Case Document

Marketing Year 2023

FASHIONING THE FUTURE: ZALORA`S OMNICHANNEL TRIUMPH IN SOUTHEAST ASIA

In the vibrant tapestry of Southeast Asia's retail scene, Zalora emerges as a luminary, navigating the intricate dance of digital transformation with aplomb. As 2023 unfolds, the fashion industry witnesses a seismic shift towards digital, and amidst this tumult, Zalora's journey offers a masterclass in strategic evolution. Zalora's inception in 2012 was marked by a bold vision - to integrate online and offline retail experiences seamlessly. This pioneering omnichannel approach, though met with skepticism, set the stage for a retail revolution in Southeast Asia. But Zalora didn't stop there. Recognizing the diverse tapestry of its customer base, the company pivoted towards a data-driven personalization strategy. By harnessing the power of AI and machine learning, Zalora transformed its customer interactions, ensuring that each touchpoint, be it web, mobile, or email, resonated with individual preferences and buying stages. This strategic shift underscores the profound impact of personalization in shaping retail strategies, enhancing customer engagement, and fostering loyalty. Zalora's strategic foray into digital payment solutions was audacious and timely in a region dominated by cash-on-delivery transactions. This move, necessitated by logistical challenges and the quest for operational efficiency, showcased Zalora's proactive approach to addressing market challenges. The company's investment in this domain streamlined the payment process and enhanced customer convenience, setting a new benchmark for e-commerce operations in the region. Beyond the digital realm, Zalora crafted tangible, memorable customer experiences. Initiatives like pop-up stores, fashion shows, and community events transformed Zalora from a mere online retailer to a fashion community curator. The #ZALORAYA2023 campaign stands as a testament to this, turning a traditional shopping experience into a cultural extravaganza, reaching millions, and solidifying Zalora's position as an experiential retail powerhouse. Zalora's narrative offers invaluable insights into the future of retail in Southeast Asia. From its omnichannel prowess to its emphasis on personalization, its innovative payment solutions, and its experiential retail endeavors, Zalora stands as a beacon, illuminating the path for retailers in the digital age.

Author

Sukma Putra, SE., M.Ed.

Sukma Putra, SE., M.Ed.

Dr. Peri Akbar Manaf, B.Sc., MBA.

Dr. Peri Akbar Manaf, B.Sc., MBA.

Marketing Year 2023

OMNICHANNEL SHOWSTOPPERS: DISSECTING THE OMNICHANNEL STRATEGIES OF MATAHARI AND MAP GROUP IN INDONESIA`S DYNAMIC MARKETPLACE

Two retail giants dominate Indonesia's bustling and vibrant retail scene, Matahari Department Store and MAP Group. These formidable competitors, each with their strengths and unique market offerings, are embroiled in an exciting battle for retail supremacy. As the market evolved and consumer tastes change, both companies have adopted an omnichannel strategy to stay ahead of the curve and win Indonesian shoppers' hearts (and wallets). As the two companies try to win their respective markets, some interesting evidence is unfolding from their respective omnichannel strategies. From seamlessly integrating online and offline channels to innovative use of personalization and data-driven decision-making, these leading retailers are helping their customers stay engaged and satisfied and get more. However, there is another type of customer. This type of customer is their investor. In this case study, we explore the competitive landscape of the Indonesian retail industry, focusing on two retail giants, Matahari Department Store, and MAP Group, through the lens of an investor. As both companies strive to excel in the rapidly evolving market, they have adopted omnichannel strategies to stay ahead of the curve, enhance customer experience, and drive growth. The case delves into both companies' financial performance, market share, brand strength, and competitive positioning. It also examines the effectiveness of their respective omnichannel strategies, which are designed to address the unique challenges of the Indonesian retail market, such as competition from e-commerce, poor infrastructure, limited consumer access, and supply chain inefficiencies. The case study highlights the importance of analyzing various factors, including the relationship between information on the merits of each company's financial performance, omnichannel strategy effectiveness, market share, brand strength, or competitive positioning, to make informed investment decisions. By comparing the omnichannel approaches and financial performance of Matahari Department Store and MAP Group, investors can gain valuable insights into their respective strengths and weaknesses. Through this investor's perspective, the case study invites readers to evaluate and contrast the investment potential of these two retail titans in Indonesia's dynamic and competitive retail industry. Ultimately, the case study aims to equip investors with the knowledge to identify the most compelling investment opportunity between Matahari Department Store and MAP Group as they navigate the challenges and capitalize on the growth opportunities in the fast-growing Indonesian retail sector.

