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Thesis: The Marketing Communication Strategy of Blue Bird Taxi... (Part 22)

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:

• Introduction & Book Cover   : Part 1
• Research Originality Statement and Acknowledgement   : Part 2
• Abstract                                          : Part 3
• Table of Contents                          : Part 4
• List of Tables                                 : Part 4A
• Chapter I       : part 5, part 6, part 7
• Chapter II      : part 8, part 9, part 10, part 11, part 12, part 13, part 14, part 15, part 16, part 17, part 18, 
• Chapter III      : part 19, part 20, part 21
• Chapter IV     : part 22

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CHAPTER IV

RESEARCH ANALYSIS

After discussing the methodology of the research, in this chapter the author will discuss the result of the research and analyze its findings of the marketing communication strategy used by Blue Bird Taxi to maintain market leader position after using the highest tariff.

4.1       Blue Bird Group Company Profile

Figure 4.1

Blue Bird Group Logo

Source: http://www.bluebirdgroup.com

Blue Bird Group (BBG) is a ground transportation company in Indonesia established in 1972. They are the leading company in regular taxi services (Blue Bird and Pusaka). Other various transport services that they offer are executive taxis that are targeted for middle to upper markets (Silver Bird), car rental (Golden Bird), bus rental (Big Bird) and container trucks (Iron Bird). With the motto "the reliable transportation partner", Blue Bird is known for high standards in serving the passenger taxis. Blue Bird Group serves an average of three million passengers per month throughout Indonesia and controls around 55% market share.

Blue Bird Group is supported by more than 20,000 employees, the latest technology such as GPS, MDT, SAP, and a computerized ordering system. With a combined fleet of approximately 21,000 vehicles in 17 branches, the Blue Bird Group's services are available in many cities of Indonesia including Jakarta, Bali, Bandung, Banten, Manado, Medan, Lombok, Semarang, Surabaya and Yogyakarta. In addition, their services can also be found in the central business and tourist destinations throughout the country.

4.1.1 Blue Bird Group Vision and Mission

 Blue Bird Group vision is “to be a sustainable, quality-driven company that ensures the continuing prosperity of all its stakeholders.”

Blue Bird Group mission statement is “our goals are to achieve customer satisfaction, and to build and defend the first position as market leader in every category in which we compete. In land transportation, we provide reliable, high quality and superior services with the efficient use of resources, and we do it as a team.’

  

4.1.2 Blue Bird Group Regular Taxis Service

Figure 4.2

Blue Bird Taxi & Pusaka Taxi Logo

Source: http://www.bluebirdgroup.com

This research will focus on Blue Bird Group (BBG) regular taxi services which have 2 brands of taxi, Blue Bird taxi and Pusaka Taxi as seen in Graphics 4.2. Blue Bird taxis has a light blue color car, and Pusaka taxis have a dark blue color car as seen in Graphics 4.3.

Figure 4.3

Blue Bird Taxi & Pusaka Taxi

Source: Blue Bird Internal Video

Other taxis under the Blue Bird Group flagships include Morante Jaya, Cendrawasih, Pusaka Nuri, Pusaka Biru, Pusaka Lintas, Pusaka Satria, Pusaka Sentra, Pusaka Banten, Pusaka Prima, Surabaya Taksi, Bali Taksi and Lombok Taksi. BBG expansion of the armada is to fulfill a large demand of taxi services and the subsidiary companies is due to government regulations imposing limits on the number of vehicles allowed to operate under a certain privately owned company

In 2010, BBG taxi armada has combined fleet of 15.680 taxis all over Indonesia and approximately 11.000 taxis in Jakarta area. BBG has 28 Pools scattered throughout Jakarta, Bali, Bandung, Banten, Manado, Medan, Lombok, Semarang, Surabaya and Yogyakarta. Their strategic placement of taxi outlets is to allow easy access in and out of major business and commercial districts. These also include tourist hot spots and national and international airports around the country.

BBG taxis are known for their trusted drivers, utilizing the latest technology including computerized reservation system and GPS tracking; well-maintained fleet, lost-and-found services, easy to get fleet and easy payment options.

