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Some Multinationals Are Succeeding In Tough Rural Indonesian Consumer Market

March 11, 2010: 04:18 AM EST
International consumer goods companies have chalked up some sales successes in Indonesia’s urban market, but in the rural areas, which offer huge potential, multinationals have run up against a perplexing problem. Some fast moving consumer goods (FMCG) companies like Unilever and Kraft have had success, but in general multinational brands have found the going tough in the countryside. Roadblocks for multinationals include the presence of entrenched local competition, as well as steep import levies and distribution costs that affect prices. On a deeper level, multinationals are hamstrung by a dearth of rural marketing information. But for those who have persisted, there have been notable successes: a McDonald’s fried chicken and rice dish, a Marlboro clove cigarette, and a Kraft biscuit brand with extra calcium and vitamins targeted at low-income consumers.
Asiya Bakht, "Indonesia: Brands seek a slice of the lucrative rural market", Media, March 11, 2010, © Haymarket Media Limited
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