FMS2

THE MARKETING COMMUNICATION STRATEGY OF BLUE BIRD TAXI
TO MAINTAIN MARKET LEADER POSITION AFTER USING THE
HIGHEST TARIFF

THESIS

Presented by:

Name    :  Ferlin Marcini Reynaldo M.
Student ID    :  1660.302.2008
Concentration      :  Marketing Communication

In Partial Fulfillment of the Requirements for
The Magister Ilmu Komunikasi Degree

MASTER OF ARTS IN COMMUNICATION STUDIES

The Postgraduate Programme of
Sekolah Tinggi Ilmu Komunikasi
The London School of Public Relations Jakarta

JAKARTA
APRIL, 2011

RESEARCH ORIGINALITY STATEMENT

I, Ferlin Marcini R. Mogot, a student of Post Graduate Program majoring in Marketing

Communications with the student ID number of 166.0302.2008, certify that the data in my thesis

entitled “The Marketing Communication Strategy of Blue Bird Taxi to Maintain Market Leader

Position after Using the Highest Tariff” is authentic.

If in the future, the manuscript is proven to be a result of plagiarism, I am willing to accept

sanction and cancellation of my master’s degree at STIKOM – The London School of Public

Relations – Jakarta.

February 28th, 2011

Ferlin M. R. Mogot

ACKNOWLEDGEMENT

I would like to express my sincere gratitude to all that have helped me in the writing

process of this thesis.
1. To the almighty God for blessing me with the opportunity to further my studies and

knowledge by providing me with good health, a well being, all the great things in life and

carried me through the difficult times. Hallowed be Thy Name.
2. To my family including my parents John F. Mogot and Ingrid Wurangian; my brothers,

Pierre Mogot and family, Arvin Mogot and family and Rory Mogot. Your care and support

is what makes this thesis possible.
3. To my relatives including all the Mogot family and all the Wurangian family especially my

late grandfather Hein Wurangian, may you rest in peace with Jesus Christ. I wish I

could’ve been there at your last birthday party.
4. To all the informant of Blue Bird Group team including Tony Liandouw as the Corporate

Image Manager, Kanti Saraswati as the Marketing Communication, Teguh Wijayanto as

the Head of Public Relations and Mohammad Dahlan as the taxi driver.
5. To all the interview respondents including Novitasari, Maria Pulo, Rian Hapsari, Natalia

P. and John
6. To Mr. Victor Siburian as the Head of the Post Graduate Program.
7. To Mr. B. Sri Tunggul Pannindrya as my Thesis Advisor.
8. Ibu Prita Kemal Gani, MBA, MCIPR, APR as the Director of STIKOM – The London

School of Public Relations – Jakarta

9. All the staff of Post Graduate Program of LSPR including all my lecturers, panelist,

Academic department, Thesis Bureau, Finance department, the Library and all the other

departments.
10. To all my classmates including the Acceleration IIIB Honor class, MK IIID class and MK

IIIC Honor class.
11. To Google.com, bloggers, online writers and marketing communication studies website.

April 17th, 2011

Ferlin Mogot, M.Si

ABSTRACT

GRADUATE SCHOOL OF COMMUNICATIONS
THE LONDON SCHOOL OF PUBLIC RELATIONS – JAKARTA
MASTER OF ARTS IN COMMUNICATION STUDIES
POSTGRADUATE PROGRAMME

Name : Ferlin Marcini Reynaldo Mogot
Student ID : 166.0302.2008
Thesis Title : The Marketing Communication Strategy of Blue Bird Taxi to
Maintain Market Leader Position After Using The Highest Tariff
Total Pages : 157 Pages, 17 Figures, 19 Tables, 8 Attachments
References : 21 books, 4 Journals, 7 Website, 1 Article

Blue Bird Group taxi (BBGT) is the market leader in regular taxi services in Indonesia. During

September 2008, BBGT raise their argo tariff flagfall or the starting price to six thousand rupiah

and became the highest price taxi in Jakarta. However, despite using the highest price tariff and

the request to lower the taxi tariff by some people that consider the price is too high, BBGT

maintain their position as the market leader with 59% of the market share in 2010.

This research objective is to explain the marketing communication (marcom) strategy use to

support BBGT to maintain the market leader position especially in the Jakarta area. This

research uses a qualitative descriptive method by gathering data through in depth interview with

key informant and a complete participation observation.

BBGT marketing communication strategy is analyzed using Kotler et al marketing strategy,

competitive advantage strategy and marketing mix; Ouwersloot and Duncan marketing

communication 6 steps Zerobased Planning Process; and P.R. Smith 12 marketing

communication mix.

Based on the research, BBGT marketing communication objective is to increase brand

awareness and brand positioning of BBGT as a positive transportation partner and as the best

regular taxi service according to their motto of ANDAL which stands for safe, comfort, easy and

personalize within the year 2009 and 2010. To achieve this, BBGT uses an integrated marketing

communications (IMC) plan by using Personal selling, Advertising, Direct marketing, Public

Relations, Sponsorship, Exhibitions, Corporate identity, Packaging, Pointofpurchase and

merchandising, Word of mouth, Internet and new media. The only marketing communication mix

not used by BBGT is sales promotions because BBGT users are not economy price seekers.

Through BBGT IMC, the author concludes that although a company has the best product, best

distribution system and the biggest market share in an industry, it is still important to have an

integrated marketing communication plan to maintain a positive image, high brand awareness

and to create a customer loyalty program in order to maintain the market leader position.

