PROPOSED MARKETING STRATEGY TO IMPROVE SERVICE QUALITY AND BRAND LOYALTY: CASE STUDY OF GARUDA INDONESIA

• Main Author: Muthia Kusumawardani, Ayu
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/46840
• Institution: Institut Teknologi Bandung

Service quality is the most important element in any service companies, including airlines. For Garuda Indonesia, as a full service airline, it becomes more crucial as it will be compared to the price offered. However, the past year has been rough for the company. Facing external and internal problems made the company had to rearrange its strategy towards cost leadership. Meanwhile, this strategy is perceived by passengers as downgraded service quality. This year, for the first time Garuda Indonesia is not included in Skytrax’s Top 10 World’s Best Airline and World’s Best Cabin Crew. Therefore, the airline needs to improve its service immediately to remain competitive with other airlines. This research aims to find a strategy that can improve Garuda Indonesia’s service performance yet in an efficient manner. This research implemented quantitative and qualitative methodology. Quantitative is conducted by surveys, including Customer Satisfaction survey and Brand Equity survey, whereas qualitative is conducted by observation. The analysis starts with business issue exploration by using PESTEL, Porter’s Five, and SWOT analysis. Followed by business solution, by utilizing Importance Performance Analysis, Brand Equity, and Co-branding Strategy. The result discloses that Garuda Indonesia could apply Co-branding Strategy by leveraging its strong brand image to attract other brands to cooperate. For brand loyalty, Garuda Indonesia could obtain it by improving its service quality, complaint management, and customer engagement.