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UNIVERSITAS INDONESIA
MARKETING PLAN ANALYSIS ON CAMPINA ES KRIM (Analisis pada Rencana Pemasaran Campina Es Krim)
MAKALAH NON SEMINAR
Written by: Ardita Febrini Asweva
1006805946
Supervised by: Nadia Andayani
FACULTY OF SOCIAL AND POLITICAL SCIENCE COMMUNICATION MAJOR
INTERNATIONAL PROGRAM
JAKARTA FEBRUARY 2014
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MARKETING PLAN ANALYSIS ON CAMPINA ES KRIM
Ardita Febrini Asweva Public Relations, Faculty of Social and Political Science
1.0 Abstract
In examining the research, Campina will be taken into account as the research subject. It is because Campina, as one of the leading ice cream company, potentially require complex analysis in developing the marketing planning. Moreover, it is an interesting point for researcher to examine the variant market that it’s targeting. The purpose of this study is to examine Campina’s current external and internal environment by using SWOT and PESTLE theory. Furthermore, a market plan will be developed based on the findings of assessing the external and internal conditions, using the Marketing Mix theory. On the first part, an overview towards the research background will be elaborated to illustrate the reader about this research. The introduction will be divided into two parts, which are an overview about marketing planning itself and the company’s background. Move to the next part, theories will be described. This research will use three theories: SWOT analysis, PESTLE analysis and Marketing Mix. The researcher will explain the result and discussion in the next following parts and finished with conclusion. Weaknesses and recommendations for further research will also be elaborated in this particular section.
Dalam melakukan penelitian, Campina akan dipergunakan sebagai subjek penelitian.
Hal ini karena Campina sebagai salah satu perusahaan es krim terkemuka di Indonesia, membutuhkan analisis yang kompleks dalam mengembangkan perencanaan pemasarannya. Selain itu, hal lain yang menarik dari Campina adalah luasnya target pemasaran bagi Campina, mulai dari anak-anak hingga orang dewasa. Tujuan dari penelitian ini adalah untuk menguji lingkungan eksternal dan internal Campina saat ini dengan menggunakan analisis “SWOT” dan “PESTLE”. Selain itu, rencana pemasaan akan dikembangkan berdasarkan temuan ini, dengan menggunakan teori “Marketing Mix”. Pada bagian pertama, penjelasan mengenai latar belakang penelitian akan dijabarkan untuk memberikan gambaran kepada pembaca mengenai penelitian ini . Bagian ini akan dibagi menjadi dua, yaitu latar belakang mengenai perencanaan marketing (definisi) dan latar belakang perusahaan. Selanjutnya, teori akan dipaparkan pada bagian selanjutnya. Penelitian ini akan menggunakan tiga teori: analisis “SWOT”, analisis “PESTLE” dan “Marketing Mix”. Peneliti akan menjelaskan hasil pada bagian berikut berikutnya dan menutup penelitian ini dengan kesimpulan. Kelemahan dan rekomendasi untuk penelitian lebih lanjut juga akan diuraikan pada bagian terakhir.
Keywords: Indonesia; Ice-cream industry; Marketing Mix; PESTLE; SWOT
2.0 Introduction
2.1 Marketing Planning
A very important function in marketing planning is to keep business strategies in
line with organization’s external condition (Peattie, 1999). Customer, competition and
corporation, which also known as strategic three Cs, are key essentials, which deals in
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marketing strategy (Juin, 2000). It focuses on searching ways to personalize the
organizations, as well as exploiting its strengths to be able to deliver better values to
its target market (Juin, 2000). Juin (2000) developed characteristics of a good
marketing strategy. It should include:
(a) A clear definition of marketplace;
(b) A balance between organizational strengths and market needs; and
(c) An excellent performance as the key factors for business success.
Milk solids (with or without fat) are often being associated to frozen dairy
desserts, and ice cream is the most widely consumed among that category (Goff &
Hartel, 2013). In 2010, New Zealand was noticed as the world’s highest per capita ice
cream consumption (Smith, 2010). In Asia, the highest ice cream consumption was
Singapore with 2.4 litters annually (Smith, 2010). According to Smith (2010) as
written in Media, Indonesia was wearing a crown as one of the lowest statistics in ice
cream consumption, but it has a huge potential in the industry due to its geographic
position.