4.1.3 Blue Bird Group Corporate Image Department

Blue Bird Group is a family owned company which was founded by the late Mrs. Mutiara Djokosoetono, SH and is now led by her son Dr. H. Purnomo Prawiro as the President Director. The company’s management consists of nine departments which are managed by a Vice President and 17 pool depots or branch offices managed by a General Manager. The 9 departments of BBG are Business and Development, Audit, Central Operations, Sales & Marketing, Regulatory Affairs, Finance & Administration, Technical, Human Resources, Operations and 17 pool depots.

 The BBG Corporate Image division, whom is responsible for communication of the company, is under the management of Business Development Department. The Corporate Image division is manage by the Corporate Image Manager and divided into the Creative team, Marketing Communication staff and the Public Relations team as seen in table 4.1.

Figure 4.4

BBG Corporate Image Division Management Hierarchy

 Source: Blue Bird Interview

Thesis: The Marketing Communication Strategy of Blue Bird Taxi... (Part 19)

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:

• Introduction & Book Cover   : Part 1
• Research Originality Statement and Acknowledgement   : Part 2
• Abstract                                          : Part 3
• Table of Contents                          : Part 4

• Chapter I       : part 5, part 6, part 7
• Chapter II      : part 8, part 9, part 10, part 11, part 12, part 13, part 14, part 15, part 16, part 17, part 18, 
• Chapter III      : part 19

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CHAPTER III

RESEARCH DESIGN AND METHOD

In order to achieve the objective of this study, the researcher has designed the work plan which will be explained in more detail in this chapter. This chapter consist of research locale, research method used, resources persons, instrument to be used and data gathering procedure.

3.1.      Research Method and Design

Research designs are classified into three traditional categories: exploratory, descriptive and causal. (Burns & Bush, 2006:116-127)

1. Exploratory research is most commonly unstructured, informal research that is undertaken to gain back-ground information about the general nature of the research problem.
2. Descriptive research is under-taken to obtain answer to question of who, what where, when and how.
3. Causal research. Causality may be thought of as understanding a phenomenon in terms of conditional statements of the form “If x, then y.” These “if-then” statements become our way of manipulating variables of interest.

The choice of the research design depends largely on the objectives of the research, which includes:

1. To gain background information and develop hypotheses.
2. To measure the state of a variable of interest, such as level of brand.
3. Or to test hypothesis that specify the relationships between two or more variables, such as level of advertising and brand loyalty.

Based on the purpose and the research questions, the purpose of this research will be to explore and describe. This explores what the author’s research purpose brings up and describing what is brought up. This research is exploratory and descriptive.

There are essentially two types of research: quantitative and qualitative. Quantitative research uses surveys based on a representative sample of the population or target group. Qualitative research involves an in-depth, unstructured exploration with either small groups of individuals (group discussion or focus groups) or with individuals on a one-to-one basis (depth interviews). (Smith, 1998:117)

            This research uses the qualitative research method in order to find out new ways and ideas of the marketing communication strategy and tools use by a company to maintain market leadership after using the highest price. This is done through obtaining materials of research in the form of written words from the result of interview with key informant and informants, and also its ability for the researcher to be closely involved with the research participants.

Thesis: The Marketing Communication Strategy of Blue Bird Taxi... (Part 8)

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:

• Introduction & Book Cover   : Part 1
• Research Originality Statement and Acknowledgement   : Part 2
• Abstract                                          : Part 3
• Table of Contents                          : Part 4

• Chapter I       : part 5, part 6, part 7
• Chapter II      : part 8

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CHAPTER II

THEORETICAL FRAMEWORK

The  following theories  are chosen  to  support  the  analysis  and explanation about  the  marketing communication strategy  to maintain market leader position after using the highest tariff. 

2.1       Literature Review

            Treacy and Wiersema, (1993) mentions in the Harvard Business Review journal, that there are 3 paths for a company to achieve market leadership. These 3 paths are value discipline strategies which are Operational Excellence, Customer Intimacy and Product Leadership. Operational excellence focuses on leading the industry in terms of price and convenience. Customer Intimacy focuses on long term customer loyalty and customer profitability. Product leadership focuses on quick commercialization of new idea. Value discipline is considered a competitive strategy because each discipline tries to be the market leader in a certain area.

Product leadership strategy delivers value by offering leading edge products and services, providing new products and services in the market, creatively adapting to changing market conditions and finding new solutions for its customers. This is backed up by a company that works quickly, supported by a good financial system and has good talented staff. Since this strategy is centered on bringing new product and services the price strategy use is a higher market pricing. The Blue Bird Group taxi company uses the product leadership as their main value discipline.

