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)

 



STRATEGI SO



STRATEGI WO

 

(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


THREATS (T)


STRATEGI ST


STRATEGI WT

 

 

(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

 

 


 

RESULTS AND DISCUSSION

A.      Internal Analysis (Internal Factors Analysis Summary)


 

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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