INDONESIA OUTLOOK 2011

THE BIRTH OF CONSUMER 3000

THE
RISE OF
MARKETING 3000
 INDONESIA OUTLOOK 2011

THE BIRTH OF CONSUMER 3000

RISE OF MARKETING 3000

THE THREE PARTS

I. THE EARTHQUAKE
II. THE IMPACT
III. THE STRATEGY
 Part I

The
Earthquake
“Masyarakat Adil dan Makmur” is
Not A Dream Anymore
Let us look back a little

KRISIS 1998
Comparing with Chindia

SAME PATTERN
What happen now?

GDP Per Capita Indonesia

What happen when we reach GDP

Per Capita $3000?

Source: International Monetary Fund, 2010

 Reaching the $3,000 per capita GDP level will result in
“accelerated development”. South Korea experienced
surging economic growth for 11 years after achieving that
level.
Source: Indonesian economy with a US$3,000 per capita GDP by Cyrillus Harinowo Hadiwerdoyo
 In 2002, China set a target to achieve a per capita GDP of
$3,000 GDP by 2020. Apparently the Chinese economy
achieved that level not in 2020, but in 2008-2009.

Source: Indonesian economy with a US$3,000 per capita GDP by Cyrillus Harinowo Hadiwerdoyo
 The Economist, February 12, 2009
Special Report: The Middle Class in Emerging Countries
What will happen
next?
Some signals...
A New Wave of Demand!!
Traffic Problem: When supply can
not meet the demand
Everything starting to look
affordable
Why airport are so crowded ?
Flying solo in the upper segment
People need a place to talk!
People need a place to talk!
Mall is not a fancy place anymore
 All of these changes will
trigger:
“The birth of Consumer 3000”
 Part II

The Impact
CONSUMER
REVOLUTION
THE BIRTH OF
CONSUMER 3000
How is Consumer 3000?
 Basic needs are over!!!

Actualization
Needs
love, acceptance, affiliation
Esteem Needs
Self-respect, social status
Belonging Needs

Food, shelter, sex, sleep

Basic Needs

Maslow’s “Theory of Human Motivation”

Consumer 3000

More Consumption

More Modern/Global Minded

More Educated/Knowledgable/Civilized

More Value-Oriented

More Mobile

More Technology Savvy

More Environmentally-Concern
Road to Consumer 3000:
We have seen the trend
already
The Nexian BOOM:
The Rise of Hyper Value-Consumers
Nexian has the third biggest market share in Indonesia with 7%

It’s happening because Value-Oriented Customer is growing

Source
Fast Food Trend: Goes Outside The Mall

Not just a place to eat, but a place to talk and play

24 Hour Retail Evolution

A whole new concept of 24 hour retail: “Gathering spot”

Modern Channel Is Going to Grow

Modern channel in becoming more favorable

Modern Channel Is Going to Grow

Source: Nielsen
E-commerce Will Thrive: Bhinneka.com

Transaction through e-commerce is increasing

Social Media Becomes a Basic Need

Who does not have a social media account?

Social Media Becomes a Basic Need

Fenomena social media di Indonesia, dengan jumlah

26.000.000 lebih, Indonesia menempati peringkat ketiga
negara dengan jumlah pengguna Facebook terbanyak di
dunia, di bawah Amerika Serikat dan Inggris. Indonesia
juga menempati jumlah pengguna terbesar Twitter di
Asia. Jakarta ibukota negara Indonesia bahkan telah
diklaim sebagai ibukota Tweet di Asia, bukan karena
jumlah pengguna tetapi juga kontribusi Trending Topic di
Twitter dari Indonesia.
Source: retrieve from http://www.financeindonesia.org/content.php?279-Social-Media-World-Forum-Asia-2010
People Are More “On-the-Go”

People are more busy, more interactive, more mobile, and of

course more productive.
People Are More “On the Go”
The need for “one-time consumed” product (packaging) is
increasing

Family Individual
SIze SIze
Private Labels Will Be Soaring

People are more value-concious

More Disposible Income Means More Money
to be Invested
Franchising is the way to invest their disposible income
More Civilized, More Educated
Ilegal software and movie DVD will decrease... and movie theatre
will surge again
More Civilized, More Educated
 Part III

The Strategy
 What kind of changes
happened in the market
segmentation?
Changes in Market Segmentation

Segmentation “before 3000” Segmentation “after 3000”

More civilized, Brand

Knowledgable, and minded
Modern consumer
Upper

More Buying
Middle Value
Power consumer

Lower Price-minded
consumer

Demographic Psychographic
Segmentation Beyond 3000

Brand-minded
Consumer

“Reasonable” – Value Consumer “J-Co Lover”

“Critical” – Value Consumer Value consumer

“Hottest segments”

“Functional” - Value “Nexian Hunter”

Consumer

Price-minded consumer
Segmentation Beyond 3000 – several
examples “Reasobale” value brands

“Critical” value brands

“Functional” value brands

What happen with the new consumer?

More civilized, Knowledgable, Modern

Beyond
3000 More Buying Power
Market
What to target?

Brand-minded Consumer

“Reasonalbe” – Value
Consumer
“Critical” – Value Consumer

“Functional” - Value
Consumer
Price-minded
Consumer

Priority #1
Priority #2 ... etc.
Know Your Strategy

Generic Strategy Generic Tactic

RATIONALIZE YOUR • Global Image, Local Price

“Reasonalbe” Value
BRAND • Unique Differentiation
Consumer with Reasonable Price
(Benefit is The King)

• Be Creative, Deliver More

INNOVATE YOUR VALUE
“Critical” Value Consumer • “Higher benefits, lower
(Value is The King) cost” Mindset

“Functional” Value MAKE YOUR PRODUCT • Be a Smart Imitator;

Consumer AVAILABLE Be a Smart Follower
(Price is The King) • More Function, Less Brand
“Reasonalbe” Value Consumer
• Global Image, Local Price
“Reasonable” Value Consumer
• Unique Differentiation with Reasonable Price
“Critical” Value Consumer
• Be Creative, Deliver More
“Critical” – Value Consumer
• “Higher Benefit, Lower Cost” Mindset
“Functional” Value Consumer
• Be a Smart Imitator; Be a Smart Follower
“Functional” Value Consumer
• Be a Smart Imitator; Be a Smart Follower
“Functional” Value Consumer
• More Function, Less Brand
 Thank You
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