Analysis of Online Marketing Strategy Formulation in Rananta Store
Batam
Yulinda Tarigan
1
, Ardella Shafira
2
, Morgan Kindler
3
1
Applied Business Administration, Politeknik Negeri Batam, Jl. Ahmad Yani Batam Centre 29461, Indonesia
2
Applied Business Administration, Politeknik Negeri Batam, Jl. Ahmad Yani Batam Centre 29461, Indonesia
3
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
Copyright
c
2021 by SCITEPRESS – Science and Technology Publications, Lda. All rights reserved
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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