Marketing Development Strategy of Fish Cracker
"Study UMKM Tayamum Mamy" in The Village of Srowo, Kecamatan Sidayu, Gresik District – East Java
Defiahmadrinaldi, I Gede Arimbawa, Hepy Octalia Elfa Kolina Departement of Management, Narotama University Surabaya
Jl. Arief Rachman Hakim No. 51 Surabaya, Indonesia
[email protected], [email protected], [email protected]
Abstract
This study aims to analyze the development strategy of fish cracker marketing "study of tayammum mamy fish cracker" in Srowo village, Sidayu district, Gresik district. The population of this research is tayammum mamy fish cracker company. The sample used is a tayammum mamy fish cracker company with a purposive sampling method. The data collection technique used is documentation in the form of primary data. The analysis of this research uses SWOT analysis. The result of this research is the marketing strategy UMKM of tayammum mamy fish cracker applying segmentation, targeting and positioning correctly and precisely. Then use the 7P Marketing Mix which consists of a product strategy, a price strategy, a place determination strategy, a promotion strategy.
Keywords
Positioning, Segmentation, Targeting 1. Introduction
A marketing development strategy is one way of winning a sustainable competitive advantage for companies that produce goods or services. Marketing strategy can be viewed as one of the basics used in compiling a company plan as a whole. In view of the extent of the problems that exist in the company, it is necessary to have a comprehensive planning to serve as a guide for the company segment in carrying out its activities, another reason that shows the importance of a marketing strategy is the tougher company competition in general. A product that is issued must have its own advantages, disadvantages, to assess these advantages and disadvantages, usually using analysis or research. SWOT analysis is considered capable of assessing products and marketing their products.
Figure 1. Introduction
Source: From the data above, the production of fish crackers is increasing but the price of these crackers always increases along with the soaring price of the cracker raw material.
1.1. Literature Review 1.1.1. Marketing strategy
Marketing is one of the main desires made by businesses in order to survive in order to develop and earn a profit. Marketing activities must also be able to provide satisfaction to consumers if they want their business to run and make a profit. Therefore, a marketing strategy has a very important role for the success of a business in general and in the field of marketing in particular. A strategy is a plan that specifies the goals of the organization, in terms of services to be offered to the public. This describes the basic mission of the organization, the goals and objectives to be achieved, and the ways in which the organization's resources are used to achieve its goals (Dh & Irawan, 1989) Meanwhile, the notion of marketing is a social process in which one individual and group get what they need and want by creating, offering, and freely exchanging products and services of value with other parties. Kotler et al., (2005) Marketing strategy is the main approach that will be used by business units in achieving predetermined targets, which includes key decisions regarding target markets, product placement in the market, marketing mix and cost levels. necessary marketing. Kotler (1995) Meanwhile, according to other opinions about Marketing Strategy is not a number of specific actions, but rather a statement that shows the main marketing efforts directed to achieve goals. Dharmmesta & Handoko (2012) From the above definition it can be concluded that a marketing strategy plan is carried out to identify a problem, which is used to a marketing strategy out a marketing strategy.
1.1.2. Marketing concept
With the increase in technological capabilities and community needs, the concept of marketing has also developed. According to Kotler et al. (2005), the concept of marketing emphasizes that the key to achieving organizational goals is that companies must be more effective than competitors in creating, delivering, and communicating customer value to the selected target market. If the business is to be successful and survive, it must be able to adapt to the habits in society. Because to provide satisfaction to consumers and society for the long term, this concept is called the social marketing concept, which can be interpreted as follows: The community marketing concept emphasizes that the task of an organization is to determine its needs, wants, and the interests of the target market and provide the desired satisfaction more effectively and efficiently than competitors in a way that maintains or improves the welfare of society and consumers. Kotler et al., (2005)
"While the definition of the concept of marketing is" a business philosophy which states that satisfying consumer needs is an economic and social condition for the survival of the company. Dharmmesta & Handoko (2012) "While the definition of the concept of marketing is" a business philosophy which states that satisfying consumer needs is an economic and social condition for the company's survival". Dharmmesta & Handoko, (2012) "While the definition of the concept of marketing is" a business philosophy which states that satisfying consumer needs is an economic and social condition for the company's survival ". (Dharmmesta & Handoko, 2012) Marketing strategy planning.
