CONSUMER BEHAVIOR PAPER
The Application of Consumer’s Knowledge and Involvement Concept in “Adu Segar Larutan Penyegar” Case Study from Brand Cap Kaki Tiga Perspective
MMBM Batch 25
Larutan Penyegar Cap Kaki Tiga, currently being manufactured by PT Kinocare, is facing a fierce competition against Larutan Penyegar Cap Badak since Wen Ken Drugs decision in February 2011 to withdraw the license from PT Sinde Budi Sentosa and granted it to PT Kinocare. In the market, the new Larutan Penyegar Cap Kaki Tiga is perceived as a replica product of its predecessor and they are struggling to gain consumer brand awareness and eventually become consumer’s choice. In this case study, we recommend Larutan Penyegar Cap Kaki Tiga to get out of the tight corner by implementing a breakthrough innovation in order to gain consumer interest and remove consumer’s visual imagery of Badak logo that has been anchored in consumer’s memory since 1937
1937 - The Product Era
About 75 years ago, in 1937 four Singaporean Chinese families decided to go into business together to market a secret traditional medical recipe which becomes known as Three Legs Cooling Water. In Hokkien, '3 legs' (pronounced as Sa Ka) is a popular proverb meaning to flatter someone. But in the world of traditional medicine in Singapore and Malaysia, the '3 legs' means a simple effective way to prevent or heal fever and headache caused by 'healthiness' in the body The logo features two legs on solid ground and one additional leg to provide additional support and expedite the healing process. The symmetrical legs represent equality for all and humbleness on others' views and suggestions. And finally, the circle marks the cohesiveness of the staff and customers centered on the triple legs
1978 – Introduction into Indonesia Market
About 30 years ago, in 1978 Wen Ken Drug Co. Ltd Singapore granted the license of Three Legs (known locally as ‘Cap Kaki Tiga’) to PT Sinde Budi Sentosa as licensed manufacturer with headquarter located in Jakarta.
2011 – Transfer of License
Wen Ken Drug Co. Ltd Singapore withdrew the license of Cap Kaki Tiga from PT Sinde Budi Sentosa and transfered it to Kino Group.
February 2012 – The Competition
Kino Group was prohibited from using Cap Kaki Tiga brand together with Cap Badak painting on the product. PT Sinde Budi Sentosa has won their claim over the usage of Cap Badak painting on their products and Kino Group may use Cap Kaki Tiga brand. This is the beginning of the competition on cooling water between Cap Kaki Tiga and Cap Badak. Following is the comparison of the product : Larutan Penyegar Cap Badak (Sinde) and Larutan Penyegar Cap Kaki Tiga (Kino).
About Kino Group
Kino Corporation started as a small distribution company named Duta Lestari Sentratama back in 1991. Another big step was taken in 1999, Kinocare Era Kosmetindo, manufacturer of a wide range of personal care products for all genders and ages was established. 2003 saw Kinocare Era Kosmentindo enlarged its businesses further into homecare division by providing a wide range of homecare products under the brand Sleek. Expanding into Asian region, in 2002 Kino opened its branch office in Malaysia; Kino Care (M) Sdn. Bhd., and in 2003 in the Philippine; Kino Consumer Philippines Inc. and also established distributorships with some other big distributor companies in Singapore, Brunei, Vietnam and Myanmar. Kino Group consists of the following:
1. PT KinoCare Era Kosmetindo : Personal care and Home care products (Kino Sweat, Ovale, Eskulin, B&B Kids Shampoo, Ellips, Sleek, Cap Kaki Tiga) 2. PT KinoSentra Industrindo: confectionary products such as candies, snacks and chocolates (Kino Candy) 3. PT KinoAid Indonesia : Pharmacy and Beverages (Resik V, Absolute, Panthers)...
Please join StudyMode to read the full document