The Marketing Strategy Series 1: Strategi Up-Selling JCO Donuts and Coffee

Summary

In this video, Ika Febrilia and Said Maulana discuss the misuse of upselling strategies by the Indonesian donut brand J.Co, which has recently received halal certification from MUI. They explain upselling as a strategy where customers are encouraged to pay more for better or more substantial products. The hosts highlight the importance of transparency in upselling to build customer loyalty and discuss the negative impact of deceptive practices, citing consumer complaints and YouTube reviews as evidence.

Takeaways

• 🍩 J.Co Donuts is a well-known Indonesian donut brand with a presence in several countries and recently received halal certification from MUI.
• 📈 The brand has been operating for about 17 years and has over 400 outlets across Indonesia and other countries.
• 🔗 The discussion focuses on the misuse of the upselling strategy by J.Co Donuts, which led to a public complaint from a consumer.
• 💡 Upselling is a strategy where customers are encouraged to pay more to get a product with more features or quantity.
• 📚 According to marketing textbooks like Kotler and Keller, upselling is part of building consumer loyalty and encouraging repeat orders.
• 🔄 The difference between upselling and cross-selling is highlighted, where upselling involves offering more of the same product category, while cross-selling introduces different product categories.
• 🚫 The importance of transparency in upselling is emphasized; consumers should receive complete information about the offers to make informed decisions.
• 🙅‍♂️ Consumers have the right to refuse offers that do not meet their needs, and businesses should not force these upon them.
• 📉 The misuse of upselling by J.Co Donuts may have damaged customer loyalty and led to negative feedback.
• 🎥 There are videos on YouTube reviewing J.Co Donuts' offers, suggesting that the brand's approach to upselling might have been perceived as deceptive.

Q & A

Who are the hosts of the discussion in the transcript?

The hosts of the discussion are Ika Febrilia and her colleague Said Maulana.

What is the main topic of their discussion?

The main topic of their discussion is a viral issue related to a marketing strategy called upselling, specifically focusing on a well-known Indonesian donut brand, J.Co.

What is the significance of J.Co receiving a halal certification from MUI?

The halal certification from MUI is significant because it assures consumers, especially the majority Muslim population in Indonesia, that the products meet religious dietary standards.

How long has J.Co been operating and where are its outlets located?

J.Co has been operating for about 17 years and has outlets not only in Indonesia but also in countries like Singapore, Hong Kong, the Philippines, Kuala Lumpur, and Saudi Arabia.

What is upselling in the context of marketing?

Upselling in marketing is a strategy where customers are encouraged to pay more to get a product with more features or a larger quantity, with the belief that they are receiving greater value.

What is the goal of upselling according to the transcript?

The goal of upselling is to create interest and enthusiasm among consumers, with the hope that they will return to make repeat purchases, thus building customer loyalty.

What is the difference between upselling and cross-selling?

Upselling involves offering products within the same category but with increased quantity or features, while cross-selling involves offering different types of products that complement the original purchase.

Why did consumers complain about J.Co's upselling strategy?

Consumers complained because they felt deceived, implying that the upselling strategy did not build loyalty and was not transparent, leading to dissatisfaction.

What is the importance of transparency in upselling according to the discussion?

Transparency in upselling is crucial because consumers have the right to receive complete information about the options offered, understand what they are paying for, and have the right to refuse offers that do not meet their needs.

What are the potential consequences of misusing upselling strategies as discussed?

Misusing upselling strategies can lead to a loss of consumer trust, damage to brand reputation, and potential complaints or backlash against the brand.

What is the role of marketing management in addressing the issues raised by the misuse of upselling?

Marketing management plays a role in addressing these issues by ensuring that upselling strategies are implemented ethically and transparently, and by listening to consumer feedback to adjust strategies accordingly.

