HITS.

CO: A Journey be Hits

Part I: Case Description

Opening Paragraph
Selebgram1 endorsement is new effective promotion in this era. Hits.co, event organizer
firm, interested to use this kind of promotion but because of selebgram endorsement price is high,
Hits.co cant afford it. Deasy Anisa, owner of Hits.co, decide to use word-of-mouth promotion
from her friends and former consumer, attended certain events to expand their market such as
attending graduation ceremonies at campuses in Bandung City, all of which is affordable
promotion strategy. A group of MBA ITB students Shita, Adjeng, Rifki, and Leon which is friends
of the owner help her to solve the problem.

Company Profile
Deasy Anisa, owner of Hits business born in 1992. She is a natural born entrepreneur.
She started her first business when she was a second year student in Bandung Institute of
Technology. At that time, she sold drinks, especially tea. She sold tea products, such as green tea,
thai tea, taro tea, banana tea, etc. Besides, she also sold food, such as pasta, tumpeng, cake, etc. In
her third year, she saw opportunities in balloon and graduation gift business. This business is the
starting point for the establishment of Hits business.
To be precise, in December 2015, Hits started out expanded their line to include Hits.co to
increase both market share and revenue. Hits.co is product line of Hits business that offer services
of party planner. Hits.co established by looking at society trends about party habits nowdays.
People become more excited to create party, such as birthday party, bridal shower, baby shower,
engagement, etc.
From her office in Bandung, Deasy Annisa explained Hits.co product, services, and
strategy to compete with competitors. We offer party planning services for all event, not only for
party but also we provide religion ceremony. There are 7 members in the business, each member
work together for all projects. We offer services by consumer request to satisfy consumers by
giving them what they need. Currently, we serve for Bandung, Cimahi, and Padalarang area but if
consumer wants to make event in other city we can serve them with extra charge. We also have

1
Selebgram: Instagram artist. Famous people in instagram.
relationship with former consumer to keep loyal consumers, and we used social media to advertise
our products.
Hits.co based in Bandung and operates in many cities around such as Cimahi and
Padalarang, sometimes Jakarta. In a month, they could get order up to 20 events. However, they
could only serve 3 event maximum per day. The most request of event usually come on Saturday
and Sunday.

General Product/Category Knowledge:

Hits.co offers services to decorate events such as birthday party, engagement,
anniversary, bridal shower, baby shower, funeral ceremony, and "aqiqah". At first, consumers will
contact the Hits.co admin via whatsapp or line. Second, Hits.co will offer services or products that
they have in accordance with the needs of consumers. After that, they will negotiate to determine
the theme of decoration, the place for the event to be held, and bargain the price. After it matches
with the consumer wishes, Hits.co will check the availability of items that will be used for
decorating, and design detail for the decoration in accordance with the theme of consumer wishes.
On the event day, Hits.cos team come earlier before the consumer arrives to decorate the venue.
Then, the Hits.cos team will wait until the event is over to sort out their decorations.
In addition, Hits.co also sells decoration items only. As, if consumers only need items to
decorate their event but do not need the services to decorate, Hits.co can provide those consumer
the items that they need.

Macro Economy Situation

In 2017, Indonesias economic is in good condition. It is growth 5.01% to the same quarter
in 2016. Gross Domestic Product has increase to Rp 3,366.8 trillion. Income per capita in 2016
has increase compared to 2015 from Rp 45.14 million/year to Rp 47.96 million/year. Gini ratio
improve 0,005 from 0.402 in 2015. Inflation rate is also in a good condition, it is decrease from
3.35% in 2015 to 3.02%. Unemployment rate of also decrease from 6.2% in 2015 to 5.6%. The
poverty rate of 10.7% has decreased by 0.5% if compared the previous year of 11.2%. Exhibit 1

Industry Situation
Blume Party Planner, DW Decoration 23, Nona Manis Creative Planner are party planner
in Bandung. They are main competitor of Hits.co. Blume Party Planner and DW Decoration 23
offer lower price than Hits.co. Nona Manis Creative Planner offer higher price than Hits.co but
they use selebgram endorsement for their promotion so people more aware their party planner than
Hits.co. Hits.co mainly use word of mouth promotion from former consumer and friends of Hits.co
employee. Exhibit 2

Customer Segments and Behavior

Consumer of Hits.cos buying behaviour affected by cultural, social, personal and
psychological factors. Cultural factor that affecting buying behaviour among Hits.cos consumer
is social class. It is determined by income, occupation, education and wealth.
Groups and social networks such as word-of-mouth and online social networks affected
Hits.cos consumer in a way that persuade them to use party planner for their party, celebration or
ceremony. Besides, roles and status like endorsement used by boss or other people that influenced
the consumer also affected their decision to use party planner.
Personal factors of the consumer that affect the process of decision to use party planner
consists of age and life cycle stage, occupation, economic situation, lifestyle and personality and
self-concept. The consumer psychology such as motivation, perception and beliefs and attitudes
also affect their decision.

