Carman's Kitchen is an Australian Company that had been started by Carolyn Creswell. As the name suggests, the business is a food business, and the founder had no educational background in business or no prior knowledge regarding the market. But it became the one of the most loved gourmet food brands within fifty years of its start (Zou, Xu and Shi, 2015). Indonesia is an archipelago which is situated in between Southeast Asia and the continent of Australia. There has been considerable introspection by marketing research firms into the country’s marketing environment. The GDP growth rate of the country was 5.6%. The country has experienced strong growth in the performance in terms of the economic aspect. The fiscal policies of the country have also been managed in a prudent manner, and there has been a very sound framework for implementation of the macroeconomic policies (Doole, 2016).
Analysis of the Market Environment
The PESTEL method is a very efficient and commonly employed method of analysis of the environment for marketing for Carman’s Kitchen. It is also a convenient method for the identification of the opportunities that exist for making investments in the future and for earning profitability.
The first most important factor contributing to the efficient analysis of the marketing environment is the political factor. The system of political affairs in Indonesia is highly democratic. The country has been declared as a republic country. The laws and legislations, as well as the constitutional rules and regulations, have been formed from the legal system of the Dutch-Roman origins. Stability in the financial situation in the country has not yet been achieved since 22% of its population still lies below the poverty line (Doyle and Stern, 2009).
The economic factors are the next most important factors in the examination. It would be advantageous for the country while it is framing its own strategy for marketing. This is due to the fact that several economic strengths and weaknesses help in the efficient devising of the strategies. It will also help the Carman’s Kitchen to have a perception of the requirement of the financial resources for setting up the business and also for conducting the crucial business operations. Indonesia is a country which is in its developing stage, and quite a few steps have already been taken for the purpose of increasing the overall growth in the level of GDP. Hence many development initiatives have been taken by the Indonesian government. Hence for the purpose of setting up the business for Carman’s Kitchen, this variant would prove to be quite beneficial (Du Plessis, Strydom and Jooste, 2012). It will also prove to be quite profitable during the conduct of the business responsibilities later on.
The social factors come next in order of importance and are the key factors contributing to the successful performance of any organization. The organization under consideration, that is, Carman’s Kitchen must understand the socially significant aspects of the market (Winer and Dhar, 2014). This would facilitate its understanding of the type of products that would sell more in the country. Most of the population resides in urban areas hence they would have an approach in every action that is typical of urban people. Hence the products that they would prefer would be the ones that are trending and are newer.
The next most important factors are the technological factors. Technology is the most key and crucial ingredient nowadays for the efficient development and designing of any operational procedure (Geetanjali., 2010). In the case of Carman’s Kitchen, latest technology would be a boon for the operational procedures and would act as the driving force behind the acceleration of the business performance. Very efficient and purely technological as well as communication technology resources would be available in Indonesia, which boost the business’s performance considerably (Appannaiah and Reddy, 2010).
The environment is being depicted to be competitive in nature which is depicted to be influencing the business as it is situated in the Indonesian Market. It needs to be appropriately evaluated for the betterment of the business since it is dealing the products related to the food items (Baines, Fill and Page, 2011). Therefore the innovative food products must be supplied by the Carman’s Kitchen for the purpose of building an suitable environment for the purpose of attracting the people.
The legal factors are the last but not the least in this analysis, as they help in ensuring a consistent and disturbance-free functioning of the organization. The strong legal framework, which is present in Indonesia due to the newly formed and efficient laws and legislations, would ensure that there would b efficient management of any legal issue that might arise (Hollensen, 2017).
Analysis of competitive market environment
In this case study, with the straightforwardness of the Indonesian competitiveness means that the industry has an academic definition. In the Indonesian competitiveness, the given market value has related to rate of concept strongly (Terpstra, Sarathy and Foley, 2012). It is considered as the better result of economic in their competitors of the market as to achieve the more earnings in the ability. As per as the industrial report, the competitiveness of the unit of the company has a rigid marketing value. In the following distinguishing in the global economic market show the rigid competitiveness. In these companies, there has highly competitive market that has quickly adapted to the changes of environment. To distribute the appropriate feedback of the individual company that has to demand on the response of their consumers. The information technology plays a significant role in the given competitive market environment (Keegan and Green, 2005). The business flows are must be acknowledged by the organization of the market.
In developing the overall planning, the marketing has to perform or analysis of the individual market segmentation. Intuitive and simple relatively that was the main concept behind the every market segmentation. Larger with appropriate manageable pieces for overall market's service and product have smaller terms of thinking. It has to identify with these sub-groupings which have more benefits of competitive advantages and strength of company are likely the most productive in the market. It takes place in the multimedia as well as in the software industry, hardware and also in the networking and infrastructure in the individual network access protection. The privet companies with the partnership of the government of in the economic growth and the business competitions in Indonesia. In the Indonesian, financial and economic conditions were the carefully expected driven by the individual government (Kleindl, 2007). The income tax related to the business is also collected by the government. In this case study, the individual company which is not an appropriate Indonesia company that they have to provide more tax than the companies of the Indonesia. It is directly affected by the national revenue by the individual payment of tax or by the corruption of the government. It is too a reason for the expansion of the opposition market and their market values.
