Market research for Matador in Indonesia

Prepared for:
Syed Kamrul Islam
Senior Lecturer
Department of Marketing & International Business
North South University

Prepared by

Abdullah - Al - Amin [1120795030]

Mohammad Atikul Haque [111 0244 030]
Md. Ariful Islam [111 0125 030]
Muammer Mubarak [121 0868 030]

Course Details: International Marketing (MKT 382, Section 3)

Date of Submission: 17th December, 2014
 TABLE OF CONTENTS

SL Content Page

01 Executive Summary 03

02 Company Profile 04

03 Marketing Strategy 06

04 History and Culture 08

05 Product Market 10

06 SWOT Analysis 13

07 Primary and Supporting Activity 16

08 International Logistics 17

09 Conclusions 19

10 Recommendation 19

11 References 23

MATADOR COMPANY
2
 Executive Summary
MATADOR a nationally recognized brand in Bangladesh for writing instruments such as ballpoint
pen, pencil, spiral notebook, drawing book and also other items like tooth brush, toilet cleaning
brush, stainless blade etc, wishes to export ballpoint pen to Indonesia, recognizing the potential
market there. The competition in the market is high and we need to make sure that we are
sustainable to secure a safe future. We have done secondary market research which has shown us
that the people perceptions, culture and literacy rate in Indonesia are pristine for our business. Thus
we have launched our business in the international market; we can still make a good impact as we
have an integrated marketing plan with a good product. We are targeting mainly the local students,
government and private offices and the business buyers. So, we think our main strengths are going
to be our superior quality, innovative design and varying range. The main weaknesses could be the
newness in the market and MATADOR’s outdate technology against advanced local and
established global players, beside that the cost of doing business over there is expensive. In case of
opportunities, rising consumer demand will increase our future sales. The threats will be China, as
they are the main exporter for Indonesia. Other threats might be government regulations and local
competitors. We have decided not to modify our product but just to modify our packaging. We will
be using Chittagong port as our main port and port of Tanjung and Priok for Indonesia. We would
prefer using Sea route rather than Air route for cost cutting and ships can load more goods than
planes. In Indonesia we will be using railways, motor carriers and other modes for local
transportation of our product within the country. Packaging of products differs in Indonesia than
that of Bangladesh as they require different Labeling Requirement and follows some regulations
under it. Beside this, for our export to go through successfully we also need to keep up with their
documentation requirements which includes bill of lading, packaging list, insurance certificates
etc. We will face some problems as we do not have full knowledge of the customs, culture and
market trends of Indonesia but with the integrated marketing plan, distribution strategies and
implementation of international logistics there is a high chance of success for MATADOR in
Indonesia.

MATADOR COMPANY
3
 Profile of the Company

Matador Ball pen Industries established in 1998, the largest ball pen manufacturer in Bangladesh.
Matador is the largest Disposable Pen maker in ASIA having a capacity of making 1 million
Disposable pens per day. Apart from disposable pens, they make refillable ball pen and gel pen
with various ball diameters and ink colors to meet their customers' requirements.

They use high quality raw materials imported from Germany, Belgium, Korea, China and India.
Highly precise molds imported from Korea, ensure dimensional accuracy and flawless finishing of
every part of their pens.

They have 1800 innovative, sincere and hardworking professionals involved in Production,
Finance, HR, Sales & Marketing departments of Matador. Whose are their most valuable assets
and are responsible for the continuous growth of the company.

They believe that quality is their main driving force; we take every care of Quality Assurance as
well as Quality Control. They have set critical restrictions of every process based on consumers
preferences. Before packaging, writing quality of each pen is checked manually and only the
perfect ones are delivered to the market keeping apart the defective ones.

MISSION

Our mission is to promote comfortable pen which will help the writers to write smoothly. We want
to serve our customers the quality full pen with the cheapest price. We will put our customers first
before anything else and try to earn the respect and loyalty of our customers.

