Spare Parts Marketing Development Strategy Using SWOT and BMC Approaches: A Case Study on PT. Persada Utama Diesel

Prasetyo Wicaksono1, Eva Ervani2

Universitas Padjadjaran, Indonesia

prawikoyo@gmail.com1, eva.ervani@unpad.ac.id2

 

Keywords​

Abstract

Marketing strategy, SWOT, Business Model Canvas, Spare parts, Logistics

This study aims to develop a spare parts marketing strategy using SWOT and Business Model Canvas (BMC) approaches at PT Persada Utama Diesel. Globalization has encouraged economic growth in various sectors, including exports and imports. However, international business activities also have risks that must be managed properly. Effective risk management can increase investor confidence, maintain company reputation, and ensure long-term business sustainability. This research uses a qualitative approach with a case study on PT Persada Utama Diesel. Data were collected through interviews, observations, and documentation studies. SWOT analysis and Business Model Canvas (BMC) were used to develop a spare parts marketing strategy. The results of the SWOT analysis identify the strengths, weaknesses, opportunities, and threats facing the company. Based on the BMC analysis, the company's current business model was also evaluated and developed. The recommended spare parts marketing strategy includes improving operational efficiency, developing a global distribution network, and strengthening strategic partnerships. The application of SWOT and BMC approaches is effective in developing a spare parts marketing strategy that can help PT Persada Utama Diesel in facing challenges and capitalizing on opportunities in an increasingly competitive international market.

Corresponding Author : Prasetyo Wicaksono

E-mail: prawikoyo@gmail.com

 

 

INTRODUCTION

With the advancement of globalization in Indonesia, economic growth is accelerating in various sectors, including exports and imports. This sector plays a crucial role in driving economic growth, as it gives companies the opportunity to enter the global market and increase trade activities. Factors that drive economic growth in the international context include the lack of disruptions and barriers to sales transactions, such as ease of customs clearance and the existence of free trade agreements between countries (Chow & Schoenbaum, 2020). In addition, the number of foreign competitors also encourages companies to continue to innovate and improve operational efficiency to remain competitive in the global market. This, of course, can spur companies to expand internationally to increase sales, by opening branches abroad, building global distribution networks, and establishing strategic partnerships with foreign companies. Thus, international expansion not only provides opportunities to increase revenue, but also helps companies strengthen their position in an increasingly competitive global market (Kotabe & Kothari, 2016).

Business activities are always accompanied by various risks that companies must face. These risks can include market fluctuations, regulatory changes, operational disruptions, and financial risks. While these risks can pose challenges, companies that are able to identify, manage and respond to risks well will have a greater chance of surviving and growing (Lam, 2014). Effective risk management can also increase investor confidence, maintain a company's reputation, and ensure long-term business sustainability. Therefore, a deep understanding of business risks and their mitigation strategies is a key element in running successful business activities.

Therefore, in international business activities, in addition to the positive benefits that can increase the growth and profitability of the company, there are also business risks that need to be predicted and managed carefully (Suprapto, Hartono, Jennifer, Liu, & Nicholas, 2023) . To manage these risks, companies need to adopt a proactive approach that includes risk identification, evaluation and mitigation. One way is to implement an effective risk management strategy for its business. By doing so, companies can minimize potential losses and maximize growth opportunities in competitive international markets.

On the news page written by Dony Lesmana (2024) in March of the same year, Jawa Pos revealed that one of the sales of spare parts for the Mitsubishi brand reached up to 1.44 trillion rupiah, which increased by almost 17% from 2022. From this data, it can be concluded that the increased need for spare parts for logistics is needed for logistics service providers and heavy equipment, because as stated by Aji Jaya, Director of Sales and Marketing of PT Krama Yudha Tiga Berlian Motors (KTB), quoted from Mobilitas.id, written by Arif Arianto (2024) revealed:

"Because the logistics sector is very concerned about supporting the public consumption sector. So spare parts are items that businesses need to maintain the continuity of the condition of their trucks as a support for business operations" (Arif & Anggraeni, 2023) .

This is what makes the spare parts business for logistics very necessary because logistics turnover in Indonesia is very large, so the need for spare parts also continues to exist even in the Covid-19 conditions which impose a lockdown on all areas in Indonesia.

Quoted from the VIVA news written by Herawati (2023) entitled "Online Automotive Equipment Sales in Indonesia Continue to Increase" revealed that sales of spare parts through the marketplace in Indonesia have continued to increase by almost 300% in the last three years since 2023 (Herawati, 2023) . This shows that automotive products have a great opportunity for business actors to use the marketplace as a step to encourage economic growth for the company itself.

In terms of competitiveness in the export market, the automotive spare parts industry has its own advantages in the international market. This is supported by the development of the automotive industry in Indonesia (Khalidazzia, 2024) . This is also influenced by the trend of automotive spare parts exports to several countries. This was stated by the Indonesian Automotive Components magazine published by ITPC (Indonesia Automotive Components) which stated that, from 2013 to 2018, Indonesia had sent automotive products such as motorbikes, cars and various related components to various countries. The average export volume during this period exceeded 1.2 million units per year, to meet market demand for replacement parts (REM) and also the needs of the OEM market.

