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• Background of Indonesia
• Diet and Nutrition
• SWOT Analysis
• Target Market
• Marketing Plan
• Final Recommendations
• Indonesia’s GDP is facing a period of exponential
  growth
• The annual growth rate for GDP was 6.1% in 2010
                    $1,000

                     $800
 GDP in $Billions




                                           $823   2009 GDP
                     $600
                                    $707
                      $400                        2010 GDP
                             $539
                      $200                        2011 GDP
                                                  (Estimated)
                        $0

                              GDP 2009-2011
• Bahasa is Indonesia’s primary
  national language

• Bahasa is the language most
  used in
  communication, business, media,
   government, and education

• Local languages, most commonly
  Javanese, are very important in
  many areas

• English is the most widely
  spoken foreign language in
  Indonesia
• Indonesia has an electrical requirement of 110/220V
  which is the same electrical requirement as the United
  States
• Electrical outlets in Indonesia are different from the
  United States
• To use an appliance such as a waffle iron in Indonesia
  you will need an international voltage converter
• Value added tax (VAT) is issued on a majority of goods including
  imports at a rate of 10%

• Tariff rates on imported food items are no higher than 5%

• Required registration of the items can take up to six months

• An income tax of 2.5% is issued on CIF value imports

• Documentation requirements include:
         o   Import declaration   o Performance invoice
         o   Commercial invoice   o Certificate of origin
         o   Bill of Lading       o Insurance certificate
         o   Packing list
• Typical breakfasts include:
  fried
  rice, eggs, fruit, porridges of
  vegetables, fried
  bananas, and chicken soup
                                      Typical Breakfast: Nasi Goreng “fried rice”
• Meals in Indonesia revolve          the Indonesian national dish

  around rice as a staple
  ingredient

• The typical diet in Indonesia
  consists of:
  rice, fish, meat, eggs, dairy, fr   Typical Meal: rice with vegetables
  uit, and vegetables with spices
Strengths                                Weaknesses
• Brand name                             • Non-diverse product
• Strong presence in U.S.                  offerings
  market                      INTERNAL
• Financial stability
• Product is simple to
  prepare



       Opportunity                                  Threats
• Tourism                                •   Culture and religion
• Penetration of Indonesian              •   Climate
  market                      EXTERNAL   •   Geography
• First-mover advantage                  •   Shipping issues and risk
                                         •   Tango Waffles
Bali and Jakarta Four and Five star Hotels

• International Tourism

• Major driver of demand for food imports

• 60% of imported food – Hotels and High-end western
  restaurants

• Hotels use twice that of restaurants

• Top hotels import 15%
Bali: Primary Target Market   Jakarta: Secondary Target Market

• 25-30% tourists arrive in     • 27,685 star hotel rooms
  Bali                          • 22,376 customers per day
• Equal amount visit during     • 30% foreign
  their stay
• Nearly 30% of 4 and 5 star
  hotels
• 78% of customers are
  foreign tourists
Grand Hyatt and Hyatt     Hilton and Conrad         Starwood Hotels
      Regency                   Hotels
                                                • Sheraton, Westin, St.
• Bali and Jakarta      • Bali and Jakarta        Regis, W Hotels
  Locations               Locations             • Bali and Jakarta
• 400 – 500 rooms per   • 350 rooms per hotel     locations
  hotel                                         • 250-350 rooms per
                                                  hotel
Ritz Carlton Jakarta     JW Marriott Hotels      Crowne Plaza
                                                   Jakarta
• Jakarta and Bali     • Jakarta and Bali
  Locations              locations             • 350 + Rooms per
• 367 Rooms            • 300 rooms per Hotel     hotel
Supply Chain in Indonesia
    “Archaic triangle of restrictive arrangements”

• Many middlemen between producer and consumer

• Strong relationship with a reliable distributor is
  crucial
                      Strategy
     Carbon’s            Freight
      Golden                             Distributor
      Malted           Forwarder
• Established in 1904
• Worlds largest ocean
  carrier firm




“Best Global Shipping Line” 18th
consecutive year

“Best Green Service Provider –
Shipping Line”
•   Indonesia’s largest and premier food product distributor
•   17 distribution points in Indonesia
•   Largest refrigerated truck fleet
•   Clients: Hunts, Laughing Cow, Yoplait, Pillsbury, Ocean Spray and
    many more…
PT Sukanda Djaya                     Phone:   + 62 21 640 5678
Jl. Pasir Putih Raya kav. 1          Fax:     +62 21 640 2861
Ancol Timur
Jakarta 14430                        Web:     www.sukandadjaya.com
Indonesia
PT Continental Duta International   Phone:   +62 21 6660 1425
Grand Pluit Mall Block B-6          Fax:     +62 21 6660 1426
Jl. Pluit Raya Selatan No. 1        Email    cdi@continental.co.id
Jakarta Utara 14440 – Indonesia     Web:     www.continental.co.id




