Analysis of Online Marketing Strategy Formulation in Rananta Store

Batam

Yulinda Tarigan

, Ardella Shafira

, Morgan Kindler

Applied Business Administration, Politeknik Negeri Batam, Jl. Ahmad Yani Batam Centre 29461, Indonesia

Business Innovation University of St. Gallen (HSG), St. Gallen, Switzerland

Keywords: Online Marketing, SWOT Analysis, IFAS, EFAS

Abstract: This study aims to find out how the online marketing strategy at Rananta Store Batam is based on a SWOT

analysis. The method used in this research is qualitative method. Data is collected using the interview method.

The subjects in this study were 1 online shop owner and 1 advertiser. Data analysis using SWOT analysis is

used to find internal and external factors of the company. A qualitative assessment was carried out to assess

the dominant factors of Rananta Store supported by weighting the results of interviews with informants. The

results of this study based on the SWOT analysis showed that the IFAS matrix showed strength and weakness

factors having a total score of 3.29. This shows that Rananta Store's b usiness is in a strong internal position.

Furthermore, the EFAS matrix shows that the opportunity and threat factor has a total score of 3.14. This

shows that Rananta Store can respond to opportunities that exist by avoiding threats that are in the same

business. From the results of this study, Rananta Store is expected to bring up new innovations in the company

in order to remain competitive and have an appeal for consumers by following the development of current

trends.

1 INTRODUCTION

The existence of the internet has eliminated the

limitations of distance and time to obtain information.

The data from Ministry of Communication and

Information (2019) explain that internet users in

Indonesia currently have reached 82 million people,

and thus Indonesia has been ranked 8th in the world.

The development of times and internet

technology, according to Kurniawati & Arifin (2015),

has influenced the development of the Indonesian

economy. Various buying and selling transactions are

now easier because they are done via the internet.

Nowadays, the internet can be said to be an

inseparable part of daily life, making the internet an

attractive promotional tool for online stores.

Online shop are increasingly in demand by

Indonesian people from various baackgrounds of life

with various benefits such as lower prices, free

shipping, a calm atmosphere, more time saving, and

of course also comfortable. Online shop marketing

is done to attract many consumers.

E-marketing is the marketing side of e- commerce

that consists of the work of companies to promote,

communicate, and sell goods and services through

internet assistance (Kotler, 2004). Online marketing

is an important media carried out by online stores to

build and maintain interactions with consumers.

Online marketing is able to influence consumers'

decisions on goods or services that will be received

later. To influence and attract consumers, a strategy is

needed to create a marketing that is attractive and has

quality in its message. Online shops use images and

short- duration videos as content in their marketing,

according to Eru, Celik, & Cop (2017).

Rananta Store is an online store that sells a variety

of women's fashion such as handbags, wallets,

watches, and shoes located in Batam. In marketing its

products, Rananta Store relies on paid advertisements

provided by Facebook.

Rananta Store's current marketing strategy

through social media is still less attractive in terms

of content, promotions, video advertisements, and

others. Rananta Store must carry out new strategies

in online marketing, especially on social media in

order to reach customers and be superior to other

competitors.

Tarigan, Y., Shaﬁra, A. and Kindler, M.

Analysis of Online Marketing Strategy Formulation in Rananta Store Batam.

DOI: 10.5220/0010354802770281

In Proceedings of the 2nd International Conference on Applied Economics and Social Science (ICAESS 2020) - Shaping a Better Future Through Sustainable Technology, pages 277-281

ISBN: 978-989-758-517-3

277

The above problems cause researchers to conduct

a SWOT Analysis that will later be useful as a

recommendation in planning online marketing

strategies for Rananta Store Batam.

Marketing strategies must read the state of a

market, so researchers are interested that an online

shop business at Rananta Store needs to apply a

SWOT analysis. SWOT analysis, according to

Rangkuti (2009), is an analysis of the strengths,

weaknesses, opportunities, and threats owned and

faced by the company.

This analysis will help companies run their

marketing effectively and efficiently. This will help

the company find the best way to determine strategies

to avoid threats from competitors in the same field.

Therefore researchers conducted this study with the

title "Analysis of Online Marketing Strategy

Formulation at Rananta Store Batam".

2 METHOD

This research uses a qualitative descriptive approach

using direct interview methods with the subject or

resource person. Subjects or resource persons in this

study are owners of Rananta Store who know in detail

about the activities that occur both inside and

outside, as well as advertisers who do marketing at

Rananta Store.

The interview in this study was used to determine

the position of Rananta Store in the right SWOT

Analysis matrix quadrant so that online marketing

strategies for Rananta store can be prepared.

3 RESULT AND DISCUSSION

3.1 SWOT Analysis at Rananta Store

SWOT analysis is a tool used to identify or evaluate

internal and external factors of the company. The

company's internal factors consist of strengths and

weaknesses of the company. Meanwhile, the

company's external factors consist of opportunities

and threats of the company. After internal and

external analysis, the results of strengths, weaknesses,

opportunities, and threats are identified based on the

results of the interview. As in the following table:

Table 1.1: Swot Analysis

3.2 IFAS Matrix

After the internal strategic factors of a company are

identified, an IFAS table is compiled to formulate

these internal strategic factors within the framework

of the company's strengths and weaknesses.

Table 1.2: IFAS Matrix

After the internal strategic factors of a company

are identified, an IFAS table is compiled to formulate

these internal strategic factors within the framework

of the company's strengths and weaknesses.

ICAESS 2020 - The International Conference on Applied Economics and Social Science

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3.3 EFAS Matrix

Table 1.3: EFAS Matrix

From the results of the analysis in the EFAS

table, the opportunity and threat factor have a total

score of 3.14. This total score indicates that the

company responds to the opportunities that exist and

avoids threats in the industrial market.

