1、 Procedia Economics and Finance 4 ( 2012 ) 120 129 2212-5671 2012 The Authors. Published by Elsevier Ltd. Selection and peer-review under responsibility of Parahyangan Catholic University.doi: 10.1016/S2212-5671(12)00327-9 International Conference on Small and Medium Enterprises Development with a T
2、heme (ICSMED 2012) Determining the Most Effective Promotion Strategy for Clothing Company in Bandung, Indonesia Yessie Fransiskaa*, Febri Andhikaa, Masca Indraa, Renni RengganisaaMaster of Science in Management, School of Business Management Institute Technology of Bandung Jalan Ganesha no. 10, Band
3、ung 40132, Indonesia Abstract Seemed not to be outdone by foreign brands, many Indonesian entrepreneur especially in Bandung plunge into fashion industry by create their own brand. As a tourism destination, Bandung fashion industry attracts quite a lot interest. The growth of clothing company in rec
4、ent years increases significantly. This is a big challenge for marketers to win the competition, so that promotions become very important weapon. Promotion roles are to make the market known and recognize the uniqueness of the clothing company itself. Business losses commonly happened because of usi
5、ng ineffective promotion media which made marketing cost become very high. The purpose of this study is to measure the most effective promotion strategy for small businesses especially in fashion business in Bandung. The study was conducted by interviewing 5 top of mind clothing owner in Bandung whi
6、ch success to classified promotional strategy that being used in awareness. The result of this study will contribute for the development of entrepreneur in marketing science, and for practical implication it will provide the proper and effective promotion strategy for any local clothing company. 201
7、2 The Authors. Published by Elsevier Ltd. Selection and/or peer-review under responsibility of Parahyangan Catholic University. Keywords: entrepreneurial business; promotion tools; clothing company; Bandung * Corresponding author. Tel.: +62-22-250-0935; fax: +62-22-250-0935. E-mail address: yessie.f
8、ransiskasbm-itb.ac.id Available online at 2012 The Authors. Published by Elsevier Ltd. Selection and peer-review under responsibility of Parahyangan Catholic University.Open access under CC BY-NC-ND license.Open access under CC BY-NC-ND license.121 Yessie Fransiska et al. / Procedia Economics and F
9、inance 4 ( 2012 ) 120 129 1. Introduction Before factory outlet has becoming a shopping center in Bandung for domestic and foreign tourists, Bandung is first known as a paradise and prior destination for distributions outlet and clothing company. Clothing itself is a term for a company that produces
10、 apparel with its own brand and its products can be varies not only clothes, but could be new products which supporting lifestyle such as watches, belts, sunglasses to MP3 player. The development of clothing company in Bandung is supported by scenes of young people growing at that time, from the mus
11、ic scene, street fashion antransformed into a city that continues to generate local fashion brands, and known all over Indonesia and outside of Indonesia. Clothing company, is usually marked with a limited edition of only 50-100 pairs of products to sell, thats clothing distinguish between conventio
12、nal fashion industry in Bandung. In addition, the close relationship between the clothing company with people who had been in the local music scene or they who have hobbies such as skateboarding, increase the spirit and make more recognized by Bandung youth. Unfortunately, the development of clothin
13、g company based on the spirit of Bandung young people idealism who want to create a brand with a different concept from others now quite covered with the presence of another clothing which just sold product for making money only. First, people who came to the clothing aimed to find something differe
14、nt that does not exist in other places such as shopping centers and department stores, something specific, different from the others, therefore the location of clothing were sometimes not as strategic as center shopping in general, remote location and there is a purpose why they open a place there,
15、so people who came were really looking for something that is not just window shopping only. Clothing company grew in Bandung continues to this day with approximately more than 200 outlet in Bandung with a target audience of young people aged 13-35 years (productive age), the middle class and upper m
16、iddle, they are judged to be the most effective audience and potential as the next generation of Indonesia. They are already supposed to be addressed from the beginning to be able to develop the potential of the appreciation of local products. Such fierce competition every clothing company has to be
