the commercialization of indonesian made … · the commercialization of indonesian made machine...

THE COMMERCIALIZATION OF INDONESIAN MADE MACHINE

TOOLS IN THE LOCAL MARKET INVOLVING THE INCREASE

OF BRAND AWARENESS (CASE STUDY OF PT. LMN)

FINAL PROJECT

By

Qisthia Kattania

19007014

Undergraduate Program

School of Business and Management

Institut Teknologi Bandung

Blank page

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ABSTRAK

Industri mesin perkakas di Indonesia merupakan industri yang termasuk pada kategori

industri induk. Artinya, keberadaan industri mesin perkakas bisa memicu perkembangan

industri lainnya, contohnya seperti industri permesinan seperti otomotif, karena industri

mesin perkakas bekerja dengan cara mengolah komponen-komponen metal menjadi suatu

bentuk yang diinginkan. Saat ini, industri mesin perkakas di Indonesia sedang dihadapi

permasalahan seperti maraknya kompetisi dengan perusahaan mesin perkakas impor yang

mengambil pangsa pasar domestik. Hal itu terjadi karena perusahaan mesin perkakas di

Indonesia banyak yang masih belum dikenal oleh calon konsumen sendiri.

Pada essay ini, penulis berusaha untuk menjelaskan keadaan industri mesin perkakas di

Indonesia dengan cara mengambil salah satu perusahaan mesin perkakas sebagai bahan

studi kasus dalam essay ini yang juga mengalami permasalahan serupa. Melalui

wawancara dan observasi secara langsung, penulis berusaha untuk membahas kasus yang

terjadi di dalam perusahaan ini, yang berinti pada kurang maraknya penjualan perusahaan.

Selain karena adanya kompetisi dari perusahaan asing, kurang memuaskannya penjualan

yang dicapai oleh perusahaan ini juga disebabkan oleh dampak dari krisis finansial global

yang terjadi pada tahun 2008. Dengan memanfaatkan kejelian melihat peluang, perusahaan

ini pun mempergunakan masa-masa sulit penjualan dengan melakukan riset demi membuat

inovasi pada produk perusahaan.

Demi membantu menyelesaikan masalah yang dialami perusahaan tersebut, pada essay ini

penulis mengungkapkan saran pada perusahaan untuk membangun brand awareness atau

kesadaran masyarakat akan merek dari perusahaan itu sendiri, sehingga calon konsumen

pun mengenali merek perusahaan dan dapat mengedukasi konsumen (menciptakan pasar).

Disamping itu, untuk memperkuat kedudukan perusahaan ini di pasar domestik, penulis

berpendapat bahwa perlu adanya positioning atau memposisikan diri secara tepat oleh

perusahaan ini, sehingga posisi perusahaan ini unik dan tidak gampang tergoyahkan oleh

adanya kompetitor lain di dalam industri mesin perkakas.

Kata kunci: mesin perkakas, pasar domestik, inovasi, produk impor, brand awareness,

positioning

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ABSTRACT

Machine tools industry in Indonesia is an industry that can be classified in the category of

the parent industry. This means, the existence of machine tool industry can trigger the

development of other industries, such as industries that rely heavily on machinery like

automotive industry, because machine tools work by processing metal component and

shaped them into a desired form. Currently, the machine tool industry in Indonesia is faced

with problems such as the increasing competition due to the existence of foreign company

that exported machine tools to Indonesia and that take the domestic market share. It

happens because many of the machine tool companies in Indonesia are still unknown by

their prospective consumers.

In this essay, writer tries to describe the condition of the machine tool industry in Indonesia

by taking one of the largest machine tools companies as case study material in this essay

that is also experiencing similar problems as mentioned above. Through interviews and

direct observation, the author attempted to discuss the problems happening in this company

that mainly circulated around the problem of unsatisfactory volume of sales. In addition to

the competition from foreign companies, disappointing sales achieved by these companies

are also caused by the impact of the global financial crisis that occurred in 2008. However,

the company tried to take advantage of their difficult selling period by doing research and

development in order to make innovations in companies’ product.

In order to help solve problems experienced by the company, in this essay, writer expresses

her suggestion to the company that they need to increase their brand image by building

brand awareness of the company, so that any potential consumer can recognize and be

familiar with the company’s brand and the company can create a market by educating the

consumers with their product commercialization. In addition, to strengthen the position of

this company in the domestic market, writer concluded that it is necessary for the company

to have a precise positioning strategy, so that they have a unique position and not easily

deterred by the presence of other competitors in the industrial machine tools in Indonesia.

Keywords: machine tools, local market, innovation, imported product, brand awareness,

positioning

iii




FINAL PROJECT

By

Qisthia Kattania

19007014

Undergraduate Program



iv

APPROVAL PAGE




By

Qisthia Kattania

ID No: 19007014

A Final Project in Partial Fulfillment

of the Requirement for the Degree of Bachelor of Management

Undergraduate Program of Management Study



September 8th

, 2010

Approved By

__________________________

Ir. Leo Aldianto, MBA, MSc

NIP: 888049114

v

FOREWORD

Writer would like to thank Allah SWT for letting her finish this final project, without His

blessings it’s impossible to happen.

Writer also would like to thank these following people and places for helping her finish the

final project. First of all,

- My dear mom, for your prayer you send to God for me, and for your continuous support,

effort, and sacrifices you made so I can finish this final project.

