MARKET ENTRY STRATEGY

To survive and thrive in a rapidly globalizing economy, most businesses aim to expand their markets and bring their products to more countries. Entering the new Indonesian market, Sao Thai Duong wishes to meet the market demand here, increase the company ' s revenue and profit, especially affirm its position worldwide.

Exploiting Alfamart' s extensive and prestigious distribution system, creating favorable conditions for products to reach consumers in Indonesia. The company has low risk, spends less resources (money, time, ...) than other methods of entry. Beside, because this is the most basic method, it is the easiest to implement. Take advantage of excess capacity or expand the company ' s production scale and increase sales. Having the opportunity to learn about the Indonesian market, as a premise for steps to penetrate deeper into this potential market. Through Alfamart, the company will have to share a part of the profit , therefore, own a lower profit margin. Depending on the commitment to Alfamart, if Alfamart does not do well, it will greatly affect and hinder export and sales activities. The company cannot control the exact price of its products, or how its brand is represented in Indonesia; It is also not possible to have a relationship with customers from which to provide the necessary services to support and take better care of customers.

Reduced risk exposure (since STD is only at risk for its capital contribution) Take advantage of Innoware ' s factory and human resources (500 people) Create favorable conditions for Sao Thai Duong to research, learn and penetrate the Indonesian domestic market before establishing a whollyowned branch. (about tastes, advertising methods, expanding relationships...) Create opportunities to improve technology. Innoware ' s outstanding technologies include: Automatic packaging: automatic packaging, reducing time, increasing productivity and accuracy. Heat shrink sleeve: heat shrinkable label, suitable for even complex-shaped product covers. Dry offset printing: printing directly onto the final product using laser engraving plates and advanced printers, resulting in highly detailed and meticulous product labels. Easy to cause ownership disputes between parties, the main reason is the lack of agreement on future investments and profit sharing. The local government belongs to a joint venture partner, so Sao Thai Duong company has difficulties in both administrative and cultural work. It can easily lead to disputes about tax benefits between parties, affecting financial issues, capital contribution, and profits received by the parties. Sao Thai Duong Company faces the problem of integration into the international business strategy, issues related to transfer pricing, import sources, ... Facing difficult problems in the management structure and number of joint ventures.

Sao Thai Duong can maintain management system, culture and identity of the business. Unifying vision and mission with holding company. Sao Thai Duong has the ability to easily control all activities as well as enjoy 100% of profits from doing business in this market. Alleviate concerns about technology theft Development with own capital will grow slowly and reduce competitive advantage with strong competitors like Elseve of L' oreal. If the shampoo market does not develop, it will be difficult for the company to increase its market share and find new markets to consume its products. The position is not stable so the company will not be able to achieve the desired profit.

After analyzing the advantages and limitations of the above methods in combination with company resources, Sao Thai Duong decided to choose the two most optimal entry methods: Export and Joint Venture.

Within the first few years of entering the market by exporting, Sao Thai Duong will promote cooperation with Alfamart in distribution, communication, and product introduction in order to increase brand recognition and level of marketing coverage, and access to a large number of customers who are loyal customers of Alfamart.

Furthermore, Sao Thai Duong will work to build the brand' s image and value in order to compete with existing brands in the Indonesian market. Attempt to bring the core values to the market, and cultivate a loyal customer base that recognizes the quality and efficacy of Nature Queen products.

After gaining a better understanding of the market and achieving certain short-term objectives, as well as laying the groundwork for long-term strategies, Sao Thai Duong will proceed to deepen its market penetration on a large scale through a joint venture with Innoware.

Sao Thai Duong is expected to enter the Indonesian market in the middle or end of the first quarter of 2022, when both the epidemic situation and the import-export situation between the two countries improve.