PROPOSED MARKETING STRATEGY FOR INCREASING SALES OF PT. PANCI BERSAMA

• Main Author: Puspita Sari, Dyah
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/79852
• Institution: Institut Teknologi Bandung

In the first quarter of 2020, Indonesia's economic conditions reflect a 4.54% increase in household consumption spending over the previous year. This situation is caused by rising public demand for daily domestic appliances. Because of this tendency, home appliance firms are now facing rivalry, which has resulted in a focus on increasing product quality and expanding market share. PT. PANCI BERSAMA, a company founded in 1999, operates in the field of direct sales of household appliances with its distribution center located in Bogor City, West Java. During its 23 years of operation, the company has effectively marketed various products throughout Indonesia, including Wok Pan Streamers, Gas Stoves, Stock Pots, Pot Sets, Choppers, Pressure Cookers, and Blenders. People who live in rural areas and subareas, referred to as tier 3 and tier 4, are the company's key market categories. The company uses a push market system to market its products, which is a strategy that integrates product production with its marketing approach, focusing on cost-effective production to facilitate product promotion at prices below market prices to attract a wider consumer base. PT. PANCI BERSAMA is currently encountering challenges that represent the maturity stage in a company's product life cycle. Market saturation and declining company revenues as a result of customers' unwillingness to make more purchases have resulted in fluctuating current sales and decreasing profits. According to prior studies, customers who use credit tend to extend the life of durable items, minimizing their need for frequent replacements. Apart from that, a preliminary survey of previous buyers was completed. According to the survey results, only 30 percent of customers bought things from the company more than once, while the majority only bought things once. Furthermore, due to a variety of causes, including spending limitations and changing customer needs, 50% of respondents reported that they weren't planning to repurchase products from the company. In dealing with this condition, it is necessary to make immediate improvements in the product marketing strategy to prevent the current decline. The company must make improvements and innovations in product marketing to maintain revenue and the ability to compete in this industry. To increase sales and expand market share in the household appliances industry, it is necessary to carry out an in-depth identification of the company's position using comprehensive internal analysis and external analysis. The analysis was carried out using the Customer Analysis, STP (Segmenting, Targeting, and Positioning), Marketing Mix, Value Chain Analysis, VRIO Analysis PESTEL Analysis, Competitor Analysis, and Five Porter's Forces Analysis methods. External analysis is carried out to identify what opportunities and threats exist in the industry today that can disrupt the company's business activities while running its business. Aside from that, it is necessary to determine the aspects that influence customer product purchases in this market. Based on these characteristics, the company may develop the best approach to increase its competitive advantage. The analysis used to determine the factors that influence customer purchases in this industry is by examining the relationship between the 4P Marketing Mix (Product, Place, Price, and Promotion) on purchase intentions. According to the findings of the company's internal value chain analysis, the infrastructure is strong enough to support manufacturing activities, complete facilities that support staff performance, and a large distribution network throughout Indonesia. However, there are still market sectors that have not been explored in terms of marketing the product. This demonstrates a lack of diversity in the company's target market. STP research identified a strong company position in the present target market, which is rural housewives. To improve the company's conditions, a new target market has been switched to individuals of productive age from West Java's middle class, enabling present the market share to be expanded. For external analysis, the results suggest that industry competition is currently tightening, and substitute items have the potential to negatively impact company sales. Meanwhile, for customer analysis, the results revealed that product, price, and promotion variables had significant effects on customer intentions, but the place had no significant effect. In facing current challenges, strategic alternatives have been obtained, namely market development, loyalty programs, and Exploring promotional activities. This strategy aims to diversify market segments to increase sales and branding owned by the company. Implementation of these recommended strategies is expected to improve the company's market position and ensure sustainable competitiveness.