Simplysiti - Strategy Towards International Market

Entrance Strategy

Entrance strategy is important; for Indonesia market, SimplySity’s approach is Direct Exporting i.e. to sell its product to retailer outside its home country, who then sells the product to the end consumer. Guardian and PT Matahari are the chosen retailers and it will be explained further later. Though this approach is considered ambitious, the main reasons behind this approach are: (1) geographic proximity, (2) extensive cultural overlap, and (3) market similarity. Details of these factors have been explained earlier. This approach requires SimplySiti to man the export process and marketing which will be explained later. To man the export process, it requires developing an export plan and a basic framework is as per Appendix. To get resources and assistance, SimplySiti has approached MATRADE to understand rules and regulation governing cosmetic trade and to appoint a reliable freight forwarder to ensure smoothness of customs clearance, entry processes and etc.

Marketing Strategy

SimplySiti is customer orientation due to the nature of its product and the industry. SimplySiti offers product variation to appeal different market segments of mass market. For Indonesia market, SimplySiti will export all variation as sales to mass market is necessary to gain sufficient economies scales in production and distribution.

Product Policies and Pricing Strategies

The product will not be altered for Indonesia market because of (1) similarity of Asian skin, and (2) product unique selling point i.e. is halal product. SimplySiti product complied with Indonesia National Agency of Drug and Food Control. Indonesia cosmetic industry has started complied with ASEAN Cosmetic Directives. There is no cultural consideration that requires alteration as Indonesia shares almost the same culture as per Malaysia. There will be no major alteration cost as there will be only slight alteration on packaging. SimplySiti has little discretion in setting it prices due to...