International Marketing Report: Entering Indonesian Market for Orkid

This report, prepared for an international marketing consultant, examines Orkid Cosmetics' strategy to enter the Indonesian market. The report begins with an introduction to Orkid Cosmetics and the rationale for expansion, focusing on the saturated Malaysian market and opportunities in Indonesia's growing Halal cosmetics sector. Component One delves into strategic planning models, including market-based and resource-based views, and applies SWOT analysis to assess strengths, weaknesses, opportunities, and threats. It also explores strategic planning principles, including mission, vision, and environmental analysis. Component Two examines the customer insights, and product knowledge. The report then evaluates strategic approaches like standardization and risk minimization, followed by a comparison with alternative approaches such as scenario-based and bottom-line planning. Finally, it recommends resource management and allocation of funds. The report concludes with recommendations to improve product quality and marketing strategies. The document is a comprehensive analysis of the company’s plan to enter the Indonesian market, with a focus on strategic planning and market analysis.

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Contents
Component One.........................................................................................................................2
Point 1:....................................................................................................................................2
Point 2:....................................................................................................................................4
Point 3:....................................................................................................................................5
Point 4:....................................................................................................................................6
Point 5:....................................................................................................................................7
Component Two.........................................................................................................................8
Point 1:....................................................................................................................................8
Point 2:....................................................................................................................................9
Point 3:..................................................................................................................................10
Point 4:..................................................................................................................................10
Point 5:..................................................................................................................................11
References................................................................................................................................12

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Component One
Introduction:
Orkid Cosmetics is preparing to expand its cosmetics products to Indonesia. It is because the
current market in Malaysia is already saturated. Orkid Cosmetics is planning to expand in
Indonesia as there are more consumer-related market opportunities. Orkid cosmetics has been
identified to be an international global trendsetting Halal cosmetic brand for young girls and
conscious women. It was established in October 2016 and has attained substantial popularity
within the short period of time. The company has attained popularity in offering affordable
and high-quality products made fresh from Kuala Lumpur, Malaysia. The products of Orkid
are also manufactured by a JAKIM (Islamic Affairs) permitted by Halal manufacture in
Malaysia (Halal & Co, 2020).
The cosmetic sector in Indonesia has performed robustly in the past years with the growing
middle class and progressively prosperous customers. The Halal regulations in the
Indonesian cosmetic industry have changed totally and are capitalized on this trend. The
target market of Orkid cosmetics will comprise young girls and working women who are
fashion conscious. The retail service has even boomed in the last few years (Orkid Cosmetics,
2020).
There is majority of Muslim population in Indonesia with the count of 203 million who prefer
to use Halal products. There are even no restrictions on doing business in Indonesia with any
nations. In such a scenario, Orkid cosmetics can deal with the home nation without any
obstacles. The company is also capable of targeting to the greater segment of the women in
Indonesia.

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(The Minlist, 2018)
Point 1:
Relevant international strategic planning models
Orkid cosmetics will make usage of the global strategic planning model to exemplify the
planning procedure.
Define strategic planning
The strategic planning is the procedure of authenticating and forming a direction of the small
business by assessing where the organization is and where it is going. The strategic planning
offers a place to record vision, mission, and values with the long-term plans of the
organization. The strategic planning has a great role in communicating strategic plans,
increasing productivity, recognizing strengths and weaknesses, and setting the direction of
business along with nurturing a proactive business.
The strategic planning concentrates on assimilating different business departments to attain
organizational goals. It is the art of creating business strategies, executing them and assessing
the impact on the basis of organizational objectives.

