INTERNATIONAL JOURNAL OF SOCIAL SERVICE AND
RESEARCH |
ANALYSIS OF MARKETING STRATEGIES TO INCREASE SHRIMP SALES
AT PT. INDOMINA LANGGENG SEJAHTERA
Dede Rianatullah
Jiangxi Normal University, Nanchang, China
Email: [email protected]
Abstract
The research aims to determine the appropriate marketing strategy for
companies to increase market share and to continue to exist amid
ever-increasing business competition. This research deals with marketing strategies, which include
strengths, weaknesses, opportunities, threats and market share owned and
marketing strategies developed using SWOT analysis tools (Strengths, Weakness,
Opportunities, Threats).Business development is now increasing from year to
year, will automatically be coupled with increasing competition from business
people, such as PT. Indomina Langgeng Sejahtera which was established in 2015
with a marketing strategy offering a variety of processed shrimp products.
Based on the research conducted, it turns out that PT. Indomina Langgeng
Sejahtera has advantages, based on IFAS and EFAS analysis, the results of the
analysis show that the strength and weakness factor (IFAS) shows 2.65, and the
opportunity and threat factor (EFAS) is 2.80. Strength and opportunity factor
(SO) of 3.80, strength and threat (ST) of 2.70, weakness and opportunity factor
(WO) of 2.75, and for weakness and threat factor (WT) of 1.65. From the results
of this analysis, it can be seen that PT. Indomina Langgeng Sejahtera has a
great power to take advantage of opportunities and minimize threats. PT.
Indomina Langgeng Sejahtera can also minimize weaknesses to take advantage of
opportunities, moreover in minimizing weaknesses to avoid threats. Therefore
PT. Indomina Langgeng Sejahtera can utilize its strengths and opportunities
optimally.
Keywords: marketing strategy; SWOT; sales
Received 20
August 2022, Revised 13 September 2022, Accepted 26 September 2022
INTRODUCTION
In this increasingly difficult economic situation, there
is a lot of competition in various fields of life, including competition in the
business world (Cemporaningsih et al., 2020). Many companies
are competing with each other to gain market share, so this spurs companies try
to move forward in improving their business (Cennamo, 2021). The company will
certainly strive to meet the expectations and needs of consumers as much as
possible so that it will create a good relationship between the company and its
customers. This relationship can be established and continue to increase if the
company always provides the best services, products, and prices to consumers.
PT. Indomina Langgeng Sejahtera, having its address at
Jalan Insinyur Sutami, South Lampung Regency, Lampung is a business engaged in
shrimp processing which is marketed online. In order to compete, Companies must
be required to be creative in promoting and maintaining and adding quality
aspects.
This company was founded in 2015 as a shrimp processing
company with approximately 1500 employees. It also has a representative office
located at L'Agricola Blok B.2, Jalan Curug Sangerang, South Tangerang City.
This company adheres to the principles of GMP (Good Manufacturing Practices)
and SSOP (Standard Sanitation Operating Procedures) which are prerequisites for
the program for HACCP (Hazard Analysis Critical Control Point) programs for
harvesting, transportation for processing plants, processing, to complete
products. This process ensures that the product adheres to standards for
quality and safety in terms of its food. Here are examples of products and
prices that we can see in Table 1.
Table
1
Product
Name and Price Sold by PT. Indomina Langgeng Sejahtera
No. |
Product Name |
Price / Kg |
1 |
Frozen Indonesian Monodon Shrimp Headless 062 |
225.505
IDR |
2 |
Frozen Indonesian Monodon Shrimp Easy Peel 065 |
243.272 IDR |
3 |
Frozen Indonesian Vannamei PD Vacuum Pack 085 |
133.936
IDR |
4 |
Frozen Indonesian Vannamei PDTO IQF |
125.000
IDR |
5 |
Frozen Indonesian Vannamei PD Second Grade |
82.000
IDR |
6 |
Frozen Indonesian Vannamei Shrimp Broken |
59.000
IDR |
Source: PT. Indomina Langgeng Sejahtera
PT. Indomina Langgeng Sejahtera experienced a problem with
fluctuations and decreases in shrimp sales. This may be due to the inaccuracy
of the marketing strategy carried out, such as not using the media for
promotion other than only being active through the company's website and never
participating in activities/events that are held to introduce the product more
broadly. For that we need the right marketing strategy so that businesses can
increase their product sales.
In developing a business, one of the important thing is a
marketing strategy (Lawrence & Lee, 2010). A good product
will be useless if it is not accompanied by the right marketing strategy (Munadi et al., 2008).