In an effort, strategic planning needs to be developed because it is a decision-making process that determines whether a business is superior, can or even experiences destruction. Decision making is carried out by making the best use of the strengths in the business or business resources in an ever-changing environment.
Strategic planning can be interpreted as follows: "Strategic planning is a managerial process that includes the development and maintenance of an ongoing harmony between organizational goals and resources and the various opportunities that exist in its environment". Kotler (1995) The task of strategic planning is to design the company in such a way, in order to always consist of business activities that are healthy enough to sustain the viability of the company even though some of its business activities are in severe decline Kotler (1995) Marketing strategy planning developed by the company must be detailed, and the company must increase the strengths, opportunities and minimize the weaknesses and threats that the company has.
1.1.3. Environmental analysis of the company
By conducting an environmental analysis means providing opportunities for strategic planning to anticipate opportunities and make plans to carry out selected responses to these opportunities. It also assists in strategic planning to develop early warning systems to avoid threats or develop strategies that can turn threats into business profits. External factors influence a company's choice of direction and action, which in turn influences its organizational structure and internal processes. These factors that make up the external environment can be divided into three interrelated subcategories: factors in the distant environment, factors in the industrial environment, and factors in the operating environment. In the opinion of John A. Pearce explained that the factors affecting the business environment are economic factors, social factors, political factors, technological factors, and ecological factors. It can be explained that:
1. Economic factors, relating to the nature and direction of the economy in which a company operates.
Because consumption patterns are influenced by the relative prosperity of various market segments.
2. Social factors that affect a company include beliefs, values, attitudes, opinions and lifestyle of the community in the company's external environment, which develops from cultural, ecological, demographic, religious, educational and ethnic conditions.
3. Political factors, direction and stability of political factors are the main considerations of managers in formulating corporate strategies.
4. Technological factors, the fourth factor in this environment involves technological factors. To avoid obsolescence and increase innovation, a company must be aware of the technology companies that might influence its industry.
5. Ecological factors, the most important factor in the company's environment is the reciprocal relationship between the company and the ecology. The term ecology refers to the relationship between humans and other living things, the air, land, and water that support them. Pearce et al., (2007) In other words, the business environment is a collection of elements in the wider society that affect an industry and the companies that exist in it.
1.1.4. SWOT analysis
SWOT stands for the words Strength (company strength) Weaknesses (company weakness), Opportunities (business opportunities) and Threats (obstacles to achieving goals). SWOT analysis is a "well- known historical technique in which managers create a quick overview of the company's strategic situation”.
Pearce et al. (2007) SWOT analysis is an evaluation of the overall strengths, weaknesses, opportunities and threats. " Furthermore, Rangkuti (2008) states that: "SWOT analysis compares the external factors, opportunities and threats, with internal factors of strength (strenghts) and weaknesses (weaknesses) (Kotler &
Keller, 2008).
From the above definitions, it can be said that a SWOT analysis is the systematic identification of various factors to decide the company's strategy. This analysis is based on logic that maximizes the strengths (strengths) and opportunities (opportunities), but together can minimize weaknesses and threats. The four internal and external factors in SWOT can be described in detail as follows.
1. Opportunity (opportunity) is the main situation that is profitable in the environment of a company. Key trends are one source of opportunity. Identification of previously overlooked market segments, companies in competitive or regulatory conditions, technology companies, and improved buying or supplier relationships can be opportunities for the company.
2. Threats are the main unfavorable situation in a company environment. Threats are a major barrier for a company to reach its current or desired position.
3. Strength is a resource or capability that is controlled by or available to a company which makes the company relatively superior to its competitors in meeting the needs of the customers it serves.
4. Weakness is a limitation or deficiency in one or more resources or capabilities of a company relative to its competitors, which becomes an obstacle in meeting customer needs effectively (Pearce et al., 2007).
