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MEASURING THE BRAND AWARENESS OF GRAND ROYAL

PANGHEGAR BRAND

FINAL PROJECT

By

Tiara Luciana Devi

19007048

Undergraduate Program

School of Business and Management

Institut Teknologi Bandung

APPROVAL PAGE

MEASURING THE BRAND AWARENESS OF GRAND ROYAL

PANGHEGAR BRAND

By

Tiara Luciana Devi

19007048

A Final Project in Partial Fulfillment

of the Requirement for the Degree of Bachelor of Management

Undergraduate Program of Management Study

School of Business and Management

Institut Teknologi Bandung

August 13, 2010

Approved By

____________________________ Ir. Budi Permadi Iskandar, MSP

i

ABSTRACT

Grand Royal Panghegar is a new hotel that placed on Jalan Merdeka No. 2, Bandung. Grand Royal Panghegar were established on November 2008. In fact, Grand Royal Panghegar is the new brand for Hotel Panghegar. Hotel Panghegar itself already exists since 50 years ago. At that time, Hotel Panghegar became the most famous hotel in Bandung. As the time went by, many new hotels were built, and of course with different concept that different from one hotel to others. Their purpose is only one, which is become the leader in their business. In the early 2008, MarkPlus Insight did some observation about the people awareness towards the hotels in Bandung. Surprisingly, from the result it can be found that the people awareness for Hotel Panghegar is quite low. The respondents more aware for Hyatt Hotel or Sheraton Hotel, which are those hotels are newer from Hotel Panghegar. Looking from those situations, Hotel Panghegar’s management decided to do brand rejuvenation. They changed the name became Grand Royal Panghegar. They also renovated the building and made it bigger. They expanded their business, so Grand Royal Panghegar do not only have the hotel but also have the apartment, condominium hotel and convention center. Besides, the hotel will also use the “green building” concept for its building Seeing what happened, this paper made in order to measure the brand awareness of Grand Royal Panghegar. The observation will be done to the travel agencies in Jakarta and people in Bandung. The travel agencies selected to be respondent because one of the hotels’ partner is the travel agency, while people in Bandung were chosen because the location of Grand Royal Panghegar is in Bandung. The observations were held by interviewing travel agencies and spreading the questionnaires to the people in Bandung. From the result, it can be seen that the travel agencies and the people awareness toward Grand Royal Panghegar is still low. Most of travel agencies do not know about the rejuvenation and they still got confused between Hotel Panghegar and Grand Preanger. For the people, only some of them are aware about the rejuvenation. However, not all of them know about the brand elements for Grand Royal Panghegar. There are also three segmentations for Grand Royal Panghegar, such as the strong segment, the weak segment, and the segment that still need to be strengthened. Each segment reflected the level of people awareness. The recommendation for Grand Royal Panghegar, it has to expand its partnership between the hotel and travel agencies. It is because the travel agency is one of the tools in promoting the hotel’s products. To increase the people awareness about Grand Royal Panghegar, the management can do the below the line and above the line promotion. It depends on the target market. For the people who have high awareness, the management can give them a member card. However, for the people who have low awareness, the management can join the tourism exhibition to promote the products. From the exhibition, the management can share knowledge to the customers about Grand Royal Panghegar. Key words: brand, brand awareness, brand rejuvenation, brand element

