Inovation and Customer Satisfaction Based on ICSA Index

Inovation and Customer Satisfaction
Based on ICSA Index
Study Case : Panadol Hijau

I. Introduction
Both companies engaged in manufacturing or services to create a product that will be marketed to customers. The Company will create a brand before marketed to customers. Brands in the practice of trade in goods and / or services have a strategic role. The strategic role of brands can be viewed in the context of the function itself brands. Brands in the practice of trade in goods or services have a function in building the image, quality and promotion of a product.
Customers will buy a particular product / service by holding a range of goods to be purchased. Range of goods / services to be purchased by paying attention to brand. By choosing a particular brand customers think of the brand reflects the quality.
Companies that require commercial or consumer subscribers in order to continue running. The Company will attempt to market the product to the customer through marketing channels that have been made by the company. Marketing channels aimed for customers' needs for goods / services can be channeled quickly. In addition to marketing channels, things that need to be taken by the company is customer satisfaction, therefore the company needs a survey to determine how far the level of customer satisfaction of similar products in the market.
In writing this refers to the customer satisfaction survey conducted by SWA Magazine and Frontier Consulting Group, which was published in an edition No.19/XXV/2009 SWA magazine. The writing of this review why Panadol Green can win customer satisfaction survey conducted by SWA Magazine and Frontier Consulting Group sufficiency in the category of cough and cold medicines.

