PROPOSED DEVELOPMENT STRATEGY FOR GREEN DIESEL PRODUCT IN INDUSTRIAL FUEL MARKET
Pertamina is a state owned enterprise (SOE) that carries out integrated business in energy business covering upstream, midstream and downstream as well as new and renewable energy based on strong commercial principles. Industrial Fuel Marketing (IFM) division is part of Sub-holding Commercial &...
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| Main Author: | |
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| Format: | Theses |
| Language: | Indonesia |
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| Online Access: | https://digilib.itb.ac.id/gdl/view/66797 |
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| Institution: | Institut Teknologi Bandung |
| Language: | Indonesia |
| Summary: | Pertamina is a state owned enterprise (SOE) that carries out integrated business in energy business covering upstream, midstream and downstream as well as new and renewable energy based on strong commercial principles. Industrial Fuel Marketing (IFM) division is part of Sub-holding Commercial & Trading, established to distribute and sale fuel product for Industry and Marine sectors. Pertamina IFM currently hold more than 70% of Domestic Share. The open competition among fuel suppliers is challenge for Pertamina to make business sustainability and growth.
In 2019, Pertamina is assigned by government to develop Biorefinery that will be placed In RU III Plaju which is closed to sources of CPO (Crude Palm Oil) producer with capacity 20.000 barrel/day. The Biorefinery will produce Green Diesel from CPO as main product. Green Diesel is different characteristic with Biofuel (FAME) which is currently used for blending Biodiesel B30, it is better quality in term of energy efficiency and environment friendly. Government willing to implement the green fuels because green fuel widely seen as a promising alternative transportation fuel for reduce dependence on petroleum-based fuels, as well as to reduce climate change and reduce fossil fuel import.
There are several issues regarding biorefinery business in term of Green Diesel Market which are CPO price is still higher than crude oil price therefore the Green Fuel price will be higher than Petroleum Diesel. In accordance with those issues, it will need business strategic in Biorefinery implementation. In this case, Author will propose strategic marketing of Green Diesel to penetrate Industrial Fuel Market. Unfortunately, In Industrial Fuel sector there is regarding competition among fuel suppliers which currently more than 200 suppliers.
The objective of research is developing marketing strategy for Green Diesel product as new Pertamina’s product in Industrial Fuel Market (IFM). To solve the problem, the conceptual framework is necessary to have right strategies that are appropriate for the company. In this final project will carry out the external and internal analysis, for external analysis using Market Analysis, Porter Five Forces Analysis, Competitor Analysis and Consumer Analysis. Whereas the internal analysis will use value chain activities, 4P Marketing Mix, Existing Business Model Canvas and VRIO Framework. The matching stage used TOWS Matrix and Internal External Matrix to develop alternative strategy, in the end of the stage the final analysis will use QSPM to evaluate the feasibility of each of these alternative strategies.
Based on QSPM evaluation that has been carried out, there are top five strategies feasible to be implemented which are Development of target market priority on SOE and government institution, coopetition strategy, development digital marketing, development of employee capabilities on Green Diesel business and development of flexible term of Payment (TOP).
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