Currently, there are a lot of Ice Cream companies in Indonesia. Some of them are
Wall’s, Haagen-Dazs, Woody, Campina, etc. Among those brands, Wall’s and
Campina are holding the most market share in Indoensia (Smith, 2010).
Campina develops many ranges of products to fulfill its target market’s needs. It
divided its target market into three categories: kids, teens and family. In each
categories, Campina build various range of products based on its targeted personality.
Among those range of products, Smith (2010) reported that Campina focuses its
adspend towards three products, which are Avatar (in kids category) and Viennetta (in
family category).
Campina needs to develop an excellent marketing planning to maintain its
existence, or better, expands a new target market from Wall’s, its biggest rival (Smith,
2010). This research will only focus in developing one Campina’s ice cream brand,
which is Viennetta. This brand is chosen due to its domination in ice cream brand
adspend in Indonesia for ice cream cake category (Nielsen Media Research, 2009;
cited in Media, 2010).
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2.2 Corporate Direction
Every marketing analysis begins with the corporate direction, where the
company make a clear vision about their goals. This step is important in order to
comprehend the strategic marketing planning in the company and integrates it into
overall process (Radulescu, 2012). Campina as one of the biggest, most notable ice
cream and frozen food company in Indonesia (Smith, 2010) should understand this
process and take it into account in every marketing planning process.
Campina started its operation in 1970, when ice cream was not as popular as
presents. On its website, Campina explained that it was Mr. Darmo Hadipranoto who
started his own business using a very unsophisticated machine. Later, Campina joined
his family business by invested on the technological development aspect. From that
moment, the company has continued to grow bigger in terms of size, profit and
product range.
Campina has divided its own market segment into three kids, teens and family
category. In each category, Campina produce various range of products based the
personality from each market segment. Through its vision and mission statement,
Campina will construct its view on what to achieve in many years coming. Simply
stated, vision is ‘what the company wants to become’, while mission articulates on
‘what the company does, for whom it does to and how to distinguish the company
from its competitors’ (Tibergien, 2013).
VISION
Making Campina Ice Cram Industry as one of the best and biggest producers
of ice cream and frozen food in Indonesia to always put the customer
satisfaction and employee shares and uphold the principles of environmentally
friendly business.
MISSION
Having a high sensitivity towards the market and customers, optimizing all of
the resources and assets of the company to deliver more values as a form of
accountability to the shareholders as well as running the business with
respect to the natural environment and surrounding communities.
(Campina, retrieved on 2014)
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From its vision and mission, it is clear that Campina pays attention on
environmental sustainability. This would be a good cause for Campina to work on
environmental area as the sustainability program, since over 75% of executives
worldwide agreed that this kind of program could lead to a financial success for
company (Mirvis, Googins & Kinnicutt, 2010). Unfortunately, less company are
taking a significant move towards this program (Mirvis, Googins & Kinnicutt, 2010).
This condition could brings Campina a huge opportunity to show its concern towards
the environment and be the leader in such program in order to bring the greatest good
for the environment, community and the company itself.
3.0 Theory
In developing the marketing strategy, a company must first understand its condition.
One of the most popular ways to examine organization’s condition is to do a SWOT analysis.
In this analysis, an organization can manage to understand both internal and external
environment. The internal factors can be found through strength and weakness, while the
external factors can be discovered through opportunities and threats. Moreover, PESTLE
theory comes in a role to examine external factors more deeply. However, only relevant
elements will be explored. Lastly, marketing mix will help the organization to develop a
strategy that suit its condition best.
3.1 SWOT ANALYSIS
SWOT Analysis is a marketing planning tool, which helps to shape thinking,
evaluate status, and develop an action plan in a more effective way (Beverly, 2010).
Every company is being challenged with a dynamic situation that changes constantly,
which makes this (SWOT) analysis even more necessary to be conducted regularly
(Houben, Lenie & Vanhoof, 1999). SWOT stands for ‘strengths, weaknesses,
opportunities and threats’. Strengths are competitive advantages and other
distinguishing competencies that can be used by organization to win the market battle
(Houben, Lenie & Vanhoof, 1999). On the other hand, Houben, Lenie and Vanhoof
(1999) defined weaknesses as limitations, which inhibiting the development of an
organization. Moreover, opportunities are proposed to detect customers and market
attractiveness, while threats use to assess potential challenges, which include
competitors’ strategy (Collett, 1999). Additionally, strengths and weaknesses comes
from the internal organization, while opportunities and threats comes externally.