MATADOR COMPANY
4
Vision

Our long run vision is to establish as a renowned company in the Ball pen market industry outside
the country by ensuring standard quality full and smooth writing pen. Besides this we will market
some diversified product when it will establish as a brand in customer mind. Our aim is to create
goodwill for the company and with our consistent performance we plan to grab all level of
customer globally.

PURPOSE OF MARKETING MATADOR PEN IN INDONESIA

 Most Attractive Destination: According to the UNCTAD 2012 World Investment Report,
Indonesia is one of the five most striking destinations for multinational companies of
2012-2014, ranking 4th before Brazil. So at the time of expanding the Matador’s business
in foreign market they choose Indonesia.

 High Literacy Rate: In Indonesia, all citizens must undertake nine years of compulsory
education which consists of six years at elementary level and three in secondary level. As
education is compulsory for everyone their literacy rate is very high, that is 90.4%. As pen
is one of the most key elements of education so Matador has a good potential in Indonesian
market.

 Economic Growth: Indonesia has the largest economy in Southeast Asia and is one of the
emerging market economies of the world. Its GDP growth rate is 5.78% (2013) and GDP
per capita is 5477 USD. So we can say that the standard of living in here in is really very
high. The inflation rate is 7.32% (March, 2014). It seems a little high but it decreased from
the previous month.

 Rapidly Growing Middle Class: Indonesia’s middle class has grown substantially, from
approximately 38% of the population in 2003 to 57% in 2010 or well over 100 million
people. As early as people’s income has increased, so they become attracted to education
and as Matador has a relation with some part of education, it has a probability to shine in
this market.

MATADOR COMPANY
5
 Marketing STRATEGY
Before describing the strategies for marketing our product, let us describe the marketing mix for
the business. As our pricing strategy, we will adopt market based strategy considering the location
of different zone in Indonesia. For the first six month we will basically do the market research.
Accordingly this we will do an opportunity analysis first where we will come to know the
customer’s favorable demand trends. More specifically, we will try to find out the area where the
customers are not happy with their existing pen service. Moreover, we will try to take feedback
from the customers to understand the customer GAP. Metallic ball pen, Pilot Dr. Grip ball pen,
ABS ball pen, pen souvenir, Caran dache ball pen are some of the market leading ball pens in
Indonesia. We will make a competitive analysis here. Analyzing these pen market industries, we
have found that they have introduced highly qualified with highly asking price pen. Their core
physical body is covered by metal, grip, steel. In the growing stages, we will introduce rubber
covered physical body pen which will be a quite distinctive product in the market. Our main
competitive advantage is we will offer comparatively lower price product. So our cost strategy will
be market differentiating price strategy. This cost strategy will be formulated at the beginning
and we will overlook it for the first three years. If our product become successful in the market

Then we will introduce Matador gel pen with price Skimming strategy especially in the Jakarta
city. We will also make this three categorized pen available in Surabaya and Bandung city the
second and third density area with push strategy. Following this, we will apply push strategy in
Bekasi, Semarang, South tang rang, Batam and Palembang city one after another. So it will ensure
our positive profit margin. But we will apply pull strategy in Sabang Sawah Lunto and Solok city
as these are comparatively less developed area. As Education is compulsory for everyone in
Indonesia so we hope we can market our product effectively there as well. If customer demand
match with our pen supply or the supply is less than the demand we will boost our production by
establishing a production plant in Surabaya city. In mature stages, to make the product more
cheap and quality full we will import the raw material through the website Alibaba.com. This is
the largest e- commerce site in China. It mainly operates B2B activities. A subsidiary of Alibaba
group, Tmall (www.tmall.com) works as online retailer for B2C operations. The customers will
pay the distributors through these websites. We will use their websites and pay them a listing fee in
return. This group also organizes trade and export fairs, which can be profitable for the promotion

MATADOR COMPANY
6
of our product. For distribution we will focus on the availability of the product the most.
Therefore, we will use the as many numbers of dealer shops in the commercial areas as possible.
The dealers will help us push our product in the initial stage. No matter how small the dealers are,
they are the sellers to the price sensitive customers, so it can work as strength on the part of our
distribution. In Indonesia, we will start small by targeting a few purchasers. We will provide an
attractive sales incentives offer for Extra sales. It will give them motivation for further sell.
However, we will build goodwill with our consistently satisfactory performance and we will try to
convince greater number of their dealers who will take orders from us.

