Thursday, 15 December 2011

“Should KaryaNyataSosial Adopt New Marketing Strategies to Increase its Brand Awareness?”

Ini adalah contoh tugas sekolah....

Candidate name: Bayu Prasakti Tjandra
002636 – 021
Binus International School Simprug

Business & Management, Higher Level



Acknowledgements
  
I would like to thank:

·         Ms. Ma Lourdes Fajardo, for the guidance and support during the whole process of the report making.
·         Mr. AdjieMaulana, the PIC of KaryaNyataSosial, for giving all the information needed and participating the interview.
·         My family and friends, for the moral support and help during the whole process.

Executive Summary

‘KaryaNyataSosial’ (KNS) reveals that they are facing a flaw in reaching its maximum effectiveness towards the environment, which is its marketing system to gather donators to help increase their financial conditions. Base on that problem, this report consists of the analysis of aspects in KaryaNyataSosial and help them conclude new marketing strategies that will bring more profit for KNS itself.

Analyses are based on primary researches (Appendix 1,), secondary researches from Internet websites (Appendix 2), and several business techniques such as SWOT analysis (to identify external and internal conditions of KNS), and Basic 4 P’s (to identify new marketing strategies for KNS).

After analyzing using both business techniques, many possible options came up for KNS to adopt new marketing strategies such as adding different types of media advertisements and promotions such as public speaking. Ansoff Matrix helped to identify that KNS will need to initiate market development stage of the matrix. Payback period and ARR also helped KNS based on quantitative values.

Recommendations are stated along with the evaluation to give KNS ideas how to perform the new marketing strategies effectively. Market researches are needed also to give KNS further vision to achieve new target markets, which in this case are the donators to increase the financial credit of KNS itself.



Research Proposal

Research Question
“Should KaryaNyataSosial adopt new marketing strategies to increase its brand awareness?”

Theoretical Framework
I will analyze the marketing strategies of ‘KaryaNyataSosial’ by using several marketing tools such as SWOT analysis to identify the internal and external condition of the organization, and basic 4 P’s of marketing when focusing more on the marketing strategy. By using those tools, I can identify the opportunities that the organization have, thus forming a new marketing strategy for them that can be more effective than before. If the new marketing strategy succeeds, ‘KaryaNyataSosial’ will hopefully gather more donators and be able to initiate more services to help unfortunate people

Methodology
1.      Primary Research
a.       Interview with AdjieMaulana, one of the staff of KaryaNyataSosial
                                                              i.      Whole system of KaryaNyataSosial
                                                            ii.      Current marketing system and marketing strategies of KaryaNyataSosial
b.      Interview with random people (20 brief interviews)
                                                              i.      How interested are they on donating money to non-profit organizations


Possible problems that may be encountered and its solutions

Possible Problems
Solutions
Interview answers may not be clear and satisfying for interviewer
Provide detailed and clear questions
Interview questions may be to sophisticated
Provide detailed and clear questions
Survey with random people may not show a clear result
Provide the same exact oral questions for each people
Survey with random people result may be effected by the age factor
Choose specific age range when choosing random people
Secondary research data may be outdated
Make sure the statistic shows exact time and year
Interview answers may be biased
Provide a suitable amount of questions
Secondary research data may be irrelevant or bias
Make sure to gather secondary data from various websites using the Internet


Action Plan (Timeline)


Date
Activity
Outcome
May 2011
Selecting topic, research proposal (research question)

May 2011
Submit initial proposal and topic to teacher
New research question
May 2011
Making Theoretical Framework and Methodology

June 2011
Making interview proposal for AdjieMaulana

June 2011
Preparing interview questions

July 2011
Interview with AdjieMaulana
Not enough time to finish the interview
August 2011
Continuation of the interview
Gathered all the info needed
August 2011
Conducting secondary research

September 2011
Reviewing primary data and secondary data

September 2011
Begin writing the Internal Assessment

September 2011
Submit initial draft

September 2011
Interpreting the data for the analysis

October 2011
Start including business techniques in analysis stage (SWOT, Basic 4 P’s, Ansoff Matrix)

October 2011
Start making the conclusion and evaluation

November 2011
Reviewing the whole Internal Assessment context
Possible changes and modifications
December 2011
Submission of the final draft


Introduction (Background Information)

‘KaryaNyataSosial’ is a small non-profit organization established in 2006 with the aim of providing certain necessity to unfortunate people across Indonesia, and their vision is to make Indonesia a healthier country with healthy citizens. They organize events to deliver their services, without seeking any profit or return.

