Difference Strategy on Gerabah Businesses in Takalar District

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Difference Strategy on Gerabah Businesses in Takalar District

Zainal Ruma¹, Abd. Muis Dilla², Sitti Hasbiah³ Universitas Negeri Makassar^1,2,3

Abstract. This research was conducted to describe the differentiation strategy undertaken by pottery craftsmen in Pattalassang District, Takalar Regency. The sampling technique used in this study was proportional random sampling. Collecting data in this study using questionnaire and interview techniques and procedures. The data analysis used was descriptive statistical analysis. The results of this study indicate that several pottery craftsmen have tried to improve the quality of the pottery they produce by using good quality raw materials and with new techniques that can improve the quality of their pottery. Pottery craftsmen develop products by making pottery products that have added value compared to those made by their parents. Starting from the development of the form of pottery, the development of carving or art, as well as the growing value of functions. In this case, customer service is considered good enough because the craftsmen can serve consumers friendly and can describe their pottery products well. It's just that there needs to be a promotion development carried out so that pottery products in Takalar Regency can be more widely known by consumers.

Keywords: Product quality, product development, customer service, business performance

INTRODUCTION

Small businesses are an important component in supporting economic progress in Indonesia. In macro terms, this sector can create huge job opportunities, starting from the last five years (2010-2014) it can absorb 97.30% of the workforce and creates added value to GDP of 56.53% compared to large industries. In addition, the growth of the small business sector during the last five years (2009-2013) reached 10.89%, while Large Industry (IB) actually decreased by 7.38% (Ministry of Cooperatives and SMEs, 2014). This reality is in line with the opinion of Kuncoro (2000) that Indonesian SMEs significantly promote new jobs, new businesses, and make a major contribution to reducing poverty.

Several important developments in business development have been achieved, but it is felt that small businesses have not grown as expected. Various problems that generally hinder industrial growth, as well as those specifically faced by certain industries are internal problems regarding non-optimal operations (from

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raw material supply, production capability, technological mastery, to product competitiveness) and external problems regarding alignments. as well as public awareness of using domestic products (Ministry of Industry, 2014). This condition has an impact on the resulting low productivity and not a few small businesses have experienced business failures (Riyanti, 2003). This means that high performance of small businesses is an important necessity in survival.

Leading small businesses in Takalar Regency experienced relatively rapid growth during the last three years (2012-2014) in terms of the number of businesses and labor absorption, but did not make a significant contribution to PDRB Takalar Regency (BPS Takalar, 2014). This means that the economic growth in Takalar Regency is still not optimal and still needs improvement. This condition also illustrates that small businesses have not been able to provide maximum added value to the achievement of activities or regional economic performance. One of the leading commodity core industries in Takalar Regency is the pottery business.

The main problem for the pottery business is that the level of technology used is still limited so that product creation is still limited, high market competition, market control by imported products also makes it more difficult for the marketing of pottery. In terms of the strength of the pottery business is the availability of sufficient raw materials and labor (BPS, Takalar 2014).

This condition is consistent with what Tambunan (2010) states that business development in small businesses in developing countries (NSB) is impeded by many obstacles. Common barriers include limited working capital and investment, difficulties in marketing, distribution and procurement of raw materials and other inputs, limited access to information on market and other opportunities, and technological capabilities. To overcome these various problems, companies need a strategy in determining competitive advantages and determining ways to improve business performance.

Business performance is highly dependent on the strategies used in maximizing competitive advantage and minimizing competitive limitations (Hunger and Wheelen, 2003; David, 2009; Pearce and Robinson, 2011; Hitt et al. 2011). Many researchers have proven about the importance of corporate strategy to gain competitive advantage and build good performance (Porter, 1985; Barney, 1991;

Mintzberg and Lampel, 1999). In addition, Gupta and Lonial, (1998); Nandakumar et al. (2010); Personal and Kanai (2011) provide the same evidence that strategy affects business performance.