17、 smart to conquer the competition and have to make their brand well known in Bandung itself and outside Bandung. Therefore, the promotion is an important weapon to continue making their brands known and continue to be known. Clothing, included to small and medium business enterprises (SMEs) with lim
18、ited budgets and resources to the make strategic promotion choices. Based on this fact how to raise customer awareness of clothing company brand name, products and services is very important. Advertising, sales promotions, direct marketing, personal selling are all methods to raise brand and product
19、 familiarity within a target market. Promotion activity involves using advertising and other marketing techniques to sell products. This research tries to find out how SMEs put together effective promotional strategies by combining these methods to spread their message and the make them widely known
20、. 2. Literature Review 2.1. History of Clothing Company in Bandung In 2003-2004, clothing store in Bandung were significantly increase, almost 200 stores rose during that time. This phenomenon triggered by information from media about the economic value from this business. For the last decade creati
21、ve industry in Bandung run by youth generation, they claim this movement as the cultural movement which drives by independency spirit. This movement firstly was conduct in skateboard community fashion e122 Yessie Fransiska et al. / Procedia Economics and Finance 4 ( 2012 ) 120 129 clothing company w
22、ere establish in Bandung, conduct at Reverse Music Studio on Jalan Sukasenang Bandung. On the beginning this store were sale accessories that related to Music such as CD, Tape, Poster, then become the initiate of selling stuffs use import product to support Music rock and skateboard community in Ban
23、dung. as Punk, Pop, Rock, Grunge, Surf, BMX, and Skateboard. Hobby, togetherness, and collectivism spirit become great support in rising new others clothing label and clothing store at the time. When economic crisis hit Indonesia at 1998, Reverse store which usually sale import product cannot contin
24、ue their business because of the massive increase opportunities to produce kind of stuffs using local material so that they could sell the product cheaper than if Rec 347 in 1996, in 1997, followed by Anonim, Flashy, Harder, No label, Monik, etc. 2.2. Global Generation If we look deeply inside, what
25、 that happen in Bandung at cannot be separate from global condition at the time. Music and lifestyle as two things that gave a huge influence for urban young people fashion trend in Bandung. Since Bandung were known very adaptive with the trend of world music. MTV program that happening at the time
26、which introduce about new lifestyle of fashion. In the reformation era, political and social life in Indonesia has significantly changes. Individual freedom become something that appreciate among each people, in Bandung itself people become more free to express their self. Many of events was held in
27、 order to support individual expression, at the time there are several of events that support by well establish clothing company. Considering or not, clothing industry that is rise and growth in Bandung, has a good impact in push other new small industry that also based on creativity. Organically, t
28、he clothing company has new infrastructure to support this business industry. This business easily growth, because of the urban young people in Bandung becomes proud to use this local product made by clothing company. Name of Bandung become the key of clothing brand, in each product their put word t
29、o attract other people outside Bandung to but this product. For the expansion area become as the identity of clothing company. The rapidly growth of clothing industry has several good impact for the society; one of the example is reduce number of unemployment in Bandung. According to this, in Septem
30、ber 2006 local government had been legitimated this area of business as creative industry and support all the useful activities such as support the establishment of formal organization named Bandung Independent Clothing ng this organization movement, so that in 17 November 2006 BIC then change the n
31、ame into Kreative Independent Clothing Kommunity (KICK). The member of KICK are : Invictus, Monik, No Labels, Ouval Research, Reverse, Screamous, Theodore, Two Clothes, Wadezig, 347/eat, Cosmic, Opium, Rockmen, Blindwear, RollyPolly and Oink!. Gustaff Harriman Iskandar (Common Room) as the chairman.
