MARKET DEVELOPMENT STRATEGY HIGH SPEED DIESEL DISTRIBUTION PT DROX PROX TO SULAWESI

• Main Author: ARY RELYMAN (NIM: 29109314); Pembimbing : Ir. Alibasjah Inggriantara Soedjarno, SE. MM, RADEN
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/19193
• Institution: Institut Teknologi Bandung

Since the activation of Law No. 22/2001 about oil and gas that aims to the social economy, equity, welfare and legal, at that time started the new level of competition in the energy industry become more tight with the entry of private companies. High speed diesel is a type of distillate fuel oil that used for the compression machine and in all types of diesel engines with high rotation (above 1.000 RPM). As a PT. DROX PROX’s business unit, PT. DISTROX is trying to make a market development in high speed diesel <br /> <br /> <br /> <br /> <br /> distribution. PT. DISTROX is trying to develop this business in order to survive, sustain, and growth in a changing business environment. The industry growth in Sulawesi hasn’t run optimally but there is a chance for the improvement of fuel consumption in industrial sector, as a part of Masterplan Acceleration and Expansion of Indonesia Economic Development. <br /> <br /> <br /> <br /> <br /> Competition that occurs in the High Speed Diesel (HSD) distribution business is previous years. With the development of the industrial in Indonesia, it’s an opportunity to develop DISTROX business opportunities. Sulawesi has a considerable potential for development of High Speed Diesel (HSD) distribution business. DROX PROX is in investment stage, based on the 2010 financial report (increased the gross loss or decrease in gross profit). Then, expense for capital expenditures was increasing. Furthermore, the company has decided to only make selective growth, which is very potential. This Final Project is trying to design market development strategy of PT. DROX <br /> <br /> <br /> <br /> <br /> PROX to Sulawesi. The solution would be limited only in functional strategy i.e Marketing, Finance, Logistics and Operational Strategy. Marketing strategy dealt with DISTROX’s pricing that offered pricing below Pertamina’s price and DISTROX distribution scheme that direct from Singapore to Makassar. Financial strategy attempted to maximize the financial value and choose low infrastructure and profit-sharing scheme. Operations strategy dealt with how to improve efficiency level at DISTROX in lead time and minimize shortage. Logistics strategy dealt with several suppliers and order point inventory model. <br /> <br /> <br /> <br /> <br /> In order to conduct market development strategy to Sulawesi, the strategies are marketing strategy with production efficiency (Improving the service quality, improving the corporate image, adding a relations network), operational strategy with capacity optimization (Implementation of high quality operational standardization and loading and discharge review), financial strategy with maximize the cash management (search financial resources for the company and use company’s idle cash to generate additional income), and logistic strategy with inventory control system (Ensure the availability and continuation of supply, quickly adjust for changes in raw material prices to pricing calculation). Expected with conduct market development to Sulawesi, DISTROX can further develop the business and positively contribute to PT. DROX PROX.