Creating Online Solution For Value-Added Events

ANTIBOSAN.
COM: CREATING
ONLINE SOLUTION FOR
VALUE-ADDED EVENTS
PREPARED BY: HANIF A. WIDYANTO

STUDENT ID: 1206186232
MAGISTER MANAGEMENT PROGRAM
UNIVERSITAS INDONESIA
2012
MARKETING MANAGEMENT REAL-LIFE PAPER
1. I NTRODUCTION
1.1.
Indonesian Consumer Growth and E-Commerce Landscape

As the worlds fourth most populous nation with steady economic growth,
stable political condition, abundant natural resources, and rapid
expansion in the middle-income class, Indonesia has experienced
remarkable consumer market transformation in the last few years.
According to a 2011 survey conducted by Bank of Indonesia (BI), the

number of middle class people with increases in net worth, assets, income
and ability to repay loans has reached a staggering 60.9 percent of the
population, while the high-income segment with a net income of more

than Rp65.6 million stood at around 17 percent of the population (Xinhua,
2012).
F IGURE 1 - I NDONESIA S P OPULATION BY I NCOME L E VEL , M ILL IONS OF P EOPLE (S OURCE : M C K INSEY G LOBAL
I NSTITUTE , 2012)
A study by McKinsey Global Institute (2012) also revealed a promising

outlook for Indonesian middle income class. In their September 2012
report, the US-based consulting firm projected that by 2030, Indonesias

consuming class would reach a sizeable 135-million strong people (see
Figure 1), which constitute around 71 percent of the population in cities,

producing 86 percent of Gross Domestic Product (GDP). This means that
Master of Management University of Indonesia (MM-UI)

by then, Indonesia will have added 90 million people to its consuming
classmore than any other country apart from China and India.
Euromonitor International (2010), a London-based market research
outfit, also produced similar findings regarding the countrys consuming
class. Back in 2006, there were 6.6 million Indonesian households with an
annual disposable income of over US$10,000 (in constant terms), but by
2011 this number had risen to 13.7 million households. If this trend holds,
it could potentially reach an upward of 31.1 million households by 2020.
This would conveniently position Indonesia as the seventh-largest
economy in the world in less than two decades, from its current position as
the 16th-largest. The McKinsey report even went further by arguing that
Indonesia has had the lowest volatility in economic growth over the past
decade among any advanced economy in the Organisation for Economic

Co-operation and Development (OECD) or the BRICs (Brazil, Russia, India,
China and South Africa).
Indonesian GDP Growth

6.3
2007
GDP Growth
6
2008
4.6
2009
6.2
2010
6.5
2011
F IGURE 2 I NDONESIAN GDP G ROWTH 2007-2011 (S OURCE : BI)
This condition leads to the fact that Indonesian economic growth has
expanded at a robust average pace of 6 percent since 2007, which also

means that the country has enjoyed steady increase in GDP per capita,
effectively breaking the milestone middle-income barrier of $3,000 per
capita in 2010, which many economists believe would result in

accelerated development through surging economic growth, as proven

by China, India, and South Korea. Indonesias GDP per capita has since
increased from $3,469 in 2011 to $3,848 in 2012. This growth is expected
to reach $4,190 in 2013 and $4,568 in 2014, with strong domestic
consumption and favorable productivity growth on top of relatively

manageable inflation.
In this regard, McKinsey reported that, unlike archetypal Asian tiger
economies which are export-driven supported by its emergent workforce

or rich endowments of natural resources, Indonesias economic growth is
propelled by domestic consumer expenditure and services.
Indeed, as noted by Euromonitor International, consumer expenditure is
the primary driving force of the Indonesian economy, with private
purchases contributing around 55-60 percent of GDP, in line with BIs
findings. Improvements in household conditions have triggered

consumption, which in turn spurred economic activities. Higher savings
have also strengthened the financing source for development, as noted by
Yunita Resmi Sari, Deputy Director of BIs Banking Research and
Regulation Department. This strong consumer expenditure has also
proven to insulate the Indonesian economy from external shocks of the

global economic downturn.
Euromonitor
International
also
reported
another
interesting
characteristic of Indonesian consumer market, which is the relatively
young demographic profile wherein 60.8 percent of the population in
2011 aged below 35 years. Most notably, people aged 30-34 had the
highest average gross income in Indonesia, at Rp38.7 million (US$4,199)
in 2011, compared to the national average gross income of Rp31.5 million
(US$3,422). In addition, unlike the aging demographic trends in many

countries (including some in Asia), the working age in Indonesia is
predicted to remain positive until 2025, contributing an annual 2.4

percent to overall economic growth until 2030.

