The paper will provide the facts based on the factors mentioned about Carman’s kitchen, i.e………., its segmentation, targeting as well and positioning. About, the paper is prepared to provide a deep insight of the in-depth understanding of the Indonesian market. Therefore the report selected every aspect related to the Indonesian market which is supposed to describe the competitive environment during the expansion of the international business of Carman’s Kitchen. In that case, it can be said that the segmentation, targeting, and positioning of Carman’s Kitchen will provide the layout for the in-depth market analysis of the Indonesian market.
The company Carman’s Kitchen has been very well-known by customers for various kinds of food products for over two decades. In that context, it can be seen that the strategic conditions acquired by the company in its expansion are responsible for its success. The major attraction of the company is its food products along with the creation of new innovative recipes. In that way, the company continues to enhance its export wings to 32 countries. In this expansion, the brand of the company that is leading the market is its muesli brand (Carman’s Muesli, 2017). Thus the company operates its business by being customer-oriented and based upon that the company is always quite flexible in providing effective services within a short period as per the needs of the customers. The company is headquartered in Melbourne and as per this case; the company is planning for its expansion in the Indonesian market. For that reason, the previous assignment provided a study regarding segmentation, positioning, and targeting. This paper contains the assignment that will provide deep insight into the market strategy concerning the company to enter the Indonesian market. More specifically the owner of the company has mentioned herself as quite confident as well as optimistic (Carman’s Muesli, 2017). In addition, the company has strived a lot to establish its brand name in the foreign market. Concerning that, it is seen that the company has been continuously working on the development of strategies that will it in its international market expansion.
The above-mentioned part provided the basic knowledge regarding the overview of Carman’s Kitchen. Thus based on the knowledge gained from the proposed segmentation, targeting, and position of the company in the Indonesian market, this portion will help in describing the market analysis of Indonesia (A. Griffith, et al., 2014). The research, as well as the market analysis through the macro-environmental process, will describe the description by which Carman’s Kitchen will be able to make an effective decision regarding the expansion in Indonesia (Akgün, Keskin & Ayar, 2014).
In that context, the country that Carman’s Kitchen has selected for its expansion is a Muslim country. This country is seen to be located between the countries, Malaysia and Singapore. The place of this country comprises many islands which can be counted up to thirteen thousand islands. All these islands are the place in between the Indian Ocean and the Pacific Ocean. In that case, it is considered that most of the population of the country is Muslim, and the language they consider their mother tongue is Indonesian (Amine, 2015). Thus the proper market analysis is the part which is gained from the PESTEL analysis of the Indonesian market.
Political: As per Andriopoulos & Slater, a country like Indonesia is considered to be the type of democratic. In that context, the government of this country is found to have the president as well as the vice president who has been elected to the parliament. Thus the country is said to be the republic under the consideration of the Roman-Dutch law. The country is no doubt having many struggles to establish its financial stability (Andriopoulos & Slater, 2013). For that reason, the country went through various reforms with continuous efforts to take it above the poverty line. In that context, it is measured that the country has 22% population living under the poverty line. Thus if Carman’s Kitchen is planning to have its expansion in Indonesia then it will be the reason for increased employment within the Indonesian population.
Economical: While noticing the country’s economic balance it can be said that Indonesia is a developing country. In that context, the country has undertaken many serious steps to enhance the GDP of the country. The country also includes reserves of crude oil which become the source of income Due to the presence of the reserves of crude oil and natural gas the country comes in 8th position which carries out the export of gas across the globe (Baack, Harris & Baack, 2013). Thus it can be said that the country goes with a significant development that takes the increase in GDP up to 6.1%. As per Brady, the country gained its GDP growth of almost 14.4% from agriculture, 37.5% from the service sector, and 48.1% from the industrial sector. In addition to that, the country pays its attention to the enhancement of FDI with a value of $67.3 billion (Brady, 2014). This value more specifically shows the clear graph of the increase in the size and strength of the economic sector. Moreover, the expansion of Carman’s Kitchen can be quite helpful for its success. It also imports foodstuffs from various countries. Due to the strength of its economic sector, the country will very warm-heartedly welcome the expansion of the company.
