PROPOSED MARKET DEVELOPMENT STRATEGY FOR PT. DONG KWANG IND TO ENTER INDONESIA MARKET IN DOOR CLOSER BUSINESS

• Main Author: Silviana Indrayana, Dita
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/42659
• Institution: Institut Teknologi Bandung

Dong Kwang CO., LTD. is a private company specializing in designing, manufacturing and exports Door Closer. Its Door Closer brand named PRIMA door closer. They market door closer all over the world. The company established since 1969 with headquartered in Korea and manufacturing plan in Indonesia. Indonesia will faced strong growth in residential and commercial buildings sector over the next five to ten years. The residential and commercial building sector forecast to gain annual growth rate of 8.6% between 2018 and 2027. In particular, the commercial building segment will see significant growth supported by a growing domestic middle-class market for retail, entertainment and tourism services. The residential and commercial segments will benefit from Indonesia's strong demographics, including a large, young population of 260mn, high urbanization rate of 53% and rapid real GDP growth, which forecasted to reach an annual average of 5.6% between 2018 and 2022. The expansion of commercial properties will inevitably fuel the demand for basic amenities such as door closers. The regulation regarding green building also project and opportunity for door closer market. One component that is critical for green building is doo closer. Properly adjusted door closer can make a huge impact in building energy demand because it will protect building from getting heat loss which lead to building energy consumption. Even though the market is growing Dong Kwang face several issues to enter Indonesia market. These issues are, highly competitive market, low brand presence, do regulations regarding door closer usage in building safety, and stuck in the middle between German product and China product. The purpose of this research is to analyze current business condition of Dong Kwang, both internal and external to develop market development strategy for Dong Kwang, in entering Indonesia Market. Several tools used to conduct the analysis are, PESTEL, Porter’s Five Forces, VRIO Analysis, and Existing Business Model canvas, STP analysis, 4P’s Marketing Mix and SWOT Analysis. The next is formulation of business strategy using, Ansoff Matrix and Diamond Framework Strategy Analysis. After internal analysis, external analysis, and strategy formulation, Dong Kwang need to develop their internal conditions by creating, R&D department, Marketing Department, and Customer Relations Management. Dong Kwang also should forming strategic alliance with Indonesia Door Manufacturer company and Developer or Construction company. By implementing this strategy Dong Kwang is expected to increase their brand presence, and gain market share in Indonesia market.