PROPOSED MARKETING STRATEGY TO INCREASE SALES BY INCREASING BRAND WARENESS OF WATER & WASTEWATER TREATMENT COMPANY (PT DWIKARYA MITRA SEJATI)

Irfan Yusuf Saputro¹, Mustika Sufiati Purwanegara²

Institut Teknologi Bandung, Indonesia

irfan_saputro@sbm-itb.ac.id¹, mustika@sbm-itb.ac.id²

Abstract

PT Dwikarya Mitra Sejati is a company in the form of a Limited Liability Company and is engaged in trading chemicals and services. Where its existence is needed as a company engaged in the distribution and trading of chemicals. It has a chemical storage warehouse in Tangerang. PT Dwikarya Mitra Sejati, the company has a problem with declining sales in every year. PT Dwikarya Mitra Sejati offers a wide range of chemicals to meet industrial needs. However, PT Dwikarya Mitra Sejati has not been optimal in terms of product marketing. So, it can be assumed that the cause of the decline in the company's sales is the absence of a clear and optimal marketing strategy plan. The purpose of this research is to analyze the external and internal business conditions at PT Dwikarya Mitra Sejati so that they can find out the root problems experienced and can implement marketing programs that can increase the company's income. The qualitative method that will be applied in this research is collecting primary and secondary data through internal and customer interviews from PT Dwikarya Mitra Sejati. The main reason for the decline in the percentage of company sales is the absence of a marketing strategy implemented by PT Dwikarya Mitra Sejati. In this research; PETEL analysis, Porter’s 5 Forces, and Customer analysis is used for external analysis. Meanwhile, for internal analysis, Marketing Mix 4p was used, VRIO analysis, purchase analysis. From the results of this study it is suggested that companies make brands easier to recognize and remember as well as build customer trust in these brands and increase sales with STP Strategy, POS Marketing Strategy, and Conventional Marketing Strategy.

Keywords: Chemical trade, distribution, marketing, customer, Marketing Mix, PESTEL, Porter's 5 Forces, Purchase Analysis, Qualitative, VRIO.

Introduction

In big cities, the problem of environmental pollution by wastewater is very important. Wastewater generated from human activities is industrial wastewater and domestic wastewater. Industrial wastewater is wastewater produced from the production process in the activities of a manufacturing industry or factory. Meanwhile, domestic wastewater is wastewater generated from daily human activities including from toilets, kitchens and canteens, bathrooms and washing clothes.

In general, waste treatment can be carried out in three ways, specifically physical treatment, biological treatment and chemical processing (Alqausar, 2019). These three methods aim to stabilize and eliminate contaminants that can impact labor on environmental health. Chemical waste treatment, this waste treatment requires chemicals to precipitate, separate, remove impurities in the waste.

Figure I. Existing Demand Water in Java (Asian Development Bank, 2016)

The largest demand and use of water in Indonesia is located in Java, according to data (Asian Development Bank, 2016) the need for clean water needed for maintenance flow is 95%, the total water demand for agriculture in Indonesia is estimated at around 3,500 billion cubic meters (m3) per year. This encourages market demand for industrial supporting materials that continues to increase, especially in the industrial sector that requires chemicals.

Sales is one of the main goals in running a business. The decrease in sales can be caused by several factors such as an economic crisis or a pandemic. According to the General Chairperson of the Association for Basic Organic Chemistry (AKIDA), world commodity prices in 2021 will rise 50-100 percent and continue until Q1-2022. This makes the chemical industry raw materials will experience a surge and will be very burdensome for the upstream chemical industry sector because it will increase production costs by 30%-50%. (Lestari & Vikaliana, 2021).

Figure 4. %Sales of PT DMS 2019 – 2022

Based on Figure 4, PT Dwikarya Mitra Sejati has encountered a drop in sales over the last three years. In 2019, the company earned an average sale of 53%. However, during the COVID-19 pandemic in 2020, company sales continued to decline by an average of 42%. Even though in 2021 the pandemic has begun to be resolved by the government, the company's continue to decline by 33% due to a significant increase in the price of chemical raw materials. The decline in sales continued into Q1 and Q2 2022 to 29%. The company can still do price suppression during the month. However, in the last three months, specifically July, August, and September, the company experienced a decline in sales by 25%, 17%, and 14%.

