CHAPTER I

INTRODUCTION

1.1. Research Background

In a tight competition between companies, product strategy and marketing
communication is needed to have a long term impact on the success of the product
companies are marketing and eventually an impact on customer satisfaction.
Loosely defined, product strategy means the decision companies made on the
product sold; pricing, benefits, quality, target market or positioning. But in the
other hand, organization should consistently communicate with its stakeholders
rather than only producing and pricing its product, This means that modern
marketing requires more than developing a good product, pricing it attractively,
and making it accessible to target customers. Therefore, companies must
communicate with present and potential stakeholders including its employees, and
with the general public (marketing communications). Marketing communications
represent the crucial point of marketing activities for many, if not all businesses or
companies. Consumers have certain perceptions and attitudes and these influence
them in their attempt to take their purchasing decisions, Which is why the need for
organizations to influence consumers and customers by their marketing
communications is crucial in order to change these wrong perceptions and
attitudes.
Meanwhile, customer satisfaction, a business term, is a measure of how
products and services supplied by a company meet or surpass customer
expectation. It is seen as a key performance indicator within business. While
companies are striving to build, perhaps sometimes companies are misguided by
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the notion that customers depend on companies. The truth of the matter is that
companies very much so depend on them. Many researchers and academia have
highlighted the importance of customers in todays market. Not only is it the
leading indicator to measure customer loyalty, identify unhappy customers, reduce
churn and increase revenue; it is also a key point of differentiation that helps
companies to attract new customers in competitive business.
Today, OO Pastries offers numbers of products for customers, this led OO
Pastries to also restructure their communication by way of bringing the various
communication tools such advertising, sales promotion, media relations, public
relations and many more together. Since 2014, not much of medias are promoting
or talks about OO Pastries in general, in fact the company mostly do its
promotions online and by social media platforms despite of how crucial it is to
communicate in open public about the business, in which would need more
attention on this matter.
The purpose of this paper is therefore to mainly explore how product
strategy and marketing communication can influence customer satisfaction by
changing customers perceptions and attitudes using OO Pastries as case study
1.2. Problem Statement
Based on the background of the backgrounds of research described above,
writer can identify the problem statement as follows:
1. The purpose of a business is to create and keep a customer . If a business
successfully creates and keeps customers in an effective way, it will make a
profit while continuing to survive and thrive. If, for any reason, a business
fails to attract or sustain a sufficient number of customers, it will experience

losses.
2. Products of the company need to be planned and worked on in order to gain
customer satisfaction since products are crucial and are what customers gain in
return of spending money.
3. Marketing communication is how the companies openly communicate in
public for the products and should be crucial point to be noted.
4. Promotion is also part of marketing communication that the company should
pay attention on.
5. Customer satisfaction is unfortunately something that the company are
neglecting while striving to be better.
1.3.Scope of the Study
Scope of study entitled The Analysis of Product Strategy and Marketing
Communications to Increase Customer Satisfaction at OO Pastries Medan,
contains:
CHAPTER 1 : INTRODUCTION
This chapter explained about the research background, problem
statement, research objectives, hypothesis, scope of the study and
significance of the research that is expected to be achieved refers
to the problem statement.
CHAPTER 2 : THEORETICAL REVIEW
In chapter two is explained on the theoretical basis that is used as
the basis of the analysis in order to analyze the problems that are
result of the research, the research framework and hypotheses.
CHAPTER 3 : THE DESCRIPTION OF THE COMPANY

This chapter is contains company profile such as the organization

structure of the company, the job description of the employees
and other related information.
CHAPTER 4 : ANALYSIS AND EVALUATION
This chapter describes about the description of the object of
research that contains a brief description of objects used in the
study. Analysis of data and discussion of the results is simpler
form that is easy to read and easy to interpret includes a
description of the object of study, research analysis, as well as
data analysis and discussion.
CHAPTER 5 : CONCLUSIONS AND SUGGESTIONS
This chapter contains conclusions and suggestions which is the
result of the analysis of data obtained from all studies and also
suggestions recommended by the researcher to the company. The
suggestions that related to research and advice, which is expected
to be useful for those who have an interest in research.
1.4.Research Questions
From the final project title, the writer can summarize the questions of this
research:
1. Whats the brief definitions of product strategy and marketing communication
and how exactly these two works in order to gain the customer satisfactory?
2. What if the company is planning on a bad product to be marketed and bad
marketing communication, what is likely going to happen?
3. Is there any way to measure the customers satisfactory levels?

4. What are the key factors that affect the customers satisfaction?
5. Mostly, what thoughts do the company or the caf managers on this matter?
Of having this whole effective products and marketing communication
requirements.
1.5.Research Objectives
The purposes & objectives of this final project are as follows:
1. To give an basic description of how the company can successfully create and
keeps customers in an effective way.
2. To give an insight of what can the companies do and work on the products to
gain customer satisfaction.
3. To give a better understanding about how marketing communication works.
4. To also give a better understanding about how promotions are playing an
important role.
5. To give better understanding about customer satisfaction in general, what
affects it and what it do
1.6.Significance of the Research
The final project titled The Analysis of Product Strategy and Marketing
Communications to Increase Customer Satisfaction at OO Pastries Medan
hopefully will contribute guidance, and directive scripting, for:
1. The Writer
Assuredly, this thesis benefits the writer to explore and study more into the
caf working area, to help the writer derive more in-depth of communication
skills, products planning, and what the company has decided to fix the issues
within it.

2. The Company
The result of this study hopefully may be used as consideration and guidance
of company management to know more about marketing communication, to
plan products and to better understand customer satisfaction
3. The Readers
For readers, writers hope this scripting will be as a reference, a guidance for
further research with similar theme. This can be an example for readers who is
doing new researches in the same field