CC BY
17
UDC 332; DOI 10.18551/rjoas.2024-01.01
MARKETING STRATEGY FOR CREATIVE INDUSTRY IN KENDARI CITY
Nasrul*, Hamid Wahyuniati, Putera Asrip, Masri Muh, Hatani La Faculty of Economics and Business, University of Halu Oleo, Indonesia *E-mail: nasrul [email protected]
ABSTRACT
The craft industry in Kendari City needs to improve business performance. This research examines: creative industry marketing strategies in Kendari City. The population in this research is all business actors in the creative industry sector in Kendari City. Data collection was carried out using a questionnaire distributed via Google Form and distributed directly to the business domiciles of creative industry entrepreneurs. Apart from that, interviews were also conducted with business actors. The collected data was then analyzed using SWOT analysis. The results of the analysis show that there is still a need to improve business actors in the fields of marketing strategy, institutions and institutional cooperation.
KEY WORDS
Marketing, strategy, creativity, industry, public service.
Business activities carried out by a company will make it easier for the community to fulfill all their needs and desires. One aspect that companies need to pay attention to is how to create quality products, so that they will gain consumer trust in the products they produce. However, despite this, a business or industry apart from being able to produce quality products, the industry must also pay attention to how to market the product so that consumers are interested and buy the product being offered.
Quality and good quality products supported by targeted marketing will ultimately be able to provide higher satisfaction scores to customers, because basically financial success often depends on marketing abilities. The success of a business, whether small or large, can be seen from how the business is able to market the products it produces so that consumers are interested and make purchases.
To attract consumers' buying interest in the products they produce, a company must be able to decide what and how strategies it will implement. According to Assauri (2007: 168), marketing strategy is a comprehensive, integrated and integrated plan in the field of marketing, which provides guidance on the activities that will be carried out to achieve the marketing goals of a company. Each company certainly has a special strategy and strives to be superior compared to other companies. Based on the description above, a study of creative industry marketing strategies in Kendari City is needed.
LITERATURE REVIEW
According to Marrus (2002:31) strategy is defined as a process of determining plans by top leaders that focus on the long-term goals of the organization, accompanied by the preparation of a method or effort on how to achieve these goals. Furthermore, Quinn (1999: 10) defines strategy as a form or plan that integrates the main goals, policies and series of actions in an organization into a unified whole. This is as explained by Hamel and Prahalad (1995:31) "that strategy is an action that is incremental (always increasing) and continuous, and is carried out based on the perspective of what customers expect in the future". Thus, strategy almost always starts from what could happen and not from what did happen. For example, the strategy may direct the organization toward reducing costs, improving quality, and expanding markets.
According to Kotler and Keller (2009:56), states that: The marketing mix is a set of tactical and controlled marketing tools that are combined by a company to produce the response desired by the target market which consists of everything the company can do to
influence demand for its products. Kotler and Keller (2009:320), stated that the marketing mix consists of product, price, place, promotion.
The creative economy or what can be called the creative industry is an industry that originates from the use of individual creativity, skills and talents to create prosperity and employment opportunities by generating and exploiting the individual's creativity and inventiveness. Creativity is the ability to create or create. Having creativity means the ability to develop new ideas to find new ways to solve problems and face opportunities. Creativity is not just luck but conscious hard work.
METHODS OF RESEARCH
The data in this research is primary data obtained directly from the research object, namely the creative craft industry. Data collection in this research was carried out by distributing questionnaires and interviews. The analysis methods used in this research were: 1) Marketing mix analysis, which is an analytical tool that descriptively examines the main variables that a company can control, including products, prices, promotions and distribution channels; 2) SWOT analysis, namely an analysis that descriptively examines the strengths, weaknesses, opportunities and threats faced by the company in marketing its products.
RESULTS AND DISCUSSION
The characteristics of respondents described in this research consist of business capital, number of workers, length of business, and sources of business capital.