When a business wants to win the competition, it is required to manage the business better than its competitors. Hunger and Wheelen (2003) suggest that business strategy is related to the position of a business in the industry relative to its competitors. Porter (1980) states that there are three generic business strategy approaches that will potentially succeed in outperforming competitors, namely overall low cost leadership, differentiation and focus. The overarching cost advantage strategy relies on a capability that is unique enough to achieve and maintain a low

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cost position. The differentiation strategy is designed to attract customers who have a special sensitivity for a product attribute. Focus strategy,

According to Porter, a company can become "stuck in the middle" for one of two reasons: (1) Failure to develop one of the three strategic directions will allow it to be stuck in the middle, leading to poor performance; (2) If you try to simultaneously pursue more than one generic strategy, it can become stuck in the middle (Kim et al., 2004). The results of the study by Nandakumar et al. (2010) show that Porter's generic competitive strategy has an effect on company performance. Firms that adopt either a cost-leadership or differentiation strategy do better than an integrated strategy (cost leadership and differentiation) that does not have a dominant strategic orientation. The integrated strategy group has lower performance compared to cost leadership and differentiation in terms of financial performance measures. Based on the description above, the researcher is interested in studying the differentiation strategy of the pottery business in Takalar Regency.

RESEARCH METHODS

This research approach is descriptive quantitative research with the type of survey research. This research variable is measured by research instruments, so that data consisting of numbers can be analyzed based on statistical procedures (Creswell, 2010). The population in this study were all pottery businesses in Takalar Regency. The total population is 220 businesses (BPS Takalar, 2019). The sampling technique used was proportional random sampling. The number of samples taken in this study is based on the opinion of Slovin (Umar, 2001). Based on this formula, a sample of 142 pottery businesses in Takalar Regency was obtained which would then be the response to this study. The type of data used in this research is primary data which is obtained directly from the research object. The data source is the owner of a pottery business in Takalar Regency. In this study, data collection methods used were questionnaires and interviews.

RESEARCH AND DISCUSSION

The descriptive results of the respondents from this study showed that the majority of pottery craftsmen in Takalar Regency were occupied by men, namely as many as 77.6% who were respondents in this study. For women, only 22.54% were sampled in this study. This is because in Takalar District, there are more men who work as pottery craftsmen because it is a fairly tough job, for example in terms of collecting clay, drying and so on. For wives, especially those with wife status, usually help their husbands in the manufacturing process. In terms of age, there were 13.38% of respondents aged 30-35 years, 26.77% of respondents aged 36-41 years, 35.91% of respondents aged 42-47 years, 14.79% of respondents aged 48-53 years and 9.

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"A valid instrument means that the measuring instrument used to obtain data (measure) is valid. Valid means that the instrument can be used to measure what should be measured ”(Sugiyono, 2004). The results of the validity test can be seen as follows:

Table 1 Validity Test of Product Quality (X1)

Indicator rhitung Sig. Information

X1.1 0.792 0.30 Valid

X1.2 0.693 0.30 Valid

X1.3 0.776 0.30 Valid

Source: IBM SPSS V21 Data Processing Results, 2020 Table 2 Validity Test of Product Development (X2)

X2.1 0.806 0.30 Valid

X2.2 0823 0.30 Valid

X2.3 0.726 0.30 Valid

Source: IBM SPSS V21 Data Processing Results, 2020 Table 3 Validity Test of Customer Service (X3)

X3.1 0.801 0.30 Valid

X3.2 0.799 0.30 Valid

X3.3 0.739 0.30 Valid

Source: IBM SPSS V21 Data Processing Results, 2020 Table 4 Validity Test of Business Performance (Y)

Y1.1 0.760 0.30 Valid

Y1.2 0.879 0.30 Valid

Y1.3 0868 0.30 Valid

Source: IBM SPSS V21 Data Processing Results, 2020 The validity test used in this research instrument was to perform a bivariate correlation between each indicator score and the total construct score, namely the Pearson correlation coefficients. If the correlation is significant (> 0.30), then the question indicator is valid. The results of the calculation of the validity test based on the tables above, show that the coefficient of the relationship is greater than the

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significant correlation, namely 0.30. It can be concluded that all items from the research questionnaire are valid and can be used as a viable research instrument.