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3.2 PESTLE
Generally, PESTLE analysis is a convenient strategy to predict market
development, business position, and operational trend (Houben, Lenie & Vanhoof,
1999). Srdjevic, Bajcetic and Srdjevic (2012) believed that PESTLE is the
modification of SWOT theory, where the influencing factors are divided into six
categories, which are Political, Economic, Social, Technological, Legal and
Environment (PESTLE). PESTLE analysis is vital to give a more in-depth sight from
the SWOT overview (Vorthman, 2008). Moreover, PESTLE analysis is essential to
determine potential endeavor in the relevant business environment (Houben, Lenie &
Vanhoof, 1999). “… PESTLE analysis module of the framework methodology
describes the framework of macro-environmental factors used in the environmental
scanning component of strategic management” (Houben, Lenie & Vanhoof, 1999).
3.3 Marketing Mix
A quote by Peter Doyle (p. 287, 2003) fairly explains what marketing mix is
about “[it] is the central task of marketing professionals”. It pays attention on some
significant aspects in marketing, which includes the product, price, promotion and
place (McCarthy, 2001; cited in Doyle, 2003). Organizations use marketing mix as a
set of marketing tool to reach its marketing objectives towards the target market (Goi,
2005). In addition to that, Peter and Donnelly (2007), as cited in Mohammad et al,
(2012) agreed that apiece of element in marketing mix could play an important role to
influence its consumers. Therefore, in applying marketing mix into marketing plan,
the company needs to assess it carefully. Mostly, marketer would agree that the right
marketing mix is one, which can give the utmost customer satisfaction. In achieving
that purpose, a company should give the best offer to its customers, without
disregarding company’s profitability (Doyle, 2012).
As mentioned earlier, there are four elements in marketing mix:
3.3.1 Price
Kotler (2007) described price as a production, delivery, and promotion
cost charged by an organization, while Zeithaml’s view (1988) on price is
monetary cost of a product that influence consumer’s perception towards the
value of a product. In short, product’s price influences its marketability.
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3.3.2 Product
Product is the main point in marketing mix strategy, because it is where
organization and consumers can deal on symbolic and experiential attributes in
distinguishing its product from competitors (Ferrell, 2005; cited in
Owomoyela, Ola & Oyeniyi, 2013). It includes physical appearance, such as
packaging and labeling information, which can influence consumers’ behavior
to notice, examine, and purchase a product (Owomoyela, Ola & Oyeniyi,
2013).
3.3.3 Place
Jones (2007) explained place as an access for customers to find products
or services. Moreover, Bowersox and Closs (1996) refer “distribution‟ as a
name for place. They believe that it is the third component of marketing mix,
which covers all decisions and tools towards products and services availability.
3.3.4 Promotion
Jones (2007) argues that promotion is a way to minimize the gap of
information between producers or sellers and potential buyers. On the other
hand, Zeithaml et al. (1995) described promotion as a part of particular effort
to stimulate ‘word-of-mouth’. Detailed combination of advertising, personal
selling, sales promotion, public relations and direct marketing tools have made
promotion a critical aspects in marketing mix, because it helps organizations to
pursue its marketing objective (Kotler, 2007).
Marketing mix has criticized for being seemingly unchallenging (Gronroos,
1997; cited in Jones, 2001). However, the theory, which commonly-called four Ps of
marketing, has reasonably compromised in matching the SME (small to medium-sized
enterprise) view better (Siu and Kirby, 1998; cited in Brooks and Simkin, 2012). In
adapting its marketing plan, PT Campina will mostly liaise with small entrepreneurs,
such as local stores (warung), retailers, etc. Due to that matter, it is better to use simple
concept, such as marketing mix, to elaborate the plans to minimize any
misunderstanding towards both concerns.
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4.0 Result & Discussion
4.1 SWOT Analysis
SWOT analysis helps the organization to understand its condition
comprehensively by assessing both internal and external condition. Strength and
weakness represent the internal condition, while opportunity and threat represent the
external condition.
