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RJOAS, 4(124), April 2022 UDC 332; DOI 10.18551/rjoas.2022-04.09
MARKETING STRATEGY FOR HOUSEHOLD BUSINESS PURUN WOVEN PRODUCTS IN MENANG RAYA OF PEDAMARAN DISTRICT, INDONESIA
Prihartini Indah*, Riswani, Aryani Desi
Master's Program of Agribusiness, Faculty of Agriculture, University of Sriwijaya, Indonesia
*E-mail: indahprihartini29@gmail.com
ABSTRACT
Purun is a raw material for handicrafts such as mats, hats, bags, baskets and many more. Purun crafts have developed in several areas in Indonesia, including the Pedamaran District, Ogan Komering Ilir Regency, South Sumatra. Because most of the households in Pedamaran Sub-district are the centers of the purun mat craft, it is well known as the "City of Mats". Over time, the main problems faced by purun craftsmen, especially in Menang Raya, are the marketing of products to a wider range and marketing of the woven products. This study aims to analyze the marketing strategy of a home business for purun products in Menang Raya. The research was conducted in Menang Raya, Pedamaran District, Ogan Komering Ilir (OKI) Regency. The study took a sample of 6 key informants from a sample of craftsmen and several other informants such as the chief of Menang Raya, Government Apartments, NGO Institutions, lecturers, and Community Groups. The method used in this research used the SWOT analysis method. The results showed that the marketing strategy for the home business of purun woven products was in quadrant III which supports the turnaround strategy. The home business of purun woven products has market opportunities, but on the other hand there are several internal constraints or weaknesses.
KEY WORDS
Weaving purun, SWOT analysis, marketing strategy.
Agricultural products have a role as raw materials in industrial activities, both household and large scale industries. One of the efforts made by the home industry using raw agricultural products is the business of woven crafts from purun plants (Ria, 2012). Woven craft is the result of the activity of making an item by weaving certain materials so that it has a value of beauty and usefulness. One of the crafts that is developing in Indonesia is the craft of making or weaving mats and other items made from purun plants (Emelia, 2017).
Purun is a type of wild grass that grows in the tropics, making it one of the unique plants. The uniqueness of this plant lies in its strength against attractiveness and brittleness. Even though the treated plants experience seasonal changes, such as scorching heat and rain, as well as being exposed to water and exposed to sunlight, purun does not become brittle and rotten (pangaribuan et.al, 2017). Purun is the raw material for making crafts such as mats, hats, baskets, bags, sandals, and much more. This craft has developed in several places in Indonesia, including Pedamaran District, Ogan Komering Ilir Regency, South Sumatra. Because most of the households in Pedamaran District are craftsmen of purun mats, it is dubbed the "City of Mats".
Over time, the main problems faced by purun craftsmen, especially in Menang Raya, are the market of products to a wider range and marketing of the woven products. Even though this village and even the sub-district is known as the "Town of Tikar", craftsmen still face obstacles in getting marketing channels and networks to expand the introduction and marketing of purun products to the people of South Sumatra. So far, business actors or purun woven craftsmen only sell woven products to middlemen in the village without knowing where to distribute the woven products. What's more, there are now many substitute products available from purun woven which are made from plastic which have durability and prices that are not inferior to purun woven.
Based on the description above, this study aims to analyze what kind of marketing strategy can be applied by household entrepreneurs of purun woven to be able to further increase the marketing reach of purun woven products.
RJOAS, 4(124), April 2022 METHODS OF RESEARCH
This research was conducted in Menang Raya, Pedamaran, Ogan Komering Ilir Regency. The selection of the place was done purposively with the consideration that Menang Raya, Pedamaran District is one of the centers for purun craftsmen with the highest number of craftsmen among other sub-districts in Ogan Komering Ilir Regency (Triansyah, 2015).
