The IPMI Group Field Project on PT. General Electric Lighting Indonesia (PT. GELI) was to recommend a strategy for Dop. The Group was to find Dop's initial issues or problems, to analyze present condition, and to make a recommendation.

In 1998, Indonesia's electrification ratio was 47%. So, there is still a potential large room to provide electricity for the rest of the population. Based on PLN data, electricity demand has been growing rapidly for the past ten years. Our group decided to segment the market as Segment 1 (450 VA -900 VA) and Segment 2 (901 VA -2200 VA) based on R1 or Rumah-tangga (450 VA -2200 VA) PLN electricity wattage classification. R 1 constituted 93% of total PLN customers.

We used SWOT analysis to locate Dop present competitive position. Dop strengths are first, consumers value the fact that GE, the only US lamp manufacturer in Indonesia, produced Dop; second Dop strength is higher price perception than Philips. Dop

weaknesses are low satisfaction rate, low awareness, and low performance than Philips. DOP is also weak despite its promotion theme "Terang PiIih Dop"; and it is lower-than-industry-growth fluorescent lamps. Dop opportunities come from electrification ratio growth, electricity subscribers' growth, increasing usage rate of energy saving lamps, and higher-than-warung electric store purchasing rate. Dop opportunities are price conscious and influenceable respondents. Dop threats come from brand switching among loyal consumers, Chiyoda's improved brightness, cheaper.

imported products. Other Dop weaknesses are Philips' retaliations and higher-than- bulbs fluorescent growth.

Based on price and quality variables, there are two tiers of brand classifications, which are the Premium or First Class brand and second-class brand. We recommend that Dop grow at least at the same rate as industry growth on both classes. To achieve this, Dop is to target the segment R1 and to position itself as "The best-priced lighting brand from GE Lighting, the US largest lamp manufacturer, with durability as good as premium brand". To support this strategy Dop is to maintain its existing product line with more attention to fluorescent lamps.

Dop should support the repositioning claim with product quality improvement. We also suggest increasing the price from 30% below Philips to 24% below Philips at retail level. By distributing Dop through warung and electric store, we expect to cover important point of sales where consumers purchase. Combining a pull and a push strategy with a promotion budget of 35% and 65% each, Dop is to communicate the new position and to induce trial.



Research Location: PT. General Lighting Indonesia

Supervisor: Dr. Hadi Satyagraha

Accepted: 30 July 1999



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