ii

ABSTRAK

Grand Royal Panghegar adalah sebuah hotel baru yang terletak di Jalan Merdeka No. 2, Bandung. Grand Royal Panghegar didirikan pada bulan November 2008. Kenyataannya, Grand Royal Panghegar adalah sebuah merek baru dari Hotel Panghegar. Hotel Panghegar itu sendiri sudah ada sejak 50 tahun yang lalu. Ketika itu, Hotel Panghegar menjadi salah satu hotel yang popular. Seiring dengan berjalannya waktu, banyal hotel baru didirikan, dan tentu saja dengan menggunakan konsep yang berbeda dengan hotel yang lainnya. Tujuannya hanya satu, yaitu menjadi pemimpin di bidangnya bisnisnya. Pada awal 2008, MarkPlus Insight mengadakan sebuah observasi tentang kesadaran merek terhadap hotel-hotel di Bandung. Anehnya dari hasil yang didapat, kesadaran masyarakat terhadap Hotel Panghegar cukup rendah. Para responden lebih mengenal Hotel Hyatt atau Hotel Sheraton yang merupakan hotel baru jika dibandingkan dengan Hotel Panghegar. Melihat dari situasi tersebut, manajemen Hotel Panghegar memutuskan untuk mengadakan perubahan merek. Mereka mengubah namaya menjadi Grand Royal Panghegar. Mereka juga merenovasi bangunan hotel dan membuatnya menjadi lebih besar. Mereka memperluas bisnis mereka, sehingga Grand Royal Panghegar tidak hanya memiliki hotel saja tetapi juga memiliki apartemen, kondominium hotel, dan pusat konvensi. Selain itu, hotel akan menggunakan konsep “green building” untuk bangunannya. Melihat dari apa yang sedang terjadi, makalah ini dibuat untuk mengukur kesadaran merek terhadap Grand Royal Panghegar. Observasi akan dilakukan kepada travel agen di Jakarta dan masyarakat Bandung. Travel agen dipilih sebagai responden karena salah satu partner dari hotel adalah travel agen, sedangkan masyarakt Bandung dipilih karena lokasi dari Grand Royal Panghegar adalah di Bandung. Observasi akan dilakukan melalu wawancara terhadap travel agen dan menyebarkan kuesioner kepada masyarakat Bandung. Dari hasil yang didapat, dapat dilihat bahwa kesadaran merek para travel agen dan masyarakat Bandung terbilang masih rendah. Kebanyakan travel agen tidak tahu dengan perubahan merek dan mereka masih bingung dalam membedakan antara Hotel Panghegar dan Grand Preanger. Untuk masyarakat, hanya beberapa dari mereka yang mengetahui tentang perubahan itu. Namun, tidak semuanya mengetahui unsur merek dari Grand Royal Panghegar. terdapat pula tiga segmentasi untuk Grand Royal Panghegar, seperti segmen kuat, segmen lemah, dan segmen yang masih perlu diperkuat. Masing-masing segmen menunjukkan tingkat kesadaran masyarakat. Saran untuk Grand Royal Panghegar adalah Grand Royal Panghegar harus memperluas jaringan kerjasama dengan travel agen. Hal ini dikarenakan travel agen dapat menjadi salah satu alat dalam mempromosikan produk hotel. untuk meningkatkan kesadaran masyarakat tentang Grand Royal Panghegar, para manajemen hotel dapat menggunakan below the line dan above the line promosi. Hal ini tergantung dari target market hotel itu sendiri. Untuk masyarakat yang mempunyai kesdaran tinggi, manajemen dapat memberikan mereka sebuah kartu anggota. Namun, untuk masyarakat yang memiliki kesadaran rendah, manajemen dapat bergabung dalam pameran pariwisata. Dari pameran itu, manajemen dapat membagi pengetahuan tentang Grand Royal Panghegar kepada para pelanggan. Kata kunci: merek, kesadaran merek, perubahan merek, unsur merek

iii

FOREWORD

Finally this final project is finish. It such a very hard works to finish this project. Many

obstacles were blocking me when I did this final report; from the time when I felt so

lazy to start this project, the internet at my kost that so slow, until found a place that is

very conducive for me to finish this project.

So, first of all I want to give my praise and gratitude for Allah S.W.T, because without

His blessing I cannot finish this final report. I also thanks for Him for teaching me to be

patient and never give up in doing something. Thank you for accompanying me always.

Then I also want to say thank you to:

1. My mom and my dad who always take care of me since I was a kid. Thank you for

always there for me and help me when I find some problems. Thank you for asking

me about my condition. Thank you for everything you have taught to me. I am so

sorry for every mistake that makes you hurt. I wish I can make you both proud of

me. I love you.

2. My very annoying little sisters, Monica and Ilona. And also for my families, thank

you for your prayers.

3. My academic counselor, Mr. Budi Permadi Iskandar. Thank you for helping me

when I got some troubles in making this project. Thank you also for your advices

and your time.

4. My mentor, Mrs. Restina Setiawan, to assist in finding the data I need. Thank you

also for Mrs. Dwi, Mr. Ando, Mrs. Ida, Vya, and Nivo for making my day at the

office so colorful. And for Mr. IP, Mr. Chandra, Mr. Dian, Ms. Fika, Ms. Ocha for

your help.

5. My lectures and tutors in SBM-ITB, thank you for the knowledge that you shared to

me. For Mrs. Anita, thank you for helping me in doing my statistic calculation.

6. Chastity Emmanuelle Hatumesen, my second best mommy in the world. Thank you

for checking my project. Thank you for your time to accompany me even though we

had no idea where to go. I am gonna really miss our togetherness in this ‘dead city’.