Indonesian E-Commerce Landscape
E-commerce is defined by The U.S. Department of Commerce as the sales
of goods and services where an order is placed by the buyer or price and
terms of sale are negotiated over the Internet. It is typically associated
with buying and selling over the internet, and includes business activities
which are done business-to-business (B2B), business-to-consumer (B2C),
consumer-to-business (C2B), and consumer-to-consumer (C2C). The

government can also become part of the e-commerce milieu.
In order to better understand the nature and extent of Indonesian e-
commerce landscape, one needs to look at the fundamental aspects of the
digital ecosystem in the country. Firstly, it is worth noting that the
number of Indonesian internet users towards the end of 2012 has
reached 61.08 million people, which is an increase of 10 percent from the

same period last year. This is equivalent to a penetration rate of 23.5
percent of the overall population (Markplus Institute, 2012).
Indonesian Internet Users 2009-2015
139,000,000
140,000,000
107,000,000
120,000,000
100,000,000
82,000,000
80,000,000
60,000,000
40,000,000
55,000,000
30,000,000
62,900,000
42,000,000
20,000,000
-
2009
2010
2011
2012
2013
2014
2015
Internet Users
F IGURE 3 I NDONESIAN I NTERNET U SER G ROWTH 2009-2015 (S OURCE : APJII)
The Indonesian Internet Service Provider Association (APJII) also
reported similar trend (Figure 3) with a total Indonesian internet users
expected to reach a staggering amount of 139 million people by 2015,

which will account for more than half of the population.

Secondly, Indonesia is a lucrative and highly competitive mobile phone
industry market, with a penetration rate of more than 83 percent (around
200 million users) in 2012, which has tripled in five years. The mobile
phone subscribers base has even surpassed total population in early

2012 with more than 260 million subscribers, equivalent to a market
penetration rate of 107 percent (Evans, 2012). This figure is important

since, according to a 2011 survey conducted by Nielsen, more than 61
percent of Indonesian internet usage came from mobile devices.
Indonesian Mobile Phone Users

2006-2012 (%)
100%
80%
60%
40%
33%
35%
2006
2007
54%
58%
2008
2009
65%
78%
83%
2011
2012
20%
0%
2010
% of Mobile Phone Users

F IGURE 4 I NDONESIAN M OBILE P HONE U SER G ROWTH 2006-2012 (S OURCE : N IELSEN )
Lastly, the logical consequence of having huge mobile phone users with
access to the internet also means that Indonesia is widely recognized as
the next big thing in digital (social) media. According to DailySocial, it is
currently the second largest country on Facebook with more than 43
million users (and counting), 90 percent of whom are under the age of 35.
The country is also home to the fourth largest user-base on popular social
media site Twitter, with more than 11.5 million users contributing an
upward of 12 percent of total tweets globally. Facebook and Twitter are

heavily used in daily Indonesian life, and present great opportunities for
companies to reach potential e-commerce customers in the country.
Having mentioned the promising figures, it is then curious to observe that
e-commerce landscape in Indonesia still accounts for only a small fraction


of the countrys total retail sales. According to a joint-research conducted
by Veritrans and DailySocial (2012) as part of an independent research
project at Harvard Business School, the market value of e-commerce in
Indonesia in 2011 was $0.9 billion, or only 0.7 percent of the countrys
total retail sales of $134 billion. The report also noted that the percentage
of e-commerce users out of the internet population only reached 6.5
percent, with an average annual e-commerce spending per user of $256.
This is relatively low compared some other economies including Brazil,

China, and The U.S.
E-commerce market
size
% of ecommerce
users out of internet
population
Average annual ecommerce spending
per user
Indonesia
Brazil
China
The U.S.
$0.9 billion
$11 billion
$115 billion
$193 billion
6.5%
17%
28%
71%
$256
$824
$799
$1,111
T ABLE 1 C OMPARIS ON OF E-C OMMERCE M ARKETS (S OURCE : D AILY S OCIAL &V ERITRANS )
A lot of factors can be attributed to this condition, from slow internet and
unreliable delivery time; less competitive price, quality, variety, and
customer support of online shops compared to their traditional offline

counterparts; and the slow adaptation of Indonesian financial system and
convention to deal with e-commerce ecosystem, among many others. For
instance, unrelated surveys by Markplus Insight and Ideasource have

both found that 70 percent of online shopping transactions in Indonesia
are still paid with conventional (and tedious) bank transfer or cash-on-
delivery (COD), which are crucially discouraging for e-commerce, with the
rest paid through, credit cards, Paypal, or other means of e-payments.
Such condition calls for collective efforts by both public and private
sectors to improve infrastructure, provide better products and services to
accommodate customers needs via online channels, and establish better,
more secure payment system while educating customers about the

benefits of using e-commerce. By implementing these actions, the
DailySocial-Veritrans report believes that there will be an explosive


growth in local e-commerce, as is the case elsewhere in many developed
economies across the world.
The evidence speaks for themselves. Tokobagus.coms traffic has reached
850,000 users daily, amounting to an impressive total monthly

transaction of Rp 1.758 trillion. Traffic for Multiply Indonesia has
skyrocketed since pivoting from social media to e-commerce, with up to 7
million monthly users, 2.4 million registered users, and 85,000 retailers
selling various merchandises on their online marketplace. In the best case
scenario, Indonesias largest forum Kaskus estimates total monthly sales

of $37 million, with estimated annual sales of $444 million.
Daniel Tumiwa, Country Manager of Multiply Indonesia and Chairman of

Indonesian E-Commerce Association (idEA), argued that several
supporting factors might be attributed to the rise of e-commerce in

Indonesia:
1) Rapid expansion of the middle income class;

2) Stronger purchasing power;
3) Larger internet penetration; and
4) Significant increase in digital advertising spending with an annual

1.2.
growth of 100 percent.
Startup Industry in Indonesia: Challenges and Opportunities

A startup company is designed to search for a repeatable and scalable
business model (Blank, 2010). Another definition by Eric Ries (2010)

describes startup as a human institution designed to deliver a new
product or service under conditions of extreme uncertainty.
In any case, a startup company is basically business endeavor in its first
stage of operation; typically associated with technological ventures

designed for high-growth. To avoid confusion with other form of newly
established small businesses, the term startup in this paper will refer to
technological ventures which utilize and are heavily dependent on digital

infrastructure (i.e., the internet, mobile telecommunication and devices,
among others) to support their business innovation and growth.