The method used in this study is a survey method used to get an accurate description and explanation of the marketing strategy of a household business for purun products in Menang Raya, Pedamaran. The collection of data, information, and field fact were carried out directly using a list of statements (questionnaires) and interviews, both oral and written, to a sample of key informants from a sample of craftsmen and several other informants.
The sampling method used in this study is a non-probability sampling method. Non probability sampling is a sampling technique that does not provide equal opportunities for each element or member of the population to be sampled repeatedly (Sugiyono, 2014). Basically it is done intentionally with the convenience method where the sample is chosen at will (Sugiyono, 2017). The sample criteria is a key sample from a sample of craftsmen and several other informants. The key sample in this research is the village head of the village of Menang Raya. Other informants include government apparatus, NGO institutions, lecturers, and community groups.
There are two types of data collection methods in research, namely primary data and secondary data, primary data is carried out directly through interviews using a list of questions (questionnaires) and in-depth interviews (in-depth interviews) to determine the formulation of the marketing strategy design for purun household products. Win Raya Village, while secondary data was obtained from various relevant agencies in the research area such as the Village Apparatus, the Office of UMKM and Cooperatives, the Central Statistics Agency (BPS), and other related institutions or agencies. Data obtained from the field was processed in tabulation and then continued with descriptive statistical analysis, namely by describing the results obtained from the field in the form of a systematic description.
Analyzemarketing strategy for purun woven household business in Menang Raya Village, Pedamaran District by using a SWOT analysis tool, SWOT analysis is a strategy design to identify good factors of strength, weakness, opportunity, and threat in order to achieve company goals (Rangkuti, 2015). There are three stages of strategic planning analysis, namely:
• Data collection stage (evaluation of internal and external factors);
• Analysis stage (SWOT Matrix, Internal external Matrix);
• Decision making stage.
The data collection stage is classification and pre-analysis which is divided into two parts, namely internal and external data, the second stage utilizes all the information in the quantitative model of strategy formulation, namely the SWOT matrix and the internal external matrix then determines the appropriate decision making from the results of strategy formulation (Rangkuti, 2015). The right marketing strategy for the home business of purun products in Menang Raya is determined by a combination of internal and external factors. These two factors must be taken into account in the SWOT analysis by comparing the two internal and external factors.
RESULTS AND DISCUSSION
The household business of purun products in Menang Raya, Pedamaran sub-district produces processed purun plant products including mats, bags, caps, baskets, and other products. In marketing the purun weaving business, it is necessary to design a strategy using SWOT analysis. SWOT analysis is an identification with the aim of analyzing strengths, weaknesses, opportunities, and threats more comprehensively (Fahmi, 2015).
Marketing strategy is a plan that provides guidance on an activity to be carried out in order to achieve the company's marketing objectives (Assauri, 2011). Before designing a
marketing strategy, first identify the factors of the home business of purun woven products in the village of Menang Raya. These factors consist of internal factors and external factors. Internal factors are carried out by analyzing the strengths and weaknesses of the home business of purun products. Meanwhile, the external strategy is carried out by analyzing the opportunities from the opportunities that can be achieved and the threats faced by home business of purun products in Menang Raya.
The two factors are measured, which factor better describes the household business of purun products. So that it can analyze how alternative marketing strategies can be applied to improve the business into a better and growing business.