4.1.1 Internal Strengths and Weaknesses
Campina has a lot of interesting points to discover, which potentially
become its strength. Furthermore, these points could act as a distinguisher
among its rival and carries some added value to the company and its brand. In
this part, Campina’s strengths will be divided into two categories. The first one
will focus on the corporate capability and the second one will focus on its
products and brands.
A. Corporate
Campina established in 1970, which shows how reputable the company,
is. It was established since ice cream was not as popular as present, and
Campina shows is existence and determination throughout these years. It also
has a good quality on research and development capability, which shown from
the variation it has on its range of products. Campina also pays attention on its
human resource ability, reinforced with a lot of sophisticated machine to
exceed the production quantity and quality. At its peak, Campina has
successfully achieved many awards. Some of them are Superbrand 2012 and
Top Brand 2012. Its concern on environment can also be a strong point for
Campina to distinguish its company from others.
Campina’s condition as an independent company will meet many obstacle,
especially on budgeting. Unlike Wall’s, for example, which is part of Unilever
as well as the current leader in ice cream brand adspend, Campina has a huge
gap in terms of budget. Even though Campina positioned in the second highest,
exactly under Wall’s, the adspend gap between these two brands was about 18
times higher, with Wall’s having more than Rp 260 billion and Campina only
Rp 14.2 billion (Smith 2010). It obviously will create limitation for Campina to
promote its product as well as build brand awareness. Another weakness is that
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the packaging of the ice cream that PT Campina produces is not as interesting
as any other ice cream production from other companies. So, in other words,
there is lack of creativity from the creative staffs.
B. Products and Brands
On the products and brands part, Campina also has some strengths and
weaknesses. Campina has become a leader for its Avatar bran (for kids).
Moreover, Campina has also become the only brand that produces ice cream
cake as a mass product. Moreover, Campina offers quite cheaper price for the
same range of products from its competitors. Campina is also being creative
for the distribution channels, which includes delivery order, online shopping,
ice cream package, and so on.
On the other hands, Campina also has some weaknesses on its products
and brands. From the production, some of its ice cream production, especially
on the premium, concerto and classic ice cream product, does not have a soft
texture compare to other similar products. At the end, this lack of quality in the
ice cream texture turns down the market’s expectation. Other weakness from
its production is that this company does not have the opportunity to market its
product as much as other ice cream company has. This relates to the budget
condition that Campina has to suffer from. Moreover, its promotion is not as
strong as its opponent and again, it relates to the financial condition. It can be
shown from the packaging, which is not as interesting as any other ice cream
production. It can lead to people’s demotivation to buy the products.
4.1.2 External Opportunities and Threats
Through its strengths and weaknesses, Campina will develop its
opportunities and threats, which coming from its external environment. These
points could end up becoming a key for its success, or the opposite, attacking
the company and resulted to company’s failure. This part will be divided into
three parts, which are product category review, competitor review, and
customer/consumer review. These classifications are appeared as three most
direct exposures for a company.
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A. Product Category Review
Campina is one of the leading ice cream companies in Indonesia. There
are several other players in the industry in Indonesia, such as Walls, Haagen-
Dazs, Baskin-Robbins, Dairy Queen, and so on. Those brands have
comparatively higher price than the Campina brand. Campina is one of the ice
cream brands that offer affordable price for such good taste. But, in the ice
cream industry, Campina still has to work hard to compete with Wall’s.
Campina has to share their market with Walls, which already has better
strategy and better brand awareness from the market.
Nowadays, people has tendency to enjoy vanilla ice cream covered with
Belgian chocolate and Campina has that kind of variant. However, the product
that Campina has offered fail to catch market attention.
B. Competitor Review
Wall’s would be the primary competitor of Campina. However, Campina
has been more popular for its ice cream cake variant. It should be able to
manage its existence on the current market and expand its market to the other
target market, which Wall’s has secured in advance. Take a look at an example
of local ice cream retailer where unbalance number of products appear between
Wall’s and Campina. This fact can cause a treat for Campina.