II. Innovation, Product, Marketing, and Customer Satisfaction
According to Ferrell, Hirt, and Ferrell (2008), the product either in the form of goods and services, or a combination of both, "a complex mix of tangible and intangible attributes and benefits That Provide satisfaction." Definition of Ferrell may mean that a product is a complex mixture of something real and unreal that can provide a satisfaction and benefits. Kottler (1980) says that the product is anything that can be offered to the market to be noticed, bought, used, or consumed; term covers products of physical objects, services, personalities, places, organizations, and ideas.
The process of creating a product called the production process. Simple production process starting from collection of raw materials, continued to processing, naming, packaging and finally produce a product that is ready for market.
Any manufacturing or service companies in creating a new product, do the following stages: 1) the development of ideas, 2) screening new ideas, 3) business analysis, 4) product development, 5) the marketing test, 6) commercialization. (Ferrell, 2008)
Development ideas come from marketing research, technicians and external sources, such as advertising agencies and management consultants. At the screening stage of new ideas, marketing manager must be able to view the resources inside the company and objectively assess the company's ability to produce and market the product. No less important aspect in the screening phase of new ideas is the desire of society, changes in technology, social trends, and political, economic, and environment into consideration. The new product can be successful if: the new product will meet or overcome the problem better than previous products, or new products can add that there are variations in the market, so that may mean that a product must be able to innovate so that products can survive in the market. In the business analysis that the main focus is the assessment of product compatibility and the potential benefits, how the new product can affect sales, costs, and company profit. Test marketing is a new product launch in a limited area so that they can present their market potential. Marketing tests aim to identify weaknesses and try to overcome these weaknesses before the actual launch. Commercialization is the introduction of the use of marketing strategies and launching products for commercial success. (Ferrell, 2008)
Naming, packaging, and labeling can be used to identify products or differentiate products with other products. Naming is a process of naming and product identikasi. Naming can be a symbol, design or combination of both to become the identity of the product and can be distinguished from other products. Process external packaging or container that describes the product, customer habits and influence in buying decisions. Labeling presented the main information on the packaging, and always berkaita with packaging. Labeling is usually required by law, which includes nutrition facts, contents or contents, instructions for use, indications of usage, address and toll-free telephone.
A good product should have the brand, packaging, taste different from other similar products. This is related to the senses to which every human being. Human senses can detect that the perception of these products can begin. Differences in product quality that is perceived by the senses can help a product survive in competitive markets, especially if the product creates a unique sensation. (Solomon, 2009).
Marketing (Marketing) can be interpreted as a process of identifying and finding people with social needs. Marketing can also be defined organizational function and a set of processes for creating, communicating, and delivering value to customers and mengkelola good relationships with customers that will provide benefits to companies and decision makers (Kottler and Keller, 2009), so that from the two above definitions of marketing 6 has an important point, ie, the process of identify, discover, create, communicate, distribute, and provide benefits. Based on Kotler and Keller (2009), marketing management is the art and science of choosing target markets and acquire, retain, and grow customers through the creation, delivery, and communicating superior customer value.
Inside there is the marketing term that can mean the market has traditionally been a meeting place for sellers and buyers and make buying and selling goods. Market in the sense that now is seen as existing and potential customers, therefore the company should be able to retain existing customers and find potential customers. (Kotler and Keller, 2009)
Companies in the marketing of a product should be able to determine the target, position and market segments. The first step should be done is to divide the market into several segments, after it decided to target market segments in which to see who can produce the greatest opportunities, so it can determine the position of a product in the eyes of customers. (Kotler and Keller, 2009).
Marketing plan is the central instrument for directing and coordinating marketing efforts. Marketing plan strategy can be interpreted as the display target markets, corporate value propositions, based on the best market opportunities, (Kotler and Keller, 2009). Companies that have a good marketing strategy will dominate the market, as examples of companies that have good marketing strategies, among others, Nike, Sony, Nokia, Starbucks, Wal-Mart, Mc Donald's and the Ritz Carlton.
Market oriented companies are companies which try to meet the needs of the market. Market orientation is an organizational perspective that encourages the three main aspects:
1. Market intelligence gathering efforts in a systematic way with the main source of customers and competitors.
2. Dissemination of market intelligence to all units / departments of the organization.
3. Organization coordinated and comprehensive response to market intelligence.
Market orientation helps the management in identifying the unique capabilities and customers who demand value can be aligned with these capabilities. Successful market-oriented strategy would lead to superior performance, as produced by a number of leading companies such as Dell Computer, Singapore airlines, Tiffany and Company, and Wall-Mart. Market orientation is a combination of cultural commitment to customer value and superior value creation process for consumers. Thus the focus on customer needs (customer focus), competitor intelligence, cooperation, and cross-functional involvement. Successful implementation of market orientation, supported also by the ability to identify and expand its unique capabilities. (Fandy, Yanto and Anastasia, 2004)
Products produced by companies either manufacturing or service that seeks to meet the needs of customers so that customers will be satisfied. Generally, the customer is someone who identifies a need or desire. Customers can also be an institution or organization or group. Can be concluded that the product should be able to meet the needs of both individual customers, groups, institutions or organizations.
Satisfaction can be defined generally as a person's feelings of satisfaction or disappointment resulting from comparing the performance of the product (product advantage) with the expected (Kotler and Keller, 2009). Thus, customer satisfaction can be interpreted as consumers' feelings of satisfaction or disappointment resulting from comparing the quality of the product with the quality expected by consumers. Customer assessment of product advantage depends on various factors, particularly customer loyalty to the brand product. Customers have the perception of the products that have a well-known brand that has been quite good compared with branded products that do not already have.
Customer / people who are dissatisfied can perform four different actions. First, the apathy and resignation, forced to continue buying a particular brand that had been purchased because the customer has no other choice. For example, although many customers complained of the quality premium gasoline, most consumers still buy it, and only a small fraction of Premix or switch to another station from another company, because its price is much more expensive. Second, customers who complain, either through the facilities of the consumer voice or media. Characteristics of these customers are still buying the product, hoping no improvement. Third, many customers who are not direct acts of protest but with saying goodbye to the brand that had been bought and switch to another brand. Fourth, to protest loudly and become terrorists who sowed the complaint, even hatred can be judged against brands that have been disappointing. In the fourth type, the competitors will take advantage of spreading the evil terrorists who liked the product or brand to brand kedigdayaan eroded the company's products we (SWA Magazine, 2009).
Many companies have systematically and periodically measure how well the company can serve customers, identify the factors will increase customer satisfaction and will make changes to the operations and marketing. Companies should measure customer satisfaction periodically because of the note by the customer is just how these products can satisfy them. High levels of customer satisfaction will create loyal customers / loyal, so that it will buy more new products being offered by the company and updating older products. Increasing customer satisfaction will increase revenues and reduce risk in capital markets. (Kotler and Keller, 2009). Satisfied customers will tell their satisfaction to the relatives and friends, so will reduce the cost of company promotion and will enhance the company's reputation so that sales will increase and the company owners or shareholders will be satisfied.



III. Customer Satisfaction Measurement
III.1. Viewing from another country.
The concept of measuring customer satisfaction with the national scale was first performed in Sweden in 1989, with the name of the Swedish Customer Satisfaction Barometer (SCSB). SCSB was developed by Claes Fornell, Claes Fornell establish where Claes Fornell International.
The concept of customer satisfaction in the United States the first time there in 1994. The concept of satisfaction is better known as the American Customer Satisfaction Index (ACSI), which Claes Fornell International which works with Michigan Ross Business School and the American Society of Quality interviewed 80,000 citizens of the United States to determine their satisfaction of products and services or government services. Companies surveyed 200 companies reached with 43 industries and 10 economic sectors. Measurements conducted every three months and every industry will be selected by Roling. ACSI uses two complementary methods: interviewing the customer and economic modeling. ACSI model is a causal model of customer satisfaction-index triggers the left side (customer Expectations, perceived quality and perceived value), satisfaction ACSI middle, and output on the right side (customer complaints and customer loyalty, including customer retention and price tolerance). The index is a measure of multivariate components are then weighted to questions in the model. Modeling and survey methodology to calculate the power index on the left side of the component on the right side. By looking at the indices and impacts, users will be able to determine if the trigger and improved customer satisfaction will have a positive impact on customer loyalty.
European continent has the satisfaction measurement model called the Extended Performance Satisfaction Index (Epsi). This model is similar to the model used in Sweden, which means that this model is similar to the model in the United States. European Epsi model suggests that customer complaints are not part of the master model.

