Malang

By May 4, 2019 Tourism

HISTORY
Malang is the second largest city in East Java. The city has the ideals to become Tri Bina Cita Malang that are Malang as Education City; Malang as Industrial City; and Malang as Tourism City.

As an industrial city, Malang has a unique pattern in industrial growth, where most of its industry is supported by small and micro industry sectors. There are several manufacturing industries in Malang City, mostly on labor-intensive production scale. One of the leading industries of Malang is ceramic and pottery industry in Dinoyo and Pananggunan urban village of Malang City, named Kampung Wisata Keramik Dinoyo, aims to invite tourists from outside the city and abroad to introduce the original ceramics manufacturing center of Malang and because the majority of people who live in Dinoyo area are ceramic craftsmen.

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The history of the ceramics industry in Malang City began in 1953 when the establishment of the Institute of Industrial Enterprises.

Then, emerging pilot ceramics company in the areas of KY 1 Jakarta, KY 2 Loka Surabaya, KY 3 Purwokerto, KY 4 Mayong Jepara, KY 6 Tulungagung. In 1957, LEPPIN established Dinoyo Ceramics Factory located in Malang City and inaugurated by Vice President Moh. Hatta with the name KY 5.The Dinoyo Ceramics Factory is a ceramic processing pilot project that utilizing new advanced technology at that time, with slip casting and jiggering system. It produces products: plates, cups, moci, basi, so that is known for the plate factory. In 1962, KY formed production units of Dinoyo 1, 2, 3 and Betek 1, 2, 3. The raw materials were supplied from KY, while the units prepared semi-finished goods. In 1968, the units broke away from the parent (KY) to develop their own business but still hung the guidance and supply of raw materials from it. At that time also developed decorative ceramic shaped doll.

As time goes by, the Dinoyo ceramics factory stagnated until the day has come for it to closed. The cause of the closure is still a mystery. The closure of this industry has an impact on the surrounding communities who work as craftsmen. Many of them pioneered ceramic industry in home industry scale which until now developed and become ceramics industry center in Malang City and known by public.

The development of ceramic industry in Dinoyo Village is inseparable from the persistence of artisans who keep effort to innovate develop the resulting ceramic products. The craftsmen looked from the development of Chinese ceramics then develop semi-porcelain ceramics. The hallmark of Dinoyo ceramic products lies in the colors and natural designs that characterize the tropical country. The shape and function also vary such as aromatherapy containers, flower vases, decorative jars, souvenirs and others. Dinoyo ceramic products are widely marketed in big cities such as Surabaya, Jakarta, Denpasar, to Medan. In addition, the craftsmen also often following the Micro, Small, and Medium Enterprises (MSME) product actors held by the government in regional, provincial, national and international scale. One of the achievements of Dinoyo ceramic artisans in introducing the unique ceramic products of Dinoyo to be recognized by the world community is to participate in the international ceramics products showcase in various countries in the world such as Malaysia, Thailand, Singapore, Japan, Europe, and America. These conditions gave positive economic, social and cultural impacts to the community around Dinoyo urban village, especially craftsmen. This, making the Government of Malang City to make that industrial center as one tourist destination that is packed with the concept of Kampung Keramik Dinoyo. The development of this village aims to provide educational history of archipelago ceramic Dinoyo especially to tourists and interact directly with ceramics craftsmen.

In popularizing Dinoyo Ceramics Village, the Government of Malang City in cooperation with the ceramic business community organizers to create the annual Dinoyo Ceramics Festival Program. The purpose of the program is to attract the general public, especially tourists both local and foreign tourists to visit “Kampung Wisata Keramik Dinoyo”. The way it was very effective, proved by every year festival visitors are constantly increasing. The increasing number of ceramic festival visitors in Malang City has an impact on the high demand of consumers, both domestic and foreign consumers on ceramic products in Dinoyo ceramics business center and impact on the popularity of ceramic products of Dinoyo.

Besides holding an annual festival, the chairman of the ceramic artisan group, H. Samsul initiated to create a “short course” program during school holidays at the end of the year, which aims to introduce school children to Dinoyo ceramics. During the “short course” program, students are given an understanding of the history of the ceramic industry of Dinoyo, looking directly at the manufacturing process in the production studio, and then to the direct practice of making ceramics. The program is not only intended for school-age students, but sometimes many students, both in the city of Malang and outside the city of Malang visited the village of ceramics Dinoyo.The impact that could be felt by the entrepreneurs and ceramic craftsmen in Kampung Keramik Dinoyo from the activities and programs where have been held by the ceramic business community with the Government of Malang City is the increase demand for ceramic products. It makes craftsmen continue to make creations and innovations on ceramic products typical of Malang to continually compete with similar industries in the market both domestic and international markets.

MARKETING RESEARCH DESIGN
On Friday, October 13th, 2017, we conducted a direct interview with one of the SMEs in Malang. Our goal is to make and analyze the marketing research design of this SME. We had the opportunity to be able interviewing our interviewees, Mrs. Debi Apriati, who also as the owner of SME Bungsu Jaya Souvenir.

The first impression we felt when entering this SME is a well-structured and such a good industry. This SME provides a variety of souvenirs, invitations, ceramics, vases, glass fiber, gypsum, and pottery.

COMPANY PROFILE

This SME tends to operate in the field of marketing. They are getting raw materials from the distributor channels of its relation that came from the city of Jogjakarta, Probolinggo, Surabaya, and Semarang. After obtaining the materials, they do the designing of goods by also accept the desired design request by its customers, such as screenprintings, doffing, etc. are done by their own in the industrial location.

