PROPOSED MARKETING STRATEGY TO OVERCOME MARKET UNCERTAINTY FOR ASIA PULP AND PAPER (APP) SINAR MAS

• Main Author: Hartono, Widi
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/65640
• Institution: Institut Teknologi Bandung

The paper industry has faced pressures from the digitalization process and climate change over the past five years. Currently, the war in Europe is adding to the pressure. Companies from the paper industry, such as Asia Pulp Paper (APP) Sinar Mas, must review their business strategies in facing this global market uncertainty. Using the Scenario Planning approach, this study finds two possible scenarios that companies can prepare for: the economy deteriorates into a world economic crisis, or the economy improves. Both scenarios show significant changes in market segmentation that can impact business and marketing strategies. The company has a Competitive Advantage in the source of raw materials. Therefore, the company can apply the Cost Strategy in facing a crisis. The advantage can also help companies carry out a Focused Differentiation Strategy when the economy improves. This is reinforced by the primary data found from the study. 90% of respondents feel that the economic crisis will occur due to political instability in the world, but during the crisis they still hope that the company will innovate to create more environmentally friendly products that fit the need of the future generations. Therefore, to be able to win the market, the company must be able to position the company's products and brands to be relevant to market changes. Meanwhile, at a time when uncertainty is still high, like today, companies can make internal improvements to adapt to rapid technological changes and optimize performance to be ready when things are settling down.