Analysis of Marketing Strategies for Duck Egg Flour Business in Increasing Sales Volume: A Case of Small and Medium Enterprise “Abinisa” in Sujung Village, Tirtayasa District, Serang Regency

Analysis of Marketing Strategies for Duck Egg Flour Business in Increasing Sales Volume: A Case of Small and Medium Enterprise “Abinisa” in Sujung Village, Tirtayasa District, Serang Regency

Sulaeni; Gugun Gunawan; Aris Suprio Wibowo; Salsabillah Syawalia

Universitas Sultan Ageng Tirtayasa

DOI: https://doi.org/10.51244/IJRSI.2023.1012060

Received: 07 December 2023; Revised: 22 December 2023; Accepted: 27 December 2023; Published: 21 January 2024

ABSTRACT

Consumption of egg flour in Indonesia is currently quite large. This can be seen from the increase in egg flour imports. Import figures in 2018 – 2021 have increased from 15,676,606.7 kg to 17,298,358.3 kg (BPS 2022). Egg flour has a broad market and low production costs, and in addition to meeting the needs of the domestic food industry, it is very possible to apply it to small and medium industries (UMKM) to increase the added value of products and farmers in income. The purpose of this study is to analyze the marketing strategy of the duck egg flour business in increasing sales volume in UKM Abinisa. The type of research used in this research is descriptive with a qualitative approach. The method used in this research is a case study research method that will be carried out at UKM Abinisa Sujung Village, Tirtayasa District, Serang Regency. This research was conducted at the end of June – August 2023. Based on the internal strategic factor matrix, UKM Abinisa gets a positive value (+) where the strength (S) is 1.86 greater than the weakness (W) is 1.08. Meanwhile the external strategic factor matrix also gets a positive value where the opportunity (O) is 1.75 greater than the weakness (W) is 0.84. Under these conditions, the suitable strategy is the “Growth Strategy”. Meanwhile, based on the SWOT analysis, the marketing strategy that can be implemented by UKM Abinsa is a rapid strategy, namely developing existing strengths and increasing and maintaining existing opportunities.

Keywords: Marketing Strategy, SWOT Analysis, Sales Volume

INTRODUCTION

Activity in the economy is crucial for increasing power tariffs and enhancing the quality of life in society. As the economy grows, the needs of the community can be fulfilled. The marketing strategy involves making decisions about marketing costs, the marketing mix, and allocation in connection with expected circumstances and the competitive environment (Yulianti, 2019:14). Creating a marketing strategy is not an easy task; business owners must consider factors such as the product’s appeal to future consumers. Efforts must also be made to understand what consumers need at any given moment, ensuring the product is well received.

Small and Medium Enterprise (SME) Abinisa was founded in 2018 by Mrs. Susi Rahwati and initially focused on selling duck eggs. Over time, the business expanded beyond selling eggs and ventured into a new venture, producing egg flour. While the business has been operational for a considerable period, it has yet to reach its full potential. Additionally, it faces stiff competition in the industrial sector due to technological advancements. Therefore, entrepreneurs must be adept at utilizing existing technology.

This SME collaborates with various government services, leveraging its extensive network to boost the sales of duck egg flour. On average, they are capable of producing 10 to 100 kg of duck egg flour per month. According to the SME owner, for every 1 kg of flour, they require approximately 80 duck eggs, which contributes to the product’s relatively higher price. This is especially noteworthy considering that the price of duck eggs in the market can be unpredictable. In addition to partnerships, the product is promoted through social media and other e-commerce platforms. However, there are still numerous obstacles that need to be overcome to effectively promote the products in e- commerce.

Flour egg consists of three types: namely, yellow egg flour, white egg flour, and a mixture of both. White egg flour is produced through a fermentation process, often used to make cream nougat or as an adhesive material. Yellow egg flour is commonly used in the production of bread, layer cakes, dry cakes, mayonnaise, egg noodles, and more. Meanwhile, the mixed egg flour is typically suitable for making egg noodles, omelettes, baby food, mayonnaise, canned food, and so on.