As education is compulsory for Indonesian people so we can target school, college and university
to promote our product. We will start advertising through public relation by arranging a book fair
in Sekolah, Tinggi college, Syiah Kuala University, Malikuassaleh and Polytechnic Negeri
Jakarta. We will provide brochures of matador ball pen to every student and will provide a bundle
of pen free who will buy more than three books. So it will give us some benefit as well as a
platform to promote the product. If we success in these institute then we will move our book fair to
other school, college and university. After six month of this program We will promote our product
in different TV Channel of Indonesia as well such as TVRI, RCTI, GLOBAL TV, INDOSEAR,
METRO TV, RTV etc. We have chosen the most popular newspaper such as Koran Jakarta and
media Indonesia to make a boost promotion.

Additionally, we also plan to use a few billboards at strategic points on the major highways. We
will take help of a local Indonesian ad agency in this regard. However, after analyzing the culture
and preferences of Indonesian customers, we can say that they prioritize the price of the product
before everything, on top of that they like new innovations about manufacturing processes and
newer categories of products. So Matador tooth brush, Matador Stainless blade will also take place
in billboard promotion. Our product has all these qualities, therefore while doing an advertisement,
we will make sure to focus on these aspects.

MATADOR COMPANY
7
 History and culture
To market any product or service, historical and cultural infrastructure of that particular country
plays a significant role. Any country’s purchasing pattern depends on their culture. Since we are
going to market Matador Ball pen beyond our border to Indonesia, we have to analyze the
Indonesia culture along with their income level, life style, GDP, consumption pattern as well as
their overall demographic status. If we do not consider all the above data, then our projection may
deviate from the reality.

HISTORY OF INDONESIA

Srivajay Naval Kingdom in Indonesia was the first major kingdoms in 7th century. At the time of
his kingdoms, the Buddhism and Hinduism religious arrived and next the Buddhist Sailendra and
the HindoMataram dynasties arose as the major powers in the land. In the 13th century, the
HindoMajapahit kingdom was founded under its great leader, Gajah Mada. In 1512, those the
Europeans who were Portuguese arrived and were followed by the Dutch and the British. Soon the
Dutch East India became the dominant power and began to colonize the area taking control for the
several hundred years in Indonesia.

In 1942, Japan occupied the islands of Indonesia. After Japan lost the war, Indonesia asked for its
independence and the Netherlands gave Indonesia its independence in 1949.

CULTURE OF INDONESIA

Based on Hofstadter’s cultural dimension study, we can put Indonesia in specific positions for
different dimensions. Indonesia has its highest ranking Power Distance (PDI) which is indicative
of a high level of inequality of power and wealth within the society. The average Power Distance
for the greater Asian countries is 71.

On the other hand, Indonesia is the lowest world rankings for Individualism with a 14, compared to
the greater Asian rank of 23, and world rank of 43 which indicates the Indonesian society is
Collectivist as compared to Individualist. In a collectivist culture, Loyalty is paramount, and
over-rides most other societal rules and regulations. The society fosters strong relationships where
everyone takes responsibility for fellow members of their group.

MATADOR COMPANY
8
GEOGRAPHICAL LOCATION

Indonesia is one of the most geographically and geologically interesting countries on Earth. It has
more than 17,500 islands and it covers about 1,919,000 square kilometers (741,000 square miles).
The country also shares land borders with Malaysia, Papua New Guinea and East Timor. The
highest point is Puncak Jaya, at 5,030 meters (16,502 feet); the lowest point is sea level.