Author

Dr. Peri Akbar Manaf, B.Sc., MBA.

Dr. Peri Akbar Manaf, B.Sc., MBA.

Miranda Tanjung, Ph.D

Miranda Tanjung, Ph.D

Sandy Setiawan S.E., M.M.

Sandy Setiawan S.E., M.M.

Marketing Year 2023

A NEW ERA OF TELEVISION: WeTV’s IMPACT ON THE INDUSTRY’S LANDSCAPE

WeTV allows you to view TV episodes, movies, animation, and variety shows on internet-connected devices. The company's earlier success came from its different approach toward the international market. WeTV is the subsidiary of Tencent Video, having all Tencent Video’s features but with localization. WeTV produces its own original local series, local marketing strategy, and localized language and interface to give the most optimum experience for the users. Entering the market as a mixed profit business model, WeTV supplies free content for the audience with ads and a subscription version to watch earlier episodes than users that are using the free account. This type of business model fits the Indonesian market as they have greater willingness to watch ads as an exchange for free content. But this also limited WeTV footsteps for the past year, WeTV has been popular among the middle-low-income segments but now, as WeTV is more eager to generate profit through subscription and lessen the role of advertising income, it did bring critics to the platform. Moreover, as newer OTT comes through the industry, WeTV is not the only one providing local original content. Giant players such as Netflix, VIU, Amazon Prime, and Disney+ Hotstar have also started to make their original local productions. Moreover, many local competitors also bring more cultural fit and differentiation that threatens WeTV’s position in the market. From a commercial perspective, how can WeTV balance audience interest and succeed in this dynamic relationship in the market to last over time? Could WeTV beat its competitors and be the market leader in Indonesia OTT market? What changes in Strategy WeTV should implement to better fit the consumer?

Author

Aryo Bismo , SE, MM.

Aryo Bismo , SE, MM.

Marketing Year 2023

LEAVING BRICK AND MORTAR: STILL FEEL MORE DO MORE

Bose was founded because of dissatisfaction and a desire to achieve outstanding product quality. The man behind the gun is Amar G. Bose. Amar wanted to create a speaker system in 1968, or four years after his dissatisfaction. He was dissatisfied with the sound quality provided by his new stereo. His goal was to encourage everybody to experience the same quality level as live music while using a speaker system. Until his death, he was a faculty member of the Massachusetts Institute of Technology. This company was founded in 1964; although Bose was formally established in 1968, it focuses on technology, hardware, and equipment by developing sound solutions for entertainment, home audio, aviation, and automotive industries. When Dr. Amar Bose, the company’s founding father and an audio pioneer, died in 2014, Bose was forced to undergo a time of adjustment. As for the commercial side, the advent of Beats Electronics necessitated that Bose devise a new approach for the consumer market. While some audiophiles believe Bose is the superior product, no one can deny the immense popularity of Beats headphones among the public. Bose may have sued Beats early this year for noise-canceling patent infringements, a matter that has since been resolved. Bose waited to act until after Apple announced its $3 billion acquisition of Beats Electronics — was it just a coincidence? The final say rests with you. The management of Bose knows that its customers will appreciate the company’s research efforts. In terms of how the world is evolving and how people are listening to music and obtaining their music from the cloud, there is a lot of potential for Bose right now. Every year, more than 400 million mobile devices are purchased, and Bose will be there to provide users with headphones or a wireless speaker.

Author

Dr. Ir. Dewi Tamara, MM., MS.

Dr. Ir. Dewi Tamara, MM., MS.

Dr. Rini Setiowati, SE., MBA.

Dr. Rini Setiowati, SE., MBA.

Dr. Anita Maharani, S.E., M.M.

