Business and Management Internal Assessment

Higher Level

How to increase sales of PT. Mitra Genesaret Texindo

by analysing and implementing Marketing Mix?

Name

: Matthew Christoviano

School Name

: Sekolah Pelita Harapan-Lippo Cikarang

Candidate Number

: 002595-0008

Subject

: Business and Management

Level

: Higher

Word Count

: 1987

Acknowledgements
I would like to give my biggest thanks to the following people for sparing their time off their busy
schedules to talk to me about the problems of the company and help in providing me with all the
data that I need in order to finish this task.

1. Mrs. Monica Lewa, Chief Executive Officer for the company

2. Mr. Edi Susanto, Chief Financial Officer for the company

Table of Contents
1. Executive Summary.1

2. Introduction..2

3. Procedure/Method....4

4. Findings.5

5. Analysis.7
5.1. SWOT Analysis7
5.2. 7Ps Analysis..8
6. Conclusions.11

7. Recommendation....12

8. Appendices..14
8.1. Appendix 1: Interview Questions.14
9. References...15

Proposal
1. How to increase sales of PT. Mitra Genesaret Texindo by analysing and
implementing Marketing Mix?
Rational for study
PT. Mitra Genesaret Texindo is a company that operates in the textile industry. PT. Mitra Genesaret
Texindo operates a store that sells its clothing products and also operates a service that enables
people to order clothes in bulks or custom-made clothes. PT. Mitra Genesaret Texindo is losing
revenue from their clothing store because of their outdated product lines and its employees havent
had training in a long time. Their order services and custom-made clothes services is also
experience a downfall because of the limited human resource and machinery that makes clothing
production slowing down which doesnt please customers.

Theoretical Framework:
I plan to analyse the company through 7Ps and SWOT analysis to see what can be improved and
what can be deleted from the company. Also through using marketing mix and investment
appraisals, I will be able to suggest the best way or decision for the company to improve its sales
revenue and be profitable.
Areas of the syllabus to be covered
a. UNIT 1
a. 1.7 Growth and Evolution
b. UNIT 2
a. 2.1 Human Resource Planning
c. UNIT 3
a. 3.1 Sources of Finance
b. 3.2 Investment Appraisal
d. UNIT 4
a. 4.2 Marketing Planning
b. 4.3 Product

c. 4.4 Price
d. 4.5 Promotion
e. 4.6 Place
Methodology
Primary Research:
I will interview key people of PT. Mitra Genesaret Texindo in order to get detailed data on the
company as well as visit the company headquarter in order to get a hands-on feeling of the company
and also to know the environment of the company. The interview will give me information on
current and future plans of the company, partnering status, financial figures, and many more.
Secondary Research:
To see the status and get more information about the textile industry in Indonesia, as well as to find
prospective partnerships. Also secondary research will be used to review Indonesias economy and
see the most suitable market segment that can be entered by PT. Mitra Genesaret Texindo. Also
using textbook to analyse the data received
Anticipated Difficulties
Problems

Solution

Getting time to interview the key people of PT. Mitra

Genesaret Texindo will be hard because of their
busy activities

Contact them through email, their secretary, as well

as create an appointment with them

Up-to-date data of the company may be hard to

obtain

Use the internet to complete missing data as well as

interview more people in the finance department

Datas required for the research maybe sensitive and State this systematic error in the conclusion
confidential
PT. Mitra Genesaret Texindo has no website for
secondary crosscheck on the company

Prioritise research on primary research and depend

less on secondary research

Action Plan
Action

Due Date

Finish research proposal (checked)

December 18, 2014

Initiate research and prepare questionnaire for

interview

January 1, 2015

Confirm Interview time

January 3, 2015

Conduct Interview

January 10 - 12, 2015

Action

Due Date

Review companies Annual report

January 25, 2015

Analyse data and findings received from the

interview, annual report, etc.

January 29, 2015

First draft (consult with teacher)

February 21, 2015

Second draft (checked)

March 3, 2015

Final draft

March 10, 2015

1. Executive Summary
The introduction is going to explain and introduce background information about PT. Mitra
Genesaret Texindo as a whole and the marketing strategy of the company that was applied before,
and its results. The Introduction is going to show what is going to be analysed through this essay,
which will be used to formulate a resolution for the ongoing problem in the company, regarding
revenue and marketing.