Marketing Mix
As other service businesses, Hits.cos marketing mix consists of Product, Price, Place,
Promotion, Process, Physical Evidence, and People. As defined by Kotler and Amstrong (2011),
marketing mix is tools of marketing that purpose to satisfy customer needs and build customer
relationships. It is a combination of the different elements of services marketing that companies
use to communicate their business.
Hits.co serves people that wanted their birthday party, anniversary, bridal shower, aqiqah,
funeral ceremony, and many other celebration to be organized. Hits.co do the decoration of the
party, ceremony or celebration, provide camera-man and the place for the event to be hold at.
Besides that, Hits.co also provide renting services for the other party planner business.
The product and services offered by Hits.co delivered directly to the consumer without any
intermediaries. In other words, Hits.co use Channel 1 strategy to distribute their services. Hits.co
sets pricing for its product based on the amount of people involve in the event, the minimum order
is for 2 persons that priced for 550 thousand rupiah, the second bundle is for 3-4 persons that priced
for 700 thousand rupiah, 980 thousand rupiah set for 5-7 persons, 1.3 million rupiah set for 8-10
persons, etc. Exhibit 3
Media such as instagram that in now booming among people age 15-40 use to promote
Hits.co services. Besides, Hits.co owner also asks their friends and uses word-of-mouth to
encourage their business as the promotion strategy. Also, to attract new customer, Hits.co asks
their former customer to help them introduce their product to new customer.
If consumer wanted to use Hits.co services, they will first need to contact Hits.co. it can be
through call, whatsapp, or instagram. After that, Hits.co will offer and introduce the consumer to
services they provide. The consumer then choose the appropriate service they need before they
negotiate the price and have a deal. After all the matters done, Hits.co will decor the place to be
use in the promised time.
To provide excellent services, Hits.co complement itself with good physical evidence. At
this time, Hits.co have decoration stuff, equipment such as, car, phone, laptop, and good people in
their posession.

Closing paragraph
Hits.co is lack of promotion because of selebgram endorsement price is high. However,
based on owner interview we pin point the main problem is Hits.co lack of information of
selebgram endorsement. The owner only know some of selebgram that have unaffordable price.
Also, she didn't aware that Hits.co can use other promotion strategy that increase sales which is
affordable.
Part II: Case Analysis

Analysis
Macro-environment
Demographic
Location: Hits.co offers services decorating the event located in Bandung, Cimahi, and
Padalarang. Actually Hits.co can serve outside the area of Bandung, Cimahi, and Padalarang
according to consumer demand, but will be charged as far away location.
Gender: Consumer of Hits.co are female and male. There is more female consumers than
men consumers, usually female consumers using Hits.co services to decorate events such as
birthday party, bridal shower, baby shower, etc. While the male consumers usually use Hits.co
services to decorate the anniversary event.
Age: Hits.co consumer age range in 17-35 years. Hits.co consumer start from student-age
till adult-age about 35. However, the target mostly from 20-25 years old.
Occupation: The average of Hits.co consumer occupation are students and employees.
Most students use Hits.co services for birthday party, anniversary, etc. While those who work as
employees have a variety of events such as aqiqah, bridal shower, baby shower, etc.

Economics
From economics factor, there is income distribution that is average of consumer income
Hits.co is Minimum Wage Regional (UMR) and spend pattern is lifestyle. Because holding an
event with a party planner is a trend, then this phenomenon is an opportunity for Hits.co.

Technological
Hits.co uses technology to run its business such as using social media for marketing, using
mobile banking to simplify transactions with consumers, using technology to design decorations
in accordance with the theme consumers want, and Hits.co also uses delivery service order to
deliver goods decor.

