International market research findings for Jonnie and Therese Boer Culinary Book production “Purest”
Annemarie Schraa S1052361
Silke Marsman S1049097
Tom Eenkhoorn S1051191
Ji Min Chung S1064932
Ayodele Odesola S1062506
IBS2C, project group 16
Albert Hulzebos
Research report
International Business and Languages
Business School Windesheim
Zwolle, 14 March 2012
Executive Summary
This research report was made in order to gain information relevant to selling the book ‘Puurst by Jonnie Boer’ on the Indonesian market. The information from this report will be used to write a second one with recommendations as to how one would go about actually marketing the book in Indonesia.
The report is based on Jonnie Boer’s book which talks about taste and high end cooking. It also includes a wealth of recipes.
This report contains research done on macro, meso and micro levels in order to give a thorough and complete view to base the follow-up report on.
When one examines Hofstede’s cultural dimension on Indonesia, one will know it is a country with a rather high power distance, and low individualism, whilst other dimensions score fairly toward the average.
It is worth mentioning that a new trend which can be a potentially powerful marketing tool is social media, which has grasped the nation after the introduction of smartphones.
It is also notable that because Indonesia is an Archipelago there are many different cultures, although most business is conducted in Jakarta and Java islands.
It’s also important to keep in mind that Indonesia is largely a Muslim country and thus representatives (as well as people images in the book) should be conservatively, and the majority of the people eat food the halal way.The information in this report was largely obtained through means of deskresearch.
On a meso scale we researched a variety of topics, related to the high dining culture, distributors, competitors etc. We concluded that Indonesians aren’t used to cooking with many foreign spices, they mainly grow their own, or get fresh ones from a local market.
It is notable that cookbooks are less expensive when compared to other cookbooks in Europe and America.
It should be noted that most competitors encountered are in a different class and don’t have the heavy emphasis on specialty cooking as our product has.
Internet usage has increased exponentially over the last couple of years, and could be used as a major tool in marketing and sales. The most interesting forms of distribution would be selling through the internet and bookstores.
The ideal type of customer would be one who is well educated and of course a cooking enthusiast.
Table of Content
1. Introduction P. 5
2. Research Design P. 6
3. Market definition P. 7
4. Macro analysis
o DESTEP P. 9
o Attitude towards high end cuisine P. 15
o Cultural differences P. 17
o Indonesian image of Holland P. 20
5. Meso analysis
o Consumer market segments P. 22
o Competitors analysis P. 25
o Five forces porter P. 28
o Distribution channels P. 30
o Costumer attitude towards fine dining P. 33
o Main publications P. 35
o Social participants P. 37
6. Micro analayis
o Consumer analysis P. 39
o Persona P. 42
7. Conclusions P. 45
8. Sources P. 50
Attachments P. 51
o Project contract
o Logbook and reflection process
1. Introduction
The book ‘Purest’ is a cookbook which explains the (r) evolution of Jonnie and Thérèse Boer on high end cuisines. They are the owners of the restaurant The Librije. It is a high end restaurant located in Zwolle and has achieved three Michelin stars. This restaurant serves only high end quality dishes, which are created by the owners of The Librije. The book was written by Jonnie and Thérèse Boer, who give full explanation on everything concerning high end culinary cooking.
The Librije hopes to expand their brand awareness by expanding their market. Promotion will be of great importance to introduce this cookbook on the Indonesian market. By doing desk research the group was able to gather information about several aspects of Indonesia that focus on the niche market of high end cooking. This research was commissioned by Jonnie Boer; he would like to know whether it is possible to sell the cookbook ‘Purest’ in Indonesia. So the main question is: In what manner is there demand in Indonesia for the book ‘Purest’?
The report begins with an executive summary, the table of contents and an introduction of the content of the report. After that you will find all the information and conclusion gained through extensive research.
First you will find the market definition that tells you about the USP’s of the cookbook. Then you will find the external analysis, which consists of desk research into several aspects. This contains the following: macro analysis, meso analysis and micro analysis. After all this information the main and sub questions will be answered. Subsequently you will find the data sources and attachments.
2. Research Design
Main question
In what manner is there demand in Indonesia for the book ‘Purest’?
Sub questions
• What are the relevant macro economical factors relevant to high end culinary cuisine in this country?
• What is the attitude towards high end cuisine food in general?
• What are cultural differences which could be relevant for the way to best promote Top culinary restaurants/products-/services?
• How interesting is the culinary book industry in Indonesia?
• What are the consumer market segments for fine dining / culinary book buying?
• Who are competitors?
• How is de Librije/Jonnie + Thérèse Boer perceived in your country ?
• What distribution channels for high end quality culinary products/ services are available?
• What are Consumers attitudes towards fine dining?
• What are the main publications relevant to the consumer market segments or distribution channels?
• Are there any societal participants?
• Where and how do the participants meet each other?
• What are potential buyer motivation?
Research type
This research is explorative research. It will be investigated how the Librije have to formulate their marketing strategy in comprising with the book ‘purest’.
Strategy:
During this research, desk research and some field research will be done. Field research will be done by a small interview and asking opinions of Indonesian people who live in The Netherlands .Besides the field research, desk research will be used to find data, especially on the internet, about the Indonesian top culinary market/ industry and the restaurant ‘The Librije’ itself.
Data-collecting method
Method of data-collecting is qualitative and by this research through some field research and desk research.
Desk research: internet and ‘The Librije’.
3. Market definition
Here is a list of selling points we believe will draw the attention of potential customers:
- Association with a famous restaurant that has obtained 3 Michelin stars, no easily managed feat.
Obtaining 3 Michelin stars in a tremendous feat, it shows true dedication to fine dining. And it’s unquestionable evidence that Jonnie Boer is an irrefutable expert on cooking and his recipes are of the highest quality.
- Written by prestigious master chef Jonnie Boer
Jonnie Boer is a renowned chef in Holland, a country Indonesia once had ties with. Holland and Indonesia have always had culinary influence on each other and this book would be a great asset to the Indonesian people who already have some experience with Dutch cuisine.
- It’s a showcase and insight of Dutch culinary richness, taste and (r) evolution
Many Indonesian people are passionate about cooking. When they try to look outside of their own borders for recipes and styles, the Dutch cuisine is quickly found because of the historical ties. The insights in this book provide a valuable asset to any chef’s foreign recipes.
- Explanation of development of taste using his recipes
The most important thing about a meal is the taste. Next to being healthy and presentable, food has to taste good. This book gives ideas in how food can activate a taste and what recipes and techniques yield the richest flavours.
- 400 pages and over 200 recipes
The book is huge and contains a vast amount of recipes, ranging from things that are easily made but still deliver a sophisticated result to the more challenging recipes for the more advanced chef.
- A comprehensive taste discussion with taste professor Peter Klosse
Peter Klosse is the founder of the Academy of Gastronomy in Holland. The book contains an in-depth interview with him about the nature of taste and what is the best way to appeal to a client’s sense of taste.
- Thérèse Boer + Jan van Lissum – tasting/experiencing wine
Every occasion of fine dining deserves an equally fine wine to go along with it. That’s why this book contains a thorough discussion about a variety of wines by Thérèse Boer (Jonnie Boer’s wife and partner in the restaurant) and Jan van Lissum (a renowned wine expert from the Netherlands.
- Herbs for culinary purposes
In Indonesia spices and herbs are very important in adding flavour to a dish. That’s why the book contains a section dedicated to the best herbs to be used to bring out the best of the other ingredients.
- Dutch writer Ronald Giphart culinary text 50 recipes
A different section in the book contains 50 recipes written down by famous Dutch writer Ronald Giphart (famous author of the book ‘Phileine zegt sorry’)
- Special (X-rays, 3-D, and under water) photography by Jan Bartelsman
To give the reader an idea of how to use presentation in one’s dishes, the book contains an amount of special pictures of the recipes mentioned in the book. Clients don’t want their food to just taste good, it has to be presented to them in a way that it is artsy or creates an appetite. With the rise of social media around the world people often find themselves tempted to post and share pictures of remarkable food they ate through the internet. Present the food to them in a stylish manner and you will immediately receive an increased customer base through word of mouth advertisement.
- Jonnie en Thérèse: “Our purest and special book ever”. It completes the trilogy.
This isn’t the first book written by Jonnie and Thérèse Boer, they have written a couple of books in the past, but they really divulge all their secrets in this instalment. They claim it as their best book yet.
4. Macro analysis
Destep
Demographic
Indonesia has a population of 248,645,008(July 2012) which ranks 4th largest population of world. The rate of population growth is 1.03% estimated in 2012. Therefore Indonesia is the biggest potential market to Purest. Table 1 describes the age structure of Indonesia. Most of people can be Purest’s customer. More than half of the populations are people between the ages 25 and 64 who have power to buy high end culinary cuisine.
