Thesis: The Marketing Communication Strategy of Blue Bird Taxi... (Part 11)

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

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(Chapter II continued...)

2.6.      Marketing Mix

The definition of Marketing Mix is the set of controllable tactical marketing tools that the firm blends to produce the response it wants in the target market. The marketing mix consists of everything the firm can do to influence the demand for its product. The many possibilities gather into four groups of variables known as the ‘four P’s’; Product, Price, Place and Promotion. (Kotler et al., 1999:109)

1. Product

Product is anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or need. It includes services, physical objects, persons, places, organization and ideas. It is the totality of goods and services that the company offers the target market. The marketing tools under product are: variety, quality, design, features, brand name, packaging, services and warranties.

2. Price

Price is the amount of money charged for a product or service, or the sum of the values that consumers exchange for the benefits of having or using the product or service. It is what customers pay to get the product. The marketing tools under price are: list price, discounts, allowances, payment period and credit terms.

3. Place

Place is all the company activities that make the product or service available to target customers. The marketing tools under place are: channels, coverage, assortments, locations, inventory and transport.

4. Promotion

Promotion is the activities that communicate the product or service and its merits to target customers and persuade them to buy. The marketing tools under promotion includes: advertising, promotions, personal selling and publicity.

The services mix is an expansion of the marketing mix that includes: People, Process and Physical evidence. (Botha et al., 2007)

5. People

This includes all the people who play a part in the delivery of service and influence the buyer’s perception. This includes the staff, the customer, and the front-line service personnel.

6. Process

This includes all the actual procedures and activity flows through which service is delivered. The organization’s operating system and the service delivery system are included in this process.

7. Physical evidence

This is the environment in which the service is delivered, as well as the boundary at which the company and the customer interact. It also includes the tangible aspects of delivering the services or communicating the service.

An effective marketing program blends the marketing mix elements into a coordinated program designed to achieve the company’s marketing objectives. From a customer viewpoint, each marketing tool must deliver a customer benefit. One marketing expert suggests that companies should view the four Ps as the Customers four Cs, which is: Customers, Cost, Convenience and Communication

2.7.      Integrated Marketing Communications

Marketing communications is the collective term for all communication functions used in marketing a product. The purpose of marketing communications is to add persuasive value to a product for customers. (Kitchen & de Pelsmacker, 2004:20). Yeshin (1998:3) defines marketing communication as the process by which the marketer develops and presents an appropriate set of communications stimuli to a defined target audience with the intention of eliciting a desired set of responses. In fact, the marketing communications functions help build a brand by connecting a company with customers and influencing the information processing activities of stakeholders (Ouwersloot & Duncan, 2007:8)

Kotler & Keller (2006:536) mentions that marketing communication  from  the view  point  of  the producer  is  to  inform, persuade  and  remind  the  customer  about  the  products  and  brand  that they  sell.  This can contribute to brand equity by establishing the brand in the memory and crafting a brand image.

Integrated marketing communications, or IMC, is defined by the American Association of Advertising Agencies as a concept of marketing communications planning that recognizes the added value of a comprehensive plan. Such a plan evaluates the strategic roles of a variety of communications disciplines, for examples general advertising, direct response, sales promotion and public relations; and combines these disciplines to provide clarity, consistency and maximum impact through the seamless integration of messages. (Kotler & Keller, 2006:558)

Thesis: The Marketing Communication Strategy of Blue Bird Taxi... (Part 10)

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

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(Chapter II continued...)

2.5.      Competitive Advantage Marketing Strategies

Competitive advantage is the advantage over competitors gained by offering consumers greater value, either through lower prices or by providing more benefits that justify higher prices. (Kotler et al., 1999:107) Marketing strategies must consider the strategies of competitors as well as the needs of target consumers by doing a competitor analysis and developing competitive strategies. (Kotler et al., 1999:506)

2.5.1   Competitor Analysis

Competitor analysis is the process of:

-       identifying key competitors

-       assessing competitors objectives

-       assessing competitors strengths and weaknesses

-       assessing competitors strategies

-       assessing competitors reaction patterns

-       Selecting which competitors to attack or avoid.

