DEVELOPING EFFECTIVE MARKETING STRATEGY TO ENHANCE MARKET SHARE (CASE STUDY: CV MANUNGGAL SINAR SEJAHTERA)

• Main Author: Kusumaningrum, Novi
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/62594
• Institution: Institut Teknologi Bandung

The tobacco industry has a multiplier effect on the Indonesian economy, absorbing vast amounts of jobs and becoming the highest excise tax income source. Moreover, Indonesia has the largest cigarette market in ASEAN, attracting several businesses to compete within this sector. One of Indonesia's cigarette manufacturers, CV Manunggal Sinar Sejahtera (pseudonym), has launched a new cigarette brand to enter West Java, namely Supreme Bold (pseudonym). However, the company's experience several issues such as low market share compared to the major competitors, rate of market share achievement and sales revenue performance that stays below the company’s expected target. Thus, this research aims to determine the factors that should be improved to influence consumer purchase intention, gain a better understanding from potential and existing customers of Supreme Bold, and finally generate an effective marketing strategy that could improve the market share. To formulate the proposed strategy, the author conducts internal and external analysis. Internal analysis consists of Segmentation, Targeting, Positioning (STP), marketing mix theory, and marketing resource analysis. The author utilizes PESTEL analysis, competitor analysis, and a consumer research analysis for the external analysis. The questionnaire will be used to gather information from respondents for the consumer research analysis. The consumer research analysis utilizes the quantitative research method to examine the relationship between selected marketing mix and purchase intention, with brand awareness and perceived quality as mediators. The respondent consists of 218 people who have purchased the cigarettes brand and also potential consumers who have not purchased the brand. The result reveals that all hypotheses are accepted using Partial Least Squares-Structural Equation Modelling (PLS-SEM), where there is a positive and significant effect of product and price variable toward perceived quality, also place and promotion variables toward brand awareness, also perceived quality and brand awareness toward purchase intention. The study found disparities between non-buyers and buyers of the Supreme Bold cigarette brand. Perceived quality has the highest impact on purchase intention for potential customers, while brand awareness has the highest impact on purchase intention for existing customers. According to the internal and external analysis, the author formulates the strategy using the IE matrix and determines the priority using the QSPM matrix. The author found that the major root causes of the company are mostly contributed by place and promotion marketing mix, and the company should focus on marketing penetration strategy. Therefore, there are several proposed strategies such as developing end-users’ loyalty points system, develop above the line and below the line advertising materials with clearer brand image, develop retail community partnership, technology improvement to increase sales performance, and develop in