The startup industry in Indonesia is still relatively undeveloped, but with
a healthy range of varieties and promising prospect ahead, allowing for

high economic growth, huge domestic market with an ever-expanding
middle-income class, and rapid internet user growth. As an industry in its
early stage, there are only a handful of local players and products or
services currently offered. However, major challenges come into view,

including the slow adoption rate to trust e-commerce system in
Indonesia, underdeveloped payment infrastructure, among other things.
In response to the growing startup industry, several tech investment
funds have also spurred into growth to invest in Indonesian startup

companies in the form of incubator, business accelerator or venture
capital (Mamuaya, 2011). The list includes:
1) East Ventures (east.vc), the first investment company focusing on tech
startups in Indonesia. Their portfolio comprises of some major startup
names like Tokopedia, Urbanesia, Disdus, Penn-Olson, AppsFoundry,

among others;
2) MerahPutih Inc, an incubation fund by Djarum Group, with portfolios

including Dailysocial, Infokost, Lintas.me, etc.;
3) GDP Ventures, a fund set up by Djarum Group for larger and more
mature tech, mobile, and internet companies. Their current portfolio
company is Kaskus.us;
4) InvestIdea, with 3 companies in their current portfolio: Kartumuu,

Bistip, and WhuzzNet;
5) Nusantara Ventures, Singapore-based fund set up as a joint venture
between several companies, including Bakrie Group and IDG

Ventures;
6) Nusantara Incubation Fund, a $10 million private investment firm set
up by Anindya Bakrie, focusing on early-stage startups with valuations

between $1-5 million;
7) Bandung Ventures, seed-stage investments aiming to tap creative

ecosystem in Bandung;

8) Raja Capital; early venture capital specializes in seed stage, early
stage, and growth stage investments;
9) Ideosource, a $5 million fund with focus on seed investment and

incubation programs. Currently manages eEvent;
10)Jakarta Founder Institute, an intense single semester business school

for entrepreneurs with big names as their founders and mentors;
11)Project Eden, claims to be Indonesias first tech startup accelerator.
In addition to investment funds, various local startup communities have

also spawned across the country, which includes Tangan Di Atas (TDA),
StartUp Lokal, and many others. There are also some online blogs which
specialize in covering Indonesian and regional startup scene such as
DailySocial, Tech in Asia, StartupBisnis.com, Sangatpedas.com, etc. Events

dedicated to encourage startups in the country have also taken place,
which includes SparxUp, Hackaton, Social Media Fest, IMULAI, and so on.
The homegrown tech startups in Indonesia per se have grown rapidly by
the number. They are flocking to tap into the countrys huge domestic
market by competing in a host of business fields, ranging from ecommerce portals to news-aggregation websites (Mahtani, 2012). In their
South East Asia Realtime Blog, The Wall Street Journal listed Top 10 Tech
Start-Ups in Indonesia, which includes Kaskus, Blibli, Detik, Barito Labs &
Ice House, Valadoo, Harpoen, TeknoUp, Urbanesia, Ngomik, and

Dwarapala. Other notable startups include GantiBaju, LewatMana,
DapurMasak, Gojek, Dealkeren (LivingSocial Indonesia), Disdus (Groupon

Indonesia), and the list goes on. These are only a few successful startups
in the country, and the competition is getting more intense by the day.
However, upon closer look, there are hardly any local startup companies
focusing on providing customers with a one-stop service for city-wide

value-added crash course events comparable to the offerings by
RedBalloon, GoDo (Australia), LivingSocial Events (The US), or Kezaar
(Singapore). This paper will introduce and elaborate the value creation
strategy for events prepared by an upcoming Indonesian startup
10

company, AntiBosan, to provide Indonesians with quality training and
1.3.
crash-course events which are tailored to improve middle-class lifestyle.

AntiBosan at a Glimpse
AntiBosan.com is a digital startup company focusing on lifestyle-centered

training and coaching events. The company was established in late 2012
by the present writer (Hanif Widyanto) and Arfian Agus with an aspiring
vision to provide the best online events marketplace experience. In due
course, AntiBosan aims to become the market leader of online booking

service for value-added events in Indonesia.
11
2. A NTI B OSAN : T OWARDS B ECOMING L EADING

O NLINE E VENT B OOKING S ERVICE IN I NDONESIA
2.1.
The Basic Premise

As a startup company, AntiBosan was basically created to answer one of
the most recurring questions in our daily life:
What should I do in my spare time?
Unfortunately, many tend to overlook this seemingly random yet essential

question since it is deemed overly personal, trivial, and unimportant. As a
result, people are left on their own to figure out the answer every time
they are faced with similar situations during their spare times, such as on
weekends, holidays, or even on weekdays after office hour.
F IGURE 5 A NTIBOSAN S V ALUE P ROP OSITION
AntiBosan attempts to answer this very question by looking further into

the basic necessities and demands for value-added events within its
defined target market: well-to-do middle-to-high income Indonesians,
single or married, living in major cities between the age range of 15 to 35