Table 3.1 Age structure of Indonesia
Age
|
Pecentage
|
0-14 years
|
27%
|
15-24 years
|
17.1%
|
25-54 years
|
42.2%
|
55-64 years
|
7.2%
|
65 years and over
|
6.4%
|
Source : CIA(Central intelligence agency)
Most high end culinary cuisine is spent in Urban areas. In Indonesia 44% of total population live in city (2010). The rate of urbanization is about 1.7% annual rate of change (2010-15 est.). The details about major cities are in Table 2. Figure 1 is the chart which can make easy to understand the population distribution in Indonesia.
Table 3.2 Population of major cities(2009)
Source : CIA
Figure 3.1. The population distribution chart of Indonesia
|
Source: world of maps(www.worldofmaps.net)
This table and figure give an idea to choose target city. The capital city Jakarta has about 9 million inhabitants and the other major cities have lots of people. Therefore when choosing target city of this book it is better to choose these major cities.
Economic
Indonesia is the largest economy in Southeast Asia and one of the emerging economies of the world. It is a free market economy in which the government plays an important role through ownership of state-controlled enterprises. Since the Asian Economic Crises, Indonesia has experienced major evolution in political and economic sectors. Today, with an improved business environment and a stable political structure, Indonesia is witnessing a incredible growth in both trade and foreign investments. With the government strong commitment in easing bureaucratic procedures, the trend will continue. It is worth noting that during the difficult global conditions of 2009; Indonesia’s economy was among the top worldwide performers, which is due to a number of factors such as strong domestic demand and rich natural resources. Effective macro-economic policies, a stable currency and recent upgrades in bond ratings have made Indonesia an economy to watch in coming decade.
The Government has given special attention on such key areas as investment, macro-economic stability, trade, energy, and agriculture which in turn allow Indonesia to enjoy its most rapid growth since the Crises. In 2007 Indonesia was listed as the 20th largest economy with a nominal GDP of USD 432.8 billion (World Bank). Such a promising picture has allowed Indonesia to be invited in 2008 - along with China, India, South Africa, and Brazil - to join the club of Enhanced Engagement Countries of OECD. This combined with opportunities to access new markets through Indonesia’s geographical positioning as a gateway to other South East Asian countries like Thailand or India makes it an even more appealing location for doing business. Investment opportunities are ripe in all sectors; ranging from infrastructure to manufacturing and services. This presents a window of opportunity for investors to participate in a market in the world’s fastest growing region that exhibits strong fundamentals and is poised to flourish.
According to a recent article on BBC, Indonesia's economy is growing at its fastest rate since 2004.
Barclays Research, a part of the corporate and investment banking division of Barclays Bank predicts that Indonesia's economy, the biggest in Southeast Asia, will expand 6.3% in 2013, the same pace as 2012 projected growth. In 2011 its GDP growth was 6.5%, the fastest pace since 1996.
Among the 10 emerging Asian nations covered by Barclays Research, the country will have the third-fastest economic growth after China and India this year.
However, Barclay's prediction is below the Indonesia's government forecast of 6.6% to 6.8% for 2013 after growing 6.5% in 2012.
It is also lower than the projection of the central bank, Bank Indonesia, of 6.6% to 6.7% for 2013.
Among the 10 emerging Asian nations covered by Barclays Research, the country will have the third-fastest economic growth after China and India this year.
However, Barclay's prediction is below the Indonesia's government forecast of 6.6% to 6.8% for 2013 after growing 6.5% in 2012.
It is also lower than the projection of the central bank, Bank Indonesia, of 6.6% to 6.7% for 2013.
Social
Family
One of the golden rules of international business is knowing the culture of the local community where one wants to set up a business. Indonesia is culturally rich, and it culture are intertwined with religion and age-old traditions. First, family is very important in Indonesia and it is very common for extended families that include grandparents, aunts, uncles and cousins to all live together in one place. Although this is true both in the cities and in the rural areas of Indonesia, it is becoming less common in city life.
Food and Cuisine
The pace of life in Indonesia is slower. People think that time is elastic. Particularly in their social life, Indonesians prefer not to make comprehensive plans or be expected to visit places at particular times. This is why Indonesians meals tends to be simple combination of rice, with a wide range of vegetables and meat dishes that can easily cope with the sudden arrival of few more people. In the cities, Indonesians prefer to meet at street stalls for coffee and conversation. People can spend hours just chatting with friends and catching up on new events.
The pace of life in Indonesia is slower. People think that time is elastic. Particularly in their social life, Indonesians prefer not to make comprehensive plans or be expected to visit places at particular times. This is why Indonesians meals tends to be simple combination of rice, with a wide range of vegetables and meat dishes that can easily cope with the sudden arrival of few more people. In the cities, Indonesians prefer to meet at street stalls for coffee and conversation. People can spend hours just chatting with friends and catching up on new events.
Indonesian women
It is important to mention that Indonesian society is experiencing many changes. These changes are in many ways related to the pressures of globalization. One of the main reasons for change is the continuing improvements in education in Indonesia. Internet usage is on a drastic increase and Indonesians now have access to areas of information that are new to them. Whatever the motives, cultural dynamics which for so many years have existed in Indonesian society, are now being subject of discussion, and one of the important aspects of these changing norms is the changing role of women in Indonesian society. Many Indonesian women are moving into the cities from their the countryside in order to get paid work, both to feed themselves, and to assist their relatives. The recent economic crisis has demonstrated that many families in Indonesia are no longer able to rely on the incomes of just one family member, the husband, but rather the wife must also work in order to attain a good standard of living. This gives them little time to cook and more microwavable meals and fast food are brought. However, for many Indonesian women, transformation has meant bigger educational opportunities, and thus a 'widening of horizons' for these women. Many of them are now deciding to pursue fulfilling careers outside the home, not simply as means of economic survival, but as a means of fulfilling an individual desire to succeed professionally.
Religion
This plays a significant part in the Indonesian society. Islam is the dominant religion with 88% of the population being Muslims. Alcohol consumption is forbidden according the Islamic laws and the halal meat will be almost the only meat option. (Halal means the animal has been slaughtered according to Islamic principles). One must consider religion in whatever business one is trying to do especially when it comes to food.
Technological
The e-commerce reached $4.1billion in Indonesia. According to APJII, the number of internet users reached 49million people in 2010, 60million people in 2010, and until 2015 there are 120million people increase about 1.5 times than before. The detail is below in table 3. Therefore it is the best way to sell products by using internet because it is a very large potential market.
Table3.3 The number of Internet user per year
Year
|
The number of Internet user
|
Increasing rate(%)
|
2007
|
25,000,000
|
25.0%
|
2008
|
31,000,000
|
24.0%
|
2009
|
40,400,000
|
30.3%
|
2010
|
48,700,000
|
20.5%
|
Source: Association of Indonesia Internet Service Providers (APJII)
It is worth noting that Indonesia is ranked 2nd in Facebook users in the world. There are about 35million people using Facebook. Table 4 is the ranking of usage of Facebook in the world. Indonesia has a potential market in social e-commerce aspect. By these reasons doing advertisements and promotion through the Facebook is an ideal marketing strategy.
Table 3.4 the usage of Facebook in the world
Ranking
|
Country
|
2011(People)
|
1
|
United States
|
154,226,960
|
2
|
Indonesia
|
35,177,260
|
3
|
United Kingdom
|
29,673,740
|
4
|
Turkey
|
27,665,280
|
5
|
India
|
22,956,220
|
6
|
Mexico
|
22,799,780
|
7
|
Philippines
|
22,376,740
|
8
|
France
|
21,748,240
|
9
|
Italy
|
19,143,520
|
10
|
Canada
|
17,792,280
|
30
|
Netherlands
|
7,516,620
|
Source: Nick Burcher
Ecological
Indonesian climate is tropical climate because the Indonesian islands are located between 5 degrees northern latitude and 10 degrees southern latitude around the equator. The average temperature in all area is between 25 and 27 degrees Celsius. The amount of precipitation is affected by monsoon so it shows clear distinction between rainy season and dry season except some rainy area near the equator. The climate is essential factor of cuisine. It is affected what they eat so we have to considerate the climate factor when selling the book.[1]
There are a lot of spices which is used to make food in Indonesia. "Rempah" is Indonesian word for spice, while "bumbu" is the Indonesian word for spices mixture or seasoning, and it commonly appears in the names of certain spice mixtures, sauces and seasoning pastes. Indonesia is known for its “Spice Islands” so traditional spices are necessary to all kinds of foods. Spices representatively used are, for example, pala (nutmeg/mace), cengkeh (clove), and laos (galangal) which are native to Indonesia. It is likely that lada hitam (black pepper), kunyit (turmeric), sereh (lemongrass), bawang merah (shallot), kayu manis (cinnamon), kemiri (candlenut), ketumbar (coriander), and asam jawa (tamarind) were introduced from India, while jahe (ginger), daun bawang (scallions) and bawang putih (garlic) were introduced from China.[2] The reason why using spices is common in Indonesia is due to the tropical and humid climate. It’s very important that in order for the food not to go bad or sour they fried most of the food with spices in Indonesia. In addition, this also has to do with historical reasons as it was a common practice right from time immoral of using so many spices when making food.
