BBM Product Brand Equity Analysis Based On Customer Perceptions At PT Pertamina (Persero)

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Pertamax Brand Equity Analysis: Understanding the Challenges and Strategies for PT Pertamina (Persero)

In the highly competitive oil and gas industry, maintaining a strong brand equity is crucial for companies to stay ahead of the competition. PT Pertamina (Persero), a state-owned oil and gas company, has been facing stiff competition from foreign oil companies such as Petronas and Shell in Indonesia since 2001. One of its flagship products, Pertamax, has been struggling to maintain its market share in Jakarta, with a decline to 90% in 2006. This study aims to analyze the elements of Pertamax brand equity based on customer perceptions, to understand its strengths and weaknesses in dealing with competition.

Pertamax is an environmentally friendly non-subsidized fuel product with an octane value of 92, designed for vehicles that require high and lead-free fuel. The product is intended for cars produced after 1990 with Electronic fuel injection technology and catalytic converters. However, with the emergence of foreign oil companies in Indonesia, Pertamina faced fierce competition, which led to a decline in Pertamax's market share.

This study employed a qualitative research approach, collecting data through surveys and interviews with customers in Jakarta. The data was analyzed to identify the elements of Pertamax brand equity based on customer perceptions.

The results of this study show that brand awareness and brand loyalty are two main elements that support the dominance of Pertamax. The Pertamax brand is very well known among consumers, with nearly 80% of customers expressing satisfaction and commitment to this product. However, the study also reveals that brand association/brand image and perceived quality are elements that are still weak. Pertamax has not succeeded in building images as a product with complete and quality gas station services, environmentally friendly products, and products that are suitable for luxury cars. This is also seen in consumer perceptions of the quality of Pertamax gas station services, which are considered bad compared to competitors.

The results of this study highlight the importance of brand equity management in maintaining market share. The Pertamax brand's strong brand awareness and loyalty are crucial factors in its success. However, the weak brand association/brand image and perceived quality elements are areas that need to be addressed. To increase the Pertamax brand equity and maintain market share, this study suggests several strategies:

  • Expanding the types of communication media in communication and promotion strategies.
  • Achieving a unique brand image and not owned by competitors, such as the superiority of "anti-knocking" Pertamax, in a promotional campaign.
  • Improving service quality at gas stations specifically for Pertamax customers. This step will have a positive impact on various brand equity elements, such as brand image, perceived quality, and brand loyalty.

In conclusion, this study highlights the importance of brand equity management in maintaining market share in the highly competitive oil and gas industry. The Pertamax brand's strong brand awareness and loyalty are crucial factors in its success. However, the weak brand association/brand image and perceived quality elements are areas that need to be addressed. By implementing the right strategy, Pertamina can strengthen the Pertamax brand equity, build strong differentiation in the market, and face competition more effectively.

Based on the findings of this study, the following recommendations are made:

  • Pertamina should focus on expanding the types of communication media in communication and promotion strategies to increase brand awareness and loyalty.
  • Pertamina should achieve a unique brand image and not owned by competitors, such as the superiority of "anti-knocking" Pertamax, in a promotional campaign to differentiate itself from competitors.
  • Pertamina should improve service quality at gas stations specifically for Pertamax customers to have a positive impact on various brand equity elements, such as brand image, perceived quality, and brand loyalty.

This study has several limitations. Firstly, the study only focused on customer perceptions in Jakarta, which may not be representative of the entire Indonesian market. Secondly, the study only analyzed the elements of Pertamax brand equity and did not consider other factors that may affect brand equity, such as marketing mix and competitor analysis.

Future research directions include:

  • Conducting a comprehensive brand equity analysis that considers multiple factors, such as marketing mix and competitor analysis.
  • Analyzing the impact of brand equity on business performance in the oil and gas industry.
  • Developing a brand equity management framework that can be applied to other industries.
  • Aaker, D. A. (1991). Managing brand equity: Capitalizing on the value of a brand name. New York: Free Press.
  • Keller, K. L. (1993). Conceptual framework and strategic implications for brand extension research. Journal of Marketing, 57(1), 1-15.
  • Yoo, B., & Donthu, N. (2001). Developing and validating a multidimensional consumer-based brand equity scale. Journal of Business Research, 52(1), 1-14.
    Pertamax Brand Equity Analysis: Q&A

In our previous article, we discussed the importance of brand equity management in maintaining market share in the highly competitive oil and gas industry. PT Pertamina (Persero) has been facing stiff competition from foreign oil companies such as Petronas and Shell in Indonesia since 2001. One of its flagship products, Pertamax, has been struggling to maintain its market share in Jakarta, with a decline to 90% in 2006. This article aims to provide a Q&A section to further clarify the findings of our previous study.

A: Brand equity refers to the value of a brand's reputation, image, and customer loyalty. It is a crucial factor in maintaining market share and differentiating a company from its competitors. For Pertamina, brand equity is essential in maintaining its market share in the highly competitive oil and gas industry.

A: The elements of Pertamax brand equity based on customer perceptions are:

  • Brand awareness: The Pertamax brand is very well known among consumers, with nearly 80% of customers expressing satisfaction and commitment to this product.
  • Brand loyalty: The Pertamax brand has a strong loyal customer base, with customers expressing commitment to this product.
  • Brand association/brand image: Pertamax has not succeeded in building images as a product with complete and quality gas station services, environmentally friendly products, and products that are suitable for luxury cars.
  • Perceived quality: Consumer perceptions of the quality of Pertamax gas station services are considered bad compared to competitors.

A: The strategies to increase Pertamax brand equity and maintain market share are:

  • Expanding the types of communication media in communication and promotion strategies.
  • Achieving a unique brand image and not owned by competitors, such as the superiority of "anti-knocking" Pertamax, in a promotional campaign.
  • Improving service quality at gas stations specifically for Pertamax customers. This step will have a positive impact on various brand equity elements, such as brand image, perceived quality, and brand loyalty.

A: This study has several limitations. Firstly, the study only focused on customer perceptions in Jakarta, which may not be representative of the entire Indonesian market. Secondly, the study only analyzed the elements of Pertamax brand equity and did not consider other factors that may affect brand equity, such as marketing mix and competitor analysis.

A: Future research directions include:

  • Conducting a comprehensive brand equity analysis that considers multiple factors, such as marketing mix and competitor analysis.
  • Analyzing the impact of brand equity on business performance in the oil and gas industry.
  • Developing a brand equity management framework that can be applied to other industries.

In conclusion, this Q&A section aims to provide further clarification on the findings of our previous study. The importance of brand equity management in maintaining market share in the highly competitive oil and gas industry cannot be overstated. By understanding the elements of Pertamax brand equity based on customer perceptions and implementing the right strategies, Pertamina can strengthen the Pertamax brand equity, build strong differentiation in the market, and face competition more effectively.