Since PT Dwikarya Mitra Sejati does not yet have a marketing and strategy team yet, these problems cannot be avoided. Therefore, it is necessary to analyze and propose marketing strategy solutions to increase company sales. This research is focused on the proposed marketing strategy of PT. Dwikarya Mitra Sejati in order to increase its sales and be able to implement this strategy in the future.

From the data obtained in a period of three years, the company continues to experience a decline in sales from the sale of chemical products (Paramadita, Umar, & Kurniawan, 2020). This continuous decline is due to the absence of a marketing strategy implemented by PT Dwikarya Mitra Sejati. Given these constraints, it is necessary to analyze and propose marketing strategy solutions to increase company sales. The research is focused on the proposed marketing strategy of PT Dwikarya Mitra Sejati in increasing sales in the future so that the strategy can continue to be applied in future. The objectives of this research are to analyze the internal and external business condition of PT Dwikarya Mitra Sejati, to generate proposed marketing strategy by online marketing to increase the brand awareness for PT DMS, and provide implementation plan of marketing strategy for PT Dwikarya Mitra Sejati

Methode

The type of research used is qualitative research. With seven analysis methods PETEL, Consumer, Porter’s five forces, VRIO, Marketing Mix (4p), Purchase and matrix SWOT analysis. This study was conducted to determine the company's internal and external conditions and recommend marketing strategies that are suitable for the company (Siersma & Guassora, 2015).

Types and sources of data used in the study are primary and secondary data. Primary data is collected from the interview of owner from PT Dwikarya Mitra Sejati and PT Dwikarya Mitra Sejati’s customers, and secondary data is obtained from several sources such as publications, and associations. Secondary data is data related to this research which is obtained from related sources (Sigit Hermawan & Amirullah, 2021).

PT Dwikarya Mitra Sejati has experienced a decline in sales over the last three years. This is also caused because there is no marketing strategy implemented by the company. So, this research aims to provide a marketing strategy solution that can be applied by the company in the future (Shtal et al., 2018). The limitation of the research problem is only to discuss the company's internal and external factors obtained through interviews with PT Dwikarya Mitra Sejati. Types and sources of data used in the study are primary and secondary data. According to (Siersma & Guassora, 2015), to get the ideal interview from costumers, it takes six to ten participants with customers who have made regular purchases (Sugiyono, 2017).

In the internal environment, VRIO analysis, Marketing Mix 4p are used. In the external environment, PETEL analysis, Porter’s 5 forces and Consumer analysis are used. In its implementation, primary data was obtained from direct interviews with the owner of PT Dwikarya Mitra Sejati and six consumers of PT Dwikarya Mitra Sejati who have the authority to make decisions (PIC). Secondary data, obtained from the relevant literature to find information and theoretical basis that supports the research (Daryanto & Hasiholan, 2019).

In preparing the marketing strategy using the SWOT matrix method. (Setyorini & Santoso, 2017). The SWOT matrix produces several alternative strategies that are obtained from internal and external variables according to the company's position. This analysis was carried out using data collection tools, specifically observation, interviews and documentation guidelines.

Result and Discussion

1. Analysis

1) External Environment Analysis

PETEL Analysis Result

Table 1. Summary of PETEL Analysis Results

Factor	Issues
Political	Opportunities: · Issuance of green industry standard rules in Number 51/M-IND/PER/6/2015 Threat: · The issues of payment of government projects to private parties that take a long time, at the earliest 3 months or 6 months.
Economical	Opportunities: · Indonesian economic growth · Growing industrial demands · Increased foreign investment in the industrial sector Threat: · Increasing number of competitors · The exchange rate of the rupiah against the dollar is unstable.
Technological	Opportunities: § The ease of accessing information due to adaptation to using gadgets and other technologies.
Environmental	Opportunities: § Construction of Wastewater Treatment Plants (IPAL) in the JABODETABEK area for clean water in Indonesia. Threats: § The depletion of ground water as a raw material
Legal	Opportunities: § Regulatory support from the central government for UMKMs from all aspects § Required to treat wastewater before Threats: § Government policies that change every time the leader changes

Porter’s 5 Forces Analysis Result

Porter's 5 forces analysis is used to analyze the external environment of the company PT Dwikarya Mitra Sejati based on competition from similar companies, the threat of new entrants, the threat of substitute products, the bargaining power of buyers and the bargaining power of suppliers.

