Question:
What is Internet and how effective it is in business area?
Internet and how effective it is in business area, bring the idea for establish my business research topic which is implement online takeaway delivery in Indonesia especially Jakarta. It is very important to gain more external knowledge in the field of culture where it will lead to the research about the consumer culture and behavior and also market research in Indonesia especially Jakarta. How is the lifestyle in Indonesia compare to Australia as the country that bring this online takeaway idea to be implement in Indonesia will also be discussed, where this will assist in adopting the ideal strategies to run and implement this online takeaway delivery to be succeed in Indonesia especially Jakarta. Based on the current existence of online takeaway delivery that already running in Australia, we will do some research about how the system running base on how they do the delivery, therefore we can have a look at how the business model can be implement in Indonesia. An analysis of the competitor in Indonesia (foodpanda.co.id, raja-makan.co.id and pumasera.com) will be explored to help the hypothesis about how this online takeaway delivery works and what are other potential that can be explore more to make this online takeaway delivery more effective among their competitors. Another important factor to look out for is how we will determine the target market, financial or cost planning, behavioral-economics in Indonesia and how the consumer behavior will determined how this online business type will works in Indonesia.
When we talk about consumer culture, we need to understand what is Culture at first. Based on, they mention that the definition of culture is become a controversy and the terms itself has been used in many variety ways, the common definition that has been used “is that complex whole which includes knowledge, beliefs, arts, morals, laws, customs, and any other capabilities and habits acquired by [a human] as a member of society.” Cross border, population such as migration brings the diversity among the society. This diversity often refers to the difference in behavior, traditions and customs, where this can bring us to know more lately about consumer behaviour in Indonesia especially Jakarta.
The reason we discuss about the culture at first is to know more about the culture in Indonesia regarding the business that we will run in Indonesia is because, it is believed that culture is a noticeable variable in interface acceptance and as in this online business, interface aspect is involved in it. Indonesia culture is very rich, where most of it is intertwined with religion and old age traditions with western thoughts brought by Portuguese trades and Dutch colonist. Their concept and basic principles is include the concepts of “gotong rayong” (mutual assistance) and ‘musyawarah’ (consultations) to result in “mufakat” (agreement) in Bahasa terminology. This system is still very much in Use in the community life within the country. Indonesia art and culture has been shaped around its hundred of ethnic groups, which have shifted over the centuries. In modern-day, Indonesians culture is blend with some of cultural aspects from Arabic, Chinese, Malay and European sources.
Consumer culture itself has three main perspectives where one of it viewed that consumer culture is based on commodity production, which caused the material culture in form of consumer goods, and sites where we can purchased and consume. This perspective can be related in terms of not more about the goods but more in the variety of Indonesian culinary for the online food takeaway delivery in Indonesia especially Jakarta. By looking from this perspective, where Indonesia known for their rich culture and their variety of their local food and restaurant, gives us perspective that this business has a potential to be run in Indonesia especially Jakarta. Sociological view as the second perspective can be related in the satisfaction of the consumer after they purchased the good where in this business is more the satisfaction in purchasing online takeaway food delivery. As the business is more about services, the emotional experiences of consumption (in this business is more about experiences after use the service) as the third perspective from consumer culture might be important to monitored. By doing research of consumer culture, socio cultural, experimental, symbolic, and ideological aspects of consumption will be addressed. In order to use this consumer culture terms, the world of goods and their principles of structuation are central need to be emphasised in order to understand the contemporary of the society. This involves dual focus: firstly, on the cultural dimension of the economy (symbolisation and use of material goods as ‘communicators’ not just utilities) and secondly, the economy of cultural goods (market principles such as supply, demand, capital accumulation, competition that operate within sphere of lifestyles). In this project, the goods is more about the food, where so many culinary in Jakarta which can attract both local people and new comer or international tourist, and this can help the impulse of buying or purchasing and this will lead in to the economy aspect in the country regarding revenue per capita from this food and beverage sectors.
