ASSESSING KRAKATAU STEEL PLATE BRANDING EFFECTIVENESS FROM CUSTOMER’S PERSPECTIVE
FINAL PROJECT
By R. Dhea Sekar Primandita 19007091
Undergraduate Program School of Business and Management Institut Teknologi Bandung
APPROVAL PAGE
ASSESSING KRAKATAU STEEL PLATE BRANDING EFFECTIVENESS FROM CUSTOMER’S PERSPECTIVE
By R. DHEA SEKAR PRIMANDITA ID No: 19007091
Final Project
Undergraduate Program of Management Study School of Business and Management Institut Teknologi Bandung
Approved By
Dr. Reza Ashari Nasution 132327353
“Assessing Krakatau Steel Plate Branding Effectiveness from Customer’s Perspective” R. DHEA SEKAR PRIMANDITA NIM: 19007091 Undergraduate Program, Institut Teknologi Bandung Advisor: Dr. Reza Ashari Nasution ABSTRACT PT. Krakatau Steel is one of the major steel mills in Indonesia whose main office located on Cilegon, Banten. As a big company which its market area covers national needs and sometimes international, PT. Krakatau Steel needs another party in distributing its product to the customers. Facts on the ground indicate that there are some cases where the stockiest cheats when they distribute Krakatau Steel’s plate product. With such considerations, then PT. Krakatau Steel decided to create their own brand for its plate product named KS Plate. This research was done to examine the extension of KS Plate branding role in the market according to customers’ point of view; whether the customers find that KS Plate guarantee the originality of PT. Krakatau Steel products, the customers’ perception about KS Plate brand, and find the influence of the new brand on customer interests to purchase the plate from Krakatau Steel. Qualitative Research methodology is used to gather customers’ deep perception about branding program in PT. Krakatau Steel. The research was done through interviewing 5 companies which are the customers of PT. Krakatau Steel and have purchased KS Plate. The data gathered consists of the interview results from each company then will be analyzed through content analysis for each company then the overall analysis will be gotten by pattern analysis. In industrial market like PT. Krakatau Steel is in, a strong brand showed through intangible things like value or functional properties of the product. There is a bond between the company and its customers since they not only sell products in short term; they sell trust. They need more than just a cheaper price, and the company name is the brand that customers think of and has its own value. Based on the interview, PT. Krakatau Steel has successfully solved the distribution problem by launching its KS Plate. Not only solve the problem cause by distributor, KS Plate also gives the added value to the customers by making them easier to work using KS Plate. Despite the good response gained for its brand product, the brand of PT. Krakatau Steel itself as a company has failed KS Plate in achieving the brand resonance from CBBE Pyramid model. It is because based on the customers’ opinion which located in Jakarta and Bekasi, PT. Krakatau Steel lacks in delivery time and order system. That minus point makes KS Plate still cannot enhance the customers will in purchasing KS product even it gets a good review. So, the company should make some improvement that can balance the brand equity of KS Plate as a company to increase the customers’ interest to purchase Krakatau Steel products. Keywords: Brand equity, branding, industrial market.