Some of the recommendation that the author gives is to use personal selling inside the taxi to

get loyal customer to sign up to use the credit voucher, to enhance the magazine inside the

BBGT because it is effective and use by the majority of the customers and the driver, to further

promote BBGT ‘ANDAL’ positioning so people will remember it, and to use industry research

that is already available to measure marketing communication and brand equity results such as

IMAC awards and Top Brand awards, besides using the usual total sales and incoming calls.

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
Identify the Marketing Communications Strategy use to
Communicate a Better Value over a Higher Price................ 39
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 PointofPurchase 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

1
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.

2
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/2008/08/2
5/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

3
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

4
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.
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

5
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

6
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=Ar
ticle&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.

7
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?”

8
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.

9
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.

10
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

11
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.

12
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
Problem
recognition
Information
search
Evaluation of
alternatives
Purchase
decision
Postpurchase
behavior

13
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.
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).

14
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.

15
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.

16
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.
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

17
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

18
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.

19
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.

20
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

21
nichemanship is specialization along market, customer, product or
marketing-mix lines.
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.

22
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

23
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

24
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)
2.8. Marketing Communication Mix
Marketing communications is closely associated with its tools or
called the communications mix or the promotional mix. According to Smith
et al., (2002:11) the marketing communications mix consists of the
following communication tools:
a. Sales force (personal selling)
b. Advertising
c. Sales promotions
d. Direct marketing (sometimes called database marketing)
e. Public Relations
f. Sponsorship
g. Exhibitions
h. Corporate identity

25
i. Packaging
j. Point-of-purchase and merchandising.
k. Word of mouth.
l. Internet and new media
Personal selling is promotion via a sales pitch by a sales
representative to a prospect or by a retail assistant to a customer,
guaranteeing exposure to self-selected members of a target market.
(Baker, 2003:420) Personal selling includes according to Foster (1998:78)
face-to-face sales meetings, telephone sales calls, videoconferencing,
tradeshows and exhibitions, conferences/ seminars, and word of mouth.
According to Czinkota and Ronkainen (2001:405), personal selling is the
most effective of the communication tools available to the marketer.
However, its costs per contact are high.
Advertising is a non personal, paid announcement by identified
sponsor. It is used to reach large audiences, create brand awareness, help
differentiate a brand from its competitors and build an image of the brand.
(Duncan, 2005:7). Smith (1998:297) also mentions that advertising builds
associations between brands, logos, images, and benefits — a form of
classical conditioning. A few advertising media examples include TV,
radio, newspaper, magazines, and cinema (Yeshin, 1998:175):
Sales promotion definition by The International Chamber of
Commerce (ICC) is a: „marketing devices and techniques which are used

26
to make goods and services more attractive by providing some additional
benefit, whether in cash or in kind, or the expectation of such a benefit
(Boddewyn & Leardi, 1989: 365) Sales promotion (SP) is used as short-
term incentives to encourage purchase or sales of a product or service.
According to Smith (2004:357) there are three main categories of sales
promotion:
 Customer promotions (premiums, gifts, prizes and competitions,
e.g. on the back of breakfast cereal boxes)
 Trade promotions (special terms, point-of-sale materials and free
pens, diaries, competition prizes. et cetera)
 Sales force promotions (incentive and motivation schemes)
Direct marketing is the use of mail, telephone, fax, email, or Internet
to communicate directly with or solicit response or dialogue from specific
customers and prospects. (Kotler & Keller, 2006:536) Direct marketing
brings the market directly into the home or office of an individual buyer
instead of the buyer having to go to the market. Direct marketing includes
direct mail, telemarketing, door-to-door selling, direct response advertising
(TV, radio, cinema, web and press advertisements that solicit an
immediate response, e.g. ―phone now‖ or fill in the coupon‖), computerized
home shopping (link home computer with a store so that one can browse
around the aisles, pick up merchandise, inspect it by turning it around on
screen, et cetera.), home shopping networks, and miscellaneous (stuffers,
inserts, leaflet drops house to house distribution). (ibid)

27
Public relations definition by UK Institute of Public Relations (IPR) is
‗the planned and sustained effort to establish and maintain goodwill and
mutual understanding between an organization and its publics‖. Public
relations is concerned with many publics while marketing transitionally
focuses on markets or just three of the public, i.e. customers, distributors,
and competition. These include employees, investors, suppliers,
customers, distributors, legislators/regulators/governments, pressure
groups, the community, the media, and even competition. (Smith,
2004:444) Public relations departments use many different tools including
Press relations, Product publicity, Public affairs, Lobbying, Investor
relations, Development, News, Speeches, Special events, Written
materials, and Audio visual materials.
Sponsorship is a kind of promotion where a product or a company
is associated with an entity, event or activity. The sponsoring company is
of course hoping to get some good publicity and media coverage out of
sponsoring, but problems may occur for the company if the activities they
are sponsoring are failing or turning out in a less favorable way. (Smith,
2004:483)
Exhibitions are unique in that they are the only medium that brings
the whole market together — buyers, sellers and competitors — all under
one roof for a few days. Products and services can be seen, demonstrated
or tested, and face-to-face contact can be made with a large number of
relevant decision-makers in a short period of time. Relationships can be