Before highlighting the lifestyle of Indonesia, the researcher should focus to discuss on the importance of consumers’ behavior. Blomme and Bornebroek-Te Lintelo (2012) stated that consumers’ behavior is nothing but the study of an individual or a group. While purchasing a particular product, the target consumers intend to acquire an in-depth knowledge about this particular brand with the help of various promotional tools of media. Therefore, the consumers come to know about the necessary information about the product. Now-a-days internet has become one of the most effective tools of media based on which people from different geographical boundaries get the opportunities to have detailed information about the business process and services.
In order to highlight the lifestyle Indonesia, three primary factors should be pointed out first that include the behavior of people, the eating habits of people and the wok culture of people. As opined by Boiral and Paillé (2012), Indonesian people seem to be very curious. The people like to ask numerous questions without making any personal attack. Therefore, before using the online food delivery service, the inhabitants of Indonesia like to make effective questions first regarding the service process of various online food delivery organizations like foodpanda.com. Based on the customer service system of this particular organization, the target consumers of Indonesia decide how they would like to use the service or the product. The people in Indonesia especially in Jakarta is most endowed with Muslim community possessing the habit of rising early in the morning. Therefore, the online service providers should maintain the customer service system for twenty-four hours. As a result, the consumers would be able to get online service system at any time.
As per the eating habit of Indonesian people, it has been observed that rice and vegetables and fish are the primary foods based on which they have to lead their effectively. Most of the Indonesians like to use their hand at the time of having foods. Spoons and forks have been used in rare cases. Therefore, the online food delivery organizations have to keep those factors in mind while using their product and services. The managers have to instruct the employees to focus on the interest of the people of Indonesia so that their different tastes and wishes can be fulfilled. One of the most important characteristics in the eating habit of Indonesians is that people like to have their food fast as well as silently. As per the point of view of Bond and Muethel (2012), the service providers of online food delivery organizations intend to focus for preparing such kind of food that can be taken fast having a quick digestive process. According to Dent and Whitehead (2013), business organizations should always expand their business process as per the response and requirement of the target consumers. Online food delivery organizations such as foodpanda.com should keep those kind products, which are in favor of Indonesian people and their lifestyle.
Among the other habits, the importance of work culture inside the company is highly prominent. As per the work culture of Indonesia, it has been observed that providing twelve-hour service at the workplace has become a traditional culture of the Indonesian people. Consequently, the target consumes of Indonesia get the opportunity to receive the service at any time. With the help of online service procedure, the customers can provide their feedback immediately. At the same time, the service providers as well get the scope to inform their business agenda to the customers for drawing their attention. In addition, people of various culture and background from different geographical area get the opportunity to communicate with the service providers of online food delivery organizations of Indonesia especially on Jakarta (Eid et al. 2012). This is the most effective ways of expanding the entire business in various multinational countries beyond going in the Indonesian market. Analyzing the consumer behavior is possessed with several strengths and weaknesses. Business experts can get an immediate feedback from the consumers. As per the feedback, the managers can form their business strategy. Consumer behavior is not devoid of some of its negative effects as well. If the competitors maintain promotion that is more effective the consumers get attracted towards their product.
As per the point of view of (Fox et al. 2012), three primary aspects are mainly responsible for the market segmentation. These aspects include demographic market segmentation, psychographic market segmentation and geographic market segmentation. The target consumers have been selected as per these three market segmentation categories. The marketing managers of various business organizations like to segregate their demographic market as per the gender, age and income status of the people. Hassard and Pym (2012) opined that, the percentage of male categories is higher than the female categories in Indonesia. As a result, Indonesian business organizations like to involve male employees within their business process. In addition, online food delivery services primarily intend to hire male employees due to several reasons. Consumers after giving the order of their favorite food through online, the service providers have to deliver those products through online. In this situation, business organizations like to depend regarding the delivery process on the male employees rather than the female one. Therefore, Indonesia has become more privileged in this particular case as this geographical area is primarily endowed with male genders.