Table 1 - Characteristics of Respondents According to Business Capital
No Amount of Business Capital Amount %
1 <= Rp. 25.000.000 45 46,88
2 > Rp. 25.000.000 - Rp. 50.000.000 34 35,42
3 > Rp. 50.000.000 17 17,71
Total 96 100
Source: Primary data, processed in 2023.
Based on the table above, it is known that the majority of respondents (46.88%) have business capital of up to twenty-five million rupiah, and only a small portion have business capital of more than fifty million rupiah.
Table 2 - Characteristics of Respondents According to Number of Workers
No Total manpower Total %
1 < = 5 Employee 30 93.8
2 > 5 - 10 Employee 1 3.1
3 > 10 Employee 1 3.1
Total 32 100
Source: Primary data, processed in 2023
Based on the table above, it is known that the majority of respondents (55.21%) have between one and five employees.
Table 3 - Characteristics of Respondents According to Length of Business
No Length of Business Total %
1 Under 5 years 45 46,88%
2 5 - 10 years 34 35,42%
3 above 10 years 17 17,71%
Total 96 100
Source: Primary data, processed in 2023
Based on the table above, it is known that the majority (46.88%) of respondents have only carried out business activities for less than 5 years. This condition shows that there are creative culinary industry business actors in Kendari City.
Table 4 - Characteristics of Respondents According to Source of Business Capital
No Capital Sources Total %
1 Owner's Equity 52 54,17
2 Bank Loans 6 6,25
3 Non-Bank Loans 4 4,17
4 Family Loans 34 35,42
Total 96 100
Source: Primary data, processed in 2023
Based on the table above, it is known that 54.17% of the respondents' business capital came from their own capital, and 35.42% came from family loans. This condition cannot be separated from the businesses carried out by respondents which are still included in the micro category and there is still limited access to banking.
Table 5 - Ability to Perform Market Segmentation
Ability to Perform Market Segmentation Total %
Very capable 14 14,58
Quite capable 51 53,13
Unable 31 32,29
Amount 96 100
Source: Primary data, processed in 2023
Most respondents (53.13%) were quite capable of doing business segmentation. However, there are still quite a large number (32.29%) of respondents who are unable to segment the market.
Table 6 - Ability to Target Market
Ability to Perform Market Segmentation Total %
Very capable 14 14,58
Quite capable 51 53,13
Unable 31 32,29
Amount 96 100
Source: Primary data, processed in 2023
Most respondents (58.33%) were quite capable of identifying and determining the target market, however, respondents who did not have the ability to determine which market to target were still relatively large, namely 29.17%.
Table 7 - Ability to Perform Product Positioning
Ability to Perform Product Positioning Amount Percentage
Very capable 14 14,58
Quite capable 22 22,92
Unable 60 62,50
Amount 96 100
Source: Primary data, processed in 2023
Most respondents (62.50%) do not have the ability to position products; however there are 37.5% of respondents who are not relatively capable of positioning products.
Based on the table 8, it is known that the majority (52.08%) of respondents are quite consistent in maintaining product quality; however there are still some who are inconsistent in maintaining product quality.
Table 8 - Consistency in Maintaining Product Quality
Consistency in Maintaining Product Quality Amount Percentage
Very consistent 36 37,50
Pretty consistent 50 52,08
Inconsistent 10 10,42
Amount 96 100,00
Source: Primary data, processed in 2023
Table 9 - Level of Knowledge on Improving Product Quality
Level of Knowledge Against Product Quality Improvement Amount Percentage
Tall 23 23,96
Currently 28 29,17
Low 45 46,88
Amount 96 100
Source: Primary data, processed in 2023
Based on the table above, it is known that the majority (46.88%) of respondents are quite consistent in maintaining product quality; however there are still some who are inconsistent in maintaining product quality.
Table 10 - Level of Knowledge of Branding and Packaging Design
Level of Branding Knowledge and Packaging Design Amount Percentage
Tall 12 12,50
Currently 31 32,29
Low 53 55,21
Amount 96 100
Source: Primary data, processed in 2023
Based on the table above, it is known that the majority (55.21%) of respondents have a low knowledge in branding and packaging design.
