THE INDONESIAN JOURNAL OF BUSINESS ADMINISTRATION
Vol. 2, No. 2, 2013:189-202
PT SOLARE MARKETING STRATEGY FOR BUSINESS MARKET PENETRATION Dimas Prakoso Putra and Leo Aldianto School of Business and Management Institut Teknologi Bandung, Indonesia
[email protected] Abstract—PT Solare is a producer of solar home system and solar powered street lighting. The company was built on the foundation to help people in rural area to receive proper lighting using solar energy as the source of electricity power. To reach this goal PT Solare uses donor‐based model where they would approach customers who would want to purchase SHS and donate it to the people who lived in rural areas. PT Solare decided to choose third party firm; CV Citra Surya Utama (CV CSU) as the sales agent that will offer the products to the government organizations, and let the business segment handled by PT Solare personally. In the reality PT Solare just relying on government order which came from CV CSU and neglect the business segment. Based on this situation PT Solare profitability became depended with CV CSU performance, as a result when the performance of CV CSU declined the profitability PT Solare would also declined. Even though the positive trend of solar powered street lighting sales has made the company able to survive in the midst of declining sales of SHS products, the reality is the sales of both products are still below the expectation. PT Solare needs to improve the sales condition so the company can grow and achieve its vision which is to become the top of mind brand in solar powered lighting product. Root cause analysis has determined that the main causes for the low sales of PT Solare are the lack of marketing value in the company culture, and the lack of promotion initiatives. Currently PT Solare just waits until there are orders from CV CSU or other client who directly contacted the company. To address this root causes, PT Solare needs a marketing strategy that will become guidelines in marketing to prevent the problem from reoccurring. This final project uses Internal External (IE) Matrix and Quantitative Strategic Planning Matrix (QSPM) to determine which growth strategy that PT Solare should pursue and evaluate and selects possible strategies that more relevant with PT Solare condition. The result from IE Matrix and QSPM analysis are that PT Solare needs to penetrate the existing market which is the neglected business segment, using existing product by bolstering the perception of product reliability. The recommended strategies to enhance the perception of product reliability through product trial, longer warranty and enhance and communicate the reliability of PT Solare service. The final project also includes the communication method that appropriate for PT Solare to approach the business market. The communication method also addresses the internalization of marketing strategy which is to communicate the marketing strategy to company internal employees. Internalization of marketing communication is necessary in order to weave marketing value in PT Solare culture. Keywords: Marketing strategy
1. Introduction The company that this final project analyzed to find solution for its problem is PT Solare a Solar Powered Lighting (SPL) producer located in Bandung West Java. Topic that was examined as an issue in this final project is the development of an the appropriate marketing strategy that will be beneficial to the progress of thiscompany. a) Company History PT Solare was founded in 2004 because of the impulse to help people who lived in a rural area to receive proper and safe source of lighting. The first product that PT Solare produces is Solar Home System (SHS) that uses Light Emitting Diode (LED) to provide long lasting performance, and can produce brighter light using small energy. The company imported their LED and solar photovoltaic 189
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(PV) array from Chinese manufacturer Shenzhen Xinhonghua Solar‐Energy Co., Ltd.and uses the help of CV CSU to approach government client and handle the business segment themselves. b) Organization Structure
Figure 1.1 PT Solare Organization Structure
As seen in the figure 1.2 PT Solare has a simple organization structure, it has small number of employees which were supervised by middle managers (warehouse manager and production manager). Leadership style in the company is autocratic leadership where the director role is directive and controlling, and can dictate employee’s roles. The director responsibility is to give life to the business, and as a limited liability company, in PT Solare the stock holder gave total responsibility to the director and do not involve directly with the company. The lack of marketing function in PT Solare is dealt using cross department work, where each of the manager with the help of employee are responsible to meet with customer who directly contacted PT Solare c) Vision and Mission PT Solare vision is “to make Solare brand as the top of mind in the solar energy related brand, which utilize the latest technology for the benefit of large society”. And the company mission is “to produce a good quality and reliable SPL system which can be used in every geographical condition”. The mission is reflected on the emphasis to produce the most reliable and durable SPL products. d) PT Solare Sales Partner
Figure 1.2 CV CSU Organization Structure
CV CSU is a small company consist of five personal, the company organization structure can be seen in Figure 1.3. The company sole purpose is to help PT Solare sale their products to government customers. CV CSU uses personal selling method by writing and distributing proposals to regional government offices, because since 2007 the obligation to improve regional electrification ratio has shifted from PLN to regional government. The owner of CV CSU has experience in dealing with government and has owned several other businesses. e) Business Coverage PT Solare produces two types of SPL, solar home system for indoor usage and given the code name SP and solar powered street lighting for outdoor usage and given the codename PJU.
