International Marketing Management

International Marketing is about…

Agenda

Lucrative Products

Illustration of the 6 Lucrative Products and the Benchmarks

6 Lucrative Products in Indonesia

Lucrative?

The company/The product?

International marketing strategies?

Conclusion

Benchmark?

What are “Lucrative Products”?

LucrativeProducts

Competitive Advantage of Indonesia

Core Competence

Marketing Mix

GovernmentSupport

Competitive Advantage of Indonesia

Firm Strategy, Structure, and Rivalry

Demand Conditions

Related and Supporting Industries

Factor Conditions

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

5 10 15 20 25

Percent of responses

The Most Problematic Factorsfor Doing Business in Indonesia

Source: World Economic Forum

Competitive Advantage of Indonesia

Firm Strategy, Structure, and Rivalry

Demand Conditions

Related and Supporting Industries

Factor Conditions

Forestry: CPO

Source: http://www.biofuels.apec.org/me_indonesia.html

PTPN 4 & Ganesha Energi

Wilmar Group Pertamina

Sinarmas

Bakrie, Indofood, Asianagro, Sumiasih

Eterindo

Sweeden Bioenergy

Dharmex

BPPT, Lemigas, RAP, EAI

Competitive Advantage of Indonesia

Firm Strategy, Structure, and Rivalry

Demand Conditions

Related and Supporting Industries

Factor Conditions

What is the Illustration of the 6 Lucrative

Products?

Threat

Core Competence

Impact

Brand

Investment

Marketing Mix

6 Most Lucrative Products in Indonesia

What is the Illustration of the Benchmarks?

Superior Value Creation

Brand Leadership

Market ResearchExpansion

Int Marketing Mix

Global Threat

6 Benchmark Companies

Buccheri and Bally

What is Buccheri?

Focuses on Mid Level Target

Market

Maximizes Volume Selling

Prioritizes on Discount Pricing

Strategies

Why Buccheri is Lucrative?

1. Resources Availability (2010)

Source: http://bataviase.co.id/bahan-baku-dalam-usaha-pengolahan-kulit.bagian-6/

Cow Skin (48,987)

5000 10000 15000 20000 25000 30000 35000 40000 45000 50000

Bufallo Skin (5869.9)

Goat Skin (9540.1)

Wool (9539.7)

2. Future Development Opportunity

3. The Amount of Transaction

4. Market Share for Formal Women Shoes

17%

17%

15%

6%

5%

4%

4%

2%

2%2%2%

BataBuccheriYongki KomaladiFladeoNevadaSophie MartinElizabethSt YvesEdward ForrerDonatelloMarie Claire

Source: http://topbrands-award.com/marketshare.index2010

Market Share for Formal Men Shoes

22%

11%

9%

6%

6%

5%

BuccheriBataPakaloloCarvilKickersYongki Komaladi

Source: http://topbrands-award.com/marketshare.index2010

What is Buccheri’s Benchmark?

What Buccheri Can Learnfrom Bally?

1. Consistency in Delivering Brand

2. Continuous Innovation

3. Travel Retail Industry: International Global Brand Ambassador

4. Customer Experience Management

Marketing Strategies of Buccheri

International Marketing Strategies

of BallyFocus on Mid level target

marketConsistency in Delivering

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

Astec, Athlete, AttitudeIs what it takes to compare

Victory is the motivationthat ignites the athlete

A+V = Harmonious synergy

that propels perpetual champion’s energy

The Brand

Sells Cheaper Price

Uses the Name of 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

YonexNanoSpeed 9900AeroStorm Pro

What is Astec’s Benchmark?

What Astec can Learnfrom 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 of Astec

International Marketing Strategies

of YonexSells cheaper price Product = Winning

Uses the name of the founder Endorser = Champion

Has partnership with badminton clubs

Sponsorship

Eiger and Mountain Hard Wear

What is Eiger?

http://www.diversions.tierranet.com/eiger.jpg

Meaning of The Brand

Eiger = Mountain in Swiss

Sells Products and Services

Provides Training 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 Learnfrom Mountain Hard

Wear?

1. Environmentally Care

2. Unique Company Culture

3. Innovation

Marketing Strategies of Eiger

International Marketing Strategies

of Mountain Hard Wear

Sells products and services Environmentally care

Provides education and training

Unique company culture

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 Learnfrom 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

Source: http://www.anrpc.org/html/monthly_statistics.aspx

* The number of production is in ‘000 tons

Supply of Rubber during the First Half of 2010

ThailandIndonesiaMalaysiaIndiaChinaVietnamSri LankaPhilippinesCambodia

1,737(33.68%

)

1,379(26.74%

)

624(12.10%

)

498(9.66%)

372(7.21%)

371(7.19%)

100 200 300 400 500 600 700 800 900 1000

World’s Labor Force Value

Indonesia (113.3)

USA (154.5)

European Union (224.8)

India (467)

China (812.7)

* 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 Learnfrom 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 Learnfrom Ligne Roset?

1. Collaboration with Designer

2. Customization

3. Environment-Concerned

Competence-based Strategic Matrix

Speeding-up

Catching-up Following-up

Anchoring

Core

Com

pete

nce

Low

H

igh

How Close You are from Your Competitor

Not Close Very Close

Competence-based Strategic Matrix

How Close You are from Your Competitor

Core

Com

pete

nce

International Marketing Management Paradigm

Input OutputTransformation

Marketing Research

• Brand Leadership

Int. Marketing Strategy

• International Marketing Mix

Investments

USA

EU ASIA

Portfolio(Share Price)

Programs

(ROI)Projects

(IRR)Products

Service Products

Service

International Marketing Balanced Scorecard