i FORMULATING BUSINESS STRATEGY TO GAIN SUSTAINABLE BRAND BUSINESS FOR OMG (OH MY GLAM) FINAL PROJECT In partial fulfilment of the requirements for the master’s degree from Institut Teknologi Bandung By AYU TARANTIKA INDRESWARI Student ID: 29322090 INSTITUT TEKNOLOGI BANDUNG September 2024 (Master of Business Administration Program) ii ABSTRACT FORMULATING BUSINESS STRATEGY TO GAIN SUSTAINABLE BRAND BUSINESS FOR OMG (OH MY GLAM) By Ayu Tarantika Indreswari Student ID: 29322090 (Master of Business Administration Program) OMG is an emerging beauty brand that sells cosmetics make up and skincare. OMG brand born to serve the lower socio-economic segment, offering high-quality beauty products. OMG believe that beauty plays important role in women’s life, increase their self- esteem, boost their confidence and leads them to achieve their dream. The purpose of OMG is to ensure all women in any background can still take care of their beauty by riding on the latest beauty trends without sacrificing their budget with ‘beauty that never fade’ campaign. As emerging brand with number one growth brand in lip make up OMG face fierced competition with numerous local and Chinese newcomers vying for consumer attention. As new comer, OMG brand have to create differentiation strategies in communicating products, establish a unique value proposition, and define brand identity. In analysing way to find OMG ways for sustainable business, the author using indepth interview to manager level. The findings show that consumers take important roles and hold biggest bargaining power followed the capability of doing innovation in all marketing mix especially on product and promotion.The framework used for the strategy improvement is internal analysis (STP, Marketing Mix, Product Life Cycle Strategy, Ansoff and Agile Organization) and external analysis (PESTLE, Porter’s Five, Competitor Analysis). Based on the findings and the analysis through scenario planning, new strategy implementation in marketing mix plan for 4 years is formulated to achieved sustainable business Keywords: beauty brand, product lifecycle, sustainable business, scenario planning, marketing strategy, internal analysis, external analysis, implementation plan iii ABSTRAK PEMBUATAN STRATEGI BISNIS UNTUK BISNIS YANG BERKELANJUTAN JENAMA (STUDI KASUS OMG) Oleh Ayu Tarantika Indreswari NIM: 29322090 Program Studi Magister Administrasi Bisnis OMG adalah jenama kosmetik baru yang menjual make up dan produk perawatan kulit. Jenama OMG lahir untuk melayani segmen sosial ekonomi bawah, menawarkan produk kecantikan berkualitas tinggi. OMG meyakini bahwa kecantikan berperan penting dalam kehidupan wanita dalam meningkatkan harga diri, kepercayaan diri dan menuntun mereka untuk mencapai impian mereka. Tujuan dari OMG adalah untuk memastikan seluruh wanita dengan latar belakang apapun tetap dapat menjaga kecantikannya dengan mengikuti tren kecantikan terkini tanpa mengorbankan anggaran dengan kampanye ‘Beauty Never Fade’. Sebagai merek baru dengan pertumbuhan merek nomor satu di bidang riasan bibir, OMG menghadapi persaingan yang ketat dengan banyak pendatang baru lokal dan China yang berlomba-lomba untuk mendapatkan perhatian konsumen. Sebagai pendatang baru, merek OMG harus menciptakan strategi diferensiasi dalam produk komunikasi, dan penawaran produk yang unik. Dalam analisis cara OMG memiliki bisnis berkelanjutan, penulis menggunakan metode wawancara mendalam dengan tingkat manajer ke atas. Dalam hasil penelitian, ditemukan bahwa konsumen mengambil peran penting dan memegang posisi tawar terbesar diikuti kemampuan melakukan inovasi pemasaran terutama pada produk dan cara promosi. Kerangka penelitian yang digunakan untuk perbaikan strategi adalah analisis internal (STP, Marketing Mix, Product Life Cycle Strategy, Ansoff dan Agile Organization) dan analisis eksternal (PESTLE, Porter's Five, Competitor Analysis). Berdasarkan temuan