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P Lamp Figure 1.3 SP
SP prroduct as seeen in Figure 1.3 is targetted for a person who livves in rural aarea, the pro oduct design n emph hasis on energy efficiencyy.
Figure 4. PJU U Lamp
Mean nwhile PJU product p is design for ou utdoor lightin ng purposess especially to t illuminatee the street.. The p product is deesigned to bee able to han ndle any type of weatheers; and it is aalso designeed to be ablee to keeep its lights for 12 hourss. PT Solaree also provides customizee SPL for exaample the co ompany had d produ uced SPL for fisherman b based on thee demand fro om Koperasi Nelayan Pro ovinsi Riau Keepulauan. f) PT Solare e Sales Perforrmance
Figure 1.5 PT Solare SSales 2004‐2 2011 Source: Solare’s Salees Report 20 012 As seeen in Figure 1.5 the sales of SHS afteer 2007 neveer achieve the intended ttarget which is 2000 unitt per yyear. Meanwhile the salees of PJU products, even though it haad a positive trend it werre still below w the 5 500 units perr year targett. Since 2006 6 all the purchased ordeers came from regional ggovernment.. Until 2010 all of tthe purchasee orders cam me from CV CSU, and in 2011 CSSU o only contributed 25% off U performancce was due to the divid ded attention n of the owner with hiss sales. The declinee in CV CSU does not actively pursue the businesss segment aand just relieed on orderss otherr businesses. PT Solare d from CV CSU, and word of m mouth to attract interestted clients of SPL techno ology to direectly contactt the company. g) National Electrificatio on Ratio Based d on the 200 05‐2025 Nattional Energyy Policy Blueeprint renew wable energy such as SPLL, renewable e energgy technologgies should be used to o meet the country’s rural r electrification goaals. The keyy objecctive of the policy is to rreduce depe endence on oil by expan nding the usee of gas, coaal and otherr renew wable energy sources. C Currently the e governmen nt has installed 17 MW ssolar power where mostt of thee installed so olar panels w were in the fo orm of or SH HS installed in n rural areas.
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Table 1..1 Target forr Renewable Energy Deveelopment 20 025 Source: Ind donesia Enerrgy Assessmeent, p.66 2020 2025 Otheer Renewable es Unit 2010 2015 5 PV MW 25 50 70 80 Wind d MW ‐ 25 5.6 255 Micro ohydro MW 169 29 98 488 700 Geothermal MW 3,442 4,6 600 6,000 9,500 0 pacity in 201 12 were still below the in ntended targget, which iss As seeen in the Taable 1.2 the installed cap 25MW W in 2010. In addition according to t the 2006tth Presidential Decree No.5 solar PV V will only a a fractiion of other renewable energy that will be deveeloped in 20 025. This con ndition show ws that even n thouggh the goverrnment is the biggest customers in SSPL, it is bestt for PT Solare not to heavily rely on n the demand from m governmen nt. h) Business Issues Based d on the sale es performan nce and NER situation in Indonesia, there are inteernal and extternal issuess found d in PT Solaare business. The extern nal issues arre governmeent preferen nces on the power grid d development. Intternal issues are depend dence on CV CSU perform mance, sales decline of SSHS product,, nce of non government cclient since 2 2006, and ovverall low salles of SPL pro oducts. Even n though thee absen comp pany started from sociall awareness,, revenue an nd profit still counted pllay an important role in n the company. c PTT Solare needs to fulfill its obligation to the company's shaareholders and workers,, which h depended on the company's reven nue and proffit. PT Solaree need to improve its sales condition n so the company ccan fulfill its obligation an nd also for th he growth off the businesss in the longg run.
