Damarcha Novalian Ari's final project for his MBA from Institut Teknologi Bandung analyzes the marketing strategy and division control of PT Imeco Inter Sarana, an authorized distributor of General Electric (GE) products in Indonesia for over 50 years. The research focuses on the Power Support and Transportation (PST) SBU, specifically the Control Division, which handles GE control products. The challenge lies in the increasing competition from non-OEM (Original Equipment Manufacturer) companies offering alternative, often cheaper, products.
The qualitative research involved semi-structured interviews with PT Imeco Inter Sarana internals, GE principals, and PT Imeco Inter Sarana customers. The analysis employed the 7Ps marketing mix (Product, Price, Place, Promotion, People, Process, Physical Evidence) and segmentation, targeting, and positioning (STP) frameworks.
The study aims to provide marketing strategy recommendations to PT Imeco Inter Sarana to address these challenges.
The background details PT Imeco Inter Sarana's history, vision, mission, organizational structure, and business portfolio. PT Imeco Inter Sarana was established in 1972, and it focuses on solutions that are customer-driven while developing synergies and valuing customer trust.
The core business issue is the erosion of PT Imeco Inter Sarana's market position due to:
* The rise of alternative products
* Longer delivery times and fluctuating prices from GE (partly due to global chip shortages)
* Customer policy changes that favor direct interaction with manufacturers
* Emphasis on domestic component level (TKDN) compliance by state-owned enterprises (SOEs)
The research questions explore the effectiveness of the 7Ps marketing mix implementation and market penetration strategies at PT Imeco Inter Sarana. The objectives are to identify appropriate business methods for improving PT Imeco Inter Sarana's marketing and sales. The research scope is limited to the Measurement and Control (MC) division within the PST SBU.
The research design involves a literature review, qualitative data collection via interviews, data summarization, comparison of PT Imeco Inter Sarana's concerns and customer needs, and formulation of business recommendations.
Marketing indicators considered are: segmentation (geographic, demographic, behavioral, psychographic), targeting, and positioning. Also, the 7P marketing mix: product, price, place, promotion, people, process, and physical evidence. Distribution channel types analyzed are direct, indirect, exclusive, intensive, and selective distributors.
Data collection involved structured interviews with PT Imeco Inter Sarana employees, customers, and GE representatives to understand their perspectives. Transcripts were analyzed using Quirkos software, and open coding was utilized to extract relevant themes and insights.
Segmentation analysis revealed PT Imeco Inter Sarana's focus on domestic operations, power companies using GE machines, and both state-owned and private sector clients. Targeting is currently geared towards GE gas turbine users. PT Imeco Inter Sarana is facing competition from other competitors that have a better target market and a lower price.
The marketing mix analysis showed PT Imeco Inter Sarana's strengths in OEM product reliability but weaknesses in price stability, limited promotion, and a small sales team. The process analysis highlighted PT Imeco Inter Sarana's reliance on GE for pricing, leading to delays.
Perceptions from internal PT Imeco Inter Sarana employees, customers, and GE principles were compared. Internally, PT Imeco Inter Sarana prioritizes product quality, followed by people (sales) and then price. Customers, however, prioritize price, followed by people, and promotion.
Research findings revealed a misalignment between PT Imeco Inter Sarana's marketing priorities and customer needs. Customers desire price competitiveness and more frequent sales interactions, whereas PT Imeco Inter Sarana focuses primarily on product specifications and high performing employees.
The business solution compares PT Imeco Inter Sarana's marketing strategy concerns with customer needs. A key finding is that customers prioritize price, sales personnel frequency, and better offerings on how the product can be used for various generators. The analysis reveals the key areas where PT Imeco Inter Sarana's current strategy does not satisfy customer desires.
Based on customer evaluations, the three lowest-scoring aspects of the 7Ps marketing mix are price, people, and product (specifically product control operation in multiple engines).
Recommendations include:
* Addressing price volatility through cost-effective engineering/assembly in Indonesia to reduce selling prices and compete with other competitors.
* Increasing sales personnel to improve customer communication and relationship management for each customer.
* Collaborating with GE to enable PT Imeco Inter Sarana’s product control to operate on generators made by a variety of manufacturers to maximize product utility to customers.
The conclusion emphasizes the need for PT Imeco Inter Sarana to align its marketing strategy with customer priorities, particularly regarding price competitiveness and increasing the product application for many generators. The price of PT Imeco Inter Sarana's product control is relatively high compared to the competition, and better follow-up communication by salespersonnel is needed to customers.