Figure 1 Number of Imported Spare Parts and Equipment

for Transportation Equipment in Thousand Tons

Source: Central Statistics Agency

Import data for spare parts and equipment for transport equipment in thousand tonnes from 1996 to 2023 shows a significant upward trend. In the early period of 1996-2000, imports were relatively low, ranging from 144.3 to 399.8 thousand tonnes. However, from 2001 to 2010, there was a steady increase with some fluctuations, reaching a peak of 852.9 thousand tonnes in 2009. This upward trend continued more sharply in the 2011-2023 period, where the amount of imports increased from 475 thousand tonnes to the highest peak of 1338.9 thousand tonnes in 2023.

Figure 2 Total Value of Imports (CIF) of Parts and

Equipment for Transport Equipment in millions of dollars

Source: Central Bureau of Statistics

Overall, despite some fluctuations, the data reflects a consistent increase in imports of parts and supplies for transport equipment. This increase may be due to the growth of the automotive and transport industries that require more parts and equipment for maintenance and repair. The highest peak occurring in 2023 indicates a significant increase in demand in recent years.

PT Persada Utama Diesel was established in 2000 in Jakarta, Indonesia, and has since become closely associated with the supply of spare parts for various types of trucks from Europe and Japan, as well as tanker and trailer engines such as Volvo, Scania, Hino, Nissan, Isuzu, and Mitsubishi. In addition, the company has expanded its services to provide a range of spare parts for maritime equipment, as well as high-quality spare parts for the latest technologies required by organizations and companies in the logistics or transport services sector. Although the company's main focus is on the supply of spare parts, it also offers a full range of services including repair and maintenance for electrical equipment and machinery.

In practice, PT Persada Utama Diesel prioritizes its business in the spare parts supply sector for heavy equipment and trucks. The replaced spare parts have various ages. It should be noted that the spare parts provided by this company must be guaranteed in order to maintain the stability of logistics activities in Indonesia. The activity of obtaining information from various business actors is very important in running company operations (Delvika, 2016). Therefore, PT Persada Utama Diesel must have access to this information as well as possible.

Figure 3 Fifth Wheel in Goods Delivery

Source: Researcher documentation

PT. Persada Utama Diesel is a company engaged in the distribution and sale of vehicle spare parts, especially those related to diesel engines. Apart from providing spare parts needs for logistics companies, PT. Persada Utama Diesel also offers a variety of superior services to ensure customer satisfaction and operational efficiency. According to Sri Ningsih (2024), as the wife of the late Main Director of PT. Persada Utama Diesel, Late. Mr. Darsono, said that in 2007 – 2015 PT. Persada Utama Diesel has the ability to import spare parts directly from abroad, which has been done consistently for approximately ten years. This shows the empowerment of PT. PUD to import these goods uses the company's strengths and becomes the sole importer and distributor in Jakarta for the Volvo aftermarket brand, namely Diesel Technic.

Based on the background above, research was obtained with the title "Spare Parts Marketing Development Strategy Using the SWOT and BMC Approach: Case Study at PT. Persada Utama Diesel” which is expected to increase competitiveness in domestic and global markets. Objective of this research is to find out the strategy for developing the truck spare parts business at PT. Persada Utama Diesel using the SWOT method in the automotive industry, as well as to develop marketing of truck spare parts at PT. Persada Utama Diesel using the BMC analysis approach in the automotive industry.

It is hoped that this research can provide a useful contribution to the development of knowledge and practical needs for several parties. For the author, preparing this final assignment report provides an opportunity to explore the research topic thoroughly, increase understanding, deepen insight, and develop the necessary analytical skills. For readers, this research provides insight into the commodity trading process to better understand the problems faced by business people. For companies, the results of this research can be used as a solution for business strategy, especially in providing services and spare parts, and can be used as consideration in making further decisions.

 

RESEARCH METHODS

Location and Time of Research

The research was conducted at the PT Persada Utama Diesel office located at Jalan Gunung Sahari XI No. 12 RT 18/03 Gunung Sahari Utara, Sawah Besar, Central Jakarta 10720. Data collection was conducted through direct interaction with internal parties involved in the process of shipping goods from Jakarta to Cilegon for foreign companies by land, through interviews, discussions, and observations. This research was conducted in July - August.

Type of Research

In this study, researchers used descriptive qualitative methods because descriptive qualitative research allows researchers to understand the context of the phenomenon under study more deeply. This approach allows for a broader and more detailed exploration of the research subject. Therefore, this study utilizes descriptive qualitative methods to describe facts, identify symptoms thoroughly in the aspects under investigation, and expand existing theories to generate new hypotheses. Therefore, the findings of this research can be conveyed to all parties involved.

Data Collection Techniques

In this study, researchers collected data into two parts, namely primary and secondary data. The data is qualitative and becomes the main core of this research and will then be processed using the SWOT and BMC methods. Meanwhile, quantitative secondary data is used to support and strengthen the results of the qualitative data analysis. The combination of these two types of data is expected to provide a comprehensive picture related to the object under study in this research. The data collection techniques used was interviews and observations. Through interviews, researchers collected data on the procurement process, the company's efforts in running its operations, and negotiation strategies with customers and potential customers. Meanwhile, observation was carried out by direct observation in the company environment, which aims to collect factual and objective data related to work dynamics, employee behavior, operational processes, and environmental factors that affect company activities. The combination of interviews and observations is expected to provide valid and reliable data to support the analysis in this study.

