This case study is about how the company released new products in a market with a very high level of competition. The launching of the Massiv Green product was a big challenge for Mr. Hadi; consumer buying power fell, the number of imitation products grew, and there was no opportunity to enter the Original Equipment Manufacturing (OEM) market because it was dominated by market leaders who have been in partnership with car makers for decades. The fact, that majority of consumers replace their batteries with the same brand that the car had when it was first purchased, made the situation worse. In situations like these, circulation of myths regarding the existing dominance of these market players is very difficult to penetrate.
In this case participants will learn how companies breakthrough against the dominion of big players who had dominated the market for decades. The process begins with a comprehensive industry analysis, a Marketing Opportunity Analysis (MOA), and the execution of an integrated marketing strategy. We will also learn how a company fills an existing market segment without taking the market of its previous products; critically differentiate products owned by the company to avoid product cannibalism.
“Apa pun makanannya, minumnya Teh Botol Sosro”, (Any food you eat, the beverage is Teh Botol Sosro), it was SOSRO’s tag line appeared in every SOSRO advertising, in television or printed media. Mr. Sosrojoyo’s dream happened now where he wanted everybody to enjoy the delicious smell and taste of Sosro tea. Now everywhere in Indonesia, in every small kiosk from small village to big city we could see the product of Sosro tea.
Of course this success did not happen in one night. It was a long journey since Sosro built the kingdom of tea, facing lots of challenge and obstacles. It was in 2006, when Mr. Sosrojoyo sat in his office, reflecting the long journey the family went through. It seemed to him the nowadays business situation had changed, the coming of new player in bottled beverage made him re-thinking about Sosro’s competitive advantage. He had to reformulate Sosro’s competency in a way so that they could answer the challenge of competitor.
This case illustrates how the Honda prepared and globally market its product, the All New CR-V. as a global player in the automotive industry, Honda CR-V prepared toward multinational research to fit with consumer expectation. Markets its products globally, Honda has the advantage in terms of economy of scale and greater marketing opportunities.
When the CR-V to market in Indonesia, Honda do domestic marketing such as choosing the target market, product positioning, and integrated marketing communication. Many factors contributed to the success of the CR-V in Indonesia, but the value proposition CR-V looks to be a key factor. Honda is able to provide driving comfort sedan to a Jeep with a relatively lower price than its competitors at that time. Through this case study participant is expected to learn how to prepare a global company doing domestic product and marketing to increase product penetration.
On October 2006, Bambang Asmarabudi, General Manager of Marketing and Promotion of Yamaha Motor Kencana Indonesia (YMKI), was irritated as he and his team would face Mid-Year meeting the next day.
The fact that only ten to thirteen percent of these female inhabitants were motorcyclists made very large open market for prospective female consumer. From the supplier side, it seemed manufacturers were aware of the fact, but they were unsure of this female market prospect.
Although the sales unit sales grew from 2003 to 2006, Bambang was irritated by the reality that Yamaha Mio was not bought by women as target market. He wondered if he and his team should make adjustments to the marketing strategy facing this unexpected trend.
One still could vividly remember when Starbucks first opened its first store at Seattle, United States of America on 1972 and the hype suddenly went breakthrough like a wildfire from the State only into nationwide and upon 1996, Howard Schultz as Starbucks’ owner decided to go international.
It wasn’t long before that when Starbucks opened its first store in Indonesia and the buzz that already went along the words that already whispered in everyone’s ears gone crazy. The cozy ambience and the promise of “delivering the best coffee only for you” from the company to the consumers have been the magic words among Indonesia’s socialite and all in sudden, Starbucks’ coffee stores flocked with people. Now everybody could enjoy their nice cup of Frappuccino™ or Café Americano at the good-looking place with sweet and slow jazzy tunes at every Starbucks coffee store or simply grab the signature cup of Starbucks and bring it everywhere, be it campus, school, office or simply for hangout purpose.
The opportunity for Starbucks at that time when they entered Indonesia market was still big for there were only several small players at Indonesia. Coffee store and café business never been taken seriously and people accepted coffee-drinking activities as side activity which did not have any added value for any other means. Indonesian even didn’t recognize coffee as one of their primary habits. However, the hype started around 1999, not so long after the crisis that hit several regions at Southeast Asia. Indonesia, by any means, considered as a very interesting place for Starbucks to expand. However not so long after the trend started, recently nowadays Starbucks isn’t the only player at Indonesia. Thanks for the hype and buzzwords, more and more competitors barged into the market, be it from foreign players (Gloria Jean’s Coffee, The Coffee Bean and Tea Leaf) or domestic players (Bakoel Koffie, Bengawan Solo Coffee) and all of them even offered similar beverages and “experience” as same as Starbucks. They create same ambience, same coffee and even, same packaging – only in different brand name and label.
This kind of situation forced Starbucks to think hard and long because even though Starbucks already got big name and big time at United States where it is originally came from, the market in Indonesia is totally different. They are playing at different culture, different consumer’s expectations and even different purchasing power and Starbucks realized it clearly that in order to survive in this volatile market of Indonesia they should take the right approach.