EIGER is currently the most prolific Indonesian outdoor adventure equipment brand. The company, PT Eigerindo Multi Produk Industri, manufactures a wide range of adventure gear for mountaineering, rock climbing, and many other outdoor activities using the brand name EIGER. Founded in 1987, EIGER is now the top-of-mind brand for the Indonesian outdoor gear market. EIGER’s marketing strategy is one of the key successes of the brand in conquering the Indonesian outdoor brand market. It created a considerable entry barrier for foreign outdoor gear companies to establish their brand in Indonesia.
In 2018, the company started a new marketing campaign that would prepare the brand to penetrate the international market. The brand EIGER was set to be followed by a tagline “Tropical Adventure”. It was intended as the unique selling proposition for the brand to compete with other international outdoor gear brands as the brand specialized in tropical area adventures. However, up until 2021, the main market is still the vast number of Indonesian outdoor adventurers (Merdeka, n.d.).
As a veteran in the local outdoor gear market, EIGER has the largest marketing channels, as well as the most sophisticated product development process. The EIGER backpack product alone has an astounding 80% local market share for mountaineering backpacks (Julianti, 2010). The product is perceived to be the best Indonesian outdoor gear brand and is listed as the Top 250 Indonesian Original Brands (Produk Lokal Kualitas Internasional, 2015).
EIGER’s success as a local brand is an excellent case study and has been researched by many Indonesian students in various fields of study. This paper will examine EIGER’s online and offline channels, and reflect on the company’s marketing strategy. Then the paper will analyze how EIGER constructs its value proposition to have a solid position in the Indonesian outdoor gear market.
EIGER’s Marketing Strategy Analysis
The company relies heavily on O2O (Online-to-offline) strategy. The strategy is to communicate to potential customers through the company’s online channels, and then attract those customers to make purchases in their offline stores. Currently, the company has more than 350 stores all over the Indonesia archipelago. Each of the stores has its own social media channels to communicate the offerings. Normally, the customer will want to go to the nearest store to take a better look at the product before making a purchase. In term of a traditional marketing mix, EIGER’s marketing strategy can be examined as follow.
4P Analysis of EIGER’s Marketing Strategy
Product
EIGER products have a very positive perceived quality and are often considered as having the best quality for Indonesian outdoor gear brands. This was a result of very well-refined product development and quality control which can be traced back to the early days of the company. The company collaborates with many outdoor communities to test the quality of their new products and to promote the products early, even before they launch the product to the market.
Even though the online channels may be able to explain the product specification, usually the offline channel can communicate the product better. Outdoor gear usually is costly; demanded reliability and durability during rough outdoor environments, so customers usually want to have a guarantee that they will receive the best quality product. By examining the product at the physical store, customers can have a better look at the real product they are going to purchase.
Price
Another well-known reputation of EIGER, aside from it being the best local outdoor gear brand, is that it is usually the most expensive (Merdeka, n.d.). This can also be a strong statement from the company that they are not competing with other local outdoor gear brands. Instead, they are competing with other global brands. This may also add a prestige factor to the brand.
The price in each store may be different for the same product. Since Indonesia is a very large archipelago, the logistic costs for each store may vary significantly. Customers can choose to purchase online or offline based on the purchasing and delivery costs that they have to pay.
Promotion
Online channel is the main media to communicate offerings as well as other adventure-related content that aimed to gain more followers as a potential customer. EIGER has its main online channel, and each of its stores also has online channels that aimed to cover the operational area of the store. These create an extensive online presence on a national scale and a regional scale closer to the customers.
Place
The online presence is followed by a prime offline presence with more than 350 stores all over Indonesia. Each store can make its own promotion program that suits the most to the condition of the market around the operational area. Typically, EIGER’s marketing strategy involves the strategic placement of the stores in a strategic urban area.
EIGER Value Proposition
The company has been successful in establishing the brand as a quality product that provides reliable and durable outdoor gear for a tropical adventure. This is the main value proposition of the company as an outdoor gear manufacturer. It is then supported by the marketing strategy that adds another value to the products. The strong offline and online presence of the brand gives the impression that the products are close to the customers, and the quality products can be purchased easily. Outdoor activity lovers can find information about the products easily on many online channels and can make a quality guaranteed purchase at the offline store. The closeness to the customers is also emphasized by the company’s Business Development Manager (Prahadi, 2016).
Conclusion on EIGER’s Marketing Strategy
EIGER’s marketing strategy has given the brand a solid position in the Indonesian outdoor gear market as the brand with the best quality. The product quality, as the main value proposition, is supported by a strong online and offline presence, along with an effective O2O strategy, which brings a sense of closeness to the customers. Both of these values make EIGER becomes such a successful local brand.
Reference
Diva, F., & Priyadi, Y. (2020). Designing Business Models through a Combination of BMC and UML Methods at Eiger Adventure Store Bandung. INTENSIF: Jurnal Ilmiah Penelitian Dan Penerapan Teknologi Sistem Informasi, 4(2), 184–202. https://doi.org/10.29407/intensif.v4i2.14097 Juliyanti. (2010). Analisis Brand Equity Tas Ransel (Daypack) Merek Eiger (Studi Kasus Di PT.Eigerindo MPI, Bandung) (Thesis). Fakultas Ekonomi Universitas Kristen Maranatha. Merdeka, T. (n.d.). Eiger: Produk Kami Lebih Mahal Tapi Punya Nilai Lebih. Merdeka.Com. Retrieved June 18, 2021, from https://www.merdeka.com/khas/eiger-produk-kami-lebih-mahal-tapi-punya-nilai-lebih.html Prahadi, Y. Y. (2016, February 14). Ini Resep Eiger Kuasai Pasar. SWA.Co.Id. https://swa.co.id/swa/trends/marketing/ini-resep-eiger-kuasai-pasar Produk Lokal Kualitas Internasional. (2015, January 4). MedanBisnisDaily.Com. https://www.medanbisnisdaily.com/news/read/2015/01/04/138660/produk-lokal-kualitas-internasional/