INDONESIAN BELIEFS AND VALUES

Indonesia is a great variety of peoples and cultures and all are being affected by Western,
“modern” values and attitudes purveyed through the media, films, satellite television, the internet,
education, commerce, and tourism. Nevertheless, the basic family and social values remain and
form a basis for interpersonal relations and public behavior. Since we are from international arena
and most of the Indonesian is formed of international relation, it might be little bit easy for us to
make relationship gradually by providing quality leveled of Ball pen to the customer.

MATADOR COMPANY
9
 PRODUCT MARKET
Matador is the largest ballpoint pen manufacturer in Bangladesh. Currently they are the market
leader in the pen industry. Now they are in the maturity stage in product life cycle. At the same
time they are in the introduction stage at Indonesian market as they are entering into a new market.

The global market for the writing and marking instruments expected to reach US $19.43 billion by
2015. In developing countries such as Indonesia, Thailand or Philippines is this industry as one of
the main target. In 2015, writing instrument in Indonesia expected to grow by 9% in value to reach
US$ 0.21 billion. (Source: http://cekindo.com/sectors/stationery-in-indonesia.html )

Literacy rate is very high in Indonesia (90% above) compared to other developing countries. Total
50.4 million people (Primary 31.8 million and Secondary 18.6 million), so it’s a huge market for
Matador.

MATADOR COMPANY
10
GDP GROTH OVER THE YEAR
Years GDP GDP per Capita GDP
(in billion USD) (in USD) (annual % change)
2010 539.4 2,984 6.1
2011 706.6 3,467 6.5
2012 846.8 3,546 6.2
2013 878.0 3,468 5.8

Sources: World Bank, International Monetary Fund (IMF) and Statistics Indonesia (BPS)

MATADOR has a number of quality product lines for different uses which all are of international
standard. It will increase its product line in the same market if the brand MATADOR itself get well
acceptance in Indonesian market. A huge number of products produced by MATADOR under the
different lines are given below:

Stationery Items Sanitary And Ware Fittings Others

Writing instruments:  Bathroom fittings ABS  Tooth Brush

 Ballpoint pen  Tissue holder  Floor cleaning Brush
 Pencil  Soap case  Toilet cleaning Brush
 Sharpener  Towel hanger  Magnum stainless Blade
 Wiper  Basin tray  Hi-stainless Blade
 Pencil box  Flush tank

Paper and Pads:

 Spiral Notebook
 Glue binding Notebook
 Glue binding Kids Notebook
 Drawing Book
Desk top instruments:
 Stapler (large & small)
 Staples
 Hole punch
 Pin remover
 Cutter knife (large & small)

MATADOR COMPANY
11
MATADOR will have a plan to expand its business in other neighborhood nations in Asia over
times if it can do well business in the Indonesian market with its products. That’s why it has a great
opportunity to establish itself as a good brand in the Indonesian market and capture high market
share over there. Some key information about the potential lucrative neighborhood countries of
Indonesia to expand the business for MATADOR is:

Country Population GDP (PPP) GDP (Nominal)

Malaysia 30,378,000 $746.821 billion $336.913 billion

Philippines 100,617,630 $694.615 billion $289.686 billion

Singapore 5,469,700 $425.251 billion $297.941 billion

Papua New Guinea 7,059,653 $19.828 billion $15.973 billion

East Timor 1,172,390 $2.234 billion $1.293 billion

MATADOR COMPANY
12
 SWOT ANALYSIS
STRENGTH

Strength is the internal and positive sides of SWOT analysis. Like other ball pens, matador ball pen
has some strongest. The strengths of ball pen are,

 Comfortable shape: Everyone including professional writers wants to a comfortable pen

while they write on piece of paper. If they do not feel comfortable with the shape, then they
always try to avoid those Ball pen. So, we are providing our product such a shape that
makes writers feel comfortable to compose.
 Variety of design: People of new generation like many varieties of same product. That’s
why we are offering many varieties of Matador Ball pen so that customers can choose any
kind of designed ball pen of Matador.
 Penetration Pricing: We are providing our product at a cheaper price than that of our
competitors. Therefore it will work as a major strength for this business.
 First Mover Advantage: The methods and technologies we are using in this plan is a new
one and have not been applied in the market yet. This will create an advantage to grab the
market share fast.

