safety especially
in food-products, so they will always try as much as possible to choose the product that they
feel is safe to consume. Adabi’s however has a good criteria packaging because the food
content of Fried Rice Paste is list in complete behind it packaging. Moreover, the packaging
is also safe and cannot be easily rip. It may makes the customers have a positive response
towards the products because of that.
B. TARGETTING

Targeting can be describe as a set of buyers sharing common needs or characteristics that
the company decides to work on. There are three approaches in the target market which is
differentiated or segmented marketing, undifferentiated marketing or mass marketing,
concentrated or more known as niche marketing, and micromarketing.

In differentiated or segmented marketing, the company basically go for in fulfil each of

the company’s segments need specifically. Undifferentiated marketing is a market
where the company selects to sell its product in a great and stable way to the other all of
its target segments, it indicate a marketing attempt not targeted at specific market segment
but plan to consider to a wide range of customers. This approach is appropriate in a
market that have insufficient diversity of interest. As for the concentrated or niche
marketing, the company will only concentrated on one segment where they can serve
best and deliver that one particular segment’s need . And the last is Micromarketing
which defined as practice of adjusting products and marketing programs to the necessity

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and wants of specific individuals and local customer group (such as local marketing &
individual marketing).

Before make a good appropriate target segments selection, Adabi’s should measure of
their market segments through three factors in term of segment size and growth, segment
structural appealing (attractive), and company purpose and resources. Evidently, in
Indonesian market, Adabi’s should alert that they are newbie and observed as “Small fish
in a large lake” because in Indonesia market there are lot of available Fried Rice Paste
from competitors too, such as SAJI, INDOFOOD, ASIAN HOME GOURMET,YEOS,
BAMBOE, SAJIKU, MAGGI, and others. It means that Adabi’s product still do not have
very large market share in the Indonesian market since there are too many opponent in the
Fried Rice Paste paste market and we cannot deny that is confine by its competitor.
However, Adabi’s can sustain their Fried Rice Paste in the market if they make a right
selection for target market and form competitive advantage.

(From the pictures, we can see that there are many paste and powder of fried rice instant
company in the market now and maybe many more in the future)

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Next, after done with analyse the different market segments, Adabi’s can use
undifferentiated marketing or also known as mass marketing strategy in their target
marketing. This is because, by using the undifferentiated approach could make Adabi’s offers
a great value to a consumer about their single product which is Adabi’s Fried Rice Paste or
even they can approach new product line using a marketing mix in the future. Currently,
Adabi’s is selling the Fried Rice Paste which is convenient to use for all customers. At any
rate, this is a logical approach for markets that are generally homogeneous like Adabi’s Fried
Rice Paste. By using this strategy, Adabi’s can protect and decreased their organization cost
of marketing research and the administrative struggling of segmenting a market. What’s
more, it can smooth of the long runs in the production of manufactured goods and also
allocate economies of scale.

C. MARKET POSITIONING
Market positioning is a sort for a product to occupy a clear, distinctive and desirable
place relative to competing products in the minds of target customers. Positioning also
involved in implanting the brand’s unique benefits and differentiation in customer’s
minds. A product’s position is the tangled set of perceptions, impressions and feelings
that consumers have for the product dissimilar with competing products.

Markets have to get to know target customers’ needs better than competitors do and to
contribute value as the key to winning target customers and building successful
relationships with them. To the level that a company can position itself as distribute
superior value, it attain competitive advantage. Basically, positioning starts with
differentiating the company’s marketing offer so that it will provide consumers more
value than competitors’ offers do.

In conjunction, the markets need to think through the customer’s overall experience
with the company’s product and service in order to find the points of differentiation.
An aware company can find ways to see a difference itself at every point where it
comes when doing contact with customers. To give an example, these are five specific

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ways of differentiation that Adabi’s can differentiate its offer, which consist
differentiation in product, services, channel, people, and image differentiation.
Adabi’s basically could differentiated its offer in a few differentiations, which are
product, image or brand differentiation.

Firstly, for product differentiation, Adabi’s differentiated their products based

on ingredients and tastes. Nowadays, customers are aware about the taste of quality
food that they buy worth the money or not. Most customers believe that home
cooking is the best for them because they can estimate what kind of ingredient they
want to use. Because too much flavouring and msg for example in outside food makes
them feel a bit distressed which they believe that can affect their health. But Adabi’s
Fried Rice Paste are guaranteed 100% percent Halal, hygenic, wholesome, and
healthy. To avoid that, Adabi’s decide to produce their Fried Rice Paste by minimize
amount of permitted flavouring and good cooking-oil inside, special mixed spices
which can provide special quality in consideration for the customers health. Besides
that, Adabi’s also produce this Fried Rice Paste in one flavour only which make it
easy for consumers to choose as the taste is suitable for all age. Adabi’s has seemed
that considers of its customers’ needs because this paste contain all in one flavour.
This make it is special and unique as well as different from other company make it
become one of competitive advantages for in competing with its competitors. Thus,
because of the speciality they made for the product, Adabi’s will attracted a lot of
customers in purchase their products and will eventually be their loyal customers in
the future.

