International Marketing M

an agement
International Marketing is about…
 Agenda
Lucrative Products

Illustration of the 6 Lucrative Products and the Benchmarks

6 Lucrative Products in Indonesia

The company/ International

Lucrative? Benchmark?
The product? marketing strategies?

Conclusion
What are “Lucrative Products”?
 Lucrative
Products

Core Competence Marketing Mix Government

Support

Competitive Advantage of Indonesia

 Competitive Advantage of Indonesia

Firm Strategy, Structure, and Rivalry

Factor Conditions Demand Conditions

Related and Supporting Industries

 The Most Problematic Factors
for Doing Business in Indonesia
Inefficient government bureaucracy 20.2
Inadequate supply of infrastructure 14.8
Policy instability 9.0
Corruption 8.7
Access to financing 7.3
Restrictive labor law 7.1
Tax regulations 6.8
Inflation 6.1
Foreign currency law 5.2
Inadequately educated workforce 4.7
Poor work ethic in labor force 3.7
Government instability/ coups 3.6
Tax rates 1.9
Poor public health 0.5
Crime and theft 0.4
5 10 15 20 25

Percent of responses

Source: World Economic Forum

 Competitive Advantage of Indonesia

Firm Strategy, Structure, and Rivalry

Factor Conditions Demand Conditions

Related and Supporting Industries

 Forestry: CPO
PTPN 4 & Ganesha Energi

Sinarmas

Wilmar Group
Pertamina

Eterindo

Dharmex

Sweeden Bioenergy

Bakrie, Indofood,
Asianagro, Sumiasih
BPPT, Lemigas, RAP, EAI
Source: http://www.biofuels.apec.org/me_indonesia.html
 Competitive Advantage of Indonesia

Firm Strategy, Structure, and Rivalry

Factor Conditions Demand Conditions

Related and Supporting Industries

What is the Illustration of the
6 Lucrative Products?
 Brand

Impact

Marketing Mix

Core Competence Investment

Threat
6 Most Lucrative Products in Indonesia
What is the Illustration of the
Benchmarks?
 Brand Leadership

Market Research
Expansion

Int Marketing
Mix
Global Threat
Superior Value Creation
6 Benchmark Companies
Buccheri and Bally
What is Buccheri?
Focuses on Mid
Maximizes Volume
Level Target
Selling
Market

Prioritizes on
Discount Pricing
Strategies
Why Buccheri is Lucrative?
 1. Resources Availability (2010)
5000 10000 15000 20000 25000 30000 35000 40000 45000 50000

Cow Skin (48,987)

Bufallo Skin (5869.9)

Goat Skin (9540.1)

Wool (9539.7)

Source: http://bataviase.co.id/bahan-baku-dalam-usaha-pengolahan-kulit.bagian-6/
2. Future Development Opportunity
3. The Amount of Transaction
 4. Market Share for Formal Women Shoes
3% 2%
3%
3%
22% Bata
5%
Buccheri
6% Yongki Komaladi
Fladeo
Nevada
7% Sophie Martin
Elizabeth
St Yves
7% Edward Forrer
22%
Donatello
Marie Claire

20%
Source: http://topbrands-award.com/marketshare.index2010
 Market Share for Formal Men Shoes

8%

10%

38% Buccheri
Bata
11% Pakalolo
Carvil
Kickers
Yongki Komaladi

15%

18%
Source: http://topbrands-award.com/marketshare.index2010
What is Buccheri’s Benchmark?
What Buccheri Can Learn
from Bally?
1. Consistency in Delivering Brand
2. Continuous Innovation
3. Travel Retail Industry: International
Global Brand Ambassador
4. Customer Experience Management
Marketing Strategies International
of Buccheri Marketing Strategies
of Bally
Focus on Mid level target Consistency in Delivering
market Brand

Maximize volume selling Continuous Innovation

Prioritize discount pricing Travel Retail Industry

Customer Experience
Management
Astec and Yonex
What is Astec?
Alan Budi Kusuma
Susi Susanti TEChnology
 The Brand

Astec, Athlete, Attitude Victory is the motivation A+V = Harmonious synergy

Is what it takes to compare that ignites the athlete that propels perpetual
champion’s energy
 Uses the Name of
Sells Cheaper Price
the Founder

Has Partnership
with Badminton
Clubs
Why Astec is Lucrative?
1. Indonesia’s Achievement in Thomas Cup
Indonesia’s Achievement in Uber Cup
 2. 4U in the Products

AeroStorm Pro YonexNanoSpeed 9900

What is Astec’s Benchmark?
What Astec can Learn
from Yonex?
 1. Product = Winning

In 1982, Yonex’s Superlight R-7 was the first racquet to win French
Open and Wimbledon simultaneously
 A Year Later..