Table 11 - Level of Knowledge on Determining Cost of Goods Production
Level of Knowledge regarding the Preparation of Cost of Goods Production Amount Percentage
Tall 14 14,58
Currently 34 35,42
Low 48 50,00
Amount 96 100
Source: Primary data, processed in 2023
Based on the table above, it is known that the majority (50.00%) of respondents have a low level of knowledge regarding determining the cost of production.
Table 12 - Level of Knowledge of Product Pricing
Level of Knowledge Product Pricing Amount Percentage
Tall 13 13,54
Currently 37 38,54
Low 46 47,92
Amount 96 100
Source: Primary data, processed in 2023
Based on the table above, it is known that the majority (47.92%) of respondents have a low knowledge in determining product prices.
Based on the table 13, it is known that the majority (78.13%) of respondents always promote online.
Table 13 - Forms of Product Marketing Promotion
Forms of Product Marketing Promotion Amount
F %
Always done conventionally 0 0,00
Always done online 75 78,13
Carried out conventionally and online 21 21,88
Amount 96 100
Source: Primary data, processed in 2023
Table 14 - Ownership of Internet Facilities
Ownership of Internet Facilities Amount
f %
Buy Packages 72 75
Installing Wi-Fi 24 25
Amount 96 100
Source: Primary data, processed in 2023
Based on the table above, it is known that all respondents already have internet facilities. Most of the internet facilities used by purchasing packages, and only a small percentage have Wi-Fi installed.
Table 15 - Business Actors' Knowledge of Social Media
Knowledge of Social Media Platforms Amount Percentage
1-3 Media 34 35,42
4-5 Media 47 48,96
6-8 Media 15 15,63
Amount 96 100
Source: Primary data, processed in 2023
Based on the table above, it is known that most already know about social media, such as, for example, YouTube, WhatsApp, Line and TikTok.
Table 16 - Use of Social Media in Marketing
Use of Social Media in Marketing Amount Percentage
1-3 Media 93 96,88
4-5 Media 3 3,13
6-8 Media 0 0,00
Amount 96 100
Source: Primary data, processed in 2023
Based on the table above, it is known that all respondents have used social media to support their business. However, not all social media are known to be used to support their business. Most new respondents use one to three types of social media.
Table 17 - Business Actors' Knowledge of Market Places
Pengetahuan Terhadap Platform Marketplace Amount Percentage
1-2 Marketplaces 94 97,92
3-4 Marketplaces 2 2,08
5-9 Marketplaces 0 0,00
Amount 96 100
Source: Primary data, processed in 2023
Based on the table above, it is known that the majority (97.92%) of respondents only know about one to two types of marketplaces from the seven types of marketplaces presented, namely; Tokopedia, Bukalapak, Shopee, Lazada, Blibli, Elevenia, Zalora, OLX,
and Berniaga. Of the nine types of marketplaces, respondents only knew about one or two well-known marketplaces, namely Tokopedia and Shopee.
Table 18 - Business Actors' Ability to Register for Social Media
Ability to Register for Social Media Amount Percentage
Very capable 7 7,29
Quite capable 67 69,79
Unable 22 22,92
Amount 96 100
Source: Primary data, processed in 2023
Based on the table above, it is known that the majority of respondents (69.79%) are quite capable of registering on social media. Meanwhile, for registration on the marketplace, it is known that none of the respondents were able to register on the marketplace.
Table 19 - Ability to Utilize Social Media Features
Ability to Utilize Social Media Features Amount Percentage
Very capable 11 11,46
Quite capable 66 68,75
Not being able to/asking for help from other parties 19 19,79
Amount 96 100
Source: Primary data, processed in 2023
Based on the table above, it is known that the majority (68,75%) of respondents are only able to utilize some of the features on social media, and others also do not have the ability to utilize the features on social media.
Table 20 - Forms of Using Social Media for Marketing
Forms of Using Social Media Amount Percentage
Live Streaming Marketing 19 19,79
Advertising Products 29 30,21
Other 48 50,00
Amount 96 100
Source: Primary data, processed in 2023
Based on the table above, it is known that the majority (50.00%) of respondents have not optimally utilized social media to support their business activities. Most of the use of social media is limited to sharing (sending) pictures of the products being sold.