Finally, even when competing offers look the same as Adabi’s paste, buyers may
perceive a difference of the product they want to purchase based on company and
brand image differentiation. Basically, a company or brand image should carry the
product’s distinctive benefits and positioning. While developing a strong, powerfully
build and distinctive image calls for creativity and a lot of work. For example, the
chosen of symbols, characters, and other image elements that must be communicated
through related advertising that brings the company’s or brand’s personality. Here we
can conclude that Adabi’s has introduce its brand’s advantages and differences in
customers minds. For instant, most of people aware that Adabi is a household name in
every home in Malaysia. Because of that they got an idea to create the Logo which is

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represented by the established Royal Malay Palace of Malacca in the sixteenth

decade. The Malay palace denotes the fact that Adabi products have a very well-built
heritage, similar with the quality food that was served to the royalties in the past.

How does a host country political and international legal environment or trade barrier
affect the Malaysian companies in their international marketing activities ?

Overall, it doesn’t matter what kind of businesses the company is doing, but they should be
aware and give attention on how a host country’s political system gave impacts towards
economy as well as their particular firm and industry. The company need to assess the barrier
available to determine how international policies and legal environment, rules, and
regulations will affect their business in the home country.
Based on data provided, the business environment in Indonesia could be challenging and
tough, with Indonesia ranked 114 out of 189 countries in world in the Ease of Doing Business
2015 report by the World Bank.

Firstly, is the political risk. The political stability of the government in the host country. The
impact from this is when the government is not stable like when it used to be such as change
in the Prime Minister and it cabinet, it may lead to changes in policy business , changes in
laws and regulations for export and import to Indonesia Market too. Which called as
government interfere in its country economy. Other than that, although deregulation has
positive result in reducing some barriers, but non-tariff barriers continuing wide-spread and

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the bureaucracy can still be unmanageable. Laws are often unclear or conflicting. Somehow
Indonesia may begun to carry out local content requirements that block some products from
being sold in Indonesia. This will reduced the consumers and as well as the demand for the
product. It is such a huge impact to the Malaysian company as they will be less profitable. In
conjunction, if this is happened continuously, then the firm cannot survive their export there
and could lead to a company having to reduce its operations in the market or to leave out
entirely from the market altogether.

Next is, barrier like infrastructure and service networks in Indonesian may have not been
developed or maintained fully, they still have to keep distance with the strong consumer-led
economy as well as will causing raise in transaction costs and inefficiencies that restrain
exporters and investors. This could also give impact for the Malaysian company in term of
high cost for export proceeding to Indonesia. Such a development could impact harshly on a
firms in long-term business.
Finally, the barrier of taxes. Taxes are alternative way that governments of host country can
cash in on importing products to their country, so their citizens’ spending does not let much
money to leave the country. Taxes can and do impact Malaysian companies ability to make a
profit selling goods and services or export in a foreign country . High tax rates on goods sold,
can make it difficult, hard and discourages for a company in home country to stay on the right
side between profit and loss.
In conclusion, depending on how long a company looks forward to operate and export their
product in a international country and how easy it is for it product to enter and exit, a firm
should also check out the country’s political risk and stability for a better outcome .

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6. SWOT ANALYSIS
1. STRENGTH
 In Global Market,
- Have a quality process and procedures in making Perencah Nasi Goreng
Paste.
- The Perencah Nasi Goreng Paste has innovative offering to getting customer
equity.
- Easy availability.
- Reasonable price for lower income group.
- Suitable for all types of segmentation.
- Adabi will locate the Perencah Nasi Goreng at the strategic store which is
surrounded by bustling population.
- Because Adabi is the market leader for soup spices in Asia, it will make
Adabi easier promote Perencah Nasi Goreng Paste.
- Adabi use adaptation for market their product. So the percent probability of
receiving the product of a country is very high.
- In order to penetrate the market, Adabi uses joint venture based on OEM
( Original Equipment Manufacturing ).
- Adabi always concern about their customer’s lifestyle in other country which
Adabi make their product suitable with their lifestyle. For example, in

