The Application of E-Business Systems to Support

Marketing Strategies: Case Study on Eel Marketing

Wiwin Windihastuty, Reva Ragam and Safitri Junita

Universitas Budi Luhur

Keywords Eels farmers, Transfer, Cash on Delivery, PayPal

Abstract In this study, the E-Business Application system will be built with the aim of the system producing that can

introduce Indonesian Eel products. Another goal is to expand the market and improve the quality of product

sales because, with the existence of an e-business application system as an information media, interactive

communication between eel farmers and consumers will be good, so the buyers needed to be fulfilled

properly. The results of the E-Business system design allow a company to connect with internal and

external data processing systems more efficiently and flexibly. Marketing systems no longer focus on local

communities as a target, but also in the overseas community. E-Business is designed to contribute to

problem-solving, ensure customers can get information services. Guide visitors to be able to process

purchases and payments by several methods such as bank transfers, cash on delivery, and PayPal, the

product payments will be confirmed by email. These facts are not only expanding the target market but also

creating global competition because the marketing system is not limited in a certain region

1 INTRODUCTION

Limited marketing caused some industries not

developing properly. This makes the management

must innovate market expansion, and the target is

through the design and utilization of E-business. The

use of information technology in trading has

developed very rapidly through a number of very

significant changes in the form of digitalization,

capital mobility, and information liberalization

(Laudon & Traver, 2013). Customers can place

orders and purchases without limitation of place and

time, responsiveness to current information (Xiaohui

et al., 2014). The process of all business transactions

can take place online to facilitate the payment

process for domestic and foreign. Business

expansion has become more flexible, reaching wider

target markets, cheaper and interactive promotional

media, clarity of transparency of operational costs,

expediting distribution systems, facilitating

commercial transactions across cultural and national

boundaries with relatively more cost-effective,

makes it easy to build business partnerships with

differentiation patterns that are appropriate to the

needs of certain product/service specifications (Li &

Hong, 2013). Therefore, the main need in designing

E-Business is an important means to disseminate

information about a variety of product uniqueness

and expand the area of market share with the goal of

achieving more competitive and global profit and

competitiveness (Afsar et al., 2013). The success of

E-Commerce is more dominant in the specificity of

products with certain specifications. Business

ventures with unique and specific products can make

business opportunities and have a high comparative

level because they have special characteristics and

do not yet exist in other business ventures, as well as

business ventures carried out by PT Luhur Kasih

Sakti.

Indonesia is known as a maritime country that is

rich in natural resources. One of the marine assets

that is the object of this research is freshwater eel

(Haryono MR, 2013). Marketing of eels both

domestically and abroad is still very low. To

overcome this, several attempts were made to

recognize the existence of eels. Like creating a

website that contains all the information about eels

accompanied by distance learning how to capture,

maintain, and process good eels. The next problem

is how to introduce it to the community, the results

of processed eels, proteins contained in it. This is

overcome by utilizing information technology in the

field of trade, such as e-Commerce. Along the way,

Windihastuty, W., Ragam, R. and Juanita, S.

The Application of E-Business Systems to Support Marketing Strategies: Case Study on Eel Marketing.

DOI: 10.5220/0008928900340039

In Proceedings of the 1st International Conference on IT, Communication and Technology for Better Life (ICT4BL 2019), pages 34-39

ISBN: 978-989-758-429-9

e-business cannot be fully utilized, because, in

further research, it is known that the market shared

of eel processed products is abroad. Eel resources

which have abundant presence have not been

utilized optimally. Farmers who catch eel seeds,

collectors of eel seeds, eel cultivators and eel

processing industries are then called eel offenders,

have not been well integrated, so it is difficult for

buyers to find their eel needs. The growth of the

cultivation business is not too significant because it

is not easy to sell products to the domestic market

because local people do not consume processed eel

products. Limited marketing has caused some

businesses in eel cultivation to not develop properly

because of limited buyers. Marketing has not been

well developed and tends to stagnate, and business

owners are looking for new approaches to expand

their business opportunities by marketing products

online with the E-Business system. The limited

mobility and market liberalization have led to

Management trying innovation to expand the target

market by designing and using E-Business. E-

Business Technology is a business mechanism that

functions electronically by focusing on online

business transactions and has the possibility of

developing friendly and personal relationships with

customers outside of time and space. This fact

creates global competition because the marketing

system is no longer limited to certain areas. At

present, the marketing system still relies on direct

interaction with buyers and focuses on specific

locations in Indonesia, which makes it difficult for

Management to increase sales and expand marketing

outside Indonesia. The purpose of this research is to

create a system that makes it easy to introduce and

sell processed eel products globally. Expand the

target market and increase sales volume by

developing interactive communication with

customer buyers through the provision of alternative

online interfaces as a medium to promote processed

eel products from PT Luhur Kasih Sakti.