The consumption of egg flour in Indonesia is currently quite substantial. This is evident from the increasing imports of egg flour, which rose from 15,676,606.7 kg in 2018 to 17,298,358.3 kg in 2021 (BPS 2022). Indonesia itself does not yet have an egg flour processing industry, whether on a small or large scale. Egg flour holds a significant market potential with low production costs. In addition to meeting the domestic food industry’s needs, it is highly feasible for application in small and medium industries (MSMEs) to enhance product offerings and increase breeders’ income.

Based on the background presented, several research questions can be formulated as follows: What is the final marketing strategy implemented by SME Abinisa, and how is it executed? What are the external and internal conditions affecting the marketing of duck egg flour in Abinisa SME? What are the appropriate marketing strategies to boost the sales volume of duck egg flour at SME Abinisa? This research aims to analyze the marketing strategy of the duck egg flour business in increasing sales volume at SME Abinisa.

RESEARCH METHODS

This study was conducted at SME Abinisa in Sujung Village, District Tirtayasa, Regency of “Serang”. The selection of this location was deliberate, considering that SME Abinisa is one of the businesses with high sales volume in Sujung Village, District Tirtayasa, Regency of “Serang. The research took place from January to June 2023.

The determination of the sample selection in this study utilized Frequent Purposive Sampling, also referred to as Internal Sampling. This sampling technique was chosen based on the consideration that the researcher selects informants based on specific goals. The selected samples in this study consisted of individuals who are trustworthy and possess expertise in the marketing strategies of the duck egg flour business at SME Abinisa. This included the owner and employees of Abinisa SME, totalling 5 people, as well as 5 consumers. Consequently, the total sample size for this study was 10 people.

The types of data used in this study are primary and secondary data. Primary data was acquired through interviews with respondents using a questionnaire. Meanwhile, secondary data was obtained through a comprehensive review of relevant literature related to the topic of this study, including scientific journals, theses, books, and various related materials.

To understand the marketing strategies employed in the duck egg flour business for increasing sales volume, an analysis was conducted using the SWOT analysis framework. This analysis is based on the logic of maximizing strengths and opportunities while simultaneously minimizing weaknesses and threats.

RESULTS AND DISCUSSION

General description

Abinisa SME is a business specializing in food processing partnerships. This SME was established in 2018 by Mrs. Susi Rahwati and her husband, Mr. Ahmad. The location of this SME is in Kp. Legon Rt. 006 Rw. 002, Sujung Village, Tirtayasa District, Serang Regency, Province of Banten.

Identity Respondent

The identity of the respondents is information obtained from them in the form of questionnaire data distributed by the author, containing details such as age, position, and level of education in SME Abinisa.

Table 1. Data Respondent

No	Name	Age	Position	Education
1	Susi Rahwati	40	Business owner	Senior High School
2	Ahmad Fayumi	44	Business owner	3-year Diploma
3	Anggara Anjar	37	Employee	Senior High School
4	Tuti Hasnawai	28	Employee	Senior High School
5	Alawiyah	30	Employee	Senior High School
6	Siti Hasna	35	Customer	Bachelor’s degree
7	Supardi	41	Customer	4-year Diploma
8	Haliyah	45	Customer	Master Degree
9	Sugandari	38	Customer	3-year Diploma
10	Meka	48	Customer	Bachelor’s degree

Data Description

Based on sales data obtained by the author from SME Abinisa for the period of 2018 to 2022, the sales data for duck egg flour at Abinisa SME can be presented as follows:

Table 2. Sales Volume Data Flour SME Abinisa Duck Eggs.

No	Years	Total sales volume of Duck Egg Flour (Kg)
1	2018	156.700.000
2	2019	160.550.000

3	2020	167.250.000
4	2021	173.050.000
5	2022	185.000.000

Based on Table 2, it can be seen that the sales volume of duck egg flour at Abinisa SME has experienced an increase from year to year. Abinisa UKM is a business involved in the processing of various food products, including a range of duck egg products with various types and variations.