(teenager to young adult).
To begin with, for many people, time is not the kind of luxury they have,
so making sure that they are able to spend their leisure time effectively by
12

having loads of amusing yet educational event alternatives at their
fingertips should appeal to them. AntiBosans value proposition will
provide its customers with unwavering access to scores of curated quality

events in their own city (local events) through the companys website. In
other words, people would have the opportunity to choose whichever

events they find interesting online, book them with ease, and pay for the
events through the various methods of payment offered.
In screening and selecting AntiBosans events, the company will make

every effort to provide customers with fun and engaging value-added
trainings or courses which could develop real-world skills (also known as
being street smart), enrich general knowledge about variety of things,
and ultimately support their lifestyle and social life. The events could vary
from Beginners Cookery Class, Table Manner Course, Fashion Tips
Session, Survival Skills Events, Parkour Training, to Paper Crafting
Tutorial.
The basic features of AntiBosans events should fulfill the following

criteria:
1) Develop real-world skills, users could pick up newly-acquired skills

while having fun and enjoying the events;
2) Fun and engaging, while users might have their own preferences, the
events must have entertaining aspects to them;
3) Local-based, users could select events located in their own city or

neighborhood;
4) Simple and candid, despite the themes, users should be able to

instantly understand and relate with the events;
5) Crash course-oriented, the events should be simple, brief, yet intense

and informative, taking place around 2-5 hours;
6) Lifestyle-oriented, the events should be up-to-date and conform with

the latest trends in society;
7) Deliver value-added experience, the events should provide users with a

sense of newness, something they always wanted to do but might not
realize.
13

2.2.
AntiBosan as Event Curator and Provider

The basic concept of AntiBosan is in line with what Steven Rosenbaum
outlined in his best-selling book Curation Nation (2011), which puts the
company as a content curator which find, organize, contextualize, and
repackage content to make it accessible to us. In this regard, Beth Kanter
(2011) defined content curation as the process of sorting through the
vast amounts of content on the web and presenting it in a meaningful and
organized way around a specific theme.
In this digital age of Web 2.0 1, information is available in huge amount to
the point of overload, otherwise known as content abundance, making it

difficult for people to find meaningful information specifically tailored to
meet their needs. AntiBosan attempts to bridge this gap by finding,
filtering, aggregating, and organizing all of the interesting value-added
events scattered across various websites, forums, mailing lists, groups,
and also offline in the corners of major cities in Indonesia, beginning with
Greater Jakarta as the pilot project.
Arfian Agus, co-founder and Chief Operating Officer (COO) of AntiBosan,

noted that there are actually a lot of exciting events in Greater Jakarta
alone which many people might find interesting and eager to do but are
otherwise hidden from plain sight. These events could be conducted by
event organizers, local communities, or individuals. AntiBosan will

connect these Experience Providers 2 with potential customers online
through the companys website, and eventually offline (in the case of
indoor/field events) once they book and attend the events.
In doing so, in its role as event curator, AntiBosan needs to ensure that
the events offered in their website will deliver the experiences as
promised. The company must set up quality control measures and
standard operating procedures which could be implemented in curating

Webopedia defines Web 2.0 as the term given to describe a second generation
of the World Wide Web that is focused on the ability for people to collaborate
and share information online.
2 The term Experience Providers will be used interchangeably with Event
Providers in this paper, both of which refer to the vendors providing the events.
1
14

the events. This is very important to ensure that the quality and standard
of events offered in AntiBosans website are first-rate and relevant for the
defined target market. Users should also be able to filter the various
offerings on the website based on certain categories. By providing

topnotch curated events, as pointed out by Arfian Agus, AntiBosan seeks
to become the go-to service provider for people who want to find
productive things to do in their time offs.
In accordance with the spirit of event curation in which AntiBosan goes to

seek, sense, and share the finest events for its users, the company will also
implement a feature called Bucket List wherein users could suggest the
kind of events they want to do. The Bucket List concept was inspired from
a movie by the same name featuring Jack Nicholson and Morgan Freeman
back in 2007, in which a couple of terminally ill men escape from a
cancer ward and head off on a road trip with a wish list of to-dos before
they expire.
F IGURE 6 A NTIBOSAN S B UCKET L IST
This wish list feature will become an inherent part of the AntiBosan user
experience, so that users could actively participate in shaping the list of
events offered by AntiBosan. The user feedback submitted through the

15

Bucket List will be personally screened, reviewed, and taken into
consideration by AntiBosan team, and by popular demand, the company

2.3.
could offer the events.