Data Analysis Techniques

In this research, the data analysis technique uses a qualitative approach. Qualitative data is presented in the form of descriptive analysis with the aim of providing an overview of the characteristics of the visual design to be produced. The method used in this research is Business Model Canvas (BMC) with nine blocks that have been compiled, as well as four SWOT elements, which will produce a strategy that is concluded from both approaches.

 

RESULTS AND DISCUSSION

SWOT Analysis

In determining the right strategy for developing marketing, it is important to apply a SWOT analysis approach (Phadermrod, Crowder, & Wills, 2019). This approach includes identifying strengths, weaknesses, opportunities and threats related to all marketing activities of PT. Persada Utama Diesel, both at the head office and outside the area. Through SWOT analysis, companies can identify and understand internal and external factors that influence marketing activities (Namugenyi, Nimmagadda, & Reiners, 2019). This analysis provides insight into the strengths and weaknesses that exist within the organization, as well as opportunities and threats from the external environment. With the information obtained, PT. Persada Utama Diesel can formulate a more effective marketing strategy. This strategy will be adjusted to market conditions and company capabilities. In this way, the company can maximize its potential. This contributes to improving marketing performance and achieving expected business goals.

Table 1 SWOT Analysis Table

Strengths (Strength)

Weaknesses

1.     Old customers who are loyal to the company

2.    Have a permanent supplier

3.    Have regular customers

4.    Competitive product prices

5.    Connectivity with mechanics

6.    The company has been around for a long time

7.     Quick response service

1.     The company's location is less strategic

2.     Suppliers who are not contractual (so they do not have price and stock stability)

3.     Promotions are not carried out optimally

4.     Does not have a dedicated marketing team

5.     Companies do not have access to stable sources of capital

6.     Minimal product knowledge

Opportunities

Threats

1.      Products are very much needed in the logistics industry

2.      The market is still wide open nationally

3.      The world of logistics is developing rapidly

4.      Utilization of international automotive exhibition events

1.        Unhealthy business competition

2.       Competitor development of promotions and markets

3.       Many similar companies

4.       Consumer purchasing power decreases

5.       An unstable dollar

6.       Economic disruption (changes in customer behavior

Source: Data processed by the author

IFAS (Internal Factor Analysis Summary) and EFAS (External Factor Analysis Summary) matrices

After carrying out a SWOT analysis approach, these points are the company's strengths and weaknesses as seen from internal and external factors, then an Internal Factor Analysis Summary (IFAS) and External Factor Analysis Summary (EFAS) plan is made which aims to determine the weight, rating, and score (Bastian & Shallyana, 2021). The weight determination must not exceed or be less than the sum of all IFAS or EFAS elements by 1.00. Each of these factors is given a rating scale starting from 1 point (very poor) to 4 points (very good) (Dhari, 2020). The weights and ratings are calculated based on information obtained from interviews with several employees of related companies and business colleagues who have businesses in the same field. The following is a table of weighting score calculation results for IFAS and EFAS.

 

 

Table 2 IFAS Table

No

Strengths (S)

Weight

Ratings

Score Value

1

Old customers who are loyal to the company

0.09

2

0.18

2

Have a permanent supplier

0.08

2

0.16

3

Ease of transaction for me

go through regular payments

0.06

3

0.18

4

Competitive product prices

0.12

4

0.48

5

Connectivity with mechanics

0.08

3

0.24

6

Established since 2000

0.09

3

0.27

7

Quick response service

0.05

2

0.1

Sub Total (S)

0.57

 

1.61

No

Weaknesses (W)

Weight

Ratings

Score Value

1

The company's location is less strategic

0.02

2

0.02

2

Non-contractual suppliers

0.02

2

0.04

3

Promotions are not carried out optimally

0.07

3

0.21

4

Does not have a dedicated marketing team

0.15

3

0.45

5

Companies do not have access to stable sources of capital

0.18

3

0.54

6

Minimal knowledge of product knowledge

0.1

2

0.2

Sub Total (W)

0.43

 

1.46

Total Internal Factors (IFAS)

1.00

 

3.07

Source: data processed by the author

The company has several significant internal strengths according to the IFAS matrix. First, success in retaining loyal old customers shows that an effective customer retention strategy has been implemented. Support from suppliers continues to provide stability in the supply of raw materials or products, which is an important asset in maintaining production quality and reliability. The ability to offer recurring payments provides customers with flexibility in managing consumer finances, which can increase the product's appeal. In addition, competitive product prices enable companies to compete effectively in the market.

Good relationships with mechanics and strong after-sales service strengthen the brand's reputation in the market. The company's long experience since 2000 reflects its stability and ability to adapt to changes in the business environment (González, 2015). Responsive service also provides significant added value, helping to increase customer satisfaction and differentiate the company from competitors. Overall, these strengths provide a solid foundation for companies to maintain and improve their position in the competitive market.