The sales of duck egg flour at Abinisa SME, as obtained by the author over the years, have experienced growth. Several factors contribute to the increased sales of duck egg flour at SME Abinisa, as follows:

1. strong foundation in producing quality
2. The alignment of existing products with consumer
3. The ability to establish strong connections with consumers or ” .

Data Analysis

Based on Table 2 for count percentage of sales volume egg ducks at SME Abinisa from 2018 to 2022 can calculated with use formula as following :

Analysis Sale

The total sales volume is a measure of a company’s achievement in operational activity. With good sales, the company can ensure the sustainability of its operations, especially for companies engaged in selling activities. Selling is one of the profit-generating activities. The following table shows the sales of duck egg flour at SME Abinisa.

Table 3. Sales Volume Percentage Flour SME Abinisa Duck Eggs.

No	Years	Total sales volume of Duck Egg Flour (Kg)	Percentage
1	2018	156.700.000	–
2	2019	160.550.000	2.47%
3	2020	167.250.000	4.15%
4	2021	173.050.000	4.66%
5	2022	185.000.000	5.68%

Figure 1. Graph Sale Flour Duck Eggs 2018 – 2022

Based on Table 3 and Figure 1, it can be observed that from year to year, SME Abinisa has been able to consistently increase sales. In 2019, the sales of duck egg flour at SME Abinisa increased by 2.47%. In 2020, the SME was able to increase sales by 4.15%. In 2021, SME Abinisa achieved a sales increase of 4.66%, and in 2022, it achieved an increase of 5.68%.

Analysis Descriptive

The marketing strategy implemented is not exempt from the marketing mix policy (also known as marketing mix), commonly referred to as the 4P’s (Product, Price, Promotion, and Place).

Internal and external factor identification is conducted to ascertain the strengths and weaknesses of marketing strategies in Abinisa SMEs. The author has carried out an analysis, yielding a number of strengths and weaknesses from the results.

Internal and External Martices

Internal and external factors of the duck egg flour business at SME Abinisa are analyzed in this research using SWOT analysis. The steps for conducting a SWOT analysis involve formulating variables, analyzing internal and external factors, developing an Internal External (IE) matrix, and finally, developing alternative strategies using the SWOT matrix.

a. Formulation of Duck Egg Flour Business Variables at Abinisa SME: Strengths

• Have a reliable source of raw materials.
• The product meets the desired specifications.
• Demonstrates good durability.
• Possesses a positive product image.
• Provide excellent customer service.

Weaknesses

• Faces competition in the same market segment.
• Product promotion is not optimized.
• Occasional presence of subpar products.
• Need for improvement in marketing personnel resources.
• Suboptimal response to consumer claims.

Opportunities

• Enjoy long-standing consumer loyalty.
• Maintain a strong relationship between SMEs and consumers.
• Clear market and consumer segment identification.
• Possess a positive image in the eyes of consumers.
• Tap into the potential of young human resources as future entrepreneurial assets. Threats
• Competes with significant players in the market.
• Faces an increasing number of new competitors in the market segment.
• Occasional issues with product quality.
• Limited marketing personnel for product promotion.
• Risk of customer dissatisfaction leading to a shift towards competitors.

b. Analysis (IFAS)

Based on the results of weighting, rating, and total scoring above, a total of 2.94 was obtained, with sub-total details of S (strength) 1.86 and W (weakness) 1.08. This indicates that the strengths of SME Abinisa outweigh its existing weaknesses.

c. External Strategy Factor Analysis (EFAS)

Based on the results of weighting, rating, and scoring above, there is a total of 2.58, with a subtotal of O (opportunities) at 1.75 and T (threats) at 0.84. This indicates that the opportunities available to Abinisa SMEs outweigh the existing threats. This suggests that the current conditions offer ample support and opportunities for Abinisa SMEs to develop their business by capitalizing on existing opportunities and mitigating the present threats.

d. Calculation of the IFAS and EFAS Matrix for SME Abinisa

Based on the results of IFAS and EFAS matrices calculations, the highest score is obtained in the SO category, with a score of 3.61. This means that the chosen strategy will optimize the strengths (S) while taking advantage of the existing opportunities (O) in Abinisa SME.