dan analisis melalui perencanaan skenario, dirumuskan implementasi strategi baru dalam rencana bauran pemasaran selama 4 tahun untuk mencapai bisnis yang berkelanjutan. Kata kunci: merek kecantikan, siklus hidup produk, bisnis berkelanjutan, perencanaan skenario, strategi pemasaran, analisis internal, analisis eksternal, rencana implementasi iv DECLARATION OF NON -PLAGIARISM Date: 27 July 2024 Name: Ayu Tarantika Indreswari Student ID: 29322090 Signed. Ayu Tarantika Indreswari Plagiarism is: Plagiarism is presenting someone else’s work or ideas as your own, with or without their consent, by incorporating it into your work without full acknowledgement. All published and unpublished material, whether in manuscript, printed or electronic form, is covered under this definition. Plagiarism may be intentional or reckless, or unintentional. Under the regulations for examinations, intentional or reckless plagiarism is a disciplinary offence. (Oxford, 2019) I declare that materials presented in this Final Project are my own work and do not involve plagiarism. Should I do plagiarism in this Final Project, hereby I am willing to accept any consequences determined by the school. Plagiarism is considered as the act of dishonesty and a breach of academic ethics in which strongly against the school’s policy and regulation. v VALIDATION PAGE FORMULATING BUSINESS STRATEGY TO GAIN SUSTAINABLE BRAND BUSINESS FOR OMG (OH MY GLAM) LIDATION PAGE By Ayu Tarantika Indreswari Student ID: 29322090 Master of Business Administration Program Institut Teknologi Bandung Approved Date: 27 July 2024 Supervisor, Yos Sunitiyoso, PhD 19780192009121003 (Nila Armelia Windasari, PhD) Co - Supervisor, Ir. Hasnul Suhaimi, MBA. (Nila Armelia Windasari, PhD) vi FINAL PROJECT GUIDANCE Unpublished masters’ final project is registered and available in the Library of Bandung Institute of Technology, and is open for public, provided that the author owns the copyright in accordance with the intellectual property rights that are applicable in the Library of Institut Teknologi Bandung. Bibliographical references are allowed to be use in a limited manner, however the citation and summarization can only be proceeded upon the author’s permission and must include the scientific norm of stating this final project as the source. This final project has to be cited as: Indreswari, A.T. (2024): Formulating Business Strategyt to Gain Sustainable Brand Business for OMG (Oh My Glam), Masters Final Project, Institut Teknologi Bandung. Reproduction or publication of parts or whole of the final project must be under the consent of the Head of Graduate School, Bandung Institute of Technology. vii ACKNOWLEDGEMENT Alhamdulillah, I praise Allah who make me blessed enough to get this done, I will make the journey as an unforgettable memory that I was able to get through this and finally finish. I am speechless enough to write gratitude to everyone (you know who you are) that support and encourage me to make this happen. Just alhamdulillah... alhamdulillah… and hopefully through this thesis may impactful to brand business. Jakarta, July 2024 viii TABLE OF CONTENTS I. Introduction ……………………………………………………………………………… 1 I.1 Background ………………………………………………………………………. 1 I.2 Company Profile………………………………………………………………..... 3 I.2.1 Paragon Corp…………………………………………………………………… 3 I.2.2 OMG Brand……………………………………………………………………... 4 I.3.I Business Issue…………………………………………………………………... 5 I.3.2 Problem Statement …………………………………………………………….... 7 I.4 Research Objectives ……………………………………………………………... 8 I.5 Research Questions ……………………………………………………………… 8 I.6 Research Scope and Limitation ………………………………………………….. 8 II. Literature Review…..…………………………………………………………………… 9 II.1 Theoretical Foundation…………………………………………………………... 9 II.1.1 Marketing Definition …………………………………………………………... 9 II.1.2 Brand and Branding Strategy …………………………………………………. 9 II.1.2 Product Lifecycle……………………………………………………………..