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Asian business environment: Energy Drink in Indonesia - Research Paper Example

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Asian business environment: Energy Drink in Indonesia Name: Lecturer: Institution: Course: Date: Asian business environment: Energy Drink in Indonesia Introduction Monster Energy Drink Company was established by Hansen Natural in the year 2002. The management team of the company proposed an idea of introducing a new Energy Drink product in Indonesia that targeted the Indonesian consumers…
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Download file to see previous pages This product comes in different flavors and it contains vital vitamins and natural ingredients vital for boosting the health of human beings. Reasons for Selecting Indonesia for Introducing Energy Drink Indonesia is one of the countries with the highest population; hence they can offer adequate market for the Energy Drink product. The marketing research study carried out by the management team of the Monster Energy Drink Company discovered that tea is an imperative commodity and drinking tea has become one of the cultural aspects in many countries such as Indonesia. Tea has for a long time gained popularity and higher rate of tea consumption has been proven good for boosting health. For instance, tea is well known for increasing stamina, cholesterol reduction and detoxifications purposes (Euro monitor, 2012). Therefore, the introduction of the Energy Drink product in Indonesia was due to the need of offer a modern form of tea beverage, which targeted younger consumers who wanted to boost their energy. Moreover, Indonesia has the largest population and the extensive marketing research carried out revealed that Indonesia will be the best energy tea market (Instate Pty Ltd., Australia. Dept. of Agriculture, Fisheries and Forestry, 2004). The research further indicated that Indonesia being the largest religious nations including Muslim across the globe, launching this product will enable the company to become successful. There is a large market potential for the Energy Drink product because it is the largest economy in Southeast of Asia. Understanding the targeted market or carrying out market analysis before introducing any new or innovative brand product is crucial. This is because it will enable the company to understand the psychological behaviors of customers or their consumption behaviors; hence enabling the company product to thrive effectively in the market. Thus, the main aim of the company is to enter into the Indonesia market; thus attract the market share while delivering a high quality and innovative brand image. General Environmental Analysis in Indonesia The internal and outside atmosphere affects the commercial environment in diverse ways. The external analysis focuses on the threats and opportunities that exist in the Indonesian environments and the ways these can be influenced by varied factors such as social, technological, political and environmental aspects. To begin with social aspects, Indonesia has varied social aspects that can influence the marketing of Energy Drink products in the market. Therefore, understanding different social behaviors of the Indonesia will enable the company to respond effectively to any threats; thus improving business performance. The social economic trend may impact the business activity of the company such as unemployment levels due to increase population rate, disposable incomes, culture and lifestyles (Gregory et al, 2012). However, understanding these aspects will enable the company to respond well; thus enabling the Energy Drink to thrive effectively in the Indonesian market. Technology changes across the globe have enabled many companies to improve the business performance and generate higher revenues. Energy Drink is one of the companies that will ...Download file to see next pagesRead More
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