Task 2

The corporations usually have massive budgets that is used to advertise their products,
and this strategy is success in attracting the customers. This issue can affect the existence of
local product because individuals are more familiar with the ads’ products. To ensure that
local product become the first choices, the government need to organize some programs and
increase the literation of society about the quality of local products.
The massive advertising conducted by the big enterprises results the high attention
from people who watch and read the ads, and it will improve the willingness to buy after see
the promotion. It causes the lower intention to use the local brand, this happened because
small medium enterprises (SMEs) have restricted money to pay various ads’ platforms. They
are focus on developing the product and try to market through lower cost advertising media,
such as Instagram and Tik Tok because those media are free and easier to use. As a result,
individual who buy their product just limited to their followers. For along time, it can
decrease their selling performance.
SMEs have a limited resources to develop their business and face the challenge form
the larger business actors. This issue cannot be fixed by the small business its self, due to the
limited resources that they have. Therefore, the government need to release some regulations
about promoting the local brand and giving an experience that local product has the same
quality as big brand. For instance, the ministry of tourism in Indonesia makes an exhibition
for SMEs to introduce their product and promoting them to potential investor to scale up
small business.
In conclusion, huge companies spend more money to promote their product through
various ads to gain the customers. To make sure that small business products are getting
attention from people, the role of authorities is needed to help small medium enterprise exist
trough numerous strategic programs. As a result, people are interesting to spend their money
to traditional products.