1.2. Research Concept Framework
Figure 2. Conceptual Framework Source: Author 2. Methodology
This research is a qualitative descriptive study using primary data as research material. In this study the Increasing competitiveness
UMKM Fish Crackers in Srowo Village Kec. Sidayu district. gresik
SWOT analysis
Marketing strategy implementation
sample size of UMKM companies tayammum mamy fish cracker. Samples were selected based on selection criteria.
Data collection techniques are the most strategic steps in research, because the main purpose of the study is to collect data (Sugiyono, 2009). Data collection techniques in this study using interview techniques. This interview method is used to collect the results of the SWOT analysis. Data analysis techniques using SWOT analysis with analysis of internal and external strategic factor ( IFAS – EFAS ). Hypothesis testing testing is done using the EFAS and IFAS tables.
3. Result and Discussion 3.1. SWOT analysis
SWOT analysis or TOWS is a qualitative research technique tool to identify various factors systematically to formulate a strategy to increase the volume level of a company's product sales. This analysis is based on logic that can maximize strength (strength) and opportunities (opportunities), but at the same time can minimize weakness (weakness) and threats (threats). The model used at this stage consists of an internal strategy factor matrix and an external strategy factor matrix. However, after making the IFAS matrix, the internal and external factors will be determined in advance from the respective weights (strengths, opportunities, weaknesses, and threats.
Table 1. Determination of v eights and ratings Internal f actors of strength
Internal Factors Of Power R1 R2 R3 R4 R5 total Rating Weight Score How do customers respond to the
quality and guarantee of the taste of the fish crackers produced?
3 0 0 0 0 3 4 0.14 0.57
What is the level of price competitiveness of the fish cracker
products offered to customers
3 0 0 0 0 3 4 0.14 0.57
What is the accuracy and safety of the delivery of fish crackers to customers.
4 0 0 0 0 4 3 0.19 0.57
What is the ability of the marketers to
sell fish crackers to consumers 2 0 0 0 0 2 3 0.10 0.29
How is the implementation of activities to promote fish cracker products to
potential consumers
2 0 0 0 0 2 3 0.10 0.29
How does the physical evidence appear on the packaging of fish crackers?
3 0 0 0 0 3 3 0.14 0.43
According to Bro. what is the condition of the production equipment / technology used in the production of
fish crackers today
4 0 0 0 0 4 4 0.19 0.76
Total Total 21 21 1.00 3.48
Table 2. Determination of weights and ratings Internal factors of weakness
No Internal Weaknesses R 1 R 2 R 3 R 4 R 5 Total Rating Weight Score 1
What is the level of compliance with the standardization of the
resulting fish crackers.
4 0 0 0 0 4 1 0.22 0.22
2 How to determine the selling price of products that have considered production costs etc.
4 0 0 0 0 4 1 0.22 0.22
3. What is the ability of the marketers to sell fish crackers?
3 0 0 0 0 3 2 0.17 0.33
4. What is the level of accuracy of the delivery of fish crackers to
customers.
4 0 0 0 0 4 1 0.22 0.22
5. How is the promotion of fish cracker products to consumers
4 0 0 0 0 4 2 0.22 0.44
6. How does the packaging for the fish cracker products look like?
2 0 0 0 0 2 2 0.11 0.22
7. How to use the level of technology used in the production of crackers
1 0 0 0 0 1 1 0.06 0.06
Total 18 1.00 1.72
Table 3. Determination of Weights and ratings External factors of opportunity
No Internal Weaknesses R 1 R 2 R 3 R 4 R 5 Total Rating Weight Score 1
What is the level of compliance with the standardization of the
resulting fish crackers.
4 0 0 0 0 4 1 0.22 0.22
2.
How to determine the selling price of products that have considered
production costs etc. 4 0 0 0 0 4 1 0.22 0.22
3. What is the ability of the marketers
to sell fish crackers? 3 0 0 0 0 3 2 0.17 0.33
4.
What is the level of accuracy of the delivery of fish crackers to
customers.