The organization established its main base in Bogor, but its existence covers a big area across Indonesia[1]

The organization provides a service, which is giving free healthy foods to unfortunate people. It has an active research management that managed to identify areas that are suitable for the organization to initiate its service, and gathering donators as much as possible, since the only source of the money for the organization is by gathering donators through persuasions that may attract them to donate their money to the organization.

This report focuses on the research question “Should KaryaNyataSosial adopt new marketing strategies to increase its brand awareness?”. Based on the question, the report will decide which new marketing strategy will be suitable for KaryaNyataSosial in the future.




Procedure/Methodology

The procedure is based on primary research and secondary research[2]. The primary research will consist of interview with AdjieMaulana, one of the PIC of KaryaNyataSosial. The interview will result in detailed information of KaryaNyataSosial, especially about their marketing system and financial status. Another type of interview will be based on 20 brief oral surveys with random adults in Jakarta, focuses on their perspective towards non-profit organization activities.

The data gathered were analyzed by using business techniques such as SWOT analysis, Basic 4 P’s of marketing, and Ansoff Matrix, and financial techniques such as Payback Period and Average Rate of Return (ARR). By analyzing the primary and secondary research by the use of these techniques, it helps to conclude a new marketing strategy for KaryaNyataSosial to utilize in the future.


Main results and findings

Services that KaryaNyataSosial provide to the environment:
1.     Health related: Free healthy nutritious food, free medical check ups
2.     Environment related: Cleaning the schools in the area, recycling, tree planting
3.     Education related: Providing free general education for unfortunate kids
4.     Economy related: Teaches local unfortunate people how to maximize their natural resources within the area, and how to make full use of the resources

Types of staff in the organization:
1.     Technical team: Making reports
2.     Executive team: Making sure that every service is completed
3.     Promotion team: In charge of promoting ‘KaryaNyataSosial’ to gather up donators

Locations (areas covered):
Locations
Year
Jakarta
2006-2011
Buleleng, Bali
2011
Bogor, West Java
2006-2011
Cimahi, West Java
2008-2010
Lembang
2008
Ketapang, Kalimantan
2009-2011


Promotion of non-profit organization’s in Indonesia in general
The chart below represents the percentage of the awareness of random adults of non-profit organizations in Indonesia. The chart is based on the data gathered from 20 oral surveys[3].

Figure 1: Pie Chart


People’s awareness regarding poverty in Indonesia
The chart below represents the percentage of how people are aware of the issue of poverty in Indonesia. The chart is based on the data gathered from 20 oral surveys[4].

Figure 2: Pie Chart


People’s demand regarding donating money to non-profit organizations
The chart below represents the percentage of people’s demand of donating money to non-profit organizations in Indonesia. The chart is based on the data gathered from 20 oral surveys[5].

Figure 3: Pie Chart



Latest financial data

Posyandu Name (Ketapang, 2011)
Total Costs
Kartini 1
Rp.423.500
Kartika
Rp.693.500
MelatiPutih
Rp.779.000
PutriBerkurung
Rp.562.400
Putri Indah
Rp.670.700
LalangPutri
Rp.668.800
PermataHati
Rp.345.800
DalongPutri
Rp.317.300
CempakaPutih
Rp.629.300
Nipah Jaya
Rp.503.300
AwanMaju
Rp.685.700
Kamboja
Rp.436.400
TOTAL
Rp.6.175.500

Each area is covered 3 times in 3 months length of services, thus brings up a total cost of 3 months x Rp.6.175.500,00 = Rp.20.146.500,00


Posyandu Name (Bali, 2011)
Total Costs
Plamboyan
Rp.662.100
KasihBunda
Rp.699.550
SatryaWiraKasih
Rp.913.550
Melati
Rp.742.550
Mawar
Rp.816.200
Dahlia
Rp.1.013.100
DajanPura
Rp.523.000
LampahSrikandi
Rp.672.800
Lakah
Rp.485.550
Rare Kumara
Rp.794.900
Mawar(2)
Rp.1.849.800
Melati(2)
Rp.639.650
CempakaPutih
Rp.747.700
Sekar Wangi
Rp.1.062.300
TOTAL
Rp.11.622.550

