The Power of Positioning: Introducing an Organic Food Official Distributor in the Competitive European Market

Client: Organic Food Indonesia Year: 2019

As the official distributor of Indonesian organic products, OFI entered the European organic product market with a well-planned brand-oriented strategy and strong positioning.

The collaboration between Mega Innovation Organic (MIO) and local farmers has succeeded in making Indonesia one of the world's producers of quality organic products. Organic Foods Indonesia (OFI) sees this potential by becoming the official distributor of MIO for the European market, especially in Germany. By prioritizing the principle of fair trade, OFI has a strong distinction by linking MIO values. With OFI's business potential in the European market, we see an absolute need for OFI to acquire a new market with a strong positioning strategy supported by a well-planned brand strategy and brand management.

CASE
"From Problem to Potential: Turning the competitors of the European market into OFI's positioning"

OFI is a joint venture between MIO and Indonesia Consult RS GmbH (IndoCon) based in Germany. This collaboration creates a fresh business potential for OFI as the official distributor of organic products from Indonesia. However, we are aware that OFI is facing challenges in penetrating the European market as it requires careful preparation. Interestingly, our findings show that the European organic product market has been dominated by business players from India and Vietnam.

Seeing the market situation, the first thing that becomes our concern is OFI's positioning. To devise a strong positioning for OFI, we conducted observations focused on the performance of competitors. There are 3 indicators that we pay attention to when making observations, namely business potential, quality of products sold, and the business model of each competitor. We also observe the market conditions and business potential in Europe, especially Germany, to find out the most appropriate positioning strategy for OFI.

With a strong positioning, OFI is able to come up with a clear purpose and value proposition in entering the European market. Being able to display OFI as a B2B player will be very valuable, as a clear profile will facilitate communication with the target market.

INSIGHT
"The strategy of building the OFI brand is to answer the needs of the market that wants high-quality organic products at affordable prices."

OFI requires a strong positioning strategy to enter the European market, as an official distributor of organic products from Indonesia. This positioning will make OFI appear unique in the European organic market, appearing more attractive and valuable. Armed with the results of observations regarding the performance of competitors, we began to determine the position of OFI in the European market. We develop a brand strategy, brand identity, and brand communication strategy based on OFI's positioning in new markets.

We guide OFI all the way to the activation point to ensure that all communication touchpoints and strategies implemented are in accordance with OFI's positioning. Thus, the market can identify OFI easily. Meanwhile, the collaboration processes and workshops that we conduct with OFI cross borders. The time difference between Indonesia and Germany is no longer an obstacle for us to help OFI appear firm and distinctive to acquire new markets.

RESULT
"A strong positioning strategy helped OFI to emerge as an official unique distributor to the European organic market"

The collaborative work between the basicludo team and OFI resulted in a strong positioning strategy. OFI has successfully emerged as the official distributor brand of quality organic products from Indonesia at affordable prices for the European market. This is proven by the number of potential buyers who managed to identify OFI and what products were offered when OFI participated in organic product festivals in Europe. In addition to strengthening OFI as a brand, with the principle of fair trade as added value, Indonesia has also gained exposure in Europe as a producer of quality organic products.

OFI is able to distribute not only the product but also the inherent values even before the product is produced. The success of OFI has even brought a sense of pride because it can bring products produced by Indonesian farmers directly to customers. OFI's strong brand identity has also brought OFI to become a major partner for a chocolate company in Germany. Reaching new markets worldwide is indeed full of challenges. Collaborative work helps the basicludo team find the right strategy through positioning and strengthening identity so that OFI appears optimally as a brand with character and competitiveness in the market.

Being the first is a strategic way to pioneer the world, and it always needs strategy.