Abstract:
PT Kereta Api Indonesia (KAI) is a railway transportation service provider
in Indonesia. In 2019, KAI launched railway courier service to support
logistic sector, called Rail Express. Despite the advantages of railway courier
service in providing low-cost fee and minimum risk of time delay and
accident, low market penetration indicates brand awareness in the market is
still very low. The main objective of this study is to develop customer-based
brand equity strategy for railway courier service, by using Rail Express as
the case to carry out the research. This study used a series of qualitative
method research to fully comprehend the business situation and propose the
solution to the business problem. First, in-depth interviews were conducted
to the management and staff of KAI to assess external and internal
environments of railway courier service. Second, focus group discussions
were conducted to gain consumers’ insight related to brand awareness and
brand image of Rail Express. The discussion was attended by 16 participants
that represent Rail Express target market of e-commerce buyer and seller.
Third, this study used TOWS matrix to generate business solution
alternatives based on previous analysis findings. As the result, this study
formulated three main strategies to build customer-based brand equity: first,
integrated marketing communication to establish brand awareness by
increasing brand recall and brand recognition; second, brand repositioning
to establish brand image by developing brand associations related to positive
image and technology; and third, improvement on existing marketing mix,
i.e., product, distribution channel, and price strategies.