Each area is covered 3 times in 3 months length of services, thus brings up a total cost of 3 months x Rp.11.622.550,00 = Rp.34.867.650,00

Total Donations/Credit
Total Service Costs
Additional Costs
RemainingTotal Credit
Rp.133.790.000
Rp.55.014.150
Rp.25.571.000
x 2 services = Rp.51.142.000
Rp.27.633.850


By analyzing two of KaryaNyataSosial’s latest financial data (Ketapang, period 2011 andBali, period 2011), it can be seen that by conducting 2 services in 2 areas in the same year, the total remaining credit is Rp.27.633.850. The remaining credit is not enough to cover any more services, which limits the performance ofKaryaNyataSosial.

Although the trend in 2012 may be different, for example if the market cost of the goods (milk, egg, and biskuat cracker) are tend to decrease, it will averagely decrease the total cost needed for 1 service to be conducted by KaryaNyataSosial, so it can’t be predicted whether KNS will experience any financial problems in the near future. They will still need to provide a better marketing strategy to improve their financial status.

Survey Analysis
From the survey results[6], what is need to be taken as a full concern is that the most of the survey recipients stated that they are not aware of existing non-profit organizations in Indonesia.


Analysis

Non-financial analysis

KaryaNyataSosial is a non-profit organization that provides services to unfortunate societies without seeking any return. Averagely, the organizations covers 3 areas/3 services per annum, depending on the amount of credit they have, and whether if its enough to cover the total cost of conducting services.

SWOT Analysis
The SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis is a business tool used for understanding and measures all decisions of a business, depending on the current situations internally and externally[7].

Figure 4: SWOT Analysis

This tool can be used to analyze the current organization situations of KaryaNyataSosial. It can help KaryaNyataSosial to identify the pros and cons that the organization has.

The SWOT analysis of KaryaNyataSosial[8]shows its current ‘health’(Strengths, Weaknesses, Opportunities, Threats) inside its organization. From the table, it can be seen that the management system of the service is good and is not in a threat, however the problem lies on the marketing related factors, which is lower total credit. The 2nd and 3rd threats are the possible outcomes if KaryaNyataSosial don’t adopt new effective marketing strategies in the future, but if they do, it will make the organization to gather more donators and get more money (3rd opportunity). There is 1 fixed factor that can’t be change by the organization such as the possible increasing/decreasing market price of the goods for the organization to purchase in the future, which is out of KNS’s control.


Marketing Mix
The marketing mix is a tool, which includes 4 P’s (Product, Price, Place, Promotion), that can be controlled by a business[9]

Figure 5: Marketing Mix



However, in the case of KaryaNyataSosial, since it’s a non-profit organization, 2 P’s, which are Product and Price, are not applicable, since the organization only provides free services. In that case, KNS can improve their advertising system by improving their Place of Promotion.

Place:
·         Areas with the greatest amount of wealthy people
·         Through surveys, find out the place where most people are aware and want to donate money to non-profit organizations
·         Areas with big population numbers

Promotion:
·         Media advertising (radio, television, website)
·         Public speakers
·         Flyers distribution
·         Billboards

The bullet points above shows the possible new marketing strategies for KNS to adopt. For the place, a crowded societythat includes wealthy people is suitable. The survey[10] can be used to find out whether the chosen society is aware of non-profit organizations and does the people want to donate money to the organizations. As for the promotion, KNS need to take its advertising system to a new level, such as making media advertisements in radio channels, television channels, or even websites. An additional idea is to make billboards or flyers, and distribute it in the right place to attract people’s attention.




Ansoff Matrix
Ansoff Matrix is a business tool to analyze the decision needed for a company/organization in terms of their product and market strategy[11].

Figure 6: Ansoff Matrix



After analyzing the most suitable new marketing strategies for KaryaNyataSosial (SWOT analysis and marketing mix), it can be summarized that KNS needs to adopt the market development stage of the Ansoff Matrix. Since a KNS is already covers wide different kinds of service, the organization is not necessarily need to focus on ‘product development’, since in this case their services is their so-called ‘product’. The only issue lies is to focus on initializing new marketing system, thus KNS will need to focus on ‘market development’.