7. Siti Indira Tiziomi and Amanda Azzahra, my mates from high school. Thank you

for the time we spent together. Please be patient in the face of noise in the lodging

house.

iv

8. Mutya Wijayanti, the person who always be confused on something; Fiannita

Arumsari, the person who more talkative than me; Ignatia Siahaan, the ‘galau’

person; Alma Elizabeth, the person who likes gossiping; Kara Querida, the person

who has a loud voice; Hazrati Ramadhany, the person who does not like grooming;

Hasya Syafrudin, the person who hesitates in asking for help; Raisa Alliya, the

person who always do not connect for the conversation about; Ikromu Ibadillah, the

person who always makes jokes. Thank you for the good and bad time we have been

through. I’m gonna really miss all of you.

9. My second family, Infurious; Sarra, Prama, Ahmat, Icha, Raysa, Mela, Edho, Dito,

Dhika, Angga, Yana, Razzaq, Faisha, Claudia, Shita, Sandra, Aji, Pandu, Andro.

Thank you for this 6 years, guys. ☺

10. My Apastia Co. friends. Thank you for giving me the best moment in my life.

11. My IM3 friends. Oddisey? I really miss it.

12. My Discussion Group 4; Della, Siska, Nicky, Fajar, Reinaldo for the moment when

we make the assignments together.

13. My KM SBM dance team, for the happiness in this busy schedule.

14. The travel agencies in Jakarta and the people who fill in my questionnaires. Without

all of you, I cannot get the data.

15. Last but not least I want to say thank you for my flirty ducky, Ryan Ardiansyah,

who can play role as my friend, my brother, my father, my enemy, and even my

boyfriend. Thank you for these amazing days we spent together. Thank you for

teaching me everything. Thank you for always there beside me, especially in my

hardest time. Thank you for remind me of my mistakes and my stupidity. Thank you

for taking care of me every time.

In closing, I am sorry if there are mistakes in acts and words. I hope this report can give

benefits for those who read it.

Bandung, May 10, 2010

The Author

v

LIST OF CONTENTS

ABSTRACT .......................................................................................................................... i

ABSTRAK ............................................................................................................................ ii

FOREWORD ........................................................................................................................ iii

LIST OF CONTENTS .......................................................................................................... v

LIST OF FIGURES ............................................................................................................... vii

LIST OF TABLES ................................................................................................................ ix

LIST OF APPENDIXES ....................................................................................................... xi

CHAPTER I – INTRODUCTION ........................................................................................ 1

1.1 Research Background ................................................................................................ 1

1.2 Problem Identification ............................................................................................... 3

1.3 Research Objective .................................................................................................... 3

1.4 Problem Limitation ................................................................................................... 3

1.5 Discussion Systematic ............................................................................................... 3

CHAPTER II – THEORITICAL FOUNDATION ............................................................... 5

2.1 Brand Definition ........................................................................................................ 5

2.2 Ways to Build a Strong Brand ................................................................................... 6

2.3 Brand Equity ............................................................................................................. 7

2.4 Measuring Brand Equity ........................................................................................... 7

2.5 Brand Awareness ....................................................................................................... 8

2.6 MarkPlus Insight Observations ................................................................................. 9

CHAPTER III – RESEARCH METHODOLOGY ............................................................... 13

3.1 Interview .................................................................................................................... 13

3.1.1 Sampling ........................................................................................................ 14

3.1.2 Interview Design ........................................................................................... 14

3.2 Questionnaire ............................................................................................................ 15

3.2.1 Sampling ........................................................................................................ 15

3.2.2 Questionnaire Design .................................................................................... 16

3.3 Data Processing Method ............................................................................................ 18

CHAPTER IV – DATA ANALYSIS .................................................................................... 19

4.1 Interview .................................................................................................................... 19

vi

4.2 Questionnaire ............................................................................................................ 21

CHAPTER V – CONCLUSION AND RECOMMENDATION .......................................... 49

5.1. Conclusion ................................................................................................................. 49

5.2 Recommendation ....................................................................................................... 50

REFERENCES

ATTACHMENTS

vii

LIST OF FIGURES

Figure 2-1 Brand Equity Measurement ........................................................................... 7

Figure 3-1 Workflow ...................................................................................................... 13

Figure 4-1 The Recommended Hotel .............................................................................. 19

Figure 4-2 The Top of Mind Hotel among the Travel Agencies .................................... 20

Figure 4-3 Comparison between Male and Female about Recall among the Hotels in

Bandung ........................................................................................................ 24

