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Marketing Strategy for Ramadhan 2024: High-Conversion and High-Cost?

Ramadhan Marketing Strategy
Table of Contents

The festivities of Ramadhan in Indonesia don’t just stop at the heartwarming atmosphere and precious moments. It transcends into the very culture of Indonesia itself, generating buzz and euphoric feelings among the people.

Naturally, Ramadhan traditions hold tremendous influence in the business scene, often labeled as the biggest marketing event in Indonesia. The impact of Ramadhan on Indonesia’s economic state is undeniable, with a notable surge in sales and spending across various sectors.

According to the last survey by The Trade Desk, 88% percents of Indonesians planned to make significant purchases during Ramadhan, which usually involves personal needs like fashion and digital goods. The increase in sales for daily necessities goes without saying, noting how Ramadhan calls for a special celebration.

This surge in consumer activity presents a lucrative opportunity for businesses and brands. However, many tend to overlook the risks and high costs associated with Ramadhan opportunities. It takes an intricate business strategy to manage high-risk high-return marketing during Ramadhan, hence why this article will talk about everything about Ramadhan marketing plan, from understanding the consumer itself to the great plan itself, risks included.

 

The Key is to Identify Consumer Behavior

Before making hasty preparations for a grand business plan to welcome Ramadhan, it is of great importance to have a clear understanding of the common Indonesian consumer behavior during Ramadhan.

Consumer behavior theory itself is a great approach to grasping the thought process and decision-making of common Indonesian people when making purchases during Ramadhan. Indonesian consumer behavior may vary based on preferences or priorities on the nature of the product itself.

During Ramadhan, consumers tend to focus on stocking up on essential items and daily necessities in preparation for festive gatherings. Therefore, groceries, food, and beverage products may expect a skyrocket in demand and sales. In response to this high demand, many people have similar business ideas to make an F&B pop-up store during Ramadhan market.

Additionally, due to the yearly Ramadhan bonus given to the workers, personal items such as fashion and digital goods also receive a huge revenue boost. However, it is an entirely different matter for luxury goods, as the target market and approach differ greatly from the average Indonesian consumer behavior.

 

Joining the Parade of Discounts is A Foolproof Business Plan

Considering the majority of Indonesian consumer behavior, businesses that partake in the “parade of discounts” during Ramadhan typically experience a surge in traffic, transactions, and brand engagement. The psychology behind discounts during this period is compelling—customers are more inclined to make purchases when they perceive they are receiving a good deal. 

Despite the huge traffic from potential customers, not all brands can adopt a one-size-fits-all approach. For the brands that fall under the daily necessities and affordable personal item category, such as food and beverage, apparel, and personal care, the potential of high conversion rate makes them ideal candidates for aggressive marketing campaigns.

Conversely, hefty purchases like digital goods or even luxury goods may not benefit from the intense marketing strategy. A more nuanced approach to marketing strategy during Ramadhan is a good fit for these brand industries. Rather than heavy discounts, these brands can explore value-added or limited-time promotions to maintain customer engagement without compromising profitability.

Safe to say that before diving head first into Ramadhan festivity, business owners need to understand their brand position in the list of Ramadhan priorities for the majority of Indonesian people. Failure to do so may result in more loss than profit, as giving significant discounts and hosting special marketing events or large-scale campaigns requires a not-so-little budget. 

 

Beware of the Rising Ads Bid

It’s crucial for business owners to recognize that the high cost of marketing during Ramadhan doesn’t solely stem from the discounts offered. After all, making creative marketing campaigns and promotions during Ramadhan comes hand-in-hand with the attempt to reach more audiences, hence the aggressive Instagram ads and TikTok ads. 

Business owners must be aware of the rising costs of advertising during Ramadhan, as the demand for ad space intensifies during this competitive period. Since the majority of online ads exercise a bidding system, it’s only fair that the best ad space will go to the highest bidder. 

The need to bid higher for advertising space in a saturated market also contributes significantly to the overall marketing expenditure. Simply put, the cost of putting up Instagram ads, TikTok ads, and even Google ads becomes more expensive during major marketing events. This increased expense can pose a challenge to businesses, especially for startups with limited marketing budgets.

Even so, the allure of discounts and promotions for Ramadhan and Eid preparation during this festive season is unmatched. It is highly likely the profit will surpass the cost by large. Thus, partaking in the Ramadhan celebration is a high-cost and high-conversion moment for brands, calling for careful planning and budget allocation to ensure a balanced approach to marketing efforts.

 

Ramadhan Calls for Strategic Ads Plan

Despite all the business talk about risks and profits, Ramadhan is a huge opportunity for businesses to prosper. Taking into account the meticulous marketing strategy-building process, even the strategic ads plan for the most efficient budget, it might be a painstaking effort for some business owners. Luckily, Avond Studio is ready to do all the grunt work for your brand to welcome Ramadhan. Come and chat with us, we love talking about brands, designs, and businesses. 

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