Conclusion and Recommendation

KaryaNyataSosial is currently struggling to gain more donators as their service to help engage the global issue of poverty and education is expanding. With the limited amount of money, the organization needs to widen their advertising system in order to increase their brand awareness. Researches showed that people around Jakarta are willing to help the poor, which brings good news towards KNS. SWOT analysis, marketing mix, and Ansoff matrix helped to analyze possible improvements that KNS may step itself into. Payback period and ARR also supported to solve the issue based on quantitative values, even though the organizations latest financial data limits the choices to improve KNS. With all the analyses done, it is very important for KNS to engage with new marketing strategies, in order to gain more donations to help the organization to be more flexible in the future. In conclusion, the analyses provided vision to KNS on how to achieve an effective marketing system to increase its brand awareness.

Recommendations:
Based on the conclusion above, here are the recommendations for KNS to consider:
·         Initiate more researches to help to identify the most effective new marketing strategy, since the financial values of the organization are currently limited.
·         Not engaging with payback period and ARR too much since both quantitative methods are only used for estimations only.
·         Creating a website by using blogs since its free.
·         Undertake more surveys in the future to verify the information needed.

Bibliography
Websites

Tutor2u. "Ansoff Matrix." Tutor2u | Economics | Business Studies | Politics | Sociology | History | Law | Marketing | Accounting | Business Strategy. Boston House | 214 High Street | Boston Spa | West Yorkshire | LS23 6AD | Tel +44 0844 800 0085 | Fax +44 01937 529236. Web. 21 Sept. 2011. <http://tutor2u.net/business/strategy/ansoff_matrix.htm>.

QuickMBA. "Ansoff Matrix." QuickMBA: Accounting, Business Law, Economics, Entrepreneurship, Finance, Management, Marketing, Operations, Statistics, Strategy. Internet Center for Management and Business Administration, Inc., 1990-2010. Web. 21 Sept. 2011. http://www.quickmba.com/strategy/matrix/ansoff/

"Market Research - Primary Market Research and Secondary Market Research | Business Teacher." Business Essays | Free Business Essay Resources | Business Teacher. Web. 21 Sept. 2011. <http://www.businessteacher.org.uk/markets/primary-secondary-market-research/>.

"Marketing Mix." NetMBA Business Knowledge Center. Internet Center of Management and Business Administration, Inc. Web. 22 Sept. 2011. <http://www.netmba.com/marketing/mix/>.

"Free SWOT Analysis Template and Method, Free Swot Analysis Examples." Businessballs Free Online Learning for Careers, Work, Management, Business Training and Education: Find Materials, Articles, Ideas, People and Providers for Teaching, Career Training, Self-help, Ethical Business Education and Leadership; for Personal, Career and Organizational Development. A Fun Free Online College of Ethical Life and Work Education, for Self Help, Teaching, Careeer Development, Distance Learning, Organizational Development, with Team Building Games and Exercises, Free Self-help and Training Ideas, Free Management Theories, Free Diagrams, Templates, Samples, Examples, Materials and Tools, Free Child Development Activities and Adults Development Exercises Ideas. Web. 22 Sept. 2011. <http://www.businessballs.com/swotanalysisfreetemplate.htm>.

"Small Business NSW - SWOT Analysis." Smallbiz Home. Web. 31 Oct. 2011. <http://www.smallbiz.nsw.gov.au/run/strategy/strategy/pages/swot.aspx>.

"The Marketing Mix and 4 Ps - Marketing Skills Training from MindTools.com." Mind Tools - Management Training, Leadership Training and Career Training. Web. 31 Oct. 2011. <http://www.mindtools.com/pages/article/newSTR_94.htm>.

"Accounting Rate of Return (ARR)." Moneyterms: Investment/finance Glossary/explanations. Web. 01 Dec. 2011. <http://moneyterms.co.uk/arr/>.

"Payback Period Definition." Investopedia.com - Your Source For Investing Education. Web. 01 Dec. 2011. <http://www.investopedia.com/terms/p/paybackperiod.asp>.


