REVITALIZING BUSINESS STRATEGY ON SMALL MEDIUM ENTERPRISE PRODUCING INSTANT SEASONING: STUDY OF CV GERAK TANI

• Main Author: Christoper, Wilson
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/61628
• Institution: Institut Teknologi Bandung

Indonesia is the biggest archipelago nation in the world, and has a high biodiversity in flora, one of them is spices. Ministry of Trade in Indonesia stated that spices commodity in 2019 has reached USD 13,77 billion and predicted to grow annualy with 6,3% rate from 2020 – 2027. Gerak Tani is one of SME’s producing the seasoning spice from 1977, with motto “Durable without preservative, delicious without added flavouring”. This motto has been product claims and competitive advantage of Gerak Tani, since they are using the gamma radiation and patented this process under their name. The company’s growth is stagnant in the last 5 years, whilst the business sectors is growing. This has become the business problems for Gerak Tani This study using the fishbone and 5 why’s analysis to determine the rootcause. With internal analysis such as STP, Marketing Mix analysis (7P), combine with external analysis such as PESTLE analysis, 5 Porter’s force analysis, competitor analysis and customer analysis, the author formulate the strategy using Diamond Strategy and new Marketing Mix analysis (7P). Gerak Tani has stagnant growth, low on product innovation, and low on brand awareness, that factored by unclear organization structure and job responsibility. Their marketing activites is also low, compare to another competitor. They don’t have supply chain department to plan all production and control inventory, whilst the documentation of stocks and production capacity still in paper, causing more cost, and lost sales in festive season. Their market channels mainly traditional market, whilst their competitor also active to promote on modern market, traditional market and e-commerce. The competitor is rising, with low barrier entry for this sectors, and with highly active marketing activities, causing Gerak Tani lost the competition, and growth stagnant in the last 5 years, with no product innovation and low of brand awareness. With the internal and external analysis, Author suggested gerak tani to revitalized their business strategy, by implementing the suggested organization structure, implement digitalization, enhanced marketing activities, launch new premium product, and product licensing strategy from another company to generate revenue. This strategy could solve the problems on company’s stagnant growth, low on product innovation, and low on brand awareness.