This is because without the right marketing strategy, it
will be difficult to sell a product and even develop business (Efriyanti & Wijaya, 2016). Especially
considering today, the number of competitors is getting higher in various
business fields, including the bag business.
For this reason, in this case knowing the marketing strategy
is very important. Thus, businessman can design the business marketing strategy
well. Marketing strategy is a mindset used to develop a business or company (Guiltinan et al., 1997). The method used
is to unite several marketing elements such as market segmentation, marketing
mix, position, target, and so on.
Understanding marketing strategy according to Michael
Baker is simpler. Marketing strategy according to Michael is a basic goal in
increasing sales and achieving a sustainable competitive advantage. Marketing
strategy is all efforts made both short and long term in the field of marketing
(Homburg et al., 2009).
This effort is related to the analysis of the initial
strategic situation of the company, in which the strategy begins with the
formulation. Then evaluate and select strategies and contribute to the goals of
the company or business.
In contrary Aaker and Moorman (2017)
states that marketing strategy is a process that begins with the process of
moving the business environment, both internal and external. Then, what is the
purpose?
This transfer process aims to understand many important
aspects of the external environment. This understanding process aims to enable
businesses to compete with the focus of attention on aspects of technology,
law, economy, culture and politics (Kotler & Keller, 2021).
Marketing strategy is a marketing mindset that will be
used to achieve its marketing goals (Kotler & Keller, 2021). The marketing
strategy contains specific strategies for the target market, positioning,
marketing mix and the amount of marketing expenditure.
Selling is the science and art of personal influence
carried out by the seller to invite others to be willing to buy the goods or
services offered (Swastha, 2007). Based on the
explanation above, it can be concluded that sales are the purchase of something
(goods or services) from another party by getting money from that party.
Windi and Mursid (2021)
analyze that companies require that they pay more attention to one of the most
important and vital things in a company's management. Moreover, Firdaus, Azizah, and Sa’adah (2022)
found out that to expand the production market, it is better to take advantage
of current technological developments so as to maximize business income. In
addition, market basket analysis with association rules assists owners in
understanding consumers' personal needs, which, if captured, can be utilized to
develop the best marketing approach (Halim & Halim, 2019).
Based on this opinion, it can be concluded that the
marketing strategy is a series of designs that aim to market a product to the
public, so that it can reach the target market, one of which is that the
products offered can be sold and can generate maximum profits. However, in
essence, marketing strategy is about how to make a product sell well in the
market.
From the problems above, the authors are interested in
conducting more in-depth research on marketing strategies to increase sales
with the title “Strategy Analysis Marketing to Increase Shrimp Sales in PT. Indomina
Langgeng Sejahtera”. The research objectives are to find out the right
marketing strategy to increase sales at PT. Indomina Langgeng Sejahtera
METHOD
A. SWOT
analysis
The
analytical tool used to discuss problems and find solutions in analyzing
competitive strategy is to use SWOT analysis (Strength, Weakness, Opportunity,
Threats) (Salim & Siswanto, 2019). This method is a
method based on the strengths, weaknesses, opportunities and threats that come
from the company or from outside the company or competitors.
B. SWOT
Matrix Procedure
This
matrix clearly describes how the internal opportunities and threats faced can
be adjusted to the internal strengths and weaknesses which is owned. This
matrix can produce four sets of possible strategic alternatives, as shown in
Table 2.
Table
2
SWOT
Matrix
|
IFAS |
STRENGHTS
(S) |
WEAKNESSES
(W) |
EFAS |
|
(Determine
4-10 Internal strength factor) |
(Determine 4-10 Factors of internal weakness) |
OPPORTUNITIES (O) |
|
|
|
(Determine
4-10 External opportunity factors) |
Create
strategies that use strengths to take advantage of opportunities |
Create
strategies that minimize weaknesses to take advantage of opportunities |
|
|
|
|
|
(Determine 4-10 External Threat
Factors) |
Create strategies that use strength to overcome
threats |
Create strategies that minimize weaknesses and avoid threats |
Source: Freddy (2006)
C. EFAS
Analysis of external strategic factors is focused on existing conditions
and trends that arise from outside, but can affect organizational performance.
After knowing the external strategic factors, then compose a table of External
Strategic Factors Analysis (EFAS) with the following steps:
1)
Compile the opportunity and threat factors in column 1.
2)
Give each factor a weight in column 2, starting from 1.0 (very important)
to 0.0 (not important). The weight of all strategic factors in the form of
opportunities and threats must be 1.