WEAKNESS

Weakness is the negative sides of SWOT analysis. Same as the other Ball pen, matador ball pen
has some weakness as international marketers. It is also an external part. Ball pen’s weaknesses are
that,

 High Risk of Failure: As we are entering in Indonesian market like all other new
businesses by new entrepreneurs with little or no established goodwill and experience, we
have a risk of failure in this business. However, we plan to overcome this risk with our
immediate and customer oriented service from the very beginning.

MATADOR COMPANY
13
  Lack of Brand Awareness: This is one of our weaknesses especially when we will be
operating in a foreign country. We are offering our Ball pen with high quality Ink to the
consumers to overcome this weakness.

 Failure to Set up Efficient Distribution Channels Initially: Because of lack in

experience and contacts, setting up effective distribution channels can be a problem in this
business at the first time.

OPPORTUNITIES

It is the external part of ball pen. There are some opportunities of ball pen which are

 Product modernization: To find newer and cheaper ways of production as well as better
versions of our product, we will continuously focus on research and development along
with concentrating our existing business.

 New Market Segments: After our establishment in the market, we can grab newer market
segments with different income levels such as highly expensive pen with unique quality
pen especially for executive and established businessperson. Since we are initially
focusing on the middle class people. As the society becomes more environmentally
conscious, the market for our product is expected to broaden.

 New Product Line: Even though our primary product offering is Ball pen only for the use
of general people, eventually we want to broaden the offerings to different colors of Gel
pen compared to the competitors.

 Labor issues: In production process, labor’s skills and costs are very prominent issue of a
business. We will bring expert labors with low cost to increase our production density and
then we will be able to provide our product to the consumers with high qualities.

MATADOR COMPANY
14
THREATS

It is the external part of SWOT analysis. There are many threats of ball pen which are:

 Conflict to Our Product: As we know, Indonesian market is quite resistant to foreign

products. This is gradually changing; still we can have an initial stagnant period at the time
of convincing the customers.

 Several Foreign Competitors: There is already an established market for this product
where many local and foreign brands are operating. It will create difficulty in our business
especially when we enter the Indonesian market for the first time.

 Country Specific Issues: As we are exporting to Indonesia, we will have to comply with
their tax laws, regulations, and government rules regarding the business, promotion
policies which are quite strict in Indonesia. Therefore, it will take us some extra time to
adjust with those rules and regulations.

 Political Instability: Like other countries Indonesia has also political instability and this
may cause slow process of running our business.

COMPETITOR ANALYSIS

The main barrier in implementing this business plan is the large competitors in the Indonesian
market who are already grabbing huge market shares. Therefore it will be a little bit difficult to
capture the customers at first time. Customers will not be aware about our product, so we will have
to make promotion campaigns and distribution strategically. In Indonesia, Pilot Dr. Grip BallPoint
Pen is very popular. Besides this, Metallic Ball Pen, Stand Pen, ABS Ball Pen, Plastic Ball Pen,
DOS Metal Ballpoint, Gel Rollers, and Hand fit ball pen are holding their tight position. These all
existing ball pen companies in this country will be our main competitors. We will ensure
environment friendly, cost effective and quality oriented product to make our product competitive.
Moreover, we will continuously try to target newer market niches that have been untapped till
now.

