PROPOSE BUSINESS STRATEGY FOR NPK FERTILIZER IN RETAIL SECTOR (CASE STUDY: PT PUPUK KALTIM)

• Main Author: Ariseno, Rahmadian
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/63267
• Institution: Institut Teknologi Bandung

Pupuk Kalimantan Timur is one of the companies in Indonesia that produces NPK fertilizer. To broaden its sales base, the company began selling to the retail level in 2018, primarily to distributors and retailers. However, from the beginning of the sale until 2020, NPK Marketing Department has never met the shareholders' sales target. Meanwhile, the retail sector's sale of NPK products is a component of the company's Key Performance Indicator (KPI). The purpose of this study is to develop a business strategy to increase the sales performance of NPK products in the retail sector. The authors identify the causes for the company's failure to meet sales targets by examining both internal and external factors affecting the sale of non-subsidized retail NPK products. Numerous pieces of information were gathered from primary and secondary sources, both internal and external to the company. Interviews with company employees and retail store owners were conducted, as well as a survey of distributors and retailers to determine their perceptions of Pupuk Kaltim's non-subsidized NPK products. While secondary sources include internal company reports such as monthly and annual reports, external sources include reports from the Central Statistics Agency (BPS) and the Ministry. The data is then analyzed to determine the root cause of the NPK Marketing Department was unable to meet the predetermined objective. Porter's Five Forces, PESTEL, competitor analysis, marketing mix, and STP analysis are all used in the analysis. To address these issues, a strategy was developed using the TOWS framework. Additionally, the author makes improvements to STP and incorporates several new products into the Business Model Canvas. The root cause of failing to meet retail NPK product sales targets is the purchase of raw materials in small quantities, production locations located far from the target market, the absence of a clear and specific STP, the absence of sales incentives for distributors and retailers, and less flexible payment methods. To address these issues, the strategy will be to reduce product prices through joint procurement and outsourced the NPK production. To encourage distributors, retailers, and farmers to purchase non-subsidized NPK products, the following steps should be taken: produce retail non-subsidized NPK in smaller packaging sizes, develop new products in collaboration with banks, insurance, and agricultural product offtaker companies, conduct promotions and marketing more focused on food crop farming in East Java, South Sulawesi, South Kalimantan, and West Nusa Tenggara and provide incentives to distributors, retailers, and farmers who purchase or sell in certain quantities.