2.2       Marketing

            Kotler & Keller (2006:6) defines marketing as a societal process by which individuals and groups obtains what they need and want through creating, offering, and freely exchanging products and services of value with others.

Marketing deals with identifying and meeting human and social needs. Exchange, which is the core concept of marketing, is the process of obtaining a desired product from someone by offering something in return. Value, the central marketing concept, can be seen as primarily a combination of quality, service and price (qsp), called the “customer value triad”. Value increases with quality and service, and decreases with price although other factors can also play an important role.

2.3       Customer Buying Decision Process

The consumer passes through five stages of buying decision process: problem recognition, information search, evaluation of alternatives, purchase decision, and post purchase behavior as seen on figure 2.1. (Kotler & Keller, 2006:191) However, customers may skip or reverse some stages. This model provides a frame of reference when a customer faces involving a new purchase.

Figure 2.1

Five Stage Model of the Consumer Buying Process

 

Problem Recognition is when the buyer recognizes a problem or need; such as hunger, thirst or sex, or aroused by an external stimulus such as seeing a TV ad or people using a product. Marketers can develop a marketing strategy that triggers customer’s interest.

Information search is where the arouse customer search for more information. Four groups of information sources are: personal, commercial, public and experiential. Personal groups include family, friends, neighbors, acquaintances. Commercial includes advertisement, web sites, sales person, dealers, packaging, and displays. Public groups include mass media, consumer rating organizations. Experiential includes handling, examining, using the product.

Evaluation of alternatives is where the customer process competitive brand information and make a final value. Customer sees each product as satisfying a need, providing a certain benefit and as a bundle of attributes. Customer will pay the most attention to attributes that deliver the sought-after benefits.

Purchase decision execution can have five sub-decision: brand, dealer, quantity, timing and payment method. The purchase decision can be intervene by attitudes of others and unanticipated situational factors such as risks.

Post purchase behavior of the customer can be a dissonance experience. Therefore marketers must monitor post purchase satisfaction, post purchase actions, and post purchase product uses.

Thesis: The Marketing Communication Strategy of Blue Bird Taxi... (Part 5)

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:

• Introduction & Book Cover   : Part 1
• Research Originality Statement and Acknowledgement   : Part 2
• Abstract                                          : Part 3
• Table of Contents                          : Part 4
• Chapter I     : part 5

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CHAPTER I

INTRODUCTION

1.1         Background of the Study

In order to build a brand, a company must pay attention to their competitors. In a competitive industry, many companies offer their product in a similar category. These players have a certain market which is divided into the market leader, market follower, market challenger and niche market. Kotler & Keller, in their book Marketing Management, gave a hypothetical market structure example that the market leader has 40% of the market share, the market challenger 30%, the market follower 20% and niche market 10%.

            The market leader has the largest market share and also sets the industry price changes, new product introductions, distribution coverage and promotional intensity. The price changes of the market leader will affect the other competitors which will also adjust their pricing. Some market leader uses an above-market pricing or the highest price. This higher price is usually use for prestige products and to increase a superior image.

This competition condition can be seen on the Indonesian transportation industry for the taxi market category. In September 2008, the market leader in taxi service, the Blue Bird Group (BBG), has set their price as being the highest compare to other taxi companies at that time. BBG taxi tariff starts at Rp 6,000,- compare to their competitor, Express Group, at Rp 5,000,- as seen in Figure 1.1. This can be seen in an article entitled “Prospective Business in a Narrow Market” or Bisnis Legit di Lahan yang Sempit. (http://majalah.tempointeraktif.com/id/arsip/2008/08/25/EB/mbm.20080825.EB128058.id.html) Although on January 2009, the Indonesian government announce a reduction on fuel prices including Premium from Rp 5,000,- to Rp 4,500,- per liter, BBG still maintain their high tariff pricing. Later on, in the mid of 2010, Cipaganti taxi, a new and small taxi company with 100 taxis, also uses the high tariff pricing of Rp 6000,-.