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Singapore markets, Adabi has launched the canned products because for the
Singaporeans thought with eating from canned product. It make them easier to
eat.
- Adabi has a big market in global market which their market size is up to 278
billion. So it will make easy for Perencah Nasi Goreng Paste be famous.
- Adabi produce Perencah Nasi Goreng Paste that is very difficult to imitate by
competitors.
- Adabi have strength of the product Perencah Nasi Goreng Paste in terms of
taste is distinctive and nutritious.
- Product diversity. It mean that Perencah Nasi Goreng Paste have many favour
to give opportunity to customer choose suitable flavours.
- Extensive diversity

 Adabi has efficient management team:

- Adabi’s team work cooperatively, sharing common goals as well as the
resources to achieve their goals. They are productive, not because team
members never disagree, but because they have worked out ways to resolve
conflicts when they occur.

 Adabi always keep their customers first and keep abreast of their tastes to produce
the new product.

2. WEAKNESS
 Low pricing.
 Raw material cost currently unprotected.
 High employee turnover.
 Challenges regarding the product, taste and packaging.
 Perhaps the biggest weakness is their inability to provide consistency in their
quality of their food product, as Adabi often has to call in many product due to
poor supplies.
 No brand recognition.
 No have a main outlet in the other country.

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3. OPPORTUNITY
 Rising demand for food that is easy to use.
 Can use new technology in process to produce the Perencah Nasi Goreng Paste.
 Further expansion through acquisitions.
 Increase in production capacity in Indonesia and China which is now
implemented jointly in both country
 Adabi can take over food companies are able to provide a synergistic effect on
development activities.
 Moving to the new market segments that offer improved profits.
 A market vacated by an ineffective competitor.

4. THREATS
 Competition from others company like example Seri-Aji.
 Changes in consumer tastes.
 Change in consumer demand when there are a lot of people nowadays more
interested in fast food like KFC and McDonalds.
 Price war with competitor.
 Taxation in produced Perencah Nasi Goreng Paste.
 Strong relationship that are held between competition and the retailers.
 Tariff trade barriers affecting their positions in multiple countries.

4P’S For Perencah Nasi Goreng Paste

I. PRODUCT
 According to the situation now, many people are preferred to buy
something that can help them save their time in cook. So, Adabi was

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produced the Perencah Nasi Goreng Paste to help people cook fried rice
with faster but yummy.
 Adabi use the principle put the consumer taste bud first before make this
Perencah Nasi Goreng Paste.
 This product was build based on the acceptance of the consumer
 Adabi was studied and identified the Perencah Nasi Goreng Paste is
suitable for export.
 Ingredients: Shallot, Dried Chilli, Fish Sauce [anchovy extract, water, salt,
sugar] palm oil, Mixed Spices, Dried Prawns Flakes, sugar, hydrolysed
vegetable protein, Monosodium Glutamate (E621).
 Packaging: Adabi make a packaging for Perencah Nasi Goreng Paste with
just packaging it with a small square packet to make it easier to store in
refrigerator.
 Perencah Nasi Goreng Paste is the product that more favourable for people
nowadays.
 Cuisine: Chinese, Filipino, Malaysian, Philippine, Singaporean,
Taiwanese, Thai

II. PRICE
 Adabi identified the suitable prices according to that country currency,
production cost and based on income of the consumers in allow them to afford
buying the Adabi’s products.
 The Perencah Nasi Goreng Paste is sell with a low price to encourage people
for buy it.
 Adabi use competition pricing when introduce this Perencah Nasi Goreng
Paste at the new market. Adabi will setting a price for Perencah Nasi Goreng
Paste in comparison with competitors. There will be option that Adabi will get
from this setting; price lower, price the same or price higher than competitor.
Adabi will choose price lower but high quality, suitable with their objectives.
 Adabi also can use Cost Based Pricing to put the price at the Perencah Nasi
Goreng Paste. This pricing is similar to cost plus pricing but the different is it
will consider other factor such market condition when setting prices.

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III. PLACE
 Before Adabi bring the Perencah Nasi Goreng Paste to global, it identified the
acceptance of the consumers about this product.
 Chinese, Filipino, Malaysian, Philippine, Singaporean, Taiwanese, Thailands .
 Future plan: enter Europe in process because the taste and preferences from
European differ from Asian.
 Adabi will ask a freight forwarder (an expert who understands import/export
rules, shipping regulations in foreign countries, and the best methods of
shipping to those markets) to help in transportation to other country.

