LEVERAGING OMNI CHANNEL TO INCREASE REVENUE IN NON-PASSENGERS BUSINESS OF PT. KERETA COMMUTER INDONESIA

• Main Author: Puri, Risdyanti
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/46567
• Institution: Institut Teknologi Bandung

Since 2011, KRL or EMU (Electrical Multi Units) has been consistently operated on railway based transportation in Jakarta to serve citizen all day, from 4.30 AM until 11.30 PM. Their brand name is called “COMMUTERLINE”. They become the backbone of city transportation that are connecting Jakarta, Bogor, Depok, Bekasi, Tangerang, Cikarang & Rangkasbitung. Helping people to commute from sub-urban area to work in urban area. The Government has targeted PT Kereta Commuter Indonesia (PT. KCI), one of subsidiary company under PT KAI to reach 1,2 million passengers by 2019. They are obligated to services the public and always improving the quality of their services & safety. Furthermore, their transports are known as eco-friendly (no air pollution) public transportation. Compare to other type of public transportation, Commuterline is faster & cheaper than other public transportation. Nowadays, they upgrade their facilities on stations and trains, which making the environment clean and more comfortable. In result, by doing this upgrade the result for customer satisfaction Index by 2018 (CSI) was 84,1% , which shows that the Commuterline the best choices for urban transport. Commuterline has been successfully increasing the capacity of passengers than previous year. In 2016, the carrying capacity was only around 500 thousand passengers per day. While today, with 926 trips every day they manage to reach almost 1 million passengers per day. Realization of passenger volume that exceeded the target by 107% or 336,798,524 passengers in 2018 becomes real evidence of the higher carrying capacity that has been implemented consistently by the this company. Commuterline is more than public transport, but is new movement of changing culture sub urban people’s attitude in public transportation. Following that condition, make it the impact to other business line in station & train. The passenger behavior also has changed too, which the function of station became place to be meeting point & shopping place. Otherwise the number of merchants are also growing. Market demand form the consumer brand for put their advertisement on train & station. Since 2011, the business non-passenger especially on media advertising on train business, have good performance & successfully, the graphic revenue is tent to be grow for every year & almost 300 brand already advertise to commuter advertising. In a while the business passenger stuck because of the regulation of PSO scheme, commuter advertising is one of the big potency of business opportunity to rise the revenue. In 2019, The most challenging year for PT KCI. Facing the main problem such as Public Service Obligation (PSO) regulation & the changes Government policy issued, company must to return profit to government which gave impact to decreases in company profits. That’s problem above also make performance’s company is declining Corporate Soundness Level based on calculations according to the Decree of Minister of State Owned Enterprises No: KEP-100/MBU/2002 was 74.00 from the program of 67.00 or attained the title HEALTHY “A” and Realization of Contract Management (KPI) of 88.5 from the program of 96 (AA) and then In terms of financial, the operating revenues in 2018 reached Rp2.5 trillion from the target of Rp2.7 trillion. In All that situation, company stuck in the middle in couldn’t increasing revenue on e-ticketing business because of PSO scheme, also hampered license e-money. More over the company only have opportunity is in business non-passenger even though the contribution is still 7% of total revenue, but the media advertising business is still promising to be improve & developing. For past 3 years, commuter advertising had been leading on media transportation public in Jabodetabek area especially city railway transportation. Since 2018, Commuter advertising have been decreasing in number of revenue. There are several factors of decreasing the performance, either the media space doesn’t have any development or innovation or have new competitor is MRT media advertising. Taking challenges to raise revenue from optimizing asset commercialization from commuter advertising. Analyzed the internal factor & external factors what asset can be potency to be explored & developed. Especially today, in the digital era change the market shift connected to customers. Since the commuter advertising media still traditional & massive, haven’t yet connected in online media. How commuter advertising still competitive with others media on public transportation? With marketing 4.0, perhaps can make commuter advertising is enter to omni channel, being a media digital & develop more opportunities. Which is the media have more connectivity to passenger made more brands interest to put their advertisement on train. Also, how the company formulate the strategy for Commuter Advertising as supporting business in PT KCI can be still competitive in others media advertising in out of home (OOH) industry.