Entering Indonesian Market: A Practical Analysis for Alana's Company

This report analyzes the practicality of Alana's Company entering the Indonesian market. It discusses the political, economic, socio-cultural, technological, environmental, and legal factors that may impact the business. The report also outlines marketing objectives and implementation strategies.

International Marketing
Management

Executive Summary
The report was made for the reason to look at whether it is practical for Alana's Company
to enter Indonesian's market. Be that as it may, Alana's Company was set up in 2011 for building
up the home-made new formula and delivering the bona fide sauce from particular rich flavors
from various societies around the globe. As of now, Alana's doesn't have particular momentary
objectives, which could be influenced to the Alana Lowes Sauce Company. What's more a few
elements, which incorporate political, monetary, socio-social, innovative, natural and legitimate
likewise influenced into the business (Schmid, Grosche, and Mayrhofer, 2016). The PESTEL
investigation above has demonstrated that the open doors that Indonesia showcases have positive
outcomes as opposed to the dangers. Moreover, the current and rising contenders happen which
will influence the business opportunity so as to enter Indonesia advertise.
The advertising "Shrewd" goals and the showcasing blend system (4P's) in term of spot, item,
cost, and advancement had been talks about in this report to defeat the issue. Additionally the
objective market in Indonesia was distinguished by utilizing promoting separation methodology
which reason to endure Alana's business in Indonesia. What's more the execution and assessment
of the business action all together entering Indonesia market will be led from 4" quarter of 2019
until the finish of year 2020. The business action will be assessed by the focal organization
which situated in Australia.

Table of Contents
Executive Summary.........................................................................................................................2
INTRDUCTION..............................................................................................................................4
Current strategies.........................................................................................................................4
Environment analysis...................................................................................................................5
3.1 Political analysis:...................................................................................................................5
3.1.1 Government Relations.............................................................................................5
3.2 Economic analysis.................................................................................................................5
3.2.1 Inflation rate....................................................................................................................5
3.2.2 Exchange rate..................................................................................................................5
3.2.3 Gross domestic product...................................................................................................6
3.3 Socio-cultural.........................................................................................................................6
3.3.1 Life style.........................................................................................................................6
3.3.2 Hofstede Cultural Dimension.........................................................................................6
3.4 Technological environment...................................................................................................7
3.5 Environmental........................................................................................................................7
3.6 Legal Environment.................................................................................................................8
4. Marketing objectives....................................................................................................................8
5. Implementation............................................................................................................................9
CONCLUSIONS............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRDUCTION
In 2012, Alana’s developed a new sauce recipe and products called Alana’s sauce. The
reasons of Alana’s develop this products because of an involvement in food industry, which arise
form food festivals around Australia, including the hugely popular “Masterchef Live’ and the
national “Good ood and Wine Show” (Lowes Alana. 2013). Alana’s sauce consist of varicty
sauce which spice up the meals, however we more intense to sell the Alana’s BBQ sauce. Each
of these sauces is a homemade recipe developed from distinctive rich flavors from exotic, yet
familiar cultures around the world and provides an exciting and spicy alternative to the more
traditional tomato or straight chili based sauces, they have no artificial colors, flavorings or
dehydrated ingredients (Sinkovics, 2016). In addition Alana’s sauce are free from preservatives,
gluten free, and more importantly is the sauce are Australian Made and hallal certified (Bmag
2013). These products could be only finding in Coles supermarket only and online shopping
through Alana’s website. In this report will discuss about the organization vision, mission, and
current company strategy. the SWOT and PESTEL analysis will be apply to find out the strategy
to achieve the goals. Also identify the e-marketing strategy to achieving company goals and the
implications (Alana’s 2013).
Current strategies
Duc to Alana’s sauces are new to the market, it is difficult to sell their products to the public.
Furthermore, to be accepted in the market, Alana’s implemented Porter’s strategies, which are
overall cost leadership, differentiation, and focus (Fletcher et al. 2014, 302). For the cost
leadership strategy, Alana has achieved the lowest costs of production and distribution so that
their product price is lower than its competitors and wins a large market share. The
differentiation strategy used by Alana’s where the Alana’s target two or more target market
segments, with the competitive prices (Sun, Paswan and Tieslau, 2016).