3. Bu usiness Issue Exploration P Solare faced, by anaalyzing the external e and d This chapter will explore thee business issues that PT nal condition n of the com mpany. The purpose forr issues explloration is to o find knowledge aboutt intern what happened in n Solare environment, so o the root caause of the problem can be identified d. B. Co onceptual Framework The conceptual c framework f i divided in is nto four phaase, environm mental scanning, objecttive strategyy formulation and iimplementattion.
Figure 2.1 Conceptu ual Framework
Environmental sccanning will look at miicro and maacro conditio on of PT So olare and diisseminatingg inform mation relatted with aforementioned d business isssues. Since the main prroblem for SSolare is low w sales performancce, the geneeral objective of solution for the prroblem will be the imprrovement off mulation invvolved in devveloping alteernative straategy for thee solution off sales condition. SStrategy form problem, and d selecting the t most re elevant with company co ondition. And A implemeentation willl the p addreess the budggeting and im mplementatio on plan schedule of the sstrategy in th he company.. 192
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C. Internal Analyysis
olare is not founded f bassed on a rigorous busineess plan doccument, and d had never created anyy PT So documents that outlines or summarize their markeeting strateggies and pro omotion pro ograms. Thee formaal planning aat best is cassh forecasting and main ggoal of the ccompany is survival. The condition off PT So olare in survival stage (Stage II) shows that the co ompany has d demonstrateed that it hass a workablee busin ness entity. It also has enough cusstomers and satisfies th hese custom mers sufficien ntly with itss limiteed product o offer or servicces to keep tthem. Stage I Existence E
Size, dispersion, complexity Large
Stage II Survival
Sttage III Success
Disengage
Stage IV Maturity
S Stage V Resource R m maturity
Grow
Small
Age of ung organization You
M Mature
Figure 2 2.2 Small Busineess Growth Stagge Source: Churchill aand Lewis p.3
Curreently the low w sales conditions only allow the com mpany to stayy in the busin ness. While aaccording to o Churcchill and Lew wis in order tto for compaany in stage II to move to o the next sttep (Successs) it needs to o grow its businesss and profitab bility. Furtheer analysis off internal con ndition will ttake a look at company’ss urces and maarketing mix analysis. resou a) Companyy Resources PT So olare tangiblle resources are plant and warehou use where th he companyy operates; lo ocation thatt give aaccess to easse of distribu ution; loyal aand dedicateed human asssets; and eq quipment to assist in thee SPL p production. And PT Solaare intangib ble resources are; Reputation that the compan ny had as a a produ ucer of reliable SPL; pro oduct certificcation that vvalidates the quality of SSolare brand from BPPT;; empaathy for SHS consumers tthat inspires PT Solare to o improve the product’s reliability an nd durability;; focuss on efficien ncy and effectiveness in operation and a also pro oduct design n that put emphasis e on n simpllicity and eneergy efficiency. And finallly access to the latest LEED and solar PV technolo ogy that help p the company to ccontinually im mprove the p product quallity, through technology based innovvation. b) Marketin ng Mix Analyssis Produ uct ‐ PT Solaare producees SHS and solar s powered street ligghting system m. Both of the productt desiggn were emp phasizes on the simplicity, reliabilitty and durab bility, which became the reason to o impleement LED laamp with DC C system in th he product in nstead of con nventional SPL design.
Figure 2.3 Compariso on Between Con nventional and Solare Lightingg
As seeen in Figure 2.3 using LEED and DC syystem the prroduct design is simpler with fewer ccomponentss and cconsumes sm maller energyy.