Appendix 1 (Interview script with Mr. AdjieMaulana – PIC of KaryaNyataSosial)

“In our vision, we only have 2 enemies, poverty and stupidity” – AdjieMaulana

Q: How does ‘KaryaNyataSosial’ gather up donators?
A: We have 3 stages of promoting our name to donators. Before we gather up donators, we started to initiate our services in several areas, providing healthy food for the unfortunate people in that particular area. After the services, in that same area we began investigating for people that are willing to help donate money for ‘KaryaNyataSosial’. From the outcome, whether we are able to gather up money to help us initiate other services.


Q: What are the services that ‘KaryaNyataSosial’ provides to the community?
A: There are several types of services and events we organize. Providing nutritious food while providing medical checkups as well, Teaches them to be hygienic by persuading them to clean the environment, providing education towards the kids, and teaches local workers to maximize their natural resources within their area and how to make a full use of it.

Q: How many bases does ‘KaryaNyataSosial’ have?
A: Since we are a non-profit organization, we only have one base, which is located in Cimanggu, Bogor. We usually make reports regarding the services in headman’s offices depends on the area we currently visiting in.
\
Q: What are the types of HR in ‘KaryaNyataSosial’?
A: We have 3 different types of staff, Technical Team that make reports, Executive Team which take part in the service, and Promotion Team which gather up donators.

Q: What is the marketing system of ‘KaryaNyataSosial’?
A: We usually let KaryaNyataSosial known by the use of person-in-person contacts. We travel to many donators and persuade them face-to-face casually. We often do power point presentation in offices such as Allianz, Citibank, and many other financial firms.

Q: How many areas that ‘KaryaNyataSosial’ manage to cover until now?
A: We managed to cover south of Jakarta, south of Tangerang, Bogor, Cimahi, Lembang, Ketapang (Kalimantan), and Buleleng (Bali).
  
Q: What improvements do you think that ‘KaryaNyataSosial’ needs in the future in terms of marketing?
A: We are hoping to make media advertisements such as TV advertisements, and websites.

Q: What is the average cost of conducting 1 service?
A: We have 3 types of costs to conduct 1 service, PMT (PemberianMakananTambahan), BOP (BiayaOperasional), and one more is the cost to make the report. In average the total cost of 1 service is (PMT= approx. Rp.700.000,00), (BOP= approx. Rp.500.000,00), (report making= approx. Rp.1.000.000,00).

Q: Can I acquire the financial data of KNS in the year 2010 and 2011?
A: -RECEIVED-


Appendix 2 (Oral survey of 20 random people)

1.     Do you think that poverty in Indonesia is a major issue?
a.     Yes: 80%
b.     No: 20%

2.     If generally asked, are you willing to spend some of your money and donate it to help the poor?
a.     Yes: 75%
b.     No: 25%

3.     Are you aware of non-profit organizations in Indonesia?
a.     Yes: 10%
b.     No: 90%

Appendix 3 (SWOT Analysis of KaryaNyataSosial)



Helpful
Harmful
Internal
Strengths
-       Covers a big area around Indonesia
-       Strong staffs
-       Good service system

Weaknesses
-       Weak advertising system
-       Financial status (2011) à Lower total credit


External
Opportunities
-       Have a huge variety of locations to be chosen
-       Decreasing market price of goods needed for the service
-       Better marketing strategy à More donators à More credit

Threats
-       Increasing market price of goods needed for the service
-       Decreasing number of donators à If the marketing strategy is not improved
-       May cover less services per annum than before


Appendix 4: Financial Costs (2011)

Financial Costs (KaryaNyataSosial, Ketapang, 2011)

