CC BY
6
UDC 332; DOI 10.18551/rjoas.2023-02.21
MARKETING STRATEGY OF VALUE ADDED PRODUCT: A CASE STUDY AT CV. BEE JAY SEAFOOD PROBOLINGGO, EAST JAVA, INDONESIA
Suseno D.A.N., Mareta Z.*, Surahmat D., Priono B., Hasanah U.
Department of Agribusiness of Fisheries, Politeknik Kelautan and Perikanan Sidoarjo,
East Java, Indonesia *E-mail: zayafikamareta@gmail.com
ABSTRACT
The participation of the fisheries and marine sector in contributing to the country's foreign exchange is deemed to have a strategic impact on national economic development. One of the companies engaged in the processing of fishery products that produce various kinds of ready-to-eat products (value added products) is CV. Bee Jay Seafood, Probolinggo. This study aims to analyze marketing strategy activities using SWOT analysis approach and Marketing Mix and formulate selected strategies using Analytical Hierarchy Process (AHP). This research used the purposive sampling technique. The results of the SWOT analysis obtained the IFAS value of 3.3234 while the EFAS value of 3.4528. Thus the IE matrix CV. Bee Jay Seafood is in a growth position. The AHP strategy used is to maintain and improve product quality so that it can increase consumer loyalty to the product. Re-analyzing the right market sector for Bee Jay Seafood products, as well as developing new product variants to meet market share and increase profits is one of the best ways to minimize existing threats. The product used is made from Snapper fish as a result of trimming from fish fillet products. The value added products produced are in the form of tempura, samosa, nungget, meatballs, mini wontons, otak-otak, gyoza and many others. The price set is around Rp. 300.000/MC (Master Carton) with a weight of 5 kg while the price per pack size of 250 grams is around Rp. 18,000 to Rp. 26,000 according to the type of product. The company's location is on Jalan Tanjung Tembaga Barat Mayangan, Mayangan District, Probolinggo City, with a total land area of 2500 m2 and a building area of 2400 m2.
KEY WORDS
Marketing, product, development, business.
Welfare and quality of life have increased making people nowadays prefer ready-to-eat fishery products with guaranteed quality added value. With the availability of various types of products on the market, people can choose what products they will consume, accompanied by changes in lifestyle and consumption patterns in the current era [13].
The participation of the fisheries and marine sector in contributing to the country's foreign exchange is deemed to have a strategic impact on national economic development. In addition, this sector also provides a source of animal food that has a high protein value as well as one of the providers of large employment opportunities in Indonesia. This certainly supports government activities in the context of efforts to improve community nutrition and reduce unemployment [2].
The marine and fisheries development policy in 2015-2019 is determined by taking into account the three dimensions of national development, namely in terms of human resources, leading sectors, and regions. The marine and fisheries sector is one of the leading national sectors with a business function approach from upstream to downstream processes. Market competition is getting stronger because of the emphasis on products from upstream to downstream which can be considered as zero waste. This competition certainly creates competition between one company and another, so a good marketing management concept is needed to be able to compete with competitors.
Marketing strategy is one way to win the competition and show superiority on an ongoing basis both for companies that produce products or services. Marketing strategy can be regarded as one of the strategies for compiling a comprehensive company plan. Another
thing that is considered quite important in planning a marketing strategy is the increasingly fierce competition between companies. Companies must be able to increase their effectiveness [12].
One of the companies engaged in the processing of fishery products that produce various kinds of ready-to-eat products and has added value is CV. Bee Jay Seafood Probolinggo. The company has been able to produce and distribute the results of processing national fishery products. The targeted market share is in the form of hotels, restaurants, retail markets, and also several industries related to fishery products.
The purpose of this research is to analyze marketing strategy activities using a SWOT analysis approach with four perspectives, namely strengths and weaknesses as well as opportunities and threats. Analysis of the Marketing Mix (Marketing Mix) is also carried out to deepen the analysis of the strategy used, with four perspectives namely, product, price, promotion, and place by analyzing. The results of the analysis of the marketing mix will be compiled to strengthen the marketing strategy in CV. Bee Jay Seafood Probolinggo.
METHODS OF RESEARCH
The method of taking the location in this study was done intentionally (purposive). The collection method is a purposive sampling technique, namely by determining certain criteria [11]. With the consideration that CV. Bee Jay Seafood is currently trying to expand its existing market network. This research was conducted at CV. Bee Jay Seafood, Mayangan District, Probolinggo City. The research was conducted for 3 months, from March to May 2021.