Table 2. Summary Porter's 5 forces analysis result

No	Factor	Result
1	Rivalry among existing competitors	Moderate Competition
2	Threat of new entrant results	Low Threat
3	Threat of substitutes results	Medium Threat
4	Bargaining power of buyer	Bargaining power of buyers is high
5	Bargaining power of supplier	Bargaining power of suppliers is low

Customer Analysis Result

Customer analysis was carried out on six respondents from PT Dwikarya Mitra Sejati at this time. This question was asked to customer to understand the performance of PT Dwikarya Mitra Sejati in terms of products and services so far. Interviews were conducted with consumers of PT Dwikarya Mitra Sejati to find out how the company's performance has been so far. In terms of the chemical products offered, consumers find it helpful in processing waste in their company. The quality received by consumers is always well maintained. PT Dwikarya Mitra Sejati always opens time to continue communicating with its customers if there are field problems. For the price offered, it is still no different from its competitors, but the quality and service so far is quite different from other companies. PT Dwikarya Mitra Sejati once encountered obstacles in delivering its products, but it can be communicated with customers and provide solutions if the delivery cannot be on time. With these services, consumers feel that PT Dwikarya Mitra Sejati provides more services so that they do not hesitate to pay a little higher if they need chemicals urgently.

For the second interview, five questions were asked to potential customers from PT Dwikarya Mitra Sejati. Interviews were conducted directly when the company was conducting field trial products. From the results of the questions, it was found that the person in charge or the PIC of the company still did not know about PT Dwikarya Mitra Sejati, most of them got references from the previous owner's co-workers. For products offered and trials conducted, it was found that PT DMS products had the same results as existing customer products. However, due to the manufacturing business process that requires other parties for approval. For various problems that consumers get, there are suppliers of technicians who are less skilled, products that lack efficiency, and ease in conveying problems quickly.

It can be concluded that in this customer analysis, PT Dwikarya Mitra Sejati is still lacking in informing about the company. Dissemination of information is still done traditionally or by word of mouth. Due to the relatively long B2B process, it is hoped that companies can disseminate information digitally so that those responsible or PICs can see the company's credibility online so that they can increase their awareness.

2) Internal Analysis

VRIO Analysis Result

In the VRIO analysis, questions were asked to the owner of PT Dwikarya Mitra Sejati to identify resources such as; Valuable, Rare, Imitate, and Organization owned by the company whether it has a sustainable competitive.

Table 3. VRIO analysis of PT DMS results

Is valuable	Is Rare	Is Difficult to Imitate	Is Organization organized around	What is the result?
NO	-	-	-	Competitive Disadvantage
YES	NO	-	-	Competitive Parity
YES	YES	NO	-	Temporary Competitive
YES	YES	YES	NO	Unused Competitive
YES	YES	YES	YES	Long-term Competitive

PT Dwikarya Mitra Sejati is still included in the unused competitive advantage category because the company has three of the four VRIO criteria. The resources owned by PT Dwikarya Mitra Sejati are expensive to imitate. So that PT Dwikarya Mitra Sejati does not fully utilize existing resources due to the lack of human resources and structured organization.

Marketing Mix (4p) Result

In the analysis of the marketing mix (4p), PT Dwikarya Mitra Sejati implements strategies, including:

a. Product

Product is something that can be sold by the company in the form of services or goods that can provide solutions to consumers. The following are products that are often ordered by consumers from PT Dwikarya Mitra Sejati, specifically:

General Chemical:

Ferric Chloride
White Petroleum Jelly
Phosphoric Acid
Sodium Metabisulfite
Soda Ash Dense
Nitric Acid
Caustic Soda

Water & Waste Water Treatment Chemical:

Poly Aluminum Chloride / PAC Liquid
PAC Powder
Hi-Flock 989
Semichem – 800

Each product packaging offered is tailored to the needs of consumers. There are some consumers who need in packs of 10 kg, 25 kg, jerry cans and drums. There are two products offered, specifically general chemical, and chemical for water and waste water treatment. There are four products with a brand made by the company, specifically Semichem. Semichem is a superior product offered by PT DMS for wastewater treatment so that the treatment process is more effective.

