Strategies To Change Customers' Perception About Aqua Brand to Make The Brand Stronger : A Case Study.
ABSTRAK
Skripsi ini ditulis untuk memenuhi salah satu syarat kelulusan program
Sarjana di Jurusan English for Business Professionals, Fakultas Sastra,
Universitas Kristen Maranatha. Dalam skripsi ini saya mencoba untuk
mencari solusi untuk menyelesaikan masalah yang dihadapi PT. Aqua
Golden Mississippi berkenaan dengan merek Aqua.
Dengan semakin besarnya permintaan akan air minum yang bersih
membuat banyak perusahaan saling bersaing untuk memproduksi air minum
yang bersih dan berkualitas yang biasa disebut air minum dalam kemasan
(AMDK). Tirto Utomo adalah perusahaan yang memelopori air minum dalam
kemasan dan merek yang digunakan adalah “Aqua”. Saat ini Aqua
menguasai 80% dari pangsa pasar. Aqua juga memiliki tingkat kesadaran
merek yang paling tinggi dari sekian banyak produk air minum dalam
kemasan (AMDK).
Namun, Aqua memiliki masalah dalam mereknya, yaitu banyak dari
konsumen yang mengidentifikasikannya sebagai kategori produk AMDK dan
bukan sebagai merek dagang. Konsumen tidak pernah keberatan jika penjual
memberi mereka air minum dalam kemasan dengan merek lain ketika
mereka meminta Aqua. Para konsumen memiliki persepsi bahwa Aqua
adalah air minum biasa seperti merek-merek yang lainnya dan tidak memiliki
keistimewaan tersendiri. Kondisi seperti inilah yang kini ingin diubah oleh PT.
Aqua Golden Mississippi. Perusahaan ini merasa bahwa Aqua perlu
menegaskan kembali identitas mereknya sebagai pembeda dari merek-merek
AMDK lainnya. PT. Aqua Golden Mississippi juga ingin membuat mereknya
lebih kuat lagi sehingga dapat terus menjadi pemimpin pasar.
i
Maranatha Christian University
TABLE OF CONTENTS
ABSTRACT……………………………………………………………………..i
DECLARATION OF ORIGINALITY………………………………………….ii
PREFACE……………………………………………………………………....iii
TABLE OF CONTENTS……………………………………………………....iv
CHAPTER I
: INTRODUCTION…………………………………………..1-5
1.1. Background of the Study
1.2. Identification of the Case
1.3. Objectives of the Study
1.4. Limitation of the Study
1.5. Layout of the Paper
CHAPTER II
: THEORETICAL REVIEW……………………………… 6-14
CHAPTER III : CASE ANALYSIS………………………………………15-20
CHAPTER IV : CONCLUSION & SUGGESTION…………………….21-22
BIBLIOGRAPHY
iv
Maranatha Christian University
CHAPTER I
INTRODUCTION
1.1. Background of the Study
Nowadays there are many mineral water products with different brands.
“There are about 466 companies that produce mineral water with different brand
names” (translated, http://www.kompas.com, 16 November 2005). It makes the
competition intense for the companies, and the companies should also be able to
adapt to this situation and should be able to fulfill the needs of the customers.
Companies compete with each other to broaden their target market and maintain
their position in the business world. They produce the kinds of products and
services which can satisfy the customers’ needs, so that the customers can
accept the products and feel satisfied with the products and services that are
promoted by the companies.
If companies want to create brands for their products, they should be able to
choose what kind of brands that can make their products well known. Besides,
the function of brands is to help the customers to differentiate and identify the
1
Maranatha Christian University
products. Brands will also show the qualities of the products and can make the
customers trust the product and then buy the product again.
The strategies mentioned above are done by Aqua Golden Mississippi
Company when they determined “Aqua” as a brand for its mineral water product.
The word “Aqua” is taken from the Latin language, which means “water”. The
Aqua Golden Mississippi Company hopes that Aqua as the brand can attract the
customers to buy its mineral water, because it is easy for the customers to
remember the brand, (http://www.kompas.com).