Outlines

00:00

🍩 Discussing Upselling Strategy in Donut Marketing

Ika Febrilia and Said Maulana discuss the viral marketing mix series, focusing on a specific upselling strategy used by J.Co Donuts, a popular Indonesian donut brand that has recently received halal certification from MUI. They explain that J.Co has been operating for about 17 years, has over 400 stores in Indonesia, and has expanded to other countries such as Singapore, Hong Kong, the Philippines, Kuala Lumpur, and Saudi Arabia. The discussion highlights the importance of product quality and meeting standards, especially the halal certification for the predominantly Muslim population in Indonesia. They delve into the concept of upselling, where customers are encouraged to pay more for better features or a larger quantity of the product. The goal is to build consumer loyalty and encourage repeat orders. The hosts also differentiate between upselling and cross-selling, explaining that upselling involves offering more of the same product category, while cross-selling introduces different product categories.

05:02

📢 Misuse of Upselling and its Impact on Consumer Trust

The discussion continues with a focus on the misuse of upselling by J.Co Donuts, which led to consumer complaints and a perceived lack of transparency. The hosts emphasize that consumers have the right to complete information about the offers and the option to refuse if they feel the offer does not meet their needs. They suggest that J.Co's upselling strategy may have been misapplied, causing it to fail in building consumer loyalty and instead leading to dissatisfaction. The conversation also touches on the importance of not forcing consumers into accepting offers and the need for brands to be transparent in their marketing strategies. The hosts conclude by mentioning that they will discuss this topic further in future marketing videos and hint at a collaboration in upcoming videos.

Keywords

💡Viral

Viral refers to content that spreads rapidly and widely on the internet, often through social media or word of mouth. In the context of the video, viral is used to describe the popularity and widespread discussion of certain marketing strategies and brand actions, such as J.Co's upselling strategy.

💡Marketing Mix

Marketing Mix is a set of tools or elements that a company uses to promote its product or service. It typically includes the 4 Ps: Product, Price, Place, and Promotion. The video discusses the Marketing Mix in relation to a complete product strategy, which is essential for understanding how brands like J.Co position themselves in the market.

💡Upselling

Upselling is a sales strategy where the salesperson encourages a customer to purchase a higher-priced item, a more profitable configuration, or additional services. In the video, upselling is discussed as a strategy that may be misused by brands, leading to customer complaints and affecting brand loyalty.

💡Certification Halal

Certification Halal refers to the certification that a product complies with Islamic dietary laws. In the video, J.Co Donuts' recent Halal certification by MUI (Indonesian Ulama Council) is highlighted, emphasizing its importance for Muslim-majority markets like Indonesia.

💡Brand Loyalty

Brand Loyalty is the customer's positive feeling towards a brand, leading to repeat purchases. The video discusses how the misuse of upselling can negatively impact brand loyalty, as customers may feel deceived and less likely to make repeat purchases.

💡Repeat Order

Repeat Order refers to customers making additional purchases from the same brand or business. The video mentions repeat orders in the context of upselling, where the strategy is intended to create interest and enthusiasm among consumers to encourage them to return for more purchases.

💡Cross Selling

Cross Selling is a marketing technique where a business offers additional products or services that complement the customer's initial purchase. The video differentiates cross selling from upselling, noting that cross selling involves offering different product categories, whereas upselling involves offering more of the same category.

💡Transparency

Transparency in business refers to the clear and open communication about business practices, including pricing and offerings. The video emphasizes the importance of transparency in upselling, stating that customers should receive complete information about the options they are being offered so they can make informed decisions.

💡Consumer Rights

Consumer Rights are the rights of consumers to be treated fairly and to have access to accurate information about products and services. The video discusses consumer rights in the context of upselling, noting that consumers have the right to refuse offers that do not meet their needs.

💡Complaint

A Complaint is an expression of dissatisfaction or protest about a product or service. In the video, the misuse of upselling by J.Co Donuts leads to consumer complaints, which is used as an example of how not to implement such strategies.

