Max Brenner to Indonesia

Market Entry Strategy

Max Brenner to Indonesia

Susanti Indah TEDJA

20441029

Executive Summary

Max Brenner, an Australian-based chocolate bar, wishes to enter the Indonesian market. Indonesia, with a population of 240 million, provides for a nearly infinite consumer base with which Max Brenner may tap into. Two of Indonesia’s most prosperous cities, Jakarta and Surabaya, are the ideal locations for Max Brenner to set up their first outlets in. This is in view of the advanced infrastructure in place within those cities, and the high density of population within those cities. Indonesia’s younger generation which consists of teenagers and the working-class, since heavily influenced by Western culture, are very likely to prefer Max Brenner as one of the “cool” hang out place.

Though the public trade statistics may significantly understate market opportunities and trends in Indonesia, it seems that there is a potential market in Indonesia. However, Max Brenner must be aware of the cultural issues that may arise when planning for their market entry strategy. The understanding of the Indonesian culture is imperative in attracting positive consumer behavior and perceptions, while simultaneously Max Brenner must avoid being ethnocentric in this foreign country. Indonesian cultural issues such as language (Indonesia’s many diverse ethnic groups converse in their own respective dialects), attitudes and values, culture, product adaptation, and subculture all must be taken into consideration if Max Brenner wishes to succeed in the Indonesian market.

Indonesia has weathered the global financial crisis relatively smoothly because of its heavy reliance on domestic consumption as the driver of economic growth. The fact that Indonesia still struggles with poverty and unemployment, inadequate infrastructure, corruption, a complex regulatory environment, and unequal resource distribution among region, is giving Max Brenner significant challenges to succeed in Indonesian...