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UDC 332; DOI 10.18551/rjoas.2022-05.20
IMPLEMENTATION OF THE MARKETING MODEL OF MICRO, SMALL AND MEDIUM ENTERPRISES FOR ORGANIZING PLANT AGRIBUSINESS IN THE CITY OF SURABAYA: A PHENOMENOLOGY STUDY
Sari Ari Ika
Master's Study Program of Agribusiness, Faculty of Agriculture, University of Wijaya Kusuma
Surabaya, Indonesia E-mail: ikasariari@gmail.com
ABSTRACT
Micro, Small and Medium Enterprises (MSMEs) of ornamental plant agribusiness are increasing, by implementing the right strategy, MSMEs of ornamental plant agribusiness will continue to exist in responding to business competition because many traders will set up similar businesses. To maintain in the long term the ornamental plant business of CV Duta Riyan Sakduluran requires a research strategy, one of which is a phenomenological approach. The goal is to find out how the right marketing model and strategy are applied by CV Duta Riyan Sakduluran's ornamental plant agribusiness SMEs. The results of the study indicate that the position is in quadrant 1, which indicates that the position is strong and has the opportunity to be developed. There are several factors that influence the marketing strategy, namely internal factors and external factors. The strategy used is to take advantage of existing strengths and opportunities.
KEY WORDS
Marketing strategy, SWOT analysis, business, Indonesia.
Indonesia's national economy has collapsed as a result of the country's economic crisis. In 1998, many sectors in the company, including the industrial, trade, and service sectors, slowed down or stopped their operations. However, due to the monetary crisis in various sectors of the economy. Micro, Small and Medium Enterprises (MSMEs) are able to survive and recover in a slumping economic condition. MSMEs are one of the potentials in growing and stabilizing the national economy in the business sector (Danuar, 2013).
Indonesia is an agricultural country, where the agricultural sector still has a very important role in helping the domestic economy. This can be seen from the increasing population living and working in the agricultural sector, as well as agricultural products in the national scope (Taufik et., all, 2011).
Ornamental plants are one type of business in agriculture that is currently widely occupied. In Indonesia, the ornamental plant business is growing rapidly in various regions and has an important role in increasing economic growth. (Retno, 2015). The level of ornamental plant agribusiness SMEs is increasing, by implementing the right strategy, ornamental plant agribusiness SMEs will still exist in responding to business competition because many traders will set up similar businesses. Competition that usually occurs is in the form of price competition, type, quality to service to consumers. One of the things that will affect the profits and existence of MSMEs in maintaining the business is the pattern of business behavior applied by ornamental plant traders.
Surabaya is one of the cities in Indonesia that has a fairly large place of sale and cultivation of ornamental plants. Various types of ornamental plants are sold, from seeds to adults have been cultivated by traders. CV Duta Riyan Sakduluran is one of the ornamental plant businesses that is managed quite well in the area of Jl. Golf 1, Surabaya.
To maintain in the long term, CV Duta Riyan Sakduluran's ornamental plant business requires a research strategy, one of which is a phenomenological approach. The goal is to find out how the right marketing model and strategy are applied by CV Duta Riyan Sakduluran's ornamental plant agribusiness SMEs.
MATERIALS AND METHODS OF RESEARCH
The research was conducted on Jl. Golf 1, Surabaya, to be exact, CV. Ambassador Riyan Sakduluran. This research was conducted during August - September 2021. This research is qualitative. Qualitative research aims to find out what phenomena are experienced by research subjects, such as behavior, perception, motivation, and action, through descriptive methods in the form of words and language, naturally unique and using various natural methodologies (Sugiyono 2014).
Qualitative research can be grouped into several types. According to Irianto and Subandi (2015) qualitative research methods are divided into biographical approaches, phenomenology, case studies, grounded theory, and ethnography. However, this research was conducted with a phenomenological approach. The purpose of the phenomenological approach is to present a general picture of a phenomenon, to identify phenomena based on how they are seen by actors in a condition (Alase, 2017).
The phenomenological technique is based on the concept that through observation and interviews, researchers can gain experience from informants. After the research process was carried out and obtained a description of the specific phenomenon from the results of interviews and discussions with the owners of MSMEs, it is hereby able to find out information about how the experience of MSME owners of ornamental plants as informants and the obstacles they faced and how the right strategy for their business was. In this study, both primary and secondary data were used. Observations, questionnaires, and interviews were used to collect information. This study uses a semi-structured strategy to obtain primary data through interviews. The data analysis method used is SWOT analysis.
RESULTS AND DISCUSSION
The Internal Factor Evaluation Matrix (IFE) and the External Factor Evaluation Matrix (EFE) are strategic management tools that function to audit or evaluate the strengths and weaknesses of the company's main functional areas. When used in conjunction with the EFE matrix, the IFE matrix serves as a strategy development tool to evaluate MSME performance in terms of identifying internal strengths and weaknesses. The results of the I FA matrix can be seen in (Table 1).
