From Market Segmentation to Customer Loyalty: Strategic Targeting of Local Bottled Water Consumers in Rural Indonesia
Abstract
This study examines how market segmentation contributes to customer loyalty through strategic targeting in the local bottled water industry in rural Indonesia. The study focuses on AMDK AMT Plakpak, a local bottled water enterprise operating in Pagantenan, Pamekasan, where competition with established regional and national brands creates challenges for sustaining customer relationships. Using a qualitative descriptive approach, data were collected through non-participant observation, unstructured interviews, and documentation involving company management and customers. The findings indicate that AMDK AMT applies market segmentation based on customer characteristics, geographic location, and consumption needs. The company prioritizes segments with relatively stable and repetitive demand, particularly pesantren, retailers or agents, food stalls, schools, and institutions. Strategic targeting enables the company to customize marketing and service approaches, including stock availability, timely distribution, responsive communication, product quality, and competitive pricing. These practices contribute to customer satisfaction and trust, which are reflected in repeat purchases, continued brand preference, and customer recommendations. The study highlights that segmentation is not merely a market classification tool but a strategic mechanism for strengthening long-term customer relationships in rural markets. The findings contribute empirical insight into how local bottled water enterprises can transform contextual market knowledge into sustainable customer loyalty and competitive advantage
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