The reliability test is used to determine the extent of the consistency of this measuring instrument, whether it can be relied on further. The reliability test was carried out by calculating the cronbach alpha of each instrument variable in the study. It is said to be reliable if the instrument variable has a cronbach alpha of more than 0.60. Reliability Test Results can be seen as follows:

Table 5 Reliability Test

Product Quality (X1) 0.617 0.60 Reliable

Product Development (X2) 0.687 0.60 Reliable

Customer Service (X3) 0.676 0.60 Reliable

Business Performance (Y) 0.785 0.60 Reliable

Source: IBM SPSS V21 Data Processing Results, 2020 The results of the calculation of the reliability test from the table above, shows that the cronbach alpha value of all variables is greater than 0.60 so that it can be concluded that all variables in this questionnaire are reliable and can be used as a viable research instrument.

Correlation Analysis and Multiple Determination Analysis

Correlation analysis is a static technique used to measure the strength of the relationship between 2 variables and the extent to which the level of the relationship between the independent variable and the dependent variable. The following are the results of the correlation analysis test that have been processed as follows:

Table 6 Correlation Analysis Test Model Summary

Model R R

Squar e

Adjusted R Square

Std. Error of the Estimate

1 .307a .094 .074 2.20238

a. Predictors: (Constant), Product Services, Product Development, Product Quality

Source: IBM SPSS V21 Data Processing Results, 2020 Based on the table above, it states that the correlation coefficient (R) column is found to be 0.307, at 0.20 - 0.399. From these results it can be concluded that the relationship between the independent variables (product quality, product development, and customer service) has a low level of relationship.

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Differentiation strategy is the ability to provide unique and superior value to buyers in terms of quality, features / special characteristics, or after sales service (Hunger and Wheelen, 2003). Product differentiation is the differentiator between similar products, both with competitors and with our core products. From this difference it is hoped that it can better meet the needs and desires of consumers.

The number of similar products requires differentiation in order to attract consumers.

Therefore, doing innovation which is part of differentiation is very important. The following are indicators of the differentiation strategy carried out by pottery craftsmen in Takalar Regency, namely:

1. Product quality

Good product quality makes a product superior to competitors' products or similar products. Consumers will of course choose products that have good quality so it is very important to maintain the quality of a product.

Pottery craftsmen in Takalar Regency, as previously explained, are said to have not been able to produce good quality pottery. This is because during the manufacturing or burning process, the pottery is often broken. Poor quality clay and less quality. Manual tillage techniques by craftsmen result in the clay being uneven when stirring and making it less plastic. Most of the craftsmen did not have the courage to use clay materials from outside the area or mix them.

The way that can be done to improve the products of these pottery craftsmen is to use quality raw materials and make changes to some parts of the product that are considered attractive to consumers. Clay is the main raw material for developing the quality of pottery in Takalar Regency, because the quality of the raw material will determine the strength of the pottery products it produces. As for the use of raw materials from outside the region, it is necessary to add alternatives to existing materials. This is done so that the craftsmen can compare the land obtained from the surrounding area with land from outside the area. The use of good quality raw materials is expected to make the product better when compared to other products.

2. Product Development

Product development is a differentiation strategy that can be carried out to develop products, improve old products or increase product usability to existing market segments, assuming customers want new elements regarding the product.

Product development is a process of changes made to existing products by adding new innovations or adding value to old goods by converting them into these products. In Takalar Regency itself, although the process or technique used is still in the traditional way, in terms of form, function and decoration, there have been more varied developments compared to traditional or transitional pottery.

In the 1980s in Takalar District, many craftsmen made traditional pottery for kitchen utensils because of the high interest and need of consumers from the local community. The pottery in question includes gumbang, katoang, pallu, piggy bank, cauldron, and others. The decoration that is developing is still very limited. It is also

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still a hereditary ornament from earlier craftsmen who imitates and repeats what their parents saw when decorating the pottery. The color of the clay used in the pottery decoration shows that the craftsmen are more concerned with functioning as a living tool than their aesthetics.