28
strengthened and opportunities seized if planned carefully. (Smith,
2004:504)
Corporate identity is what is says — a visual means of identifying a
corporation, company or organization. Logos and names are only a part,
albeit a very obvious part, of an organizations identity. Corporate identity is
a strategic asset that helps to achieve the longer-term communication
goals. It cannot therefore be used as a short-term tactical tool like
advertising or PR, which can change from day to day, if required. (Smith,
2004:654)
Corporate identity is a symbolic uniform that acts as a flag
expressing everything about the organization. It is a visual system, which
uses all the point of public contact. This includes the ―permanent media‖ or
buildings (exterior and interior), signage, vehicles, uniforms, business
forms (invoices, cheques, letterhead. et cetera), literature (product
brochures, annual reports), exhibitions, et cetera. (Smith, 2004:654)
Packaging is a promotion via display, guaranteeing exposure to
customers at the point of sales, but not to a wider target audience. (Baker,
2003:420) The design of the pack can create competitive advantage by
adding value, improving the product (e.g. improving the freshness or
making it easier to pour, et cetera), developing stronger shelf presence,
positioning a brand in a particular way, and creating or strengthening the
brands relationship with the buyer. Packaging can also be an

29
extraordinarily effective advertising medium, particularly in terms of cost
and penetration, and reach or cover of a target audience. On the shelf and
in the home it continues to work day in, day out, for 52 weeks of the year.
(Smith, 2004:542)
The point-of-sale is the point in the buying cycle where the
customer is physically in front of the product or service and is about to
make decision whether to buy or pass by. In many consumer markets the
consumer‘s final decision to buy is often made inside the store, not
outside. Merchandising techniques such as display and store design are
therefore important communication tools that can guide a buyer towards
making a purchase. (Smith, 2004:495-496)
According to Duncan (2002), merchandising is in store promotional
materials, activities and messages to promote in store and create
promotional ambiance. Point of purchase is described to stimulate
consumer purchasing and dealer and sales-force effectiveness in the
short-term, through temporary incentives and displays. (Duncan, 2002)
Word of mouth (WOM) is by far the most potent on a one-to-one
basis of all the elements of the communication mix. No amount of
advertising or expert selling could compete with a colleague or friend
recommending or criticizing a particular product or service. People talk
about organizations, their products, their services and their staff, whether it
is a complaint, admiration or an endorsement. Other things that people

30
discussed are marketing communications, including advertising
campaigns, editorial stories, publicity stunts and special offers, which are
discussed. Other devices and techniques that encourage WOM process
are postcards, digital postcards, T-shirts, photographs, awards and
certificates (issued to visitors, customers and enquirers) and the Internet
through news groups, chat-rooms, discussion forums, and email chain
letters. (Smith, 2004:590)
The Internet is an electronic medium based on broadcasting and
publishing which facilitates two-way communication. (Berthon, Pitt &
Watson: 1996) These exchanges are not physically face-to-face, nor time
bound. Essentially the communication is through computers on networks,
so that individuals and organizations can communicate directly with one
another regardless of where they are or when they wish to communicate.
(Berthon et al.,:1998) The online marketing communication tools of the
internet are online advertising (banners, pop-ups, interstitials, e-mails,
newspaper-like standardized ads, URLs, advertising in chat rooms), online
personal selling, online sales promotion, online public relations, online
direct marketing and web site.
2.9. Marketing Communication Strategy Planning
2.9.1 Strategic Planning Process
Marketing communication (MC) strategy cannot exist in isolation
from marketing strategy which in turn is directly linked to corporate

31
strategy. The simple strong relationship between the three levels of
strategy is shown in Table 2.2. (Smith et al., 1999:97)
Figure 2.2.
Three Levels of Strategy
(1)
Corporate
Strategy
(2)
Marketing Strategy
(3)
Marketing Communication Strategy
Source: P.R. Smith et al (1999)
Planning can be carried out using a top-down or bottom-up
approach, or preferably using a mixture of the process at each of the three
levels. In all situations MC must be developed with an awareness of its fit
within the overall strategic planning framework.
2.9.2. Marketing Communication Strategy Planning
Ouwersloot & Duncan (2007:124-128) suggests the Zero-based
planning for MC. The ―zero‖ means that planning starts with no
preconceived notions about what MC functions and media are needed.
This makes sense because competitors and distribution channels are
constantly changing, as are customer‘s wants and needs. This planning
system has a six step process and is applicable to business-to-consumer
and business-to-business companies, and to companies of every size.

32
Figure 2.3. The Zero-based Planning Process
 Step 1: Identifying Target Audiences
Both B2C and B2B companies, segment customers into groups
based on certain characteristics and the likelihood that group
members will buy the product, then companies target messages
specifically to these key audiences. Targeting focuses the MC effort
on:
 Current customers most likely to repurchase or influence
purchases
 Customer and prospects that needs special attention (less
purchasing, customer service problem, have not yet purchase)
 Prospects that have never bought the brand but might buy it.
2. Analyzing SWOTs
1. Identify Target Audiences
4. Develop Strategies &
Tactics
3. Determine Marketing
Communication Objectives
6. Evaluate Effectiveness
5. Determine the budget