Political
Indonesia’s economy is on the rise and thus seeing the country takes its rightful place as a major destination for foreign direct investment (FDI). Having previously been overlooked in favour of other countries in Asia such as India and China; Indonesia is now hard to ignore. The country is unique in many ways as the biggest, the largest Muslim majority country and the world’s third largest (albeit young) democracy.
Indonesia has undergone a political transformation since the upheaval of 1998 which saw the fall of General Suharto after 30 years of authoritarian rule. The country is now a vibrant democracy that is continuing to strengthen its political structures and deepen the empowerment of the populace. However, despite the various setbacks; the country remains on a stable track while fully acknowledging its political flaws.
From this long term perspective, investors can have confidence in Indonesia’s stability and its political system as they will continue to strengthen in the decades to come.
Nevertheless, the country faces many challenges ahead of itself in securing the business environment for investors and sustaining economic growth. Core issues of corruption and excessive bureaucracy are still discouragement for any investor while unqualified human resources and poor infrastructure are restraining GDP growth from reaching the levels being seen in India and China. However, slow but steady steps are being taken to address the aforementioned obstacles.
In the summer of 2012, Indonesia announced that it was reducing the number of ports that would be open to the entry of fruits and vegetables. As a result Indonesian imports of fresh produce have plummeted by 29.7%. It is also mandatory for foreign companies who want to sell their products in Indonesia to appoint an Indonesian agent or distributor pursuant to Ministry of trade (MOT) Regulation No. 36/1977. In 2009, Indonesia raised rates on a number of goods that compete with locally manufactured products such as electronic products and a wide range of agricultural products including milk products, animal or vegetable oils, fruits juices, coffee, and tea. On 1st September 2010, the Indonesia National Agency of Drug and Food Control (BPOM) announced that it would modify enforcement of its labelling policies and require that all processed food and products entering Indonesia must be fully labelled in Bahasa language. This requirement has the potential to seriously disrupt foreign food export to Indonesia.
Attitude towards high end cuisine
High end cuisine is an exclusive way of cooking, which not every restaurant is capable of.
Over the past few years, manufacturers and restaurants operators have recognized that ‘artisan’ has become another term for ‘quality’. This way of cooking evokes small producers making traditional foods by hand, treating these products as a craft and putting great care into the result. Larger high end cuisine producers are able to hold the meaning of artisan with rustic-looking products, distinctive ingredients, unique cooking methods and stories that connect products to consumers. [3]
Several segments can be given of artisanal high quality food:
- Local & Seasonal Eating — Many artisans source their ingredients from nearby farms or grow their own, making a concerted effort to only use what’s available and in season to create a high quality, fresh-tasting product.
- Homemade/Authentic — Artisan foods give consumers sustenance with a story featuring products that are more authentic and less conventional. For consumers it’s as much about nostalgia as it is about security in knowing they are feeding their families quality cuisine.
- Flavor Adventure — Modern day artisans specialize and innovate on the traditional, producing savory and exotic ice creams.
- Consumer Engagement — Like modern street food vendors, artisans make process part of their product, offering consumers a window into the traditions of the past.
- Going Green — The current wave of artisan food makers is making the environment a priority, employing business strategies that minimize waste and negative impact on the earth. Reusable containers, compostable packaging and other eco-friendly practices allow consumers to be socially responsible while also enjoying an excellent product. 1
These segments are a headline of the ways there are in artisanal high quality food cooking. However, every country has its own culture and its own inhabitants and every top restaurant has its own mission and vision.
As you can see, France has 26 top restaurants with three stars and The Netherlands has 2 top restaurants with three stars. This difference is large, but that has to deal with culture and attitude of inhabitants. Because, French are proud of this part of their culture, they love to cook and to talk about food. They take their time for cooking and are willing to pay a lot for a good dinner. Figure 3.2
The Dutch are different, because they have another culture, they like food, but not as much as the French. Dutch do not talk a lot about food, rather they focus more on daily things, such as the weather. These culture differences are important to see what kind of attitude people have towards high end cuisine.
Attitude towards high end cuisine in Indonesia
In Indonesia high end cuisine is very special, because Indonesian people see it as a special and artistic way of cooking. In a top restaurant with three stars you will be seen as a real king or queen. You do not have to do anything, not even pulling up your own chair.
Another aspect is that these restaurants are expensive; you pay for food, service and quality. You get a very good quality and service for your money. Most of the upper-level of the society can afford to eat in such a top restaurant, so the rich people are more related to these restaurants, because they have the money to afford it, because the majority of the population in Indonesia is very poor.
This is not everyone’s culture, because everyone has another opinion and view of high end cuisine. However, the general attitude towards high end cuisine in Indonesia is that this way of cooking is more related to the rich and famous, because the majority of the population in Indonesia is very poor. Eating in such a good restaurant is seen by the Indonesian as a special occasion, special treatment.
Cultural differences
In order to do business in a different country one has to be aware of that country’s culture, and how it affects the society’s values. Hofstede’s cultural dimension theory is perfect in this regard as it allows you to compare cultural values between countries and thus make working with individuals from different countries much more effective with a promotion of cultural sensitivity.
In this report the model is used in order to make a clear comparison between Dutch and Indonesian culture. Providing more information about the Dutch culture would prove less significant to the end user of this report, therefore, about more attention will be given to the cultural aspect of the Indonesian market.
Index
|
Netherlands
|
Indonesia
|
1 PDI
|
38
|
78
|
2 IDV
|
80
|
14
|
3 MAS
|
14
|
46
|
4 UAI
|
53
|
48
|
5 LTO
|
44
|
n/a
|
Source: geert-hofstede.com Table 3.5
1. Power distance
This dimension deals with the acceptance and expectations of less powerful members of institutions and organisations in the country of an unequal distribution of power. In contrast to the Netherlands (38), Indonesia scores quite high (78) in the power distance. What is typical for Dutch working environments it that managers are easily accessible and are on a first-name basis with their personnel. The power is decentralised, people dislike control and while independency is favoured, superiors will still rely on the experience of their subordinates.
In Indonesia these power divisions are quite different, power is relatively centralised, superiors aren't quite as accessible to the people working below them. Less powerful members of an organisation or an institution are heavily reliant on their superiors to tell them what to do. This aligns with the vast social differences between the richer and poorer social classes in Indonesia.
2. Individualism
This score deals with the manner of individualism in countries, the degree of independency of a person and the integration of an individual in groups. In countries that score high in this regard a person’s interests lie with expressing himself as an individual and look after only themselves and direct family. In countries that have a low score, a collectivistic society dominates.
Indonesia scores low on Individualism, which means it’s a collective society. Family is extremely important in Indonesia as people live close to their extended family as opposed to the Netherlands where people tend to live only with their nuclear family. It is mandatory in Indonesian culture for a man to formally meet the parents of a woman before courting her. This is important because the family will most likely be the most important thing in the world to that woman.
This bond to family can also be witnessed in the relationship between children and their parents. Children are expected to make their parents’ life easier and to take care of their parents when they get older which differs completely from the Dutch custom where the children move out of the house and move their elders to a home when they can’t properly take care of themselves anymore.
3 Masculinity as opposed to Femininity
This dimension does not deal with gender differences specifically as one might assume at first, however, it actually deals with the way people work and are motivated within a society. A masculine society (high score) shows a society where competition, achievement and success are important. These values start during early education and are prevalent throughout life. Someone living in a masculine culture will strive to be better than his/her subordinates. Opposed to this is the feminine culture where quality of life is more important, and it is less desirable to stand out.
Indonesia scores a 46, compared to the Dutch score of 14. This indicates that Indonesia is low-masculine but not as extreme as the Netherlands. It is notable that Indonesia does not share the heavy work-related competitive attitude prevalent in other Asian countries. Instead equality is important in working environments. Status symbols are important but they are not as important as means of motivating people as they are in more masculine countries. The position they hold is more important to them. With this said one should keep the concept of ‘gengsi’ in mind, it is an image that has to be maintained in order to impress others and create some sort of status.
4. Uncertainty avoidance
This score deals with the anxiety caused by not knowing the future and the way the society deals with that anxiety. It is noticeable that the Netherlands and Indonesia have scores that are quite similar. Countries with a high score on uncertainty avoidance will try to remedy this by invoking strict and orthodox codes of belief and behaviour. There is a tendency to have many rules and laws even if these aren’t uphold well.
People tend to be busy with work and value punctuality and precision. Because people who live in countries of high uncertainty avoidance are caught up to their own orthodox way of life they might be intolerant to new ideas, behaviours or innovations. Indonesia has a medium-low preference for uncertainty avoidance; an example of this is the separation of one internal and external self. Following this rule the people of Indonesia often separate their emotions during work. If they are upset they won’t show it whilst working and often keep on laughing and smiling. They also have a strong diversion for being the bearer of bad news or criticizing feedback.