The Business Aspect
As mentioned earlier, the most fundamental aspect of any startup
company is its ability to execute a repeatable and scalable business

model with rapid growth at the core of its business strategy. Likewise,
according to Jaka Wiradisuria, co-founder and CEO of Indonesian digital
startup Valadoo.com (popular online travel experience provider), the key
to a successful startup is the ability to find good business-oriented model,

backed by solid revenue generation strategy. In other words: it is always a
good policy to formulate sound monetization schemes before all else.
Specifically, Mr. Wiradisuria stressed that by having a business

orientation, startups would be able to critically think about (customers)
problems that we could solve through the startup instead of simply
what kind of website or application that we should develop next.
Moreover, he also argued that startup founders need to identify the kind
of monetization scheme that their company sought after: whether it is
Transaction-based (typical e-commerce websites in which profit comes
from revenue margins) or Traction-based (social networking sites or

portals where the revenue comes from ads).
AntiBosan attempts to address this critical issue by developing a strategic
business plan which is aimed at high growth and relatively low
bootstrapping3 cost. As far as the retail e-commerce model is concerned,
AntiBosan will position itself as an online event marketplace which
connects people with experience providers (i.e., event hosts, merchants,
vendors, organizers, coaches, trainers, etc.) as well as online communities

with scheduled offline events.
3 Bootstrapping is defined as starting a business without external help or capital.

Startups usually finance the development of their company in the early stage
through internal cash flow.
16
Online
Classifieds
Marketplace
General
Retail
Daily Deals
F IGURE 7 R ETAIL E-C OMMERCE M ODELS (S OURCE : V ERITRAN S I NDONESIA )
The revenue generation for AntiBosan will come from several sources:
1. Profit-sharing. AntiBosan will work in partnership with various select
local Event Providers in a certain city (for instance Jakarta as the pilot
project) by offering event placement in AntiBosans website to reach
much wider audience, complete with a dedicated page detailing the
event from description, photo/video, pricing, location, schedule, user
review as well as terms and conditions. Most importantly, AntiBosan

will also provide Event Providers with the registration and payment
system, effectively leaving them with less time to deal with the
administration hassle, and more time to focus on their events.
AntiBosan will then charge around 25-35 percent (depending on the
event) for every user who signs up to join the event through the
website.
Ferry Tenka, CEO of Groupon Indonesia, explained that charging

commissions from merchants is the kind of business model that they
are using, and it has proven to be profitable. However, in the case of

daily deals used by Groupon and LivingSocial, they have now reached
a saturation point in Indonesia, while this is definitely not the case

with AntiBosans entirely different set of Event Providers.
Another benefit of partnering with AntiBosan for Event Providers

using this scheme is the free listing policy, wherein the company will
17

not charge the whole process and only benefit from the profit-sharing
scheme.
2. Subscription. Event Providers could also advertise their events
directly at AntiBosan website. These so-called premium listings will

receive the same features as the profit-sharing scheme, but with some
additional benefits depending on the contract. The proceeds from
users who register for events through AntiBosan will all go to the
providers. As far as the end-users are concerned, they will not be able
to tell the difference between the entries for profit-sharing and
subscription scheme, with the exception of some promoted listings

that will be featured on the front page.
3. Advertisement. As the website grows bigger and garners wider user
base, AntiBosan could consider selling some spaces on the website to
sponsors. However, these advertisements must be kept to a minimum

to keep the website from getting too cluttered and retain its aesthetic
value.
4. Event Organizer. On top of partnering with Event Providers, AntiBosan

will also host some of its events to reap a larger chunk of the revenue.
This can be done once AntiBosan is able to employ or hire its own
coaches or trainers. The company can also invite users who possess
certain sought-after skills to team up with AntiBosan to provide

related events (and split the revenue from the event with the
2.4.
company).
The Marketing Challenges

As an upcoming startup company with a fairly inventive concept to offer
to the market, AntiBosan is faced with several marketing challenges that
will be further addressed in the following chapter. These are:
1) Corporate and business-unit objectives and strategies of AntiBosan in
order to understand the market and introduce the whole concept

behind event marketplace;
2) Marketing Analysis
for
AntiBosans
target
market,
including
competitive forces and segmentation, targeting, and positioning;
18

3) Strategic Marketing Program to penetrate the market and achieve high
growth (also known as the marketing mix);
4) Marketing Strategies for Pioneering Startup Company, in which
AntiBosan should focus on niche market before expanding to larger

audience.
19
3. A NALYSIS AND R ECOMMENDATION : M ARKETING

M ANAGEMENT FOR A NTI B OSAN
3.1.
Corporate and Business Unit Analysis

AntiBosans vision as a one-stop online booking service would be to
provide the best online events marketplace experience in the country.
This is strengthened by the companys objective to become the market
leader of online booking service for value-added events in Indonesia.
As both startup and pioneer in the industry, AntiBosan strives to

maximize its limited resources to make sure that the company will
achieve high growth in less than two years of operation. In order to
accomplish such ambitious target, AntiBosan need to have a sustainable
competitive advantage at the corporate level by developing resources that
other firms do not have, that take a long time to develop, and that are
hard to acquire (Barney, 1991).
In the case of AntiBosan, this will be achieved through several strategies:
1) AntiBosan will expand its user base as expansively as possible by

offering freemium 4 events listed alongside the paid ones on the
website. The freemium events will be provided in collaboration with

handpicked online (or offline, if any) communities which have
scheduled offline (outdoor/indoor) events or gatherings between its
members. The partnership will benefit both parties: AntiBosan could

list all the best local community events (hence attracting a lot of
potential customers in the process), while partner communities could

get free advertising and new members. For example, in Greater
Jakarta, AntiBosan could collaborate with a lot of exciting

communities such as IndoRunners, Parkour Indonesia, Indonesia
Berbagi, Komunitas Paper Replika, Kaskus Travellers, and many
others.
In Cracking Zone (2010), Prof. Rhenald Kasali described freemium as a

competitive power in which companies offer products/services free of charge
with premium quality.
20