MATADOR COMPANY
15
 PRIMARY ACTIVITY

MATADOR COMPANY
16
 SUPPORTING ACTIVITY

• Local agent who collect and supply the

raw material
• Transport and delivery System
• Human Resource Department
SUPPORTING • Accounting and financing Department
ACTIVITY • Sales & Marketing department
• Quality control department
• Administration department
• Latest and improved Technology

International logistics
Primarily, we will ship our product from Chittagong port to Tanjung Priok port; the largest
Indonesian sea port. We plan to stock at least six months demanded product at a warehouse. To
develop a smooth distribution channel, we are going to sign a contract with Gulf Orient Seaways
Ltd. Though we will be new in the market but still we can cover Jakarta by strong distribution
network. We have divided Jakarta into 30 operational zones and each zone will have its separate
distributor. At the super shops and stationary shops, we will deliver our products directly to them
at a wholesale price. Beside this we will try to cover all the other cities by appointing new
distributors. Our product would move from factory to dealer’s agents, agents to wholesalers,
wholesalers to retailers and finally to consumers. Here is a flowchart of our distribution network.

MATADOR COMPANY
17
 First

AGENT

Second

WHOLESALERS

THIRD

RETAILERS
Finally

CUSTOMERS
Wholesalers of the company will be trained and contractual. The company will divide sales
territories among the wholesalers. We will provide commission other financial facilities to the
wholesalers to motivate them. By doing exclusive distribution, we will have the power of
controlling the wholesalers. The most important channels are being contacted are -

 Website based distribution and Information

 Superstores
 Stationary shops

We expect that our product will earn familiarity very soon, and day by day we will increase our
distribution channel.

MATADOR COMPANY
18
 CONCLUSION

As we believe that quality is Matador’s main driving force, we take every care of Quality
Assurance as well as Quality Control. We have set critical parameters of every process based on
consumers’ preferences and compliance of those parameters is strictly monitored. Whether the
right raw materials are coming to the beginning stage is checked and confirmed with care. Before
packaging, writing quality of each pen is checked manually and only the perfect ones are delivered
to the market keeping apart the defective ones. The defects are analyzed periodically and
corrective actions are taken to reduce non-conformity. Through corrective and preventive actions
we have kept the whole manufacturing process under continuous improvement.

We have various testing equipment like Write Testing Machine, Microscope etc. to find root
causes of various defects that helps us to assure and control quality

RECOMMENDATIONS

ABOUT OUR CONTINGENCY PLAN

All business plans should have a contingency plan. If our business fails to gain success then will
take steps like temporary sales promotion, cut some distribution channel, decrease the warehouses,
discount on amount of sales, lowering prices, word of mouth promotion by the distributors, etc. If
we reduce pen price then we have to keep in mind that reduced price covers our cost of production.
If all these techniques fail again then we will try to make a joint venture with an established
company. In addition to this, we can minimize our product market in Indonesia and operate in
another country with potential. Our next best alternative will be export to India and Maldives and
Malaysia as there is a less trade barriers. India’s new government shows Sympathy eyes to us
especially in some recent issue, thus we can hope for some less trade barrier there and thus grab a
potentially profitable market in that country. Now a day’s Malaysia is improving day by day.
Many Bangladeshi people including students, labors are moving to Malaysia. Businessman takes
some business advantages there. So we can achieve a small but successful market there.

MATADOR COMPANY
19
KEY POINTS TO MAXIMIZE OUR POTENTIAL

 As Indonesia is the 16th largest economy in the world and a leading spirit behind the
Association of Southeast Asian Nations (ASEAN), our country must develop a strong
relation with Indonesia. We must acknowledge the international politics between SAARC
countries and choose our priority. A strong business contract with ASEAN countries would
boost our economy and Indonesia could be that door.
 To do such things we must have good contacts. We should visit there more often and invite
them more. But currently Bangladesh doesn’t have direct flight to Indonesia. We have to
travel via Malaysia or Singapore. So, at first we recommend to launch direct flights.
 Our geographical and cultural proximity made constructive relationship indispensable. We
can see this as an opportunity. It will be easier for us develop profitable relationship with
Indonesia. We would request both the Government to take necessary steps to develop
relations between the countries and develop possible business environment so that we can
have a long term business with Indonesia. We can have contracts to develop the tourism
sector. It would help to increase other businesses too.
 We have to do further country analysis before putting the footstep in Indonesia. In order to
establish an efficient way of business here, we need to know Indonesian working
procedures and culture as well as trading rules. Because sometimes it is not even enough to
be able to speak their language to communicate. Before developing a formal business plan,
we have to consider our company’s objectives in Indonesia and carefully research our
target market. The overall market and economic conditions of Indonesia needs to be
understood.
 We should consider the unique selling points of our product where from the distributors
and wholesalers could take the disposable pen any time with effective and easy
transportation medium.
 Our promotional strategy will mainly focus on Students. Besides this we need to keep
focus on service holder and businessman as 90.4% people are educated.

