Analysis of Development Strategy of Oil Palm Seeds Market

Abstract

The objective of this study was to analyze the marketing strategy of oil palm seeds based on the seeds' quality, assessing the factors that affect consumers' decision in choosing oil palm seeds and recommend alternatives of superior oil palm seeds. Samples consist of 50 respondents who represents 50 oil palm companies in North Sumatra. Respondents were determining by using purposive and simple random sampling. The survey was conducted by direct interview with each respondent. Management of PT Timbang Deli Indonesia (PT TDI) has conducted the marketing mix of product, pricing, distribution and promotion without any data of the effectiveness. Therefore, a scientifically conducted study is required to understand the issues which affected the expansion of sales areas. It will help PT TDI to measure the marketing mix and its influence on the decision, satisfaction and customer loyalty. This study shows that there is a significant influence on the product, price, distribution, and promotion of the decision. Product quality and promotion has a very significant effect on the decision of purchasing. Based on this study, the company must promote the seeds by emphasizing the quality (especially yield and early return of investment). In addition, promotion by presenting the seeds' information and encouraging the candidate customers to visit the demonstration plot of the seeds is a very effective way to win the customers' heart. Furthermore, aftersales service is one of the strategies which will distinguish PT TDI from other seeds producers to win the market, especially in North Sumatra.