PROPOSED BUSINESS STRATEGY FOR PT CAIRAN FRIKSI IN THE FOOD AND BEVERAGE INDUSTRY AS RESPONSE TO PANDEMIC COVID-19

• Main Author: Kristian H Pasaribu, Willis
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/63597
• Institution: Institut Teknologi Bandung

PT CAIRAN FRIKSI is the largest independent lubricants supplier in the world which is a global group headquartered in Germany. PT CAIRAN FRIKSI product portfolios has six categories which are automotive lubricants, industrial lubricants, lubricating greases, metal processing lubricants, special application lubricants, and services. In the pandemic situation, most of the business sectors were impacted and experienced a decline in terms of growth due to the pandemic. Being the basic needs of human’s lives in a pandemic situation, the food industry has positive growth in its business industry which is being targeted by PT CAIRAN FRIKSI to optimize the sales in the Food and Beverages industry by proposing and implementing the business strategy. However, from 2020 up to H1 2021, PT CAIRAN FRIKSI sales performance from the target segment showed unsatisfactory results and far from the target that has been set. To analyze and research the business strategy for PT CAIRAN FRIKSI target segment, the researcher uses qualitative methods which are supported by primary data from PT CAIRAN FRIKSI’s top management internal interview while the secondary data is gathered from the internal company data and published materials. In this research, AFI framework will be used as the conceptual framework. PESTEL framework and Porter’s Five forces are the framework that is used to analyze the external environment while the internal environment uses VRIO analysis. For the primary data, an interview guideline is arranged and set for the key stakeholders which have experience in selling food grade lubricants to get detailed information about the company's strategy, current situations and internal conditions. Based on the primary and secondary data that has been gathered, the business strategy will be determined by using Porter’s Generic Strategy, Diamond Strategy and Business Model Canvas to find the suitable business strategy and the implementation for PT CAIRAN FRIKSI Food and Beverages Industry. From that analysis, it can be concluded that PT CAIRAN FRIKSI has strength in technology and complete certifications of the food grade lubricant products but weakness in supply and distribution network. To grasp the Food and Beverage industry, PT CAIRAN FRIKSI needs to focus on the niche market in this Industry. This strategy is also aligned with the company’s DNA which provides the advanced technology in Lubricants and the competence people to service its customers. By providing an excellent service which no competitors could match, PT CAIRAN FRIKSI can charge the customers with the premium price because of its exceptional service to the customers. The researcher recommends the short term strategy for 1 to 3 years and long term strategy for more than 3 years to give solutions to the problem that the company currently is facing. The short term strategy is PT CAIRAN FRIKSI should expand its distribution network by increasing its distributors number. For long term strategy, PT CAIRAN FRIKSI offers a long term agreement in 2 to 3 years contract to customers by providing additional equipment such as automatic lubrication system and the grease pump that currently PT CAIRAN FRIKSI group owns. Researcher has developed the business strategy recommendation and the implementation plan to execute the strategy in order to grasp the market and increase the sales performance in the Food and Beverages Industry.