Political and Social

Socially Responsible Behavior : Company look beyond what regulatory system allows and
simply do the right thing

Cultural Enviroment
 Customer Religion
Customer Races
Peoples Views of Themselves
Peoples Views of Others

SWOT Analysis
Strenghts
Hits.co compared with competitors are more flexible in serving consumers. This form
of flexibility is flexible in determining the venue. When a consumer requests an event outside of a
regional location the business operations, it can be negotiated with additional fees. Hits.co also
provides a flexible service in terms of price. Consumers can customize the decoration items to be
used so as to reduce the price or want additional decoration items. Finally, consumers may request
Hits.co services on H day of execution.
Hits.co provides excellent services to its consumers. Whatever the customer asks will
be fulfilled at best. For loyal consumers Hits.co loyal in giving discounts. The most important
thing for Hits.co is customer satisfaction. Every customer served will be served as much as
possible, decoration items used are the best quality, using attractive colors so exclusive and give
the best decoration.

Weaknesses
Apart from the advantages that exist, the price offered by Hits.co still quite expensive.
However, the price is still relatively cheap when compared to competitors for the same quality.
Small business scale, management experience that not yet much, the owner's age that is relatively
young, and the desire or needs of the owner in seeking certainty to their income make Hits.co
management has not been managed properly, especially in managing time. At this time, Hits.co
only members 7 people, so that the maximum event they can served only 3 at maximum per day.
Hits.co also has not been able to manage employeess job desk well. Of the 7 members, no
one has specialized specialization for specific job occupations. All members are required to
understand every detail of the work.

Opportunities
 As the age of Z generation increases, it will further increase their need for something (in
this case are birthday party, anniversary, etc.). The development of social media such as instagram
and community trends in celebrating special moments open up the opportunity for the emergence
of party planner services. In this case the party planner took part in the form of planning and
decorating the event to be celebrated. From big cities, such as Jakarta, Bandung, etc. People's
trends in celebrating these special moments have spreaded into the surrounding developing
regions. This is the time for Hits.co to expand its business.

Threats
There are some competitor of Hits.co. They offer lower price than Hits.co, also other
competitor use selebgram endorsement for their promotion so people more aware of their party
planner than Hits.co. also, in the future there will be an advanced in technology, people become
more creative and trend of party planner will fade away, Hits.co should prepare themselves to offer
unique decoration and keep loyal consumer.

Key findings
The growth of the Z generation encourages the emergence to celebrate special moments
Internet of things era facilitates the Z generation to channel their creativity
Economic growth becomes the basis of society to do other things with their money beside
for primary needs only
Now, Hits.co only capable to serve 60% -80% of the maximum demand that they can try

Proposed Solution
To deal with Hits.cos problem, the assumption is in the future there will be more
Selebgram. This phenomena will create the supply of instagram artist increase. the demand
also increase but not as significant as the supply. So, there will be more competition of selebgram
that cause their payment or price may go down. Exhibit 4. As the advertising price decrease,
company will be able to advertise and so they can meet their objective to gain more customer,
increase profit and brand awareness.
The marketing problem faced by Hits.co is currently the price of expensive advertising
media. Currently, online advertising media such as using endorsement by selebgram is very
effective. Consumers are more likely to see social media like instagram than by viewing ads on
television or radio. Until now, Hits.co already use online advertising media in Instagram, but not
yet maximized. Hits.co also uses its former consumers to market its services.
It is recommended for Hits.co to endorse their product or services using selebgram
endorsement on instagram. Hits.co can use www.sociabuzz.com and www.endorsepin.com to find
out various fees for endorsement services and selebgram artist that suit the field of products to be
endorse. Therefore, Hits.co can customize which selebgram endorsment fit their budget and the
right selebgram to market their products or services.

Hits.co can also use social media like LINE or Whatsapp to reconnect their former
customers, by giving away dicscounted price that Hits.co offer. Hits.co can do this by broadcasting
to all contacts in their contact list. In addition, Hits.co should also make a chat bot in LINE so that
consumers get a quick response to any questions they may ask about the product of Hits.co.
It is also recommended for Hits.co to create brochures about their company and services
they offered. Then, considering there are some Restaurant or Caf in Bandung that have worked
well with Hits.co, then Hits.co can entrust the brochures in the Restaurant or Caf that has been
working with them. That way, both sides can benefit from each other. Hits.co can also provide
brochures to student associations in every majors on campus in Bandung for "Graduation Night".