Target consumers for food industry can never be segregated as per the age group. People of different age group have been decided as their target customers. Indonesian people especially people of Jakarta are not that much strong in their economic status. Therefore, the online business organizations of Indonesia have decided to make and provide such kind of products that people of different level of income can purchase their products (Hayati and Caniago 2012). foodpanda.com is not exceptional to that. This particular business organization has intended to provide low cost product to the customers so that people of different background can be able to purchase their product. As per the geographical segmentation, it has been observed that online business organizations are able to draw the attention of people from different geographical area. In case of Indonesian food-delivery shops, the business experts have decided to reach the doorstep of various geographical boundaries. Therefore, by utilizing the popularity of media, the business market analysts have decided to reach their target group. Customers would be able to order their favorite dishes through online (Hou, Luo and Al-Tabbaa 2012). The service providers would be responsible to deliver their product within time. As a result, it is undeniable that online business process is not restricted to any particular geographical area. The service providers are very much successful to provide an effective service to the target consumers with the help of online business services.
Psychographic market segmentation is primarily based on the personality, motives and lifestyle of the people. The lifestyle of Indonesian people has already been discussed in this particular study. As per the lifestyle of the people, it has been observed that people of Indonesia like to have their food fast. They wish to use their hand instead of spoon or fork while eating. As per their food habit, the food business experts like to form their business strategy and prepare the product for drawing the attention of the people. Therefore, it is highly important to focus on the geographic, demographic and psychographic market segmentation in order to select the target consumers for online food delivery organizations of various countries (Jafri 2012). At the same time, it is also undeniable that business organizations should never make their product for specific target group. Foodpanda.com has a tendency to satisfy the demand of a specific kind of group in Indonesia.
Foodpanda.com is one of the most popular online food delivery marketplaces occupying a predominant place throughout the world. Established in 2012, this particular online organization has founded 500 online sites throughout the world. More than 3,700 people have been employed within the business process of foodpanda.com. This particular organization has created a satisfactory image in the Indonesian countries. After establishing their business in different geographical areas, this particular organization has become a threat for the competitors. Raja-makan.co.id and pumasera.com are the primary competitors of the foodpanda.com. On one hand, raja-makan.co.id intends to concentrate on brand value strategy in order to draw the attention of the customers. As per the brand value strategy, this particular organization likes to concentrate on the quality of products. A large number of Indonesians intends to use the products of raja-makan.co.id. On the contrary, foodpanda.com primarily concentrates on low cost product strategy. As per the low cost strategy, business organizations are able to provide products in cheap costs so that people of different levels can get the opportunity to purchase their products (Lammers and Hickson 2013). Before making a market strategy, organization such as foopanda.com likes to make an effective market survey, based on which the marketing managers come to know the competitor’s market strategy and policy. In order to create a market demand, making an effective competitive analysis is very much important.
Lee and Lawrence (2013) on the contrary mentioned that competitive analysis is highly needed for maintaining a promotional activity of brand or products. Promotion is one of the most effective parts to create a demand of products in the market. Therefore, while making an effective promotional strategy, the business organizations should acquire a clear and in-depth knowledge about the competitors’ promotional strategy and policy. If foopanda.com intends to keep a large amount of money for promoting their brand through electronic media, raja-makan.co.id should never be step back. In fact, this particular organization can utilize the popularity of new media based on which they can reach a large number of target customers for using their services. The realm of new media is more wide and vast (Nichols 2013). People of different geographical boundary can gather knowledge about the service and product quality of these organizations. In this way, Furthermore, direct market selling is another type of effective procedure to deal with the target consumers face to face. As a result, the service providers are able to gather an immediate feedback from the customers. However, if an organization is able to collect an immediate feedback from the target group with the help of direct selling method, the other organization should definite follow the competitive strategy. This organization may apply personal selling method based on which the service providers and the service users would be able to make an effective communication. As per the immediate response achieved from the customers, the service providers would be able to change their business policy at the proper time.