Martina Navratilova won Grand Slam in both single and double

using R-22
2. Endorser = Champion
Who’s the Endorser Now?
3. Sponsorship
Yonex is Everywhere…
Marketing Strategies International
of Astec Marketing Strategies
of Yonex
Sells cheaper price Product = Winning

Uses the name of the founder Endorser = Champion

Has partnership with Sponsorship

badminton clubs
Eiger and Mountain Hard Wear
What is Eiger?
Meaning of The Brand

Eiger = Mountain in Swiss

Sells Products and Provides Training
Services and Education

Updates
Adventurous News
Why Eiger is Lucrative?
1. Trends of Outbound and Outdoor Activity
 2. High Market Share in Indonesia

Source: hhtp://adventure-brand/percentage-share//index.php
What is Eiger’s benchmark?
 What Eiger can Learn
from Mountain Hard Wear?
1. Environmentally Care
2. Unique Company Culture
3. Innovation
Marketing Strategies International
of Eiger Marketing Strategies
of Mountain Hard
Wear
Sells products and services Environmentally care

Provides education and Unique company culture

training
Updates adventurous news Innovation
Enzim and Colgate
What is Enzim?
Why Enzim is Lucrative?
1. Availability of Worker
2. Product Differentiation
Did You Know?

Fact about Teeth:

You can keep your teeth white

and clean because of your own
saliva.
 In Reality

There are groups of people out there who oppose

the usage of fluoride
What is Enzim’s Benchmark?
What Enzim can Learn
from Colgate?
1. Global Presence
2. Unity in Diversity
3. Community Approach
Achilles and Michelin
What is Achilles?
Why Achilles is Lucrative?
1. Abundant Resources
2. Low Worker Pay
 World’s Rubber Production

Supply of Rubber during the First Half of 2010

* The number of production is in ‘000 tons
371
(7.19%) Thailand
372 Indonesia
(7.21%) Malaysia
1,737 India
498 (33.68%)
China
(9.66%)
Vietnam
Sri Lanka
624 Philippines
(12.10%)
Cambodia
1,379
(26.74%)

Source: http://www.anrpc.org/html/monthly_statistics.aspx
 World’s Labor Force Value

100 200 300 400 500 600 700 800 900 1000

China (812.7)

India (467)

European Union (224.8)

USA (154.5)

Indonesia (113.3)

* The number is in million

Source: http://www.photius.com/rankings/economy/labor_force_2010_0.html
What is so Unique about Achilles?
What is Achilles’s Benchmark?
What Achilles can Learn
from Michellin?
1. Innovation Legacy
2. Viral Marketing and Sponsorship
3. Culture Integration
Vinoti and Ligne Roset
What is Vinoti?
Why Vinoti is Lucrative?
1. Abundant Resources
2. Great Craftsmanship
3. Unique
 List of Vinoti’s Clients

BMW Head Office Mulia Group

Carrefour Nestle

Citibank Philips Morris

Coca Cola Shell Oil

Daimler Chrysler Spanish Embassy

Ernst & Young UNICEF

Exxon Mobil World Bank

 What is
Vinoti’s Benchmark?
What Vinoti can Learn
from Ligne Roset?
1. Collaboration with Designer
2. Customization
3. Environment-Concerned
 Competence-based Strategic Matrix

Speeding-up Anchoring
High
Core Competence

Catching-up Following-up
Low

Not Close Very Close

How Close You are from Your Competitor
 Competence-based Strategic Matrix
Core Competence

How Close You are from Your Competitor

 International Marketing Management Paradigm

Input Transformation Output

Marketing Investments
Portfolio
• Brand
(Share Price)
Research
Programs
Leadership
USA EU ASIA (ROI)
• International
Int. Marketing Projects
Products Service Products Service (IRR) Marketing Mix
Strategy

International
Marketing
Balanced
Scorecard