Figure 1.1

Taxi Tariff in Jakarta as of September, 2008

Source: http://taksitaksi.wordpress.com

BBG high tariff pricing is the result of BBG using a quality leadership strategy, which offers better quality service to the customers but at the consequence of using a higher price compare to the competitors. BBG Public Relations mentions that the price increase is necessary in order to maintain their quality service for their customers. To compete with other taxi companies that use a low tariff, BBG will maintain their 4 points of service, which are safety, comfort, easy access and personalize. (http://www.detiknews.com/read/2008/09/16/071126/1006759/10/naikkan-tarif-blue-bird-pede-pelanggannya-tak-pindah)

Since 2000, BBG have raised their tariff several times and some of their user has switch and use other taxi company. In 2006, BBG Taxi lost 15% of their customer after increasing their tariff from Rp 4000,- to Rp 5000,-. (http://202.59.162.82/cetak.php?cid=1&id=4602&url=http%3A%2F%2202.59.62.82%2Fswamajalah%2Fpraktik%2Fdetails.php%3Fcid%3D1%26id%3D46) The new price of BBG taxi in 2008, should also change the market condition in the taxi category because it made BBG the highest price taxi company at the time. This also gave an image that BBG taxis are expensive. This was acknowledge by BBG Public Relations in a news article at Kompas.com, which mentions that BBG realize that there are indication that BBG price are expensive but people should also see that their getting the best service with that price.

Some people including the Yayasan Lembaga Konsumen Indonesia or Indonesian Consumer Foundation wanted the taxi prices to be reduced following the reduction of fuel prices on January 2009. Some BBG taxi driver also agrees if BBG lowers their price because the drivers earning have dropped 50% after the price increase. (http://batakpos-online.com/content/ view/3268/58/) However, BBG is confident that their high tariff strategy will work and people will use their taxi because of the quality that BBG offer. (http://www1.kompas.com/readkotatua/xml/2009/03/11/1857210/tarif.taksi.tidak.turun) This new high price tariff should also affected BBG market share condition and may result in some of BBG customers to switch brand to other taxi companies as their main preferences because they feel that BBG price are expensive.

The author chose BBG because BBG has a strong brand and they have built it through the years and became the market leader compared to their competitors that have come and gone. By using the highest taxi price in 2008, we can see the strength of BBG brand to their customers.

The Marketing Communication Strategy of Blue Bird Taxi To Maintain Market Leader Position After Using The Highest Tariff (Part 4)

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:

• Introduction & Book Cover   : Part 1
• Research Originality Statement and Acknowledgement   : Part 2
• Abstract                                          : Part 3
• Table of Contents                          : Part 4

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TABLE OF CONTENTS

TITLE PAGE                                                                                                       Page

RESEARCH ORIGINALITY STATEMENT

CURRICULUM VITAE

ACKNOWLEDGEMENTS....................................................................................... i

ABSTRACT........................................................................................................... iii

TABLE OF CONTENTS ........................................................................................ v

LIST OF TABLES.................................................................................................... x

LIST OF FIGURES............................................................................................... xii

LIST OF ATTACHMENTS................................................................................. xiii

CHAPTER I      INTRODUCTION

1.1                               Background of the Study  ..........................................................   1

1.2                               Problem Statement  ..................................................................... 7

1.3                               Objectives of the Research ........................................................  8

1.4                               Significance of the Research  ..................................................    8

1.4.1                 Practical Benefits...................................................................... 8

1.4.2                 Academic Benefits....................................................................8

1.5                               Scope and Limitations  ............................................................... 9

CHAPTER II     THEORETICAL FRAMEWORK

2.1                               Literature Review .......................................................................  10

2.2                               Marketing         ...........................................................................   11

2.3                               Customer Buying Decision Process ......................................   11

2.4                               Marketing Strategy ..................................................................... 13

2.4.1                    Segmentation ...................................................................... 14

2.4.2                    Targeting .............................................................................  15

2.4.3                    Positioning...........................................................................  15

2.5                       Competitive Advantage Marketing Strategies…...............16

2.5.1                    Competitor Analysis...........................................................   17

2.5.2                    Competitive Strategies.........................................................17

2.5.2.1                Competitive Position Strategy............................................. 18

2.5.2.2                Competitive Moves Strategy................................................ 19

2.6                       Marketing Mix ................................................…….………..  21

2.7                       Integrated Marketing Communications ………………......  23

2.8                       Marketing Communications Mix ……………….................. 24

2.9                       Marketing Communication Strategy Planning…….……… 30

2.9.1                    Strategic Planning Process................................................... 30

2.9.2                    Marketing Communication Strategy Planning..................... 31

2.10                     Conceptual Framework …………......................................... 37

2.10.1                 Conceptualization.................................................................... 37

2.10.1.1              Research Question 1, To Analyze and Make an Opinion of

                            The Market Leader Strategy Being Used by Blue Bird Taxi to Maintain Market Leader Position .................................................................. .... 37

