VALUE PROPOSITION TESTING FOR DEVELOPING BUSINESS (CASE STUDY ALCA ACTIVE CARE)

• Main Author: Islam Sayekti, Ali
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/80012
• Institution: Institut Teknologi Bandung

In the current global business landscape, technological and communication breakthroughs have transcended geographical boundaries. The Covid-19 pandemic has further accelerated this trend, driving rapid adaptations across various industries, including a surge in online trade in Indonesia. These changes have significantly impacted marketing strategies, particularly in the skincare sector, which plays a pivotal role in the global beauty market. Facing escalating competition, the Indonesian skincare industry, represented by Alca Active Care founded in 2018, is innovating to sustain growth. This research, employing the Eisenhower matrix, identifies critical issues for Alca Active Care, namely the misalignment of customer expectations with the current value proposition, leading to ineffective sales strategies from 2021 to 2023. Therefore, adjusting to prevailing skincare market trends by emphasizing uniqueness becomes paramount to achieving the success of the skincare brand. The conceptual framework in this research using "Three Kinds of Fit" by Alex Osterwalder is used to test the validity of Alca Active Care's 'product market fit', by utilizing the 'value proposition canvas'. A qualitative approach via Focus Group Discussion and a quantitative approach via a 4-point Likert scale survey was used to obtain data for this research. Focus Group Discussions with loyal Alca Active Care customers helped understand the existing value proposition, while a Likert scale survey was used to identify the value proposition from current market trends. From this research, two new value propositions were hypothesized, namely Multi-function and Intuitive Information. Testing this hypothesis includes three stages: interest validation, preference validation, and willingness to pay validation through ad tracking on Facebook. The research results show that multifunctional skincare products have the highest willingness to pay, while intuitive information in content regarding the use and ingredients of a product has the highest interest and preference. Therefore, Alca Active Care's marketing promotion strategy must highlight this multifunctional aspect to increase sales. Additionally, these brands need to optimize distribution channels, innovate products, and implement effective Standard Operating Procedures in customer service to increase the chances of transactions occurring. This research provides important insights into the importance of aligning value propositions with market expectations and current trends, especially in the competitive and dynamic skin care industry.