Proposed Customer-based Brand Equity (CBBE) Strategy for Railway Courier Service – Case Study: Rail Express of PT Kereta Api Indonesia

Abstract

PT Kereta Api Indonesia (KAI) is a railway transportation service provider in Indonesia. In 2019, KAI launched railway courier service to support logistic sector, called Rail Express. Despite the advantages of railway courier service in providing low-cost fee and minimum risk of time delay and accident, low market penetration indicates brand awareness in the market is still very low. The main objective of this study is to develop customer-based brand equity strategy for railway courier service, by using Rail Express as the case to carry out the research. This study used a series of qualitative method research to fully comprehend the business situation and propose the solution to the business problem. First, in-depth interviews were conducted to the management and staff of KAI to assess external and internal environments of railway courier service. Second, focus group discussions were conducted to gain consumers’ insight related to brand awareness and brand image of Rail Express. The discussion was attended by 16 participants that represent Rail Express target market of e-commerce buyer and seller. Third, this study used TOWS matrix to generate business solution alternatives based on previous analysis findings. As the result, this study formulated three main strategies to build customer-based brand equity: first, integrated marketing communication to establish brand awareness by increasing brand recall and brand recognition; second, brand repositioning to establish brand image by developing brand associations related to positive image and technology; and third, improvement on existing marketing mix, i.e., product, distribution channel, and price strategies.