PT Wire Logitama Saksama            Phone:    + 62 21 690 9244
Jl. Ancol Barat VII Blok            Fax:      + 62 21 690 9436
A 5D No. 2                          Web:     http://wiralogistics.com/index.shtml
Jakarta 14430,
Indonesia
"In 2 Minutes or Less, Simply the Best"
• Carbon’s Golden Malted products are set apart
  by the company’s dedication to quality and
  performance with value pricing

• The product is unique in that the waffle irons to
  prepare the mixes are loaned to the customers in
  exchange for the monthly minimum purchase of
  two cases per waffle iron

• Most importantly, this is a new product in
  Indonesia. It will be differentiated by its
  originality in the market
The labels of our product will need to be changed to
meet the following requirements in Indonesia. All food
packaged for sale must be labeled using:
   • The Indonesian Language (Bahasa)
   • Roman text
   • Arabic Numerals

The minimum requirements for the information on the
packaging label include:
   •   The name of the product
   •   Net weight or volume using metric units
   •   Name and address of the manufacturer or importer
   •   Registration number
   •   List of ingredients
   •   Date of expiration
   •   Production date or code
• Takes place in Bali, and is the
  important tradeshow for us
  to showcase our product

• An international exhibition
  for
  equipment, food, beverages,
  and services to support
  Indonesia’s tourism and
  hospitability industries

• Reaches our primary target
  market directly
      Bali International Convention Center   Phone:   +62 361 771906
 Kawasan BTDC                                Fax:     +62 361 772047
 Nusa Dua                                    Web:     http://www.baliconvention.com/
 Bali, 80363                                 Email:   bicc@baliconvention.com/
 Indonesia                                   Date:    March 01 – 03, 2012
• This trade show will offer
  maximum exposure and
  create brand awareness for
  our product in Indonesia

• Had record attendance of
  17,811 trade visitors in 2010

• This trade show involves
  international food processing
  and packaging machinery, as
  well as a materials exhibition

            Jakarta International Expo   Phone:   +62 (21) 266 45 000/131
 Gedung Pusat Niaga Lt.                  Fax:     +62 (21) 657 000 10
 1 Arena PRJ Kemoyoran                   Web:     http://www.jiexpo.co.id/
 Jakarta, 10620                          Email:   marketing@jiexpo.co.id/
 Indonesia                               Date:    TBA (December 2012)
Cases                                                        Cases
     • 6,357 cases monthly                                       • 2,038 cases monthly
     • 76,285 cases annually                                     • 32,850 cases annually

                  Dollars                                                     Dollars
     • $254,283 in sales per                                     • $190,500 in sales per
       month                                                       month
     • $3,051,400 in sales                                       • $1,314,000 in sales
       annually                                                    annually

(Figures based off 222 waffles per case X $40USD per case assuming each potential consumer eats 3 waffles per day)
“Should Carbon’s Golden Malted enter Indonesia?”
                     YES!
   • Based on the economic environments and tourism
     industry, we recommend that you enter
     Indonesia, taking interest specifically in the hotel and
     tourism industries located in Bali and Jakarta

   • We recommend you penetrate this market and exercise
     the opportunity to have the first-mover advantage in
     this market
• While the retail segment of Indonesia could possibly be
  profitable in the future, the costs of assimilating the
  culture to a new breakfast food would be expensive

• Penetrating the market first through hotels in the
  tourist industry is more plausible and would allow the
  product to gain market acceptance and distributor
  confidence and loyalty before branching to potential
  retail markets in Indonesia

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Carbon Golden Malted Presentation