The company itself was established in 1973 by Tirto Utomo, the pioneer
producer of bottled water in Indonesia. After operating for over 30 years, Aqua
Golden Mississippi Company now has 14 factories throughout Indonesia. In
1998, Aqua took the strategic step of joining with Danone group, which is one of
the largest business groups active in the bottled water sector worldwide. Under
the Danone-Aqua flag, Aqua now has more than 1,000,000 distribution points
which
are
easily
accessed
by
its
customers
all
over
Indonesia,
(http://www.danoneaqua.com). As one of the biggest companies in Indonesia,
the Aqua Golden Mississippi Company actually should not have any problem
with its brand.
According to Kompas on 22 November 2007, however, the Aqua Golden
Mississippi Company has some problems with the Aqua brand. Aqua as a brand
is not successful as a distinctive brand among other brands of similar products.
One of the functions of brand is to make a product different from its competitors.
If
the customers are not aware that brands differentiate the products, it
2
Maranatha Christian University
will cause a condition called brand switching. Brand switching does not give any
disadvantages for the customers, but it will give disadvantages to the company.
The problem with Aqua is that the customers regard Aqua as a name for generic
a product. In other words, it means that Aqua as a brand is no longer special for
the customers because the customers do not perceive Aqua as not only a brand,
but also a trade mark. Customers have a perception that it is not a problem if a
seller gives them another brand of mineral water product, although they say that
they want to buy Aqua.
Aqua Golden Mississippi Company wants to change the perception of the
customers by giving them some promotions in order to let the customers know
that Aqua is not only a brand, but also a trade mark. So, the Aqua Golden
Mississippi Company needs to better communicate its brand’s attributes to the
customers.
Although Aqua is a market leader for mineral water products, it is not strong
enough to make the customers aware of it as a brand and a trade mark so that
they will be loyal to the brand. It happens because the Aqua Golden Mississippi
Company’s is lack in communication and in promotion of its brand. Therefore,
Aqua Golden Mississippi Company does some strategies to strengthen its brand
to solve this problem.
1.2. Identification of the Case
I will discuss the case by trying to answer the following questions:
1. What is the perception of customers about Aqua brand?
3
Maranatha Christian University
2. What are the strategies which Aqua Golden Mississippi Company
takes to strengthen its Aqua brand?
1.3. Objectives of the Study
The objectives of the research are:
1.
To know the perception of customers about Aqua brand.
2.
To know the strategies that Aqua Golden Mississippi Company takes
to strengthen Aqua brand.
1.4. Limitation of the Study
I focus the discussion on the problem which is faced by the Aqua Golden
Mississippi Company in relation with its Aqua brand.
1.5. Layout of the Thesis
The thesis starts with the Abstract, a concise summary of the entire paper in
Indonesian. This Abstract is followed by the Preface, in which acknowledgments
are given to those contributing and involved in the work. After that is the Table of
Contents, and followed by its four chapters:
Chapter I
is the introduction to the analysis.
Chapter II
contains the literary research.
Chapter III
is the case analysis.
4
Maranatha Christian University
Chapter IV
is conclusion and suggestion.
In the final part, the present writer presents the Bibliography.
5
Maranatha Christian University
CHAPTER IV
CONCLUSION AND SUGGESTION
In this chapter, I would like to give an overall conclusion of my thesis and
also give suggestions to the Aqua Golden Mississippi Company.
The Aqua Golden Mississippi Company has problems in making Aqua
brand different from the others when the customers cannot differentiate the
product. As a brand, Aqua is not strong enough to make the customers more
aware and loyal to its brand. Some of the customers regard Aqua as generic
product, not as distinctive mineral water product. The customers do not
realize that Aqua is not only a brand but also a trade mark, so they do not
mind if the sellers give them a different brand although what they actually ask
is Aqua.