Social: The social part is the mixture of all the lifestyles and along with that the population of the country possesses a good average lifestyle. The most important part is most of the population of the country is quite eager to take part in the developmental activities of the country (Brady, 2014). For that reason, the government has taken many effective measures that will help enhance literacy and education. In that case, the country owns its literacy rate of 90.4% and eventually spends the GDP of 3.6% for the enhancement of education. After education, while the religion is considered the country is a Muslim country still it provides awareness regarding all the religions and eventually, it works for the survival of every religion within the country (Chang, Bai & Li, 2015). Thus it can be said that the majority of the population in Indonesia are Muslims, after that comes the Protestants, then the Roma Catholics, and then the Hindus. Thus after expansion, the company will carry out customer dealing by considering based upon the preferences of the population
Technological: According to Christodoulides, Cadogan & Veloutsou, the country contains a well-developed transport system which has been owned by its government including all kinds of transportation services. These include the airways, waterways, railways, and roadways. In addition, the company also contains a developed communication system which will help in mapping the customer services. Along with that, the government contains strong communication as well as a lower amount of crime rate which is an indication of the strong interior policies of the government (Christodoulides, Cadogan & Veloutsou, 2015). Thus, the expansion of Carman’s Kitchen in Indonesia will help the company to take up with new technological advancements to attract customers.
Environmental: About the geographical location the country comprises many islands which are located within the Pacific Ocean as well as the Indian Ocean. For that reason, though the place provides a scenic beauty to the customers still there is the presence of the hot and humid environment within the country. Along with that, the season continues to become mild and moist the whole year (Darley, Luethge & Blankson, 2013). The country also contains many places of rainforests and mangrove swamps along with the capped mountains. The dangerous part of its environment is it contains many active volcanoes that can create havoc. Urbanization is taking the country towards deforestation, soil erosion, and volcano devastation. Though the place is somehow quite known for natural disasters still it provides many attractive scenic beauties that attract customers.
Legal: With the advancements in all sectors the country also has many kinds of transformations in its legal sectors. The country has brought many changes in labor laws, and environmental laws which will create a fruitful impact on the business environment (De Clercq & Zhou, 2014). The banks in Indonesia have worked to establish the prime lending interest of 6.41% along with the discount rate of the Central Bank of 10.83%. The Municipals also provided with the reforms through the incorporation of the noise reduction plans. Thus with all these processes, the implementation of a strong legal environment will enable the establishment of Carman’s Kitchen quite successfully.
According to Di Maria & Ganau, the market research regarding the Indonesian market indicates that the country is a sovereign state that is located in Southeast Asia and Oceania. The country is also a developing country with a population of about 251 million (Di Maria & Ganau, 2014). Thus the competitive analysis regarding the market is very well described from the description of the market potential index as well as the country information through its cultural diversity. Both the parameters will describe the market condition very accurately by which Carman’s Kitchen will get the proper way of its expansion in the Indonesian market.
This parameter will provide deep insight into global marketing as well as internationalization. Based upon this the company will be able to establish efficient as well as effective strategies which will help in the increase in international business. As per Eberharda & Graig, the country is therefore considered as one of the developing countries as per the data provided by the economists (Eberharda & Graig, 2013). The International Business Centre is the entity that provides the data to make the comparison of the prospect markets. Specifically, the data provided by the economists and the International Business Centre provide the fact that Indonesia is a developing country with a market size of 10 out of 100 which is measured by its electricity consumption and the urban population. Similarly, the market intensity and the market growth rate are calculated for 28 and 68 out of 100 respectively. The market intensity is studied from the private consumption as a part of GDP and the GNI per capita estimates using PPP and the market growth rate is estimated by the compound annual growth rate of primary energy and GDP. Again the market consumption capacity also comes out to be 77 out of 100 due to the consumer expenditure and household annual disposable income (Feinberg, 2015). The commercial infrastructure and the market receptivity come out to be 32 out of 100. Likewise, Economic Freedom and Country Risk come out to be 54 and 39 respectively out of 100. Out of all these calculation of the commercial infrastructure is carried out by considering various measures. Thus the dimensions that are used as the measures are the contributors to the determination of the market potential index. In addition to that, the Indonesian market comes over a rank of 41 out of all the 138 countries across the globe as per the reports published in the year 2016-2017 in the World Economic Forum. It is judged by considering the business confidence, changes in the inventories, industrial production, manufacturing PMI, capacity utilization, competitive index as well as rank and the corruption index as well as the rank.