💡YouTube

YouTube is a video-sharing platform where users can upload, share, and view videos. The video script mentions YouTube as a place where reviews and discussions about J.Co's upselling practices are taking place, indicating the platform's role in consumer feedback and brand reputation management.

Highlights

Introduction of the discussion about viral topics after the Marketing Mix series.

Mention of discussing a strategy misused by a brand that led to an open letter from a consumer.

Review of upselling strategy from a well-known Indonesian donut brand, J.Co, which recently received halal certification from MUI.

J.Co has been operating for about 17 years and has over 400 stores in Indonesia and other countries.

The importance of halal certification for food products, especially in a predominantly Muslim country like Indonesia.

Definition of upselling as a strategy where consumers are asked to pay more for a product with more features or quantity.

The concept that upselling aims to create interest and enthusiasm among consumers for repeat business.

Differentiation between upselling and cross-selling, with upselling focusing on increasing the quantity or size of the same product category.

The misuse of upselling by J.Co, leading to consumer complaints and questioning of the brand's transparency.

The right of consumers to receive complete information about the options offered and to refuse offers that do not meet their needs.

The importance of transparency in upselling to build consumer loyalty and trust.

Discussion on the potential lack of transparency in J.Co's upselling strategy that may have led to its misuse.

Mention of YouTube videos reviewing J.Co Donuts' offers and the brand's response to consumer feedback.

Anticipation of future collaborations and discussions on marketing strategies in upcoming videos.

Emphasis on the right of consumers to receive comprehensive information and the option to decline offers.

The goal of upselling strategies to build repeat business and customer loyalty.