4 0 0 0 0 4 1 0.22 0.22
5. How is the promotion of fish
cracker products to consumers 4 0 0 0 0 4 2 0.22 0.44
6. How does the packaging for the
fish cracker products look like? 2 0 0 0 0 2 2 0.11 0.22
7. How to use the level of technology
used in the production of crackers 1 0 0 0 0 1 1 0.06 0.06
Total 18 1.00 1.72
Tabel 4. Determination of Weight s an ratings Etern 1 factors of opportunity
No. Internal Weaknesses R1 R2 R3 R4 R5 Total Rating Weight Score 1 What is the level of compliance with
the standardization of the resulting fish crackers.
4 0 0 0 0 4 1 0.22 0.22
2 How to determine the selling price of products that have considered
production costs etc.
4 0 0 0 0 4 1 0.22 0.22
3. What is the ability of the marketers to sell fish crackers?
3 0 0 0 0 3 2 0.17 0.33
4. What is the level of accuracy of the delivery of fish crackers to
customers.
4 0 0 0 0 4 1 0.22 0.22
5. How is the promotion of fish cracker products to consumers
4 0 0 0 0 4 2 0.22 0.44
6. How does the packaging for the fish cracker products look like?
2 0 0 0 0 2 2 0.11 0.22
7. How to use the level of technology used in the production of crackers
1 0 0 0 0 1 1 0.06 0.06
Total 18 1.00 1.72
Table 5. Determinaion on o Weights and ratings External factors of opportunity
No. External Opportunity Factors R1 R2 R3 R4 R5 Total Rating Weight Score 1 Availability of raw materials in the form of fresh fish
in the village area of Srowo
4 0 0 0 0 4 4 0.31 1.23
2. Increase in Indonesian people's consumption of fish crackers
3 0 0 0 0 3 3 0.23 0.69 3 There are opportunities to build partnerships with
fellow Krupuk Ikan UMKM around the village of Srowo Gresik
3 0 0 0 0 3 3 0.23 0.69
4 There are opportunities to build partnerships with customers in big cities throughout Indonesia
3 0 0 0 0 3 3 0.23 0.69 Total 13 13 1.00 3.30 Table 6. Determination of Weight and rating External factors threats
No. Threat External Factors R1 R2 R3 R4 R5 Total Rating Weight Score 1
The brand of fish crackers from large factories is very attached to the hearts of customers compared to fish
crackers from MSMEs.
3 0 0 0 0 3 3 0.375 1,125
2
The public's negative perception of the issue of health and cleanliness from the production of MSME fish
crackers
1 0 0 0 0 1 1 0.125 0.125 3. Decreased customer demand as a result of the
uncertainty over the end of the Covid-19 Pandemic 1 0 0 0 0 1 1 0.125 O.125 4.
Market demands that require standardization of fish cracker production that meet the requirements of the
IRT and BPOM.
3 0 0 0 0 3 3 0.375 1,125
Total 8 8 1 2.5
Based on the results of the calculation, the internal strength factor of UMKM tayammum mamy fish cracker is greater than the weakness factor, which is 0.69, where the number 0.69 is the difference from the total strength of 3.19 with a total weakness of 2.5, and for external factors the opportunities owned by cracker SMEs tayammum mamy fish is smaller than the threat factor which is equal to -0.23 which is the difference from the
total opportunity of 3.29 with a total threat of 3.52. From these calculations it can be obtained the appropriate marketing strategy formulation.
3.3 Opportunities KWADRAN
III
KWADRAN I
Strategi Turn- Arround
Strategi Agresif 0.8
1.75
1.75 Weakness Streng
ht 3.48
Strategi Defensif
Strategi Diversifikasi KWADRAN
IV
KWADRAN II Threats
2.5
Figure 3. Cartesian Diagram
Based on the cartecius diagram above, it is very clear that SMEs tayammum mamy fish crackers are on the right track, namely in quadrant 1 which indicates that the company is still a developing company. UMKM tayammum mamy fish cracker is still classified as a developing company when compared to other companies in similar fields. Even though it is still a developing company, UMKM tayammum mamy fish crackers must pay attention to opportunities and threats, both internally and externally. By paying attention to the factors that have been described, it will certainly increase the company's marketing growth which will increase sales.
