PROPOSED MARKETING STRATEGY FOR INDUSTRIAL FUEL MARKETING DIVISION OF PT. PERTAMINA (PERSERO)

• Main Author: Pasalini, Ferry
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/42419
• Institution: Institut Teknologi Bandung

As the nation's economic locomotive, Pertamina is a state-owned company that carries out integrated business, covering oil, gas, renewable and new energy based on strong commercial principles both nationally and internationally. Industrial Fuel Marketing (IFM) division is part of the Directorate of Corporate Marketing of Pertamina, established to face competition in fuel marketing for Industry and Marine sectors in Indonesia. Pertamina IFM currently hold more than 70% of Domestic Industrial & Marine Fuel Market Share. The open competition between fuel suppliers is a crucial factor to sustain in the business. Growth in domestic fuel suppliers number has become serious threat for Pertamina IFM to maintain its profitability and market share in the business. Based on data from the Downstream Oil and Gas Regulatory Agency (BPH Migas), there were 233 registered Fuel License Holder Company which were operating until the end of 2018. This number is increasing from year to year. This final project is done by Qualitative and Quantitative Method research. The Qualitative method includes individual interviews to address the issues and challenges, in which the respondents are relevant PIC and have a good understanding about Industrial & Marine Fuel business in Indonesia. The qualitative research also combined with several tools such as; VRIO analysis, Market Mapping, Porter’s Five Forces, Root Cause and SWOT analysis. The Quantitative Method research includes by conducting Pareto analysis to determine the dominant issue that should be solved by Pertamina IFM. The main challenge for Pertamina IFM is continue to grow it business regarding the intense of competition with competitor (Fuel License Holder Company). Pertamina IFM’s effort to create new strategies to sustain and expand its revenues is very critical. After analysis, the author finds few options that can be chosen by Pertamina IFM to grow its market share in industrial and marine fuel business by doing Co-opetition Strategy, which apply cooperative competition approach with Fuel License Holder Company (complementors).