Strategic Marketing in Indonesia
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
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
References: Statistic Indonesia (2007) . Indonesian 2007 Population Census. Viewed through the internet on 2 March 2009 at : ▪ Review strategies Source : Aaker, D.A.(2005)