Interviews with relevant key people of the company will be used as a primary source in order to get
a better picture on what has been done, its results, and what they actually wanted. Also to aid the
interview as a primary source I will use data given by the key people of the company regarding their
revenue and marketing strategy.

All the data acquired will be will later be analysed in order to come with a solution to the problem.
The data will be analysed by using SWOT analysis, as well as the 7Ps to help aid finding the
resolution to the ongoing problem of the company. The result of the analysis will be shown in the
conclusion and the resolution will be shown in the recommendation.

2. Introduction
PT. Mitra Genesaret Texindo is a family company basing its products in the textile industry. PT.
Mitra Genesaret Texindo is not a new company in the textile industry. Since it is a family company
PT. Mitra Genesaret Texindo is not a publicly traded company, and so selling shares as source of
finance is not an option. They have been in this industry for about 10 years. Even though they have
been in the industry for quite a long time, they have never excel in terms of sales and revenue. The
companys sale is always constant and for the past couple months, it has been going down a steep
hill. The company is barely surviving due to its negative sales and expense that keeps on going on.

The company has 40 employees to help run the business. Most of the employees are not trained and
qualified because of the fact that some of employees are family to the owner. The fact that its a
family company, strict rules and regulations are sometimes not taken seriously by the employees.
Employees whom are family to the owners take their job for granted. The employees does not work
professionally, thus causing low productivity and jeopardising the sales of the company. Their
salaries ranges from Rp 2.000.000 - 4.000.000/month which is equivalent to $150 - $350/month

The company has its own store where it sells clothing of own label brand and also other external
brands. Besides running the store, the company has a service that enables customers to order clothes
in bulks and also custom made it to their own preference. However, the custom made clothing
service is not running very well because of the low orders and the stores are not attracting lots of
visitors. The company tried to open a branch at a shopping mall where they display their products.
This though has failed due to not strategic placing of the store, items displayed are not attractive,
and other reasons.

The company leaders are finding a way of how to increase sales of the company and get it back on
its feet. After some discussions and observation it is identified that the largest obstacle or problem
that is keeping the company from developing is its poor marketing technique that is not presenting
any benefit to the sales of the company. The low creativity and initiative of the marketing team also
supported by the low allocated budget for the marketing departments causes the low attractiveness
of the store and the company. Therefore this investigation will focus on marketing effect on sales.
My research question is How to increase sales of PT. Mitra Genesaret Texindo by analysing and
implementing Marketing Mix?

3. Procedure/Method
Primary Research:
Interview with key people
CEO Mrs. Monica Lewa
CFO Mr. Edi Susanto
Interview with employees
Interview with customers
Receive annual financial report from finance department
Visit the store to see the employees and the store as well as the products
Get details on the Marketing department
Allocated budget
What have been done in terms of marketing effort
Results of the effort

Secondary Research:
Review statistics on Indonesias textile industry
What does successful textile company has that PT. Mitra Genesaret Texindo does not has
Research about 7Ps implementation and how it is affective towards increasing sales of a
company

Review what is the fashion trend going on in the society

4. Findings
Based on the interview with the company executives, employees, and customers here are the things
I found about why the companys revenue is facing a down fall:

Outdated items being sold at the stores

With insufficient funding of the company due to the low sales, the company is
unable to refresh its items being sold. With outdated products being sold at the
stores it will not attract customers to the store, thus negatively affecting sales
revenue

Unskilled & Untrained employees

Since it is a family business, most of its employees are relatives of the owners.
Most of them are unqualified and are accepted for the job just because of the
family status. unskilled and untrained employees have low productivity which
does not contribute anything for the company. Also their presence in the company
is just wasting limited funds for their wage.

Low marketing effort

This is also supported by the unqualified employees in this department. Since
theyre unqualified they have lack of creativity and knowledge in terms of
marketing. Without marketing, its difficult for a company develop or expand its
business. With low marketing effort sales are going down. This cycle will just
keep on repeating until the company is bankrupt.