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Discuss different types of strategic model
 Market-based view: The market-based view will be used by Orkid cosmetics to
identify and use organizational resources. It will assist the company in attaining an
attractive position in the food industry of Indonesia.
 Resource-Based View: The resource-based strategy will be used by Orkid cosmetics
to focus on the significant resources in attaining a competitive advantage in the
market of Indonesia. It will be quite helpful to Orkid in enhancing its corporate
performance.
 Organic or self-organizing Model (emergent strategy): The emergent strategy is all
about the set of activities or behavior reliable over time. This strategy will imply that
the company is learning through the practices conducted by it.
 Objective-based e.g balanced scorecard: The balanced scorecard will be used by
Orkid cosmetics to recognize and enhance several internal business functions with the
external outcomes. It evaluates and offers feedback to the company.
(BI-insider.com, 2012)
Selection of a strategic planning model and its process
SWOT analysis:
Strengths: Orkid cosmetics has attained a popularity for the Halal products along with the
reputation for offering innovative products. The company is having a well-established

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research and development team which concentrates on product advancement and innovation
(Aisyah, 2016).
Weaknesses: The skincare and cosmetic market are quite dynamic in nature and the product
changes within a short period of time. Orkid cosmetics have to change its color, fragrance
and other features in order to meet customer demand.
Opportunities: Orkid cosmetics is having decent promotion and distribution network. The
company has attained the opportunity to expand in the international markets.
Threats: Skincare and cosmetic products are deliberated as luxurious items. During the
financial crisis, people do not tend to purchase cosmetic products at higher prices.
Point 2:
Strategic planning principles
Process in the context of the selected company
Process
 Mission and vision: Orkid cosmetics is an international trendsetting Halal cosmetic
company for cool girls and cognizant women. The company offers reasonable high-
quality Halal products formed fresh from Kuala Lumpur, Malaysia. The company is
keeping its products 100% natural (Orkid Cosmetics, 2020).
 The vision is to be a global trendsetting Halal cosmetic brand for modern and
conscious women.
 Environment Analysis
Growing globalization and trade barricades has represented prospects and challenges
for Orkid cosmetics as it can enter into the political constant nations to identify the
innovative market. The company makes sure the cost of labor and production are
condensed in the host nation and believes in processing earlier due to the
globalization and variations in the technological factors.
 Strategy development
The strategy development decides the specific goals and objectives and also decides
the changes to be executed as a response to shifting market dynamics. The
impediment in the strategic development of Orkid cosmetics is lack of awareness. It
takes hard work to construct a solid organization and keen insight into the culture.
Orkid cosmetics has not attained popularity in nations like Indonesia. There is also the

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risk of changing market conditions in a VUCA (velocity, uncertainty, complexity, and
ambiguity) with the huge demand.
 Strategy implementation
Orkid cosmetics will clearly communicate and align its objective to set up in the
market of Indonesia and it will be driving through the mission and vision of the
organization. The CEO will be liable to share goals with the organization. The
employees will be provided with clear and aligned goals in order to track progress and
contribution towards the association (Pedada, Arunachalam and Dass, 2019).
 Strategy monitoring
The strategy monitoring will be used by Orkid cosmetics to evaluate progress
inconsistent intervals. It will consistently observe and record activities that will take
place in the whole process of setting operations in Indonesia comprising feedback of
the project.
Point 3:
Strategic approach in the context of international marketing planning
The benefit of strategic planning and execution
 Standardization
The strategic planning and execution in Orkid cosmetics will lead to standardization.
The standardization put a substantial influence on the performance of the company.
The standardization will influence the advancement of socially responsible sectors,
environment protection, and safeguard of the sector to cope up with the complexity of
the supply chain.
 Speed of execution
The strategic planning needs fast strategy therefore the speed of execution will be
focused by Orkid cosmetics. The speed has become more significant than the size.
Orkid cosmetics will concentrate on the three conditions for increasing the speed of
execution in Indonesia. The first is clarity, the company will keep a clear
comprehension of the situation. second is a unity which will be focused by the fast
leaders. The last condition is on which leaders concentrate when attaining strategic
speed is agility (Fajartriyani, Raharja, and Dai, 2020).
 Minimization of risk