2. RESEARCH METHOD

Case study research is a thorough approach of

market expansion needs by using target analysis,

business model design, customer interface, market

communication, and implementation design. The

research instrument is through interview and

observation technique and for the sampling is

through purposive sampling technique. Research

data is from primary data and secondary data.

Primary data is data that directly acquired from the

company through an interview with an observation

of the company's representative. Secondary data are

daily business transaction data, company's daily and

monthly data, and reports published to the public.

All acquired data will be reprocessed as needed for

the research. Application design is using Waterfall

approach (Shelly & Rosenblatt, 2012). This

approach is classic and systematic; thus, it will be

easy to understand because all the processes work

simultaneously in certain sequences to create

software.

This method starts from planning, developing

and will be continuously evaluated to determine if

this information system is still suitable to be applied,

if not, it will be changed with a new system, and it

will start with the planning again. System planning

begins after receiving a proposal either internally or

externally, followed by management decision. After

management approval, the plan will be made in a

complete work plan structure and includes the whole

system. The development phase will be conducted

through survey, analysis, designing, developing,

implementation, and maintenance. The purpose of

the survey is to identify the scope of work. The

analysis phase is to understand the available system,

to identify the problems, and to look for the solution.

The designing phase is to design a new system to

resolve the company's problems. The developing

phase is to create a new system through

computerizing system coding. The objective of the

implementation phase is that the system created can

resolve the company's problems. Its application will

be in sequential (waterfall), in which each phase has

to be complete before it continues to the next phase,

in order to avoid repetition of a phase. The purpose

of the maintenance phase is for the system to run

properly and can be operated optimally. The

evaluation phase is conducted to ensure that the

implementation of system development is in line

with the planning, from the timing, cost, or technical

aspects. Evaluation team includes user, and it starts

during the system development, during the hand-

over, and during the operations.

The process of designing a prototype E-Business

system is using basic component with application of

CSS (Cascading Style Sheet), PHP (Personal Home

Page), javascript framework, jQuery, CI

(CodeIgniter), by utilizing MVC (Model View

Controller). The system testing will use data that is

easy to be checked (easy values), simple and easy to

calculate data (typical realistic values), extreme data

(extreme values) and prohibited data (illegal values).

The structure of the testing is important because the

data recording has to be accurate and precise. The

The Application of E-Business Systems to Support Marketing Strategies: Case Study on Eel Marketing

validation of input process shall determine the

overall output qualification of the system, making it

easier to make managerial decisions.

The needs for opportunity analysis of target

market expansion begins by identifying a number of

similar competitors, wherein this business not many

have used the internet media as an online marketing

model, so it is a good opportunity. Limitation of

technical factors is such as access speed, server

capability, and ease of access. Providing easy

information access that has become a problem.

Dynamic promotion media may boost the number of

transactions and customers. However, not all have

constant and normal internet infrastructure networks.

The products have a special specific factor that

requires product digitalized media in the virtual

market. The design of the interface is using 7C

approach (Context, Content, Community,

Customization, Communication, Connection, and

Commerce). For market communication can use

search engine, online commercial, print media and

magazine (Mohapatra, 2013).

3. DESIGN

The needs for designing business process of E-

Business system starts off through searching,

identifying, and analyzing processes to complete all

information needed to be related to the contents and

features attributed to the dimension of Eels

processed products. This process is intended to dig

up all requirements of the information of each

business process so that the application model and

the marketing sites procedure align with a

conventional business process. This will offer new

opportunity as well as a solution to some limitation

that a company has by considering the operations

procedure and standardization. Marketing

digitization system enables seller and buyer to meet

online through E-Business sites with no restriction to

location and time in conducting the business

transaction. Business process analysis scope of the

information request process shall be up to validation

receive process from the buyer. The specification

requirement of E-Business system shall be

differential into two important parts, functional and

nonfunctional. The functional requirement is part of

the requirement that consists of processes to run the

E-Business system. While the non-functional

requirement is focusing on elements of system

behavior properties. The interaction and ability to

manage the stimulus of all elements of the system

can be the most important support for successful

relationships with customers and prospects.

The design of E-Business system architecture has

two main parts, namely front-end and back-end

pages. Each section has its own features and content.