Table 1 - Internal Factors
No. Internal Factors Weight Rating Relatively Score
STRENGTH
1. Availability of raw material supply 4.50 3.00 0.11 0.35
2. Quality durable woven products 4.33 2.83 0.10 0.29
3. Easy business to do and small risk 3.70 3.50 0.09 0.31
4. Affordable prices for consumers 4.50 3.83 0.10 0.39
5. Product uniqueness 4.00 2.70 0.09 0.23
WEAKNESS
1. Limited technology and venture capital 4.33 3.17 0.11 0.35
2. Less innovation 4.33 3.33 0.11 0.38
3. Limited access of producers to markets 3.87 2.83 0.10 0.28
4. Limited HR skills/skills 4.00 3.33 0.10 0.33
5. Limited promotion 3.67 3.50 0.09 0.33
Total 1.00 3.24
Average Strength 0.31
Average Weakness 0.33
Difference in Score Strength - Weakness -0.02
The Internal Factor Evaluation (IFE) matrix table shows that the weakness factor is superior to the strength factor. This means that the strength factor of the household business of purun products cannot be used as an advantage factor in influencing the development of the purun household business in Menang Raya. The result from Table 1 shows that the main strength is the availability of raw material supply with a score of 0.35. The availability of a stable supply of raw materials makes it easier for craftsmen to produce purun products. While the average strength in the IFE table owned by home business of purun products in Menang Raya is 0.31, for the weakness factor in the IFE table the results are 0.33. It can be concluded that the weakness factors have not been balanced with the internal strength factors of the purun household business in Menang Raya. As is the case with external factors, it can be seen in Table 2.
Table 2 - External Factors
No. External Factors Weight Rating Relatively Score
OPPORTUNITY
1. There is a business expansion program 5.00 4.00 0.13 0.53
There are events or exhibitions of local products that help promote purun 4.50 3.50 3.50 0.41
. woven products
3. There is coaching and training 5.00 3.67 0.13 0.48
. There is the formation of a group of purun craftsmen from outside parties 4.17 3.33 0.11 0.37
. (NGO institutions)
The existence of local government programs for the development of 3.50 3.00 0.09 0.28
. information technology
THREAT
1. There are substitute products that are competitors (eg plastic mats) 3.50 1.67 0.09 0.16
2. Decreased consumer interest in purun woven products 3.67 1.67 0.10 0.16
3. Conversion of swamp land for purun to oil palm plantation 2.67 1.00 0.07 0.07
4. Public access to take raw materials is getting narrower 3.50 1.50 0.09 0.13
5. Climate change and fires on peatlands during the dry season 0.07 1.83 0.07 0.13
Total 1.00 2.72
Average Chance 0.42
Threat Average 0.13
Opportunity - Threat Score Difference 0.29
Weakness
Opportunity
Quadrant III Turn-around strategy 3 Quadrant I 2 Aggressive Strategy
(-0.02;0.29]_ 1
-3 -2 -1 -1 0 1 2 3
Quadrant IV -2 Quadrant II
Defensive Strategy -3 Diversification Strategy
Strength
Threat
Figure 1 - SWOT Quadrant Matrix
Table 3 - Alternative Strategy Matrix
Internal Factors
External Factors
S (Strength)
Availability of raw material supply Quality durable woven products Easy business to do and small risk Affordable prices for consumers Product uniqueness_
W (Weakness)
Limited technology and venture capital Less innovation
Limited access of producers to markets
Limited HR skills/skills
Limited promotion_
O (Opportunity)
SO
WO
There is a business expansion program Conduct coaching and training in the useEstablishing financial institutions such as There are events or exhibitions of localof social media to expand productcooperatives and strengthening capital, products that help promote purun wovenmarketing. promotion and customer networks.
products Increase sales by improving and addingUtilization of government facilities to
There is coaching and training product capacity as well as developingimprove technology and innovation.
There is the formation of groups of purunnew products.
craftsmen from outside parties (NGOImprove and organize institutional institutions). extension workers with craftsmen and
The development of information technology strengthen the existence of groups of
craftsmen and takers.
T (Threats)
ST
WT
There are substitute products that arePerform production management. Increase product promotion so that
competitors (eg plastic mats) Utilizing craftsman skills in productproducts can compete in the market.
Decreased consumer interest in purundiversification and marketing. To provide guidance and assistance to
woven products Maintain good relationship with suppliersMSMEs in order to increase the spirit of
Conversion of swamp land for purun to oilto ensure product continuity craftsmen to be creative and innovate.
palm plantation Conducting training activities to attractSave production costs.
