Introducing Paulaner Beer in Indonesia (Demographics sections) - Research Paper Example

Introducing Paulaner Beer in Indonesia (Demographics Section) Paulaner is a German alcoholic drink introduced to the market by the Minim friars in 1634. While the beer has been dominant in the market, it has had its equal share of challenges when entering some markets. This paper seeks to discuss the stumbling blocks that Paulaner Brewery may have when introducing the beer in Indonesia. The paper will further look at how and why these challenges would affect the company in the country.Stumbling Blocks that Paulaner Brewery may experience in IndonesiaAmong the challenges that Paulaner Brewery would face in Indonesia is lack of a sustainable market.

Home to the world’s largest Muslim population, the issue of alcohol consumption in Indonesia has raised debates in the country for a long time with the current debate revolving on the possibility of banning alcoholic drinks in the country. Although the rate of alcohol consumption in the country remains relatively high, strong Islamic beliefs held by most Indonesians has made it difficult for investors to invest in alcoholic beverages. Consequently, most alcoholic beverages consumers in Indonesia are tourists.

However, some Indonesian youths engage in alcohol drinking although this is mostly restricted to urban areas (Grant 98).The country’s ban on alcohol advertising on media would also mean that Paulaner has limited platform on which to market its products. As a way of regulating alcohol consumption, the government of Indonesia in 1990 banned alcohol advertising on media which has since made it difficult for new entries in the market to thrive. Other forms of alcohol advertising in the country are also governed by strict rules further making it difficult to reach new markets.

Laws on certification on alcoholic products in Indonesia are also strict and can involve a long process before one gets a license. The country further classifies alcoholic beverages in the closed business field meaning that commercialization of any business related to alcoholic beverages is illegal (Grant 98). Consequently, businesses in this industry are restricted from expansion through investment. When the above factors combine, they present a significant challenge to any investor planning to invest the alcoholic beverages industry in Indonesia.

Factors that Might Negatively Impact on a BusinessAmong the factors that might negatively impact on a business is poor quality products coupled with poor customer services. Equally detrimental is the effect of negative actions by an employee within a business more so when it comes to dealing with clients. Additionally, irresponsible financial management that includes ill-advised investment can also impact on a business negatively. As a short term intervention, it is critical to ensure that a business’ goals are centered on the satisfaction of customers’ wants.

Long term strategies include continuously ensuring customer satisfaction, studying market trends to establish key areas to invest in as well as creating a brand reputation.ConclusionEstablishing a product in market requires adequate prior planning that ensures the product can compete with rival products. While a company can influence some factors that affect the introduction of a product in a new market, some factors such as government regulation and religious beliefs can be challenging to address.

It is, therefore, critical to study a market before deciding on its viability to support a specific product. Works CitedGrant, Marcus. Alcohol and Emerging Markets: Patterns, Problems and Responses. Abingdon, UK: Routledge, 2013. Print.