This SME has only one sales shop, which is on Jl. MT. Haryono, but they do so many collaborations with other related companies or SMEs.

They do not have a meaningful organizational structure, because this SME is included in the individual business, so the owners are more directly involved to intervene in every business process.

SEGMENTATION, TARGETING, AND POSITIONING (STP)
Segmentation: The people who are going to have event.

Targeting:Couple that has planned to marry, young-adult man who will have
circumcision, someone who will celebrating her/his event (birthday, gradution), etc.–from any class level.

Targeting of products volume: Sales in 4.000-8.000 items per month
Positioning: To be SME crafting that keep prioritizing the honesty, quality, and good packaging.

Appreciation from the Government of Malang City:
Kelompok Sadar Wisata (Pokdarwis).

Department of Industry and Commerce of East Java.

This appreciation is in forming of training, invitation of art exhibition, etc.

Price:
Retail price
Average: IDR 10,000 – IDR 250,000
Souvenir price
Average: IDR 2,500 – IDR 150,000
The average price commonly bought by the customers (souvenir price):
IDR 5,000 – IDR 25,000
Distribution process:
They have reseller, so the reseller indirectly sell their product also.

In the delivering process to the customer, they use these system:
East Java area: its car (small truck).

Outside East Java: Air, land expedition services.

Competitors:
They don’t really consider their competitor in Dinoyo area as their heavy one, because they feel they could compete with them. They feel the competitor in online shop might be the one they considered of, but they would still keep maintaining their excellence. Moreover, they provide to sell their product in big quantity (wholesale) so they still could competing the same other industries.

Selling strategy
Makes cooperation with:
Institution.

Department of Industry and Commerce of East Java.Not all of SME in Kampung Wisata Keramik Dinoyo are making cooperation with this government institution.

Hotels.

Once in a month, delivering one kind of their products, that is tumblr, for:
Atria Hotel Malang
Atria Hotel Surabaya
Ibis Hotel Malang
Ibis Hotel Surabaya
Resellers.

They have resellers: 1 in Malang, 2 in Surabaya, and the others in Pasuruan, in Mojokerto, in Jember, and in Banyuwangi.

Consignment.

They have partners in this kind of agreement, each of them (between Bungsu Jaya Souvenir and the partner) has to receive merchandise to sale.

Advertising and marketing system:
Online (IG, Web, WA)
Name card
Word-of-mouth (WOM)
The important strategies that are held tightly:
Quality.

The meaning of quality from customer perspectives is when their expectation are (at least) as the same as the product. Then, when quality are achieving, so the next we could talk about satisfaction. When its product meets customer’s satisfaction, so without asking our customer, they would like to reccommend to other customers.

Well-dressed and brief packaging.

As souvenir, it means the products are to be given to the other parties, so by well-packaging, it will gives such a good first impression, and someone who brings it anywhere would be feel like “I’m bringing such a good handycraft now, I want to show off it.”.

While for the one who as a giver, they would be feel like “I’m giving you a special goods to be reminiscence.

Be innovation and extrovert.

Not turning a blind eye to the fickle model, it strives to innovate continually and try to provide a model of products that consumers are fond of.

Satisfaction service.

“The customer is king.”
Assuming the customer is like our brother. In this way, we can better know and understand what they really want so we can offer various solutions and alternatives for our customers. In addition, by better understanding what the customer wants then the opportunity to profit will be a bit closer.

Honesty in the business process.

Without this noble character, someone or a company will be destroyed at the end.

SWOT Analysis
Strengths:
The store is well-structured and the parking lot in the front of store is better, compared to the others in Kampung Wisata Keramik Dinoyo.

Not only selling ceramics, but also other products that related in art, e.g.: flower plastic vases, etc.

Has trust from government so it would build customer’s trust also.

The price is so affordable moreover for buying in big quantities.

Genuinely putting forward the quality and good packaging.

Weaknesses:
Has only one store.

If they expand their business, we do believe they would be closer into the profit.

A few of promotions.

Promotion is needed to hook customer’s impulse in buying.

Opportunities:
Keep trying to expand the business.

Getting more employee might be inhancing more sales and productivity.

Chance to have professional employee due to cooperation with the government (training, etc.)
If they want, suppose they could make an open collaboration (investment) with other party, it would make their business expand.

Threats:
They have to make unique/hallmark of their products, besides making Chinese ceramics.

If their distributor for material has problem, so it would affect on them also.

EXECUTIVE SUMMARY
Malang City has the ideals to become Tri Bina Cita Malang, one of these Tri is Malang as industrial city. For achieving this ideal, there are several manufacturing industries here. One of the industries of Malang is ceramic and pottery industry in Dinoyo and Pananggunan urban village of Malang City, named Kampung Wisata Keramik Dinoyo.
One of the industries in this area is Bungsu Jaya Souvenir SME, located in MT. Haryono Street, Dinoyo, Malang. This SME tends to operate in the field of marketing. They have segmentation for the people who are going to have event; targeting the couple that has planned to marry, young-adult man who will have circumcision, someone who will celebrating her/his event, etc.- from any class level; while positioning to be SME crafting that keep prioritizing the honesty, quality, and good packaging.

They have so many good strategies that they have implemented. However, we intended to make analysis and suggest this SME to make their expansion, more promoting their products, and making innovative marketing strategy, because indeed they have many chances to make it happen and winning the market by being a market leader in nowadays competition.

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