The data collection method used in this research is to use interview techniques and observation. Writing research results in a qualitative form. The qualitative method was chosen because this method can describe complex backgrounds and interactions, explore types of information, describe information, understand processes, and obtain clarity of meaning from each behavior pattern shown by consumers of CV. Bee Jay Seafood Probolinggo, which will be analyzed with a Linkert scale with SWOT analysis aspects namely weaknesses, strengths, opportunities, and threats, and the marketing mix includes the product, price, place, promotion, which will then be analyzed to find out what improvements need to be made by CV. Bee Jay Seafood Probolinggo.
The study began by conducting interviews with the owner of the CV. Bee Jay Seafood Probolinggo related to the marketing strategy carried out in the company, by using a questionnaire to find out the strengths, weaknesses, opportunities, and threats faced by CV. Bee Jay Seafood, besides that, an approach related to the marketing mix used is also carried out, namely product, price, place, promotion.
Data were collected by purposive sampling technique by giving questionnaires to respondents, namely the owner of CV. Bee Jay Seafood Probolinggo. Furthermore, the scoring is done by the expert to determine the weight of each criterion in determining the chosen strategy.
The marketing mix used, namely product, price, place, promotion was studied descriptively by prioritizing the depth of the questionnaire in the interview so that the results obtained could be studied and analyzed further.
The next stage is the preparation of internal and external factors using SWOT analysis, namely compiling the strengths and weaknesses as well as opportunities and threats. Then from the preparation of the internal and external factors, the IFAS (internal strategic factor analysis summary) matrix and the EFAS (external strategic factor analysis summary) matrix were compiled. To find out the company's position, an IE (Internal External) matrix is prepared. Next, a SWOT matrix is compiled which produces four alternative strategies to help CV. Bee Jay Seafood in determining the right strategy, namely the SO (Strength-Opportunities), ST (Strength-Threats), WO (Weakness-Opportunities) strategy, WT (Weakness-Threats). The strategy chosen is something that is felt to be able to improve and provide solutions to problems within the company [3].
Table 1 - SWOT Matrix Diagram
IFAS EFAS Strength (S): List 5-10 internal strength factors Weakness (W): List 5-10 internal weakness factors
Opportunity (O): List 5-10 external opportunity factors Strategy SO Create strategies that use strengths to take advantage of opportunities Strategy WO Create strategies that minimize weaknesses to take advantage of opportunities
Threat (T): List 5-10 external threat factors Strategy ST Create strategies that use strength to overcome threats Strategy WT Create strategies that minimize weaknesses and avoid threats
Source: Ismail Solihin, 2012.
The Analytical Hierarchy Process (AHP) method is used to support multi-criteria decision-making [6]. The determination of the weight of each factor from the SWOT strategy is then arranged in pairwise comparisons to determine the level of importance of each alternative strategy, to obtain a priority strategy for analysis of the right marketing strategy in CV. Bee Jay Seafood, Probolinggo. The AHP method hierarchy consists of four levels. The first level is the purpose of the formulation, the second level is the SWOT factor emotion, the third level is the strategic factors included in the SWOT technique, and the fourth level is the strategy that must be evaluated and compared with each other [1] this is also reinforced by the opinion of Ratnawati [8]. While the AHP SWOT hierarchy is shown in Figure 1.
Figure 1 - Analytical Hierarchy Process (AHP) SWOT Hierarchy Marketing Strategy
RESULTS AND DISCUSSION
The results of interviews and filling out questionnaires for business actors or founders of CV. Bee Jay Seafood Probolinggo will be used to analyze the marketing mix used and compose the CV's strengths, weaknesses, opportunities, and threats.
The brand name used is BeeJay. The main raw material for fish is used in the manufacture of value-added products in CV. Bee Jay Seafood is using Snapper fish trimming results from fish fillet products. The use of these raw materials to go to zero waste product because every day CV. Bee Jay Seafood produces large quantities of fish fillets. The raw material used is fresh snapper fish meat which is handled well and the resulting product is in the form of various types of value-added products such as tempura, samosa, nuggets, meatballs, mini wontons, otak-otak, gyoza, and many others. The product is packaged in plastic packaging and labeled along with other information such as product name, distribution permit number, presentation method, company address, net weight, production date and expiration date. This is in accordance with the opinion of [5] that packaging is the key to maintaining product quality, to provide information to consumers, packaging also involves design and labeling.
To get the income as desired by the company, it is very important for CV. Bee Jay Seafood determines the pricing policy so that it gets a profit for the company. This is in accordance with the opinion of [7] that by setting a price on a product, producers will consider the costs incurred during the production process and profit to be obtained. Prices set by CV. Bee Jay Seafoods Value Added Product ranges from Rp. 300.000/MC (Master Carton) with a weight of 5 kg while the price per pack size of 250 grams is around Rp. 18.000 up to Rp. 26,000 according to the type of product.
