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

Running Head: Indonesian Demographic for Paulaner Beer Indonesian Demographic for Paulaner Beer s Indonesia is the fourth most populous country on earth and it is the largest Muslim country of the world. The total population of Indonesia is around 250 million residents. It has more than 17000 islands and is an active member of ASEAN while more than half of its population lives in Java province. The country is geographically located in a prime sea lane with an abundance of natural resources and it has a superb local economy that benefits from lower inflation rate and tends to show reasonable growth every year.

Around 13% people live below the poverty line, however the majority of the consumers belong to middle class in terms of earning (The Jakarta Globe). Following is a brief about the demographic of the Indonesian consumer market that needs to be considered for introducing Paulaner Beer in the country: Religion Indonesia is a country with Muslims as the majority; therefore the factor of religion must be considered for introducing the Paulaner Beer and there must not be any element of disrespect regarding Islamic morality.

Especially packaging and labeling of the beer should be in accordance with the religious and cultural norms. Indonesian society is quite religious and utilizing religious symbols for market penetration can be effective. Age Age is the most important element pertaining to consumer behavior and demographic study. Indonesia has the following strata in relevance of age: Percentage share of total population Male (absolute) Female (absolute) 0-14 years 27.3 34,165,213 32,978,841 15-24 years 17.

1% 22,067,716 21,291,548 25-54 years 42.3% 52,723,359 54,500,650 55-64 years 7.9% 9,257,637 10,780,724 65 and above 6.5% 7,176,865 9,308,056 Source: indexmundi The above table clearly reveals that the majority of the population comprises of young people, which is extremely vital for economic prosperity of a country as well as for the businesses to have potential buyers of their products and services (“Indonesian Demographic Profile”, nd). Paulaner Beer can potentially target the young consumers through design and promotion.

Economic Strata With a dense population in the country and greater economic prospects, Indonesia has become an attractive place for new corporate entrants from around the globe. Paulaner Beer can brand its products based on price because the Indonesian consumers are often found price sensitive. The vast majority is the middle income earner while 13% are living below poverty benchmark and some belong to the elite class. The primary target should be middle class, however, there’s a need to brand low price products and premium products to optimize the potential.

Consumer Loyalty Indonesian consumers are not loyal to brands rather they buy any product irrespective of brand name (Elkhweet et al. 2013). In such a case, Paulaner Beer should be more concerned to generate robust branding strategies for expanding and operating in Indonesia. Brand Recognition Despite the low consumer loyalty, Indonesians pay the premium price for functional benefits of the products (Elkhweet et al. 2013). Such a scenario demands Paulaner Beer to focus on differentiation and unique selling points of its products.

References Elkhweet,, N., Booker, M., & Felenbok, J. P. (2013). WINNING ON THE NEXT FRONTIER: Five Rules for Reaching Indonesian Shoppers. Indonesia Shopper Report 2013. Indonesia Demographics Profile 2014. (n.d.). Retrieved from http://www.indexmundi.com/indonesia/demographics_profile.html The Jakarta Globe; Accenture analysis of the National Accounts Main Aggregates Database; United Nations Statistics Division, 2011; and Bapepam Statistik Pasar Modal.