IV. PROMOTION
 Use different promotion for different country.
 Adabi uses the language of that country together with their culture in order to
attract the attentions of the customer
 Adabi make sure that the promotion they use must meet the requirement of the
particular country’s regulations in order to be aired in the televisions and also
to be viewed for the publics.
 Sales Promotion
o Adabi always make a sales promotion if they have celebration day.
 Public Relations
o : In introduce this Perencah Nasi Goreng Paste in the new country;
Adabi had made several community programs like example program
for orphans. It can make people awareness with the existence of this
product.
 Direct Marketing: Adabi will put the Perencah Nasi Goreng at the famous
retail store
 Sales Force: Adabi use this tool to seeking out and engaging customer
prospects. It often work directly with customers like over the phone, online
sales chat or face to face.
 Advertising
o Verbal Communication: the most effective tools for advertising is
word-of-mouth. The employees is the most valuable advertising tool in

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facilitate “spreading the word” about the product. Besides the be a

employee, they also can be business’ promotion special sales,
recruiting new customers and ambassadors. With more coaching from
management, the employees can be able to implement all the ad tools
at disposal.
o Internet: Adabi use this tool with using social media sites and bulk
email services. Adabi also promote it in their own website, the most
effective and least expensive advertising tools.
o Direct Mail: it consists catalogues, letters or brochures that mailed
directly to people. Even this advertising is need a lot of money, but
Adabi maintain to use it for promote the Perencah Nasi Goreng Paste
because they sure that they will reach to the person.
o Radio: while doing something, people will listen to radio. Adabi use
the broadcast classical music because the listeners of this broadcast are
the older listeners.
o Outdoor signs: Adabi use this tools to catch the attention of the
customer who through the signs. Adabi will make a big colourful
outdoor sign of Perencah Nasi Goreng Paste to make it interesting.
o Poster: Adabi make a small posters and placed on public transport such
as train and bus to inform people about their Perencah Nasi Goreng
Paste.
o Newspapers: Adabi use nationwide newspapers to promote the
Perencah Nasi Goreng Paste.

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CONCLUSION

Adabi product was created in 1984 from a small factory, Light Industrial Area in
Kuala Lumpur. Within a span of two decades, the company was able to make Malaysian
consumers fall in love with their products. They still ride the train moving towards local and
global success. Adabi have many products such as, curry and soup, sauce, pasta product,
flour, instant product and have local and international branches. By joining the International
strategic partnerships in Indonesia, they can increase their market share and strength. The aim
should be to structure an alliance that will achieve both goals partners. A good strategy can
start with the option that offers the most flexibility and a move towards greater commitment
once we have more experience and confidence in selected markets. Whatever strategy the
company chooses, they will need to ensure their business is well protected.

Adabi can expand their market globally without a doubt, especially for the Indonesian
market. As marketers before entering the international market, marketers should do research
on the state. Adabi must adapt according to the needs of their consumers. This is an
advantage for Adabi to join the Indonesian market because the Malays were also there. They
will probably be the first customer and will be spread to family, friends, college friends,

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housemates through word of mouth. Adabi is a famous brand in Malaysia so they have a high
market share and willingness successfully to expand fried rice pasta for the Indonesian
market. Medan has been picked as the entry point as Adabi’s Fried Rice Paste are familiar to
the locals who knew about Adabi’s from Malaysia TV transmission.

There are three approaches in the target market by Adabi which is differentiated or
segmented marketing, undifferentiated marketing or mass marketing, concentrated or more
known as niche marketing, and micromarketing. Depending on how long a company looks
forward to operate and export their product in a international country and how easy it is for it
product to enter and exit, Adabi firm should also check out the country’s political risk and
stability for a better outcome .

References

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Ekonomi&pg=bs_09.htm

James, F, F. (2010). Foreign Market Entry Mode. Retrieved from

http://www.quickmba.com/strategy/global/marketentry/

Wright, C, T. (2015). What is Global Strategic Partnership. Retrieved from

http://theresourcefulceo.com/2015/04/what-is-global-strategic-partnership/

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Freevectorise. (2014). Adabi Product. Retrieved from

http://freevectorise.blogspot.my/2014/10/adabi-product-logo-vector.html

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Razma Y. (2013). Parent company and the main player of Adabi Group. Retrieved from
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Docfoc. (2015). Swot Analysis Adabi. Retrieved from

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Marketingschool. (n.d). Explore the Strategy of Direct Marketing. Retrieved from

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WaiYeeHong.com. (n.d). Retrieved from

https://shop.waiyeehong.com/food-ingredients/cooking-ingredients-condiments/seasoning
sachets/nasi-goreng-fried-rice-paste

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