To plan effective competitive marketing strategies, the company needs to find out all it can about its competitors. It must constantly compare its products, prices, channels and promotion with those of close competitors. In this way the company can find areas of potential competitive advantage and disadvantage. It can launch more effective marketing campaigns against its competitors and prepare stronger defenses against competitors' actions. (Kotler et al., 1999:506)

2.5.2   Competitive Strategies

Competitive strategies are strategies that strongly position the company against competitors and that give the company the strongest possible strategic advantage. (Kotler et al., 1999:506) The broad competitive marketing strategies that companies use are Competitive Position and Competitive Movement.

2.5.2.1 Competitive Position Strategy

Treacy and Wiersema suggest that companies gain leadership position by delivering superior value to their customer. Companies can pursue any of three strategies called Value Discipline for delivering superior customer value. (Kotler et al., 1999:517) These are:

-       Operational Excellence

The company provides superior value by leading its industry in price and convenience. It works to reduce costs and to create a lean and efficient value delivery system.

-       Customer Intimacy

The company provides superior value by precisely segmenting its markets and then tailoring its products or services to match exactly the needs of targeted customers. It serves customers who are willing to pay a premium to get precisely what they want, and it will do almost anything to build long-term customer loyalty and to capture customer lifetime value.

-       Product Leadership

The company provides superior value by offering a continuous stream of leading-edge products or services that make their own and competing products obsolete. It serves customer who want state-of-the-art products and services, regardless of the cost in terms of price or inconvenience.

            Some companies’ successfully pursue more than one value discipline at the same time. Treacy and Wiersema have found that leading companies focus on and excel at a single value discipline while meeting industry standards on the other two.

2.5.2.2 Competitive Moves Strategy

Businesses maintain their position in the marketplace by making competitive moves to attack competitors or defend themselves against competitive threats. These moves change with the role that firms play in the target market that of market leader, market challenger, market follower and market nicher. (Kotler et al., 1999:519)

Market leader is the firm in an industry with the largest share; it usually leads other firms in price changes, new product introductions, distribution coverage and promotion spending. The market leader competitive strategies are:

• First, find ways to expand total demand.
• Second, try to expand its market share further.
• Third, company can retain its strength by reducing its costs.
• Fourth, the firm must protect its market share through good defensive and offensive actions.

Market Challenger is runner-up firm in an industry that infighting hard to increase its market share. The market challenger competitive strategies are:

• attacking the leader and other competitors in an aggressive bid for more market share (market challengers)
• or they can play along with competitors and not rock the boat (market followers)

Market Follower is a runner-up firm in an industry that wants to hold its share without rocking the boat. The market-follower fall into one of three broad types:

• The Cloner, which closely copies the leader’s product, distribution, advertising and other marketing moves. It originates nothing; it simply attempts to live off the market leader’s investment.
• The Imitator, which copies some things from the leader, but maintains some differentiation with packaging, advertising, pricing and other factors.
• The Adapter, which builds on the leader’s product and marketing program, often improving them. The Adapter may choose to sell to different markets to avoid direct confrontation with the leader.

Market Nicher is a firm in an industry that serves small segments that the other firms overlook or ignore. Whereas the mass marketer achieves high volume, the nicher achieves high margins. The key idea in nichemanship is specialization along market, customer, product or marketing-mix lines.

Thesis: The Marketing Communication Strategy of Blue Bird Taxi... (Part 9)

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

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(Chapter II continued...)

2.4       Marketing Strategy

Marketing Strategy is the marketing logic by which the business unit hopes to achieve its marketing objective. Target consumers are at the centre of the marketing strategy. The company identifies the total market, divides it into smaller segments, selects the most promising segments and focuses on serving them. It designs a marketing mix using mechanisms under its control: product, price, place and promotion. (Kotler et al., 1999:106) All marketing strategy is build upon STP-Segmenting, Targeting & Positioning. (Kotler & Keller, 2006: 310).

  

2.4.1   Segmentation

Market segmentation is the process of dividing a market into groups of buyers with different needs, characteristics or behavior, who might require separate products or marketing mixes. The market consists of many types of customers, products and needs. The marketer has to determine which segments offer the best opportunity for achieving company objectives. (Kotler et al., 1999:107)

Consumers are grouped in various ways based on:

1. Geographic factors (countries, regions, cities)
2. Demographic factors (sex, age, income, education)
3. Psychographic factors (social classes, lifestyles)
4. Behavioral factors (purchase occasions, benefits sought, usage rates).