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Price – The main componentt for Solare SSPL are Solar array and LED lamp. Currently PT SSolare valuee their product for $4 per watt of solar cell and $0.5 per LED. $ 6.00/W W
Competee with power at a peak times
$ 3.00/W W
Competee with most nattural gas powerred generation
$ 1.00/W W
Competee with coal
$ 0.50/W W
Cheapesst energy sourcce Figure 2.4 C Cost of Electricitty for PV Techn nology Sou urce: Hazlehurst, 2011, p20
4 per watt th he cost to ad dopt Solare p product is mo ore expensivve compared d Figure 2.4 shows that with $4 uel. with conventionaal energy succh as fossil fu P Place – To approach a go overnment client c PT So olare uses the help of CV CSU that manuallyy distrib butes Solaree Product Proposal to various v government insstitutions. To T approach h busine ess segment PT Solare ju ust relied on n word of mouth (WOM M) and wait u until a clientt contaccted the com mpany directly. P Promotion – PT Solare neglects n the promotion effort by neever have an ny sales pro omotion and d unication pro ogram. The lack of com mmunication n marketingg lackingg in marketting commu shown n by the abssence of meedia presencce, the lack of appreciation in adveertising, lackk accesss to media, absence off possession n of an advvertising pro operty, and absence off sponso orship. P People ‐ Most of the emp ployees have e an experien nce working in other factories such aas electronicc onents facto ory. The emp ployees also have shown n their loyaltty and dedication by thee compo low off turnover, and a decision n to stay wh hen there arre no workss because off absence off orderss from clien nts. The wo orkers in PT Solare are expected to t be able to do crosss departtment workk where waarehouse em mployees sh hould be ab ble to help production n emplo oyees and vicce versa. P Process – PT Solare were more focus on the operation excelleence through h emphasis o on operation n by enhancingg product reeliability and d efficieency and effeectiveness and product superiority b durability through h new produ uct developm ment. Meanw while from the t marketin ng aspect PTT ue their custtomers and serve whoever contacteed PT Solaree Solaree does not actively pursu directly whether it is CV CSU U or businesss customerss who happeened have heard h aboutt ugh WOM. Solaree brand throu P Physical evideence – PT So olare physicaal evidence that became the touch p point for theiir customerss are paackaging, braand logo and d lamp design n. PT Solare uses simple square shap pe packagingg from w white coloreed cardboard d material. In n the cardbo oard, custom mer can find the productt logo, sslogan, comp pany addresss and phone number. Fiigure 2.5 Solare Logo Solare logo as sho own in figuree 2.9 is writtten in a brigh ht red and ye ellow font, w with picture o of the sun ass he text “Peneerangan Listrrik Tenaga Su urya dan meenembus keg gelapan bagi masyarakatt the leetter “O”. Th pedessaan” can bee found belo ow the Solaree logo. Solare lamp is deesigned as simple possible to ease th he installatio on process. In designing the productt pect and do n not concern on the aestthetic aspectt both SP and PJU product focus on the functional asp of thee product.
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D. External Analysis
External analysis will explore the collaborators, competitors, customers of PT Solare and industry climate that can affect PT Solare. a) Collaborators External parties that can help PT Solare to achieve its goals are suppliers, CV CSU, government, mass media, and environmental related organization. Supplier – As a supplier Shenzhen Xinhonghua Solar‐Energy Co., Ltd provides the latest components that PT Solare can use in their new product development. CV CSU – As the only active sales agent for Solare brand at the moment, PT Solare financial performance depend on CV CSU sales performance. Government – Government play two parts in PT Solare business, first as a customer that donate SHS to people in rural areas, and as a regulators that provides laws and decrees that beneficial for SHS business and SPL in general. Mass Media ‐ Media play roles as the ones who holding companies for the social impact of their activities, and media also uses their influence to give recognition to the companies that they seen as successful in their social and environmental initiatives, to encourage the practice of green business. Environmental Group/ Non Governmental Organization (NGO) ‐ Activist Organizations is the harshest critics in environmental breach that was done by or corporation. They do not hesitate to harshly critics and with the help of mass media bringing public pressures to bear on corporations. NGOs can play roles as project developers, advisors, and consultants of energy programs. b) Competitors Direct competitors of PT Solare are PT Surya Energi Indotama (SEI) and PT Tricomm Aerocitra. PT SEI is subsidiary of government own company and owned 50 percent market share of Solar PV in Indonesia. While a Bandung based company, PT Tricomm Aerocitra that produces LED lighting under Solarens Ledindo is a head to head competitor of PT Solare that PT Solare used to meet when dealing with government client. Both of the copany had bigger production capacity compared to PT Solare with 7000 for SEI and 4000 for PT Tricomm Aerocitra. Indirect competitors for PT Solare are PT Perusahaan Listrik Negara (PT PLN) who can provide access