The expansion of retail industry in Indonesia produces many effects. There are more minimarkets in Indonesia than in another kind of modern market, such a supermarket or hypermarket. Indonesia boasts the largest minimarket count among South East Asian countries lately. Since Indomaret Pakutandang branch has lately seen declining transaction per day and average sales per customer, the present study concentrates in analyzing the
customer repurchase intention. Apart from that, average 7.05% yearly sales were declining daily for four straight years (2016 to 2019). This study attempts to identify the solution by means of two independent variables: brand reputation and experiential marketing. Data for this study came from 149 responders to be examined. This study shows by multiple
regression that repurchase intention is much influenced by both independent factors. Moreover, it is discovered that brand reputation affects repurchase intention more strongly than experiential marketing can do. By scale of business that is, quantity and type of product offered, shop spaces, number of parking lots, investments, etc. some modern markets
Consist of minimarket including convenience
store), supermarket, and hypermarket that can be distinguished. The average Indonesian person has a busy lifestyle in period 2012 to 2017. For consumers in this category, proximity, convenience, and buying tiny amounts of goods have become quite crucial concerns when they decide what to buy (Bella, 2019; Gumiwang, 2019).Two main participants in the minimarket sector exist in Indonesia: Indomaret and Alfamart. While the remain 23% for the
other companies, including Yomart, Podjok Halal, Coco Mart, Family Mart, Ok Oce Mart, etc., Indomaret attained 46% of market share and 31% for Alfamart in 2019, thus dominating 77% of overall market share in Indonesia. These two companies ran 33,345 outlets, or 75% of the minimarket in Indonesia in 2019. Indomaret opens 1366 new stores annually, and the
increase in store opening reach 11,93% yearly,Alfamart, on the other hand, has 10.17% yearly shop opening growth. Alfamart opens 952 new stores year on average (www.databoks.katadata.co.id; www.lokadata.co.id.). The players in the minimarket sector have used some strategies including location strategy, extensive promotion, competitive pricing strategy, non-cash payment system, customer loyalty programs with member card
System delivery service and so on in order
to meet the intense competition (Martinus, 2011).Minimarkets should arrange their store for the finest experience of their consumers in front of tough competition and always changing consumer lifestyle. People today believe that convenience in shopping is not just about having impulse products (such as snacks, beverage, and tobacco), but also acquiring a wide selection of ready-to-eat food and impulsive items (plus other services) to make their life
easier. Nielsen (2019) reported. Usually, people purchase little daily needs at a grocery store near their residence. Traffic congestion forces people to avoid visiting hypermarkets or supermarkets. Customer demands and wants go beyond the obvious items or services; they also depend on positive experience should the purchase be made at a store. Apart from
product availability nowadays, many stores concentrate on improving customer experiences as a crucial tactic to gain the competitiveness. Schmitt and Hanover (2016) claim that consumers of products take into account their consuming experience in addition to their practical qualities. Therefore, businesses should concentrate on consumption circumstances and transcend the product-oriented strategy to the customer-oriented one. Experiential
Marketing is this idea that clarifies how
consumers would use their sense, feel, think, act, and relate in purchasing a product. Experiential marketing has a major impact on the intention of customers of Indonesian minimarkets, according past studies (Astari & Pramudana, 2016; Fadilah, 2020; Rossanty, Purba, Ario, Nasution, & Siregar, 2019; Setyono, Widyanata, Siaputra, & Jokom, 2017).
For 15 categories, the Frontier Group does yearly brand performance surveys and names Top Brand Award winner for every product category. Mind share, market share, and commitment share taken together define the brand performance (https://www.topbrandaward.com/top-brand-index/. Table 1 shows the top brand index for minimarket classification. Unlike the market share, Indomaret's top-brand-index consistently falls short of Alfamart, for four straight
years (2017–2020). Comparatively to Alfamart, Indomaret exhibits various issues in mind share and commitment share but not for their market share. The current research supposes that brand reputation drives this phenomena. Whether trustworthy or not, a consumer's view of the brand is known as brand reputation (Shandi, 2011). Reiterating Urde and Greyser (2015), there are eight elements to gauge brand reputation: relevance, trustworthiness,
Conclusion
differentiation, credibility, responsibility, growth of minimarket, supermarket, and hypermarket in Indonesia was 10.78%, 0.18%, and -2.76%, respectively (USDA Foreign Agricultural Service, 2018). Growth of minimarket is clearly the highest among other modern market forms like supermarket and hypermarket. With 43,826 outlets and almost achieved 60% of the total minimarkets in the region, Nielsen (2019) noted that Indonesia holds the highest number of
minimarkets in South East Asian Region early 2018. About 1000 new stores open annually since the expansion of minimarkets in Indonesia exceeds 15% annually (Riley & Yuliawati, 2019). Increased spending power, convenient lifestyle, connected consumers, cheap indulgence, and market opportunity outside Java Island Region are some of the factors Nielsen (2019) also cited in their analysis for explaining part of the massive rise. Growing numbers of middle class people are discussed and advised based on their ideas
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