According to the information that I find on the company’s website, the
Aqua Golden Mississippi Company has done some effective ways to make
Aqua brand stronger. The Aqua Golden Mississippi does some promotional
efforts which are intended to educate its customers and inform them about
the benefits of Aqua mineral water so that the customers will be
21
Maranatha Christian University
more aware of and more loyal to the product. The company hopes that it can
also change the perception of the customers about the product so that the
brand will be stronger. In doing the promotion, the Aqua Golden Mississippi
Company gives some prizes, makes new slogan at their website, gives
quizzes, and also gives testimonials to its customers. I find that these
promotional efforts which have been taken by the Aqua Golden Mississippi
Company match with the branding theories stated by Philip Kotler, Freddy
Rangkuti, and also David A. Aaker.
I would also like to give some suggestions for the progress of Aqua
Golden Mississippi Company. The company can do other promotional efforts
in order to increase customers’ awareness and loyalty, for instance: giving
one cup of Aqua mineral water products for free to the customers if they buy
one Aqua bottle in 1 liter size bottle. The company can also make advertorials
in local newspapers or magazines containing information and facts about
Aqua mineral water, or give charity for education or other social activities by
giving Rp.100 to charity for each selling of Aqua mineral water of any sizes.
They can also hold a talk show featuring famous celebrities or famous
doctors giving tips on healthy living. Besides, the company can also do
research by spreading the questionnaire about Aqua fact to know how far is
the perception of the customers. I hope that these suggestions can support
the Aqua Golden Mississippi Company’s attempts to make Aqua brand
stronger.
22
Maranatha Christian University
23
Maranatha Christian University
BIBLIOGRAPHY
From Books:
Aaker, A., David. Managing Brand Equity. New York: The Free Press, 1997.
Durianto, D., Sugiarto, and Tony Sitinjak. Strategi Menaklukan Pasar Melalui
Perilaku Merek. Jakarta: PT.Gramedia Pustaka, 2004.
Freddy, Rangkuti. The Power of Brands. Jakarta: PT.Gramedia Pustaka
Utama, 2004.
Kotler,
Philip.
Marketing
Management.
New
Jersey:
Prentice
Hall
International, Inc., 2004.
From Website:
http://www.kompas.com/marketing/news/. 16 November 2005
http://www.kompas.com/marketing/news/. 22 November 2007
http://www.danoneaqua.com. 21 May 2007
Maranatha Christian University
Skripsi ini ditulis untuk memenuhi salah satu syarat kelulusan program
Sarjana di Jurusan English for Business Professionals, Fakultas Sastra,
Universitas Kristen Maranatha. Dalam skripsi ini saya mencoba untuk
mencari solusi untuk menyelesaikan masalah yang dihadapi PT. Aqua
Golden Mississippi berkenaan dengan merek Aqua.
Dengan semakin besarnya permintaan akan air minum yang bersih
membuat banyak perusahaan saling bersaing untuk memproduksi air minum
yang bersih dan berkualitas yang biasa disebut air minum dalam kemasan
(AMDK). Tirto Utomo adalah perusahaan yang memelopori air minum dalam
kemasan dan merek yang digunakan adalah “Aqua”. Saat ini Aqua
menguasai 80% dari pangsa pasar. Aqua juga memiliki tingkat kesadaran
merek yang paling tinggi dari sekian banyak produk air minum dalam
kemasan (AMDK).
Namun, Aqua memiliki masalah dalam mereknya, yaitu banyak dari
konsumen yang mengidentifikasikannya sebagai kategori produk AMDK dan
bukan sebagai merek dagang. Konsumen tidak pernah keberatan jika penjual
memberi mereka air minum dalam kemasan dengan merek lain ketika
mereka meminta Aqua. Para konsumen memiliki persepsi bahwa Aqua
adalah air minum biasa seperti merek-merek yang lainnya dan tidak memiliki
keistimewaan tersendiri. Kondisi seperti inilah yang kini ingin diubah oleh PT.