Public access to take raw materials isinterest and increase the knowledge of increasingly difficult young people in order to maintain the
Climate Change and fires on peatlandscontinuity of the purun woven household
during the dry season_business._
The results of the analysis in the External Factor Evaluation (EFE) show that the opportunity factor is still superior to the threat factor. This means that the opportunity factor owned by the household business of purun products in Menang Raya, Pedamaran District can be used as a dominant factor in influencing the development process. It is stated that the main opportunity for the home business of this product is the existence of a business expansion program that makes purun product innovation, with a score of 0.53. The main threat is the existence of substitute products that become competitors and the decline in consumer interest in purun woven, which is stated with a score of 0.16. Meanwhile, the average opportunity of a home business for products is 0.42 and the average threat is 0.13.
After adding the weights and ratings of internal and external factors, it can be seen that the difference between internal factors is -0.02 and the difference between external factors is 0.29. To see the internal and external quadrant matrices in more detail, it can be seen in Figure 1.
Results from the internal and external quadrant matrices, it shows that the total value of the weighting score of the SWOT analysis of the purun household business in the village of Menang Raya, the internal factor value is -0.02, meaning that this value is the result of the difference between strengths and weaknesses. Meanwhile, the external factor is 0.29 which is the result of the difference between opportunities and threats. After being calculated and described in the internal and external quadrant matrices, the household business of the purun product in Menang Raya is in quadrant III, namely the turn-around strategy. Turnaround strategy is a strategy that is applied to support in minimizing the company's internal problems so that it can seize a better market (turn around).
The result of the analysis of all internal and external factors can be formulated using a SWOT Matrix containing a combination strategy of SO (Strength-Opportunity), ST (Strength-Threat), WO (Weakness-Opportunity), and WT (Weakness-Threat). The SWOT matrix can produce four kinds of possible strategies that can be used as alternative strategies for home businesses of purun woven products in Menang Raya Village, Pedamaran District. The results of the strategy analysis can be seen in Table 3.
Based on the identification of internal and external strategic factors found in the household business of purun woven products in Menang Raya, an alternative strategy for the home business of purun products can be applied by implementing the W - O (Weekness -Opportunity) strategy. The strategic design that should be carried out is as follows.
1. Establishing financial institutions such as cooperatives and strengthening capital, promotion and customer networks. The existence of financial institutions such as cooperatives makes it easier for craftsmen to make savings and loans for business capital for purun woven products. This cooperative aims to improve the welfare of the community, especially the purun woven craftsmen by means of credit. The loans provided are also very affordable with very light interest when compared to banks. Furthermore, one of the weaknesses of craftsmen in running a business is the limited promotion carried out. The existing opportunities related to product promotion include events or exhibitions of local products and the development of information technology is expected to be used optimally to support the promotion of purun woven products. Therefore, limitations in terms of promotion can be controlled by using promotional media that are currently developing;
2. Utilization of government facilities to improve technology and innovation. The government's attention to the empowerment of MSMEs is an opportunity that craftsmen can take advantage of in improving the quality of their business. Coaching and training programs that can improve the quality of human resources for craftsmen in business management as well as capital assistance in the form of subsidies. In addition, the existence of a showroom that is used to extend MSME products and exhibitions can support product marketing. Some of these facilities can be utilized by craftsmen to minimize problems in terms of product innovation, capital and marketing.
CONLUSION
From the analysis that has been carried out in this study, it can be concluded that the marketing strategy for the home business of purun woven products is in quadrant III which supports the turn-around strategy. The home business of purun woven products has market opportunities, but on the other hand there are several internal constraints or weaknesses. An alternative strategy for craftsmen to carry out a marketing strategy for purun woven products can be applied by carrying out a WO (Weakness-Opportunity) strategy, namely optimizing the use of various media in increasing promotion and utilization of government facilities to increase innovation, capital, production management and marketing.
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