The SWOT analysis results via internal (IFAS) and external (EFAS) factors indicate a positive value position. This suggests that the environment faced by Abinisa SMEs offers more opportunities than threats, making it stronger compared to its weaknesses. The appropriate policy direction for this situation is a “growth strategy.”

From the IFAS and EFAS calculations, it can be observed that the IFAS score is 2.94 and EFAS score is 2.58. Therefore, the position of SME Abinisa falls into cell-1. According to Rangkuti (2004), a Growth Strategy should be implemented. This strategy is designed to achieve growth in sales, assets, profits, or a combination of all three. The emphasis of this strategy requires a change in strategy with the objective of enhancing sales and profits. Possible steps that can be taken include product development and market expansion, as well as promotional activities for entrepreneurs to leverage their strengths and capitalize on existing opportunities.”

SWOT Matrix

Based on the IFAS and EFAS matrices, four main strategies were prepared, namely SO, WO, ST, and WT. Each has its own criteria, separately based on function, contents, and mutual support between strategies.

The SO strategy is implemented by leveraging the strengths of the businessman to seize and exploit existing opportunities as much as possible. The ST strategy is created to use available strengths to neutralize existing threats. The WO strategy is implemented based on existing opportunities to minimize entrepreneur weaknesses. The WT strategy is centered on survival activities or minimizing weaknesses to avoid threats.

DISCUSSION

From the analysis results that have been conducted, it can be seen that the condition of SME Abinisa is actually quite good. Based on the internal strategy factors matrix, these SMEs received a positive mark (+), where strength (S) is 1.86, which is greater than weakness (W) at 1.08. In terms of the external strategic factors matrix, a positive mark was also obtained, with opportunities (O) at 1.75 being greater than weakness (W) at 0.84. With these conditions, the suitable strategy is the “Growth Strategy”.

According to Tri Adi’s (2016), to further focus on growth strategies, they are divided into two categories: selective strategies and rapid strategies. A selective strategy is employed when the strength factor is slightly greater than the opportunity factor. In this strategy, not all opportunities can be leveraged by the entrepreneur, so priorities must be set on which ones to develop first for a more focused approach. On the other hand, a rapid strategy is chosen when the strength factor significantly outweighs the opportunity factor, allowing for swift development because all opportunities can be seized by the entrepreneur.

Given the strengths possessed by SME Abinisa, a rapid strategy can be employed, which involves capitalizing on all available opportunities. The following are the strategies:

• Improving the quality of raw material sources for products to ensure customer satisfaction with the products sold.
• Expanding marketing areas.
• Strengthening relationships and collaboration with customers, as Abinisa SME has many loyal customers who indirectly help promote the existence of the SME.
• Strengthening relationships between entrepreneurs to prevent unhealthy competition, such as price wars.”

Based on SWOT analysis, the result show some weaknesses that need to be improved. Given the volatility of duck egg prices in the market, the relatively higher cost of duck egg flour resulting from the need for about 80 duck eggs to produce 1 kg of flour could be problematic. Effective marketing and advertising campaigns may be hampered by a lack of marketing staff. The company’s reputation might be harmed by sporadic poor-quality goods and inadequate handling of customer complaints. Taking care of and enhancing customer service is crucial.

The embrace of modern technology for effective product promotion through social media and e-commerce platforms is a growing trend. Research suggests that social media can significantly influence brand loyalty, sustainability, and business effectiveness (Dwivedi et al. 2021).

Cost reduction strategies are essential for small and medium-sized enterprises (UMKM) to improve efficiency and profitability. Additionally, the government has issued policies to reduce tax rates for UMKM, such as the reduction of the PPh Final tax rate to 0.5%. Furthermore, the influence of raw materials and direct labor costs on the profit margin ratio in UMKM has been studied, emphasizing the importance of managing these costs to improve profitability (Triwidatin 2022). That research also stated it is important for UMKM to develop cost reduction strategies to remain competitive, especially in the face of intense business competition and the challenges of the industrial revolution 4.0. Cost reduction strategies are crucial for UMKM to improve competitiveness and profitability, and various approaches, including tax reductions, energy efficiency, direct labor costs and overhead costs efficiency, can contribute to achieving this goal (Suhartini et al. 2021).