The form of pottery that developed after 1991 is a transitional form of pottery, which means that its shape appeared during the transition from traditional to modern forms. Transitional pottery, especially chairs, appeared in Takalar Regency at first as an imitation of North Sulawesi Pulutan pottery products. Pottery chairs developed and many previously as craftsmen of traditional pots or pottery have turned to craftsmen of chair pottery. Takalar District in the early 1990s was better known as a place for making jars and flower pots. The change in form and function of traditional pottery into transitional pottery is due to the changing needs of consumers who have also changed. Consumers have responded well to the development of this form of pottery so that many traditional craftsmen have turned into transitional pottery craftsmen.

The development of the pottery function from kitchen utensils to chairs leads the craftsmen to switch forming techniques, from face-to-ground techniques to massage techniques and rotary techniques. However, because the pottery chair market is promising, the craftsmen try to keep up with this development. Pottery chairs made by craftsmen in Takalar Regency are in great demand, especially by local consumers. The combination of practical and decorative functions in pottery chairs is one of the developments that has succeeded in diverting many craftsmen in Takalar Regency from making pottery for kitchen utensils to making chair pottery.

The impetus for a development or change arose from the craftsmen themselves who had made efforts to develop designs, functions, and other forms of pottery. The development of this product is also inseparable from external parties who provide support and motivation, such as government agencies, universities, as well as positive feedback obtained from consumers. With this product development, it is assumed that the pottery craftsmen in Takalar district can understand the needs and desires of consumers. It's just that product development is not enough, craftsmen also need to develop in terms of good marketing and distribution so that the products made can be better known to consumers who are outside Takalar Regency.

3. Customer service

Another part of product differentiation is attractive offers. This attractive offer can be done by being honest in offering, including disclosing to consumers about the advantages and disadvantages of the products being offered so that consumers get accurate information. Even though they cannot innovate or develop the products they offer, at least the craftsmen can make differentiations in the form of services.

Thus, consumers will choose these products based on the convenience of the service they get. Therefore, conveying descriptions honestly is one of the things that is quite

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important to do. From things like this, consumers can make purchases back to us or recommend the product to friends or family.

4. Business Performance

Business performance is a complete display of the state of the company for a certain period of time, is a result or achievement that is influenced by the company's operational activities in utilizing its resources. With this increase in business performance, it is hoped that these pottery craftsmen or pottery SMEs can further improve their products. Not in terms of type, but also in terms of function, art, promotion and others. Good synergy and good time management will make its business performance increase.

CONCLUSION

The existence of ceramics in Takalar has undergone a long process of time.

The shape of ceramics has changed over time. In the 1980s in Takalar District, many craftsmen made traditional pottery for kitchen utensils because of the high interest and need of consumers from the local community. In the early 1990s it was better known as a place for making jars and flower pots. The change in form and function of traditional pottery into transitional pottery is due to the changing needs of consumers who have also changed. Pottery craftsmen in Takalar Regency, as previously explained, are said to have not been able to produce good quality pottery.

This is because during the manufacturing or burning process, the pottery is often broken. Poor quality clay and less quality. Manual tillage techniques by craftsmen result in the clay being uneven when stirring and making it less plastic. Pottery chairs made by craftsmen in Takalar Regency are in great demand, especially by local consumers. The combination of practical and decorative functions in pottery chairs is one of the developments that has succeeded in diverting many craftsmen in Takalar Regency from making pottery for kitchen utensils to making chair pottery. Another part of product differentiation is attractive offers. This attractive offer can be done by being honest in offering, including disclosing to consumers about the advantages and disadvantages of the products being offered so that consumers get accurate information. Even though they cannot innovate or develop the products they offer, at least the craftsmen can make differentiations in the form of services. Business performance is a complete display of the state of the company for a certain period of time, is a result or achievement that is influenced by the company's operational activities in utilizing its resources.

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