Front-end is a page that displays the front of

eCommerce site that serves the user with features

that have been arranged in such a way to facilitate

the process of spending knowledge and searching

product information quickly and accurately. Front-

end is a user page doing the online shopping

process, searching price and product information and

interacting with the company. While Back-end is the

page that is displayed for the admin and setting the

contents of the data in the front-end site. Admin can

add, edit, delete existing data, such as product data,

administration data can order data, and on the back-

end, page admin can access other useful information.

The admin page can't be accessed directly through

the menu in index.php, but must by typing a certain

address on the browser so that the security level is

higher. One of the principles in designing a site is

ensuring that each page has a good navigation

system and links that are able to take visitors to the

main page. E-Business site has a menu section

header, in which the Catalog menu will always be

updated according to visited links, My Account

menu, Trolley menu, Checkout menu. In addition to

using the header section menu, this site also uses

other alternative navigation links on the left and

right sides like Categories, New Products, Search,

Shopping Cart, Bestseller, Viewed Product and

Bookmark. In the Footer, there is a trademark of the

site and company.

E-Business system uses client-server technology

architecture, centrally, because it can overcome the

problem of duplication of interference. The purpose

is that if one customer has a disruption in accessing

data from the server, then the interference does not

affect other customers in doing data access. In

addition, it does not require a large amount of costs

because the server only serves to store all customer

data, transaction data and product information,

therefore all existing data can be used by the client

in accordance function and purpose. The server

provides data in accordance with the needs of the

client so that it can directly operate through the

available network. This connectivity provides an

effective network to ensure and ensure smooth

acquisition of information so that all transaction data

and feedback from customers can perform the

process more effectively and efficiently.

E-Business architecture has a business process

management mechanism starts from the customer

ICT4BL 2019 - International Conference on IT, Communication and Technology for Better Life

accessing the site, then the customer purchasing an

item by adding the item to the shopping cart. After

the shopping is complete, the buyer can enter billing

information into a credit card or buyer who already

has a PayPal account can login to make payment.

Before making a payment, the buyer confirms the

details of the transaction, next to the buyer checks

and prints the payment confirmation. The final step

is that the buyer receives payment notifications via

email. The payment method architecture with PayPal

starts from customer shops by stuffing items into the

shopping cart. After shopping, the next step is the

customer must log in. After successful login,

customer can check the shipping data and billing

information, then makes payment. After making the

payment, the customer can view the order in detail,

and then the customer sees the confirmation of the

ordered item. The architecture of how payment of

invoices works online starts from invoice delivery.

The customer then clicks the payment link on the

invoice to make a payment. After the payment

process is done, the customer's funds are transferred

from the customer's bank to the bank with the

payment network. After all payment processes are

completed, then the final step is the customer

matches it with the original invoice.

Figure 1. E-Business System Architecture

Strategy in the designing stage of the E-Business

site refers to object-based design. Use-case diagrams

explain the benefits of the system when viewed from

the perspective of people outside the system or actor.

The Admin's function in the site is when

successfully log in to the administrator page, the

admin can manage the purchasing activities that

contain the explanation of how to make transactions,

change password, manage product management such

as adding, deleting and changing product data and

product categories, manage admin module which

contains bank data, manage comments and incoming

transaction menus. The Visitor's function, in this

case, the consumer is the product ordering activities

through the registration process (Figure 2)

Figure 2. Use Case Diagram of E-Business System

The data structures design is using the MVC

framework (Model View Controller). The MVC

framework generates a data structure that assigns

tasks to each function so that it is more controllable.

CodeIgniter is a framework that enforces the MVC

file structure in its structure. The MVC structure in

the CodeIgniter framework uses component

diagrams. The work unit that manages all the

components in the CodeIgniter framework is the

core component that is integrated into the system

package. The core component oversees or manages

the dependent model and controller in which the

controller sends the data request, and the receiving

model retrieves the data that the controller wants

from the database. The result of the data request will

be shown to the view by the controller. The MVC

file structure in the CodeIgniter framework is

usually placed in the application folders that have

been group according to their respective functions.

Here is a file structure display of each MVC folder

in PT Luhur Kasih Sakti's E-Business site design.

Figure 3. Component Diagram of E-Business System

Furthermore, class diagrams can display some

classes and packages that exist in the

system/software used and the connections therein.

The class diagram describes the types of objects in

the system and the various existing static

connections. The class diagram shows the properties

and operations of a class and the restrictions

contained in the connection of those object.

The Application of E-Business Systems to Support Marketing Strategies: Case Study on Eel Marketing

Figure 4 Class Diagram of E-Business System

Here is the main page design to manage all

contents on E-Business system of products. The

design page of the seller/supplier menu format has a

function to log all records so it will be easy to find a

particular seller/supplier's ID. This information is

very important, considering all transactions will be

interconnected with other items of choice menu. All

the options in this menu have permanent inner links.