2.10.1.2              Research Question 2, To Analyze and Make an Opinion of

                            Identify the Marketing Communications Strategy use to

                            Communicate a Better Value over a Higher Price................ 39

2.10.1.3              Research Question 3, To Analyze and Make an Opinion of

                            The Marketing Communications Mix used........................ .... 41

2.10.2                 Frame of Reference.................................................................. 42

CHAPTER III    RESEARCH DESIGN AND METHODOLOGY

3.1                               Research Design and Method ................................................  44

3.2                               Data Generation Procedure  .................................................... 46

3.2.1                     Depth Interview .................................................................... 46

3.2.2                          Observation ...............................................................................  48

3.2.3                          Document Review  .................................................................... 50

3.3                               Data Generation Schedule ......................................................  50

3.4                               Data Analysis Procedure  ......................................................... 50

3.4.1                      Transcribes  ……………………………............................. 51

3.4.2                      Read The Transcribes  ………………………................... 51

3.4.3                      Coding…………………....................................................... 51

3.4.4                      Categorization....................................................................... 52

CHAPTER IV    RESEARCH ANALYSIS

4.1 Blue Bird Group Company Profile ................................................................  53

4.1.1                    Blue Bird Group Vision and Mission  .....................................  54

4.1.2                    Blue Bird Group Regular Taxi Service  ..................................  55

4.1.3                    Blue Bird Group Corporate Image Department ....................  56

4.2                       Research Findings and Analysis.......................................  . .... 57

4.2.1                    Research question one, To Analyze and Make an Opinion of

                            The Market Leader Strategy Being Used by

                            Blue Bird Group Taxi............................................................. ..... 58

4.2.1.1                Marketing Strategy Analysis...................................................  .. 58

4.2.1.2                Competitive Advantage Marketing Strategies Analysis.......    66

4.2.1.3                Marketing Mix Analysis..............................................................   77

4.2.2                    Research question two, to analyze and make an opinion of

                            Marketing communication strategy use to communicate a

                            Better valued over higher price..........................................     100

4.2.2.1                Marketing Communication Planning Process Analysis...... 100

4.2.2.2                Marketing Communication Strategy Plan Analysis............. 102

4.2.3                    Research question three, to analyze and make an opinion

                            Of the Marketing communication mix used........................   123

4.2.3.1                Sales force or Personal Selling Analysis.............................. 123

4.2.3.2                Advertising Analysis.................................................................124

4.2.3.3                Sales Promotion Analysis....................................................... 126

4.2.3.4                Direct Marketing Analysis........................................................127

4.2.3.5                Public Relations Analysis........................................................ 127

4.2.3.6                Sponsorships Analysis............................................................ 129

4.2.3.7                Exhibition Analysis................................................................... 131

4.2.3.8                Corporate Identity Analysis......................................................132

4.2.3.9                Packaging Analysis..................................................................134

4.2.3.10              Point-of-Purchase and Merchandising Analysis.................   134

4.2.3.11              Word of Mouth Analysis............................................................135

4.2.3.12              Internet and New Media Analysis...........................................  137

4.2.4                    Observation Result of Blue Bird Group

                            Corporate Image Department..................................................140

CHAPTER V    CONCLUSION AND RECOMMENDATIONS

5.1        Conclusion                                                                                                   145

5.1.1     Research question one, to analyze and make an opinion

                of the market leader Strategy being used by

                Blue Bird Group taxi...........................................................      145

5.1.2.                   Research question two, to analyze and make an opinion of

                            The Marketing communication strategy use to communicate

                            A Better valued over higher price.......................................    147

5.1.3.                   Research question three, to analyze and make an opinion of

                            The Marketing communication mix used.......................        149

5.2     Recommendations............................................................                           152

5.2.1     Academic Recommendations...........................................                      152

5.2.2     Practical Recommendations..............................................                      152

BIBLIOGRAPHY........................................................................................           155