- My dad, for helping me with the advices, questions for the interview, your understanding,

and the link you gave me until I got accepted to do my final project in PT. LMN.

- Best friends with their undying support: Tika, for all your help, and for trying to be the

force inside of me -- LOL at that. Uti, for your unforgettable post-it note, for being a jerk,

and for being sweet. Hasya, my one and only manager with unlimited support. Alma, for

berating me always, and your wise text messages. I feel blessed to have you all.

- My supporters: Nigor, Kara, Arres, Tita, Ratna, Mega, Ebet, Vira, Tizi, Okke, Nila,

Rancil, Siska, Esa, Bhre, and others for fueling me with supportive words and for all your

kind help.

- My partners: Dhea, Nosa, Nyanya, Denna, Ikrom. Thanks for the shared hard times.

- Mr. John Doe, for letting me in into the company, and for the time you spare for me.

- Pak Leo, for guiding me with my final project, and for giving me second chances.

- My Big Bro, for lending me internet modem for like a month—what a sacrifice you

made.

- My ‘Lil Bros, for always making me happy just to be able to see you, for your warmth,

and your kind hearts.

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- My not-so-little Bro, for all the things I enjoy without asking your permission first.

Haaa… And not to forget, for your understanding and tolerance toward my situation.

- PT. LMN, for being my final project source. And for the employees there, for your warm

welcome, and for the food on my table… Thanks a lot.

- McD Dago for letting me stay for a long time, and for being my final project last resort.

- Sangkuriang 47 C, for being many people’s base camp, for the free wi-fi, and for all the

invaluable lessons I got there.

- Twitter, for being a place where I can put my whining and my final project stress. And

also my follower in twitter, for being patient with my constant whining.

- And lastly, for all the people who helped me in any kind of way, I thank you.

This work of mine is dedicated to my mother, and my best friends who never ever want to

leave me behind. This one is for you.

vii

LIST OF CONTENTS

ABSTRAK ................................................................................................................................. i

ABSTRACT .............................................................................................................................. ii

TITLE PAGE ............................................................................................................................ iii

APPROVAL PAGE .................................................................................................................. iv

FOREWORD ............................................................................................................................. v

LIST OF CONTENTS ............................................................................................................. vii

LIST OF FIGURES .................................................................................................................. ix

LIST OF TABLES .................................................................................................................... x

CHAPTER I: INTRODUCTION .............................................................................................. 1

1.1 Background ...................................................................................................................... 1

1.2 Problem Statement ........................................................................................................... 2

1.3 Research Scope ................................................................................................................ 4

CHAPTER II: BACKGROUND INFORMATION .................................................................. 5

2.1 Company Profile: PT. LMN ............................................................................................ 5

2.2 Product and Services ........................................................................................................ 6

2.3 Company History ............................................................................................................. 8

2.4 Business Environment ..................................................................................................... 9

2.5 Business Process ............................................................................................................ 10

CHAPTER III: SEQUENCE OF EVENTS & DATA ............................................................ 13

3.1 Notable Events in PT. LMN .......................................................................................... 13

3.2 Company’s Condition .................................................................................................... 15

3.3 Company’s Problems ..................................................................................................... 18

3.4 The Decisions ................................................................................................................ 21

CHAPTER IV: DISCUSSION ................................................................................................ 27

4.1 Analysis of problems and solutions ............................................................................... 27

4.1.1. External factor: global crisis .................................................................................. 27

viii

4.1.2. External factor: challenge from China ................................................................... 28

4.1.3. Internal factor ......................................................................................................... 29

4.2 Company analysis based on theory ................................................................................ 30

4.2.1 What the company has and where the company is right now ................................. 30

4.2.2 Company’s SWOT analysis .................................................................................... 32

4.2.3 Company analysis based on THIO concept ............................................................ 33

4.3. Suggestion for PT. LMN .............................................................................................. 34

CHAPTER V: CONCLUSION ............................................................................................... 39

5.1 Synopsis of the previous discussion .............................................................................. 39

5.2 Lessons learned from the decisions and problems ......................................................... 40

5.3 Suggestions for the company’s problem and more ........................................................ 40

REFERENCES ........................................................................................................................ 42

APPENDIX ............................................................................................................................. 44

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LIST OF FIGURES

Figure 2.1 Vertical Machining Center ....................................................................................... 6

Figure 2.2 Lathe Machine .......................................................................................................... 7

Figure 2.3 Units Sold Until 2010 of Special Purpose Product Category .................................. 8

Figure 2.4 Step by step business process of PT. LMN ............................................................ 11

Figure 3.1 PT. LMN’s history and events from 2004 to 2009 ................................................ 14

Figure 3.2 The Sales Made since 2004 until beginning of 2010 ............................................. 17

Figure 3.3 Sales comparisons between 2008, 2009, and the years before .............................. 19

Figure 3.4 The Import of Machine Tools in Indonesia (in million of USD) ........................... 23

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LIST OF TABLES

Table 1.1 Capacity Utilization of Machinery Industry per Industry Branch ............................. 3

Table 3.1 PT. LMN’s Production Facility and its amount of unit ........................................... 16

Table 3.2 The list of Main Customers of PT. LMN ................................................................ 17

Table 4.1 SWOT analysis of PT. LMN ................................................................................... 32

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