Business model is nothing but the systematic plan or procedure organized by a company. Based on the business model, various business organizations are to plan their revenue structure, their budget making, their balance regarding profit and loss and so many. Different business organizations like to follow various business models (Pettinger 2013). Online food delivery services are not exceptional to that. As per the lifestyle of Indonesian people, the organizations such as foodpanda.co.id, raja-makan.co.id and pumasera.com like to follow several business models for the business progress, which are as follows:
Foodpanda.com likes to follow Brokerage business model while maintaining their business successfully. As per this particular business model, one individual broker likes to act as a intermediate in between the seller and the consumes to maintain an effective communication. The primary responsibility of this broker is to transmit necessary information to the consumers and to decode relevant feedback to the sellers as well. For this particular business, online or internet media has been considered as the broker (Robbins et al. 2013). With the help of internet media, the target customers intend to express their point of views about the service procedure or the product quality of that particular organization (Ruiz-Palomino, Martínez-Cañas and Fontrodona 2013). Within the online website, one public forum has also been created. With the help of this public forum, the business service providers can communicate with the customers directly in order to get an immediate response from them. On the other hand, consumers as well get the chance to share their point of views regarding the business service process (Runhaar, Konermann and Sanders 2013). As a result, the organization can easily come to know the satisfaction level of consumers.
While delivering the product to the customers of different geographical areas of Indonesia, foopanda.com likes to prefer motorbike rather than a private car. This organization being an online shop is able to draw the attention of numerous remote areas. Private cars may not be reachable to every locality of Indonesia. Therefore, motorbike remains as the suitable option for delivering the product in various remote places of Indonesia. In addition, Samad (2012) opined that the service of a motorbike is faster than a car. After giving an order, the customers generally wait eagerly for the arrival of service providers for home delivery. In this situation, the service providers have to play a major role to deliver the product to the consumers’ doorstep within time.
Indonesia has been considered as the fourth largest countries throughout the world. As per the structure, economic strength, this particular country has remained as an advanced one till now. Therefore, the financial status of Indonesians is strong enough to purchase costly products. Therefore, the business organizations while making their brands have to keep these factors in mind. The business experts should follow the business strategy in such a way that people of different economic background can be able to purchase the service of these online food delivery services. Among the South-East Asian countries, Indonesia belongs to the largest economical background. Many industrialized countries have considered Indonesia as their members due to its sound economical status. Despite all these factors, Indonesia likes to depend still on the domestic market. As a result, this particular concept has become a facility for the Indonesian businesspersons Smith, Farmer and Yellowley 2013). This is one of the biggest reasons for being successful for the companies like foodpanda.co.id, raja-makan.co.id and pumasera.com. They are successful enough to draw the attention of target consumers of Indonesia. The people of Indonesia as well have showed their wide response to use the products and services of those online shops (Wu and Parker 2012).
Economical strength is definitely a positive outcome because of which Indonesia has become a technologically advanced country. The people of Indonesia as well are very much accustomed with the advancement of technology (Symon and Cassell 2012). Therefore, the business experts of these organizations like foodpanda.com do not have to face numerous challenges in order to convince the customers to use their services. The people have already understood about the advantages of purchasing foods from any online shops. Consumers do not have to visit the place physically to utilize the service of this organization (Westwood and Rhodes 2013). The services providers like to bring the products of customers to their doorsteps.
While conducting the literature review part, the researcher has overlooked some of the major issues. The researcher has concentrated on the organizational culture, organizational behavior, competitors’ analyses to discuss the effectiveness of internet. The researcher could have been focused about the various kinds of marketing mix structure in order to make effective promotional activities. In addition, the researcher fails to highlight what kinds of management style the business organizations should follow while maintaining their business successfully (Wilson 2013). Furthermore, online media has not been utilized properly for promoting the online food delivery business. Therefore, the researcher should keep those factors in mind.
Conclusion:
This particular study has provided an in-depth understanding about the effectiveness of online business in the current era. Indonesia being a developed country as well as one of the largest one is successful enough to run online business. This specific study has focused to mention different factors associated with Indonesian cultures. Based on those factors, the business organizations have molded their business strategy. The important aspects that have been taken into consideration are like organization culture, organizational behavior, target market, competitors’ analysis, suitable business model, economic strengths and so many.
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