It is another context that will show the cultural diversity of Indonesia which further will reflect a good overview of the expansion of the business of Carman’s Kitchen. It can be further revealed through the description of power distance, individualism, masculinity, uncertainty avoidance, long-term orientation, and indulgence
Power Distance: Though the societies are not equal the parameter comes out to be the attitude of culture towards the concept of inequalities. Thus the score in this context comes out to be 78 which indicates the dependency within the hierarchy, unequal rights, and all other management parameters. So the power is said to be centralized in that context and there will be a good relationship between the employees and management (Garry & Hall, 2015).
Individualism: This parameter scores out to be 14 and on the whole, the Indonesian society comes out to be a collectivist society and requires a strongly defined framework. In that case, the population does not go for individualism.
Masculinity: This parameter for Indonesian society comes out to low masculine and more feminine with a score of 46. Thus the status of the Indonesian market goes with the visible symbols of success with an inclusion of motivational factors. This will be quite helpful for the expansion of the company in the Indonesian market.
Uncertainty Avoidance: While going for the Indonesian market this value comes out to be 48 which indicates a low amount of preference for avoiding the uncertainty. It will also indicate a strong preference for the diversification of the culture which will help in maintaining harmony and peace in the workplace.
Long-Term Orientation: This part comes out to a score of 62 which indicates the presence of a strong pragmatic culture within the Indonesian market. In that context, there is the indication that the people used to believe to be dependent on the time, context, and situation to achieve desired results (Godley, 2015).
Indulgence: This particular parameter shows the result in the score 38which indicates the Indonesian culture is restrained in nature. This means the people in this society have more tendencies towards cynicism and pessimism. It will further make people make them indulged in the wrong work (Griffith & Zhao, 2015).
The description of the market as well as the competitive analysis provides an idea of how the plan can be carried out by Carman’s Kitchen to make its expansion in the Indonesian market. This expansion is, therefore, a process that goes in a continuous mode that starts with the mode of entry, possible partnerships, value chain, and STPD as well as the marketing mix. The step-by-step collaboration of all these processes will reflect the proper development of the international business.
Mode of Entry: This is carried out by the process of market selection with the proper analysis of the potential customers and the competitors. Thus the market selection can be carried out by understanding the extent of the economic transition within the country. For that reason to expand business in the Indonesian market, the entry mode can be done through the FDIs, franchising, licensing, contract manufacturing as well and management contracts. Another most effective process is the export and the joint ventures (Jean, et al., 2016).
Possible Partnership: By discovering the buying behavior as well as the market scenario the company should formulate a marketing mix. Thus after entering the Indonesian market, Carman’s Kitchen should formulate a strategy to create partnerships with various other food industries located in the Indonesian market. Polonsky, Merrilees & Miller said that by this, the company will get an idea regarding the demands as well as the needs of the company (Polonsky, Merrilees & Miller, 2014). Thereafter they will launch such food items that should be liked by the customers. In addition, the partnership should also be done with the media companies. Through this partnership, the company will get the proper mode of promotion to reach every corner of the country. Effective promotion is responsible for the success of the company.
Value Chain: Next to that the company should take care of the activities which will enhance the value chain processes. This will eventually lead to the success of the business in the international market.
STP: Thereafter the company should take care of the STP, i.e……………………………., segmentation, targeting, and positioning. This will eventually engross all the possible processes that will attract customers without hindering the growth of the business. Segmentation is carried out by studying the market dynamics which will include modern lifestyles. This will enable the success of the products in the international market to appeal to all generations. Similarly, the targeting process includes that the company should target the young population in Indonesia (Trefzger, Baccarella & Voigt, 2015). The reason behind that is they are the future who will provide the layout for setting the trend. Thus targeting the young population will bring the success of the organization in the Indonesian market. The last one is the positioning which indicates the company to enable a huge amount of distribution channels considering the consumer dynamics. This will bring success to the business by attracting customers.
Marketing Mix: The marketing mix of the organization is the part that encloses the product, price, promotion, place, and position. Considering these parameters the company should formulate a strategy that will help the company to get it prepared to deal with the competition to all other competitors that are close to the customers and enhance the importance of the organization in the international market. Next to that branding of the employer is another portion that can be carried out to establish their products successfully in the market (Carman’s Muesli, 2017).
This paper provides a deep insight into the process by which Carman’s Kitchen will have their expansion in the international market. About, the paper will help the organization to prepare itself to face various challenges that it has to face in the Indonesian market. This will further help the organization to make the expansion without any societal hindrance.
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