Strategic Marketing in Indonesia

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Executive Summary

Astro All Asia Broadcast is a satellite pay TV service operator formed in Malaysia in 1996. In mid 2006, through a joint venture with a local entity PT Direct Vision, Astro commenced its operation in Indonesia, with its initial offering of 48 channels. In this relatively untapped market, Astro seeks to gain a foothold in the industry. To date Astro Indonesia has garnered 216,000 subscribers, dominating 21% of the market.

The Indonesian pay TV industry is a flourishing with revenues of USD9.8 million. The market remains untapped with a meagre 2% of the 31million households subscribing to pay TV. The industry is promising, with only 5 key players and the biggest being Indovision dominating 63% of the market share.

Astro faces some key challenges in establishing a foothold in the Indonesian market. The preference for local freely available programming, extensive government regulation, piracy and low purchasing power are all barriers to growth.

On the other spectrum, there is a significant unmet need in the market. Pay TV operators, predominantly offer similar content as there is a lack of differentiation in the channels offered by the various pay TV operators. The key to survival in the market is financial strength or synergy in acquiring content that are sought after by the customers.

Astro’s business strategy thrust is product differentiation through innovative content. This is achieved through its sustainable competitive advantage which resides in its synergy with AK vision, a premier production house in Indonesia and Astro Malaysia in developing and acquiring unique content..

In growing its business, driving subscriber acquisition is key in delivering the results. The success of this will depend on attracting prosperous Indonesian household from the upper and middle segment. This is achieved through market penetration strategies such as intense advertising and promotion to stimulate trial, development of unique distribution channels to effectively reach the market and outperforming the competition on customer service.

To ensure successful implementation of its business strategy, it is pertinent to ensure that all business units are aligned. Control measures using the balanced scorecard are key to ensure effectiveness of the strategies implemented.

Together with continuous offering of uniquely distinctive content and an clear strategic direction and implementation of the business strategy, the concept of offering consumers a unique viewing experience will ensure that Astro achieves phenomenal growth in the Indonesian market.


2.0Strategic Marketing Plan Framework4
3.0 External Analysis5
3.1 Customer Analysis5
3.2 Competitor Analysis 7
3.3 Market Analysis12
3.4 Environmental Analysis16
4.0Internal Analysis18
5.0 SWOT Analysis20
6.0Business Mission and Marketing Goals22
7.0 Sustainable Competitive Advantage24
8.0 Business Strategy25
9.0 Generic Strategy 28
10.0 Growth Strategy29
11.0 Positioning Strategy30
12.0 Strategic Marketing Mix33
13.0 Assumptions and Contingency Plans34
14.0 Sales Forecast and Financial Projections35
15.0 Implementation36
16.0 Reviewing strategies38
17.0 Conclusion40
19.0 Bibliography and References42

1.0 Background

Astro All Asia Broadcast is a satellite pay TV service operator formed in Malaysia in 1996. Astro’s multi-channel TV service offers 110 multi-lingual, multi-genre channels. The Asian region continues to provide immense, relatively untapped opportunities. As domestic growth has reached plateau over the past year, Astro seeks to tap into large under-penetrated markets in the region in an effort to expand its...
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