INTRODUCTION PT. Sinergi Karya Optima (PT SKO) is a company established on 2015. Essentially it is a distribution company that works and operates with artist and convenience stores. PT SKO mainly targets a more nationalistic customers as their products have many different Indonesian artist in a range of genres. According to the Operation Director the opportunity of building this company arises because there isn’t much music stores that sells CDs nowadays, it is fading away but surprisingly according to the company’s market research there are still much demand from this market outside of big cities.
They pitched the business plan and Alfamidi liked the idea. Alfamidi believes that by selling music in their store they can use the artist’s popularity to promote the store. Also music labels have limited store to sell their products in so from their perspective it is a good deal.
There were 700 stores in 2015 and as of December 2017 they expanded and already have 1400 stores all around Indonesia. RESEARCH QUESTIONHow can having a better marketing strategy affect sales of the company? RATIONALEThe research focuses on how well does the company manage to sell it’s product and do they still appeal to customers. This research will help PT. SKO as METHODOLOGY Primary Sources:Complete sales data report from the year 2015 until 2017Interview from operation director and survey from target marketObserve work process in the main office and alfamidi storesCompetitor observationSecondary Sources:Music trendsBusiness Management HL IB Diploma Textbook. For a better understanding of the terms and theories that will be used.
It will also serve as a guideline on how to analyse properly. Limitations:Time constraintsBiased data and possibly some secret data that is kept hidden from the public/competitors. THEORIES & TOOLS:4Ps Marketing MixThis stands for Product, Place, Promotion, Price.Marketing mix is a tool to help companies understand what their product/services could offer potential customers. This tool also is used to plan and strategize a successful product offering.
Which is a very useful device to be using for a person trying to help a company’s sales, that is where I come in. 4ps is a basic tool in all of marketing mix, it is the most commonly used by companies and it is effective. This helps to improve sales, because it splits the company into 4 parts and they decide which one to allocate their time in, does the company need more promotion? Or is it too expensive? Etc. Ansoff MatrixThe Ansoff Matrix is a strategic planning tool that provides a framework to help executives, senior managers, and marketers devise strategies for future growth. To show where you are in the market, or to decide in entering a new market. Market diversification is the most It is named after Russian American Igor Ansoff, who came up with the concept. SWOTSWOT stands for; Strength, Weakness, Opportunities, Threats. This tool is particularly used amongst the companies internals, as a way to self examine the company itself and the product that they are selling.
Together they discuss what they need to improve and what they are already good at. Listing down opportunities to take for the near future and eliminating threats by doing so. MAIN RESULTS, FINDINGS & ANALYSIS, DISCUSSION (Sales data of 12 months in 2015-2017)As can be seen that the amount of CD’s sold in 2017 is decreasing drastically compared to 2015 and 2016. Numbers that are always present such as; 33.000, 23.000, 14.
000, 11.000 seems to disappear from this year’s sales. Somehow the company only make around 5,000 in average not even as close as previous years.
Why is that? One drawback from this annual data report is that, PT. SKO hasn’t updated the sales of December 2017. Qualitative Data: Interview with Djarot Seno Puguh (operations director)When is your company starting to face problems that leads to loss of revenue?”I think it all started on March 2017 when we see a decline, we think the economy is not good and people tend to restrain from buying non basic stuff, like things that aren’t crucial. Many people especially middle lower class would rather want to spend their money on meat.
vegetables, water, sandals, etc.”