Efforts to expand the marketing area to reach a wider audience can be done in various ways, depending on the type of product or service offered. Some examples of efforts that can be made are using social media as promotional media (Agustiningsih et al., 2016). Digital and social marketing allow companies to achieve their marketing goals at relatively low costs. This is proven by the fact that more than 50 million businesses are registered on Facebook and more than 88% of businesses use Twitter for their marketing needs. (Dwivedi et al. 2021).

Investment in the training and development of MSME marketing personnel is crucial to improve their skills and abilities. Several studies have been conducted to understand the effectiveness of digital marketing training for MSMEs and the challenges they face. Key findings from these studies include: Digital Marketing Training for UMKM: A study conducted by (Putri et al. 2022) found that digital marketing training was necessary for MSMEs to improve their understanding and ability to implement digital marketing strategies. The training was implemented through materials, practices, and tests in the form of assignments related to the training content. The results showed that 82% of participants passed the test and received a digital marketing competency certificate, while 18% of the training was carried out smoothly.

Nataliawati et al. (2023), stated that the training and mentoring activities were conducted by a team of lecturers and students, aiming to enhance the partners’ digital marketing skills. Digital Marketing Training for Fishball MSMEs Group in Malingping District, Lebak Regency, Banten: This activity aimed to help solve the problems faced by the Malingping Fishball MSME group, particularly during the pandemic when the number of sales decreased (Saputra et al., 2022). The digital marketing training provided by ResearchGate aimed to improve their online presence and sales.

Baharsyah and Suherman (2023), conducted a study focused on improving the quality of service and promotion for Micro, Small, and Medium Enterprises (MSMEs) through marketing management training. The study showed the training aimed to enhance the participants’ skills in managing marketing and promoting their businesses effectively.

Managing raw material price volatility is a significant challenge for MSMEs. There are several strategies that MSMEs can use to manage raw material price volatility, including contract management, diversifying suppliers, cost-plus contracts, and budgeting strategies. Contract management can help MSMEs lock in prices for raw materials, while diversifying suppliers can reduce dependence on a single source and access competitive pricing. Cost-plus contracts can help pass on price increases to clients when necessary (Arnold et al, 2009). Budgeting strategies also can help MSMEs manage costs and respond to price fluctuations (Hu et al. 2020).

For the last, MSMEs should monitor and respond to customer feedback and online reviews to improve their competitiveness and product quality. For example, (Colmekcioglu et al. 2022) suggests that firms should monitor customers’ online review activities and provide more quality information about products and services to respond to negativity. Kaushik & Dangwal (2023), recommends monitoring competitors’ product innovation behavior, surveying the market, assessing customers’ needs, and monitoring customer behavior to improve MSMEs’ performance.

CONCLUSIONS AND SUGGESTIONS

Conclusion

1. Based on the research results, the marketing strategy implemented by SME Abinisa is focused on growth, which has led to a significant increase in its sales.
2. According to the SWOT matrix analysis, SME Abinisa boasts a strong internal foundation, characterized by its commitment to maintaining the quality of raw material sources, product durability, positive product image, and excellent consumer Externally, the company benefits from the positive relationship it maintains with its consumers.
3. Following the SWOT matrix analysis, the recommended strategy for boosting sales in SME Abinisa’s duck egg flour business is a rapid approach, leveraging existing strengths and capitalizing on available opportunities while maintaining them.

Suggestion

1. For SME Abinisa to establish more social interactions between producers and consumers, thereby facilitating the growth of the duck egg flour business in the future, and to acquire proficiency in modern technology for effective product promotion through social
2. For other researchers who wish to utilize the same sources or research subjects, this material can serve as a reference for their own development, particularly in areas related to marketing strategies employing SWOT “

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