32、 This paper will clearly describe how the problem of lack of awareness of Indonesian toward local product cracked by creating awareness to society to respect local product through media distro-clothing. 2.3. The Differences of Term Clothing and Distribution Outlet (Distro) One of creative industries
33、 that is distro (distribution outlet) and clothing company which are began from the city of Bandung. in this city, the first time of the youth creation develop their creativities through clothing company and distribution outlet. Distribution outlet defines as the place which receive the entrusted pr
34、oduct 123 Yessie Fransiska et al. / Procedia Economics and Finance 4 ( 2012 ) 120 129 created by local young citizen. Distro cannot be separated, because some clothing company deposits their products in distro. In other word, distro is a place which sells the various brand of fashion products, and c
35、lothing company is the producer and the owner of the brand. In the beginning distro and clothing company born as the impact of monetary and politic crisis. From this crisis, the change of economic structure push Indonesian citizen to survive with the creativity that their have. Distro and clothing i
36、nfluenced by the lifestyle of the street community, art, skater, surfer and indie bands in the years 1996-1997. In earlier, this youth like to style as skaters, surfers, and street style with imported clothes. The clothing pioneers working in this creative industry merely not for do business but to
37、maintain their design quality. The clothing company produced their design keep limited. This industry raise the appreciation from Indonesian people especially young men to proud with local products. Beside that this clothing company raise the spirit of the development of youth creativity in Indonesi
38、an, especially Bandung, to be creative in positive way. 2.4. Promotion Madura (2007), argued that, “Promotion is the act of informing or reminding consumers about the specifications of the product or brand“. Tjiptono (2007), states that “the purpose of promotion is to inform, influence, and persuade
39、 and remind customers about the companys objectives and marketing mix“. Swastha and Irawan in Angipora (1999) states that, “the promotion is short-term incentives to encourage the purchase or sale of a product or service“. In managing a marketing communications systems require a draft strategy and s
40、ales programs that effectively and efficiently. Promotion is a key element in corporate campaigns and promotional campaign is best done by satisfied customers. Thus, the campaign needs to be handled carefully because the problem is not just concerned on how to communicate with customers but also abo
41、ut how much it costs, and the costs must be adapted to the conditions and the ability of companies. Promotion is essential one of the variables in the marketing mix implemented by companies in marketing their products or services. According to Martin L. Bell and Swastha Basu and Irawan (1990:349) pr
42、omotions are all kinds of marketing activities aimed at stimulating demand. Meanwhile, according to William G. Nikels in Basu Swastha and Irawan books (1990:349) promotion is the flow of information or one direction persuasion that is made to train a person or organization to act that created the ex
43、change in marketing. From the definition above, promotion definitions are essentially the same although the emphasis is different. The first definition is more focused on pushing the demand, while the second definition is more focused on the creation of the exchange. Exchange will occur because of t
44、he demand and supply; the demand will encourage the exchange. So the promotion is one important aspect in marketing management and is often regarded as the continue process. With a promotion, it shifting of people from not interested in buying a product into interested in and try the product so that
45、 consumers make a purchase. The main purposes of the promotion by Tjiptono (1999) are: to inform, influence, and persuade and remind customers about the companys objectives and marketing mix. In detail, the three objectives of the campaign can be described as follows: - Informing, can be: f a new pr
46、oduct - Persuading, can be: 124 Yessie Fransiska et al. / Procedia Economics and Finance 4 ( 2012 ) 120 129 e a salesmans visit (salesman). - Remaining can be : 2.5. Promotion Mix According to Kotler all costs must be paid sponsor to perform non-personal presentation and promotion in the form of ide
47、as, goods or services. The second is personal selling is the way of sale by communication personally (face to face) of information in person, to persuade consumers to buy goods / services and ideas. The third is sales promotion; short-term incentives to encourage the purchase or sale of a product or
48、 service. The fourth is public relations (PR); build relationships with relevant public to gain support, build a “corporate image“ is good and the handle or get rid of gossip, stories and events that may be detrimental. The fifth is direct marketing; direct communication with customers who are targe
49、ted specifically to obtain an immediate response. Thus, the promotion of a conducted in order to introduce the product to the consumer so that the activity is consumers are interested in purchasing. Advertising (called an “above the line“ form of promotion) can be used to increase brand awareness as part of a general publicity campaign. General advertising is non-segmented (i.e. visible to a wide audience, not a specific niche or demographic segment), non-personal, and non-discriminatory. Now we live in an age of overt advertising -from billboar