Family business
PT. Mitra Genesaret Texindo is a family business and so selling shares is not an
option for sources of finance. The company prefers to stay as a family business
and depend on bank loans for finance whereas loans have collaterals and with this
5

condition the company is actually setting up its own bankruptcy

Over-stocking
The company has to much stock of clothing. With the community around it has a
low purchasing power with all the reasons above, these over stocking are just
causing more and more problem for the company. The clothes are outdated,
theyre dirty, and no one is buying them. Keeping them will just add cost but
releasing them will just wast money.

5. Analysis
5.1. SWOT Analysis

Internal

Strengths
The infrastructure and
capital are sufficient
enough for improvement
Employees are family,
and so communication
should be easy. The
employees also have a
sense of ownership and
responsibility towards the
company
The company is not new
in the textile industry.
Since 2005
Affordable clothing for a
community with low
purchasing power that
surrounds the store

Weaknesses
Unskilled and untrained
employees
Outdated items being
sold at the store
Low marketing effort
Limited source of finance
since it is a family
business

External

Opportunities
Threats
Strategic partnership with Low purchasing power of
other company working
the community around it
on the same industry
Competitors are getting
stronger with up-to-date
Product price matched
the community
products and fashion
surrounding it
trend
Change the status of the
company to public limited
to be able to sell shares
and gain money from it

Based on the extensive SWOT analysis of the company, we can see all four aspects of analysing the
company. We can see that the company has a strong foundation in the textile industry. It is not a
new company and it has all the capital asset needed to establish itself as a company in the industry.
However, it is lacking in funds that is a result of the low marketing effort and the negative side
effect of being a family business. In tackling this problem there are options that the company may
consider. These options include, partnership and changing the status of the company into a public
7

limited company. These options however will distort the basis of the company as a family business.
By using the options it will involve other people in the company besides the family.

5.2. 7Ps Analysis

7P
Product

Current Situation

Outdated Products
The custom order clothing

Price

Refresh products and items

low purchasing power of the

community
Outdated products
experience degrading prices

Not strategic placement of

the store
The community that is
surrounding the store has
low purchasing power

Minimum effort for

marketing
Low allocated budget for
marketing
Unskilled employees in the
marketing department
No above the line marketing
Minimum below the line
marketing

sure it aligns with the

production cost
Degrading prices should still
be profitable

Move the location of the

Promotion

being sold in the store

Increase the standard for
quality control to assure
high quality products
Involve more machinery for
larger output

Relatively low prices for the Maintain pricing but make

Place

service is slow in production

and produces medium
quality products
It has a variety of products
for all ages

Suggested Action

store or add sign boards so

that people are aware of the
store
Move to a surrounding with
much higher purchasing
power
Increase above the line
marketing

Increase allocated budget for

marketing
Increase above the line
marketing
Change the status of the
company into a public
limited company to be able
to gain money from selling
shares

7P
People

Current Situation

Unskilled and untrained

employees
Each department has its own
employees
The CEO is directly
involved in the day to day
activity of the store

Suggested Action

Provide sufficient training

Physical Evidence

The company owns a

Process

Renovate the store so that it

headquarter and a store.

It has 40 employees
It has the tools and
machinery to run the custom
order clothing service

Custom order clothing

service is done manually
with the help of machinery
and tools
Manual labor produces
medium quality products

for the employees based on

the department theyre
working on
Increase the standard for
employee who wants to
work
Change the mindset of the
company in hiring
employees from families, to
qualified cnadidates
has a much more appealing
design that will attract
customers

Involve more machinery in

production to increase
productivity as well as
quality of the produced
products.
Provide more training for
manual labor to increase
quality of the products

The 7Ps analysis provides and in-depth analysis of the seven important aspects of a company. Here i
provide what the company is currently at regarding the seven aspects. Then i provide a relevant
advice on improving each of the seven aspects. I used the 7Ps instead of the 4Ps because it analyses
more aspects that is as important as the original four. The more aspect that is being analysed, the
more information we can gather from the company, thus making our judgement on the company
more accurate than just basing it on the 4Ps. Based on the 7Ps it seems that there are a lot of things
that needs to be done to help improve the financial status of the company. In terms of its stores, the
company should renovate its stores to have a much more appealing look to attract customers as well
as refresh the items being sold in the store. For its custom order clothing service the company
9

should involve more machinery in the making process to sustain high quality products and higher
production output for maximum sales.