2) Antibosan will also attempt to rapidly expand its user base and
maintain engagement through its journalistic-style blog which is going

to cover all the excitements of joining the events provided by
AntiBosan (among other things). In some occasions, the company
could also invite famous guest bloggers or selebtwit 5 to share their
AntiBosan experience, and ask for their help in spreading the news
about the company to their followers.
To equip the company with a solid line of defense against forthcoming
competitive conditions, AntiBosan will adopt the marketing-orientation
strategy (instead of production-orientation) with the primary focus on

customers needs and market opportunities (Mullins & Walker, 2013). To
do so, the company will provide as many events as possible to the
customers while maintaining the websites user interface to be sleek and
simple. In the promotion end, AntiBosan will put emphasis on the benefits
of joining the events and ensure that the company could satisfy
3.2.
customers needs or solve their problems.

Market Opportunity Analysis
As a startup, preparing an all-inclusive Market Opportunity Analysis is
important to provide a framework for the company in evaluating the

attractiveness of the opportunities they encounter. This could be achieved
by assessing the nature of the company and its people, the environmental
context in which it operates, the competition it faces, and the wants and
needs of the customer it seeks to serve. In addition to market assessment,
AntiBosan needs to firstly understand the competitive nature of the

industry and verify the business potential, especially since the event
marketplace scheme offered by AntiBosan is relatively new in Indonesia.
In order to get a better understanding about the industry, AntiBosan

needs to analyze the forces affecting its long-term attractiveness. This can
be done by utilizing Porters Five Competitive Forces (Porter, 1980).
5 Selebtwit is the Bahasa Indonesia abbreviation for Selebtritas Twitter or

Twitter Celebrity, a popular slang term used to refer to famous Indonesians on
social media website www.twitter.com.
21

Threat
of new
entrants
Bargaining
Power of
Suppliers
Rivalry
among
existing
competitors
bargaining
power of
buyers
Threat of
Substitute
Products
F IGURE 8 M AJOR F ORCES T HAT D ETERMINE I N DUSTRY A TTRACTIVENESS
1) Rivalry Among Competitors

As a pioneer for one-stop online booking service for value-added
events in Indonesia, AntiBosan currently does not have a lot of

competitors. However, there are some noteworthy existing local
startups which have comparable concepts with the company (refer to

Table 2). Since there are no direct competitors at the moment,
AntiBosan has an advantage which must be capitalized on. However, it
also means that AntiBosan needs to put more effort to educate the
market.
No
1
Startup
Fokado
Website
www.fokado.com
Tutor
www.tutor.co.id
Eversiti
www.eversiti.com
Medidu
www.medidu.com
Concept
Gift giving site using vouchers, which
includes events (experience)
Tutor marketplace; connecting students
with tutors
Tutor marketplace for students and
tutors alike
Online courses
T ABLE 2 A NTI B OSAN S P OTENTIAL C OMPETITORS
Outside of Indonesia, there are several sites which offer similar
concept with AntiBosan, such as Living Social Events (USA), GoDo, Red
Balloon (Australia), Kezaar, and Learnemy (Singapore). However, as a
result of the different (local) markets, they are not considered as

direct competitors of AntiBosan.
22

2) Threat of New Entrants
New competitors would stiffen the competition and saturate the
market because of the market share rivalry. For events marketplace
business, the entry barrier is relatively low, which means new players
can easily come into the market. Therefore, AntiBosan needs to make
the most of the time as the pioneer in the industry to uniquely position
itself as the authoritative source for event marketplace by having a
high growth rate and expanding to new markets (i.e., new cities) as
soon as possible.
3) Bargaining Power of Suppliers

Since AntiBosans core business strategy relies on Business-to-
Business (B2B) relationship with Event Providers as the supplier, the

company needs to ensure that their suppliers are satisfied with the
partnership. However, since the nature of the business benefits both
parties 6, AntiBosan should be able to maintain the relationship and
uphold supplier satisfaction. This should in turn minimize bargaining

power of the Event Providers.
4) Bargaining Power of Buyers
Being a pioneer and one of the few players in the industry should
minimize the bargaining power of AntiBosan. If the company is able to
formulate and carry out a good marketing strategy which could

position the company on top of customers mind whenever they have
time offs, AntiBosan should definitely come on top and build a good
rapport with its customers.
5) Threat of Substitute Products

The convenience of being able to choose fun things to do on ones
leisure time from a variety of events online through AntiBosans
website could easily be replaced with hanging out to the malls with
friends, watching movies on the theaters, or just simply staying put,
resting at the house, among other things. However, based on a small
This is the case since providers would want to tap into