3)
Calculate the rating in (in column 3) for each factor by giving a scale
starting from 4 (very good/outstanding)
to 1 (very poor/poor) based on the influence of these factors on the condition
of the company. The rating for the opportunity is positive, meaning that the
bigger opportunity is given a +4 rating, but if the opportunity is small, it is
given a +1 value. Meanwhile, the threat rating is the opposite, i.e. if the
threat value is large, then the rating is -4 and if the threat value is small,
then the value is -1.
4)
Multiplying the weight of the factors in column 2 with the rating in
column.
5)
The result is a weighted score for each factor.
6)
Calculates the number of weighted scores. This value is to map the
position of the organization on the SWOT analysis diagram.
D. IFAS
Internal strategic factor analysis is an analysis that assesses
achievement/performance which is a factor of strengths and weaknesses that
exist to achieve organizational goals. As in the External Strategic Factors
Analysis, then in the same way compose a table of Internal Strategic Factors
Analysis Summary (IFAS). After knowing the factors of internal strategy, then
compose a table of Internal Strategic Factors Analysis (IFAS), with the
following steps:
1)
Compile the opportunity and threat factors in column 1.
2)
Give weight to each factor in column 2, ranging from 1.0 (very important)
to 0.0 (not important). The weight of all strategic factors in the form of
opportunities and threats must be 1.
3)
Calculate the rating in (in column 3) for each factor by giving a scale
ranging from 4 (very good/outstanding) to 1 (very bad/poor) based on the
influence of these factors on the company's condition. Positive variables (all
variables that fall into the strength category) are scored from +1 to +4 (very
good) by comparing them with the industry average or with the main competitors.
While the variables are negative, the opposite.
4)
Multiplying the weight of the factors in column 2 with the rating in
column 3. The result is a weighted score for each factor.
5)
Calculates the number of weighted scores. This value is to map the
position of the organization on the SWOT analysis diagram.
E. IE Matrix (Internal External)
Internal External Matrix serves to position a company into a matrix
consisting of 9 cells. IE matrix consists of two dimensions, namely: the total
score of IFAS on the X axis and the total score of EFAS on the Y axis.
Table 3
IE Matrix (Internal External)
|
|
|
Total Internal Strategy Factor Score |
|
||
|
|
|
STRONG |
AVERAGE |
WEAK |
|
|
|
|
4.0 3.0 2.0 1.0 |
|||
Total
External Strategy Factor Score |
High |
I Growth |
II Growth |
III Collapse |
|
|
|
3.0 |
|
||||
Middle |
IV Stability |
V Growth |
VI Collapse |
|
||
|
2.0 |
Stability |
|
|||
Low |
VII Growth |
VIII Growth |
IX Liquidation |
|
||
|
1.0 |
|
Table 4
IFAS PT.Indomina
Langgeng Sejahtera
No |
Internal Factors |
Mark |
Rating |
Mark x Rating |
Strength |
||||
1 |
Good product
quality |
0.20 |
3 |
0.60 |
2 |
Product stock is
always available |
0.20 |
3 |
0.60 |
3 |
Adequate company
facilities |
0.10 |
2 |
0.20 |
4 |
Shrimp products
sold vary |
0.15 |
3 |
0.45 |
Sub Total |
0.65 |
|
1.85 |
|
Weakness |
||||
1 |
Lack of promotion |
0.10 |
2 |
0.20 |
2 |
Raw material
limitations |
0.15 |
2 |
0.30 |
3 |
Hard-to-reach
location |
0.05 |
3 |
0.15 |
4 |
Unstable price |
0.05 |
3 |
0.15 |
Sub Total |
0.35 |
|
0.80 |
|
Total |
1.00 |
|
2.65 |
Source : Processed data, 2022
B.
External Analysis (External Factors Analysis Summary)
Table 5
EFAS PT.Indomina
Langgeng Sejahtera
No |
External
Factors |
Weight |
Rating |
Weight x Rating |
Opportunity |
||||
1 |
Loyal consumers in
buying products |
0.15 |
3 |
0.45 |
2 |
Consumers often
buy products in large quantities |
0.15 |
2 |
0.30 |
3 |
Good relationship
with consumers |
0.15 |
4 |
0.60 |
4 |
Have many vendors |
0.15 |
4 |
0.60 |
Sub Total |
0.60 |
|
1.95 |
|
Threat |
||||
1 |
Have many
competitors |
0.15 |
2 |
0.30 |
2 |
There is a similarity of shrimp products
with other companies |
0.10 |
2 |
0.20 |
3 |
Competitors are
aggressively promoting |
0.10 |
2 |
0.20 |
4 |
More strategic
location of competitors |
0.05 |
3 |
0.15 |
Sub Total |
0.40 |
|
0.85 |
|
Total |
1.00 |
|
2.80 |
Source : Processed data, 2022.
