Adapting Marketing Communications in Indonesia’s Deflationary and Politically Uncertain Environment: A Porter’s Five Forces Approach for FMCG Brands

Abstract

This paper looks at how FMCG brands in Indonesia adjust their marketing strategies during times of deflation and political uncertainty, like the upcoming Pilkada and presidential elections. Using Porter’s Five Forces model, the study explores how increased competition, changing consumer behavior, and rising pressure from substitutes push companies to rethink how they market their products (Kotler & Keller, 2016; Porter, 1980). Political instability adds another challenge, affecting investment and business planning (Tjandrasa, 2022). With data from Badan Pusat Statistik (2024), this research highlights strategies such as promotional pricing, product differentiation, and loyalty programs that companies use to keep customers engaged. The findings show that while deflation gives businesses the chance to cut costs, they also need to be flexible in their marketing to maintain customer trust during uncertain times.