Indonesian Brand Forum 2013Presented by :Redesmon MunirOverseas Marketing Manager-LubricantsJakarta, May 20, 2013

PERTAMINA LUBRICANTS : BE A GLOBAL BRAND

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Market Expansion

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Modes of entry selection

THE SCOPE

Decision making Process (Macro and Industry Analysis).

Patner Analysis and Choices

Market Penetration Theory

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Joint venture with minority, equal or

non absolute position

Consortium partner

1. Wholly-Owned Subsidiaryby Greenfield Investment2. Full or Dominant Acquisition3.Joint-Venture with absoluteMajority (Above 66 %)

DistributorForeign Contract Manufacturing

AgentRepresentative

FrenchiseeCorrespondent

Regional HeadquartersMarketing SubsidiaryProcurement OfficeRepresentative OfficeTechnical Observatory

Intensity ofInvestment

HIGH

LOW

None or limited Control Full or Absolute Control

Arm’s Lengths Agreements

Ownership

Model

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WhollyOwned

Acquisition

JointVenture Licensing Repres.

Office

AgentDistributo

rUpfront InvestmentFinancial &Managerial

HIGH HIGH MEDIUM LOW LOW/MED LOW

Speed ofEntry SLOW QUICK QUICK MEDIUM LOW Possibly

QuickMarket Penetration

MEDIUM HIGH MED/HIGH MED/LOW LOW MED/LOW

Control ofMarket(CustomerKnowledge)

HIGH HIGH MEDIUM NIL LOW LOW/NIL

Model

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Challenge in Overseas Market

Succes Story Challenge Strategy Formulation

Until this moment, Pertamina Lubricants already marketed to 23 countries around the world

Excellent growth in Asia Pacific Market; Singapore, Australia, Japan, and Myanmar. More faster to enter Europe and Africa in 2012 than the actual target in 2016.

1 Pertamina Brand in average still unknown in overseas market.

2 Indirect export model, so we have to find the right country distributor :- Capabilities- Financial - Experience

3 Competitive cost :- Macro economy- Currency- Shipping cost

4 Different Market culture

Effective marketing communication program

Combine global & localize marketing campaign

First selection model Mentoring Propose to develope country

representative

Price formulation LOCALIZE production

Customize product Customize communication

program

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Challenge in Overseas Market Overseas market at glance

In Europe

In Australia

In Bangladesh

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Performance Result International Market

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Just in three years, Pertamina Overseas has successfully expanded to 25 countries in 2012

Revenue in 2012: 2.2 trillion IDR (Finish Product, LBO)

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Billboard Pertamina

Bundling Program Display produk di Outlet

Above The Line Below The Line

TV Commercial

Marketing Communication

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OEM Endorsement

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Thank You