Table 21 - Forms of Social Media Use
Forms of Using Social Media Amount Percentage
Purchase of Raw Materials 30 31,25
Product marketing 23 23,96
Other 43 44,79
Amount 96 100
Source: Primary data, processed in 2023
Table 22 - Frequently Used Payment Methods
Payment method Amount Percentage
COD 74 77,08
Paypal 0 0,00
Indomaret 0 0,00
ATM transfers 7 7,29
Mobile Banking 15 15,63
Amount 96 100
Source: Primary data, processed in 2023
Based on the table 21, it is known that the majority (44.79%) have not utilized social media optimally to support business activities. The use of social media is still limited to sending (sharing) images of products.
Based on the table 22, it is known that the majority (77.08%), use the COD payment method, and others use ATM transfers and mobile banking.
Table 23 - Online Transportation Partner That Is Often Used By Business People
Transportation Partners Amount Percentage
Gojek 1 1,04
Grab 0 0,00
Maxim 0 0,00
Conventional Motorcycle Taxi 0 0,00
No Collaboration Yet 95 98,96
Amount 96 100
Source: Primary data, processed in 2023
Based on the table above, it is known that the majority (98.96%) have not collaborated or partnered with online transportation providers.
Table 24 - Ability to Describe Products In Promotions On Social Media
Ability to Describe Products In Promotions On Social Media Amount Percentage
Very Capable 10 10,42
Capable enough 45 46,88
Unable 41 42,71
Amount 96 100
Source: Primary data, processed in 2023
Based on the table above, it is known that the majority (46.88%) are quite capable of describing products on social media, but the number of respondents who do not have the ability to describe products on social media is also relatively large, namely 42.71%.
Table 25 - Ability to Design Advertising Content
Ability to Design Advertising Content Amount Percentage
Very Skilled 10 10,42
Quite Skilled 26 27,08
Unskilled 60 62,50
Amount 96 100
Source: Primary data, processed in 2023
Based on the table above, it is known that the majority (62.50%) are not skilled in designing advertising content in promotions.
Table 26 - Intensity in Designing Advertising Content For Promotions
Intensity of Advertising Content Design Creation Amount Percentage
Made Every Day 5 5,21
Made once a week 31 32,29
Uncertain 60 62,50
Amount 96 100
Source: Primary data, processed in 2023
Based on the table above, it is known that only a small portion (5.21%) of respondents can design advertising content every day. Meanwhile, most of them still have uncertain times when designing advertising content, and there are others who make designs once a week.
Based on the results of the analysis, the following is an identification of creative industry entrepreneurs in the culinary sector in Kendari City:
• Business segmentation is really needed. The results of the analysis show that the majority of respondents are quite capable of carrying out business segmentation. This condition shows the respondent's ability to identify the purpose of selling the product;
• Determining the target market is done to make it easier to target consumers, because it can open up opportunities to expand the market. Market targeting can be done after market segmentation is carried out, and then you can understand the value of the product, and pay attention to competitive conditions. The results of the analysis show that the majority of respondents are quite capable of targeting the market, although there is also a relatively large number of respondents who do not have the ability;
• Product positioning is intended to create an impression in the minds of consumers about a product. Product positioning can be done based on product attributes, product benefits, and price or quality. This positioning can be used to make it easier for consumers to recognize and choose products, and create consumers' image and perception of the product. The results of the analysis show that relatively few respondents tend to be able to carry out product positioning;
• Product quality is very useful for improving business reputation and increasing the market share of a product. The results of the analysis show that the majority of respondents are quite consistent in maintaining product quality, although there are still some who are inconsistent in maintaining product quality;
• Product quality can be improved through several indicators, namely performance, features, reliability, suitability, durability, service capability, aesthetics and quality impression. The results of the analysis show that the majority of respondents are quite consistent in maintaining product quality, however there are still some who are inconsistent in maintaining product quality;
• The results of the analysis show that the majority of respondents have low knowledge in branding and packaging design, however there are still relatively many respondents who have medium and high levels of knowledge;
• The determination of the cost of production is not yet fully known by creative culinary industry entrepreneurs. This condition means that business actors in determining prices still follow market prices;
• Business actors can set prices by adopting a skim the cream policy (setting product prices at a high price), or by using a penetration policy (setting product prices at a low price). Methods that can be used to set product prices can be done by setting plus prices, mark ups, BEP prices, and competing with competitors. The results of the analysis show that the majority of respondents have low knowledge in determining product prices;