33
Other stakeholder who affect or influence these customers and
prospect may also be targeted. (Ouwersloot & Duncan, 2007:125)
 Step 2: Analyzing SWOTs
A SWOT or strength-weakness-opportunities-threat analysis is a
structured evaluation of internal situations (strength and weakness)
and external situations (opportunities and threat) that can help and
hurt a brand. In this case the SWOT analysis is restricted to the
communications and brand characteristics that are encountered.
Other SWOT elements found in the marketing planning level can
become irrelevant. (Ouwersloot & Duncan, 2007:125-128)
Strengths are competitive advantages, weakness are competitive
disadvantages. Strength should be leveraged and weakness fixed.
Company can make changes in the product, price, place, promotion
that will in turn affect the customer‘s perception. This includes how
the customer perceive brands innovativeness, convenience of the
distribution, pricing compared to competition, expertise of sales
force, condition of physical facilities, overall financial strength, brand
image, brand positioning, corporate culture, and core values.
The mixture of opportunities and threat are external factors that
companies must live with. Threats are marketplace conditions that
reduce the perceived value or attractiveness of a brand or that
result in its being more costly to make or provide. Changes in the
media landscape can also be a threat both on the consumer (e.g.
people spend less time reading) or supply side (e.g. the explosion
of television channels consumers can choose from). Opportunities

34
are social and economic conditions and situations in the
marketplace that can positively alter customer‘s attitudes about and
behavior toward a brand or its communication.
SWOT needs to be analyzed after it has been identified. This
includes the following aspects:
 Realistic Damage to brand relationship and brand equity if a
weakness or threat is not addressed
 Realistic Benefit if a strength or opportunity is used to its full
potential
 Cost of leveraging each SWOT
 Time Frame in which the company has to address or leverage
each SWOT
 Step 3: Determine Marketing Communication Objectives
Objectives are what marketers want to accomplish with marketing
communication. The marketing communication objective is
determined by addressing and utilizing the important SWOT
findings. Since integrated marketing communication is about
building and managing brand relationship, therefore there are two
type of objectives: communicational and behavioral. These
objectives can be seen by through the AIDA model stages of effect,
which stands for attention, interest, desire and action. The first three
steps in the AIDA model suggest that a brand have communication
objectives in order to reach specific levels of brand awareness,
brand interest and brand desire. The fourth step in AIDA model is
the behavior objective which involves the customer taking action.

35
Well written objectives pass the SMAC test which stands for
Specific, Measureable, Achievable and Challenging. (Ouwersloot &
Duncan, 2007:129-132)
 Step 4: Develop Strategies and Tactics
Strategies are ideas about how to accomplish objectives. Tactics
are specific actions to be taken to execute a strategy and are
execution details that bring idea to life. The phases of strategy
development are:
 First phase is selecting the MC and media mixes
MC mix is the selection of MC functions used at a given time as
part of a marketing program. Media mix is a selection of media
channels used to deliver brand messages.
 Second phase is selecting the creative idea
Strategy involves timing and scheduling to determine which media
placements, promotional programs and other MC activities should
happen first or last or in between. (Ouwersloot & Duncan,
2007:132-135)
 Step 5: Setting the budget
MC budget comes from the marketing budget. The budget depends
on SWOT of step one. There are many ways to prepare a budget
including: percentage-of-sales, objective and task, share-of-
category spending, and Return On Investment (ROI). It is hard for
companies to predict the return of the marketing expenditures
because competitors constantly change their offering and

36
promotions and customers‘ needs and wants are constantly
changing. (Ouwersloot & Duncan, 2007:135-142)
 Step 6: Evaluate Effectiveness
Since the environment including competitors, customers and other
stakeholders are constantly changing, the only way to know if
something works is to test it. It is important to test the creative
impact and level of media spending to see what is too much and
what is too little and to find the minimal level of spending that is
required in order for companies to keep their market share.
Evaluating effectiveness involve seeing how well the marketing
efforts meet its stated objectives. This why companies should set
their objectives in measureable terms and specify a time frame.
Companies can obtain information regarding MC effectiveness from
industry reports and by conducting their own research. Evaluation
can include measures of relationship strength in addition to the
usual sales, share and awareness measures.
Companies need to listen to customers and take their opinions
seriously and use the result for discussion and also change what
parts that might be wrong. In integrated marketing communication
continuous feedback is vital leading to those companies must
become a learning organization. (Ouwersloot & Duncan, 2007:142-
144)

37
2.10 Conceptual Framework
The issues of this research will be explain by using presenting a
conceptualization and then the emerged frame of reference developed
from the research question from chapter I.
2.10.1 Conceptualization
Miles and Huberman (1994) state that a conceptual framework
explains, either graphically or narrative form, the main dimensions that are
going to be studied. In order to collect data and answer the research
questions, a conceptualization of the literature review should be
presented.
2.10.1.1 Research Question One, to analyze and make an opinion of
the market leader strategy being used by Blue Bird Taxi to maintain
market leader position.
To answer this question we will look at four theories including:
1. Marketing Strategy (Kotler & Keller, 2006) (Kotler et al., 1999)
2. Competitive Advantage (Kotler et al., 1999)
3. Marketing Mix (Kotler et al., 1999)
A. The Marketing Strategy (Kotler & Keller, 2006) includes
Table 2.1
The Marketing Strategy Indicators
1. Segmentation - Geographic factors (countries, regions, cities)
- Demographic factors (sex, age, income,
education)

38
- Psychographic factors (social classes, lifestyles)
- Behavioral factors (purchase occasions, benefits
sought, and usage rates).
- Customers who care mainly about price &
operating economy.
2. Targeting Selecting the market segments
3. Positioning
(Kartajaya,2010)
4C‘s, Positioning Statement Elements, Tag line
B. Competitive Advantage (Kotler et al., 1999)
Compares the value, prices and benefits of the competitors
including products, prices, channels and promotion.
Table 2.2
Competitive Advantage Indicators
1. Competitor
Analysis
 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.
2. Competitive
Strategies
1. Competitive Position Strategy includes
- Operational Excellence
- Customer Intimacy
- Product Leadership
2. Competitive Moves Strategy
Market leader strategy includes:
 Expand total demand.
 Expand its market share.
 Reducing its costs.
 Protect its market share through good defensive