Dr. Anita Maharani, S.E., M.M.

Marketing Year 2023

FRESHBOX UNVEILED: REVOLUTIONIZING THE FOOD CHAIN FROM THE FARM TO TABLE AND BEYOND

Freshbox is an e-grocery platform founded in 2018 by Matthew James. He envisioned bringing fresh produce from farmers to consumers’ tables directly, thus the concept ‘farm to table’ was introduced. Certainly, when the COVID-19 pandemic hit in late 2019, the e-grocery industry soared and Freshbox was able to grow significantly. They began to open offline stores starting with the first one in Mall of Indonesia. Despite the promising industry trend, the fact that the pandemic was coming to an end and customers started going back offline posed a threat to Freshbox. Other e-grocery platforms began to falter one by one, including the big players as well. The shifts in consumer behavior have forced Freshbox to go to survival mode. What strategies should Freshbox implement to survive in the constantly changing market?

Author

Dr. Adilla Anggraeni, B.Bus., MBA.

Dr. Adilla Anggraeni, B.Bus., MBA.

Bryna Meivitawanli, SE, B.Sc., MBA, Ph.D.

Bryna Meivitawanli, SE, B.Sc., MBA, Ph.D.

Marketing Year 2022

NETFLIX VS DISNEY+ HOTSTAR VS HBO: HOW DIGITAL MARKETING LEAD ON CONSUMER CHANGING BEHAVIOR

Netflix allows you view TV episodes, movies, animation, and documentaries on internet-connected devices. Netflix has transformed the home entertainment sector during the past 20 years. Netflix disappears every time the home entertainment industry changes. It's waiting for the next consumer fad. Netflix knows its market well. It altered the market by mailing DVDs and then allowing customers to watch films anywhere. The company's early streaming success came from licensing hundreds of successful movies and TV series from content partners. Even when it started generating its own material in 2012, most Netflix customers watched non-original programs, such repeats of Friends, The Office, and Grey's Anatomy (The Walt Disney Company). In 2019, content owners began offering their services. Inspired by Netflix's success, they decided to jump into video streaming, placing them in direct rivalry with their former distribution partner. Netflix's biggest issues are ahead. How should Netflix, a single-play entertainment corporation, react to large competitors?

Author

Aryo Bismo , SE, MM.

Aryo Bismo , SE, MM.

Marketing Year 2022

NETFLIX: CHANGE THE GAME WITH BIG DATA

Netflix is a streaming service that offers a wide variety of award-winning TV shows, movies, anime, documentaries, and more on thousands of internet-connected devices. One of the main advantages that Netflix has is its technology. Especially their recommendation system. From 2012 onwards, Reed Hastings and Marc Randolph using big data to filter their user information, which removes unnecessary information from the data stream before it reaches users. Netflix offers a recommendation system that can make it easier for users to watch. Users can easily find movies or series with the type of genre or other things they like through the recommendation system offered. This is one of Netflix's ways to satisfy and gain its users.

In 2020 Netflix was able to gain 18.2 million new users. During the pandemic, many people use Netflix to deal with boredom and stress. So it became one of the factors that increased Netflix during the pandemic. However, the recommendation system also has a significant impact on Netflix. The recommendation system provides users with a sense of comfort and convenience. Customers can quickly determine which movies or series to watch according to their preferences.

The use of big data is obtained from customer history using Netflix. The weak point of big data is that there may be an excessive amount of data to process so sometimes inaccuracies are found in the recommendation system. According to this matter, Netflix tries to overcome this by dividing the task to its researchers (Exhibit 1) based on their problem solving skills. So that in using big data which is more consumer centric, Netflix hopes to improve and provide better services or products to its users.

Author

Aryo Bismo , SE, MM.

Aryo Bismo , SE, MM.