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The strategic planning recognizes, quantifies and minimizes the risks to be faced
while conducting functions of the business. Orkid cosmetics can minimize the risks
concerning shifts in consumer demand, competitive pressure, legal and regulatory
change, merger incorporation, technological changes, and stakeholder pressure
(Novitasari, et al. 2019). The strategic planning is a priority for Orkid cosmetics as it
reduces risk especially in the period of economic uncertainty. It will equally assess the
current situation, weaknesses, strengths and business environment. This way, Orkid
will be able to better equip decisions and therefore lead to the minimization of risk
(Putri and Wandebori, 2016).
Point 4:
Critical evaluation of the strategic planning approach as compared to alternative planning
approaches
Alternative planning approach
The scenario-based planning as a part of an alternative planning approach enables
organizations to respond dynamically to the uncertainties. It supports by thinking in advance
concerning several ways to unfold the future and the way Orkid cosmetics can be robust,
responsive, and effective to make a future reality. Orkid cosmetics can make use of scenario-
based planning to direct the uncertainty of the future in both the short and long term. The
company will begin with the scenario planning process by scanning the current reality of the
Orkid in Malaysia and projected forecasts in Indonesia. The company can develop various
initiatives and policies to assist in an ideal scenario (Rubiyanti and Mohaidin, 2018).
The bottom-line planning can also be used as an alternative planning approach comprises
managers throughout the company and makes sure that people are comprised of executing
plans consulted. Specialized knowledge is required to attain a strong result. It will assist
Orkid cosmetics to access a wide range of perspectives and offer employers a greater
personal investment in the future advancement of the company. The bottom-up planning is
moreover a tactic and offers deep focus. The plans are advanced at the lowest levels and
passed on to higher levels. Afterward sent to the senior management for the sanction. The
lower-level employees are anticipated to take personal stock comprised of the bottom-up
planning. The employees are even more encouraged and morale advances (Nes, 2018).
Although the project managers are eventually liable for project accomplishment. The

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management can take any step and it will be the final step in the system of balances and
check.
On the other side, SWOT analysis used by the company already evaluates the strength,
weaknesses, opportunities, and threats. Orkid cosmetics can take decide the steps to be taken
while taking entry in Indonesia. Whereas scenario-based planning and bottom-line planning
are alternative planning approaches. The alternative planning approaches are more advanced
and are implemented as per the scene taking place and from bottom to top-level employees.
From the above discussion, it can be said that scenario planning will be more appropriate for
the skincare and cosmetics industry. Orkid cosmetics can transform its strategy according to
the changes taking place (Samiee and Chirapanda, 2019). It will offer a methodological base
foe executing process in the practice combining rapid application. It will automatically
enhance the speed of decision making.
Point 5:
Potential reasons for adopting a strategic planning approach and recommendations
The benefit of strategic planning approach and recommendations
 Proper management of resources
The strategic planning approach assists a company to be proactive than being reactive.
The approach will properly manage resources and enable Orkid to foresee the future
and prepare consequently. It even increases operational efficiency by offering a
roadmap to align the functional activities to attain fix goals. The strategic planning
approach even guides the management deliberations and decision making in
influencing resource and budget necessities to attain the usual objective (Morgan,
Feng and Whitler, 2018). Therefore, makes proper management of resources and
increases operational efficiency.
 Allocation of funds
The allocation of funds is a significant component in the survival, growth, and
profitability. The goal of the company is lead sales. Orkid will market on the Google
Ads, Social aids comprising Instagram Ads, Facebook Ads, and Promoted Pins. The
company will also allocate funds to influencer marketing, referral programs, and
email marketing (Fajartriyani, et al. 2019).
 Quality

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Orkid is recommended to focus on the quality of the products in order to attain
popularity. The company can follow process management for better-quality products.
The process management will comprise steps like customer requirements, customer
position, future forecast, gap analysis, closing gaps, alignment, and execution
(Sapouna, et al. 2018).