When conflict arises they prefer to invoke a third party intermediary. This allows for multiple views to be shared and prevents a loss of face. As a means of securing their job and thus their future as most Indonesians are primarily focused on making their boss happy and showing they are a valuable asset.
5 Long term orientation
This dimension deals with a society’s view of future and in what way their actions are focused on long-term or short-term results. The Dutch score of 44 indicates a slight preference to short-term orientation. This indicates a slight social pressure to keep up or remain ahead of one’s neighbours and a relatively mild tendency to save money for a rainy day. Short-term oriented countries often exhibit great respect for traditions and its members are generally impatient and wish for quick results.
Information about this dimension in Indonesia is lacking, but because family is really important it could be stated that Indonesia is a short-term orientated country because short-term oriented countries tend to believe family and the conservation of traditions are important. Looking at the other values associated with a short-term orientation (preservation, a focus on positive interactions and a low tendency for saving up money) and how prevalent they are within the different Indonesian sub-cultures one can assume that Indonesia would have a low score in this dimension, approximately between 20 and 30.
Indonesian image of Holland
First of all it is important to know that there is a clear separation between poor and rich in Indonesia. The Indonesian and the Chinese Indonesian, the Chinese Indonesian enjoys a higher social status and in an economic perspective they are doing better. Our target group will probably be in this part of the inhabitants, the Chinese Indonesian Inhabitants. The average Indonesian does not have much interest for ‘western’ food, they prefer their own food. They have a strong preference for traditional food and this traditional food can vary greatly in different regions of Indonesia.
A lot of spices are used in their dishes and the dishes are mostly very spicy. The Chinese Indonesian will be more open to try out western food. Indonesia has been a colony of The Netherlands for a long time. In that period The Netherlands has been running the spice trade in Indonesia, they traded the spices with a ship on a special sea area this was/is called ‘the VOC’. However there are not many influences in the Dutch cuisine of this period in The Netherlands
Some Indonesian people think that our food has not much flavour/taste, especially when you compare Dutch food with Indonesian food. The high cuisines in the Netherlands are mostly ‘art pieces’ but the taste is not so overwhelming. The taste cannot be compared with how it looks this because it looks like art but the taste does not match with this image. Another point they do not like is the variation as the food tastes in general is quite the same. The food is tasty and not more. They are not able to say that the Dutch high cuisine is delicious. The Dutch high cuisine looks beautiful which is appreciated. Dutch food is all being found salty. There is too much salt integrated in our dishes.
Asians/Indonesians are having ‘stereotypes’ about Dutch food. But Dutch food is not very famous in these countries. One stereotype: the Netherlands is the country of the potatoes. Dutch people use a lot of potatoes in their traditionally dishes. An example of these potatoes dishes are ‘Zuurkoolstamppot’ (sauerkraut mashed with potatoes) or the ‘Andijviestamppot’ (endive mashed with potatoes) or the ‘Boerenkoolstamppot’ (cabbage mixed with mashed potatoes), otherwise they tend to eat boiled potatoes with vegetables and meat and unforgettable the sauce (jus). Vegetables which are very famous to eat with boiled potatoes are (boiled) cauliflower and (boiled) Brussels sprouts. Asian and Indonesian people think the food is tasteless and very similar to each other.
Another stereotype is the Dutch cheese. Dutch people ‘always’ eat Cheese with every meal throughout the whole day. Dutch cheeses are very famous all over the world. Only Asian and Indonesian people in general do not like these Dutch cheeses, due to the integration of salt in the cheese they do not like salt very much.
The remaining Dutch food is the soup such as pea soup especially famous during the winter months and brown bean soup. These soups are a fulfilling meal thanks to the meat and vegetables which has been integrated in the soup.
Dutch people eat a lot of fish and also fish which is not cooked such as ‘haring’. You also have the fast food shops where you can buy fast-food for example fried slices potatoes, hamburgers and the famous frikandel and kroket. This typically Dutch food is not very tasteful according to Asian people if they want to try it al. [4]
5. Meso analysis
Consumer market segments
There are many kinds of variables to divide a big whole customer market into segmented markets. For example, there are population statistical variable, physical variable, purchase situation variable, and so on. Among these variables, the most important variable to segmentalize consumer market is population statistical variable, especially age and economic power. In other words, customer market is divided by age and people’s income. The reason why these variables are important is that what people eat, buy to eat and go out to eat depends on their age and income. Such as, the younger like fast-food more than the older. The richer go out to eat more than the poor. Moreover, the Purest which we want to sell in Indonesia is the cookbook about high-end culinary cuisine. Therefore it is important to find proper target market which is nice to sell our product among segmentalized consumer markets by economic power.
According to McKinsey’s research[5], it tells about seven distinct segments of Indonesian consumer by age and rich diversity of consumers across geography and socioeconomic status. These are seven distinct segments; Pragmatic strivers, Middle-aged conservatives, Middle-aged optimists, Frugal middle class , Virtuous Well-offs, Emerging well-off youths, Well-off modern adults. Below figure 1 is easy to understand these segments. McKinsey divided the age into three parts and economic power into three levels so there is a 3 x 3 matrix.
Figure 4.1 Seven distinct segments of Indonesian consumer by age and rich diversity.
Source : Mckinsey consumer shopper insights Indonesia study, 2011
Figure 4.2 Percentage of seven distinct segments
According to Mckinsey report, first of all, pragmatic strivers make up 12 percent of the surveyed group. This segment is the lowest earners; they have little money to spend. They think the definition of success is being rich and having a high social status. These consumers usually go shopping in traditional mom-and-pop stores.
Second group is Middle-aged conservatives who are in their 30s and 40s. This segment makes up 17 percent of the surveyed group. They live mainly in the biggest cities. This segment is conservative consumers. And they worry a lot about health and safety. In addition, they like going shopping and are very brand oriented. Their financial situation is similar to the middle-aged optimists, but they are much less positive. These consumers prefer shopping in wet markets and mom-and-pop stores.
Middle-aged optimists make up 16 percent of the surveyed group. These consumers are in their mid-thirties to forties. Although they earn middle level of income, they are the most risk seeking of all segments. This segment is "small town" consumers trying to behave like the richer in big cities.
Next segment is the Frugal middle class. It takes 14 percent of the surveyed group. These consumers are older and live in midsize cities in. When consumers in this segment make decisions to buy something, they depend on friend’s opinions of product quality. And also they do not want to waste money when shopping. These consumers are most likely to price hunt and have no preference for a type of channel, as long as the price is right.
Fifth segment is Virtuous well-offs. It makes up 14 percent. This segment spans all ages and is found mainly in Jakarta, Bandung, and surrounding areas. This segment includes professional workers with middle-high income and spending as same levels. They only buy items they really need, don't like shopping in general, and won't reward themselves through materialistic means.
Well-off modern adults make up 13 percent of the surveyed group. These consumers are mostly professionals living in urban areas earn high incomes. They believe that social status and wealth are important. They are quick to adopt new trends and try new products. They are active shoppers, visit malls frequently, and buy international brands, shopping is like a hobby to them.
The last segment is Emerging well-off youths, made up 14 percent of the surveyed group. They are very similar with well-off modern adults; the only difference is they are younger. They too think that being successful means being rich.
Among these 7 distinct segments, the target segments where to sell purest are 5, 6, and 7 segments, that is Virtuous well-offs, Well-off modern adults and emerging well-offs. They have enough ability of spending money to have fine dining. And also they like showing off their wealth so cooking fine dining is good way for them.
Competitors’ analysis
The uniqueness of Indonesian cuisine has been influenced by geographic and cultural diversity, together with a long history of visiting foreign merchants and colonists, but still to a greater extent it is unknown to the outside world with the possible exception of the Netherlands. Due to its richly-flavoured with spices, herbs and other seasonings, so many cookbooks have been written on the Indonesia cuisine by well-known chefs and authors. In their books, each author has come up with distinctive ways which he or she felt was the best in preparing the cuisines. This has made it a bit complicated for the ordinary customer when it comes to choosing which one of the numerous cookbooks in the market. It is also worth noting that the prices of these cookbooks ranging from $20 to $ 70 are quite cheap when compared to other cookbooks in Europe or North America. Besides, many of these cookbooks have stood the test of time. It will take an extra efforts and efficient marketing strategies for a new cookbook to find a place in the already saturated market. The descriptions of ten of the most popular cookbooks in the Indonesian market are thereby given below:
One of the amazing features of this book is that the authors Christina Sjahir Hwang and wei-chuan combines within a single cookbook, the cuisines from three different countries. This gives the users a wide range of diverse cuisines to choose from. No wonder the book has stood the test of time since its publication over a decade ago. However, the cost of the book is quite high when compare to other similar cookbooks. It sells for $62.50.
