Ben & Jerry's Expansion to Indonesia

Topics: Indonesia, Jakarta, ASEAN Pages: 23 (7595 words) Published: April 10, 2013
The report critically researches the market entry of the ice cream producer Ben & Jerry’s into the Indonesian market. The report critically researches the market entry of the ice cream producer Ben & Jerry’s into the Indonesian market.

The International Expansion of Ben & Jerry’s to Indonesia The International Expansion of Ben & Jerry’s to Indonesia
Ben & Jerry’s (Ben & Jerry’s, 2012a)
Ben & Jerry’s (Ben & Jerry’s, 2012a)

Table of Contents
1Executive Summary3
3Country analysis Indonesia4
3.1General Overview4
3.2Analysis of Macro-Environmental Framework in Indonesia4
4Analysis of regional organisation ASEAN5
4.1General overview5
4.2The Three Pillars of ASEAN6
5Ben & Jerry’s Analysis7
5.1SWOT Analysis of Ben & Jerry’s7
6Industry/sector analysis9
7Mode of Market Entry Analysis and recommendation11
7.1Comparison of Entry Modes11

The International Expansion of Ben & Jerry’s to Indonesia Executive Summary

Indonesia turned out to be an economically successful country with a stable political system and increasing wealth due to the continuous GDP growth of around 6%. Today, Indonesia poses the biggest purchase power for luxury products in Southeast Asia. Nonetheless, many people of the republic still live below the poverty line. Daily business is partly influenced by corruption and bribery as well as the Islamic culture’s traditions. Today, agglomerations suffer from the rapid growth and the subsequently overchallenged infrastructure. Latest projects improve current conditions.

As a member of the ASEAN community, Indonesia enjoys the support of 9 other countries. By today, the association, which follows the EU model, has created better political and economic relations within Asia. The countries promote peace and contribute to each other with e.g. a free trade zone among the members and even China and South Korea which allows a tariff-free access to almost 2 billion people. Indonesia as the biggest member has the most powerful voice in the diverse association.

Ben & Jerry’s, the American premium ice cream producer is part of the Unilever conglomerate and present in 26 countries across the globe. The use of chunks gives it a stand-alone market position. Combined with the strong brand image and philanthropic engagement, it is popular among consumers despite the relatively high retail price.

Concerning the industry, Ben & Jerry meets a brisk food but weak premium ice cream industry. Additionally, Indonesia is one of the world biggest food markets with an increasing demand in premium indulgence products which soared within the last years. However, new competitors can turn up unexpectedly.

To tap into the new market, Ben & Jerry’s is recommended to start a licencing agreement with a partner that targets the same consumers such as Starbucks. Licencing keeps the entry risk low and doesn’t require high investments. Eventhough margins have to be shared with the partner, independend moves can be considered later in case of success. Introduction

The report is structured in 5 chapters, analysing Ben & Jerry’s expansion to Indonesia from a wider angle. Firstly, the country analysis brings out Indonesia’s general information and a macro-environmental analysis. Secondly, the regional organisation ASEAN reveals its basic organisation and three major pillars which is followed by the company analysis. Ben & Jerry’s is described in economic matters by a SWOT analysis and the listing of its capabilities. The subsequent industry analysis researches the attractiveness of the Indonesian food industry. Finally, a comparison of four different entry modes follows which is concluded with a recommendation for the market entry. Country analysis Indonesia

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