Table 3 EFAS Table

No

Opportunities (O)

Weight

Ratings

Score Value

1

Products are very much needed in the logistics industry

0.1

3

0.3

2

The market is still wide open nationally and internationally

0.15

2

0.3

3

Utilization of international automotive exhibition events

0.2

3

0.6

4

The world of logistics is developing rapidly

0.1

2

0.2

Sub Total (S)

0.55

 

1.4

No

Threats (T)

Weight

Ratings

Score Value

1

Unhealthy business competition

0.1

3

0.3

2

Competitor development of promotions and markets

0.05

2

0.1

3

Many similar companies continue to improve and develop

0.07

2

0.14

4

Consumer purchasing power decreases

0.05

3

0.15

5

An unstable dollar

0.08

3

0.24

6

Economic disruption (change in customer behavior )

0.09

3

0.27

Sub Total (T)

0.45

 

1.2

Total External Factors (EFAS)

1.00

 

2.6

Source: data processed by the author

With a total score of 2.6, the EFAS matrix shows that the company is under the influence of more opportunities than threats, but needs to consider strategies to deal with the risks that exist in the external environment. By exploiting existing opportunities and managing threats well, companies can strengthen their competitive position in the market.

Based on EFAS analysis, the company has great potential to take advantage of opportunities that exist in the external environment. Opportunities include the high demand for products in the logistics industry, markets that are still open at both national and international levels, as well as the benefits of participating in international automotive exhibition events to increase visibility and networking. Additionally, the rapid growth in the logistics industry provides opportunities for further expansion in keeping with the rapidly evolving market trends.

However, companies are also faced with several threats that need to be addressed. Threats include unhealthy competition in the market, intensification of competitors in promotion and market penetration, as well as the impact of unstable currency exchange rate fluctuations. The trend of decreasing consumer purchasing power and the potential for economic disruption are also threat factors that need to be considered. By considering the balance between exploiting opportunities and managing threats, companies can optimize their strategies to increase sustainable growth and maintain competitiveness in the global market.

Internal – External Matrix (IE)

The internal-external matrix aims to find more effective strategies. The IE Matrix uses the total score from the Internal Factor Evaluation Matrix (IFE) on the X axis and the total score from the External Factor Evaluation Matrix (EFE) on the Y axis. Companies or an organization in cells me, II, or IV should adopt a growth and development strategy. For divisions in cells III, V, and VII, a more appropriate strategy is to defend and maintain. Meanwhile, divisions in cells VI, VIII, or IX should use a harvest or divestment strategy.

Figure 2 Internal – External Matrix

Source: data processed by the author

The analysis results from the IFAS matrix show a value of 3.07, while the EFAS matrix produces a value of 2.65. The meeting point of these two matrices shows that the most appropriate strategy is in quadrant IV, namely the growth and development strategy. Based on the IE matrix image above, it can be seen that PT. Persada Utama Diesel is located in cell IV, which indicates that the company is more suitable for implementing development strategies in the marketing division.

SWOT Quadrant

The SWOT analysis quadrant is divided into four main parts, where each part has a different strategy (Keban, Arifin, & Wahyono, 2019). The first quadrant focuses on profitable aspects by exploiting opportunities and strengths, so that it can encourage the growth of the related industry. The second quadrant uses diversification strategies to face threats. In the third quadrant, the industry has the opportunity to expand the market but is hampered by internal weaknesses; The strategy that can be applied is a reversal strategy. The fourth quadrant describes a situation where the industry faces various very detrimental threats.

 

The results of the IFAS matrix analysis show a total score for strengths of 1.61 and for weaknesses of 1.46, with a difference of 0.15. On the other hand, the EFAS matrix analysis recorded a total score for opportunities of 1.40 and for threats of 1.20, with a difference of 0.20. The internal factor scores are indicated on the X-axis, while the external factor scores are located on the Y-axis. Thus, this analysis provides a clear picture of the organization's position.

Figure 3 SWOT Quadrants

Based on the picture above, the position of PT. Persada Utama Diesel in the SWOT analysis is located in Quadrant I with coordinate points (0.15, 0.20). Quadrant I offer advantages because companies can take advantage of existing strengths and opportunities, so they can implement SO strategies. This allows companies to develop more effective strategies and improve overall performance. By combining positive internal and external factors, organizations can strengthen their position in the market and achieve business goals more efficiently.

SWOT Matrix Analysis

Table 4 SWOT Matrix analysis table

SWOT Matrix

Strengths (S)

Weaknesses (W)

1.     Old customers who are loyal to the company

2.    Have a permanent supplier

3.    Has ease of transactions through periodic payments

4.    Competitive product prices

5.    Connectivity with mechanics

6.    It has been established since a decade ago

7.     Quick response service

1.     The company's location is less strategic

2.    Non-contractual suppliers

3.    Promotions are not carried out optimally

4.    Does not have a dedicated marketing team

5.    Companies do not have access to stable sources of capital

6.    Minimal knowledge of product knowledge

Opportunities (O)

Strategy (SO)

Strategy (WO)

1.     Products are very much needed in the logistics industry

2.    The market is still wide open nationally

3.    Utilization of international automotive exhibition events held periodically

4.    The world of logistics is developing rapidly

1.     Expanding market share by utilizing economies of scale to offer competitive prices

2.    Utilizing the name of a company that has been around for a long time by offering products to potential consumers (hard selling)

3.    Develop aggressive online marketing campaigns and special offers to increase e-commerce sales.

4.    Utilize a wide distribution network to increase sales.

1.    Actively participate in international automotive exhibitions to increase company visibility

2.    Take advantage of the large market potential by negotiating long-term contracts with suppliers

3.    Increase promotional activities by focusing on platforms frequently used in the logistics industry, such as social media, websites and advertisements in industry magazines

4.    Establish a marketing team focused on the logistics industry, with members who have in-depth knowledge of market needs and trends in the spare parts logistics industry.