Aqua Golden Mississippi. Perusahaan ini merasa bahwa Aqua perlu
menegaskan kembali identitas mereknya sebagai pembeda dari merek-merek
AMDK lainnya. PT. Aqua Golden Mississippi juga ingin membuat mereknya
lebih kuat lagi sehingga dapat terus menjadi pemimpin pasar.
i
Maranatha Christian University
TABLE OF CONTENTS
ABSTRACT……………………………………………………………………..i
DECLARATION OF ORIGINALITY………………………………………….ii
PREFACE……………………………………………………………………....iii
TABLE OF CONTENTS……………………………………………………....iv
CHAPTER I
: INTRODUCTION…………………………………………..1-5
1.1. Background of the Study
1.2. Identification of the Case
1.3. Objectives of the Study
1.4. Limitation of the Study
1.5. Layout of the Paper
CHAPTER II
: THEORETICAL REVIEW……………………………… 6-14
CHAPTER III : CASE ANALYSIS………………………………………15-20
CHAPTER IV : CONCLUSION & SUGGESTION…………………….21-22
BIBLIOGRAPHY
iv
Maranatha Christian University
CHAPTER I
INTRODUCTION
1.1. Background of the Study
Nowadays there are many mineral water products with different brands.
“There are about 466 companies that produce mineral water with different brand
names” (translated, http://www.kompas.com, 16 November 2005). It makes the
competition intense for the companies, and the companies should also be able to
adapt to this situation and should be able to fulfill the needs of the customers.
Companies compete with each other to broaden their target market and maintain
their position in the business world. They produce the kinds of products and
services which can satisfy the customers’ needs, so that the customers can
accept the products and feel satisfied with the products and services that are
promoted by the companies.
If companies want to create brands for their products, they should be able to
choose what kind of brands that can make their products well known. Besides,
the function of brands is to help the customers to differentiate and identify the
1
Maranatha Christian University
products. Brands will also show the qualities of the products and can make the
customers trust the product and then buy the product again.
The strategies mentioned above are done by Aqua Golden Mississippi
Company when they determined “Aqua” as a brand for its mineral water product.
The word “Aqua” is taken from the Latin language, which means “water”. The
Aqua Golden Mississippi Company hopes that Aqua as the brand can attract the
customers to buy its mineral water, because it is easy for the customers to
remember the brand, (http://www.kompas.com).
The company itself was established in 1973 by Tirto Utomo, the pioneer
producer of bottled water in Indonesia. After operating for over 30 years, Aqua
Golden Mississippi Company now has 14 factories throughout Indonesia. In
1998, Aqua took the strategic step of joining with Danone group, which is one of
the largest business groups active in the bottled water sector worldwide. Under
the Danone-Aqua flag, Aqua now has more than 1,000,000 distribution points
which
are
easily
accessed
by
its
customers
all
over
Indonesia,
(http://www.danoneaqua.com). As one of the biggest companies in Indonesia,
the Aqua Golden Mississippi Company actually should not have any problem
with its brand.
According to Kompas on 22 November 2007, however, the Aqua Golden
Mississippi Company has some problems with the Aqua brand. Aqua as a brand
is not successful as a distinctive brand among other brands of similar products.
One of the functions of brand is to make a product different from its competitors.
If
the customers are not aware that brands differentiate the products, it
2
Maranatha Christian University
will cause a condition called brand switching. Brand switching does not give any
disadvantages for the customers, but it will give disadvantages to the company.
The problem with Aqua is that the customers regard Aqua as a name for generic
a product. In other words, it means that Aqua as a brand is no longer special for
the customers because the customers do not perceive Aqua as not only a brand,
but also a trade mark. Customers have a perception that it is not a problem if a
seller gives them another brand of mineral water product, although they say that
they want to buy Aqua.
Aqua Golden Mississippi Company wants to change the perception of the
customers by giving them some promotions in order to let the customers know
that Aqua is not only a brand, but also a trade mark. So, the Aqua Golden
Mississippi Company needs to better communicate its brand’s attributes to the
customers.
Although Aqua is a market leader for mineral water products, it is not strong
enough to make the customers aware of it as a brand and a trade mark so that
they will be loyal to the brand. It happens because the Aqua Golden Mississippi
Company’s is lack in communication and in promotion of its brand. Therefore,
Aqua Golden Mississippi Company does some strategies to strengthen its brand
to solve this problem.
