Steve Chunky Meat Pie in Indonesia

Steve’s Chunky Meat Pies in Indonesia

Steve's Chunky Meat Pies, a Queensland family-size brand that has three kinds of products (beef, lamb, and chicken) want to expand the business in Asia. The firm seeks new domain to ameliorate their market share. This essay will discuss why Steve Chunky Meat Pie should open the business in Indonesia. In Indonesia, pie can be classified as a refreshment or snack. People usually eat pie as an appetizer before meals or consume it during break time. There three main reasons why the firm should choose Indonesia as the new market, good potential market, familiar products, and many annual supporting events that can increase the product’s demand.

Firstly, Indonesia is a large population country that has potential market in food business. One reason why Indonesia has excellent market in food industries is there is a transformation of Indonesian eating habit. Researcher found that there are emendations in the how Indonesian people consume foods. As modeled by Welirang, Indonesian people eat more often snacks in a day (Welirang, 2010).

Picture 1 – Indonesia changes in eating habit model

[pic 2]

Source:  Seminar Nasional Diversifikasi Pangan, Franciscus Welirang, 2010.

It can be seen from picture 1, formerly Indonesian people eat three times in a day (breakfast, lunch, and dinner) and sometimes interspersed with eating snacks or appetizers in the morning and evening. However, the habit change in two models, some people still eat three times in a day, but with longer time to consume snack, and other people only consume meals once a day with many times of consuming snack. Furthermore, Astawan strengthens this opinion in his research, that Indonesian people have a habit that cannot stop consuming snacks. Consequently, now Indonesia ranks as third after China and Japan in the level of the highest snack consumption (Astawan, 2010). Furthermore, in 2013 research predict that food consumption will grow 7.9 per cent, and will end at 9.3 per cent growth in 2017 after forecasted (Langley, 2013). Indonesia habit alteration happens because more time pressure comes to Indonesian society, the increase of work tension such as increase of working hours, and a growing number of women workers (Welirang, 2010).

Other fact, last National Socio Economic Survey 2012 held by Indonesia Statistic Bureau (BPS, 2012) indicate there are an increase in the demand of prepared food. As reported by ISB, the consumption of the food increased gradually since 1999. The commodity of prepared food (fast food, snacks, package foods, and beverages) is growing from less than ten percent in 1999 to more than twelve percent in 2013 nationally (BPS, 2013). Furthermore, in 2011 the Food and Beverage Association of Indonesia (GAPMMI) noted that the value of food and beverage sales reached IDR 660 billions while in 2012 increased to IDR 700 billions (GAPMMI, 2013). The increase in food consumption was followed by a rise in imports of food products and beverages. In 2010 imports of those products reached USD 2.439,6 million or as high as 78.4% growth compared to 2009 that reached USD 1.367.3 million (Bank Mandiri, 2011). The growth of import food in Indonesia is a chance for Steve Chunky. The company has a big chance to penetrate Indonesia market because it has positive growth in food industries.