MATADOR COMPANY
20
  It is also important to consider the competitiveness of our product in the Indonesian
market. Thus we have the time, resources and stamina to handle the demands of
communications, frequent travel and final product delivery to distributor and customer.

 We will have to provide standard quality management system in industry. Our team
members such as distributor, workers will be trained before working, and will receive
standard communication training considering the Indonesian belief and culture by the local
experts. Our skilled and trained staffs, our products will ensure all of our finished products
to meet the international standards and clients' demands.

 Remembering that Indonesia is changing at rapid pace, it is essential to keep our research
and information up to date. We cannot automatically assume Jakarta and previously
mentioning cities should be our target markets. Many other regions of Indonesia are
substantial markets in themselves and competition can be less intense. It is therefore
important to treat Indonesia as a global region in its own right and focus our initial market
entry approach on a particular region or city.

 It may be highly beneficial to employ an agent or distributor with marketing skills who has
excellent knowledge of local market conditions and preferably speaks English and
Indonesian language. English is important here because he/she can communicate with us
properly at the beginning stage. A good agent can greatly reduce set-up costs and time
taken to enter the market. As well as having someone on the ground to look after our
interests, we will have access to good local knowledge and contacts. It may be highly
beneficial to have our own well-briefed interpreter available to assist with discussions,
formal presentations and explanation of technical issues.

 When thinking about the maximizing potentials of our idea, we must consider how it might
cope with competition. We also need to find the areas where existing provision or
competition is weak. If the price of our product is not similar to prices charged by
competitors, we may find it difficult either to make sales or make a profit.

MATADOR COMPANY
21
HYPOTHETICAL BUDGET


Year 1 Year 2 Year 3

Marketing Tools

Public Relations $2000 $1000 $1000

Printing $2000 $1000 $1000

Mailing $200 $100 $100

Brochure Design & Distribution $2000 $1000 $1000

Television Advertising $150000 $75000 $75000

($12500*12)
Billboard Advertising $108,00 $5000 $5000
($900*12)
Direct Marketing $12000 $10000 $10000
($1000*12)
Newspaper Advertising $72000 $5000 $5000
($800*12)
Event Attendance $3000 $1500 $1500

Sales Promotion $10000 $5000 $5000

Many other marketing $10000 $5000 $5000

communications tools
Total : $2,09200 $10,9600 $10,9600

MATADOR COMPANY
22
 REFERENCEs
1. People of Indonesia (2005). Retrieved from
http://geography.about.com/library/cia/blcindonesia.htm

2. Gross Domestic Product of Indonesia. Indonesia -Investments. Retrieved from

http://www.indonesia-investments.com/finance/macroeconomic-indicators/gross-domestic-produ
ct-of-indonesia/item253

3. History in Indonesia (nd). Travel Insurance Saver. Retrieved from

http://www.travelinsurancesaver.com.au/indonesiahistory/

4. Geography in Indonesia (nd). Travel Insurance Saver. Retrieved from

/http://www.travelinsurancesaver.com.au/indonesiageography/

5. Infoplease. (nd.). Indonesia: History, Geography, Government, and Culture - Infoplease.com.

Retrieved fromhttp://www.infoplease.com/country/indonesia.html

6. Belch (2008), Advertising and promotion, McGrill,

7. http://www.matador.com.bd/index.php

8. http://cekindo.com/sectors/stationery-in-indonesia.html

MATADOR COMPANY
23