5.    Use capital efficiently with low-cost but effective marketing strategies

6.    Increase employee literacy by participating in automotive and industrial exhibitions to increase insight and knowledge about products.

Threats (T)

Strategy (ST)

Strategy (WT)

1.     Unhealthy business competition

2.    Competitor development of promotions and markets

3.    Many similar companies continue to improve and develop

4.    Consumer purchasing power decreases

5.    An unstable dollar

6.    Economic disruption (change in customer behavior)

1.      Offer loyalty programs and special discounts for existing customers.

2.     Establish closer relationships and long-term agreements with permanent suppliers

3.     Expanding recurring payment options and offering more flexibility in payments to help customers better manage their finances.

4.     Strengthen relationships with mechanics through training, incentives and special collaboration programs

5.     Using a decade of reputation and experience to emphasize product quality and reliability in marketing campaigns, and highlight differences with new competitors.

1.     Increase operational efficiency by adopting digital technology and good management systems.

2.    Diversify distributors and suppliers to reduce dependency and use a contract system with several suppliers.

3.    Increase promotional efforts through focused and cost-effective digital marketing strategies to reach consumers.

4.    Increase the effectiveness of supply chain management by means of internal and external integration and collaboration

5.    Establish a dedicated marketing team that focuses on market analysis and developing effective promotional strategies

 

Source: Data processed by the author

Based on the analysis results from the matrix table above, it can be described as an alternative strategy that will be used to develop marketing strategies carried out by PT. Persada Utama Diesel in developing its business. The following are strategies that can be used to develop a marketing strategy:

1.       SO Strategy (Strengths-Opportunities)

SO strategy that can be used at PT. Persada Utama Diesel is as follows:

a         Expanding market share by utilizing economies of scale to offer competitive prices. Increasing the market can be done by utilizing more sophisticated and efficient technology. This technology can be used according to consumer needs.

b        Utilizing integrity by offering products to potential consumers. With the reputation of the Persada Utama Diesel trademark – founded in 2000 – PT. PUD has a fairly strong reputation compared to new players in the logistics spare parts industry. This reputation must be utilized as best as possible and must be in accordance with current market trends.

c         Develop aggressive online marketing campaigns and special offers to increase e-commerce sales. To develop aggressive online marketing campaigns and special offers to increase e-commerce sales, companies can utilize various digital channels effectively. The strategy includes using paid advertising such as Google Ads and social media (Facebook, Instagram, and TikTok) to reach a wider and specific audience. SEO optimization and quality content on websites and blogs can increase organic visibility. Special offers such as limited-time discounts, bundle deals, and loyalty programs can attract customers. Using email marketing and push notifications to inform customers about the latest promotions and personalizing offers based on shopping behavior is also very effective. Data analysis and regular A/B testing are necessary to measure campaign effectiveness and make necessary adjustments.

d        Utilize a wide distribution network to increase sales. To take advantage of a wide distribution network to increase sales, companies can strengthen relationships with distributors and retailers by providing incentives, product training and marketing support. This strategy includes expanding geographic reach by adding more distribution points, increasing product availability in different regions, and ensuring sufficient stock in each location. Using data analytics to identify areas with high growth potential and targeting marketing efforts in those areas is also important. Additionally, integrating technology to monitor and manage inventory and optimize logistics will ensure efficiency and rapid response to market demand.

2.      ST Strategy (Strengths-Threats)

ST strategy that can be used at PT. Persada Utama Diesel is as follows:

a.       Offer loyalty programs and special discounts to existing customers to maintain their loyalty and prevent them from switching to competitors. Attractive loyalty programs, such as reward points that can be exchanged for products or discounts, exclusive early access to new products, and special offers only for members, provide added value for loyal customers. Special discounts and personalized offers based on purchase history also make customers feel valued and cared for. By engaging customers through regular communications, such as newsletters and mobile apps that offer updates and exclusive deals, companies can strengthen relationships and ensure customers remain loyal.

b.      Establish closer relationships and long-term agreements with permanent suppliers. With the right strategy and commitment to maintaining good relationships, companies can maximize the benefits of long-term collaboration with permanent suppliers.

c.       Expanding recurring payment options and offering more flexibility in payments to help customers better manage their finances. Offering more flexible periodic payment options helps customers manage their finances better. This includes interest-free installments or monthly payments for certain products or services, which can reduce the customer's financial burden.

d.      Strengthen relationships with mechanics through training, incentives and special collaboration programs. By knowing the items needed by the company, PT. PUD can know more about the ins and outs of the goods needed by the consumer purchasing team. This can also anticipate what spare parts can still be utilized optimally.

e.       To emphasize product quality and reliability in marketing campaigns, as well as highlight differences with new competitors.

f.        Improve the responsive service system by introducing new technology such as chatbots or customer service applications to ensure faster and more efficient responses to customer complaints and requests.

