WIGGO Expansion to Indonesia
Market Feasibility Study Report 2012

Prepared for:
Board of Commissioners of WIGGO Retail Plc.

A report researched and published by:
Hananto Consulting Ltd (Jan 2013)

Name

: Djati Hananto S

Student ID

: STU34874

Word Count

: 4265

Submission Deadline : 21 January 2013

The contents of this report are intended to fulfill the assignment in Marketing Management
Assignment of ARU MBA Project Management program. All concerned entities such as WIGGO and
Hananto Consulting Ltd are fictitious but the facts in this report are believed to be correct at the time of the publication.

@ Hananto Consulting Ltd, 2012.

Consulting

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Table of Contents

1

EXECUTIVE SUMMARY
Providing further discount by club card for loyalty reward is also suggested.
3. Place: Jakarta including its satellite cities has the highest demand of Wiggo’s retail business. It can absorb more than 70% of the current expansion plan. Wiggo’s simple store concept, with 1400sqm and sells 500-1000 products, needs to be maintained as it is beneficial for rapid expansion and reaching suburban residential area.
4. Promotion: Mass media both electronic and printed will be necessary for heavy promotion. Other softer promotion will be on the internet and store flyers. Discount gimmick and club card join promotion with other tenants will be the main and continuous promotion line.
Total investment needed is US$2.540.000. Using normal gross margin rate of 12%, it is expected that Wiggo store will reach Break Even Point in 1 year 6 month then reaching the BEP on initial investment at early year 5 of operation.
However, this was not taking into account the yearly growth rate to achieve in each store. To optimize this figure, yearly review on profitability and cost should be conducted continuously.
WIGGO to Indonesia - Market Feasibility Study Report, 2012.

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2

SITUATIONAL ANALYSIS
2.1

Overview of Indonesia

Indonesia is in fact the fourth largest country on earth comprises over 17,508 islands and go to form a land mass