PROPOSED BUSINESS STRATEGY FOR MIRAI JEWELRY TO INCREASE SALES REVENUE THROUGH ORGANIC ENGAGEMENT ON INSTAGRAM

• Main Author: Yulius
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/46875
• Institution: Institut Teknologi Bandung

Mirai Jewelry is a fashion brand on Instagram which specialized on personal jewelry, with “Simple, Personal, Unique, Elegant, and Affordable” as its core branding values. The brand had managed to get around 50.000 followers in 1 year and was able to get more than 2% average monthly engagement for its content. However, because Instagram gradually decreased organic reach, Mirai Jewelry’s average engagement level is falling. Lower engagement means less people seeing the content and less people visiting Mirai Jewelry’s profile page, which means fewer potential customers and eventually will result in lower sales. By identifying the elements of the product content that influence users to engage, optimization will be possible and hopefully the engagement level will increase. Similar with its engagement rate, the revenue growth of Mirai Jewelry had stagnated on semester 2 of 2019. This could correlate with the declining engagement rate as well as other factors. Several strategies had been tried to increase the monthly revenue, such as: increasing ads budget, frequent giveaways, flash sales, and endorsing fashion influencers, with little to no result. It is important to devise a new strategy to break from the stagnant state and achieve growth. In order to formulate a business strategy, internal and external condition of Mirai Jewelry were analyzed. Internal condition was analyzed using several tools: Segmenting, Targeting, Positioning, Beachhead Market, Marketing Mix (4P), Business Model Canvas, and Strength & Weakness. External condition was analyzed using Porter’s 5 Forces, Competitor’s Analysis, AHP (Analytical Hierarchy Process) analysis, and Opportunity & Threat. Both internal and external analysis were used to formulate TOWS Matrix. The TOWS Matrix was used to formulate business strategies for Mirai Jewelry. The Analytical Hierarchy Process Analysis was done by observing several fashion jewelry brands with high level of engagement on Instagram and literature review to identify the elements which incite engagement. The AHP questionnaire respondents were Mirai Jewelry’s follower on Instagram. The result of AHP analysis was used to make strategies to increase organic engagement on Instagram. The formulated business strategies proposed that Mirai Jewelry should focus on making products which utilized its core brand value and deliver them to its beachhead market. Mirai Jewelry should focus on lowering its average delivery time through thorough planning, outsourcing and increasing variations of ready stock products. Strengthening brand image is also an important strategy which can help Mirai Jewelry stand out from competitors. To increase organic engagement on Instagram, Mirai Jewelry should post regularly on peak hours by following the recommendation from AHP analysis for the product content, which are a mix of photo and video showing one product worn on the body of a model, with product information on the caption. Mirai Jewelry should also post “Value Content” which will provide value for followers and encourage them to engage with the post. Instagram Ads is also recommended to increase traffic and engagement. The recommendations will be implemented starting from January 2020 and the results on sales revenue and engagement will be continuously monitored. The strategies will be adjusted accordingly based on the results.