b. Price

Price is the cost that consumers need to pay to buy the product offered. PT Dwikarya Mitra Sejati uses the price of chemical goods according to economic conditions and competitor prices. In economic conditions, there are several products that are sold using USD ($). Therefore, PT Dwikarya Mitra Sejati sells these goods to consumers by adjusting the USD rate per day. And in competitor prices, PT Dwikarya Mitra Sejati adjusts to the market price of raw materials, the prices offered also adjust to the prices offered by competitors. Therefore, the price of PT Dwikarya Mitra Sejati is still affordable according to consumers.

PT Dwikarya Mitra Sejati set the price per unit in kilograms. Each product has a different price, but what is offered does not include the 11% tax price. One product such as Multiflock is sold at a price of $ 5.00 / kg and Nitric Acid is sold at a price of IDR 14,000 / kg.

c. Place

PT Dwikarya Mitra Sejati has an office and warehouse located in South Tangerang. According to an interview with the owner of PT Dwikarya Mitra Sejati, the location in South Tangerang is considered quite a strategy because the toll road access is close and most of the consumers of PT Dwikarya Mitra Sejati are in Tangerang so there is no need to spend a lot of shipping costs.

d. Promotion

Promotional activities are one of the important activities in the marketing process. PT Dwikarya Mitra Sejati conducts promotional activities by implementing soft selling. PT Dwikarya Mitra Sejati business model is B2B, the company still applies the traditional way to promote its products by making phone calls or giving samples. Giving chemical samples is intended so that consumers can conduct trials first, whether the product is in accordance with what is needed by consumers. PT Dwikarya Mitra Sejati offers a direct field trial of its chemical products and the results can be seen on the same day. Based on an interview with the owner of PT Dwikarya, it aims to build a positive brand image and increase the chances of consumers to subscribe.

2. Business Solution

By increasing sales value, brand awareness is needed from PT Dwikarya Mitra Sejati. The goal is to introduce the company's brand and products to the target market. Making the brand more recognizable and memorable will also build customer trust in the brand and increase sales. The following are strategies that can increase company brand awareness.

STP Strategy

PT Dwikarya Mitra Sejati can use a strategy that determines the target consumer. Determining this target market can make marketing efforts more measurable and effective. The following is the STP marketing proposal for the company:

1) Segmenting

Based on the buyer's repurchase data, there are several industrial groups that adjust to the products offered. PT Dwikarya Mitra Sejati can approach products based on consumer background and consumer location. PT Dwikarya Mitra Sejati can be divided based on three groups, namely manufacturing, industrial areas and trading companies. And dividing the area into Jakarta, Bogor, Depok, Tangerang, and Bekasi.

2) Targeting

After determining the segmentation of industry groups, the next stage is targeting. In this stage, PT Dwikarya Mitra Sejati must focus on which industry to offer. With many big company competitors. PT Dwikarya Mitra Sejati can offer its products to the smallest market segmentation first. By offering products with small needs, the company has easy access to enter the industry and continues to establish long-term relationships to strengthen the branding of PT Dwikarya Mitra Sejati which offers products with guaranteed service and quality. So that in the future PT Dwikarya Mitra Sejati can do cross-selling and upselling.

3) Positioning

In this positioning stage, PT Dwikarya Mitra Sejati can determine how products and companies are represented in the minds of customers. PT Dwikarya Mitra Sejati can do product positioning in overcoming problems in water and wastewater treatment which is guaranteed by the experience, price, and effectiveness of its products. This positioning can be supported by digital access so that companies can reach potential customers anywhere.

Table 5. STP Marketing Strategy Solution

STP Marketing Strategy
Criteria	Solution
Segmenting	Industry group approach in JABODETABEK and divided based on three groups, namely manufacturing, industrial areas and trading companies
Targeting	Offering its products to the smallest market segmentation to establish good relationships so as to increase cross-selling and upselling in the future.
Positioning	Product positioning (practice, price, and effectiveness of the product) and added digital access.

POS Marketing Strategy Model

PT Dwikarya Mitra Sejati can apply the POS strategy as a medium of communication with consumers. The strategy also aims to increase consumer awareness regarding company reputation information online.