39
and offensive actions.
C. Marketing Mix (Kotler et al., 1999) & (Botha et al., 2007)
Table 2.3
The Marketing Mix plus the Service Mix Indicators
1. Product Variety, quality, design, features, brand name, packaging,
services and warranties.
2. Price List price, discounts, allowances, payment period and credit
terms.
3. Place Channels, coverage, assortments, locations, inventory and
transport.
4. Promotion Advertising, promotions, personal selling and publicity.
5. People The staff, the customer, and the front-line service personnel.
6. Process The organization‘s operating system and the service delivery
system are included in this process.
7. Physical
evidence
The environment, the boundary, the tangible aspects.
2.10.1.2 Research Question Two, to analyze and make an opinion of
the marketing communication strategy use to communicate a better
valued over higher price.
To answer this question we will look use the marketing
communication planning by Ouwersloot & Duncan (2007) called the Zero-
based Planning that has 6 steps:
Table 2.4
The Marketing Communications Strategy Planning Indicators
1. Identify Target
Audience
Using parts of Research Question One. (Kotler et al,
1999):
- Segmenting
- Targeting

40
2. Analyze SWOTs 1. Summarize brand related condition of:
- Internal (Strength & Weakness): 4Ps, Brand
Relationship, Brand Communication
- External (Opportunities & Threat):
Threat in market place condition, Opportunities in
social & economic condition
2. SWOT Analysis to consider:
- Realistic Damages to brand if Weakness or
Threat is not addressed
- Realistic Benefit if Opportunities or strength is
not leveraged
- Cost of addressing or leveraging each SWOT
- Time Frame to address or leverage each SWOT
3. Determine MC
objective
1. AIDA Model of Consumer Response:
- Communication objective (Awareness, Interest &
Desire)
- Behavioral Objective (Action)
2. Criteria for objective:
Specific, Measureable, Achievable, Challenging
4. Develop Strategies
& Tactics
1. Selecting MC mix & selecting Media mix (Smith et
al, 2002) Research question three.
2. Select the Creative Idea
3. Scheduling & Timing of MC activities
5. Determine the
Budget
This can be: percentage-of-sales, objective and
task, share-of-category spending, and Return On
Investment (ROI).
6. Evaluate
Effectiveness
Regarding relationship strength, sales, share &
awareness from:
- Industry Report
- Own research

41
2.10.1.3 Research Question Three, to analyze and make an opinion of
the marketing communication mix used.
To answer this question we will look use the marketing
communication mix by Smith et al (2007), which can includes:
Table 2.5
The Marketing Communications Mix Indicators
1. Sales Force
(Foster, 1998)
Can include: face-to-face sales meetings, telephone
sales calls, videoconferencing, tradeshows and
exhibitions, conferences/ seminars, and word of
mouth
2. Advertising
(Yeshin, 1998)
TV, radio, newspaper, magazines, and cinema
3. Sales promotions
(Smith, 2004)
- Customer promotions (premiums, gifts, prizes and
competitions, e.g. on the back of breakfast cereal
boxes)
- Trade promotions (special terms, point-of-sale
materials and free pens, diaries, competition
prizes. et cetera)
- Sales force promotions (incentive and motivation
schemes)
4. Direct marketing
(Kotler & Keller,
2006)
Direct mail, telemarketing, door-to-door selling, direct
response advertising, computerized home shopping,
home shopping networks, and miscellaneous
(stuffers, inserts, leaflet drops house to house
distribution).
5. Public Relations
(Smith, 2004)
Includes: Press relations, Product publicity, Public
affairs, Lobbying, Investor relations, Development,
News, Speeches, Special events, Written materials,
and Audio visual materials.
6. Sponsorship
(Smith, 2004)
Association with an entity, event or activity.

42
7. Exhibitions
(Smith, 2004)
Includes with customer, buyers, sellers and
competitors
8. Corporate
identity (Smith,
2004:654)
Includes: Logos and names, ―permanent media‖ or
buildings (exterior and interior), signage, vehicles,
uniforms, business forms (invoices, cheques,
letterhead. et cetera), literature (product brochures,
annual reports), exhibitions, etc.
9. Packaging (Smith,
2004)
The design at the point of sales (Smith, 2004)
10. Point-of-
purchase and
merchandising.
Smith (2004) &
Duncan, (2002)
Point of purchase includes temporary incentives and
displays. (Duncan, 2002)
Merchandising: display and store design (Smith,
2004)
11. Word of mouth
(Smith, 2004)
Conversation of: organizations, products, services
and staff, complaint, admiration or an endorsement.
marketing communications (advertising campaigns,
editorial stories, publicity stunts and special offers).
Techniques that encourage WOM:
postcards, digital postcards, T-shirts, photographs,
awards and certificates (issued to visitors, customers
and enquirers) and the Internet (news groups, chat-
rooms, discussion forums, and email chain letters).
12. Internet and
new media (Smith,
2004)
online advertising (banners, pop-ups, interstitials, e-
mails, newspaper-like standardized ads, URLs,
advertising in chat rooms), online personal selling,
online sales promotion, online public relations, online
direct marketing and web site.
2.10.2 Frame of Reference
As mentioned earlier, the conceptualization above is what will allow
us to answer this thesis research question. In order to show how our

43
research fit together a frame of reference will be presented. This frame of
reference, which results from the conceptualization above, is what will
guide the data collection for this thesis. The following model therefore
gives an overview of how our research questions relate to each other and
all serve as a base to reach our research purpose.
Figure 2.4 Frame of Reference
The Marketing Communication Strategy of Blue Bird Taxi to Maintain
Market Leader Position after Using the Highest Tariff
The frame of reference shows that the market leader strategy of
Blue Bird taxi will suggest the marketing communication strategy which in
turns suggests the marketing communication mix to use. The arrows show
the strategic relationship.
RQ2: Marketing Communication Strategy
RQ1: Market Leader Strategy
RQ3: Marketing Communication Mix

44
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.