South Korea satisfaction measurement model known as the National Customer Satisfaction Index (NCSI). The survey involved 60,000 respondents and covers 37 industries and 200 companies. The method used the same method used in Sweden and the United States. This model also connects consumer satisfaction (NCSI) to consumer behavior (consumer complaints and customer loyalty). Consumer loyalty can be referred to the possibility of repeated purchases or price tolerance.
Singapore model known as the Customer Satisfaction Index of Singapore (CSISG). The survey involving around 10,000 households and 2,000 tourists to the relevant sector.
New Japanese models exist in the year 2009, with Japanese names Customer Satisfaction Index (JCSI). This Japanese model does not differ greatly from the Swedish model, only the Japanese model was started using respondents from the internet, while also measuring word of mouth and loyalty.

III.2. Customer Satisfaction Measurement
Overall customer satisfaction is the main indicator of progress in relation to the behavior of firms and economic consequences of profitable firms (Anderson, et al. 2007). Customer satisfaction can be measured in various ways value satisfaction score, perceived quality satisfaction score and best score. Perceived score is one of the best marketing constructs that have not been much explored in depth. The more ironic because a lot of marketing literature and the organization's mission statement which placed it as one organization's strategic objectives. Research undertaken two marketing experts from the University of Western Australia, Sweeney and Soutar (2001) in Anastasia et al (2004) seeks to develop 19 items measure customer perceived value. This scale was developed based on the context of retail purchase situation to determine the values of consumption that leads to the attitudes and buying behavior. According to Sweeney and Soutar in Anastasia et al (2004), consisting of 4 dimensions of the main aspects:
1. Emotional value, ie the utility that comes from feeling or affective / positive emotions arising from consuming the product.
2. Social values, ie the utility gained from the ability of products to enhance self-concept of the social consumer.
3. Quality / performance value, namely utility dididapatkan of product cost reduction due to short-term and long-term costs
4. Price / value for money, ie the utility gained from the perception of the quality and performance expected of the products
Marketers are expected to always give value to each product or service it markets. Focus on customer value has been accepted as a concept that can drive corporate performance. Companies spend a lot of money each year to improve consumer perception of value that existed at their brand. Thus very important for companies to know with certainty how the role of perceived value and the factors determining it. (Fandy, Yanto and Anastasia, 2004).

IV. Panadol Green Being Number One in Category Cough and Flu In ICSA 2009 event.

IV.1. Overview About ICSA.
Indonesian Customer Satisfaction Award (ICSA) is an award event to customer satisfaction (customer satisfaction). ICSA began in August 1999 by SWA Magazine by Frontier Marketing and Research Consultant. Conducted a national survey covering 19 139 industry or product / brand found in relatively high levels of satisfaction.
Given ICSA performed routinely every year, brings positive effects for the development of business in Indonesia. The positive effects of the ICSA, among others:
1. The existence of customer satisfaction have become the working parameters of many companies.
2. More and more companies in Indonesia are thinking about ways to improve customer satisfaction and well-planned strategic

