ProcediaEconomicsandFinance4(2012)120–1292212-5671©2012TheAuthors.PublishedbyElsevierLtd.Selectionandpeer-reviewunderresponsibilityofParahyanganCatholicUniversity.doi:10.1016/S2212-5671(12)00327-9InternationalConferenceonSmallandMediumEnterprisesDevelopmentwithaTheme(ICSMED2012)DeterminingtheMostEffectivePromotionStrategyforClothingCompanyinBandung,IndonesiaYessieFransiskaa*,FebriAndhikaa,MascaIndraa,RenniRengganisaaMasterofScienceinManagement,SchoolofBusinessManagementInstituteTechnologyofBandungJalanGaneshano.10,Bandung40132,IndonesiaAbstractSeemednottobeoutdonebyforeignbrands,manyIndonesianentrepreneurespeciallyinBandungplungeintofashionindustrybycreatetheirownbrand.Asatourismdestination,Bandungfashionindustryattractsquitealotinterest.Thegrowthofclothingcompanyinrecentyearsincreasessignificantly.Thisisabigchallengeformarketerstowinthecompetition,sothatpromotionsbecomeveryimportantweapon.Promotionrolesaretomakethemarketknownandrecognizetheuniquenessoftheclothingcompanyitself.Businesslossescommonlyhappenedbecauseofusingineffectivepromotionmediawhichmademarketingcostbecomeveryhigh.ThepurposeofthisstudyistomeasurethemosteffectivepromotionstrategyforsmallbusinessesespeciallyinfashionbusinessinBandung.Thestudywasconductedbyinterviewing5topofmindclothingownerinBandungwhichsuccesstoclassifiedpromotionalstrategythatbeingusedinawareness.Theresultofthisstudywillcontributeforthedevelopmentofentrepreneurinmarketingscience,andforpracticalimplicationitwillprovidetheproperandeffectivepromotionstrategyforanylocalclothingcompany.©2012TheAuthors.PublishedbyElsevierLtd.Selectionand/orpeer-reviewunderresponsibilityofParahyanganCatholicUniversity.Keywords:entrepreneurialbusiness;promotiontools;clothingcompany;Bandung*Correspondingauthor.Tel.:+62-22-250-0935;fax:+62-22-250-0935.E-mailaddress:yessie.fransiska@sbm-itb.ac.idAvailableonlineat©2012TheAuthors.PublishedbyElsevierLtd.Selectionandpeer-reviewunderresponsibilityofParahyanganCatholicUniversity.OpenaccessunderCCBY-NC-NDlicense.OpenaccessunderCCBY-NC-NDlicense.121YessieFransiskaetal./ProcediaEconomicsandFinance4(2012)120–1291.IntroductionBeforefactoryoutlethasbecomingashoppingcenterinBandungfordomesticandforeigntourists,Bandungisfirstknownasaparadiseandpriordestinationfordistributionsoutletandclothingcompany.Clothingitselfisatermforacompanythatproducesapparelwithitsownbrandanditsproductscanbevariesnotonlyclothes,butcouldbenewproductswhichsupportinglifestylesuchaswatches,belts,sunglassestoMP3player.ThedevelopmentofclothingcompanyinBandungissupportedbyscenesofyoungpeoplegrowingatthattime,fromthemusicscene,streetfashionantransformedintoacitythatcontinuestogeneratelocalfashionbrands,andknownalloverIndonesiaandoutsideofIndonesia.Clothingcompany,isusuallymarkedwithalimitededitionofonly50-100pairsofproductstosell,that'sclothingdistinguishbetweenconventionalfashionindustryinBandung.Inaddition,thecloserelationshipbetweentheclothingcompanywithpeoplewhohadbeeninthelocalmusicsceneortheywhohavehobbiessuchasskateboarding,increasethespiritandmakemorerecognizedbyBandungyouth.Unfortunately,thedevelopmentofclothingcompanybasedonthespiritofBandungyoungpeopleidealismwhowanttocreateabrandwithadifferentconceptfromothersnowquitecoveredwiththepresenceofanotherclothingwhichjustsoldproductformakingmoneyonly.First,peoplewhocametotheclothingaimedtofindsomethingdifferentthatdoesnotexistinotherplacessuchasshoppingcentersanddepartmentstores,somethingspecific,differentfromtheothers,thereforethelocationofclothingweresometimesnotasstrategicascentershoppingingeneral,remotelocationandthereisapurposewhytheyopenaplacethere,sopeoplewhocamewerereallylookingforsomethingthatisnotjustwindowshoppingonly.ClothingcompanygrewinBandungcontinuestothisdaywithapproximatelymorethan200outletinBandungwithatargetaudienceofyoungpeopleaged13-35years(productiveage),themiddleclassanduppermiddle,theyarejudgedtobethemosteffectiveaudienceandpotentialasthenextgenerationofIndonesia.Theyarealreadysupposedtobeaddressedfromthebeginningtobeabletodevelopthepotentialoftheappreciationoflocalproducts.SuchfiercecompetitioneveryclothingcompanyhastobesmarttoconquerthecompetitionandhavetomaketheirbrandwellknowninBandungitselfandoutsideBandung.Therefore,thepromotionisanimportantweapontocontinuemakingtheirbrandsknownandcontinuetobeknown.Clothing,includedtosmallandmediumbusinessenterprises(SMEs)withlimitedbudgetsandresourcestothemakestrategicpromotionchoices.Basedonthisfacthowtoraisecustomerawarenessofclothingcompanybrandname,productsandservicesisveryimportant.Advertising,salespromotions,directmarketing,personalsellingareallmethodstoraisebrandandproductfamiliaritywithinatargetmarket.Promotionactivityinvolvesusingadvertisingandothermarketingtechniquestosellproducts.ThisresearchtriestofindouthowSMEsputtogethereffectivepromotionalstrategiesbycombiningthesemethodstospreadtheirmessageandthemakethemwidelyknown.2.LiteratureReview2.1.HistoryofClothingCompanyinBandungIn2003-2004,clothingstoreinBandungweresignificantlyincrease,almost200stor