3.      WO Strategy (Weaknesses-Opportunities)

a         Actively participate in international automotive exhibitions to increase company visibility. Actively participating in international automotive exhibitions is an effective strategy to increase the company's visibility globally. Participation in the event provides an opportunity to expand your network, build relationships with key industry players, and showcase the latest products and innovations to a relevant international audience. In addition, automotive exhibitions also function as a platform to introduce company brands to a wide market, increase consumer confidence, and gain more comprehensive and in-depth insight into rapidly developing global market trends and demands in the automotive industry.

b        Take advantage of the large market potential to negotiate long-term contracts with suppliers. Take advantage of the large market potential to negotiate long-term contracts with suppliers to secure stable supplies and competitive prices over the long term. This not only strengthens relationships with suppliers but also provides operational certainty and reduces the risk of product price fluctuations.

c         Increase promotional activities by focusing on platforms frequently used in the logistics industry, such as social media, websites and advertisements in industry magazines

d        Form a marketing team focused on the logistics industry, with members who have in-depth knowledge of market needs and trends in the spare parts logistics industry. The fast-moving automotive industry market can also pose a threat to companies if not addressed quickly. This is because the product knowledge for each truck is different every year and is updated every year and must match the spare part number of the product.

e         Use capital efficiently with low-cost but effective marketing strategies. Using capital efficiently with a low-cost yet effective marketing strategy involves focusing on digital channels such as SEO, social media, and quality content to reach target markets with measurable investments. This approach allows companies to maximize the use of marketing budgets with optimal results, expanding reach without significantly increasing costs.

f          Increase employee literacy by participating in automotive and industrial exhibitions to increase insight and knowledge about products. This not only improves the quality of service to customers through deeper knowledge, but also prepares employees to interact more effectively with audiences at exhibition events, promoting products with greater confidence and trust.

4.      WT Strategy (Weaknesses-Threats)

WT strategy that can be used at PT. Persada Utama Diesel is as follows:

a         Increasing operational efficiency as an effort to optimize PT's operations, resources and workforce. PUD so that it can achieve maximum results with minimal cost, time and effort. Increasing operational efficiency can be balanced by adopting digital technology and good management. This is necessary to achieve ease of coordination within the team.

b        Diversify distributors and suppliers to reduce dependency. Distributor and supplier diversification is a strategy in which a company works with various distributors and suppliers to provide the products and raw materials needed. The main goal is to reduce the risks associated with depending on one or a few specific distributors or suppliers. By having several sources, PT. PUD can be more flexible and resilient in the face of supply disruptions, price changes, or quality problems from one of the distributors or suppliers. This diversification helps ensure operational continuity and supply chain stability. Change relationships with non-contractual suppliers to obtain long-term contracts with suppliers that can provide supply and price stability because often prices and supply do not match consumer demand.

c         Increasing promotional efforts through digital marketing focused on cost-saving companies can take several strategic steps; leveraging social media to reach a wide audience at minimal cost through engaging and interactive content, optimizing SEO to increase website visibility naturally without requiring large investments in paid advertising. Third, use email marketing to communicate directly with customers and prospects, providing special promotions and useful content. Lastly, conduct regular analysis of campaign performance using analytical tools to evaluate effective strategies and adjust approaches in real-time, thus ensuring every marketing budget is used efficiently to achieve maximum results.

d        Improving the effectiveness of supply chain management can be done with several key steps. Implementation of technology such as investment management systems and analytical tools to monitor stock in real-time, thereby reducing the risk of stock shortages or excess. Apart from that, logistics processes can be optimized by streamlining delivery routes and adopting best practices in warehouse management to increase efficiency and reduce costs. After all these steps have been carried out, data analysis can be carried out to predict demand and adjust the supply chain proactively to anticipate changes in the market and customer needs.

e      Establish a dedicated marketing team that focuses on market analysis and developing effective promotional strategies. Establishing a dedicated marketing team focused on market analysis and developing effective promotional strategies involves hiring employees with expertise in data analysis, market research, and digital marketing strategy, including market analysts, SEO experts, social media managers, and content specialists. Once the team is established, provide in-depth training on the latest analytical tools and marketing platforms to enable them to effectively collect and analyze market data, identifying trends, customer preferences and competitor positions. Based on these insights, teams can develop and execute customized promotional strategies, such as social media campaigns and paid advertising, while continuously monitoring and evaluating campaign effectiveness to make necessary adjustments, ensuring that promotions reach the right audiences and deliver maximum results in conversions and ROI.