3.2. SWOT matrix
The SWOT matrix is a matrix compiled using the strength, weakness, opportunity and threat variables identified in the internal strategic factors, the external strategic factors. This SWOT matrix illustrates how opportunities and threats from the company's external environment can be adjusted to the strengths and weaknesses of the company. The analysis using the SWOT matrix model uses data obtained from the internal strategy factor table and the external strategy factors for UMKM tayammum mamy fish cracker.
Table 7. SWOT Matrix
Internal factors Strength (Strengths) Weakness
External Factors
Quality and guaranteed taste of the fish crackers produced Prices for fish crackers are competitive and reasonable The accuracy and safety of the delivery of fish crackers to customers. The ability
of marketers to sell fish crackers Activities to promote fish cracker products to potential consumers Simple appearance and physical evidence on the
packaging of fish crackers The technology used in the production of
fish crackers
The resulting fish cracker production does not meet standardization The product selling price does not consider the production costs etc. Late delivery of fish crackers to customers.
Limited sales force in selling fish crackers
The promotion of fish cracker products is still word of mouth The packaging
for fish crackers is still traditional The technology used in the production
of goldfish crackers is traditional
Opportunities (Opportunities) SO strategy WO strategy
The abundance of raw material availability in the form of fresh fish
in the village area of Srowo Increased consumption of Indonesian
people who like to consume fish- based crackers The opening is to build partnerships with fellow UMKM tayammum mamy fish cracker around the village of Srowo
Gresik
The opening of building partnerships with customers in major cities
throughout Indonesia
Expand products so that customers can buy / sell in bulk
Improve product quality so that people can consume it
Deepen relationships with partners in order to create good relationships.
To deepen relationships with partners in big cities to create good relationships.
With the availability of raw materials, many UMKM tayammum mamy fish
crackers are trying to increase production results. paying attention to
the selling price of the product will increase the consumption of people who like to consume fish-based crackers Speed up product delivery so
that partnerships will be opened with fellow UMKM tayammum mamy fish
cracker around the village of Srowo Gresik. Increasing sales force in selling
fish cracker products so that there will be open partnerships with customers in
big cities throughout Indonesia
Threats ST strategy WT strategy
Brand Image of a large cracker factory that sticks to the hearts of
customers
The public's negative perception of the issue of health and cleanliness from the production of UMKM fish
crackers
Decreased customer demand as a result of the uncertainty over the end
of the Covid-19 Pandemic Market demands that require standardization
of fish cracker production that meet the requirements of the IRT and
BPOM.
Creating a good brand image so that it can compete with big factories which
makes a better brand image.
Increase public awareness that the tayammum mamy fish cracker UMKM have paid attention to health and hygiene.
With the uncertainty of the situation over the Covid-19 Pandemic, UMKM tayammum mamy fish crackers are better
off selling their products through social media
increasing production output and creating a better brand image from the
factory will create more customers.
pay attention to the selling price of products and increase public awareness
that UMKM tayammum mamy fish crackers pay attention to health and
cleanliness.
Based on this analysis, it shows that company performance can be determined by a combination of internal and external factors. The combination of these two factors is shown in the diagram of the SWOT analysis results as follows:
1. SO Strategy (support as growth)
This strategy is based on the company's mindset, namely by utilizing all strengths to seize and take advantage of opportunities as much as possible. The SO strategies adopted by the tayammum mamy fish cracker UMKM are:
a. Multiply products so customers can buy / sell in bulk. By increasing the number of products, it is hoped that consumers will be more satisfied with these products and will continue to be used or purchased by consumers. This strategy is used so that the public becomes more confident in the UMKM tayammum mamy fish cracker by continuing to maintain the quality and quality of the products made.
b. Improve product quality so that people can consume it. By maintaining quality, it is hoped that consumers will be more satisfied with these products and will continue to be used or purchased by consumers.
c. Deepen relationships with partners in order to create good relationships. This strategy is needed because good relationships can bring positive results for partners and for UMKM tayammum mamy fish cracker.
d. To deepen relationships with partners in big cities to create good relationships.
