Taylor Sipotz Ray Sears Garrett Walker Caitlyn Burke

Contents

•Background of Indonesia•Diet and Nutrition•SWOT Analysis•Target Market•Marketing Plan•Final Recommendations

Indonesia’s GDP• Indonesia’s GDP is facing a period of exponential

growth• The annual growth rate for GDP was 6.1% in 2010

GDP 2009-2011

$0$100$200$300$400$500$600$700$800$900

$1,000

$539

$707

$823

2009 GDP2010 GDP2011 GDP (Es-timated)

GD

P in

$B

illio

ns

Language• 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

Electrical Requirements• 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

Import Restrictions• 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 Performance invoiceo Certificate of origino Insurance certificate

o Import declarationo Commercial invoice o Bill of Ladingo Packing list

Diet and Nutrition• Typical breakfasts include:

fried rice, eggs, fruit, porridges of vegetables, fried bananas, and chicken soup

• Meals in Indonesia revolve around rice as a staple ingredient

• The typical diet in Indonesia consists of: rice, fish, meat, eggs, dairy, fruit, and vegetables with spices

Typical Breakfast: Nasi Goreng “fried rice” the Indonesian national dish

Typical Meal: rice with vegetables

SWOT AnalysisStrengths

• Brand name• Strong presence in U.S.

market• Financial stability• Product is simple to

prepare

Opportunity• Tourism• Penetration of Indonesian

market• First-mover advantage

Weaknesses• Non-diverse product

offerings

Threats• Culture and religion• Climate• Geography• Shipping issues and risk• Tango Waffles

INTERNAL

EXTERNAL

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%

Target Market Justification

Bali: Primary Target Market

• 25-30% tourists arrive in Bali

• Equal amount visit during their stay

• Nearly 30% of 4 and 5 star hotels

• 78% of customers are foreign tourists

Target Market Justification (continued)

Jakarta: Secondary Target Market

• 27,685 star hotel rooms• 22,376 customers per day• 30% foreign

Primary Target Market: Bali

Grand Hyatt and Hyatt Regency

• Bali and Jakarta Locations

• 400 – 500 rooms per hotel

Hilton and Conrad Hotels

• Bali and Jakarta Locations

• 350 rooms per hotel

Starwood Hotels

• Sheraton, Westin, St. Regis, W Hotels

• Bali and Jakarta locations

• 250-350 rooms per hotel

Secondary Target Market: Jakarta

Ritz Carlton Jakarta

• Jakarta and Bali Locations

• 367 Rooms

JW Marriott Hotels

• Jakarta and Bali locations

• 300 rooms per Hotel

Crowne PlazaJakarta

• 350 + Rooms per 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 Golden Malted

Freight Forwarder Distributor

Distribution

“Best Global Shipping Line” 18th consecutive year

“Best Green Service Provider – Shipping Line”

• Established in 1904• Worlds largest ocean

carrier firm

2011 Asian Freight & Supply Chain Awards

Freight Forwarder

Distributor

PT Sukanda DjayaJl. Pasir Putih Raya kav. 1Ancol TimurJakarta 14430Indonesia

Phone: + 62 21 640 5678Fax: +62 21 640 2861

Web: www.sukandadjaya.com

• 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…

Distributor

PT Continental Duta International Grand Pluit Mall Block B-6Jl. Pluit Raya Selatan No. 1 Jakarta Utara 14440 – Indonesia

Phone: +62 21 6660 1425Fax: +62 21 6660 1426Email cdi@continental.co.idWeb: www.continental.co.id

PT Wire Logitama SaksamaJl. Ancol Barat VII Blok A 5D No. 2Jakarta 14430, Indonesia

Phone: + 62 21 690 9244Fax: + 62 21 690 9436Web: http://wiralogistics.com/index.shtml

Product Differentiation"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

PackagingThe 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

FHT - Bali Tradeshow• 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 CenterKawasan BTDCNusa DuaBali, 80363Indonesia

Phone: +62 361 771906Fax: +62 361 772047Web: http://www.baliconvention.com/Email: bicc@baliconvention.com/Date: March 01 – 03, 2012

ProPak Tradeshow• 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 ExpoGedung Pusat Niaga Lt.1 Arena PRJ Kemoyoran Jakarta, 10620Indonesia

Phone: +62 (21) 266 45 000/131Fax: +62 (21) 657 000 10Web: http://www.jiexpo.co.id/Email: marketing@jiexpo.co.id/Date: TBA (December 2012)

Market PotentialBased on Hotel Occupancy Rates

Bali Hotels Jakarta Hotels

(Figures based off 222 waffles per case X $40USD per case assuming each potential consumer eats 3 waffles per day)

Cases • 6,357 cases monthly• 76,285 cases annually

Dollars• $254,283 in sales per

month• $3,051,400 in sales

annually

Cases • 2,038 cases monthly• 32,850 cases annually

Dollars• $190,500 in sales per

month• $1,314,000 in sales

annually

Final Recommendations

• 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

“Should Carbon’s Golden Malted enter Indonesia?”YES!

• 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

Final Recommendations(Continued)