BMC analysis

Table 5 Business Model Canvas Analysis PT. Persada Utama Diesel

Key Partners

Key Activities

Value Propositions

Customer Relationships

Customer Segments

   Business coworkers

   Strategic alliance

   Partnership

   Distributor

   Business Mentor

 

   The supply of goods

   P.O

   Invoices

   Picking up goods from suppliers

   Distribution

   Research and development

   Marketing

   Service to the place (storing )

   Competitive price

   Term payments

   Entertain customers

   Private customers

   After sales service

 

  Corporate

  Individual

Key Resources

Channels

   Human Resources

   Company-owned building assets

   Marketplaces

   Landing Pages

   Official website

   Physical store

Cost Structure

Revenue Streams

    Employee salary

    Operating costs

    Marketplace promotions

    Entertain

    Employee bonuses

    Tip

    Tax

   Direct sales

   Commission

 

Customer Segments

In Customer Segments PT. PUD divides its market segmentation into two parts, corporate and individual. Market segmentation arises as a result of consumer behavior itself. Not a few logistics service actors are individuals who operate alone without having their own team. Market segmentation by corporation or not is used to understand the characteristics, preferences and needs of each customer group so that marketing, sales and service strategies can be adjusted more effectively according to each segment.

Value Propositions

           Service to the place (storing)

Service to where the consumer is the main service value of PT. PUD in providing facilities to consumers. This was done by PT. PUD depends on consumer needs. In general, consumers will ask PT. PUD to send the required goods to the problematic truck position or what is usually called storing. Because it is not easy for all business actors to provide storing services considering the availability of goods and the mode of transportation used.

 

           Competitive prices

The price offered by PT. PUD is able to compete with other trading actors. In these value propositions, companies offering competitive prices focus on providing products or services at prices that are lower or comparable to competitors, but with significant added value.

           Term payments

Companies offering term payments focus on giving customers flexibility in making payments. This can attract customers who need or want a payment option that does not require full payment up front. At this point, not all customers get this facility.

Channels

           Through the marketplace

PT. PUD reaches out to customers to convey products in general. Marketplaces can also increase awareness of the products and services owned by PT. PUD through high visibility on platforms used such as Tokopedia and Shopee.

           Physical stores

Physical stores have advantages compared to other channels, one of which is increasing personal interaction with the company in order to build strong relationships and increase consumer loyalty. With physical stores, consumers have the experience of being able to see, touch and try products before purchasing which results in increased trust and satisfaction.

           Official Website

The official website of PT. Persada Utama Diesel goes to the page https://pudtrucks.com. This website contains general product knowledge and services offered by PT. PUD. The official website can be accessed by customers all over the world which can expand market share. The website also contains company contact information so that potential consumers can request additional information via the telephone number provided.

Figure 4 Official PT Page. Persada Utama Diesel

Customer Relationships

           Entertainment for customers

To provide entertainment to customers, companies can adopt various approaches that enhance their experience. It should be noted that there are several companies that involve the practice of "entartaining" to several collaborating companies. This strategy strengthens customer relationships while improving the brand's image as a company that cares and listens to consumer needs.

           After-sales service

After-sales service as a customer relationship refers to a series of activities and services provided to customers after they purchase a product or use a service. This aims to maintain and improve long-term relationships with customers, as well as increasing customer satisfaction and loyalty.

 

 

Revenue Streams

           Direct sales

Through direct sales, PT. PUD has reusable margin for companies to increase profits, ensure sustainability, and have the flexibility to navigate market challenges.

           Commission

Through PT commission. Persada Utama Diesel obtains additional revenue streams obtained through collaborations with external parties. This collaboration comes from a company that needs a "flag" in the form of a PT. in order to help facilitate the project having a stronger legal entity.

Key Resources

           Human resources

Key resources at PT. Persada Utama Diesel in terms of human resources (HR) includes talent and technical expertise of employees, a company culture oriented towards innovation and customer service, as well as an effective HR management system. A company culture that supports collaboration and commitment to service quality helps increase employee and customer satisfaction and loyalty.

           Company-owned building assets

Key resources at PT. Persada Utama Diesel include strategic company-owned building assets, employee talents and expertise, as well as effective management systems and processes. The combination of strong physical assets, competent human resources and efficient management is the key to PT's long-term success Persada Utama Diesel.

Key Activities

           Administrative activities of buying and selling.

This activity is used by PUD in recording sales and purchases. This activity contains; creating goods offering documents, purchase orders, and creating invoices as proof of transactions for the next stage, namely billing.

           Distribution

The beginning of distribution activities by PT. PUD is carried out by taking goods from suppliers who supply the goods. These goods are taken based on consumer needs and carried out repeatedly (Paduloh, Djatna, Sukardi, & Muslich, 2020). Distribution is carried out by PT. PUD through operational activities carried out every day. The need for logistics spare parts is provided to all segments and depends on customer demand. Distribution can be carried out via land owned by the company or through other cooperating transportation and sea agents.

           Marketing

Many marketing efforts have been carried out by PT. PUD in order to attract new customers in this spare parts sector. Many of these efforts are carried out depending on market segmentation and location of the logistics market in Indonesia (Risnawati, Sumarga, & Purwanto, 2019). Like the Kalimantan area, many individual and corporate entrepreneurs look for spare parts on marketplaces available in Indonesia, such as Tokopedia and Shopee. As for the Facebook application, many logistics service entrepreneurs look for their goods needs on Facebook, generally they offer them in buying and selling groups and Facebook's marketplace.