to electricity for PT Solare target consumers. Other indirect competitors are generator sellers and other renewable energy provides that can provide alternative source of energy. c) Customers Two types of PT Solare customers are government and business client. Motivation for government purchase are politics, to obey the law, regulation, decree and as a form of responsibility and obligation for the citizen. While business segment motivation is for SPL purchase decision are technology and as a part of corporate social responsibilities (CSR) initiatives. d) Business Climate The scanning of Sociocultural, Technological, Economic, Ecological, and Political‐legal environmental condition, were used to understand the climate that affecting solar powered lighting companies. Sociocultural – The increase of awareness in green economy where a company based its operation on Three Ps (Profit, Planet, People). The green economy is also supported by the media who gave various awards to appreciate businesses that put concern with the social and environmental aspect of their business decision. This condition had made CSR became the status symbol for businesses in Indonesia. Technological – Advancement in solar cell, LED and internet technology can provide the boost needed to leverage the adoption of SPL in Indonesia. Economic – the growth of high net worth individual and the decline of cost to produce solar panel could made SPL became more affordable for Indonesia market. Ecological – Indonesia in average has 4.8 kWh/m2/day solar power resources but high humidity and long rainy season and cloudy climate could provide obstacles in Solar PV adoption. This problem could be overcome by selecting an appropriate solar PV technology that provides energy efficiency. 195
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Political‐legal – As an island nation the Indoneisa government is aware with the nation’s vulnerability to climate changes especially with Jakarta as the capital is sits below sea level. This is why the government is very concern with the energy conservation and adoption of renewable energy through variety of laws and decrees. Particularly the “Policy on Renewable Energy and Energy Conservation” by the ministry of Energy and Natural Resources on 23rd December 2003. Unfortunately in the practice these laws were lack of policy and regulatory enforcement (Haeni, 2008). A lot of these laws, regulation, and agreement is still in the “encouragement” phase and have not manifest into something that can truly beneficial for the new and renewable energy industry. e) Industry Analysis Potential Entrants
Other Stakeholders
Threat of new entrants: High
Bargaining power of government , mass media, interest group: High
Industry Competitors
Bargaining power of government : High Buyers
Suppliers
Bargaining power of suppliers: Low
Rivalry Among Existing Firms: High
Bargaining power of non governent: Low
Bargaining power of substitute products: Low
Substitutes
Figure 2.6 Competitive Forces of SPL Industry
As seen in the Figure 2.6 the basic competitive forces that have strong bargaining power are other stakeholder, potential entrants and government as a buyer. While the basic competitive forces that have strong bargaining power are non government client as a buyer, suppliers and substitute product. The figure indicated that serving non government could provide a more attractive industry for PT Solare. E. SWOT Analysis SWOTs analyses identify significant internal factor (Strength and Weakness) that need to be leveraged and which external factor (Opportunities and Threat) that needs to addressed. The SWOTs factors were taken from business issues exploration that has been gathered in the previous chapter. Table 2.1 provides the summary of PT Solare SWOTs. Table 2.1 PT Solare SWOTs Analysis
Strengths Distribution effectiveness Dedicated employees Product reliability and durability Continuous product improvement BPPT certification Conformance Access to the latest
Weaknesses Dependence on CV CSU performance Lack in promotion initiatives Solar technology limitation Small product differentiation Small number of employee Technology oriented R&D Production capacity 196
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technology and components Involvement in various CSR and NER project Opportunities Government support on renewable energy Trend in green business and CSR initiatives
Lamp cannot be change by the consumers freely Threat Concern in solar power technology reliability Competitor earlier existence in world wide web High Initial cost
Positive growth in economy High growth in Internet Indonesia cloudy climate adoption and rainy weather CSR related award Subsidy on fossil fuel Decreasing cost of solar Lack of policy and law power production enforcement 70 million people lack Strong bargaining power access to electricity of government Green banking initiatives Low barrier of entrance F. Root Cause Analysis Based on the business issues exploration the causes of PT Solare low sales can be divided into two group; primary causes and secondary causes. The primary causes are lack of marketing value in the company cultures and the lack of marketing communication effort and sales promotion. A primary cause is any effect that PT Solare needs to prevent from occurring because it affected the secondary causes which are dependency on CV CSU order and dependency on government and undeveloped business market.