AntiBosans supposedly vast user base
23

survey conducted by AntiBosan, most of the activities done by people
on their free time are basically unproductive and do not add any value
for them. On the other hand, there are currently few substitutes (if
any) for AntiBosans list-of-events offerings. Some websites do list

weekend events in certain area, like Urbanesia or Jakarta Events, but
none of them work exclusively with the event providers in which

users could register (and purchase tickets for paid events) directly
from the website to join the events.
Marketing Mix Element
Being a startup also requires AntiBosan to develop its marketing
program components (marketing mix) which are controllable and
allow for the company to carry out a marketing strategy in pursuit of

the firms objectives (Mullins & Walker, 2013). But before taking the
decision, it is also important to understand that with regard to the

consumer, AntiBosans offerings fall into low-involvement consumer
behavior, since the price range of less than Rp 1 million for the
middle-to-high income target market is considered relatively small.
1) Product Decisions
Regardless of the level of consumer involvement, AntiBosan needs
to have a lot of compelling event benefits which would ensure the

companys long-term success. In this regard, AntiBosans business
model should secure the availability of various first-rate events

which should entice customers to buy.
2) Place (Distribution) Decisions
Customers in low-involvement decision are generally very

concerned when it comes to convenience in purchasing. Therefore,
AntiBosan should ensure that its website is easily accessible (local
server if necessary), has a clean, sleek, and straightforward design

with friendly user interface, comes equipped with various
convenient and secure payment options (online and offline), and
so on. In short: providing a convenient user experience.
24

3) Price
Low-involvement
customers
are
generally
price-sensitive.
Therefore, AntiBosan should be able to strike a certain degree of
balance between price offered and level of service. The company

could also offer special promo to maintain user engagement and
make them feel valued.
In general, the price of events offered by AntiBosan is projected to
be around as small as Rp 50,000 to an upward of Rp 1,000,000 per

event, depending on the size, quality, exclusiveness, and other
unique aspects of the events.
4) Promotion
It is quite difficult to get across information to low-involvement
customers using conventional method of promotions. Therefore,

AntiBosan will promote its services by fully utilizing online ad such
as Google AdWords, as well as social media (e.g. Facebook, Twitter,

etc.), building up trust through quality events and excellent
customer
service, and
finally banking on
word-of-mouth
promotion by satisfied customers. AntiBosan will also conduct

offline promotion by going directly after strategically targeted
places such as schools, universities, communities, etc.
Targeting Attractive Market Segments
Many experts argue that some of the most important tools for
marketers to build their effective marketing programs are market

segmentation and target marketing, along with differentiation and
brand positioning. Table 3 below explains AntiBosans assessment of
its market.
No
Strategy
Segmentation
Targeting
AntiBosans Decision
Male or Female, between 15-35, Middle to high
income
Growth-market strategy: focusing on major cities
in Java where the market for quality events is
lucrative, and then expand to cities in other
islands.
25

3
Positioning
Differentiation
Aims to become customers top-of-mind service

provider whenever they want to find value-added
activities to do in their spare time.
Online event marketplace which provides
relatable varieties of interesting events with nofrills user experience and straightforward booking
service.
T ABLE 3 S EGMENTATION , T ARGETING , P OSITIONING , AN D D IF FERENTIATION OF A NTI B OSAN
Strategic Marketing Programs for Pioneers

Even though new product-market expands rapidly, it is still possible
for startup companies with limited resources like AntiBosan to be a
successful pioneer. This can be done by focusing their efforts on a

single market segment by implementing niche penetration strategy
(Mullins & Walker, 2013). Such strategy can help small-time pioneers
like AntiBosan to gain the most from its limited funding and avoid
going directly against upcoming competitors with deep pockets.
The niche penetration strategy is suitable for the case of AntiBosan
where the new market is expected to expand rapidly and there are a
number of different benefit or applications segments to appeal to. In
order to do so, AntiBosan needs to maximize number of adopters in its

target segment and maintain leading share position in that segment.
As previously mentioned, AntiBosan will approach this by focusing on

Greater Jakarta as its pilot project, before proceeding to other major
cities, one city at a time as soon as the company is well equipped.
26
4. C ONCLUSION
As an upcoming startup company in South East Asias largest economy,
AntiBosan should be able to take advantage of its ever-expanding middle income

market. In the midst of discouraging news about the relentless efforts by
developed countries to recover from 2008 economic crisis, Indonesia has been
able to consistently record moderately high economic growth rate thanks to its
unique GDP structure which is dominated by domestic spending.
Indonesias sound macroeconomic achievements have also begun to resonate on
other sectors as well, including its e-commerce landscape. Gone are the days
where Indonesian customers were stereotyped as risk-averse society who avoids
online shopping on account of poor security. Incidentally, this is also followed by
the rise of online payment infrastructure in recent years through the inception of
several online payment gateway services in the country. Specifically, the startup
ecosystem in Indonesia per se is also beginning to shape up through the upsurge

of quite a few venture capitals, startup gurus, communities, and others.
As a new player in the startup domain, AntiBosan comes into sight as a one-stop
online booking service solution for value-added events which is still difficult to
come by in Indonesia, if at all. By focusing on local events, one (major) city at a
time, AntiBosan positions itself as a top-of-mind quality events provider to spend

ones free time. The company will collaborate with various Event Providers from
several walks of life, including not-for-profit communities and for-profit small-
to-medium businesses which are pertinent to AntiBosans undertakings in order

to diversify the events offered by the company, hence attracting potential
customers to the website.
By implementing methodically planned competitive strategies and ensuring

comprehensive implementation scheme, AntiBosan believes that it could achieve
its ambitious plan of becoming a leading online event booking service in

Indonesia.
27
B IBLIOGRAPHY
Barney, J. B. (1991). Firm Resources and Sustained Competitive Advantage. Journal of Management 17, 99120.
Blank, S. (2010, January 25). What's a Startup? First Principles. Accessed on December 15, 2012, from
Steve Blank: http://steveblank.com/2010/01/25/whats-a-startup-first-principles/
DailySocial & Veritrans. (2012). eCommerce in Indonesia. Jakarta: DailySocial and Veritrans.
Euromonitor International. (2010). Statistical Database. Indonesian Country Report.
Evans, P. (2012). Indonesia - Telecoms, Mobile, Broadband and Forecasts. BuddeComm.