IV.2. Panadol Green Being Number One Products Cough and Flu can Satisfying customers in the year 2009
From customer satisfaction survey conducted by SWA Magazine and Frontier Marketing and Research Consultant, Panadol Green became a champion for the category of cough and cold medications (see table). Achieving the highest levels is possible because Panadol Green has increased almost uniformly in all indicators of assessment, ie quality satisfaction score, Value satisfaction score, best score and perceived expectation score.
Table. ICSA 2009 Flu and Cough Medicines
No Brand Adjusted TSS
Brand Share QSS PBS expectation VSS
1 Panadol Cold & Flu 6:10% 4089 3913 4072 3869 3990
2 Neozep 9.70% 3968 3876 3963 3758 3895
Flu and Cough Bodrex 3 7.50% 4017 3832 4004 3525 3853
4 Decolgen 9:00% 3887 3795 3913 3656 3817
5 Procold 7:30% 3951 3812 3858 3572 3803
Source: SWA Magazine, N0.19/XXV
Panadol brand has long been present in Indonesia since the 1970s. Panadol drugs are manufactured in Indonesia by PT Sterling Products Indonesia (SPI). At first, known as Panadol analgesic drugs intended to relieve pain and fever in the head. In this category are highly developed in the pharmaceutical market, so many companies that play in this category, with a total of more than 140 brands. Can be concluded with a rather large number of companies in this category then the company can not expand anymore and just steal each other brand market.
PT Sterling Products Indonesia Panadol start thinking about product innovation in 2000. The background of these innovations originated from research conducted by PT Sterling Products Indonesia who noted that the tendency of people suffering from the flu will eventually suffer from coughing too. In general people who suffer from colds and coughs will consume two types of drugs, ie drugs for cough and colds. Sterling Products Indonesia PT finally issued a new product innovation called Panadol Green to overcome the problem of flu and cough. Panadol Green also raises another benefit that is not cause drowsiness so it is easy for employees suffering from flu and cough can continue working in that target market pekerjaaannya Panadol Green is people who have busy and people do not want to interfere with the flu and cough their activities.
The main strength of the Green Panadol can penetrate such markets; innovative products, under the umbrella brand Panadol, and always perform a customer satisfaction survey once every two months. Panadol Green tried to market the product with the market segment of people who work.
Distribution of green Panadol focuses more on the modern market and the pharmacy (the modern channel), arguing further facilitates the process control and marketing.
There are several steps Panadol Cold and Flu to satisfy the customer:
1. Maintaining product quality meets international standards, because Panadol is an international brand that has a standard for drug safety in accordance with international standards.
2. Maintain availability of product on the market, especially in the modern channel, and continue to improve the availability of products in traditional markets.
3. Consistently position ourselves in a way keeping with the true image through television ads and campaigns to consumers.
4. Once every two months conducting surveys of customer satisfaction in several major cities to identify consumer desires
5. Provides a variety of variants, ranging from Panadol for children up to adults
Based on table 1 can be seen that the highest customer satisfaction will be held by Green but the brand Panadol share held by Neozep. Neozep Forte has a brand share of 9.7% while 6.1% Green Panadol. Judging from the results of the survey Neozep Forte still has brand positioning in the market, so it can be concluded that although the Green Panadol has total satisfaction is higher than Neozep can not beat the brand share and therefore Neozep Panadol Green must develop and improve existing marketing strategy .

V. ICSA Weakness Factors
According Istijanto as SWA is posted on facebook, there are several factors ICSA weaknesses, among others:
1. Surveys were conducted in bulk, so that each product in each category can not compare apple to apple, because there are differences in expectations as determined by the brand. For example, if I want to buy a car, my expectations would differ if I want to buy another brand. There is a possibility of a survey which studied a lot of categories would make the respondent was forced to look for similarities. Thus, there is specificity or differentiation of certain brands that are not accommodated in assessing the respondent, and this is precisely the important points for the expectations of consumers.
2. ICSA survey using a scale of 1-5 by the ICSA survey therefore giving less flexibility to customers to rate. Satisfied customers will choose a score of 4, because the value of 5 was too perfect, while a score of 3 is too bad. Average value would dwell on the 4th. In fact, the index was also impressed forced to make the numbers behind the comma into three digits. Impact, the difference in value Customer Satisfaction is less able to show actual differences.






VI. Cover
VI.1. Conclusion
- ICSA is one of customer satisfaction surveys that exist in the world and especially in Indonesia.
- ICSA review of the Total Satisfaction Score, which include; quality satisfaction score, perceived best score, score and expectation value of satisfaction score.
- With the ICSA it will push customer satisfaction to the working parameters of many companies and will be more and more companies are thinking about customer satisfaction is strategically planned.
- The success of Green Panadol become number one in the ICSA in 2009, caused because Panadol Green has increased almost uniformly in all indicators of valuation, namely quality satisfaction score, Value satisfaction score, best score and perceived expectation score.
- Panadol green product innovation is conducted by Sterling Products Indonesia PT. This innovation process begins with the stages of creation of new products; 1) the development of ideas, 2) screening new ideas, 3) business analysis, 4) product development, 5) the marketing test, 6) commercialization. The sixth stage is carried out properly by the PT Sterling Products Indonesia in creating green Panadol. originated from research conducted by Sterling Products Indonesia PT who noted that the tendency of people suffering from the flu coughs will eventually suffer as well.
- The main strength of the Green Panadol can penetrate such markets, product innovations, under the umbrella brand Panadol, and always perform a customer satisfaction survey once every two months.
- Distribution of green Panadol focuses more on the modern market and the pharmacy (the modern channel), arguing further facilitates the process control and marketing.


VI.2. Suggestion
- My advice for Panadol Green who obtained a high index value, do not just look at one aspect of measurement, because customers might be satisfied today because customers are not familiar with other products. By contrast, if customers already familiar with other products, might be able to shift their satisfaction.
- In general, there should be no improvement survey methods. Most importantly, companies must dig deeper. So instead of changing his ICSA, but companies should be more active in finding out why my index go down or up. It is to be sought answers.
- Customer satisfaction should be the company's objectives and not merely an attempt to defeat competitors. This is because customer satisfaction is the strength to be able to have a brand positioning in the market.

Bibliografi

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