Figure 4-4 Comparison between the Recall among the Hotels in Bandung and Age ..... 26

Figure 4-5 Comparison between the Recall among the Hotels in Bandung and

Occupation .................................................................................................... 29

Figure 4-6 Comparison between the Recall among the Hotels in Bandung and the

Origin of the Respondents ............................................................................. 31

Figure 4-7 Comparison between Gender and Their Familiarity with Grand Royal

Panghegar ...................................................................................................... 34

Figure 4-8 Comparison between Age and Their Familiarity with Grand Royal

Panghegar ...................................................................................................... 35

Figure 4-9 Comparison between Occupations and Their Familiarity with Grand

Royal Panghegar ........................................................................................... 36

Figure 4-10 Comparison between Origin and Their Familiarity with Grand Royal

Panghegar ...................................................................................................... 37

Figure 4-11 Comparison between Female in Different Ages and Their Familiarity with

Grand Royal Panghegar ................................................................................ 38

Figure 4-12 Comparison between Female in Different Jobs and Their Familiarity with


Figure 4-13 Comparison between Female in Different Places and Their Familiarity

with Grand Royal Panghegar ........................................................................ 40

Figure 4-14 Comparison between Male in Different Ages and Their Familiarity with


Figure 4-15 Comparison between Male in Different Jobs and Their Familiarity with


viii

Figure 4-16 Comparison between Male in Different Places and Their Familiarity with


Figure 4-17 Comparison between Students in Different Places and Their Familiarity


Figure 4-18 Comparison between Housewives in Different Places and Their Familiarity


Figure 4-19 Comparison between Entrepreneurs in Different Places and Their Familiarity


Figure 4-20 Comparison between Employees in Different Places and Their Familiarity


Figure 4-21 Comparison between Other Jobs in Different Places and Their Familiarity


ix

LIST OF TABLES

Table 2-1 Respondents of MarkPlus Observation ......................................................... 9

Table 2-2 Awareness towards the Hotels in Bandung among the EO ........................... 10

Table 2-3 Awareness towards Four and Five Star Hotels in Bandung .......................... 10

Table 2-3 Awareness towards Four and Five Star Hotels in Bandung (cont’d) ............ 11

Table 2-4 The Perception towards the Hotels in Bandung ............................................ 11

Table 2-4 The Perception towards the Hotels in Bandung (cont’d) .............................. 12

Table 4-1 Respondents’ Gender .................................................................................... 21

Table 4-2 Respondents’ Age ......................................................................................... 21

Table 4-3 Respondents’ Occupation .............................................................................. 21

Table 4-4 Respondents’ Origin ...................................................................................... 21

Table 4-5 The Hotel that Place in Respondents’ Mind .................................................. 22

Table 4-6 Brand Recall * Gender Crosstabulation ........................................................ 22

Table 4-6 Brand Recall * Gender Crosstabulation (cont’d) .......................................... 23

Table 4-7 Chi-Square Tests for Brand Recall * Gender ................................................ 23

Table 4-8 Correlations of Brand Recall * Gender ......................................................... 23

Table 4-9 Brand Recall * Age Crosstabulation ............................................................. 25

Table 4-10 Chi-Square Tests for Brand Recall * Age ..................................................... 25

Table 4-11 Correlations of Brand Recall * Age .............................................................. 26

Table 4-12 Brand Recall *Occupation Crosstabulation .................................................. 27

Table 4-13 Chi-Square Tests for Brand Recall * Occupation ......................................... 28

Table 4-14 Correlations of Brand Recall * Occupation .................................................. 28

Table 4-15 Brand Recall *Origin Crosstabulation .......................................................... 30

Table 4-16 Chi-Square Tests for Brand Recall * Origin ................................................. 30

Table 4-17 Correlations of Brand Recall * Origin .......................................................... 31

Table 4-18 Awareness of Hotel Panghegar ..................................................................... 32

Table 4-19 Awareness that Hotel Panghegar is Doing Rejuvenation .............................. 32

Table 4-20 Who Do You Know about the Changes From .............................................. 32

Table 4-21 The New Name for Hotel Panghegar ............................................................ 33

Table 4-22 The Correct Logo for Grand Royal Panghegar ............................................. 33

Table 4-22 The Correct Logo for Grand Royal Panghegar (cont’d) ............................... 34

xi

LIST OF APPENDIXES

APPENDIX A QUESTIONNAIRE

APPENDIX B LIST OF TRAVEL AGENCIES

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