PT. Erindo Utama, a sole distributor of Ericsson's products in Indonesia, is contemplating the launch of ACD system. The company has requested Group V -September 1990 IPMI MBA Students to do a market survey. This report on the study is intended to quantify the market potential for the ACD system in Jakarta from 1991 to 1995 and to recommend a marketing approach. This report is submitted to Mr. Martin Tizzard on August 12, 1991.



The result of the study shows that the potential market for ACD exists. Based on the market segmentation of PT. Erindo Utama, the potential market is contributed basically by the small and the medium market segments. The potential demand from these market segments is 5 units or 228 extensions in 1991, 8 units or 352 extensions in 1992, 9 units or 372 extensions in 1993, 12 units or 496 extensions in 1994 and 10 units or 456 extensions in 1995. The large market segment, in our findings, has no potential. This finding is based on the calculation of potential market from the growth of telephone lines. The small market segment has about twice as many in terms of units as in the medium segment. Meanwhile, the medium market segment has more than twice the number of lines than the small segment.



The calculation on the potential market of ACD shows that the medium market segment provides the best market opportunity due to the extension size. The competition in this market segment is based on product-related factors. Our findings also indicate that customers are not very price sensitive, and consider product quality, features, and ease of operation more important than price. Since Ericsson's product has been associated with quality, the opportunity of success in this market segment exists.



Consumers perceive the ACD features differently from rather important to very important. Reducing waiting time and distribution of calls are the salient features. Recording handling of calls and recording low and peak hours receive less attention by consumers compared to other ACD features. Besides the ACD features, consumers claimed that they need some features which could be fulfilled by PABX system such

as:

1. Direct recording on pulse and call charge

2. Password protection.

3. Call pick up and paging capability

4. Conference system



Some additional features which may not be provided by PABX are:

1. Ability to make hard copies by connecting the unit to printer,

2. Recording outgoing calls.



Different business industries perceive the importance of ACD features differently. Among the surveyed industries; hotels, distributors, banks and transportation companies consider ACD features crucial to their business activities. However, we recommend PT. Erindo Utama to focus its marketing attention on banks, transportation companies, dealers/ distributors, hotels, travel agents, airlines and newspaper, in that order, since these industries are found to be potential.



Consumers perception of ACD price is close to that of PABX. They value it as ranging from Rp. 500,000 to Rp. 750,000 per extension and this should become the basis of ACD pricing strategy.



We found that the predominant purchasing decision of product such as ACD lies with the managing directors and owners of the prospective companies. Essential product information is usually conveyed through trained salesmen and brochures. Hence, we recommend placing emphasis on the brochures and well trained sales force to influence technical and purchasing division, after which they should attempt to deal with the decision maker in the higher level of management of the prospective companies.



In advertising, PT. Erindo Utama should increase the use of advertisement through newspaper to gain customers' awareness in the private business sector. This advertisement should stress on product strengths and features needed most by customers. Other media of advertising for considerations are exhibitions, and seminars.

As one of the supporting factors, after sales service is very crucial to be considered by PT. Erindo Utama because it affects the brand image and brand selection of Ericsson. Discounts and warranty need to be revised for competitiveness in the industry. We suggest that Erindo provides 10 to 15% discounts and 1 year after installation warranty.



Finally, we hope that the management of PT. Erindo Utama will find the research findings useful in the determination of whether or not to launch the ACD system and in setting the appropriate marketing strategy.



Research location: PT Erindo Utama

Supervisor: Adiprigandari Adiwoso Suprapto, PhD.

Accepted: 1991.