The interface for public pages of this homepage is

the default page when the display is first access with

the base address. This page will display some

sections that help users to find the required products

through the E-Business system's site search engine,

categories with parent and child. In addition, there is

an automatic slide banner at the top, and this is to

provide announcements about the policy or

information to be conveyed to customers.

Having a shopping cart page display on the

visitor page. If a visitor makes a transaction by

clicking the buy button, the item will go into the

consumer’s shopping cart. On that page, the data of

purchased products and total payments to be pay by

consumers will appear

For information showing order data such as

member's data i.e., name, address, phone number,

and email as well as the name of the ordered

product, the shipping cost and the total price of the

items ordered by e-mail. The system will send the

destination account number for the payment through

the email of the member ordering the product. If the

data has been sent via email and within three days

the payment confirmation is not received, then the

admin will cancel the order by changing the

member's booking status according to the

established procedure and the delivery process will

not be done or not performed.

The system has a content to verify and validate.

It is important considering all the item's data that

have been entered into the shopping cart used as data

of the items to be paid. This is because the data has

not been entire into the admin's bill of sale. To

continue this process, the consumer must click the

process button. After the process button is clicked,

then the item's data in the shopping cart will proceed

to the admin invoice. Below is a display that shows

that the existing data in the cart proceeds into

admin's bill of sale. To make payment to the ordered

items, the consumer must fill in the data on the

confirmation payment form. Before filling in the

data, the most important thing that must know the

invoice number. To get information about the

invoice number, the consumer can click on the

Invoices menu that is group into the shopping cart at

the right of the site

This E-Business system provides a number of

operational advantages, such as data processing is

easier to track, payment systems become more

accurate with no accounts receivable, inventory

information is more accurate, developed

personalized relationships with customers to become

closer, and it is one of the company's

competitiveness aspects. Also, the ability to identify

customer needs that have not been met eliminates

time constraints for customers to obtain information

about the products offered or the ongoing

promotions, communicate with customers in a more

clear manner and directly solve their immediate

needs. Eels process products sold are no longer

focusing on the domestic market only. E-Business

system has a navigation feature that provides

convenience for visitors, in this case, either

consumers or buyers while visiting the site's page. It

contributes to problem-solving as a guarantee for a

customer's friendly information services and

switches to the digitization of the sales of eel process

products. Displaying certain messages in directing

visitors, the prospective buyers can start the process

of ordering goods online at anytime and anywhere as

well as to get the most up to date information about

eel process products. The ability of the E-

Business system offers many new opportunities,

especially the opportunity to expand market target

with low operating costs because all transactions can

take place regardless of the time and place of

business transactions.

4. CONCLUSION

E-Business system design for special eels processed

products has the facilities to store personal data

members (members) with a complete username and

password to anticipate being misused by

irresponsible people. E-Business System also

provides payment facilities through bank transfer

and Cash-On-Delivery. In addition, this application

ICT4BL 2019 - International Conference on IT, Communication and Technology for Better Life

provides interesting features for members, such as

the invite friends program, and a gift of discount

shopping vouchers when the member is having a

birthday. The architecture of this application can

also use to enter new data and change existing data

as well as provide information about purchases made

by the member to the shop owner. Provides

information to members about the delivery status of

the goods they purchased and the status of payment

via e-mail. In order for E-Business implementation

to run well, especially on the client’s side, it requires

a hosting server that has a large capacity and fast

access speed. For further development, this E-

Business system site can be added with news

facilities on the development of information and

technology so that the users and visitors can keep up

with the latest developments. Complete with

electronic payment system using a credit card or

another electronic payment system like PayPal.

Provide several languages option to provide

convenience to customers who are foreigners, and

domiciled in Indonesia to place orders or make a

transaction.

Communication errors often occur, because there

is no direct meeting between the seller and the buyer

so that both parties disagree. This is also due to the

existence of irresponsible people, they steal

information, data and even financial such as

claiming to have transferred money by providing a

photographic proof of the amount of money that has

been transferred, but in fact the photo has been

edited in such a way that business people suffered

losses because they have sent products that have

been bought by consumers with fictitious proof of

payment. Higher impact, businesses lose the

opportunity and lose the trust of consumers.

Mistakes in communication often occur in the

beginner of e-business. Lack of knowledge about the

online business ultimately harm both parties. To

avoid theft of information, data, and finance,

applications must be given validation and access

rights for users. If there will be a big and prolonged

business, the meeting should be arranged so that a

business agreement occurs.

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The Application of E-Business Systems to Support Marketing Strategies: Case Study on Eel Marketing