The POS Strategy Model is an advertising model with the aim of increasing the use of digital marketing where this model is perfect for small businesses with limited funds in doing marketing. POS has three components, namely Paid, Owned, and Shared.

1) Owned

PT Dwikarya Mitra Sejati can have online property that can be controlled by the company itself. Owned media aims to encourage company engagement and awareness. PT Dwikarya Mitra Sejati can create a company website and implement Search Engine Optimization (SEO) with the aim of building a company reputation, providing detailed product and company information.

PT Dwikarya Mitra Sejati can provide valid, complete, and actual information, making it easier for consumers to find company profiles, and become a consumer analysis tool. In optimizing SEO, PT Dwikarya Mitra Sejati must continue to optimize SEO by understanding how search engines work in ranking websites based on certain requirements.

2) Paid

PT Dwikarya Mitra Sejati can use the paid media method, namely promoting content for a fee. The purpose of paid media is to increase brand awareness and reach a wider audience. In the B2B business model, PT Dwikarya Mitra Sejati can use LinkedIn Ads. Companies can easily send messages about products or brands to target customers through the LinkedIn Ads message feature.

The second platform is the paid Search Engine Marketing (SEM) platform, SEM aims to place the company's website on the first page in search engines. SEM effectively increases the likelihood of a company's website being chosen by potential consumers for information.

The third platform is Email & Whatsapp Marketing and B2B e-commerce, by implementing email marketing and B2B E-commerce PT Dwikarya Mitra Sejati can increase customer trust, can separate personal emails, and represent the product company.

3) Share

PT Dwikarya can also implement share media. Share media aims to provide a platform for voluntary comments and discussions about the company from other users. LinkedIn and Google Reviews are shared media that companies can use. Google Reviews is very influential to improve the company's reputation and increase rankings on search engines. Because Google Review is a place to filter feedback from customers and is integrated with Google Maps so that it can increase the company's business exposure in the public eye.

Conventional Marketing Media Strategy

Here are offline marketing strategy solutions:

1) Participate in Trade Shows

Trade shows are essentially the perfect networking event for companies in B2B sales. PT Dwikarya Mitra Sejati can organize or participate in trade exhibitions with the aim of meeting customers and business professionals. Many audiences or customers partition to find a professional company to see if the products and services they want are suitable.

2) Community Engagement

PT Dwikarya Mitra Sejati can join the community in the chemical industry business. The community can be a powerful medium for marketing strategies that can increase brand awareness, the community as a source of information where most business trends emerge from a community.

Table 6. List of Marketing Media Strategy

Media Form

Sub-Channel

Key Activities

Owned

· Website / Landing Page

· Building reputation

· Product & service knowledge

· Product promotion

· News & Update

· Customer review

Paid

· LinkedIn Ads

· Search Engine Marketing

· Product & service knowledge

· Articles & trends

· Email Marketing

· Whatsapp Business

· B2B E-commerce

· Product & service knowledge

· Customer service feedback

· LinkedIn

· Google Review

· News & Update

· Customer review

Conventional

· Join Trade Shows

· Community Engagement

· Building reputation

· Product promotion

· Product & service knowledge

· Customer service respond

· After-sales service

3. Implementation Plan

The implementation of this plan is intended so that PT Dwikarya Mitra Sejati can outline the steps that must be taken to achieve a target. So that the company has a guide to implement the strategy that has been given. This implementation is adapted to the current condition of PT Dwikarya Mitra Sejati. The following is the implementation plan for PT Dwikarya Mitra Sejati:

Table 7. Implementation Plan for Q1 - Q4

Action Plan

Timeline

Proposed the marketing strategy

Educate about digital marketing

Research to define the target market

Segmenting

Targeting

Positioning

POS Strategy Marketing

Build Website / Landing Page

LinkedIn Ads Company Profile

B2B E-commerce

Email-Marketing & Whatsapp business

Offline Strategy Marketing

Join Trade Shows

Community Engagement

Table 8. Implementation Plan Activities

Media Form

Sub-Channel

Key Activities

KPI

Owned

· Website / Landing Page

· Building reputation

· Product & service knowledge

· SEO friendly copywriting

· News & Update

· Customer review

Process:

- Improve online presence & rank in google search

- Increasing 5,000 of the number of web visitor

-Improving community engagement

-Improving product knowledge to target market

Result:

- Increasing 1,000 of the number of leads generation in Online

- Increasing 500 information of the lead generation

- Increasing 10 number of offline sales

Paid

· LinkedIn Ads

· Search Engine Marketing

· Product & service knowledge

· Articles & trends

· Email Marketing

· Whatsapp Business

· B2B E-commerce

· Product & service knowledge

· Customer service feedback

· LinkedIn

· Google Review

· News & Update

· Customer review

Conventional

· Join Trade Shows

· Community Engagement

· Building reputation

· Product promotion

· Product & service knowledge

· Customer service respond

After-sales service

Table 9. Long Term Implementation Plan

Year 1	Year 2	Year 3
FIRMING THE FUNDAMENTAL	STRENGTHENING THE CAPABILITIES	EVOLVING THE SYSTEM
Starting developing the core and fundamental for marketing communication strategy both in digital & conventional to facing the future	Improving the competencies of marketing communication strategy team in both digital and conventional	Established the proper system and team to running both marketing communication strategy automatically
DIGITAL § Search engine optimization § Digital paid ads § Website/landing page § E-Commerce	DIGITAL § WhatsApp business § E-mail Marketing	DIGITAL § Search engine marketing § Email marketing
CONVENTIONAL § Direct selling § Sales Promotion	CONVENTIONAL § Offline event § Public relation	CONVENTIONAL § Community engagement

Conclusion

PT Dwikarya Mitra Sejati offers a wide range of chemicals to meet industrial needs. PT Dwikarya Mitra Sejati experienced a decrease in the percentage of sales. This research aims to assist PT Dwikarya Mitra Sejati in implementing marketing strategies to increase sales value and brand awareness so that these strategies can be implemented in the future.

The research was conducted by analyzing PT Dwikarya Mitra Sejati from external and internal aspects. From the external side, three analyzes were carried out in the form of PETEL, consumer analysis, and Porter's 5 strengths analysis. From the internal side, two analyzes were carried out, namely VRIO analysis , Marketing Mix (4p), Purchasing analysis. The five analyzes will be determined and concluded using a SWOT analysis. SWOT analysis will produce the current strengths, weaknesses, opportunities and threats of PT Dwikarya Mitra Sejati.

Internally and externally, PT Dwikarya Mitra Sejati has strengths, weaknesses, opportunities and threats, in particular;

Strengths:

§ Experience on the chemical business

§ Availability of chemicals

§ Owner has good reputation

§ Flexibility to follow customer wishes

Weakness:

§ Product marketing channels is not available

§ Unsystematic marketing work system

Opportunities:

§ Consumer demand for chemicals is high

§ Lots of industrial growth inside and outside city

§ Online media is a place for product promotion

Threats:

§ Entry of new competitors in the same location

§ Lower prices for competing products

§ The number of promotions is high in digital.

Based on the results of the SWOT Matrix analysis, it was concluded that PT Dwikarya Mitra Sejati needs a marketing strategy that can provide convenience about company information, products and customer reviews.

In this digital era, PT Dwikarya Mitra Sejati needs a digital marketing system so that it can reach a wide range of customers. By increasing sales value, brand awareness is needed from PT Dwikarya Mitra Sejati. Making the brand more recognizable and memorable will also build customer trust in the brand and increase sales. The following are strategies that can increase company brand awareness:

1 STP-Strategy: PT Dwikarya Mitra Sejati can use a strategy that determines the target consumer. Determining this target market can make marketing efforts more measurable and effective.

2 POS Marketing Strategy Model

POS has three components, namely Paid, Owned and Shared.The POS strategy can be applied by PT Dwikarya Mitra Sejati as a medium of communication with consumers

3 Offline Marketing Strategy Model

Participate in Trade Shows, PT Dwikarya Mitra Sejati can organize or participate in trade exhibitions with the aim of meeting customers and business professionals.

Plan implementation is planned for the coming year and for the long-term. The implementation of this plan is intended so that PT Dwikarya Mitra Sejati can outline the steps that must be taken to achieve a target. Implementation is adjusted to the current condition of PT Dwikarya Mitra Sejati.

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