The place of production of value added products is in a factory located at Jalan Tanjung Tembaga Barat Mayangan, Mayangan District, Probolinggo City. Total land area CV. Bee Jay Seafoods total is 2500 m2 and the building area is 2400 m2. The factory building consists of an office, fillet processing room as well as a value-added product room and several other supporting buildings.
Promotion is one of the keys to successful delivery or product identification to the public. Promotion is used to inform, persuade and influence decisions consumers and convince them to buy the product [7] This is also in accordance with the opinion of [10] that promotion is an activity that is actively carried out by the company to encourage consumers to buy the products on offer. The promotion method is used in CV. Bee Jay Seafood is with two methods, namely online and offline. The online method used by the company is by promoting and educating the public through social media such as Instagram, Facebook, Twitter, websites, and go-food. The number of buyers of CV Bee Jay Seafoods products is because they get sources of information about the existence of the product from word of mouth communication (word of mouth promotion) and the availability of products in the retail market, making it easier for buyers to find products. Promotion is carried out in various ways such as holding events, distributing brochures, product testers and installing billboards.
The next step is the preparation of the IFAS matrix as an elaboration of the internal conditions of CV. Bee Jay Seafood which is described on the strengths and weaknesses that show the value of the weight and rating of each factor (Table 2) with the results of the strength score of 1.7897 and a weakness score of 1.5337 so that a total score of internal factors (IFAS) is obtained of 3.3234.
Table 2 - IFAS matrix for CV. Bee Jay Seafood Probolinggo
No Internal Factor Weight Rate Score
Strengths
1 Quality products (premium) 0,1185 4 0,4740
2 My ingredients are high quality 0,1201 3 0,3603
3 Large production capability 0,1031 4 0,4124
4 Owners and employees synergize well 0,0763 3 0,2289
5 A good cooperative relationship with distributors 0,1047 3 0,3141
Sub Total 0,5227 1,7897
Weakness
1 Improving skills and skills is not given much attention 0,1025 2 0,205
2 The use of processing technology is still semi-manual. 0,0657 3 0,1971
3 The selection of market segmentation is not right on target 0,1039 4 0,4156
4 Determination of price margins that are not too far between distributors and agents 0,1004 4 0,4016
5 Promotion for the surrounding community is less effective 0,1048 3 0,3144
Sub Total 0,4773 1,5337
TOTAL 1 3,3234
The steps for compiling the EFAS matrix for mapping the external conditions of CV. Bee Jay Seafood through the factors of opportunity and threat. This matrix describes the condition of business opportunities owned by CV. Bee Jay Seafood and threats faced in product marketing (Table 3). The results of the EFAS matrix show that the opportunity score is 1.8134 and the threat is 1.6394 so that a total score of external factors is 3.4528.
After compiling the IFAS and EFAS matrix, the next step is compiling an IE (Internal External) matrix to determine the condition of CV. Bee Jay Seafood. This matrix is the first step in formulating an alternative strategy to strengthen marketing for competitive advantage.
IFAS value with a total of 3.3234. While the EFAS value is 3.4528. The results of the preparation of the EFAS matrix are the average IFE and EFE obtained from the total score on each factor, where the score is obtained from the multiplication between the average rating and the average weight for each factor. This value indicates the position in quadrant I (Figure 2), with the meaning that CV. Bee Jay Seafood is at the point of Grow Strategy. Grow Strategy is a growth vase that requires a strategy to continue to grow. This is in accordance with the opinion of [4] that quadrant I is a strategy that requires concentration and is carried out through vertical integration, namely by cooperating with suppliers or by adding distribution networks. This is a key strategy for companies that have a strong competitive market position in a highly attractive industry.
Table 3 - EFAS matrix for CV. Bee Jay Seafood Probolinggo
No External Factor Weight Rate Score
Opportunity
1 Consumer consumption is quite high 0,1012 4 0,4048
2 Government policies that encourage companies to develop, 0,0883 3 0,2649
3 Consumer confidence in quality products 0,1108 4 0,4432
4 Raw materials that are always available 0,0875 3 0,2625
б People's lifestyle towards frozen food 0,1095 4 0,438
Sub Total 0,4973 1,8134
Threat
1 Rising raw material prices increase production costs 0,103 3 0,309
2 High competitiveness among similar businesses 0,1104 4 0,4416
3 There is a struggle for market share between companies 0,0918 3 0,2754
4 Suppliers can switch to other companies 0,0883 2 0,1766
б Marketing strategy of other companies that are more competitive 0,1092 4 0,4368
Sub Total 0,5027 1,6394
TOTAL 1 3,4528
4,0
3,4528
3,0
Total Score EFE
2,0
Strong 3,0-4,0
1,0
3,3234 Total Score IFE
Average 2,0-3,0
Weak 1,0-1,99
-1- II III
IV V VI
VII VIII IX
Strong 3,0-4,0
Ava rage 2,0-3,0
Weak 1,0-1,99
Figure 2 - Internal and External Matrix SWOT
After obtaining the perspective results from the SWOT matrix, the next step is to determine the priorities of each of the existing strategies. The arrangement is a strategic goal of strength CV. Bee Jay Seafood's marketing strategy. CV. Bee Jay Seafood from the four perspectives studied, namely strengths, weaknesses, opportunities, and threats. Each internal and external factor is sub-criteria. Meanwhile, the results of the strategy formulation in the SWOT matrix are used as an alternative to be selected through the weighting of pairwise comparisons in the AHP model in Table 4.