3. Business Solution G. Strategy Formulation
To address the root causes of PT Solare an appropriate marketing strategy is needed so the company can develop promotion program and as a guidelines for weaving marketing value in the company. The first stage is to determine which of the growth strategy that PT Solare need to pursue, from the following selection in the Table 3.1 Table 3.1 Growth Strategy Selection Source: Dwyer and Tanner, 2006
Present markets
New markets
Present product
New product
Market
Product
penetration
development
Market
Diversification
development This would be determined using Internal and External Matrix that generated from external and internal factor evaluation. a) External Factor Evaluation External factor evaluation (EFE) is compiled by getting PT Solare director, managers and CV CSU owner to fill out the rating and weight of opportunities and threats categories to analyze how well PT Solare responding to these specific factors in the light of the perceived importance external factors. Based on the external factor evaluation calculation the total weighted score is 2.01, indicates that the company responds to the current and expected factors in its external environment is below average. b) Internal Factor Evaluation 197
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Internal factor evaluation (IFE) is compiled by getting PT Solare director, managers and CV CSU owner to fill out the rating and weight of strengths and weaknesses categories to summarize company’s ability to adapt with the industry. The total score from internal factor analysis is 2.43 which means that the company responds to the current and expected factors in its internal environment is below average. c) Internal External Matrix
Figure 3.1 IE Matrix Analyses
As seen in the Figure 3.1 with total weight score of IFE 2.43 and total weight score of EFE is 2.01, the coordinates fall in the V cell which means that PT Solare should use hold and maintain strategy. The strategy will only concentrate on market penetration because the objective of the solution is to increase the sales of current product which is SP and PJU. And since the government market is overcrowded with competitors, have strong bargaining power and already take care of CV CSU, the strategy will concentrate on penetration to the business clients that have been neglected by PT Solare. d) TOWS Matrix Analysis TOWS matrix is used to create relevant alternatives strategy that can help PT Solare to improve the sales of SHS and SPL. According to Wheelen and Hunger (2010:230) TOWS matrix which came from SWOT analysis illustrates how the external opportunities and threats facing a particular corporation can be matched with that company’s internal strengths and weaknesses to result in four sets of possible strategies. TOWS matrix of PT SOlare produced 11 strategies that can be used by PT Solare to improve the company sales condition: Strengths ‐ Opportunities strategies are: • Partner with distribution channel to broaden the market • Inform prospect customers about brand reliability • Partnership with financial sector to improve affordability • Improve service differentiation Weaknesses ‐ Opportunities strategies are: • Find partner that can help PT Solare to approach business clients that have awareness in CSR and green business • Use internet to overcome the lack of employee and absence of physical store • Improve product differentiation Strengths ‐ Threats strategies are: • Use warranty program to reduce customers concern • Use product form pricing strategy Weaknesses ‐ Threats strategies are: • Product trial to get customer to experience the product • Use sales promotion to attract cost sensitive customers To simplify the marketing strategy selection, the 11 strategies will be categorized into four strategy alternatives based on its similar characteristics. 198
Putra and Aldianto / The Indonesian Journal of Business Administration, Vol.2, No.2, 2013:189‐202 Table 3.2 Categories of Possible Strategies
N o 1
Strategies
Categories
Improve the product Product differentiation differentiation 2 Partner with distribution channel to broaden the market 3 Find partner that can help PT Solare to approach business clients that have awareness in Service CSR and green business differentiation 4 Use internet to overcome the lack of employee and absence of physical store 5 Improve service differentiation 6 Use warranty program to reduce customers concern Bolster the 7 Product trial to get customer perception of to experience the product reliability 8 Inform prospect customers about brand reliability 9 Use sales promotion to attract cost sensitive customers Increase the 10 Partnership with financial product sector to improve affordability affordability 11 Use product form pricing strategy H. Solare Marketing Strategy Alternatives a) Improve Product Differentiation Product differentiation could be improved through differentiation in form, features, reparability, and product’s style. b) Improve Service Differentiation Service differentiation could be achieve through increase ordering ease, enhance delivery system, broadening distribution