• Promotions carried out online can provide several benefits, such as; can reach a wider market, increase sales volume, and increase interaction with consumers so that they can understand consumers more quickly. The results of the analysis show that the majority of respondents always promote online, but no one only does it conventionally;
• The results of this research show that the majority of respondents purchased a package to access the internet, while the business carried out required relatively high levels of internet access. This can affect business expenses;
• Based on the results of the analysis, it is known that the majority of respondents only know about four to five social media platforms that are generally known, all of these platforms should be known to entrepreneurs in the creative culinary industry, considering that these social media platforms have a large number of users, which means they have large market potential;
• In the research results mentioned above, of the eight social media platforms presented, only four or five social media platforms are known, and only one to three social media are used to support business activities, such as product marketing or other supporting activities, namely transaction;
• Marketplace is a website or online application that facilitates the buying and selling process from various stores. The market place provides a place for sellers who want to market their products to meet buyers so that buying and selling transactions occur, so
that this marketplace can function as a market;
• The results of the analysis show that the majority of respondents are still unable to register themselves, so for registration they still ask for help from referent groups, such as family, neighbors and friends. This condition is a relative obstacle in business development, because when you want to expand market potential by entering social media platforms that are not yet used, you will tend to be hampered;
• The results of the analysis show that only a small portion are very capable of utilizing the features of social media which are used to support their business activities, while the majority of respondents are only able to utilize some of the features on social media, and some Others also do not have the ability to utilize the features available on social media;
• Most of the use of social media in an effort to support product marketing activities is only to send pictures of their products, others are used to advertise products, and only a small portion are used to market products via live-streaming;
• The form of use of social media carried out by creative culinary industry players is to send pictures of the products being sold, and only a small part is used to market products, while the other part is used to purchase raw materials;
• Currently there are several alternative payment methods that can be used by creative culinary industry entrepreneurs to assist with product marketing transactions, such as; COD, PayPal, Indomaret, ATM transfer, and mobile banking. Based on the table above, it is known that the majority (77.08%), use the COD payment method, and others use ATM transfers and mobile banking;
• The analysis results show that although the majority of business actors are quite capable of describing products in promotions on social media, there are still quite a large number of business actors who are not yet able to describe products;
• Advertising content is really needed for business promotion, therefore content must be created to attract consumer attention. Advertising content design is done by creating a content plan, determining the audience, repurposing content, setting a promotional schedule, and doing it consistently. The analysis results show that the majority of respondents do not have the ability to create advertising content;
• The results of the analysis show that most respondents asked for help from other people in designing advertising content for promotions on social media. This assistance comes from referent groups, such as family, neighbors and friends. The analysis results also show that only a small portion of respondents have created their own advertising content designs.
CONCLUSION
Creative industry business actors in Kendari City still not capable enough in carrying out positioning, branding and designing product packaging. Business actors already have knowledge in business digitalization, but are still unable to utilize it for product marketing, thus impacting their ability to access existing and potential markets. The availability of internet service providers and online transportation services has not been fully utilized by business actors to support increased product marketing performance. Suggestions:
• Improving the quality of creative industry entrepreneurs in Kendari City;
• Increasing market access for creative industry entrepreneurs;
• Carrying out institutional development, empowerment and partnerships to support the marketing performance of the creative industry in the beverage and food sector;
• Facilitate collaboration between creative industry business actors with internet providers and online transportation service providers.
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