Table 4 - Alternative Strategies with SWOT Matrix
IFAS EFAS Strengths (S) • Quality products (premium) • My material is high quality • Large production capability • Owners and employees synergize well • Good cooperative relationship with distributors Weaknesses (W) • Improving skills and skills is not given much attention • The use of processing technology is still semi-manual. • Selection of market segmentation is not right on target • Determination of price margins that are not too far between distributors and agents • Promotion for the surrounding community is less effective
Opportunities (O) • Consumer consumption is quite high • Government policies that encourage companies to develop • Consumer confidence in quality products • Raw materials are always available • People's lifestyle towards frozen food Strategy S-O • Maintain and improve product quality to increase consumer loyalty to the product and obtain promising profits. (S1, S2, O1, O3, O5) • Mass production / large to reduce production costs so that prices are more affordable. (S3,S4,O2,O4) • Maintaining hereditary efforts to support government programs and fulfill a wide market share (S4, S5, O1, O2, O5) Strategy W-O • Include skills and expertise training to support quality product quality (W1, W2, O3, O5) • Changing the use of manual SMEI technology by using modern tools to meet a market share that has wider potential (W2, O1, O2, O5) • Selecting and sorting target consumers according to product quality so that the margins obtained are getting bigger (W3, W4, O1, O3, O5) • The prices given to distributors, agents, and end-users are different considering the different targeted segments (W3, W4, O1, O2) • More vigorous promotions can gain a wider market share (W5, O1, O5)
Threats (T) • Increase in the price of raw materials adds production costs • High competitiveness between similar businesses • The struggle for market share between companies • Suppliers can switch to other companies • Marketing Strategy for other companies that are more competitive Strategy S-T • Maintain price stability and use of raw materials to ensure product quality (S1, S2, T2, T4) • Creating new flavor variants with guaranteed quality and taste to compete with new variants in other companies (S1, S2, T2, T3) • Conduct marketing strategies sharply to achieve the right and wider market share (S1,T2,T3, T5) Strategy W-T • Include skills and expertise training to support quality product quality (W1, W2, T2, T5) • Expanding and sharpening market segmentation to retain and gain consumers (W3, W5, T2, T3, T5) • New product variants to meet market share and increase profits (W1, W2, T2, T3, T5)
The best strategy that CV. Bee Jay Seafood can do, namely by emphasizing the results of the greatest strength that CV. Bee Jay Seafood has, namely quality products with a value of 0.4740. This can be done by maintaining and improving product quality to increase consumer loyalty to the product and obtain promising benefits for the company. The biggest weakness that must be avoided in the selection of market segmentation is that is not well targeted with a value of 0.4156. This can be minimized by re-analyzing the right market sector for CV. Bee Jay Seafood products. Selecting and sorting out target consumers in accordance with product quality so that the margins obtained are even greater. Seeing the opportunities they have, Cv. Bee Jay Seafood can still win the hearts of consumers with quality products with a value of 0.4432. Of course, this is a good opportunity for the development of CV. Bee Jay Seafood products. Maintain price stability and use of raw materials to ensure product quality. The threat that must be watched out for is the emergence of similar products in the field of value-added products, both industrial and household scale with a value of 0.4416. Developing new product variants to meet market
share and increase profits is one of the best ways to minimize existing threats. The availability of various flavors and various types of products will make consumers continue want to try the products produced by CV. Bee Jay Seafood.
CONCLUSION
Based on the results of the analysis carried out, the conditions of CV. Bee Jay Seafood Probolinggo are at a growth point that requires internal strengthening through competitive advantage so that business development can be carried out. The strategy applied is to maintain and improve product quality to increase consumer loyalty to the product and obtain promising profits for the company. Strengthening market segmentation also needs to be reviewed, so that marketing activities will be more effective, and this can help increase the number of sales of CV. Bee Jay Seafood products.
The best strategy to get out of the red ocean value-added market is to continue to do creativity and product innovation. With various types of product variants, consumers will continue want to try CV. Bee Jay Seafood products.
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