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Component Two
Introduction:
The customer insight and product knowledge are growing day by day which is enabling the
development of the retail chains and widening product offer to further advance the beauty and
skincare market. The larger cosmetic companies combinedly regulate half of the cosmetics
market. Women spend a lot of money on luxury cosmetic products. The entry barriers are not
too high in the cosmetic and beauty industry and the companies can effortlessly stab into the
market irrespective of the boundaries. The companies need to have appropriate resource
management to survive in the market for a extended period of time.
Point 1:
Relevant international marketing research planning models
Orkid Cosmetics will use the marketing mix as an international marketing research planning
model. The marketing mix of Orkid Cosmetics comprises:
Product: Orkid Cosmetics adopts strategies for the products such as quality distinction
strategy, size development of product range and variety renewal strategy. The company has
to endure its horizontal mixture range diversification strategy for the enduring satisfaction of
the consumer requirements. Orkid Cosmetics is Halal, vegan and cruelty-free cosmetics
brand. The company creates a company that is halal, ethical, safe and honest. Halal is
acceptable in Islam. The company strictly produces products in the utensils which are not
harmful to humans. It led to the quality differentiation strategy of Orkid Cosmetics. The
company follows an assortment renewal strategy to form new product lines within the
prevailing range (Javalgi and La Toya, 2018).
Price: Orkid cosmetics focuses on 3 aspects, price level, degree of price divergence and price
flexibility. Depending on each product category, the company can advance their
characteristics with the targeted customer category and adopt a strategy of moderate prices.
The price level of the company is justified by its product quality.
Place: The criteria behind the distribution strategy of Orkid cosmetics is the distribution
channel, distribution size, degree of organization’s distribution, elasticity degree, control
degree and logistics of goods. Orkid cosmetics sell products through direct distribution,
websites and a higher level of control (Skarmeas, Zeriti and Baltas, 2016).

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Promotion: The suggestions concerning the promotional policy of Orkid cosmetics are image
expansion strategy, undifferentiated strategy, and forming promotional activities through the
assistance of particular establishments. The image development strategy could be approved to
promote the image of the company as people are even now alert of the Orkid cosmetic’s
presence from the promotional activities approved already. The undifferentiated strategy
empowers the company to address the whole market, especially to all the potential customers
(Mathews, et al. 2016). The organizing promotional activities are quite beneficial to the
company due to the professionalism and high solutions.
Orkid Cosmetics is having competitors in the Malaysian market such as Simplysiti, Pretty
Suci, Obsess cosmetics, Nurraysa, Duck cosmetics, Sorfina Hal and more. When it comes to
foreign competition, Orkid cosmetics is having competition from Maybelline, Sephora,
Clinique, Loreal, and Lancom. The ownership structure of Orkid Cosmetics affects both the
short term and long-term performance. There are diverse types of investors who can have
fluctuating degrees of impact on the management team of the company (Gata, et al. 2019).
Point 2:
Key approaches and principles
Orkid cosmetics do not comprise when it comes to health, faith, and skin. The company
believes in offering high-quality products that do not burn a hole in the wallets of customers.
Orkid cosmetics test products on its own people instead of cute animals. The products also do
not contain any animals-by-products. The company personally goes through the batches and
batches of products in order to meet the international standards and approval of the products.
The products are made by Malaysian beauty chemists and manufacturers by making use of
the best ingredients for the skin. The approaches of Orkid cosmetics are embedded in the
genetic code (Syawaluddin, Joni and Erwin, 2019). The company brings a desire for what
cosmetics can bring to men and women such as self-confidence, wellbeing, and frankness
towards others. Innovation is also one of the approaches of Orkid cosmetics to create new
products for customers. It also helps the company to stay ahead. The company is also having
an entrepreneurial spirit to drive force behind the group. Orkid is also having an approach to
open-mindedness. The company listens to its customers and comprehend their culture. Orkid
responds to the infinite diversity of beauty (Jinachai, Anantachoti and Winit-Watjana, 2016).
Orkid cosmetics follow principles such as respect, integrity, courage, and transparency. The
ethical principles of the company also shape the culture, reinforces reputation, and should be

