A Proposed Business Model Innovation Using Blue Ocean Strategy Approach for Kiumarket in The Post-Pandemic Era

Abstract

Kiumarket, a local brand in the home fragrance industry, encountered significant challenges in the evolving post-pandemic market landscape. Known for its diverse range of aromatic products, including scented candles, diffusers, and sprays, Kiumarket faced declining sales due to a shift in consumer habits, as people began spending less time at home. The market also saw an influx of new competitors, leading to increased competition and necessitating a strategic reevaluation of Kiumarket’s product offerings and pricing strategies. Furthermore, changing consumer preferences towards specific scents and qualities demanded a more targeted approach to Kiumarket’s product range. The research aimed to address these challenges by exploring effective strategies that would enable Kiumarket to adapt and secure a sustainable competitive advantage. The primary focus was on assessing the effectiveness of a new business model strategy for distinctive positioning in the market, the transformative role of innovative market creation and differentiation in enhancing Kiumarket’s value proposition, and the impact of such strategies on the brand’s market penetration, profitability, and long-term viability. Employing the Blue Ocean Strategy framework, the research delved into the current competitive scenarios using analytical tools like Porter’s Five Forces and the Business Model Canvas. This comprehensive approach helped in understanding the intricate market dynamics, competitor behaviors, and dominant value propositions. The Strategy Canvas was pivotal in analyzing the market landscape, identifying competitive factors, and uncovering potential differentiation opportunities. Innovative thinking was encouraged through the application of the Four Actions Framework and the ERRC Grid, focusing on reconstructing market value and strategy. A variety of research methods were utilized, including in-depth industry reports analysis, surveys, interviews, and focus group discussions. Tools such as SPSS ensured the accuracy and reliability of the data analysis. The study also incorporated Blue Ocean Strategy instruments like the Buyer Utility Map and the Three Tiers of Noncustomers, enabling a deep exploration of new market opportunities and insights into buyer personas. The findings of the research underscored the necessity for Kiumarket to differentiate its products, maintain consistent quality, and enhance customer satisfaction. It suggested that a strategic overhaul of the product line, coupled with competitive pricing and a strong focus on customer engagement, would be crucial. Additionally, targeting non-customers and innovating in product offerings emerged as vital strategies to tap into new market segments.