HOW CUSTOMER BASED-BRAND COMMUNITY CONTRIBUTES TO BUILD BRAND EQUITY (CASE STDY OF LOCAL BEAUTY BRAND: CONFITTY)

• Main Author: Muqitaputri Gunawan, Salma
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/83042
• Institution: Institut Teknologi Bandung

In Indonesia, social media promotion is known as the biggest and most effective platform for good selling, as it also applies on cosmetics promotion. A local cosmetic brand, CONFITTY, transcends conventional branding, striving to establish a close, communicative relationship akin to that of a trusted friend. However, despite its active engagement on social media platforms like Instagram and TikTok, CONFITTY has low consumer purchase conversion rate and poor customer retention. This product eventually faces challenges in penetrating the beauty market due to its low market share of 0.2% and struggles to gain client attention and trust amidst established brands. The preliminary analysis identifying customer-based brand equity (CBBE) reveals that the problem caused by retention stage. Thus, this research aims to examine the extent to which social media-based brand community could increase CONFITTY brand equity. The result would be a basic consideration to propose social media based-brand community strategy as an effort to increase brand loyalty of CONFITTY. To achieve the objectives, this study conducted internal analysis using VRIO, marketing mix, and brand inventory approaches; and external analysis using PESTEL, Porter Five Forces, competitor analysis, and brand exploratory approaches. Data collection examines the relationship between social media-based brand communities (SMBBC) and brand equity. This research results showed that shared consciousness in SMBBC showed no significant influence on brand awareness, but positively and significantly influence brand loyalty. While shared rituals and traditions, and obligation to community in SMBBC positively and significantly influence brand awareness and brand loyalty. The findings reveal a strong sense of community belonging among participants, indicative of a thriving social media-based brand community. While brand awareness levels are notably high, loyalty appears to be contingent on factors such as price competitiveness. The result of the research exhibited some future implementation for increasing brand equity of CONFITTY. The strategies such as implementing a loyalty program and rewarding loyal customers emerges as a promising strategy within the CONFITTY brand community to address issues related to customer retention. Furthermore, Continuous refining of CONFITTY's color association and periodical update of its visual identity are essential steps in enhancing brand appeal and resonate more effectively with its target audience.