3.4 Discussion of Research Results

Ferrel and Harline (2005) state that the function of

the SWOT Analysis is to obtain information from

situation analysis and separate it from internal issues

(strengths and weaknesses) and external issues

(opportunities and threats).

Using the analysis of internal and external

factors as already explained, it can be seen that four

strategies are summarized in the SWOT matrix that

can be used as a consideration for the company to be

applied. These strategies are strength opportunities

(SO), strength threat (ST), weakness opportunities

(WO), and weakness threats (WT) strategies. Based

on the information in the SWOT matrix table, it is

known that the right strategies to be implemented by

Rananta Store Batam are follows:

a) Strength opportunities (SO) strategy

As stated by Rangkuti (2009), SO Strategy is a

strategy that uses the strength of the company to take

advantage and seize the maximum opportunity. In

this case, Rananta Store is trying to use its strength

to take advantage of its opportunities. Strategy

recommendations that can be considered to be

applied by Rananta Store include the followings:

1. Maintain the quality of goods and Quality Control

of goods to be sent as well as prioritizing good

service.

2. Improve the appearance of stores in the

marketplace to be attractive and try advertising

with a small budget so that when consumers are

looking for a product, our store is in the shopee's

recommendation display.

3. Conduct marketing by following trends and

studying contents on social media such as give

away, quizzes, tips and tricks, and others that are

currently the main key in marketing.

4. Give special promos on major holidays and

unique dates to attract the attention of consumers

without using an advertising budget.

b) Strength Threat Strategy

1. Maintaining the best possible quality of the

product, even with a higher price than

competitors. Therefore, no one will be

disappointed with the quality.

2. Attend seminars on content creators or adding

resources that understand the position.

3. Establish relationships as best as possible with

the expedition as a regular customer or member

so that there are special offers as members of the

expedition

4. Educate consumers on the application of taxes by

the government and customs by providing

information about the governing law and articles

on the official customs website.

c) Weakness Opportunity Strategy

1. Conduct regular customer service meetings to

discuss obstacles in dealing with consumers, in

order to find out the cause of changing customer

service moods and find solutions together.

2. Maintain consumer confidence and comfort so

that later there will be no negative comments

from the marketplace or social media.

3. Study interesting content currently on the

Instagram market by looking at and evaluating

techniques from competitors that can be seen

from the Instagram content.

4. Conduct marketing with endorsement services if

needed.

Analysis of Online Marketing Strategy Formulation in Rananta Store Batam

279

d) Threat Weakness Strategy

Rangkuti (2009) states that this strategy is based on

defensive activities and tries to minimize existing

weaknesses and avoid threats.

1. Give special attention to social media to provide

better content so that it gets the attention of its

users and brings new followers without relying

on advertisements.

2. Provide information about tax assessments on

social media and educate consumers personally.

After combining the strengths and opportunities

or SO strategies, the strength factor must be

maintained in order to be able to take the

opportunities that are obtained.

Coupling the ST strategy shows that the company

must maximize its power to overcome the existing

threats. WO strategy, utilizing existing opportunities

by minimizing the company's weaknesses, as well as

WT strategies that require companies to be able to

minimize weaknesses and avoid threats.

4 CONCLUSION

Based on the research results that have been

described, it can be concluded as follows:

1. Strength factor analysis is products sold are

quality imported products that can import goods

directly from China, conducting Quality Control

of goods, having an offline store, and having a

website, marketplace, and also social media.

Analysis of Weakness factors include that lack

of understanding of content, negative comments

that influence other consumers to buy, no

branches for offline stores, slow response

customer service, and requiring a lot of

followers and customer reviews both in the

marketplace and social media.

2. Opportunity factor analysis found which is to

become a star seller on Shopee, get a lot of

followers on Instagram, follow trends in social

media, provide promotions and improve the

quality of the store. Threat factor analysis are

the price offered by competitors that is cheaper,

the content presented by competitors that is

more attractive, the increase in the price of

shipping goods from the expedition, the lack of

innovation in creating content, and the

application of taxes from the government.

3. Strategies that can be used by Rananta Store

based on the SWOT matrix are marketing by

following trends in social media such as making

content as creative as possible, improving the

appearance of stores in the marketplace to be

attractive and trying to make ads with a small

budget so that the store is in the top search,

establishing the best possible relationship with

the expedition, educating consumers on the

application of taxes by the government, holding

regular meetings specifically customer service,

and maintaining consumer confidence by

maintaining the quality of goods.

5 SUGGESTION

Based on the conclusions above, the researchers

submit the following suggestions:

1. Rananta Store must improve online marketing by

following the current trends in social media such

as creating interesting content and being able to

add quality resources and experts in the field of

social media and can attending seminars that

discuss marketing on social media.

2. Rananta Store is expected to bring up new

innovations in the company in order to remain

competitive and have an attract for consumers.

3. Rananta Store can embrace influencers to

promote its products as well as advertisements

that can be reproduced on various other

marketplace platforms and can immediately

open an off-line store.

4. Establish the best possible relationship with the

expedition so that there are permanent customer

or member facilities provided.

ACKNOWLEDGEMENTS

Praise and gratitude to Allah SWT for all his pleasure

so that the authors can finish this thesis with the title

"Analysis Of Online Marketing Strategy Formulation

in Rananta Store Batam". The author also thanked all

the parties who helped in drafting the writing of this

thesis. Thanks to Ms. Yulinda, SE., M.Sc., M.BA as

a lecturer for the criticism, advice, motivation, and

also time for the writers so that they can complete this

thesis, to all Lecturer majoring in Applied Business

Administration that has provided a lot of useful

knowledge from the beginning to the end of the

semester to the author, to my family who always

pray and support, and also my lovely friends in class

AB night.

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280

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