Marketing Year 2020

PRUCEKATAN: DIGITAL MARKETING SURVIVOR

The income of the premium of the life insurance industry declined during the COVID-19 pandemic and caused the industry to post losses (Exhibit 1). And Government Regulation Number 21 of 2020 on Large-Scale Social Restrictions (PSBB) to stay at home and maintain a distance so that sales agents cannot sell insurance products face-to-face directly to potential customers. The president director of Prudential Indonesia, Jens Reisch said that "the appearance of COVID-19 in Indonesia has caused activities to occur at home, one of which is the implementation of Working From Home (WFH). In this context, Prudential undertook various initiatives to continue providing services that meet customer needs." To address these issues, Prudential Indonesia and other companies that are members of the Indonesian Life Insurance Association (AAJI) applied to the financial services authority (OJK) through letter Number 087 / IA.KPI / AAJI / 2020 dated March 24. 2020 on the Proposed Changes to Various Regulations Related to Marketing and Marketing. Sale of Insurance Products to Prepare the Life Insurance Industry to Face Problems Caused by the Corona Virus and Facing the Digital Era and letter number 101 / PRI / AAJI / V / 2020 regarding May 5, 2020, PAYDI marketing applications with direct meetings in digital or electronic media. In response to this letter, on June 22, 2020, Prudential Indonesia obtained permission from the Financial Services Authority (OJK) to conduct virtual face-to-face marketing of unit-linked insurance products. The wave of digitization has affected various sectors, fields, and industries, including life insurance. Preparation for digitization in the insurance industry is ripe because many have invested in digital technology. Additionally, many insurance companies have collaborated with digital technology companies to improve customer services to be more efficient and faster. The president and director of Prudential Indonesia, Jens Reisch, said that "the appearance of COVID-19 in Indonesia has caused activities to occur at home, one of which is the implementation of Working From Home (WFH). In this context, Prudential carries out several initiatives to continue providing services that meet customer needs". In the process, Jens managed to find a solution after many discussions with his team, "We are proud to have obtained permission from OJK to market unit link products through a virtual face-to-face, and launch a digital marketing channel, called PRUCekatan. The product uses integrated end-to-end digital systems and capabilities. Prudential Indonesia's marketing strategy was developed and managed directly by Prudential Indonesia. Customers and prospects can now consult with marketers about their insurance needs and realize life insurance applications anytime, anywhere in Indonesia conveniently and most importantly, safe. "

Author

Dicky Hida Syahchari, S.T., M.M., Ph.D

Dicky Hida Syahchari, S.T., M.M., Ph.D

Dr. Maria Grace Herlina, S.Sos., M.M.

Dr. Maria Grace Herlina, S.Sos., M.M.

Marketing Year 2020

BETWEEN THE BREAKTHROUGH AND RUMOR OF BANKRUPTCY: NET TV

NET TV is one of the private television stations in Indonesia. This television station claims to be different from other television stations in Indonesia. The most interesting aspect is the different form of programs offered by this television station to the public. For example, if other television stations broadcast soap operas, comedies that have violence, or gossip news shows, NET TV claims it will not broadcast these common programs. On the contrary, NET TV offers programs which according to the company will increase the usefulness of public knowledge.

Author

Sukma Putra, SE., M.Ed.

Sukma Putra, SE., M.Ed.

Harly Toindo, MM.

Harly Toindo, MM.

Dr. Anita Maharani, S.E., M.M.

Dr. Anita Maharani, S.E., M.M.

Marketing Year 2019

ARTOTEL GROUP: THE ART OF STEALING MARKET SHARE

The owner of Artotel group comes from the family who own the Marriott Surabaya. Wishing to expand to another market, Artotel was established with the idea of making art available to everyone. The hotel was aimed at marrying the concept of a boutique hotel decorated with art works produced by local artists, resulting in a comfortable and memorable place to stay. Artotel has undergone several changes in its strategic direction. Being an entrepreneurial company, it sees expansion to other businesses and types of accommodation as a way to survive in the turbulent environment. Artotel realizes that its main strength is its ability to have a ‘breathing brand DNA’, i. e. a brand that keeps on evolving depending on its market environment. This case will discuss the different methods that Arotel has employed to gain more market share and maintain its brand DNA.

Author

Dr. Adilla Anggraeni, B.Bus., MBA.

Dr. Adilla Anggraeni, B.Bus., MBA.

Indra Kusumawardhana, BA (Hons), M.Sc.

Indra Kusumawardhana, BA (Hons), M.Sc.

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