45
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.

46
3.2 Data Generation Procedure
The author uses the triangulation of method; consist of in-depth
interview, observation and document review as the source of information
in this research.
In this research, a combination of more than one perspective is
often used to coordinate the data because, traditionally, it is claimed that
triangulations comes in different forms which is defines as: data
triangulation, where you use multiple data sources, such as collecting data
from different groups, settings or at different times.
3.2.1 Depth Interview
Interview is a conversation between a researcher (someone who
wishes to gain information about a subject) and an informant (someone
who wishes to gain information about a subject). The objective is to grasp
the subject‘s (informant) perspective: understanding the person‘s mental
categories, interpretations, perception, feelings and the motives underlying
his actions (Corbetta, 2003)
Several value of holding personal interview are the researcher can
control whom they want to interview, the personal interview provides the
greatest degree of control to the researcher. A personal interview is one of
the most effective ways to capture in-depth attitude or opinion information.
The interviewer has the greatest flexibility in survey length and structure,
the interviewer can remove the interviewee from a social situation in which

47
she might be influenced in their answers, in personal interview, and the
interviewer can see the behavior of the respondent (Hester, 2000:186).
The interview is one-to-one, semi-structured interviews, and the
conversation is recorded. The interview is located in several different
locations, flexible the interviewer and informant‘s situation. The structure
also will depend on the flow of the interview.
Semi–structure or focused interviews are often used in qualitative
researcher. The questions are contained in an interview guide with a focus
on the issues or topic areas to be covered and the lines of inquiry to be
followed. The sequencing of questions is not the same for every
participant as it depends on the process of each interview and the
responses of each individual (Daymon and Holloway, 2002)
The following are those who are directly involved in this study as
sources of information, namely:
1. Corporate Image Manager of Blue Bird Group
Responsible for managing Blue Bird Group overall communications
internally and externally including the marcom planning, advertising,
design, dealing and choosing advertising agency, production house,
print production, etc.
2. Blue Bird Group Marketing Communication Staff
Responsible for the communication of Blue Bird product and
services including advertising, social media, company visit, etc

48
3. Public Relations Manager of Blue Bird Group
Responsible for brand advocacy and media relations including
press release, spokesperson, crisis management and Blue Bird
Group in-house publication, Mutiara Biru.
4. Blue Bird Group Taxi Driver
As the front liners in providing services to taxi customers
5. Taxi user
As the customers that uses the taxi services of Blue Bird and other
taxi companies.
3.2.2 Observation
Participant-observation is the immersing of yourself in the study of
people you‘re not too different from. It is almost always done covertly, with
the researcher never revealing their true purpose or identity.
Gold (1958) proposed four ‗master roles‘ for the researcher.
1. Complete participation – the researcher participates in deviant or
illegal activities and goes on to actively influence the direction of the
group.
2. Participant as observer – the researcher participates in deviant or
illegal activities but does not try to influence the direction of the
group.
3. Observer as participant – the researcher participates in a onetime
deviant or illegal activity but then takes a back seat to any further
activities

49
4. Complete observation – the researcher is a number of the group but
does not participate in any deviant or illegal activities
Observation of human action provides researchers with data about
consumer behavior and social processes as they are enacted within the
realms of the social reality of participants (Daymon and Holloway,
2002:203). The strength of observations is that it can be less disruptive
and more unobtrusive then other methods. Therefore you are less likely to
influence the data you are collecting.
The researcher did the observation type as a complete
participation. Researcher participated in a marketing communication
activity in creating a video profile for Blue Bird taxi new batik uniform, and
make notes for information that could be material for this research.
The observation took place at Blue Bird Group Headquarters in Jl.
Mampang Prapatan Raya. It was conducted in order to support data
gathered by researcher and these data help researcher to have a deep
analysis.
After all the data has been already gathered, the researcher sorted
and made the analysis. Based on the analysis, the researcher could
deliberate the conclusion.

