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.