1.2. Identification of the Case
I will discuss the case by trying to answer the following questions:
1. What is the perception of customers about Aqua brand?
3
Maranatha Christian University
2. What are the strategies which Aqua Golden Mississippi Company
takes to strengthen its Aqua brand?
1.3. Objectives of the Study
The objectives of the research are:
1.
To know the perception of customers about Aqua brand.
2.
To know the strategies that Aqua Golden Mississippi Company takes
to strengthen Aqua brand.
1.4. Limitation of the Study
I focus the discussion on the problem which is faced by the Aqua Golden
Mississippi Company in relation with its Aqua brand.
1.5. Layout of the Thesis
The thesis starts with the Abstract, a concise summary of the entire paper in
Indonesian. This Abstract is followed by the Preface, in which acknowledgments
are given to those contributing and involved in the work. After that is the Table of
Contents, and followed by its four chapters:
Chapter I
is the introduction to the analysis.
Chapter II
contains the literary research.
Chapter III
is the case analysis.
4
Maranatha Christian University
Chapter IV
is conclusion and suggestion.
In the final part, the present writer presents the Bibliography.
5
Maranatha Christian University
CHAPTER IV
CONCLUSION AND SUGGESTION
In this chapter, I would like to give an overall conclusion of my thesis and
also give suggestions to the Aqua Golden Mississippi Company.
The Aqua Golden Mississippi Company has problems in making Aqua
brand different from the others when the customers cannot differentiate the
product. As a brand, Aqua is not strong enough to make the customers more
aware and loyal to its brand. Some of the customers regard Aqua as generic
product, not as distinctive mineral water product. The customers do not
realize that Aqua is not only a brand but also a trade mark, so they do not
mind if the sellers give them a different brand although what they actually ask
is Aqua.
According to the information that I find on the company’s website, the
Aqua Golden Mississippi Company has done some effective ways to make
Aqua brand stronger. The Aqua Golden Mississippi does some promotional
efforts which are intended to educate its customers and inform them about
the benefits of Aqua mineral water so that the customers will be
21
Maranatha Christian University
more aware of and more loyal to the product. The company hopes that it can
also change the perception of the customers about the product so that the
brand will be stronger. In doing the promotion, the Aqua Golden Mississippi
Company gives some prizes, makes new slogan at their website, gives
quizzes, and also gives testimonials to its customers. I find that these
promotional efforts which have been taken by the Aqua Golden Mississippi
Company match with the branding theories stated by Philip Kotler, Freddy
Rangkuti, and also David A. Aaker.
I would also like to give some suggestions for the progress of Aqua
Golden Mississippi Company. The company can do other promotional efforts
in order to increase customers’ awareness and loyalty, for instance: giving
one cup of Aqua mineral water products for free to the customers if they buy
one Aqua bottle in 1 liter size bottle. The company can also make advertorials
in local newspapers or magazines containing information and facts about
Aqua mineral water, or give charity for education or other social activities by
giving Rp.100 to charity for each selling of Aqua mineral water of any sizes.
They can also hold a talk show featuring famous celebrities or famous
doctors giving tips on healthy living. Besides, the company can also do
research by spreading the questionnaire about Aqua fact to know how far is
the perception of the customers. I hope that these suggestions can support
the Aqua Golden Mississippi Company’s attempts to make Aqua brand
stronger.
22
Maranatha Christian University
23
Maranatha Christian University
BIBLIOGRAPHY
From Books:
Aaker, A., David. Managing Brand Equity. New York: The Free Press, 1997.
Durianto, D., Sugiarto, and Tony Sitinjak. Strategi Menaklukan Pasar Melalui
Perilaku Merek. Jakarta: PT.Gramedia Pustaka, 2004.
Freddy, Rangkuti. The Power of Brands. Jakarta: PT.Gramedia Pustaka
Utama, 2004.
Kotler,
Philip.
Marketing
Management.
New
Jersey:
Prentice
Hall
International, Inc., 2004.
From Website:
http://www.kompas.com/marketing/news/. 16 November 2005
http://www.kompas.com/marketing/news/. 22 November 2007
http://www.danoneaqua.com. 21 May 2007
Maranatha Christian University