10

6. Conclusions
There are lots of factors that are causing the low sales of PT. Mitra Genesaret Texindo. Internal and
external factors plays a huge role in the sales of the company. Though both plays a huge role we can
clearly see that Internal factors plays the major role in the downfall of the company. Ironically, these
internal factors can be controlled by the stakeholders in it, such as quality control standard, quality
of the employees, and many others. These internal constraints can be tackled easily by the
stakeholders if they were to put aside their ego and not letting personal relationship taking over
professionalism. External factors such as the low purchasing power community that surrounds it
may be a hard thing to control, but it should have been in consideration before opening a store in the
particular area.

The decreasing sales of the company seems to be caused by the decisions made by the company
itself. The way the company operates and how it hires its employees shows how careless decisions
presents a lethal impact towards the company. The company should consider restructuring,
reorganising, and rethink the way they operate, what the company stands for, and how they hire
their employees. However, the company has all it needs to change its falling sales. They have the
right capital and sufficient amount of employees that are in need of training. It needs the right
decision to get back on its feet.

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7. Recommendations
In order to tackle internal factors that are negatively causing sales of the company it is
recommended that the company should:

Refresh products or items being sold

New products follows the fashion trends of the society. With the most up to date
products in the store it will attract attention of customers. With lots of customer it
would increase sales. With out refreshing the items, the items on display will just
get older and it would lose its value. Refreshing products should also follow the
current fashion trend in the society.

Provide training for employees

Employees are ones who run the company on a daily basis. Trained and skilled
employees would know how to persuade customers to buy products, have high
productivity, have high creativity, and will positively impact the sales through the
department theyre assigned to.

Change the status of the company to a public limited company

The company is in need of huge fund to be able to fix it self. Without funds, all of
the solutions cant be applied. Selling shares to the public is a great source of
finance. Besides getting money from it, the liability of the company would be
spread evenly through out the shareholders.
These are the recommended action that are to be taken into consideration by the company to be able
to tackle external factors that are negatively causing sales of the company:

Create strategic partnership

If the company does not want to be a public limited company, a strategic
partnership should be considered because of the mutual relationship. In a strategic
12

partnership, both sides should benefit one another. Strategic partnership should
also help funding problem.

Increase above the line marketing

Since the community surrounding the store has low purchasing power, the
company needs to push its above the line marketing to grow attention in the
people about what the store offers. Above the line marketing would be seen
clearly by the people.

Store renovation and remodelling

An attractive store would attract people well. If the store does not produce a good
first impression, no one would visit the store. First impression is very important in
getting the attention of customers.

13

8. Appendices
8.1. Appendix 1: Interview Questions
1.

What is your position in the company?

2.

Do you like you job?

3.

What is the main problem of the company?

4.

What causes the decreasing sales of PT. Mitra Genesaret Texindo?

5.

How does this decrease affect the productivity and the daily basis operation of the
company?

6.

Does this decrease affect your personal income?

7.

What have been done in tackling this problem? How are the results?

8.

What are the strengths of the company?

9.

How are the losses of the company being covered?

10. Hows the reaction of the surroundings towards the presence of the store?
11. What do you like about the store?
12. What brings you to this store to shop?
13. How are the price and the quality of the items
14. Are the products up to date?
15. How likely are you going to return to this store?

14

9. References
Articles
Marketing Theories The Marketing Mix From 4 P's to 7 P's." Professional Academy. N.p.,

n.d. Web. 12 Feb. 2015.

Marc. "7Ps of Marketing | Additional Elements of Marketing Mix." Entrepreneurial-insights.
N.p., 12 Aug. 2014. Web. 13 Feb. 2015.
Hanlon, Annmarie. "How to Use the 7Ps of the Marketing Mix?" Smart Insights. N.p., 05 Mar.
2014. Web. 19 Feb. 2015.

Text
Hoang, Paul. Business & Management. Melton, Vic.: IBID, 2007. Print.

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