A market segment consists of consumers who respond in a similar way to a given set of marketing stimuli. Every market has market segments, but not all ways of segmenting a market are equally useful. In the car market, for example, consumers who choose the biggest, most comfortable car regardless of price make up one market segment. Another market segment would be customers who care mainly about price and operating economy.

  

2.4.2   Targeting

Market targeting is the process of evaluating each market segment's attractiveness and selecting one or more segments to enter. A company should target segments in which it has a differential advantage over its competitors; where it can generate the greatest customer value and sustain it over time. A company with limited resources might decide to serve only one or a few special segments; this strategy limits sales, but can be very profitable. Alternatively, a company might choose to serve several related segments - perhaps those with different kinds of customer, but with the same basic wants. Or perhaps a large company might decide to offer a complete range of products to serve all market segments. (ibid)

2.4.3   Positioning

Philip Kotler defines positioning as the act of designing the company’s offering and image so that they occupy a meaningful and distinctive competitive position in the target customer’s mind. (Kartajaya, 2010:19)

In order to build a solid positioning, Kartajaya (2010:20) suggest that there are four criteria to consider:

1. Customer

To the customers, a positioning should have positive perception so the customer will have a reason to buy a product and thinks of it as a value.

2. Company

For the company, a positioning should reflect the strength and competitive advantage of the company.

3. Competitor

Compared to the competition, a positioning must be unique so it cannot be easily imitated. This is done by differentiating the company from the competition.

4. Change

In changes, a positioning must be sustainable and relevant to the changes in the business environment. If not, then the company can do a repositioning.

A positioning statement has a meaningful definition that is invaluable in giving focus and clarity to the formation and building of a marketing strategy and tactics. Based on the positioning statement, a company can create a tag line offer and use media to communicate to the customer so they can remember it. Elements of positioning statements are: target market, brand, frame of reference, points of differentiation, competitive advantage.

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 7)

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, part 7

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(Chapter I continued...)

BBG maintain their market leader position because of their competitive advantages, including quality service, brand image and the size of their armada. These following features also add to BBG competitive advantage, including electronic payment, GPS order distribution, voucher payment, lost & and found services. To the customers, BBG main competitive advantages compared to other taxis are the trusted drivers and availability.

This research is interested in finding out the marketing communication strategy of BBG taxi after they change their price strategy and started using the highest tariff price, and successfully maintains their market leader position. What are the marketing strategies and tactics use? How and which department develops the strategy? What marketing communication strategy are used to influence people to keep using Blue Bird taxi compare to other taxis that has a lower price? These questions will be answered in the next subtopic and explanation.

1.2       Problem Statement

After describing BBG background and the reason why the researcher choose this topic, here is the problem statements of this research study:

 “What is the marketing communication strategy used by Blue Bird Taxi to maintain market leader position after using the highest tariff?”

1.3       Objectives of the Research

            The objective of this research is to:

1. To analyze and make an opinion of the market leader strategy being use by Blue Bird Group to maintain market leader position.
2. To analyze and make an opinion of the marketing communication strategy use to communicate a better value over higher price.
3. To analyze and make an opinion of the marketing communication mix being use.

1.4       Significance of the Research

1.4.1     Practical Benefits

This research can be used in a practical manner and implemented by a company that is a market leader and company using the highest price strategy in another industry. This research finding can also be used by Blue Bird Group Taxi as a reference for developing a marketing communication strategy in the future.

1.4.2     Academic Benefits

From the academic perspective, this research is expected to benefit everyone who wants to know about marketing communications strategy regarding communicating value over a high price. Also, this research will benefit those who want to make another comprehensive research about the impact of communication in marketing a product or services.

1.5        Scope and Limitations

In accomplishing these analyses, this research has scopes of studies. These scopes are:

1.    This research focuses on marketing communication. The marketing strategy presented here is only to support the marketing communication strategy research.

2.    This research focuses on researching Blue Bird Group regular taxi services.

3.    The research focuses on marketing communication to Blue Bird Group Taxi customers and not to the internal staff

4.    The location of the research is in Jakarta where the Blue Bird Group headquarters are located and where BBG has the most armada.

5.    The timeline of the study for the thesis will be done in 8 months from June 2010 to February 2011.

Thesis: The Marketing Communication Strategy of Blue Bird Taxi... (Part 6)

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. 

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.