Posyandu Name
Participants
Total Costs of Goods (.000)
Cooking Fee (.000)
Kader’ Fee (Rp.15.000)
Milk (Rp.3.000)
Egg (Rp.1.200)
Biskuat Cracker (Rp.1.500)
Kartini 1
55
Rp.165
Rp.66
Rp.82.5
Rp.20
Rp.90
Kartika
105
Rp.315
Rp.126
Rp.157.5
Rp.20
Rp.75
MelatiPutih
120
Rp.360
Rp.144
Rp.180
Rp.20
Rp.75
PutriBerkurung
82
Rp.246
Rp.98.4
Rp.123
Rp.20
Rp.75
Putri Indah
101
Rp.303
Rp.121.2
Rp.151.5
Rp.20
Rp.75
LalangPutri
98
Rp.294
Rp.117.6
Rp.147
Rp.20
Rp.90
PermataHati
44
Rp.132
Rp.52.8
Rp.66
Rp.20
Rp.75
DalongPutri
39
Rp.117
Rp.46.8
Rp.58.5
Rp.20
Rp.75
CempakaPutih
99
Rp.297
Rp.118.8
Rp.148.5
Rp.20
Rp.45
Nipah Jaya
69
Rp.207
Rp.82.8
Rp.103.5
Rp.20
Rp.90
AwanMaju
101
Rp.303
Rp.101.2
Rp.151.5
Rp.20
Rp.90
Kamboja
52
Rp.156
Rp.62.4
Rp.78
Rp.20
Rp.120


Financial Costs (KaryaNyataSosial, Bali, 2011)

Posyandu Name
Participants
Total Costs of Goods (.000)
Cooking Fee (.000)
Kader’ Fee (Rp.15.000)
Milk (Rp.2.600)
Egg (Rp.1.250)
Biskuat Cracker (Rp.1.500)
Plamboyan
106
Rp.416
Rp.132.5
Rp.159
Rp.20
Rp.75
KasihBunda
113
Rp.293
Rp.141.24
Rp.169.5
Rp.20
Rp.75
SatryaWiraKasih
153
Rp.397
Rp.191.25
Rp.229.5
Rp.20
Rp.75
Melati
121
Rp.314
Rp.151.25
Rp.181.5
Rp.20
Rp.75
Mawar
133
Rp.345.8
Rp.166.25
Rp.199.5
Rp.20
Rp.90
Dahlia
166
Rp.431.6
Rp.207.5
Rp.249
Rp.20
Rp.105
DajanPura
80
Rp.208
Rp.100
Rp.120
Rp.20
Rp.75
LampahSrikandi
108
Rp.280.8
Rp.135
Rp.162
Rp.20
Rp.75
Lakah
73
Rp.189.8
Rp.91.25
Rp.109.5
Rp.20
Rp.75
Rare Kumara
114
Rp.296.4
Rp.142.5
Rp.171
Rp.20
Rp.165
Mawar(2)
328
Rp.852.8
Rp.410
Rp.492
Rp.20
Rp.75
Melati(2)
89
Rp.231.4
Rp.111.25
Rp.133.5
Rp.20
Rp.90
CempakaPutih
122
Rp.317.2
Rp.152.5
Rp.183
Rp.20
Rp.75
Sekar Wangi
178
Rp.462.8
Rp.222.5
Rp.267
Rp.20
Rp.90





[1]Appendix 1: Interview with Mr. AdjieMaulana
[2]"Market Research - Primary Market Research and Secondary Market Research | Business Teacher." Business Essays | Free Business Essay Resources | Business Teacher. Web. 01 Dec. 2011. <http://www.businessteacher.org.uk/markets/primary-secondary-market-research/>.
[3]Appendix 2: Survey with random people
[4]Appendix 2: Survey with random people
[5]Appendix 2: Survey with random people
[6]Appendix 2: Survey with random people
[7]"Small Business NSW - SWOT Analysis." Smallbiz Home. Web. 01 Dec. 2011. <http://www.smallbiz.nsw.gov.au/run/strategy/strategy/pages/swot.aspx>.
[8]Appendix 3: SWOT Analysis
[9]"Marketing Mix." NetMBA Business Knowledge Center. Web. 01 Dec. 2011. <http://www.netmba.com/marketing/mix/>.
[10]Appendix 2: Survey with random people
[11]"Ansoff Matrix." Tutor2u | Economics | Business Studies | Politics | Sociology | History | Law | Marketing | Accounting | Business Strategy. Web. 01 Dec. 2011. <http://tutor2u.net/business/strategy/ansoff_matrix.htm>.
[12]"Accounting Rate of Return (ARR)." Moneyterms: Investment/finance Glossary/explanations. Web. 01 Dec. 2011. <http://moneyterms.co.uk/arr/>.
[13]"Payback Period Definition." Investopedia.com - Your Source For Investing Education. Web. 01 Dec. 2011. <http://www.investopedia.com/terms/p/paybackperiod.asp>.


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