Table 1 - Internal Factor Analysis (IFA) Matrix
INDICATOR WEIGHT RATING SCORE (Weight x Rating)
(1) (2) (3) (4)
Strengths (O):
1.1. Business experience 0,10 4 0,4
1.2. Business development 0,10 4 0,4
1.3. Types of ornamental plants 0,10 4 0,4
Total Strengths 1,2
Weakness (W):
2.1 Business location 0,05 -3 -0,15
Total Weakness -0,15
Total Internal Factors 1,05
The table shows that the internal strategy factor matrix (IFA) in the table above has a total score of 1.05 with a greater number of strengths with a score of 1.2 and weaknesses with a score of -0.15. With this, the internal conditions of CV. Duta Riyan Sakduluran is strong. It means that the internal strategy of UD's strengths and weaknesses can be said. With the results of internal strengths and weaknesses in the CV. Duta Riyan Sakduluran can then be made the basis for developing the company in the future. While the results of the EFA matrix (have a score of opportunities and threats which can later be used to take advantage of opportunities and solutions to threats to the company. The value of the EFA matrix can be seen in (Table 2).
Table 2 - External Factor Analysis (EFA) Matrix
INDICATOR WEIGHT RATING SCORE (Weight x Rating)
(1) (2) (3) (4)
Opportunities (O):
3.1 Settlements 0,12 3 0,36
3.2 Increasing sales of ornamental plants 0,10 3 0,3
3.3 Community response 0,10 4 0,4
3.4 Business location 0,08 3 0,24
3.5 Ornamental plants quality 0,12 4 0,48
Total Opportunities 1,78
Threats (T):
4.1 Pest and disease attack 0,13 -3 -0,39
4.2 Close business location 0,10 -3 -0,3
4.3 Influence of weather on plant condition 0,13 -2 -0,26
4.4 Increasing online business 0,13 -2 -0,26
Total Threats -1,21
Total External Factors 0,57
From the table above, it can be concluded that with the opportunity with a score of 1.78 CV. Duta Riyan in developing his business behind the existing threat factors with a score of -1.21.
After classifying various possibilities from internal and external factors, and to facilitate the determination of the results of the analysis, a SWOT analysis was used. This matrix can clearly show how the external opportunities and dangers of the company and can be adapted to its limitations and strengths. This matrix can produce four possible strategic alternatives, namely as follows:
4.00 Opportunities
$ Quadrant III Turn Arrouna 3.00 2.00 Quadrant I Aggressive
ro 5 1.00 Vi ■C M c a>
1 ^ K
-0 40 -0.20 0.0 0 0.20 0.40 0.60 0.80 1.00 1. 20 1.40
-1.00
Quadrant IV Defensive -2.00 ■ Quadrant II Deversification
Threats
Figure 1 - SWOT Matrix Quadrant
It can be seen in Figure 3. which is the SWOT quadrant matrix, the ornamental plant business (indicated by the green box) appears to be in quadrant I, which indicates that the position is strong and has the opportunity to be developed. In accordance with the opinion of Rangkuti (2014) being in quadrant I is a very profitable position. The company has many advantages and strengths, so it can take advantage of today's opportunities. In this situation, the best solution is to promote an aggressive growth strategy (growth oriented strategy). Another opinion expressed by Perace et., all (2013) that the alternative strategy in accordance with position I is a concentrated growth strategy through market development, product development, or a combination of both.
In accordance with this opinion, the ornamental plant business is in very good condition. By using the Strength (S) - Opportunity (O) strategy, it is possible to continue to develop.
This business has been around for almost 14 years so it is very experienced in this ornamental plant business. Ornamental plant products in CV. Duta Riyan Sakduluran also has various types of plants ranging from cheap to expensive. CV Duta Riyan Sakduluran has also started distributing its products overseas. This is the strength of CV. Duta Riyan Sakduluran in developing his business. In addition, there is also a good response from the community in supporting the development of this business. Many plant lovers are looking for ornamental plants as collectors and aesthetic art in their homes and offices. Therefore, entrepreneurs must be innovative and develop their strengths and potentials so that the ornamental plant business at CV Duta Riyan Sakduluran remains efficient, exists, and progresses in the city of Surabaya and even outside the city of Surabaya so that they can increase their income with existing opportunities, such as network enhancement and expansion. must continue to be improved.
CONCLUSION
From the research on the implementation of the marketing strategy of the MSME agribusiness ornamental plants belonging to CV. Duta Riyan Sakduluran, who is in the city of Surabaya by conducting a phenomenological study, is in quadrant I, which is between strengths and opportunities. This is due to the factors that influence the marketing strategy. These factors include:
1. Internal factors that influence the marketing strategy of MSME agribusiness ornamental plants in the city of Surabaya belonging to CV. Ambassador Riyan Sakduluran. The company's experience in marketing, cultivating and caring for ornamental plants is good so that it produces products of various types of ornamental plants with good quality;
2. External factors that influence the development of ornamental plant agribusiness SMEs in the city of Surabaya belonging to CV. Duta Riyan Sakduluran is the increasing demand and sales of ornamental plants every year due to the good public response to the ornamental plant business.
In the development of ornamental plant agribusiness SMEs in the city of Surabaya, CV. Duta Riyan Sakduluran the strategy used is to take advantage of the strengths and opportunities that need to be managed properly so that MSME entrepreneurs are more advanced, superior and developing.
REFERENCES
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