Implementation Plan
Selebgram
Activity Description
Hits.co uses the website www.sociabuzz.com and www.endorsepin.com to find out the full
range of fees for endorsement services and artist programs that suit the product to be endorsed.
Therefore, Hits.co can customize which endorsment programs fit their budget and the right
program to market the products or services offered by Hits.co.
Selebgram List:
Adzwa Aurell
o Follower women aged 13-18 years old
o Follower 1.1M
o Suitable for Hits.co birthday party product
Ibrahim Risyad Z.W
o Follower women aged 16-21 years old
 o Follower 71.5k
o Fashionable Men
o Likes to Adventure
o Frequently show romantic moments with his partner
o Suitable for Hits.co anniversary and birthday party products
Dewi Paramita
o Follower women aged 16-21 years
o Follower 70.8k
o Fashionable Women
o Likes make-up and photoshot
o Frequently show romantic moments with his partner
o Suitable for Hits.co anniversary and birthday party products
Nabila Gardena Princess
o Follower women aged 13-25 years
o Follower 370k
o Women fashionable and likes make-up
o Traveler
o Suitable for Hits.co birthday party product, graduation party
Zyta Delia Rahma
o Followernya young mama
o Followernya 83.2k
o Fashion Hijab
o Suitable for Hits.co anniversary products, baby shower, birthday party
Time Schedule
Adzwa Aurell: posted on September 30, 2017, for the birthday party promotion. Note:
promotional photos are not deleted
Nabila Gardena Putri: posted on October 14 - November 4, 2017, for the promotion of
graduation party and "graduation night". Note: promotional photos are not deleted.
Ibrahim Risyad Z.W and Dewi Paramita: posted on November 6, 2017 for an anniversary
promotion. Note: promotional photos are not deleted.
 Zyta Delia Rahma: posted on 13 January 2018 for aqiqah promotion Note: promotional
photos are not deleted.
Responsible Person
Deasy Anisa Natalia
Estimated funds
Rp 2,000,000 - Rp 8,000,000
Enhanced concept
Endorsement is done to inform the products/services offered Hits.co and for persuade target
market to use services Hits.co.
Resource required
Funds and equipment and decoration equipment.
Constraints faced
If the program concerned does not feel compatible with the product or service offered. And
if the specified time clashed with other schedules of the program.
Promotion strategy
This promotion is expected to inform the products and services offered Hits.co and able to
persuade target market to use services offered Hits.co. Additionally, the dates for uploading photos
that are endorsed by the program are selected or determined by Hits.co in accordance with the
exact time for a particular product or service.

Maintain Relationship with Consumer Through LINE and Whatsapp

Activity Description
Hits.co uses social media LINE and Whatsapp to contact their customers and inform
Hits.co's current promotions. In addition, Hits.co should also make a chat bot in the Line so that
consumers get a quick response to any questions asked by consumers about the product Hits.co.
Time Schedule
Starting November 2017
Responsible Person
Jeanny Kartika
Estimated funds
Free
Technical activities
Hits.co broadcasts to all contacts in their contact list. Hits.co follows Instagram consumers
and gives "likes" and "comments" to every consumer posting photos. Hits.co have anniversary
date, birthday date, etc. of every consumer so everytime consumer celebrates it, Hits.co can
congratulates them.
Resource required
Social media and internet quota
Promotion strategy
This promotion is expected to inform the products and services offered Hits.co, able remind
target market to reuse services offered Hits.co and able to create brand awareness in the minds of
consumers.

Brochure
Activity Description
Hits.co makes brochures about their company as well as the products and services they
offer.
Time Schedule
Starting November 2017. Design starts on October 16, 2017
Responsible Person
Puteri Siti Salmiati
Estimated funds
Rp 500,000 - Rp 1,000,000
Technical activities
Hits.co entrusts their brochures at a restaurant or caf in Bandung that has established a
good cooperation with Hits.co. Hits.co can also place these brochures at other famous cafs.
Hits.co can also provide brochures to student associations in every majors on campus in Bandung
for "Graduation Night".
Resource required
Funds and brochure design
Constraints faced
If cafe or resto do not want to accept the brochures.
Promotion strategy
This promotion is expected to inform the products and services offered Hits.co, able
remind target market to reuse services offered Hits.co and able to create brand awareness
in the minds of consumers.
Exhibit 1
Exhibit 2
Exhibit 4

P0 and Q0 : Initial position of supply and demand. Supply and Demand equal.
Q0 to Q1 : demand increased but supply remain constant, result in increasing in price (P0
to P1)
Supply decreased but demand remain constant, result in increasing in price (P2 to P1)