International Marketing Communication: UAE vs Indonesia

Introduction to International Marketing Communication

Organizations that engage in global marketing face significant challenges, particularly because cross-border marketing involves navigating diverse cultural backgrounds. Each country has distinctive needs relating to the goods produced for its population, and international marketing therefore requires a comprehensive understanding of the target market. This paper provides a comparative review of the differences and similarities in the marketing needs of the UAE and Indonesia (Govers, 2009).

The aim of marketing communication is to convey accurate information to a targeted group of people. In both Indonesia and the UAE, the populations are largely Muslim. Any message delivered to consumers must therefore be carefully considered to ensure it is helpful to the brand being marketed. A well-designed communication strategy guides the choices made at each level of a marketing campaign (Gasper, 2004).

The Indonesian economy has been growing steadily, unlike the Dubai economy, which was significantly affected by the global financial crisis. Indonesia has ranked among the five fastest-growing G-20 economies for several consecutive years, with a projected economic growth rate of approximately 6.4%. Nevertheless, the country's traditional beliefs play a noteworthy role in shaping its business culture, and this cultural influence is clearly reflected in the advertising regulations that govern the market (Feraco, 2002).

From a general social perspective, Indonesian society operates as a collectivist social establishment, meaning people place a higher value on group interests than on individual ones. The family is consistently placed ahead of business or personal responsibilities. Marketers must therefore understand the common interests of the population when developing advertisements. Relationships are also highly valued, and personal contact between parties forms the foundation of business relationships. Both Indonesia and Dubai have populations that are more than ninety percent Muslim, and in both countries religion is a central consideration in business (Brassard & Acharya, 2007).

Principles Governing Marketing Regulation

Indonesia has multiple regulatory bodies overseeing its advertising industry, including the Indonesian Broadcasting Commission, the Advertising Council of Indonesia, and the Association of Advertising Agencies. The base principle, however, is self-regulation within the advertising industry. These regulatory bodies collectively seek to preserve Indonesian culture — a stance that contrasts with Dubai, where the market is more liberalized and local cultural considerations play a lesser role in advertising governance (Amant & Kelsey, 2012).

Several restrictions in the Indonesian marketing environment are designed to promote gender equity, protect children, and minimize exploitation. The country restricts the advertising of alcohol and baby food products in mass media. Direct marketing of cigarettes is also banned; cigarettes may only be marketed in an implicit manner (Donnelly, Harrison, & Megicks, 2009). The use of the word "Halal" is restricted to food products that have been authorized by the Indonesian Ulama Council (Go & Govers, 2011).

A general ban applies to the advertisement of firearms and gambling. The incorporation of religious messages in advertisements is also prohibited. The Indonesian government restricts the advertising of medical-related products to over-the-counter items only. The UAE, by contrast, imposes intense restrictions on the marketing of all healthcare-related products. The Ministry of Health must approve any healthcare advertisement before it can run, and that approval is restricted to specific areas and time slots. The herbal medicine industry is tightly controlled, with minimal advertising permitted unless supported by satisfactory scientific research (Cohen, 2006).

For a broader overview of how advertising regulation operates across different national contexts, the variation between Indonesia's self-regulatory model and the UAE's ministry-led approval process illustrates how the same regulatory goals — consumer protection and cultural preservation — can be pursued through very different institutional mechanisms.

Case Study: Danone Group in Indonesia and UAE

Over the years, Danone Group has intensified its focus on the Indonesian market across different market segments. Danone Group is a multinational corporation engaged in the manufacture and distribution of dietary supplements and various food products. The business has concentrated its marketing campaigns particularly on the more affluent segment of the population. Despite high restrictions on the use of local models in commercials, the corporation has been able to develop effective campaigns (Sen, 2000).

An English-language commercial would only reach the small proportion of English-speaking citizens in Indonesia. Nevertheless, Danone has run English commercials in the country in the past. One such example is the Nutrilon milk powder advertisement. While the population is generally aware of the benefits of milk for children, uptake of the product has been slow. Part of the confusion arises from the government's restriction on the marketing of food products designed for infants, which leads the public to believe there may be a problem with such products. Danone's well-established research and development division works to ensure that its baby products deliver all the necessary nutrients for healthy infant growth (Lesher, 2012).

In the past decade, several advertisements for Nestlé products have won awards in Indonesia for best television commercial. The advertisement titled "Fish" received multiple awards in 2006 and 2007. Implemented using local models and agencies such as Publicis, it successfully communicated its message to mothers across the country (Rehman, 2008).

Breast milk substitutes are highly restricted in Indonesia. Healthcare workers may only receive free samples for research purposes, not for distribution to mothers or infants. Incentives for breast milk substitutes directed at mothers are prohibited, and marketers must maintain minimal contact with mothers. This stands in contrast to the UAE, where breast milk substitutes are marketed in a more moderate and permissible manner (Meek, Nicholson, & Sherratt, 2009).

The Dutch company Danone Group has successfully entered the UAE market, with many of its products available in common retail stores throughout the country. The Nutrilon milk powder was previously marketed through mass media on a moderate basis. However, following the establishment of more stringent regulations, the company shifted its focus toward point-of-sale promotions. Many health facilities in the UAE also display banners and calendars featuring the Nutrilon brand name.

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