To get a better understanding about this, please start reading from the first post of the series.
THESIS: The Marketing Communication Strategy of Blue Bird Taxi To Maintain Market Leader Position After Using The Highest Tariff:
- Part 1 : Introduction & Book Cover
- Part 2 : Research Originality Statement and Acknowledgement
- Part 3 : Abstract
- Part 4 : Table of Contents
- Chapter I : part 5, part 6
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(Chapter I continued...)
To
further understand the competition in the taxi market, we should know the
industry background in general. This category has 3 main players as shown in
Table 1.1 based on the 2010 Indonesia’s Most Admired Companies award, or IMAC
awards, which are Blue Bird Group, Express Group and Putra Group, with Blue
Bird Group as the market leader and the largest taxi company.
Table 1.1
Indonesia’s Most Admired Companies Award
2010
Taxi Industry
|
Score
|
1.
Blue Bird Group
|
4.027
|
2.
Express Trasindo Utama
|
3.468
|
3.
Taxi Putra Group
|
3.278
|
Industry
|
3.591
|
Secondary
data: Frontier Consulting Group
Table
1.2 shows that BBG armada ranks number 1 with approximately 14.000 taxis.
Second place is Express Group with 5.700 taxis. Third place is Putra Group with
1.450 taxis. As mentioned earlier, BBG taxi as the market leader use an
above-market price called the upper tariff (tarif atas), which starts at Rp
6.000,-, followed by Rp 3000,- for each kilometer, compared to Express Taxi and
Putra that uses the lower tariff (tarif bawah) which starts Rp 5.000,- and
followed by Rp 2500,- for each kilometer. There is also the old tariff (tarif
lama) which starts at Rp 4.000,-, which is use by some taxi companies.
Table 1.2
Taxi Company Comparison
Taxi Company
|
Total Armada
|
Total Cities of Operations
|
Price Strategy
|
1.
Blue Bird Group
|
15.680
|
10
|
Upper Tariff
|
2. Express Trasindo Utama
|
4.700
|
6
|
Lower Tariff
|
3.
Taxi Putra Group
|
1.450
|
3
|
Lower Tariff
|
Secondary data
Besides
winning the 2010 IMAC award, BBG taxi also won the 2009 IMAC award, which was
held after BBG started using the high tariff pricing, and BBG also won the 2008
IMAC award, which was held before BBG raise their Rp 6000,- tariff. The attribute
that the IMAC award measured includes the quality of service or product, high
quality attention to the consumer, the trustworthiness of the company, and the
innovation of the company. From these IMAC awards we can assume that taxi users
percieve BBG as the quality leader in the taxi services before and after using
the highest price tariff.
Furthermore,
BBG also won the 2010 Top Brand Award for the taxi category which was organized
by the Frontier Consulting Group and the Marketing magazine, as shown in Table
1.3. This award measured the mind share, market share and commitment share
within the taxi category. (http://www.topbrand-award.com/index.php?option=com_content&view=Article &id=25&Itemid=20)
Table 1.3
Top Brand Award 2010, Taxi Category
(Listing 1 - 4)
Brand
|
TBI
|
TOP = >10%
|
1.
Blue Bird
|
59,99 %
|
TOP Brand
|
2.
Express
|
7,5 %
|
|
3.
Bosowa
|
6,0 %
|
|
4.
Putra
|
4,7 %
|
Secondary
data: Frontier Consulting Group
By
looking at the result of IMAC award 2010 & 2010 Top Brand award, we can
assume that BBG is the leader in quality taxi services and is used the most by
the taxi users despite BBG having the most expensive tariff. We can also conclude
that BBG is still the market leader after using their high tariff pricing
strategy which is in line with their quality leadership strategy.