Environment analysis
3.1 Political analysis:
3.1.1 Government Relations
Indonesia has a strong relationship with another country (Global edge 2012). Indonesia is the
one of the member of the Asia-Pacific Economic Cooperation (APEC). Economic Partnership
Agreement (EPA). Association of Southcast Asian Nations (ASEAN), Organization of the
Islamic Conference (OIC), and Intergovernmental Group on Indonesia UGG) (Global edge
2012). Currently, Indonesia and Australia has a bad political relationship in term of asylum
seekers, human rights and also terrorism (Morgan, Feng, and Whitler, 2018). As a result, the
export and import activities will be harder due to the bad political relationship between Indonesia
and Australia. This demonstrates that the bad political relationship between Indonesia and other
countries such as Australia will be a threat for Alana’s Company to introduce their product to
Indonesia (Vellas, 2016).
3.2 Economic analysis
3.2.1 Inflation rate
Indonesia has an uncertain expansion rate compared to Australia. This uncertain blowing rate is
indicative of Indonesia's high expansion rate in 2019. This indicates that Alana Company * will
have to face a high degree of blowing to trade its activities with Indonesia. This paper indicated
that the IPC boom in Indonesia is receiving a boost that lowers the sauces deal (Cateora, 2020).
3.2.2 Exchange rate
Indonesia has a crippling currency conversion status compared to Australia. This uncertain
currency exchange scale points to Indonesia's slow pace of change. As a result of this definition,
Alana Company will sell its products at the lowest cost due to Indonesia's low conversion rate.
After all, this unstable cash conversion ladder will pose a risk for the group to expand its
business (Hollensen, 2019).

3.2.3 Gross domestic product
In 2019, total gross domestic product (GDP) in Indonesia is approximately $ 1278.04
billion (World Bank 2020). In addition, Indonesia also has high GDP growth of around 6.2
percent in 2019 (commercial finance 2020 issues). Therefore, Alana Company expands its article
contracts as customers go through additional funds to purchase their article. This will present
reasonable open doors for Alana Company to ship their item to Indonesia.
3.3 Socio-cultural
3.3.1 Life style
Several different angles affect Indonesia's lifestyle, such as the wage level of Indonesian
customers. The pay of the Indonesian public may vary from low wage to high wage. Moreover,
most customers living in Indonesia's capital, Jakarta, would be at the center of a significant pool
of paying executives who could purchase the Alana item (Hüttner, 2018). Therefore, the Alana
group should know the specific wage levels within Indonesian clients. This shows the open doors
for the company Alana to enter the market in Indonesia.
3.3.2 Hofstede Cultural Dimension
There are some social measures by Hosfstede that could help Alana manage its products for
entry into the market in Indonesia. Just out of the ordinary, collectivism against individualism is
characterized as a general public position that reflects whether people's mental self-portraits are
marked down to "I" or "we". therefore. The distance of the force is characterized as the
communication of what the least desirable from society admits and expects the powcr to be
distributed asymmetrically. rather, uncertainty is characterized by communicating what
individuals in society feel strange with vulnerability and equality Fortunately, Time Oricntation
is characterized as negotiating and setting goals to achieve goals. Finally, femininity versus
masculinity is characterized by the way in which socialism in a given country decides to adhere
to more human-led norms. Sixties, pragmatism is characterized by how people can adapt to
changes in the present. Ultimately, indulgence is classified as the antithesis of a particular
tendency towards life (Hosfstede 2013).
Contrary to the basic idea of the proposal, Indonesia has told Australia that Indonesia is a global
gathering country in which they can all cooperate in all their different collections and ideas