Table 6
IE PT. Indomina
Langgeng Sejahtera
|
|
|
Total Internal Strategy
Factor Score |
|
||
|
|
|
STRONG |
AVERAGE |
WEAK |
|
|
|
|
4.0 3.0 2.0 1.0 |
|||
Total
External Strategy Factor Score |
High |
I Growth |
II Growth |
III Collapse |
|
|
|
3.0 |
|
||||
Middle |
IV Stability |
V Growth |
VI Collapse |
|
||
|
2.0 |
Stability |
|
|||
Low |
VII Growth |
VIII Growth |
IX Liquidation |
|
||
|
1.0 |
|
Source: Processed data, 2022.
Table 7
SWOT Matrix PT.
Indomina Langgeng Sejahtera
IFAS EFAS |
Strength: 1. Good
product quality 2.
Product stock is
always available 3.
Qualified company
facilities 4.
Have various
shrimp products |
Weakness: 1. Lack of
promotion 2.
Raw material limitations 3. Hard-to-reach
locations 4. Unstable price |
Opportunity: 1. Loyal consumers buy products 2. Consumers
often buy products in large quantities 3. Good
relationship with consumers 4. Have
many vendors |
SO Strategy: 1. The
company maintains and improves product quality so that consumers remain
comfortable 2.
Maintain good
relationship with consumers by providing products that are always available 3.
Maximizing company
facilities so that consumers are more satisfied with the company's results
and services. |
WO Strategy: 1. Carry
out promotions to attract more consumers 2. Owning the
company's own shrimp farm to maintain the product's raw materials 3. Looking for
easy-to-reach locations to attract more consumers |
Threats: 1. Have
many competitors 2. There
is a similarity of shrimp products with other companies 3. Competitors
are aggressively promoting 4. More
strategic location of competitors |
ST Strategy: 1. Improving
product quality and quality to stay ahead of competitors 2. Increasing
innovation from product excellence so that it is different from other
companies 3. Maintain
stock availability or even add 4. availability
of raw material stock for shrimp processing |
WT Strategy: 1. Increase
promotional activities through existing social media and participate in
bazaars for more introduce the product more broadly. 2. Opening
a pond owned by the company itself |
Source : Processed data, 2022.
Table 8
SWOT
Matrix Combination Formula
IFAS EFAS |
Strength (S) |
Weakness (W) |
Opportunity (O) |
Strategy (SO) =
1.85 + 1.95 = 3.80 |
Strategy (WO) =
0.80 + 1.95 = 2.75 |
Threat (T) |
Strategy
(ST) = 1.85 + 0.85 = 2.70 |
Strategy (WT) = 0.80 + 0.85 = 1.65 |
CONCLUSION
The marketing strategy that can be carried out by PT. Indomina Langgeng
Sejahtera to increase sales is a concentration strategy through horizontal
integration. This means that the strategy applied is more defensive, it is
avoiding lost sales and lost profits caused by threats such as many competitors
selling in the same product, competitors aggressively promoting more and more
The results of the SWOT analysis include:
The strength of PT. Indomina Langgeng Sejahtera lies in:
1) Product Quality
2) Product stock is always available
3) Adequate company facilities
4) The processed shrimp products that are sold vary have many variations
The weakness of PT. Indomina Langgeng Sejahtera includes:
1) Lack promotion
2) Raw material limitations
3) Hard-to-reach location
4) Unstable price
Opportunity owned PT.Indomina Langgeng Sejahtera lies on:
1) Have many loyal customers
2) Consumers often buy products in large quantities
3) Have a good relationship with consumers
4) Have many vendors
The threats that exist at PT. Indomina Langgeng Sejahtera are:
1) Have many competitors
2) There is a similarity of shrimp products with other companies
3) Competitors are aggressively in promoting
4) More strategic location of competitors
Based on the results of the SWOT analysis, a suitable strategy in
increasing sales of shrimp products is the SO and WO strategy.
SO Strategy
1) The company maintains and improves product quality so that consumers
remain comfortable
2) Maintain good relationship with consumers by providing products that are
always available
3) Maximizing company facilities so that consumers are more satisfied with
the company's results and services
WO Strategy
1) Carry out promotions to attract more consumers
2) Owning the company's own shrimp farm to maintain the product's raw
materials
3) Looking for an easy-to-reach location to attract more consumers.
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