In a step-by-step manner the author explains over 300 recipes from Malaysia, Singapore, Indonesia and Philippines. Over 1200 photographs are used in explaining how to make the different cuisines. The book is complete guide to these exotic cuisines. It cost $22.65
However, after much search on the internet, we couldn’t find any cookbooks on non-Indonesian cuisine in the Indonesian market. Based on this information, one can come to conclusion that any cookbook that discusses foreign recipes will have to compete only with the Indonesian cookbooks, and since the cuisines are quite different the foreign cookbooks will have an edge over the local cookbooks.
Five forces porter
Threat of substitute products
The threat of substitute products is not high for the high-cuisine cooking book “PUREST”. You can say that the citizens of Indonesia do not use such cook-books because they are very poor. This book is made more for people who love extraordinary cooking and cooks and everybody else who is interested in this book. This book is not a standardized product; rather it is for a niche market. There are some substitutes; firstly recipes books which are written by Indonesian people/cooks this recipe books can be useful for the citizens of Indonesia. For example a good substitute in Indonesian cooking, Satays, Sambals and more by Dina Yuen. Secondly, there are also Indonesian famous cooks who write high-cuisine cook books. For example the cookooks “Feast of flavours from the Indonesian kitchen” which cost ($15) and “Bali unveiled” which sells for ($30) by Heinz von Holzen. Heinz is a chef and restauranteur at Bali. His specialty is the Balinese cuisine. This is also cookbook like “PUREST” and he tells his view of cooking and his techniques. So this is a good substitute, however, the only big difference between the books it that the books of Heinz von Holzen are based on the Indonesian/Balinese cuisine and the books “PUREST” is based on the Dutch cuisine with the local herbs and spices.[6]
Threat of new entrants
The threat of new entrants is not really high in Indonesia. There are some very good cooks and restaurants and they have their one way of cooking. They eat dishes with a lot of spices and their dishes can be very hot and spicy. Indonesian food is becoming more popular in western countries; however, this does not happen the other way around. Western food is and probably will not become popular in Indonesia. Nevertheless, the threat of new entrants in Indonesia can become high in the nearest future. One of such countires is Australia which trades a lot with Indonesia. Both countries trade especially in food. With that said, new entrants from Australia are also possible. They can export cookbooks like ‘PUREST’ but then with Australian food in it.
Intense rivalry among existing players
The intensity of rivalry among existing players is not to be found through desk research. Probably a big competitor is Heinz von Holzen. He has cookbooks which are a bit similar to “PUREST”.
The book cost in the Netherlands about 75 Euros. In Indonesia it will cost probably about $70 or less which is equalavent to about 55 Euros. The value of the book there will be lower, otherwise the book will be seen as too expensive.
Bargaining power of suppliers
The bargaining power of the suppliers is low for the more expensive books. They do not have much power on the market. Indonesian people are mostly eating ‘outside’ and do not cook much at home. Except Indonesian who are poor because they do not have the money to eat in a restaurant. Thus they do not have money to buy books or cookbooks.
Bargaining power of buyers
The bargaining power of buyers in Indonesia can be relatively high. The Indonesian consumers are mostly eating outside the door. There are a lot of warungs (relatively ‘small’ restaurants) and Warung kaki lima (cartst) and foodcourts where they eat. The Indonesian people who eat at home are from the kampung (suburbs). They eat at home because they don’t have money to eat somewhere else. Indonesian people work mostly from 7 o’clock in the morning till ten o’clock in the evening. They don’t have even time to cook. Office personal do not work this long so they will have time to cook but also they eat mostly outside and Indonesian people snack a lot. They do not have three big meals as in the Netherlands. For the top cooks and restaurants it could be interesting to see and read the view of Jonnie and Thérèsse Boer, they can use this view in their own dishes and they could replace the Dutch regional spices for the Indonesian regional spices. This could be very interesting in their dishes and recipes.
Distribution channels
Thousands, millions and billions of products are being sold in the world today. Every product is different and has its own characteristics; likewise, the promotion and distribution channels are different. The high end quality culinary book will be promoted via other distribution channels, than for example a television. Because, a television has other characteristics, another target group and the images are different.
The book tells a story about taste and (r) evolution. The (r)evolution is about his own unique taste
|
The book has 424 pages.
|
More than 200 recipes, 50 recipes written in poetry and pictures.
|
The author interviewed important culinary professors about different tastes.
|
The suppliers of his business/restaurant tell their story.
|
Thérèse (Jonnie’s wife, hostess of The Librije) tells something about the taste of wine.
|
The view of Jonnie about herbs in his own way.
|
Table 4.1
According to this information you can see that it is not a normal cook book, because it tells the story about their specialties, the cooking, wine, herbs, recipes and lot more. One of the special things about this book is that the suppliers and other culinary professors tell their story about cooking and working with The Librije. Jonnie and Thérèse tell about their passions and how they work with it, how they improve themselves every time and their views about running a top restaurant.
This high culinary book is special, so not every distribution channel is suitable for this product. You have to make some requirements for choosing the best distribution channels for the product and then you can chose which distribution channels are most suitable.
Requirements for choosing distribution channels:
|
1. It must have a relationship with cooking or food, but not the ‘normal’ food, cooking.
|
2. A relationship with having an own restaurant and being a top cook.
|
Table 4.2
These two requirements are important to know, because not every distribution channel is suitable for this kind of product, so by choosing the right distribution channels, you have to keep these two requirements in mind.
Distribution channels
Indonesia differs greatly from The Netherlands. You ought to know what the most important promotion/distribution channels are. In Indonesia, there are three main promotion/distribution channels, such as the television, the newspapers and the magazines. [8] To keep this information in mind is necessary, because in Indonesia these three main channels are mostly used. The product is a high culinary cookbook, so therefore, the available distribution channels will be explained and in the marketing communication report, there will be a chapter of which distribution channels will be chosen.
Internet (web shops)
Over the past few years, the number of internet users in Indonesia has been on a dramatic rise. [9] So this means that more and more Indonesian inhabitants are using the internet. More Indonesian people are buying on the internet, so web shops will be a good distribution channel, for example: websites that sells books. Also most Indonesian people are using Facebook which makes it possible to reach a lot of potential consumers (prospects).
The book is specialized in high end quality culinary cooking, so the book can be promoted or sold in top restaurants that are able to cook at a very high level. Most of these restaurants are on the big islands of Indonesia, for example Bali. This can be a good option, because the professional cooks can explain and introduce the book.
This distribution channel is important, because all kind of books are sold in a bookshop. The consumers who want to buy a book can go to a bookshop to get it, still, the internet is well used in Indonesia. The three main promotion channels in Indonesia are: television, newspapers and magazines. Internet is getting more important and mostly used. The bookshop has good opportunities for promoting the book.
Trade fairs
Trade fairs are a good example for contacting potential consumers and creating a relationship with investors. In Indonesia it is important to work with a distributor when you want to export a product to this country. [10] At a trade fair, you can demonstrate, promote and explain your product to all visitors. Exchanging business cards and building relationships is a good target for creating product and brand awareness.
Customer attitude towards fine dinning
[11]Fine Dining brings to mind all kinds of images, from crisp white table cloths to waiters in tuxedos. Fine dining offers patrons the finest in food, service and atmosphere. It is also the highest priced type of restaurant. While you will go a fine dining restaurant you will also pay out more money than you going a more casual restaurant, such as a diner or café.[12]
First of all, in recent days there are many changes of consuming pattern because of population shifting and high urbanization. Especially, the change of food consuming pattern is high. Indonesians’ interest moves from rice, fruits, and vegetables, such as traditional food, to fortified and functional food products
In addition, the more increasing people who earn high income, the higher interest about health and well-being. They have full of intention to pay money on good food and healthy food. Since they think the social status is important, they want to show off their riches by consuming high-end culinary cuisine. Despite the effects of economic downturn, the full-service restaurant sector has maintained reasonable growth through the extensive use of marketing strategies, such as price promotions, loyalty schemes or membership plans, and new innovative menu items. Therefore the preference of fine dining is always high in Indonesia.
Many Indonesian people think well-known brands and expensive products are of better quality comparing with other countries. Below figure 4.1 shows the amount of people who have strong faith in brands. In the food sector is same as well. Therefore, the characteristics of fine dining which is high price, made by well-known cooker and so on can make Indonesian consumer have positive opinion about fine dining.
Figure 4.3 Indonesian consumers place strong faith in brands and expensive products
In conclusion, Indonesian consumers, especially who have enough economic power to buy are positive on fine dining. However consumers who do not have any power to pay much money are not positive on fine dining because they cannot afford to pay expensive price on eating.