In the establishment of Carmen's kitchen, in this case, it plays a significant role in the governing of the strategies and planning in the individual business. The circumstances of this planning are also affected by the government. It is a major part of the competition of the labor market. It directly affects on the implementation of the individual business that has negative and active migrants’ mentalities of staffs. It also includes the irregularities of the employees, structural transformation, and international migration. It is also governed by the situation of the government (Kotabe, 2016). The improvement of technology and the development of the science and the each of the banking sectors have mostly affected the competitive market of Carmen's kitchen. In the legal system of Indonesian has also played effective barrier role in the company to achieve their goals.
The appropriate analysis of the Indonesian competitive market of the environment is effective for Carmen's kitchen. In greatest cases, the employees contain the school level teaching occupied in the labor market which also preserves are for the threat implementation of the individual company. The local company has more utilize in the profits and the situations. Due to the present cases, there has much corruption that regarding too honest staffs and lacking skilled sufficient in Carmen's kitchen. The individual companies hired them in the revisit of better income; consequently, it can be a cause for increasing the struggle in the market (Kotabe and Helsen, 2015). It is also related to the education system with the opportunities of the employment or the technology in the expansion of the science which are related to the competition analysis in the market environment. Trough this; the business is able to be qualified to face the complexity of increase or loss of the competitions.
Development of an international marketing strategy
Mode of entry
Exporting is considered as the most common form of the entry mode for the companies to enter into the foreign market. The exporting of the goods and services helps to increase the distribution and sale the products in the international market. The main advantage for the organization is to avoid the risk of the establishment in the nation. Other advantage is that the organization gets better knowledge and information about the local market. The company would be to expand its business operation and increase the profitability.
Franchising and licensing
The process helps to lease the intellectual properties such as copyright, technology and patents, it helps the foreign organizations to enter into the domestic market. The main advantage of the mode is that it decreases the direct costs and risk for the licensor (Sheehan, 2011). The foreign organization in the franchising becomes partners to domestic companies in lieu of the royalty fees. It will help the company to promote and sale the products in domestic market.
Joint ventures help the organization to capture the market with the creation of partnership with the domestic company. It helps the company to protect themselves from political and economic risks and gathering information about the local market environment. The government is also able to control the foreign organization in the market. Carmen’s Kitchen should choose joint ventures entry mode in order to expand its business operation in Indonesia.
The management of the value chain in Indonesia by the Carmen’s kitchen should be managed in an efficient manner so that the customers would be able to purchase the products easily. The inbound logistic system should be managed by purchasing goods from the suppliers at reasonable rate and also supplying the products and services at low prices to the customers. In the warehouses, the raw materials should be stored so that it remains in good condition (Mayrhofer, 2012). The outbound logistic system will help to distribute the products in the market. The supply of products is important and promotional techniques should be used for the promotion of the products that helps to increase the sales of the company.
The segmentation of the market must be made by the Carmen’s Kitchen for the purpose of attracting the people and also this process will enable the company to attract the people towards the business launched in the market of Indonesia. This will enable the business to determine the growth and also it will enable the organization to have the appropriate growth with being the competitive nature is determined for the products provided by the Carmen’s Kitchen (Paliwoda, 2013).
The targeting is also depicted to be the most important part by the help of which the Carmen’s Kitchen can be able to attract the people. It can easily conduct the promotional practices and also the expansion of the business can be easily made.
The positioning of the business must be made in the centre of the Indonesian market by the help of which the company can be easily able to establish the appropriate attraction of the tourists and also the growth can be easily depicted. Therefore this is becoming the part of the international marketing strategy for the purpose of determining the appropriate growth of the business (Ramachandra, Chandrashekara and Shivakumar, 2010).
The products that are delivered to the people must be taken care of regarding the quality and the quantity. The innovative ideas must be implemented in the food items as it is being provided to the people with attracting them for the enhancement of the business.
The price must be lowered initially for the purpose of attracting the visitors and also the local communities with the tourists. This will show the part of the strategy which is being developed by the business for the purpose of capturing the market.
The place is becoming the most important part. It is because if the business is located in the busy market then it will be easier for the Carmen’s kitchen to gain the attraction of the people and also the growth can be easily made by attracting the people (Sarangi, 2011).
As per the promotional strategies are concerned, the activities related to the conduct of special discounts and also making the attracting offers for the couples and the youngsters will create the enhancement in the business.
In conclusion of the case study, it can be said that the Carman's Kitchen Company should concentrate on developing their business strategies and the condition of the market of Indonesia. On the basis of the demands of the customers or the target audience, they should take care of their productions, management, employees and the distributions also. The appropriate analysis of the Indonesian competitive market of the environment is effective for Carmen's kitchen. In the establishment of Carmen's kitchen, in this case, the competitors play a significant role in the governing of the strategies and planning in the individual business (Sharma, 2007). The circumstances of this planning are also affected by the government. It is a major part of the competition of the labor market. They must be aware of their market competitors, and they must do the swat analysis of their competitors. The analysis should be done by the company about the market environment and their future demands also.
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