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known and identified by all the staffs of Orkid cosmetics. The company believes in acting
with integrity in order to maintain trust and good associations. Orkid practices respect to
impact on the lives of several people. The company represents the courage to address ethical
concerns (Sutanto and Aprianingsih, 2016). The company remains transparent by justifying
its actions and decisions.
Point 3:
A critical examination of the latent benefits of strategically planning market research in the
global market
The Indonesian market has been established with the emergence of large and small
established foreign organizations. Price, quality, and service are the major factors for
Indonesian buyers. In the concern of taxation, Singapore is a supreme place to incorporate an
organization. The execution of Halal regulations for the skincare and cosmetics industry has
been proved as a game-changer. Orkid cosmetics can attain Popularity in the Indonesian
market as 58% of women here prefer to usage halal cosmetics. The foreign companies can
also attain an entrée pass. Indonesia has been identified as the best place worldwide to initiate
a business. There are business-friendly policies and laws and the local government also
provides assistance to the companies setting business in Indonesia.
The regulation of Indonesia on the halal product assurance, derivative regulation of Law No.
34/2014 on Halal Product Assurance in 2017 has enhanced demand for halal cosmetics. This
law is in favor of Orkid cosmetics to sell products in the market of Indonesia. The skincare
products can fit in the Indonesian market due to the moderate value growth and dynamic
retail scene (Global Business Guide Indonesia, 2018).
Orkid cosmetics empower customers to make sustainable consumption choices along with
enhancing the beauty of the planet. The company believes in minimizing and optimizing
resources. It designs wrapping of ideal size and weight with just less resources comprising
large sizes and reusable formats. It shows another prospect to drive enhancement. The
company has even reduced its weight of the bottles by 20% in Malaysia. It has resulted in a
saving of 35 tonnes of PET plastic. Orkid promotes eco-design, resource efficacy, and local
waste management. It also pursues to join spherical economy networks where it functions and
creates industrial synergies (Wilson, Theodorus and Tan, 2018).
Point 4:
Latent benefits in comparison to alternative planning approaches

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Indonesia is growing at a fast speed due to increasing personal incomes. In such a scenario,
cosmetics is for sure one to observe. The sales of the skincare brands have increased in the
past years and have untapped prospects as the population is growing in Indonesia. There is a
quicker market dominance of the skincare companies in Indonesia. The customers here spend
on skincare in spite of accelerating inflation. The execution of Halal rules in Indonesia has
led to a game changer and now started to govern cosmetic skincare products in the nation. On
the other side, scenario-based planning as an alternative planning approach empowers
organizations to respond dynamically to the uncertainties. This approach does not lead to
quicker market dominance but directs the uncertainty of the future in both the short and long
term (Hult, et al. 2018).
The skincare brands in Indonesia has logged double-digit growth in current years and has led
to brand acceptance in Indonesia. The customers also tend to be loyal to specific brands. The
demand is also comparatively stable. The Indonesian cosmetic industry has substantial
experience in product testing and quality products which furnish the local needs (Yang and
Gabrielsson, 2018). It leads to brand acceptance. The companies in Indonesia are also
required to demeanor laboratory tests on the raw materials cast-off in order to attain the
approval of the final products. On the other hand, bottom line planning is about comprising
people in the execution plans which ultimately leads to brand acceptance. It will assist Orkid
to access a wide range of perspectives and offer employers a greater personal investment in
the future advancement of the company (Katsikeas, 2018). The employees will have a greater
role in the formation of the brand in Indonesia which will ultimately result in brand
acceptance.
Point 5:
Recommendations
Orkid Cosmetics is suggested to make use of Franchising as entry mode in Indonesia.
Franchising will assist Orkid in carrying a low degree of risk and resource commitment while
entering in the market of Indonesia. Orkid will also provide a normal license process with the
assistance of product specifications. The selling company in Indonesia will be identified as
franchisor and Orkid will be called franchisee. The franchisor will be required to pay a lump
sum amount in the return of services. Orkid cosmetics can expand itself in the Indonesian
market based on the franchising model.

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