Main publications
Although Indonesia is a huge and promising market, the channels of getting goods or services to the final consumers play a significant role in the success of a business in Indonesia. It is worth mentioning here that there are very limited channels of distribution of cookbooks even though the Indonesian cuisine is so unique and so many cookbooks have been written on it. The most common distribution channel is the television. There are two main TV channels which run a TV show on the Indonesian cuisine. The first is the Indovision channel which is the largest Indonesia pay television channel. Indovision in conjunction with the Asian Food Channel (AFC) run a TV show known as the Culinary Masterpieces. Here master chefs are invited to talk about various Indonesian cuisines and how to prepare them. Some of these master chefs have written cookbooks on the Indonesian cuisines and therefore use the opportunity to talk about their cookbooks. Another TV channel which talks about Indonesian cuisines is the newly launched BBC Lifestyle (British Broadcasting Corporation). The channel offers inspiration for home, family and life programmes on home and design, food, fashion & style, to entertain, engage and inspire viewers.
Furthermore, Amazon is another main publication of the Indonesian cuisine cookbooks. A huge proportion of the cookbooks in Indonesia can be found and purchased through the Amazon. The summary of the cost of the cookbook, delivery cost and the book description are all available which make it easier for the customers to purchase.
Last of these distribution channels is the Internet. Virtually all the cookbooks are available on the internet. The main issue with this channel is that it is hard for consumers to find the link for a particular cookbook they are interested in especially if they don’t have afore knowledge about the cookbook.
Another channel is one of the three major promotion channels in Indonesia. Indonesia has several magazines, which most of them are cooking or dining related. [14] This is a good distribution channel and some magazines have articles about restaurants, food and dining, not just recipes or literature about food. It has to be more than that for the book “Purest”. Some examples of Indonesian magazines are: Femina, Jakarta Java Kini Magazine, Garuda, Ayahbunda Magazine and Now!, Jakarta Magazine. 4 The newspaper is also an option. However, this distribution channel is not suitable for the book “Purest”, because it is too general. Magazines are more focused on some typical subjects. There are two main newspapers: Kompas and Jawa Pos.
Outdoor advertisement (billboards)
Reaching a lot of potential consumers is important to get attention for the product. Billboards, posters and flyers are good examples of outdoor advertisement. Around every corner, there are several kinds of outdoor advertisements in Indonesia. 5 Promoting via outdoor advertisement is for creating brand awareness and that is important, because the brand is unknown in Indonesia. When consumers know the brand, they want to know what the product is and then it is possible to create a relationship.
Social participants
Indonesian interest in cooking
When looking at the people who cook in Indonesia you’ll notice they are primarily comprised of two groups: cooks in the wide variety of restaurants and women who cook for their families. It should be noted that a large number of inhabitants of Indonesia suffer some sort of poverty and it would be highly unlikely for them to spend money on an expensive cookbook which recipes require expensive ingredients. In general Indonesians use inexpensive ingredients to make a ‘peasant’s’ meal and add a variety of spices in order to make it delicious.
When not eating at home people eat in eateries. Dining places can be found everywhere, and they vary greatly with the disposable income of their customer base. From Warungs (cart-kitchens in the open air) to Padang restaurants, both are located all around.
There are no special networks or platforms dedicated to cooking in Indonesia, cooking is still a skill passed on from mother to daughter and largely contains only the traditional Indonesian food (which has been influenced by Chinese and Arabic cuisine).
Where do the cooking enthusiasts meet?
Over the last couple of years social media have started to take a big foothold in Indonesia, below you will find a brief explanation of the most common social media.
- Mig33: social media platform which is well-represented in countries with an emerging smartphone market. As of June 2012, 33 million Indonesians are signed up at mig33. What separates mig33 from other social media is the way it has dealt with the problems companies face in a country like Indonesia where credit cards and pay pal accounts are not widely accepted. Certain ‘merchant’ users buy credits directly from the company at bulk-prices and sell them among other users.
- Facebook: Indonesia contains over 47 million Facebook users, which ranks as the 4th most well-represented country on Facebook. It should be noticed that many Indonesians don’t own a PC, instead Facebook is accessed by many through the use of cheap smartphones. In 2011 only 7% of the populace had a PC, but 90% has access to a smartphone. Smartphones fit nicely in the Indonesian culture which is all about communicating with friends and family. It is common for an Indonesian to have all their acquaintances befriended on Facebook, thus it is not uncommon for someone to have over a thousand Facebook friends.
Because only a small percentage of the Indonesian people own a PC, there are not many online meeting places (save for the above mentioned social media accessed through smartphones). However like in the rest of the world, Youtube also has many Indonesians logging on. Finally there is Kaskus, a huge forum community in Indonesia.
The Indonesian people got rushed into the information age, most of them buy a smartphone as a sign of status but don’t bother trying to learn it the most effective way. A typical trait of this behaviour is the way they obtain their information, instead of first searching for a similar problem/request they will just ask their friends and acquaintances, often automatically assuming the information they receive is trustworthy.
These social media have become incredibly successful Indonesia for a couple of reasons, firstly the Indonesian people are very chatty, and they love catching up with each other and gossiping. Secondly they love a bargain, and these social media allow them to keep in touch with other people across a distance for no costs. New social media have always been successful in Indonesia, from the moment Friendster was first introduced it created a buzz, and when Facebook came out it got accepted throughout the nation making Indonesia the 4th ranking country on the social network within a few years. A creative use of social media could lead to a very successful marketing technique.
Offline Indonesians meet each other everywhere. They are nothing if not social. Cooking enthusiasts in particular are often found at the markets where spices and ingredients are sold. It’s a popular place to catch up on gossip while shopping together and discuss recipes.
6. Micro analysis
Consumer analysis
General information
The product is the book “Purest“. It is an exclusive book not just a cook book, it tells a story about taste and (r) evolution, the (r) evolution about Jonnie’s own taste. Below, you find the table that is also used in the distribution channels section. It gives a good view of the characteristics of the book “Purest”.
Characteristics of the book “Purest”:
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The book tells a story about taste and (r)evolution. The (r)evolution is about his own taste
|
The book has 424 pages
|
More than 200 recipes, 50 recipes written in poetry and pictures
|
The author interviewed important culinary professors about different tastes
|
The suppliers of his business/restaurant tell their story
|
Thérèse (Jonnie’s wife, hostess of The Librije) tells something about the taste of wine
|
The view of Jonnie about herbs in his own way
|
Table 5.1
The price of the book is 75 euros in The Netherlands, which means that this product is quite expensive. Not every Indonesian inhabitant can buy such an expensive product, 13% of the total Indonesian inhabitants live in poor circumstances. [15]
Requirements
When choosing a future consumer, it is important to know what kind of consumer it is, so what kind of requirements must the future consumer have? Because then you can investigate which target group is the best for the product.
Requirements:
|
The consumer must be oriented in special cooking
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The consumer wants to know more about high end culinary cooking
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The consumer is interested in getting information about having an own top restaurant
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The consumer wants to specialize or improve his own top restaurant
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The consumer want to know how the top restaurant business is
|
Table 5.2
Not all these requirements are important, which effectively means not every potential consumer must meet all these requirements, but it gives you a view of how the potential consumer should be like. The consumer must be interested in specialty cooking, because the product is not a normal cook book. The topic of the book is high end culinary cooking, thus when buying this book, the consumer should want to know more about this topic or wants to orientate himself.
It is possible that some potential consumers are good at cooking, so maybe they want to know how to start a top restaurant, or getting information about it. There are a few top restaurants in Indonesia and some potential consumers can come from this industry.
Maybe to improve or to specialize their top restaurants. Another option is that a potential consumer is interested in how this business works, they want to get information about it.
The potential consumers
So the product is a high end culinary cook book about a top restaurant. The topic of the book is not only cooking, but also about having an own top restaurant, about ingredients and about the history of the owners. This means that the potential consumers must be interested in high end culinary cooking. The product is expensive, so money is an issue.
The potential target group for the book “Purest” in Indonesia is: the Chinese Indonesians between the 25-54 years old, because this target group has the money to afford this product and are mostly interested in high end culinary cooking and food. This target group is the final consumer of the product, because they will use the product for themselves, so for the marketing report, the focus must be on this target group to get their attention. You can divide this target group in different groups you have the top cooks who cooks in top restaurants and/or hotels, or have even their own restaurant they could use the book for inspiration. Next to that you have the Indonesian young cook who did a education(abroad) in cooking, who can use it for inspiration as well but also for some recipes, probably they have not created their own dishes yet. Besides these two groups, you have the rich citizens who loves cooking and like to cook for friends and family. The rich citizen who loves cooking will use It for the ideas for high end culinary cooking they make something else then just normal cooking and they could use the view of jonnie for inspiration to use regional spices. All the different groups are interested in the book because of it is a special edition with specific information about regional spices and products and Jonnies view on cooking , it is also special because the book “PUREST” is awarded as the best cookbook in the world.
Motivations for buying
When buying a product, every consumer has motivations for buying. For example: I buy a new car, because mine is broken. This is a motivation for buying a new car. Every product is different, so there are millions of motivations for buying a product. This product is specific, related to cooking, food, history (r)evolution and having an own top restaurant.
