UDGET AND CONTENT STRATEGY: AN EXPERIMENT ON DAILY SALES ON A SMALL FASHION ONLINE SHOP

• Main Author: Aulia Annisa Fakah, Yesya
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/53546
• Institution: Institut Teknologi Bandung

The significant growth of small to medium company in Indonesia has become the problem of most company’s sales performance. The multitude numbers of the sellers in the same business field caused players to fight for similar audiences while providing similar products or services with similar prices. This condition is most likely leads to less purchasing power because there is no difference in quality or specialty that stands out. For example, in the fashion field, the audience could easily find the same product from several sellers, and the purchase decision will be based on their knowledge of the brand. In other words, if the same product sold at a lower price, the audience may still purchase from brand with higher purchase simply because they do not notice the existence of other brands. Fortunately, SMEs are also are faced with new business opportunities through online channels, i.e., social media. The online platform offers many advantages, especially for small businesses, to raise awareness, attract broader consumers, and eventually scale up the company. However, this opportunity also embraced them with a whole different challenge on how to optimize the platform. Many small businesses fail to overcome the new challenges due to their limitations, such as lack of financial and human resources. The purpose of this study is to examine the relationship between budget strategy and content strategy on the daily sales performance of an online fashion retail shop in Indonesia. This study conducted a qualitative experiment to test the effectiveness of budget and content strategy on a small reselling fashion online shop in Indonesia. The experiment results will be gathered in one data set, which will further analysed through the lenses of univariate and multivariate regression model (OLS). As a start, this study selected By.yesya as a small reselling fashion online shop in Indonesia as an experimental object. The experiment will use the company’s resources to generate the primary data as such data will not be available publicly. During the experiment, the study divided two main group, which are base group and paid group. In general, base group acted as a reference for the tested variable. Additionally, paid group consists of low-budget group and high-budget group to test the effectiveness of budget strategy and assigned with six content strategies for each group to measure the effectiveness of content strategy. i Finally, using 1,637 daily sales observations, the result shows several implications. First, the research conclude that the company experienced an increase in sales quantity and revenue when the product is advertised. Given the situation that small company is still hesitating in advertising their product because of financial and technical issues, this result acted as a motivation for them to start allocating advertising resources in order to generate sales rather than, for instance, only post the product in the social media. Secondly, the higher amount of budget allocation is positively related to the higher sales quantity and revenue. This results may not primarily suggested the exact budget amount for the advertising to give its best results, though it could be a reference for small company that, for instance, budget below Rp. 50.000 per day is most likely not be effective and it is better for them to increase the budget in order to at least get a return of investment. This results also imply that budget allocation of more than Rp. 300.000 per day may only cut their profit while not necessarily giving them more sales. Thirdly, the application of content strategy in the advertising material is significantly increase the company’s sales quantity and revenue. The results gives suggestion for the brands to pay a more close attention to their advertising content. The products’ benefit may not be well received by the audience on a hard-selling strategy but rather the use of message strategy. One main conclusion is that this study provides a glimmer of enlightenment; there should be a reference whereby other businesses are keen to see how online advertising is sufficient to increase sales performance.