50
3.2.3 Document Review
Document consists of words and images that have been recorded
without the intervention of a researcher. They are in written, printed,
sound, visual and digital forms. According to Hester (2000), documentary
sources is important in qualitative research because, on the whole, access
to them is low cost and often easy, the information provided in them may
differ from or may not be available in spoken form, and because
documents endure over time, therefore providing historical insights.
The researcher gathered the documents from the literature, and
media. The survey interview was located in several locations, flexible to
the interviewer and respondent situation. Secondary data were obtained
from Blue Bird, media, library, etc.
Both primary and secondary data obtained were analyzed to
generate conclusion.
3.3 Data Generation Schedule
This research lasts for 7 months, from July to January 2011, while
interviews were conducted on January 2011. The location is at Blue Bird
Group Headquarters in Jl. Mampang Prapatan Raya, Jakarta Selatan.
3.4 Data Analysis Procedure
The kind of analysis data which was used in this research is
descriptive. It describes and explains the situation or the occurrence as it

51
is. Data analysis was done in the field by conducting interviews with the
key informant and the information obtained was analyzed qualitatively. The
steps of data analysis were:
3.4.1. Transcribes
As previously mentioned, the interviews were recorded. After the
interviews have been conducted, the researcher transcribed the
information. The researcher did the transcription himself because this
allows the researcher to immense in the data and become sensitive to the
issues of importance.
3.4.2. Read the Transcribes
After making the transcribes, the researcher read it at least three
times to get deeper understanding about the information contained. The
researcher also made a minimum of three copies of transcripts. The
researcher numbered each line of the interview transcript so that the
researcher can pinpoint specific data when searching for them. Besides
that, researcher also read field notes and secondary data/ literature
review.
3.4.3 Coding
Coding provides a first step to developing the categories, patterns
and concepts. Coding informs the decisions the researcher made about
what is worth saving, how to divide up the material, and how incidents of,
say, activities or talk relate to other coded items. Coding starts after the

52
researcher have read through the evidence several times and considers
that the researcher thoroughly immersed in it and have begun to get an
overall idea of the big picture (Daymon and Holoway.2002:122)
3.4.4 Categorization
When the researcher found the themes and patterns in the data,
then it was classified in two ways: according to the definitions used by
participants themselves, or according to terms created by the researcher
to reflect categories for which participants do not have labels or theme.
The research uses these following methods of data analysis
procedure:
1. Collecting information from the field in Triangulation Method (depth
interview, document review and observation)
2. Transcript and coding the information that was gathered at the field
3. Sorting the information into categories
4. Review the theory with the finding
5. Analysis the finding

53
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

54
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.‟

55
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

56
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

57
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
4.2 Research Findings and Analysis
After collecting the research data, the author will analyze the reply of
the interview according to the problem statement of the research. The
following are the description.
Business
Development
Corporate
Image
Information
Technology
Total Quality
Management
Marketing
Communication
Public
Relations
Creative

58
4.2.1 Research question one, to analyze and make an opinion of the
market leader strategy being used by Blue Bird Group taxi.
4.2.1.1 Marketing Strategy Analysis
Based on the theory by Kotler & Keller (2006), marketing strategy
includes segmentation, targeting and positioning. Based on the interview
with BBG Corporate Image Department team, the author will present the
findings.
A. Segmentation
The following are the findings of the segmentation of Blue Bird
Group Taxi based on the interview with Kanti Saraswati, Marketing
Communication staff (question no.3); interview with Tony Liandouw, the
Corporate Image Manager (question no.27); and from BBG website:
a. Geographic : Greater Jakarta
b. Demographic:
Gender : Male and female
Race : Indonesian, expatriate/ foreigners.
SES : C+ until A+
c. Psychographic: employees, tourist, international workers, leisure
seekers, groups, family
d. Behavioral : quality and service benefit seeker, economy price
seeker, features seeker (wi-fi, receipt, music, cable TV)

59
The theory by Kotler et al., (1999) mentions that 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.
The author‘s analysis based on the findings of the interview and
theories presented, is that Blue Bird Group has segmentation for all
market segments that needs taxi transportation ranging from SES C+ until
A+. To meet this demand BBG has a variety of service based on pricing
and needs, which are Blue Bird & Pusaka for regular taxi, Silver Bird for
executive taxi and Golden Bird for car rental.
B. Targeting
After segmenting, the next step is targeting of the segmentation to
enter. For this research, the author will focus on the segmentation of Blue
Bird Group regular taxis which are Blue Bird taxis and Pusaka taxi.
The following is the findings regarding the targeting of Blue Bird
Group taxis (BBGT) based on the interview with Kanti Saraswati,
Marketing Communication staff (question no.4); interview with Tony
Liandouw, the Corporate Image Manager (question no.27); Mohammad
Dahlan, BBGT driver (question no.6) and from BBG website:

60
a. Geographic:
Cities : Jakarta, Bogor, Depok Tangerang and Bekasi;
Branches : 18 depots including Kemayoran, Mampang, Ciputat,
Kramat Jati, Cimanggis, Raden Inten, Penggilingan, Kelapa
Gading, Daan Mogot, Puri Indah, Pondok Cabe I, Pondok Cabe 2,
Bintaro, Halim, Narogong, Japos, Kalibata, Puri2
Outlets : 3 star and 4 star hotels, malls, business centers,
residential complex
b. Demographic:
SES : C+ until B+,
Income : Rp 3.000.000,- per month and above
c. Psychographic : female employee, Male metro sexual
employee, local tourist, international tourist, international workers,
leisure seekers
d. Behavioral : quality and service benefit seeker
e. Companies/ B2B: through Blue Bird voucher payments facility for
companies executives
For this research, the author will focus on the target market of
BBGT in the Jakarta area market which have an approximate total of
32.000 taxis. BBGT armada in Jakarta is approximately 10.000 units or
around 30% of Jakarta area taxis.
The following are the findings based on an interview with some
customers:

61
Natalia, an employee, regarding from where she uses BBGT (question
no.4):
―From my kost to the airport, office to airport, my office to clients
vice versa and from malls‖
Johan, a manager, regarding why he uses BBGT (question no.2):
―BBGT drivers are experience, polite and care if the customers are
comfortable regarding the AC and driving speed. Besides BBGT
uses a VIOS car, has GPS, the car is fresh and clean and doesn‘t
have a cigarette smell‖
Rian, an employee, regarding why she uses BBGT (question no.2):
―For office use because of vouchers, its trustworthy and for when
ordering by phone like going to the airport.‖
The theory suggested by Kotler et al., (1999) mentions that 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.
theories presented, are that the targeting for Blue Bird Group taxis are
according to the theories presented. BBG taxis targeting are clear and
according to the advantages that they have such as a large fleet, covering
many cities, automated reservation system, trusted drivers, well maintain

62
fleet and while providing great value to customer seeking quality and
service.
C. Positioning
According to the theory, Philip Kotler positioning is 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, 2010:19-20) Kartajaya suggest considering four criteria
to build a solid positioning: customer, company, competitor, and change.
Elements of a postioning statement are: target market, brand, frame of
reference, points of differentiation and competitive advantage. After
making the positioning statement the company can make a tag line offer.
The following is the findings based on an interview with Kanti
Saraswati, Marketing Communication staff, on how Blue Bird Group
positions BBGT:
―Our motto is ANDAL. Aman (Safe), Nyaman (Comfort), Mudah
(Easy) and Personalize. Safe because we have trusted drivers...
Also our cars are always checking every time it returns at the
maintenance shop... Our armada are renewed with a new car every
5 years also for comfort.. We have a lost and found service,
although we can‘t guarantee everything that gets left behind will be
found... Easy because we have thousands of armada. Personalize,
because we want customers to feel BBGT is like their own private
car‖ (question no.6)
―We maintain our image as the market leader and that we use the
high tariff, also that we are a premium taxi in its category‖ (question
no.10)

63
The following is the findings based on an interview with Tony
Liandouw, the Corporate Image Manager on how Blue Bird Group
positions BBGT:
―Providing the first-rate service all the time. The best taxi, safe and
comfortable. Maintaining this track record‖ (question no.27)
theories presented are that the positioning of BBGT is according to the
theories presented. BBGT positioning statement is the best regular taxi in
the category providing ANDAL service which is safe, comfort, easy and
personalize. Their tag line is ANDAL: aman, nyaman, mudah and
personalize. Its meaningful because of its simple acronym and the use of
the word ‗safe and comfort‘ which is also mention by some of the taxi
users. Its distinctive because it mentions BBGT competitive position in the
word ‗easy and personalize.‘
The author analyses regarding the four criteria to build a solid
positioning are as follow. To the customer it creates a positive perception.
For the company, it reflects BBGT strength in service, large armada and
distribution. For the competitor, it will be hard for the competitor to imitate
the large armada and distribution. However, some taxi user also feels safe
and comfort with other taxi including Express and Putra. Regarding
change, BBGT has added the easy and personalize because previously it
was only safe and comfort.

64
The author analyses regarding the positioning statement are as
follow. The positioning statement is clear and focus to build the marketing
strategy and tactics because uses some of the elements of target market,
frame of reference, point of differentiation, competitive advantage. In terms
of target market, BBGT positioning is according to the customer behavior
that needs a safe taxi as priority. In terms of frame of reference, BBGT is
position as the best taxi in it‘s the category. In terms of points of
differentiation, the term ‗‘personalize‘ reflects a BBGT driver that is polite.
In terms of competitive advantage, the term ‗easy‘ reflects BBGT large
armada and good call center that is hard to imitate by their competitor
The customer‘s perception of BBGT positioning can be identified in
their comments from the interview by the author. (question no.5):
―Safety‖ (Natalia, employee)
―Executive taxi‖. (Novita, freelance model)
―Easy to get by phone order‖ (Maria, employee)
―Trustworthy‖ (Rian, employee)
―A clean taxi‖ (Johan, manager)
The authors opinion regarding BBGT positioning is that the term
‗safe‘ and ‗comfort‘ of BBGT positioning statement needs to be change
because some taxi user also identifies other taxi such as Express and
Putra as safe and comfortable.

65
The summary of BBGT marketing strategy analysis can be seen on
Table 4.1.
Table 4.1
Summary of BBGT Marketing Strategy
1. Segmentation
- Geographic: Greater Jakarta
- Demographic:
Gender : Male and female
Race : Indonesian, expatriate/ foreigners.
SES : C+ until A+
- Psychographic :
employees, tourist, international workers, leisure
seekers, groups
- Behavioral :
quality and service benefit seeker, economy price
seeker, features seeker (wifi, receipt, music,
cableTV)
2. Targeting
- Geographic:
Cities : Jakarta, Bogor, Depok, Tangerang and
Bekasi
Branches : 18 depots including Kemayoran,
Mampang, Ciputat, Kramat Jati, Cimanggis, Raden
Inten, Penggilingan, Kelapa Gading, Daan Mogot,
Puri Indah, Pondok Cabe I, Pondok Cabe 2,
Bintaro, Halim, Narogong, Japos, Kalibata, Puri2
Places : 3 star and 4 star hotels, malls,
business centers, residential complex
- Demographic:
SES : C+ until B+,
Income : Rp 3.000.000,- per month and above
- Psychographic :
female employee, Male metro sexual employee,
local tourist, international tourist, international
workers, leisure seekers
- Behavioral :
quality and service benefit seeker
- Companies/ B2B:
voucher payments for company executives
3. Positioning
The best regular taxi in its category that provides
‗ANDAL‘ service which stands for safe, comfort, easy
and personalize.

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