Motivations for a Professional cook:
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Adapt some tactics which are explained in the book
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To get inspired by other cooks from other countries
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Table 5.3
Motivations for a person who did an education in cooking:
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To get an insight into a star qualified restaurant
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To get inspired to use regional products and spices in their own dishes
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To read more about how other cooks see their dishes and way of cooking and to learn something from them
|
Table 5.4
Motivations for a peron who loves cooking:
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To receive it as a gift from a friend
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To know more about high end culinary cooking in general
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To get an insight into a star qualified restaurant
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Table 5.5
These motivations are examples for buying this product. Every consumer has its own motivation, but these are main motivations. These motivations can be more specific for every potential consumer. The main reason for buying this product is to know more about high end culinary cooking and to get more information about a top restaurant with three stars, because that is the main subject of the book.
Every potential consumer can buy this book for his/her own reasons.
Name
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Abu Alatas
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Age
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37
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Gender
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Male
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Job
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Top cook in a top Indonesian restaurant on Jakarta
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Living status
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Abu has a wife and two kids. A boy and a girl. He lives in a ‘normal’ house.
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Education
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He hasn’t had an education when he was younger. He learned from the ‘field’. Later he followed several cooking courses.
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Way of cooking
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He cooks with Indonesian spices and he loves experimenting and creating new dishes.
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Importance of cookbooks
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He did not write a cookbook himself. But he does think that cookbooks are important because recipes subsist and for people who can’t cook without recipes it is very useful.
|
Attitude towards cookbooks
|
He thinks cookbooks are very important and in the future he wants to write one himself. He want to share all his visions on different dishes and dishes he ‘created’ himself.
|
Uses cookbooks himself
|
He uses cookbooks only for inspiration but he cooks with his ’heart’. He uses spices and vegetables which he thinks fit with each other. He optimizes the taste with it.
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Preferred purchase price
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He is willing to pay more for good books. He would pay up to 100 $ for a good cookbook.
|
Ad’s
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Won several prices for being such a good cook and for the lovely taste of his dishes.
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Table 5.6
Name
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Megawati Sukarnoputri
|
Age
|
25
|
Gender
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Female
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Job
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Office job and cook
|
Living status
|
She has a boy friend.
|
Education
|
She has done a kind of cooking school but she is working now to spare for her own restaurant.
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Way of cooking
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She cooks with passion. Megawati loves to cook, she cooks for the whole family. she uses a lot of Indonesian spices in here dishes
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Importance of cookbooks
|
She thinks that cookbooks are very important. She always cooks with cookbooks.
|
Attitude towards cookbooks
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She finds cookbooks very interesting. She uses them for good dishes. However she solely uses good cookbooks. She reads the views of the cooks and tries to use them herself.
|
Uses cookbooks herself
|
She uses cookbooks herself. She uses cookbooks for inspiration.
|
Preferred purchase price
|
She is willing to pay up to 75 $ for a good cookbook.
|
Ad’s
|
She participated in the program ‘masterchef Indonesia”
|
Table 5.7
Name
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Sari Barawantas
|
Age
|
51
|
Gender
|
Female
|
Job
|
non
|
Living status
|
Married and has four children.
|
Education
|
Non, she did courses in Business and cooking and graduated these courses.
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Way of cooking
|
She likes to cook as a ‘top chef’. She uses a lot of spices.
|
Importance of cookbooks
|
She finds cookbooks really important. She always uses them for finding inspiration but also good recipes and learning about food and spices.
|
Attitude towards cookbooks
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She loves cookbooks and does not like to cook without one. For example she thinks it is important to know with which spices you use for creating certain kind of taste.
|
Uses cookbooks herself
|
She uses always cookbooks and she has many of them.
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Preferred purchase price
|
If she thinks the cookbook is useful for her, she will buy it. Whatever the price may be.
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Ad’s
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Married with a very rich man. Does not need to work.
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Table 5.8
6. Conclusions
In this section we will process the most relevant and important information discovered in the various sub-sections of the report. Because the report is rather extensive just adding everything into one story might end up confusing, instead we have chosen to tackle each part in its own section.
We will start off with the conclusions drawn from the DESTEP research, information on a macro level that is vital for understanding Indonesian way of life in general.
Destep
The Indonesian population ranks the 4th largest in the world. Less than half of people live in urban areas and the rate of urbanization is increasing. Jakarta is an immense city and contains close to 9 million citizens. Therefore because of these things, it’s a great potential market. To add Indonesia to the export market would add an immense amount of potential customers. Indonesia has been enjoying a fabulous economic growth to the surprise of many. There are no reasons for this other than a strong domestic demand, availability of natural resources, a stable currency and efficient economic policies. Although, Indonesian is the most populous Muslim nation, yet its principles of governance are democratic, a good platform for foreign investments. Nevertheless, corruption among the government officials, high level of bureaucracy and poor infrastructures are some challenges Indonesia is facing at the moment. Poor families are often quite large and this affects the ways the meals are being prepared, namely very simple and they are always able to cope with the sudden arrival of guests. In the cities people eat often at streets, they snack on their way to work. Also, increase in education and internet usage encourages women to take active roles in the society. Lastly, religion plays a vital role in the daily lives of the Indonesians. Some meat and drinks are forbidden such a pork and alcohol, although they are not totally banned in the country, but caution must be taken when dealing with the eating habits of the various religious groups. The rate of using internet usage is quite high and the size of e-commerce markets is $4.1 billion in Indonesia. In addition there are many people who using facebook. Therefore it is a good way to market products online.The Indonesian climate is a tropical one and there is clear distinction between the rainy season and the dry season. The climate and flora allow for an incredible amount of spices to be grown. These have an effect on what the Indonesians eat, these factors definitely have to be considered.
Attitude towards high end food cuisine
Every culture is different and has its own characteristics, these characteristics deal with culture, taste, spices, sources and more in a high end cuisine context. In the report we aimed to collect as much relevant information as possible, which is summarized here.
The general attitude of high end cuisine in Indonesia is that this way of cooking is more related to the rich and famous, because the majority of the population in Indonesia is very poor. They see is as a special occasion, a special treatment, but it is an occasion for the rich, famous people. So in general, high end cuisine is in Indonesia more for the upper-class of society.
Which cultural differences are relevant
Cultural differences are the main cause for export ventures or international mergers to fail. This is why we researched the cultural differences between the Netherlands and Indonesia. First of all it should be noted that Indonesia is largely a Muslim country, and such it would be wise to check if the recipes in the book need to be adapted to the culinary demands that often accompany Muslim culture.
It should also be noted that there isn’t just one culture in Indonesia, because it is an archipelago many different cultures have developed separate from each other.
From Hofstede the Hofstede model can be concluded that Indonesians often don’t think deadlines are important, they’ll take the time they need. The Indonesians are a collective society and family is extremely important. The people are hard workers who aim to do their job well, but they need precise instructions in order to work.
How interesting would the book be in Indonesia
The book industry in Indonesia is quite different compared to the Dutch one. Citizens of Indonesia live more on the streets. They are used to eat outside, only the lower class citizens eat in all the time. The biggest part of the citizens, except office personnel and professionals, work from seven AM until ten PM meaning they don’t have even time to eat a meal at home. They eat on their way to work or back home or eat snacks between the work hours. It’s also important to know that in Indonesia a big difference exists between the rich and poor citizens. There is also a difference between an ‘Indonesian’ and a ‘Chinese Indonesian’. Chinese Indonesians more than often hold a better economical position and are more often found in business environments.
The lower class Indonesians don’t have money to buy a proper lunch outside, they will most certainly not have the recourses available to buy such a luxury book.
People that have to work hard to feed their families quite understandably can’t afford to buy an expensive cookbook and experiment with luxury cooking. The citizens who do have money eat outside and do not eat in often, they work a lot and do not have time to cook at home for themselves and/or their family.
Because Indonesia is rich of spices and herbs their food is really exotic they eat their dishes very spicy. For all these dishes there are several cookbooks. The cookbooks are mostly about dishes and some about the cooks view on cooking. But in general only people who love cooking or cooks and professional cooks would buy a book such as “PUREST”.
Consumer market segments
This section deals with conclusions drawn from research into the different types of consumers found in Indonesia.
According to McKinsey’s research, there are 7 distinct segments of Indonesian consumer by age and rich diversity of consumers across geography and socioeconomic status; Pragmatic strivers, Middle-aged conservatives, Middle-aged optimists, Frugal middle class , Virtuous Well-offs, Emerging well-off youths, Well-off modern adults. Among these 7 distinct segments, the target segments where to sell purest are virtuous well-offs, well-off modern adults and emerging well-offs. Because they have enough ability of spending money to have fine dining. And also they like showing off their wealth so cooking fine dining is a good way for them to do so.