However, Campina does have some opportunities to beat Wall’s. The ice
cream, which produced by walls has strong milky taste, while people in
Indonesia are less likely to consume or familiar with the milk taste. This could
possibly become the opportunity for Campina as it has a more preferred ice
cream taste than Wall’s. Moreover, Walls ice cream tends to have higher price
compare to the Campina product. This can also be an opportunity for Campina
over Wall’s.
However, Wall’s, in fact, also has a strong distribution channel because
of its financial capability in doing so. Due to that, Wall’s production has
already spread widely all over Indonesia. In addition to that, Walls and
Campina have more or less the same brand position and resulted to the same
group of target market. Wall’s also has some good strategy in its marketing
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communication. It creates some promotional event to make the brand famous.
For example, Wall’s produced and launched kids movie on the last holiday
season to build children’s awareness towards Wall’s product. Another example
is that Wall’s creates the lucky draw method. So when customer already buy
the ice cream and eat it, the stick that left will show them what prize they’ll
get.
Lately, Walls Company does not launch or create any new variant for the
ice cream product. It only stays the same like years ago. There are no other
new products that will be launched in the near future.
C. Customer/Consumer Review
A management website once define customer. It is a person or
organization that a marketer believes will benefit from the goods and services
offered by the marketer’s organization. By that definition, customer does not
necessarily refer to someone who purchase, but those who get expose to the
brand, whether buying it, consume or use it, or all of the above.
From that definition, we can see how important customer is to the future
of the company. The customer’s satisfaction is the most important thing
because that would be reason of a company’s continuity or vice versa.
Company needs to know which product fits its customer's needs best, along
with the budgetary constraints and feature set (Eldred 2005). For frozen food
like ice cream, Indonesia has potentially become a very representative market
due to its geographical condition. Due to that, it is reasonable to say that
company would easily get the heart of its customer without facing any
substantial obstacle.
4.1.3. Prioritizing SWOT Findings
A. Strengths
• Affordable price of the product that Campina has offered in compare to
other similar products
• Multiple distribution channels that Campina has
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• The taste of Campina’s ice cream
• Resources (human and tools) that Campina has
B. Weaknesses
• Financial condition
• Undesirable ice cream texture
• Lack of promotion compared to Wall’s as its main competitor
C. Opportunities
• Make the company’s concern towards environment stands out
• The tendency of Indonesian people to not like milk
• The weather in Indonesia
• The economic condition in Indonesia in relations to the more affordable
price that Campina offers
D. Threats
• The competitors that already holds its market
• The competitor’s marketing strategy
Campina should focus on the opportunity that it has. By shifting its focus
to the environmental condition, Campina should build its brand position
towards the “green’ direction. In addition, Campina can develop some
campaigns and re-build people’s awareness towards preserving the
environment condition.
4.2 Relevant PESTLE
In this part, there are some relevant factors that potentially influence the
continuation of the brand. Politics, economics, social-culture, technology, legal and
environment factors are the factors that Campina would pay attention on. Through
those factors, Campina can discover the opportunities and threats for the company and
maximize or eliminates the opportunity and threats respectively. In the social-culture,
for example, Indonesia is on the excitement for creating the ‘greener world’. It can be
seen from its programs, such as ‘car free day’ that held every week in Jakarta and at
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least every month in most big cities in Indonesia. Campina can develop a collaborative
campaign with those events, such as handed out free ice creams while making a
recycling demo on the ice cream packaging.
Another example is that big parts of Indonesian people do not like milk and
causing those ice cream products with milky taste become quite unpopular to them.
This can be the opportunity because the taste of Campina’s ice cream is not too
“milky.” Another example comes from its technology development. Campina can
proudly show people how sophisticated it is now. Its history can also be the legacy
that live in the company’s spirit, which make it grows bigger everyday.
Legal can also contribute to the success or failure of the company. Campina
should follow local regulations related to the health and hygiene, especially the clause
regulating food and beverages industry and the ingredients that is allowed and
prohibited to be used and marketed.
Environment should become the main concern for Campina as it has upheld it
through the vision and mission. However, Campina still use the plastic package, which
will possibly bring harm to the environment. People are getting more aware to the
environment condition and this packaging can be an issue for the company. Campina
should develop some program to overcome this issue and anticipate it from being
uncontrollable.
