BUSINESS STRATEGY FORMULATION FOR ART MERCHANDISE BRAND (CASE STUDY: GUTSY PRUNE)

• Main Author: Amadea, Natalie
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/45731
• Institution: Institut Teknologi Bandung

Creative industries are the manifestation of creative economy which is a relatively recent economic construct that accentuates creativity as the main production factor in the economic activities. In Indonesia, creative industries hold a potential role in boosting the national economy by consistently contributing positive growth to the country’s GDP since 2015. The players within the creative industries consist of many creatives and some of them are visual artists. In the scope of creative industries, visual artists are regarded as entrepreneurs. Marketing their own art merchandise has become a considerable part of their income. The art merchandise industry has recently emerged in Indonesia and it has successfully created a market. This phenomenon can be seen through Indonesia customers’ enthusiasm for creative markets and trade shows that showcase art merchandise products. The art merchandise industry continues to grow and many competitors are entering the market. Gutsy Prune is one of the Indonesian art merchandise brands that offer wearable illustrated products. Gutsy Prune faces a sales stagnation since the beginning of 2019. The sales stagnation is due to the low rate of Gutsy Prune’s inventory turnover. In order to tackle this current problem, Gutsy Prune needs to formulate an effective business strategy to boost the sales stagnation. In order to find some root causes that trigger the issue, Gutsy Prune has done a series of analysis that includes external, internal, and customer analysis. For the internal analysis, Gutsy Prune performs STP Analysis, 4Ps Marketing Mix Analysis, and Value Chain Analysis. For the external analysis, Gutsy Prune performs PESTEL Analysis, Porter’s 5 Forces Analysis, Competitor Analysis, and Strategic Group Mapping. For the customer analysis, Gutsy Prune conducts interviews with current customers and potential customers. The result from the aforementioned series of analysis is combined and concluded by using SWOT Analysis in order to discover the root causes of sales stagnation. The fundamental causes are: Gutsy Prune’s limited product-line breadth; lack of sales channels; lack of human resources; weak STP strategy; weak Marketing Mix strategy; minimum automated outbound logistics system; lack of long-term suppliers; the existence of well-established competitors; and customers’ preferences. The proposed business solutions to tackle sales stagnation are: new STP strategy; validated Value Proposition Canvas; new 4Ps Marketing Mix strategy; organizational structure plan; and choosing the most suitable strategy out of Porter’s Generic Competitive Strategies, which is the differentiation focus strategy.