channel, improve ease of installation, customer training, customer consulting, maintenance and repair. c) Bolster the Perception of Reliability To bolster the perception of Solare reliability could be achieve by offering product trial to prospect customer, provides longer warranty program, and improve and communicate PT Solare service reliability. d) Increase product affordability SPL is an expensive product, and may discourage the consumers to buy it. PT Solare could provides affordable installment program, and price Discrimination to increase product affordability. I. Alternative Strategy Selection Quantitative Strategic Planning Matrix (QSPM) is used to select the most relevant strategy from the available alternatives, which can be used by PT Solare as a foundation for its marketing strategy. From these four strategies, to bolster the perception of reliability receive the highest sum of total attractiveness score with 5.92 while the second highest attractive strategy is service differentiation with 5.50. And the two strategies with the lowest sum of total attractiveness score are; increase product affordability, with 5.07 and product differentiation with 4.90. The result of QSPM analysis indicates that the most attractive strategy to penetrate the market is by bolstering the perception of reliability.
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To bolster the perception of reliability is appropriate for marketing Solare to business client because it addressed the risks factor, which became the decisive factor in business client purchasing decision. Concern about SPL reliability is related with the amount of money that the business client would spend to purchase the products. The client would like to justify the cost that they had with product that can perform without malfunction in specified time period. J. Marketing Communication to Support the Reliability Program A communication strategy to support the reliability perception is needed to ensure that the target market hears about the product trial, warranty program and PT Solare service reliability. a) Solare Marketing Communication Objectives The objective of the communication campaign is to convince 50 percent of the target audience that Solare produces the most reliable SPL in Indonesia. The target audience will be focused on businesses that operate in West Java region to increase focus and reduce cost. K. Solare Message Strategy a) Finding the right Message Brand message can help prospects identify a brand in the product category and evaluate whether the brand fit the criteria to solve problem or leverage opportunity that they have. The result of combining the existed value propositions with reliability program are a new value proposition that the company should use as their brand message. These new brand messages are: Simple, Tahan Lama, Bebas Perawatan, Bergaransi, Teruji dan Berpengalaman b) Message Strategy Brief The detail marketing message will consist of consumers and customers positive testimony about Solare product and service reliability, and facts about distinctive feature that are strong points and different from the competitors. L. Communication Channel Selection To ensure the believability of the messages PT Solare management need to enhance the message communication so it can that can reach various sources, especially the ones with high believability. This can be done through recruiting a high profile spoke person for the company. PT Solare will also use the internet as communication channel because it provides a low intrusiveness level while still maintain two‐way dialogue communication capabilities. M. Permission Marketing Permission marketing is used to address the clutter of using internet as channel for communication. Marketers can develop stronger consumer relationship by respecting customer’s wishes and sending messages only when they express willingness to become involved in the brand. a) Communication Function Along with personal selling PT Solare will also incorporate website, web ads, company email, printed brochures, and sales proposals to inform business segment about Solare’s product and service reliability. PT Solare will also use public relation to increase Solare brand access to the media. N. Internalization of Communication Because PT Solare lacks of marketing department, all of the employees need to be ready to communicate with the customers, these employees had done it before and they would be expected to do it more. Three initiatives that PT Solare needs to do to conduct internal communication are: Informing employees – Create channel for internal communication that accessible and suitable for employees. Empowering employees – Provides employees with information that enables them to make decisions about problems that affect customer relationships. Listening to employees – encourage and facilitate employee feedback because this kind of interaction will let managers know whether employees understand and agree with the internal marketing messages and are willing to support various marketing communication programs.
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