As for the economical condition, Indonesia as a developing country clearly has
low buying power. This condition creates the tendency of Indonesian people to be
more selective towards their list of needs. They will certainly be choosier to get the
highest quality product with a reasonable price.
4.3 Marketing Mix
After assessing the external and internal factors that potentially can support or turn
the organisation down, marketing plan will be developed. Marketing mix will be
employed in developing the marketing plan and strategy, engaging the four Ps
principles: product, place (distribution), price (-ing) and promotion (marketing
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communication). In applying its strategy, Campina will mostly work along with small
sized enterprises (SME) and business to customer-oriented company.
4.3.1 Product
From the previous part, it is clear that Campina has provided lots of
variants for each category that it defined. Those variants are provided by
Campina to fill market’s expectation towards the company. To make people
aware of Campina’s products, Campina can collaborate with other companies
to make a continuous program. As one of the idea, Campina can use bonus
program to boost its market. Campina can cooperate with supermarkets, such
as Hero or Carrefour, to give free product for certain minimum products.
Another option is that Campina can give merchandise to the customers who
buy certain quantity of Campina’s products. For example, Campina can give
free recipe book for a minimum purchase of 2L Campina ice cream.
4.3.2 Distribution
For the distribution, Campina prefers to use retailing method. Since ice
cream should be placed on the particular place on certain temperature, there
will be more budget for the retailers to provide it. Campina also creates new
business in the distribution process from the producers to the consumers.
Campina can also develop “Campinas Scoop Counters.” So people who want
to sell Campina products can ask for the special refrigerator that already put
Campina’s logo. Campina already put some criteria for people who want to go
into this business. Campina itself provides some of the equipment, but others
required self-providence. The method inspired from franchise principles,
which helps the company in the distribution process. However, Campina
should take effort in promoting the program, so a lot of people will get
informed about the program.
4.3.3 Pricing
About the pricing, there is no specific strategy for it because the price is
pretty affordable. For the personal pack, the price range is about Rp 3,500-Rp
10,000. For the family pack, they offer about Rp 20,000-Rp 30,000. Based on
the price, we can see that it is suitable for each level of economy. But again,
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with that price, Campina has to make good strategy to maintain the brand
image. Campina has to prove that their product is cheap but not ‘cheapy’. And
again, all that they have to work on is by doing a good marketing
communication.
4.3.4 Marketing Communication
In marketing communication, it is better to choose advertising,
consumer/trade merchandising, packaging and event sponsorship. In the
advertising, Campina have to work more on promoting the ‘green’ principle.
Moreover, Campina has to create a good, creative yet exclusive program,
which personalizes to every market segments it has. Moreover, the perception
about low quality ice cream that comes up because of the cheap price should
be anticipated throughout the marketing communication program. From the
consumer/trade merchandising, Campina can give like a bonus for every
certain purchase that people do. Campina can offer free recipe books that
designed to attract people. Campina can also communicate its environmental
friendliness towards its packaging by making environmental friendly plastic
packaging for every ice cream.
5.0 Conclusion and Recommendation
It important for every company to have its very own marketing plan, customized to
its current condition. This is crucial in order to manage its performance in its best possible
way to impress the customers, differentiate itself from the competitors and gain more
reputation towards the corporation. Marketing plan should be able to characterize an
organization in order to capture public’s attention better than its competitor.
The researcher tries to discover Campina’s strengths, weaknesses, opportunities and
threats, along with the PESTLE. Then, the researcher incorporates those findings and
develops a marketing plan for Campina using the four Ps principles. In the end, there are
some key suggestions for Campina’s marketing strategy:
(a) Make a bundling or bonus program to attract people in buying its product;
(b) Concentrate on maximizing the retails market. Campina can develop a program
such as “Campina Scoop Counters”, which engage people to takes part in
distributing the product;
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(c) Keep the price affordable, but still be able to offer a good quality product;
(d) Catch people’s attention through its packaging; and
(e) Take current public’s issue as the idea to build marketing strategy. For example,
Campina can invest in research and development sectors to create a
environmentally friendly packaging.
However, these research findings are quite hard to be generalized and adapted in
different company. Therefore, further research need to be taken into account when a
different company would like to adapt these theories into their situation. Moreover, the
scope that is being examined is too small, resulted to the lack of comprehensiveness towards
the company as a whole.
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