  • 1.
  • 2. • Background of Indonesia • Diet and Nutrition • SWOT Analysis • Target Market • Marketing Plan • Final Recommendations
  • 3.
  • 4. • Indonesia’s GDP is facing a period of exponential growth • The annual growth rate for GDP was 6.1% in 2010 $1,000 $800 GDP in $Billions $823 2009 GDP $600 $707 $400 2010 GDP $539 $200 2011 GDP (Estimated) $0 GDP 2009-2011
  • 5. • Bahasa is Indonesia’s primary national language • Bahasa is the language most used in communication, business, media, government, and education • Local languages, most commonly Javanese, are very important in many areas • English is the most widely spoken foreign language in Indonesia
  • 6. • Indonesia has an electrical requirement of 110/220V which is the same electrical requirement as the United States • Electrical outlets in Indonesia are different from the United States • To use an appliance such as a waffle iron in Indonesia you will need an international voltage converter
  • 7. • Value added tax (VAT) is issued on a majority of goods including imports at a rate of 10% • Tariff rates on imported food items are no higher than 5% • Required registration of the items can take up to six months • An income tax of 2.5% is issued on CIF value imports • Documentation requirements include: o Import declaration o Performance invoice o Commercial invoice o Certificate of origin o Bill of Lading o Insurance certificate o Packing list
  • 8. • Typical breakfasts include: fried rice, eggs, fruit, porridges of vegetables, fried bananas, and chicken soup Typical Breakfast: Nasi Goreng “fried rice” • Meals in Indonesia revolve the Indonesian national dish around rice as a staple ingredient • The typical diet in Indonesia consists of: rice, fish, meat, eggs, dairy, fr Typical Meal: rice with vegetables uit, and vegetables with spices
  • 9. Strengths Weaknesses • Brand name • Non-diverse product • Strong presence in U.S. offerings market INTERNAL • Financial stability • Product is simple to prepare Opportunity Threats • Tourism • Culture and religion • Penetration of Indonesian • Climate market EXTERNAL • Geography • First-mover advantage • Shipping issues and risk • Tango Waffles
  • 10. Bali and Jakarta Four and Five star Hotels • International Tourism • Major driver of demand for food imports • 60% of imported food – Hotels and High-end western restaurants • Hotels use twice that of restaurants • Top hotels import 15%
  • 11. Bali: Primary Target Market Jakarta: Secondary Target Market • 25-30% tourists arrive in • 27,685 star hotel rooms Bali • 22,376 customers per day • Equal amount visit during • 30% foreign their stay • Nearly 30% of 4 and 5 star hotels • 78% of customers are foreign tourists
  • 12. Grand Hyatt and Hyatt Hilton and Conrad Starwood Hotels Regency Hotels • Sheraton, Westin, St. • Bali and Jakarta • Bali and Jakarta Regis, W Hotels Locations Locations • Bali and Jakarta • 400 – 500 rooms per • 350 rooms per hotel locations hotel • 250-350 rooms per hotel
  • 13. Ritz Carlton Jakarta JW Marriott Hotels Crowne Plaza Jakarta • Jakarta and Bali • Jakarta and Bali Locations locations • 350 + Rooms per • 367 Rooms • 300 rooms per Hotel hotel
  • 14. Supply Chain in Indonesia “Archaic triangle of restrictive arrangements” • Many middlemen between producer and consumer • Strong relationship with a reliable distributor is crucial Strategy Carbon’s Freight Golden Distributor Malted Forwarder
  • 15. • Established in 1904 • Worlds largest ocean carrier firm “Best Global Shipping Line” 18th consecutive year “Best Green Service Provider – Shipping Line”
  • 16.
  • 17.
  • 18. Indonesia’s largest and premier food product distributor • 17 distribution points in Indonesia • Largest refrigerated truck fleet • Clients: Hunts, Laughing Cow, Yoplait, Pillsbury, Ocean Spray and many more… PT Sukanda Djaya Phone: + 62 21 640 5678 Jl. Pasir Putih Raya kav. 1 Fax: +62 21 640 2861 Ancol Timur Jakarta 14430 Web: www.sukandadjaya.com Indonesia
  • 19. PT Continental Duta International Phone: +62 21 6660 1425 Grand Pluit Mall Block B-6 Fax: +62 21 6660 1426 Jl. Pluit Raya Selatan No. 1 Email cdi@continental.co.id Jakarta Utara 14440 – Indonesia Web: www.continental.co.id PT Wire Logitama Saksama Phone: + 62 21 690 9244 Jl. Ancol Barat VII Blok Fax: + 62 21 690 9436 A 5D No. 2 Web: http://wiralogistics.com/index.shtml Jakarta 14430, Indonesia
  • 20. "In 2 Minutes or Less, Simply the Best" • Carbon’s Golden Malted products are set apart by the company’s dedication to quality and performance with value pricing • The product is unique in that the waffle irons to prepare the mixes are loaned to the customers in exchange for the monthly minimum purchase of two cases per waffle iron • Most importantly, this is a new product in Indonesia. It will be differentiated by its originality in the market
  • 21. The labels of our product will need to be changed to meet the following requirements in Indonesia. All food packaged for sale must be labeled using: • The Indonesian Language (Bahasa) • Roman text • Arabic Numerals The minimum requirements for the information on the packaging label include: • The name of the product • Net weight or volume using metric units • Name and address of the manufacturer or importer • Registration number • List of ingredients • Date of expiration • Production date or code
  • 22. • Takes place in Bali, and is the important tradeshow for us to showcase our product • An international exhibition for equipment, food, beverages, and services to support Indonesia’s tourism and hospitability industries • Reaches our primary target market directly Bali International Convention Center Phone: +62 361 771906 Kawasan BTDC Fax: +62 361 772047 Nusa Dua Web: http://www.baliconvention.com/ Bali, 80363 Email: bicc@baliconvention.com/ Indonesia Date: March 01 – 03, 2012
  • 23. • This trade show will offer maximum exposure and create brand awareness for our product in Indonesia • Had record attendance of 17,811 trade visitors in 2010 • This trade show involves international food processing and packaging machinery, as well as a materials exhibition Jakarta International Expo Phone: +62 (21) 266 45 000/131 Gedung Pusat Niaga Lt. Fax: +62 (21) 657 000 10 1 Arena PRJ Kemoyoran Web: http://www.jiexpo.co.id/ Jakarta, 10620 Email: marketing@jiexpo.co.id/ Indonesia Date: TBA (December 2012)
  • 24. Cases Cases • 6,357 cases monthly • 2,038 cases monthly • 76,285 cases annually • 32,850 cases annually Dollars Dollars • $254,283 in sales per • $190,500 in sales per month month • $3,051,400 in sales • $1,314,000 in sales annually annually (Figures based off 222 waffles per case X $40USD per case assuming each potential consumer eats 3 waffles per day)
  • 25. “Should Carbon’s Golden Malted enter Indonesia?” YES! • Based on the economic environments and tourism industry, we recommend that you enter Indonesia, taking interest specifically in the hotel and tourism industries located in Bali and Jakarta • We recommend you penetrate this market and exercise the opportunity to have the first-mover advantage in this market
  • 26. • While the retail segment of Indonesia could possibly be profitable in the future, the costs of assimilating the culture to a new breakfast food would be expensive • Penetrating the market first through hotels in the tourist industry is more plausible and would allow the product to gain market acceptance and distributor confidence and loyalty before branching to potential retail markets in Indonesia