Key Partnerships

           Business colleagues

Business Partners who collaborate with PT. Persada Utama Diesel to achieve common business goals. This is proven by the existence of collaboration with various companies in coordinating business strategies in order to complement each other's shortcomings. These shortages often occur when a company offers goods that are quite difficult to find because the goods are rare or have an inappropriate price.

           Partnership

Relationships between companies and individuals. This has been done by PT. PUD by expanding its business to places that still have broad market potential, for example Tegal Regency and Cilegon City as one of the destinations for PT. PUD to expand its market and increase profits.

           Distributors

At distributor PT. PUD is found in collaborating parties who are given responsibility for supplying spare parts. Moreover, distributors provide facilities to PUD so that they can gain profits for retailers such as PUD, for example PUD can pay through term payments and at lower prices.

Cost Structure

In the cost structure, the costs incurred in marketing PT. Persada Utama Diesel can be categorized into fixed costs and variable costs:

a.       Fixed Costs

1.       Employee salary

2.      Marketplace Promotions

3.      Operating costs

b.      Variable Costs

1.       Commission

2.      Entertainment

3.      Bonuses

4.      Tip

 

Marketing Strategy Development

Based on the results of the SWOT (Strengths, Weaknesses, Opportunities, Threats) and BMC (Business Model Canvas) analysis that have been described, PT. Persada Utama Diesel can carry out various marketing strategies as follows:

1.            In-depth market research

Careful market research is an important stage in gaining a thorough understanding of market dynamics, competitors and consumer needs. Through this process, companies can dig deep information to identify market trends, analyze consumer behavior, and evaluate competitor strategies. Thus, market research not only serves as a tool for collecting data, but also as a foundation for making more precise and effective decisions in developing marketing and sales strategies.

2.           Improve the quality of human resources

To improve the quality of human resources (HR) in an organization, the first step is to ensure that the recruitment process is carried out selectively and carefully. Selecting candidates who not only have the appropriate skills and experience, but also company cultural values that are in line with the vision and mission, will form a strong foundation. Furthermore, it is important to provide ongoing training and development to employees. Training programs can include technical, managerial, or leadership development learning, which helps improve employee competency and quality in the long term.

Apart from that, the implementation of mentoring and coaching is also crucial in strengthening the quality of human resources. This program not only helps new or emerging employees within an organization learn and develop more quickly, but also builds valuable relationships between mentors and mentees. A company culture that supports growth and learning also needs to be built, by encouraging employees to take healthy risks and learn from their experiences. A balance between recognition of employee achievements and fair rewards is also an important factor in motivating and retaining high-quality human resources.

Lastly, open and transparent communication between management and employees is key to building high levels of trust and engagement. By providing constructive and clear feedback, and ensuring that employees feel valued and recognized for their contributions, organizations can create a work environment that allows employees to grow and develop optimally. Regular evaluation of HR development strategies is also important to adapt and improve the approach that has been taken in accordance with changing needs. By combining these steps, organizations can significantly improve the quality of their HR and achieve better overall performance.

 

 

3.           Analyze and measure Company performance

Analyzing and measuring company performance is a critical process for understanding the extent to which an organization achieves its business goals and strategies. The main goal is to provide comprehensive and in-depth insight into the company's overall performance as well as identify areas that require improvement or adjustments.

Company performance analysis involves assessing data that has been collected to evaluate achievements based on various metrics. This process includes comparison with previously established targets or standards. In addition, this analysis also identifies long-term and short-term trends, as well as factors that influence company performance results.

Corporate performance analysis involves measuring and evaluating various aspects of business operations to assess how well a company is achieving its strategic goals. Key Performance Indicators (KPI) such as net profit, profit margin, revenue growth, and Return on Investment (ROI) are often used to provide a quantitative picture of a company's performance. By measuring these KPIs regularly, companies can identify trends, measure operational efficiency, and identify areas that need improvement.

Involving external parties in company performance analysis is very important because they provide an objective and independent perspective. Management consultants, external auditors, and financial analysts can help companies identify weaknesses that internal teams might miss. Additionally, they can also provide recommendations based on industry best practices and international standards, which can help companies adopt more effective and efficient strategies.

The importance of involving external parties is also seen in the aspects of trust and credibility. Performance reports that have been verified by external parties are more trusted by investors, creditors and other stakeholders. This not only helps in attracting new investments but also strengthens relationships with existing stakeholders. Thus, involving external parties in company performance analysis not only helps in improving operational efficiency but also improves reputation and trust in the market.

 

CONCLUSION

In conclusion, the BMC approach not only helps PT Persada Utama Diesel design a more effective and adaptive marketing strategy, but also enables the company to remain competitive and responsive to market changes and customer needs in the spare parts business. By focusing on the elements of BMC, companies can optimize their operations and direct marketing efforts more strategically to achieve sustainable growth. The SWOT and BMC approaches offer a comprehensive framework for formulating an effective spare parts marketing strategy for PT Persada Utama Diesel. By capitalizing on strengths, addressing weaknesses, and exploiting opportunities and managing threats, coupled with the use of BMC to identify key elements of the business, the company can create sustainable value for customers and maintain competitiveness in the market. This strategy not only supports short-term planning, but also helps in forming a more structured and adaptive long-term vision.

 

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