Transcripts

Oke ketemu lagi dengan saya Ika Febrilia

dan rekan saya Said Maulana

kita seperti biasa bu kita akan membahas

hal-hal yang lagi viral setelah kita

membahas tentang Marketing Mix series

lengkap ya produk promotion price juga

please terus juga kita kan membahas

salah satu strategi yang mungkin

disalahgunakan oleh brand sehingga apa

yang memunculkan surat terbuka dari

konsumen

mau coba nge-review strategi up selling

dari salah satu merek donat terkenal di

Indonesia yang juga baru mendapatkan

sertifikasi halal dari MUI yaitu J.Co ya

nah saya juga kalau Jco lovers pasti

udah tahu Ya kalau J Ini sebenarnya

sudah beroperasi selama kurang lebih 17

tahun dan sudah punya 400 gerai loh di

Indonesia Nggak cuma di Indonesia tapi

juga di negara-negara seperti Singapura

Hongkong Filipina Kuala Lumpur dan Saudi

Arabic dan dengan sertifikasi halal ini

sertifikasi halal ya jadi nggak perlu

khawatir lagi Bu apalagi di Indonesia

kan mayoritas muslim ya jadi nggak perlu

khawatir lagi untuk akhirnya

mempertanyakan lah ini halal atau enggak

sih karena sudah tersertifikasi dengan

baik seperti yang kita sudah pernah

bahas juga mungkin Said dan Soulmate

mungkin juga inget gitu ya bahwa

kualitas sebuah produk itu salah satunya

juga Dinilai dari seberapa mampu dia

memenuhi standar atau spesifikasinya dan

seperti yang kita tahu karena negara

kita mayoritas muslim maka untuk produk

makanan sudah pasti harus melalui

sertifikasi halal dulu dari Majelis

Ulama Indonesia Nah sekarang kita mau

bahas tentang tadi ya Said

penyalahgunaan strategi ya yang Said

pernah bilang sebelumnya yaitu tentang

strategi upselling sudah tahu belum sih

up selling itu apa Jadi gini sih itu

adalah di mana strategi konsumen

disuruh untuk membayar lebih untuk

mendapatkan produk yang lebih juga ya

gitu dari segi fiturnya atau pun dari

segi kuantitasnya yang mungkin nantinya

apa ya apa ya Ada kaidah yang mengatakan

kalau misalkan

customer gate customer gift more sama

dengan customer gatemore jadi walaupun

uang yang dikeluarkan lebih banyak tapi

konsumen nggak merasa rugi gitu ya

karena mereka beranggapan bahwa tadi

fitur jumlah ataupun Volume atau value

yang mereka peroleh juga lebih besar

Nah kalau kita cek di buku marketing

managementnya kotler dan Keller seperti

biasa gitu ya kita mengacunya ke sana

maka pembahasan mengenai up selling ini

sebenarnya masuk ke dalam pembahasan

mengenai strategi yang dilakukan

perusahaan untuk membangun loyalitas

loyalitas membangun loyalitas konsumen

jadi salah satu strategi yang digunakan

dengan abseling ini sebenarnya ya jadi

dengan harapan strategi itu bisa

menciptakan yang namanya interest dan

antusiasme dari konsumen sehingga mereka

akan datang kembali untuk melakukan yang

namanya repeat Order

jadi kalau misalnya mereka beranggapan

oh kemarin di sana Pas beli dapet lebih

banyak loh gitu ya belinya berapa tapi

kayaknya dapat lebih banyak volumenya

lebih besar sizenya lebih besar

value-nya juga lebih banyak misalnya

gitu jadi harapannya nanti Saat konsumen

mau melakukan pembelian ulang dia akan

datang ke tempat yang sama akan

melakukan yang namanya repeat order atau

repeat

penawaran-penawaran seperti ya kayak

misalkan kayak di kita ke minimarket

pulsanya juga mas Nah itu termasuk

akselin nah tapi perlu dibedakan nih

syair ada yang namanya absolik ada juga

yang namanya Cross apalagi jadi

perbedaannya kalau up selling itu

Konsumen akan ditawari produk yang

kategorinya sama tapi menambah jumlahnya

jumlah atau kuantitas itu abselingnya

jadi produknya sama gitu ya tapi kalau

misalnya Cross selling

itu Said akan ditawari jenis produk yang

berbeda jadi kayak misalnya tadi

ditawarin pulsa yang mungkin habis

belanja yang lain gitu ya tapi kemudian

ditawarin pulsa itu termasuk ke dalam

Cross selling tapi kalau konsumen merasa

Mungkin yang tadi ya kita balik lagi ke

J.Co kan

up sellingnya disalahgunakan konsumen

merasa dibohongi berarti strategi ini

nggak bisa membangun loyalitas konsumen

tujuan dari penerapan strategi ini

menjadi nggak sesuai target terus juga

menjadikan

donat J.Co konsumen tuh jadi pada

komplain kepada J.Co tersebut Nah itu

gimana ya inilah pentingnya transparansi

ya jadi konsumen itu berhak mendapatkan

informasi yang lengkap

mengenai opsi yang ditawarkan gitu jadi

dia tuh tahu kalau misalnya dia harus

bayar lebih mahal tandanya dia juga

mendapatkan value yang lebih banyak

kemudian Konsumen juga selain Dia berhak

untuk mendapatkan informasi mengenai

opsi atau penawaran yang lengkap dia

juga punya hak untuk menolak gitu ya

menolak kalau misalnya penawaran yang

diberikan tuh mungkin konsumen rasa

kurang sesuai dengan kebutuhan

juga tidak boleh memaksa gitu ya

konsumen berhak untuk menolak Iya

sepakat banget sih Bu Iya jadi berarti

mungkin yang digunakan J.Co kemarin

abselingnya agak salah digunakannya

ya mungkin Apa agak kurang transparansi

mungkin ya Dan kalau kita lihat ada

beberapa video saat di YouTube yang

secara khusus ya mereview gitu ya

penawaran-penawaran yang dilakukan oleh

J.Co Donuts

Nah mungkin itu kita diskusi kita

cukupkan dulu ya

kita akan ketemu lagi di video-video

marketing berikutnya Soulmate tunggu

kita gitu ya Oke nanti kita akan

berkolaborasi di video-video berikutnya

oke