Editor's Notes

  1. IntroductionsCaitlynWe are here to present to you the possibility of Carbon’s Golden Malted entering the Indonesian market
  2. CaitlynThecontents include: (read/know list)
  3. CaitlynIndonesia is located with close proximity to the equator and maintains a constant tropical climateIndonesia consists of approximately 17,000 islands, but only about 6,000 of them are inhabitedIf you notice the areas circled in red, Jakarta - the capital of Indonesia - on left and Bali on right: These areas have the most economic activity as well as the highest populations
  4. CaitlynIndonesia'sGDP in 2009 was $539 billionIndonesia’s GDP in 2010 was $707 billionIndonesia’s GDP is estimated to be $823 billion in 2011
  5. Caitlyn1st, 3rd, and 4th bullets only
  6. CaitlynKnow bullets and explain the picture is an example of what a international voltage converter looks to use
  7. Caitlyn(CIF is the landing cost in any Indonesian port including freight and insurance).
  8. CaitlynKnow bullets, and explain the pictures. Top is typical breakfast in Indonesia, and the bottom one is a typical lunch or dinner meal in IndonesiaIndonesian’s do not currently eat waffles or pancakes in the traditional western style, and this influenced our decisions on our target markets
  9. GarrettBrand nameStrong U.S market presence – 70% of hotelsSimple to prepare - "In 2 Minutes or Less, Simply the Best“ which is a strong and accurate marketing sloganWeakness – Non-diverse product offering – sweets, desserts, and breakfast.Opportunity
  10. Garrett
  11. Garrett
  12. Garrett
  13. Garrett
  14. GarretBecause of the complex nature of the supply chain in indonesia – full of middlemen.The supply chain in Indonesian is “archaic tangle of restrictive arrangements employing sub-wholesalers, wholesalers and distributions in between the manufacturer and importer and retail outlet and restaurant. The chain is difficult to understand and expensive to use: large distributors not only transport goods, assume risk, get involved in promotions and negotiate retail margins charging up to 30% of the retail price.”
  15. Ray
  16. Ray32 days from the United States to MalaysiaFromApm Terminal-Berth 88 in New Jersey to Malaysia at PalebuhanTanjungPelepas Terminal - takes 32 days with stops in Norfolk, Va and Savannah, GA
  17. RayA Maersk feeder vessel assumes responsibility of the shipment and transits to TanjungPriok (Jakarta port). 35 day total transit timeThe product destination is Jakarta because Jakarta has ports that are able effectively handle container shipments.
  18. RayCredibility with known clientsMAKE HYPERLINK RAY RAY
  19. RayThese are both viable options that also feature cold storage.
  20. Taylor on to 26
  21. Taylor
  22. This is the market potential in Bali and Jakarta.Explain figures.Explain how you found figures
  23. “Could possibly be a profitable venture in the future”