Citation:

Ali Islam Sayekti, Dr. Isti Raafaldini Mirzanti, M.M. "Value Proposition Testing for Developing Business (Case Study Alca Active Care)" International Research Journal of Economics and Management Studies, Vol. 2, No. 4, pp. 698-702, 2023.

Abstract:

In this era of globalization, business is no longer constrained by geography but is influenced by rapidly growing technology and communication. This trend has grown significantly with the emergence of the COVID-19 pandemic in 2020, forcing industries to adapt to these challenges. These changes have also extended to the global beauty industry, demanding that players in this industry have a unique value proposition to capture consumer attention. This research was conducted on Alca Active Care, a skincare brand that has been established since 2018. Using the Eisenhower matrix, this research identified the main problem faced by Alca Active Care, which is the importance of aligning customer expectations with the delivered value. The research found that the current value proposition held by Alca Active Care is not effective in increasing sales between 2021 and 2023. The conceptual framework of this research uses Alex Osterwalder’s “Three Kinds of Fit” to test the validity of Alca Active Care’s product-market fit with the value proposition canvas. The research employed both qualitative (Focus Group Discussion) and quantitative (4-point Likert survey) approaches to understand the value proposition and identify market trends. The results yielded two new value propositions, namely Multi-functionality and Intuitive Information, which were tested through three stages of validation: interest, preference, and willingness to pay through Facebook ad tracking. The research results indicate that multifunctional skincare products have the highest willingness to pay. In contrast, intuitive information in content regarding product usage and ingredients has the highest interest and preference. Therefore, Alca Active Care’s marketing promotion strategy should highlight this multi-functionality aspect to boost sales.

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Keywords:

Skincare, Value Proposition, Problem-Solution Fit, Product-Market Fit.