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“Assessing Krakatau Steel Plate Branding Effectiveness from Customer’s Perspective” R. DHEA SEKAR PRIMANDITA NIM: 19007091 Program Sarjana, Institut Teknologi Bandung Pembimbing: Dr. Reza Ashari Nasution ABSTRAK PT. Krakatau Steel adalah salah satu pabrik baja terbesar di Indonesia yang terletak di Cilegon, Banten. Sebagai perusahaan besar, PT. Krakatau Steel membutuhkan pihak lain dalam mendistribusikan produknya kepada pelanggan. Fakta di lapangan menunjukkan bahwa ada beberapa kasus di mana stokis/distributor yang mendistribusikan plat dari Krakatau Steel melakukan kecurangan yaitu mencampur produk Krakatau Steel dengan produk dari perusahaan lain dengan kualitas yang lebih rendah. Dengan pertimbangan tersebut, maka PT. Krakatau Steel memutuskan untuk membuat merek sendiri untuk produk plat mereka. Merek plat tersebut bernama KS Plate. Penelitian ini ditujukan untuk mengkaji peran KS Plate sesuai dengan sudut pandang pelanggan; apakah pelanggan merasa KS Plate menjamin keaslian produk PT. Krakatau Steel, persepsi konsumen tentang merek KS Plate, dan menemukan apakah ada pengaruh dari merek baru pada minat konsumen untuk membeli plat dari PT. Krakatau Steel. Penelitian ini menggunakan metode kualitatif melalui wawancara terhadap 5 perusahaan yang telah membeli KS Plate. Data penelitian terdiri dari hasil wawancara setiap perusahaan yang dianalisis menggunakan content analysis. Kemudian, analisis secara keseluruhan diperoleh menggunakan pattern analysis. Di pasar industri seperti PT. Krakatau Steel, perusahaan dan pelanggan tidak hanya menjual produk dalam jangka pendek, namun juga menjual kepercayaan. Mereka membutuhkan lebih dari sekedar harga yang lebih murah dan besarnya nama perusahaan memiliki nilai tersendiri. PT. Krakatau Steel telah berhasil memecahkan masalah distribusi dengan meluncurkan KS Plate. Tidak hanya mengatasi penyebab masalah oleh distributor, KS Plate juga memberikan nilai tambah kepada pelanggan dengan membuat mereka lebih mudah untuk bekerja dengan menggunakan KS Plate. Meskipun mendapat respons yang bagus terhadap merek untuk produknya, merek PT. Krakatau Steel sebagai perusahaan sendiari telah gagal dalam mencapai resonansi merek yang terdapat dalam piramid CBBA model. Hal ini karena berdasarkan pendapat pelanggan yang berlokasi di Jakarta dan Bekasi, PT. Krakatau Steel memiliki kekurangan dalam sistem pemesanan dan pengantaran. Sehingga, perusahaan harus membuat beberapa perbaikan yang dapat menyeimbangkan ekuitas merek KS Plate sebagai sebuah perusahaan untuk meningkatkan minat pelanggan untuk membeli produk Krakatau Steel. Kata kunci: Ekuitas merek, merek, pasar industri.
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FOREWORDS First of all, researcher would like to say thank you to Lord Allah SWT because without His helps, the researcher is not able to finish the final project well. “Assessing Krakatau Steel Plate Branding Effectiveness from Customer’s Perspective” is a final project which required for students who want to graduate in final year at School of Business and Management (SBM) Institut Teknologi Bandung. The writing of this final project will not be possible without helps from many parties. Researcher would like to give a deep and most sincere gratitude for those who contribute in the process of making this final project; •
My beloved family Mr. Rico Irfan Affiano, Mrs. Ida Yuliana Alka, and Phia Sekar Frianika. Many thanks for your unconditionally love, pray, and never ending supports. I miss you all so much I’m crying while I type this.
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Mr. Reza Ashari Nasution as my academic counselor at SBM ITB. Thank you for the guidance, advices, and patience you have given to me during the completion of my final project.
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Big family of R.H Sulaeman Affandie and H.M Adi Alka. Thank you for the attentions and those entire Bandung visits.
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My girls whom I do my final project with: Arimbi Hendriastuty, Arresty Wahyu Andhini, Gracia Satya Widi Respati, and Kinanti Marta Nuraida. Thank you for the sleepless night we spent together and SNSD late night dancing.
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My so‐called clan in Tutorial 3C: Denna, Iki, Redo, Beta, Andika, Kibar, Nyanya, Nila, Devi, Firra, Mega, Cio, Fian, Andi, Mas Win, Luthfan, Bang Marlon, Joni, Albi, Vita, Nindi, Abang, Icang, Yos, Gde, Sigap,
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Deru, and Deva for the ups and downs we have been through together. Thank you for all those happy and tough times, besties. Much loves for you all. •
Sultan Global Dipati Ukur, the place where I print all my tasks and projects.
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My lovely boarding house Kanayakan 12 and all the boarding mates: Kak Yovi, Nadia, Ipus, Vita, Kisah, Kiki, and Tya. Also Pak Yanto and Bu Ima who in charge to provide my needs in boarding house.
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Administrasi SBM: Mrs. Khumaeroh Ikum, Mr. Setiawan, and all. Thank you for your care, sincerity, and guidance in my 3 years life at SBM. Without your helps, SBM students could get lost.
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All my beloved SBM 2010 friends. I cannot mention you one by one guys but thank you for all the happiness we shared for 3 years at SBM.
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Mr. Herlambang Eka as Manager of Research and Market Development of PT Krakatau Steel, the department where researcher done the internship program and collect the information needed in this research.