( Hofstede 2013). Indonesia is seen as an indivisible country, given its strong separation of
power, which means that a low-level collection of individuals must make all the choices that
make the most important meeting of individuals half (Hofstede 2013). The levels of vulnerability
between Indonesia and Australia are comparable here and there (Hofstede 2013). They have
comparable ideas in handling the problems that are occurring in the country and are keen to have
direct contact with the archives of others to reach fantastic agreement and timely capability
(Hofstede 2013). Nonetheless, Indonesia is largely a short-lived set-up because its lifestyle
somewhere behind has taken a choice (Hofstede 2013). This could make Australia so profitable
in working together (Hofstede 2013). Indonesia also has a low level of virility (Hofstede 2013).
They each have a unique status of valuc and the lower class is not confused with the institution /
privilege (Hofstede 2013). Moreover, the choices made by the boys are more common than the
women's (Hofstede 2013). From now on, the woman's intended documents become less
controlling when official choices are made (Hofstede 2013).
3.4 Technological environment
The poor quality of Indonesia's innovative foundations indicates the absence of a transport
structure (State Library 2013), the appalling nature of a road foundation. And also the quality of
a low railway base (Indonesia Shipping Report 2012) for building the business in Indonesia.
After all, most of the eksporter who sends the item from abroad is canceled due to the terrible
road frame. As a result of this definition, the road constitution and the railway framework
become an unjustified basis for the transaction in Indonesia, which constitutes a danger for the
Alana Company in the market in Indonesia. Again, Indonesia has a high standard of air transport
cadres (World Bank 2013). Therefore, most buyers use air structures to transport their items from
another country. By definition, the air base must be more efficient, faster and more convenient
for the construction of the transaction, which reflects reasonable open doors for Alana Company
to do its thing exposed in Indonesia (Keegan, 2017).
3.5 Environmental
Indonesia has started its own reuse activity, for example the Dallang Collection to reuse the
plastic material (Reduce, reuse and recycle in Indonesia 2010). As a result of this definition,
Alana's company should know about creating her item with glassware to make her item known to
Indonesia. Therefore, this poses a risk for Alana's company to enter the market in Indonesia.

3.6 Legal Environment
Indonesia has limited prerequisites for importing the object from abroad to consolidate and
improve the strength of society with regard to sanitation and in addition the high nutritional
nature (Food and Agriculture Standards 2013). Despite this definition, Indonesia needed a
planning approach that should be managed by an area operator or freight forwarders (Food and
Agricultural Standards 2013). There are certain principles that buyers need to follow, for
example
 For product produced under license, the Indonesian organization's license and an
information letter from the foreign commercial structure (Food and Agricultural
Standards 2013).
 For imported articles, a letter of reference from the foreign commercial structure, a
certificate of well-being and a radiation test according to the law in force (Kotabe, and
Helsen, 2020).
Therefore, Alana Company must follow Indonesia's import instructions to export its items to
Indonesia. This showcases a company for Alana to ship their products to Indonesia.
4. Marketing objectives
Short term Objectives (less than one year):
Survival strategy:
 Open new store in Capital city of Indonesia called Jakarta between middle to end of
2019.
 Increase brand awareness in Jakarta, Indonesia by 10% by the end of 2019.
 Sustain Alana’s sauce brand in capital city (Jakarta, Indonesia).
Long term Objectives (two to three years):
Growth strategy:
 Increase brand awareness in Jakarta by more or equal to 20% by the end of 2019.
 Increase market share by more or equal to 5% by the end of 2019.
 Increase overall sales by more or equal to 10% by the end of 2019.

 Increase brand awareness by more or equal to 50% by the end of 2019.
5. Implementation
In order for a practice to be effective, a number of companies must be agreed between different
offices. Organizations try to use the presented methods and document potential support to
manage them through the implementation of a framework, but the disappointment of a number of
deployments on a regular basis results from inadequate provision The early stages of the
campaign have arisen due to an unexpected lack of resources or problems (Kotler,, 2018).
The performance of the IT framework typically begins with a vendor-approved decision, a
generally concerned approach that identifies the established rules, the break times and a plan of
allowances for each. the entire deployment process (Kotler, Keller, 2018). The requirements of
the agreement could include the implementation of the framework rules framework, the penalties
identified by problems and references in the mode of use, the documentation, the preparation and
production of prerequisites for the objects just as the merchant's support after which the plot
becomes active in case of problems. Organizations benefit from having the noble and gritty
prerequisites allowed to be listed in hard copy as it provides clear needs to management and
customers at various levels throughout the process. Process and it is up to the seller to do the
thing.

CONCLUSIONS
To conclude, Alana is another founding organization in Australia, which submits its products to
advertising from Indonesia. The definition of knowing the Indonesian ad is because Indonesia
has a lot of barbecue sauce, so opening the doors will be fantastic for the Alana company to enter
the Indonesian market. In addition, the company should also consider risks and deficits to enter
the Indonesia market. In this report, the specific, measurement, convenient, real-time and
additional (SMART) destinations and the advertising system (4P, for example, product, position,
promotion and price) were all promotion to enter the Indonesian market.

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