Kasali, R. (2010). Cracking Zone. Jakarta: PT Gramedia.
Mahtani, S. (2012, October 9). Indonesia's Top 10 Tech Start-Ups. Accessed on December 15, 2012, from
Wall Street Journal: South East Asia Realtime:
http://blogs.wsj.com/searealtime/2012/10/09/indonesias-top-10-tech-start-ups/
Mamuaya, R. (2011, June 29). A Simple List of Indonesian Tech Investors. Accessed on December 15, 2012,
dari DailySocial: http://en.dailysocial.net/post/a-simple-list-of-indonesian-tech-investors
Markplus Institute. (2012). Memahami Suara Netizen Indonesia. Jakarta: Hermawan Kertajaya.
McKinsey Global Institute. (2012). The Archipelago Economy: Unleashing Indonesia's Potential. Jakarta:
McKinsey Global Institute.
Mullins, J. W., & Walker, O. C. (2013). Marketing Management, A Strategic Decision Making Approach.
Singapore: McGraw Hill.
Porter, M. (1980). Competitive Strategy. New York: Free Press.
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Learned: http://www.startuplessonslearned.com/2010/06/what-is-startup.html
Rosenbaum, S. (2011). Curation Nation. McGraw-Hill.
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from Global Times China: http://www.globaltimes.cn/content/722705.shtml
28

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ANTIBOSAN.

PREPARED BY: HANIF A. WIDYANTO

MARKETING MANAGEMENT REAL-LIFE PAPER

Indonesian Consumer Growth and E-Commerce Landscape

expansion in the middle-income class, Indonesia has experienced

remarkable consumer market transformation in the last few years.

According to a 2011 survey conducted by Bank of Indonesia (BI), the

population, while the high-income segment with a net income of more

A study by McKinsey Global Institute (2012) also revealed a promising

report, the US-based consulting firm projected that by 2030, Indonesias

Figure 1), which constitute around 71 percent of the population in cities,

MARKETING MANAGEMENT REAL-LIFE PAPER

Euromonitor International (2010), a London-based market research

outfit, also produced similar findings regarding the countrys consuming

annual disposable income of over US$10,000 (in constant terms), but by

This would conveniently position Indonesia as the seventh-largest

decade among any advanced economy in the Organisation for Economic

Indonesian GDP Growth

F IGURE 2 I NDONESIAN GDP G ROWTH 2007-2011 (S OURCE : BI)

expanded at a robust average pace of 6 percent since 2007, which also

effectively breaking the milestone middle-income barrier of $3,000 per

capita in 2010, which many economists believe would result in

MARKETING MANAGEMENT REAL-LIFE PAPER

increased from $3,469 in 2011 to $3,848 in 2012. This growth is expected

to reach $4,190 in 2013 and $4,568 in 2014, with strong domestic

consumption and favorable productivity growth on top of relatively

In this regard, McKinsey reported that, unlike archetypal Asian tiger

economies which are export-driven supported by its emergent workforce

Indeed, as noted by Euromonitor International, consumer expenditure is

the primary driving force of the Indonesian economy, with private

purchases contributing around 55-60 percent of GDP, in line with BIs

findings. Improvements in household conditions have triggered

Regulation Department. This strong consumer expenditure has also

proven to insulate the Indonesian economy from external shocks of the

characteristic of Indonesian consumer market, which is the relatively

young demographic profile wherein 60.8 percent of the population in

(US$3,422). In addition, unlike the aging demographic trends in many

predicted to remain positive until 2025, contributing an annual 2.4

Master of Management University of Indonesia (MM-UI)

MARKETING MANAGEMENT REAL-LIFE PAPER

which are done business-to-business (B2B), business-to-consumer (B2C),

consumer-to-business (C2B), and consumer-to-consumer (C2C). The

In order to better understand the nature and extent of Indonesian e-

commerce landscape, one needs to look at the fundamental aspects of the

digital ecosystem in the country. Firstly, it is worth noting that the

number of Indonesian internet users towards the end of 2012 has

reached 61.08 million people, which is an increase of 10 percent from the

Indonesian Internet Users 2009-2015

The Indonesian Internet Service Provider Association (APJII) also

reported similar trend (Figure 3) with a total Indonesian internet users

expected to reach a staggering amount of 139 million people by 2015,

Master of Management University of Indonesia (MM-UI)

MARKETING MANAGEMENT REAL-LIFE PAPER

phone subscribers base has even surpassed total population in early

penetration rate of 107 percent (Evans, 2012). This figure is important

Indonesian Mobile Phone Users

% of Mobile Phone Users

access to the internet also means that Indonesia is widely recognized as

the next big thing in digital (social) media. According to DailySocial, it is

currently the second largest country on Facebook with more than 43

upward of 12 percent of total tweets globally. Facebook and Twitter are

Having mentioned the promising figures, it is then curious to observe that

e-commerce landscape in Indonesia still accounts for only a small fraction