Competitors
It’s important to map out the competitors, this section details in short the current situation of the market in Indonesia. Many cookbooks have been written by well-known chefs and authors on the Indonesian cuisine making the market over saturated. However, there are no barriers of entry to the market. It is important to state here that there are hardly any other cookbooks in the Indonesian market which talk about foreign cuisines. This will be an added first mover advantage for any foreign cookbook coming into the Indonesian market.
Distribution channels
Nowadays, there are a lot of ways of promoting and selling your product. The product is the book “Purest”, this is a cookbook with about high end quality culinary cooking and services. The most notable ways of promoting and selling it are listed here.
To promote such a product in an unfamiliar country is not easy. The most important places for advertising in Indonesia are: television, newspapers and magazines. You can reach a lot of potential consumers with these media. However, the internet is becoming more important in Indonesia. The number of internet users have increased over the past few years and with this information, it is to be said that this media is becoming more important for promoting new products.
Restaurants and bookshops are other available distribution channels for the book “Purest”. The book is about high end quality culinary cooking, so a restaurant could be a place for promoting the product as well as making it available for purchase. A bookshop is a good distribution channel, but the internet is slowly making it irrelevant. Trade fairs are important to build relationships.
Consumers attitudes towards fine dinning
This was researched because the book caters to a niche market, the Indonesian version of this niche market needs to be discovered in order to be succesfull. From our research we were able to conclude that in recent days there are many changes of consuming pattern because of population shifting and high urbanization.
In addition, the ever increasing amount of people with an high income, the higher interest about health and well-being. Many Indonesian people think well-known brands and expensive products are of better quality compared to other countries. Indonesian consumers, especially who have enough economic power to buy are positive on fine dining. In their opinion, the Western way of fine dining is different, because the Indonesian think that their food is healthier than food.
Main publications
Although clearly said in the report, we will repeat the most vital information of this section here. The conventional social media, the television is the major channel of distribution of cookbooks in Indonesia. However, as internet usage is on a drastic increase in Indonesia, many of the cookbooks can be purchased online. Amazon is another channel of distribution.
Social participants
When looking at the people who cook in Indonesia you’ll notice the group is primarily comprised of two groups: cooks in the wide variety of restaurants and women who cook for their families. It should be noted that a large amount of inhabitants of Indonesia suffer some sort of poverty and it would be highly unlikely for them to spend money on an expensive cookbook which’s recipes require expensive ingredients. In general Indonesians use inexpensive ingredients to make a ‘peasant’s’ meal and add a variety of spices in order to make it delicious.
When not eating at home dining places can be found everywhere, and they vary greatly with the disposable income of their customer base. From Warungs (cart-kitchens in the open air) to Padang restaurants, both are located all around.
There are no special networks or platforms dedicated to cooking in Indonesia, cooking is still a skill passed on from mother to daughter and largely contains only the traditional Indonesian food (which has been influenced by Chinese and Arabic cuisine).
Where and how do the participants meet
Indonesians are a social people. They often meet everywhere. The people mentioned in the previous section likely encounter each other during a trip to the local market where they buy spices and ingredients.
In addition to meeting each other face to face social media have made an incredible uprising over the last couple of years and Facebook and Mig33 are popular social media. They are mainly accessed by low-end smartphones, and are incredibly popular among Indonesians because they allow people to keep in touch even when not in proximity.
Other than the social media there is Kaskus, a very popular Indonesian forum where people can talk about all kinds of interests.
Potential buyer motivations
In order to find out who would buy the product you have to narrow down to what kind of needs the product caters. In this short section we will summarize what we concluded.
There are several potential buyer motivations for the book “PUREST”. It is a very specific book but at the same time for non-cooks it is also very large. You can find information in it about regional spices, but also about recipes, you can read about the vision of Jonnie and thérèse Boer about food and their dishes and how the will and use regional spices and products and why they do that. Considering this, there are different reasons one could have for buying the book;
For a Professional cook:
- Adapt some tactics which are explained in the book
- To get inspired by other cooks from other countries
For a person who did a education in cooking:
- To get an insight into a star qualified restaurant.
- To get inspired to use regional products and spices in their own dishes.
- To read more about how other cooks see their dishes and way of cooking and to learn something from them.
For a person who loves cooking:
- To receive it as a gift from a friend.
- To know more about high end culinary cooking in general.
- To get an insight into a star qualified restaurant.
Target group
The potential target group for the book “Purest” in Indonesia is: the Chinese Indonesians between the 25-54 years old. You can divide this target group in different groups you have the top cooks who cooks in top restaurants and/or hotels, or have even their own restaurant they could use the book for inspiration. Next to that you have the Indonesian young cook who did a education(abroad) in cooking, who can use it for inspiration as well but also for some recipes, probably they have not created their own dishes yet. Besides these two groups, you have the rich citizens who loves cooking and like to cook for friends and family.
answer main question
This product is a special book about the taste and (r)evolution of Jonnie and Thérèse Boer. It is an exclusive book and the price is relatively expensive. The market for this product in Indonesia is relatively small, because it’s a niche product. This is because, there are not many special cookbooks in Indonesia and it is a special product for the rich and high economic power inhabitants in Indonesia.
Promoting this product will not be easy in a country such as Indonesia. The mostly used distribution channels in Indonesia are: television, radio and magazines/newspapers. However, there are more options, for example: trade fairs, outdoor advertisement (billboard) and restaurant. Most of the inhabitants in Indonesia are Muslim and there are more different cultures, this must be taken into account when advertising and promoting the cookbook.
According to the research report, the Indonesian market is in some manner accessible to the book Purest, the interest in the book can mainly be found amongst the wealthier Chinese-Indonesian citizens and chef cooks/top cooks in restaurants and hotels. These target groups are to be found in Jakarta and Bali, because Jakarta is the most developed city and the business center of Indonesia and Bali is a touristic place, so there are a lot of good restaurants and hotels for example ; Hilton hotels.
7. Sources
Part A Macro:
- http://www.packagedfacts.com/Artisan-Foods-Culinary-2700356/ (10-02-2013)
- http://bbprod2.windesheim.nl/webapps/portal/frameset.jsp?tab_id=_2_1&url=%2fwebapps%2fblackboard%2fexecute%2flauncher%3ftype%3dCourse%26id%3d_21289_1%26url%3d (10-02-2013)
- http://www.frw.rug.nl/persons/groote/cursus/global%20village/websites/0506/Dutchcuisine/thedutch.html (13-02-2013)
- http://www.youtube.com/watch?v=dFtUbJvaU7U (13-02-2013)
- http://geert-hofstede.com/indonesia.html (07-02-2013)
- http://www.lexisnexis.nl/dutch/media/international-sources.page (20-02-2013)
- http://www.scmp.com/article/1074514/indesso-aroma-spices-local-and-international-business (20-02-2013) Article Annemarie for Blog!
- http://www.theinternationalman.com/restaurants/asia.php#hong-kong-michelin-listed-starred-restaurants-l (24-02-2013)
- http://www.ganeshabooksbali.com/bookstore.html#cooking (24-02-2013)
- www.worldofmaps.net (11-02-2013)
- https://www.cia.gov/index.html (11-02-2013)
- http://indonesiancuisinerecipe.wordpress.com/special-ingredient/ (28-02-2013)
- http://www.wallpapers-place.com/food/spice-collection-hd-wallpaper/ (28-02-2013)
- Jeffrey Brandes (Dutchmen originally from Indonesia) (07-02-2013)
Part B Meso:
- http://www.bol.com/nl/p/puurst/1001004011843814/ (22-02-2013)
- http://www.agentschapnl.nl/onderwerp/indonesi%C3%AB-promotie-en-reclame (22-02-2013)
- DESTEP – Technological (Research report) (22-02-2013)
- http://www.w3newspapers.com/indonesia/magazines/ (22-02-2013)
- Mckinsey Consumer and Shopper Insights Indonesia study, 2011 (25-02-2013)
- http://crushnewyork.com/post/13596562095/best-late-night-fine-dining-fine-dining-at-2am (28-02-2013)
- The Indonesian Consumer: Behavior, Attitudes and Perceptions Toward Food Products, Agriculture and Agri-Food Canada, 2011 (28-02-2013)
- André Nijland from Wavin (businessmen who works a lot with Indonesia)(03-03-2013)
Part C Micro and part D conclusions:
- http://www.indexmundi.com/map/?v=69&l=nl (26-02-2013)
[4] Information gathered from Jeffrey Brandes ( from origanally Indonesian) and Ji Min Chung( from South-Korean)
[5] Mckinsey Consumer and Shopper Insights Indonesia study, 2011
[9] DESTEP – Technological (Research report)
[10] Interview André Nijland (04-03-2013, Wavin)
[13] The Indonesian Consumer: Behavior, Attitudes and Perceptions Toward Food Products, Agriculture and Agri-Food Canada, 2011
This is the final report of group 16 Indonesia IBS2C.
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