Branding isn’t just about visuals, campaigns, or beautiful copywriting. However, reality shows the opposite.
“If it doesn’t ultimately generate profits or sales, the branding strategy must be recalibrated,” said Mario Pratama, Chief Operating Officer of Eiger, during a guest lecture at SBM ITB on Monday (December 1).
Mario gave the guest lecture alongside Angel Lukito, Brand Director of Exsport. They are both key figures in the Bandung-based retail giant and alumni of BLEMBA SBM ITB. In the guest lecture, the two discussed how branding strategy is not just about changing a logo, but also a crucial solution for overcoming operational problems and corporate identity crises.
In this session, students explored two sides of the same coin within a single corporate group: Eiger and Exsport. Despite originating from the same parent company, both brands are navigating the challenges of changing times with different strategic approaches. This session provided students with valuable real-world insights into the importance of conducting research before developing a marketing strategy. It also highlighted how brand strategy must align with supply chain management and organizational culture.
“Obesity” Products and an Identity Crisis
The initial step in this transformation began with an honest acknowledgement of internal problems. For Eiger, the main problem was “luxury,” or an excess of products that backfired. Eiger once had seven sub-brands, ranging from Riding to Mountaineering to Lifestyle.
“The problem was cannibalization. The Riding sub-brand made jackets, as did Mountaineering, with similar functions. Without sharp differentiation, this confused consumers and increased production costs,” explained Mario.
Exsport, meanwhile, faced a different challenge. Angel recounted how the brand, founded in 1979, experienced a business downturn from 2015 to 2020 due to an identity crisis.
“The brand seemed to have lost its identity. We tried being masculine, then feminine, until we finally lost our way,” Angel recounted.
Simplification vs. Agility Spin-Off
In response to the challenges they faced, the two brands took different approaches. Eiger decided to simplify its strategy by shifting towards a mono-brand or master brand approach, similar to the global brand Nike. This change aimed to reduce supply chain complexity and strengthen its core identity: Tropical Adventure.
In contrast, Exsport chose a diversification and agility strategy by conducting a spin-off. “Eiger is a giant, so Exsport often fell short of priority. Ultimately, we decided to separate into our own entity so we could move quickly, have our own culture, and not be overshadowed by Eiger,” explained Angel.
Exsport then launched the tagline “Bring Yourself Out” and expanded its product offerings beyond school bags to lifestyle accessories across three categories: Active, Productive, and Recreational.
From Full Shelves to Community Hub
This strategy highlights how Eiger’s product simplification addresses the issue of physical stores being overwhelmed with display racks. This overcrowding confuses consumers, as they face an overwhelming number of options and experience a loss of exclusivity for premium products due to poor organization.
On the other hand, Exsport is redefining the role of physical stores. They are no longer just places to conduct transactions; instead, they serve as community hubs. The “Exsport Space” offers facilities for workshops, playgrounds, and community collaborations, with the aim of fostering meaningful and relevant offline connections for Gen Z.
Mario emphasized, “A great brand principal creates a great brand with great principles.” Meanwhile, Angel believes that there are two main keys for a brand to survive amidst changing trends: being “Relevant & Authentic.” Marketing creativity cannot operate in isolation.
She emphasized, “No matter how good our marketing or branding strategy is, it must truly align with the overall business strategy.” Without alignment between the brand’s “soul” and business logic, a company’s growth will never be sustainable.