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Ms. Rachma Kusumastuti as the researcher’s mentor in PT Krakatau Steel.
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All the respondents for their time and good cooperation while answer all the questions during interview.
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All colleges in Research and Market Development of PT Krakatau Steel: Mr. Murtyastanto, Mr. Bambang Hadi Prananto, Mr. Fajrin Hanggoro, Mr. Bayu, Mr. Arif Wicaksono, and Mr. Jati Santiono.
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Special thank goes to Alicia Keys, Ennio Morricone, Kings of Convenience, La Roux, Lady Gaga, Maroon 5, Regina Spektor, The Temper Trap, The Bird and The Bees, and Zero 7 for accompanying me in my play list every time I face my laptop and finish this final project until its last word.
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Hopefully this report can be helpful and give enough information for anyone who read it.
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LIST OF CONTENTS APPROVAL PAGE ABSTRACT …………………………………………………………………….. i ABSTRAK ………………………………………………………………………. ii FOREWORDS ………………………………………………………………….. iii LIST OF CONTENTS ………………………………………………………….. vi LIST OF FIGURES ……………………………………………………………… viii LIST OF TABLES ………………………………………………………………. ix CHAPTER 1 INTRODUCTION ……………………………………………… 1 1.1 Background …………………………………………………………. 1 1.2 Problem Identification ……………………………………………... 4 1.2.1 Research Questions ………………………………………………. 5 1.2.2 Research Scope ……………………………………………………. 6 1.3 Research Methodology …………………………………………….. 6 1.4 Report Structure ……………………………………………………. 7 CHAPTER 2 THEORETICAL FOUNDATION …………………………….. 9 2.1 The Basic of Branding Strategy ……………………………………. 9 2.1.1 Branding …………………………………………………………… 11 2.1.2 The Importance of Brand ………………………………………… 13 2.2 Brand Equity ………………………………………………………… 14 2.3 Assessing Brand Equity ……………………………………………. 17 2.4 Managing Brand Equity ……………………………………………. 19 2.5 Branding in Industrial Purchase Decision Context ……………… 20 CHAPTER 3 METHODOLOGY ……………………………………………… 23 3.1 Literature Study …………………………………………………….. 24 3.2 Data Collection ……………………………………………………… 24 3.2.1 Interview Design …………………………………………………. 25
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3.2.2 Select the Respondent ……………………………………………. 27 3.2.3 Sampling Techniques …………………………………………….. 27 3.3 Data Analysis ………………………………………………………... 29 CHAPTER 4 DATA ANALYSIS ……………………………………………… 31 4.1 Interview Analysis …………………………………………………. 31 4.1.1 Interview in PT Dok & Perkapalan Kodja Bahari …………….. 31 4.1.2 Interview in PT Eptco Dian Persada ……………………………. 32 4.1.3 Interview in PT Bakrie Metal Industries ………………………... 33 4.1.4 Interview in PT Wijaya Karya …………………………………… 35 4.1.5 Interview in PT Mitra Logam Perkasa …………………………. 36 4.2 Overall Analysis ……………………………………………………. 37 4.2.1 KS Plate Brand as Original Product Guarantee ……………….. 37 4.2.2 Customers’ Perception …………………………………………… 38 4.2.3 Influence of KS Plate Brand on Customer Interest to Purchase 40 CHAPTER 5 CONCLUSION AND RECOMMENDATION ……………... 45 5.1 Conclusion …………………………………………………………… 45 5.2 Recommendation …………………………………………………… 47 REFERENCES …………………………………………………………………… 51 APPENDIXES ………………………………………………………..…. (5 pages)
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LIST OF FIGURES Figure 2.1 Customer‐Based Brand Equity Pyramid …………………….…. 15 Figure 3.1 Research Design …………………………………………………… 23 Figure 3.2 Interview Design ………………………………………………….. 26 Figure 4.1 Researcher interviewed Mr. Endang from PT Bakrie ………… 35 Figure 5.1 Distribution Process in PT. Krakatau Steel ……………………. 46
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LIST OF TABLES Table 3.1 List of Respondent ……………………………………………….… 28 Table 4.1 Differentiation between KS Plate and Competitors ………….. 39 Table 4.2 Differentiation between PTKS and Other Steel Producers ….. 45 Table 5.1 Managing Brand Equity in Krakatau Steel …………………….. 49
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