2. WO Strategy (Supports Turn-Around Strategy)
This strategy is to overcome weaknesses by taking advantage of existing opportunities. Possible strategies that can be done by UMKM tayammum mamy fish crackers are:
a. With the availability of raw materials, UMKM tayammum mamy fish crackers are trying to increase production results.
b. paying attention to the selling price of the product will increase the consumption of people who like to consume fish-based crackers
c. Speed up product delivery so that partnerships will be opened with fellow UMKM tayammum mamy fish crackers around the village of Srowo Gresik.
d. Increasing sales force in selling fish cracker products so that there will be open partnerships with customers in big cities throughout Indonesia
3. ST Strategy (Supports Diversification Strategy)
This strategy uses the strength of the company to overcome threats. The ST strategy carried out by the tayammum mamy fish cracker SMEs is:
a. Creating a good brand image so that it can compete with big factories which makes a better brand image.
b. Increase public awareness that the tayammum mamy fish cracker UMKM have paid attention to health and hygiene.
c. With the uncertainty of the situation over the Covid-19 Pandemic, UMKM tayammum mamy fish crackers are better off selling their products through social media
4. WT Strategy (Supports Defensive Strategy)
This strategy is based on activities that are defensive and tries to minimize existing weaknesses and avoid threats. The WT strategy is carried out by the tayammum mamy fish cracker UMKM, namely:
a. increasing production output and creating a better brand image from the factory will create more customers
b. pay attention to the selling price of products and increase public awareness that SMEs tayammum mamy fish crackers pay attention to health and cleanliness
From the four possible alternative strategies obtained above, the most appropriate strategy used by tayammum mamy fish cracker UMKM so that it can become the main choice for consumers in fish cracker products is the formulation of an SO strategy, namely a strategy using strength to take advantage of the company's Opportunies, namely:
1. Multiply products so customers can buy / sell in bulk. By increasing the number of products, it is hoped that consumers will be more satisfied with these products and will continue to be used or purchased by consumers. This strategy is used so that the public becomes more confident in the UMKM tayammum mamy fish cracker by continuing to maintain the quality and quality of the products made.
2. Improve product quality so that people can consume it. By maintaining quality, it is hoped that consumers will be more satisfied with these products and will continue to be used or purchased by consumers.
3. Deepen relationships with partners in order to create good relationships. This strategy is needed because good relationships can bring positive results for partners and for UMKM tayammum mamy fish cracker.
4. To deepen relationships with partners in big cities to create good relationships.
Based on the results of the SWOT analysis, UMKM tayammum mamy fish crackers have strengths that can be used in certain strategies and take advantage of the right opportunities and simultaneously so as to minimize or avoid existing weaknesses and threats. The position is very profitable for the company by improving the conditions above the average capacity so that the UMKM of tayammum mamy fish crackers can control existing competitors as well as strong competitors.
4. Conclussion
1. In carrying out the marketing strategy of the tayammum mamy fish cracker UMKM apply the correct and precise segmentation, targetting and positioning. Then Proderma uses the 7P Marketing Mix which consists of product strategy, price strategy, place determination strategy, promotion strategy, human strategy (people), physical equipment strategy (physical evidence), and the process (process).
2. Based on the company's internal and external analysis along with the Cartesian diagram, it can be found that the main strategy of the tayammum mamy fish cracker UMKM is the Growth strategy. Which UMKM
the number of products, it is hoped that consumers will be more satisfied with these products and will continue to be used or purchased by consumers. and improve the quality of products so that people can consume them. By maintaining quality, it is hoped that consumers will be more satisfied with these products and will continue to be used or purchased by consumers. To deepen relationships with partners in the village of Srowo and outside the city to create good relationships.
4.1. Limitiations
The researcher realizes that there are still many shortcomings in writing, so it is hoped that the next researcher can continue this research by measuring in terms of different aspects and different methodologies.
4.2. Suggestion
Based on the author's observations regarding the product marketing strategy applied to the tayammum mamy fish cracker SMEs, the suggestions that the author wants to convey are the following:
To increase development, UMKM tayammum mamy fish crackers continue to improve product quality in order to attract trust to be used by consumers and make product differentiation. By developing new products, it will generate consumer interest in product innovation. Continue to increase promotional activities as attractive as possible from price promotions and creating advertisements to attract consumers to the company's products that will increase competitiveness.
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