ANALYZING FERTILIZER DISTRIBUTION SYSTEM USING QUALITATIVE METHODS THE CASE OF PT HOBSON INTERBUANA INDONESIA AT KARAWANG DISTRICT
FINAL PROJECT
By Reynaldi Tri Adytia 19007133
Undergraduate Program School of Business and Management Institut Teknologi Bandung
ABSTRACT Nowadays, the agriculture industry has quite developed throughout the years. Nowadays, there are various agricultural products companies that produces, supply, and sell agricultural supporting products in the market. In the recent years, the agriculture industry has undergone numerous changes and re-structuring. At 1811, Raffles announced that a land tax would be enforced in Indonesia, which burdened the feudal lord of Java. With the land tax law, the feudal lords of Java reacted violently, which cause the Diponegoro or Javanese war. At 1830 until 1870, an arrangement of cultur stelsel (forced planting) was enforced by Governor General Johannes van den Bosch. After the independence of Indonesia, the agriculture sector undergoes various changes. At 1960, UU No. 5/1960 Peraturan Dasar Pokok-pokok Agraria (UUPA) was born, where its essential purpose is to lay the groundwork for the preparation of the national agrarian law, to unite and simplify the law of the land, and laid the foundations of legal certainty over land rights for all citizens. In the reformation era, Indonesia agricultural network changed dramatically. With the green revolution and the end of Orde Baru era, agricultural enhancement products started to be promoted by agricultural companies. Various new products are being introduced to the market in order to increase the crop productivity of Indonesia agriculture sector. This research focuses on PT Hobson Interbuana Indonesia as one of the producer of agricultural supporting product. PT Hobson Interbuana Indonesia produces 3 main products which are ZPT Hobsanol 5 EC, PMMG Rhizo-Plus, and PMMG Rhizo-Nut Plus. The only free market product is ZPT Hobsanol 5 EC, which is the main product that is used for this research. The research is held in the Karawang District due to PT Hobson Interbuana Indonesia has just only begun to enter its products into the Karawang market. The main objective of this research is to identify the problems of PT Hobson Interbuana Indonesia’s product distribution, which is ZPT Hobsanol 5 EC, in the Karawang District. The research conclusion and recommendations that are generated are going to be given towards PT Hobson Interbuana as feedbacks. The data analysis in this research are done by looking at the various project tendering process from the government and analyzing PT Hobson Interbuana Indonesia’s distribution and promotion through a modified AISAS framework from Dentsu Group. The modified AISAS framework has been used to determine PT Hobson Interbuana Indonesia’s promotion strategy, as well as the effectiveness of its product distribution through government marketing channel. Hopefully, this paper will help PT Hobson Interbuana Indonesia to develop new marketing strategy and distribution channel in distributing ZPT Hobsanol 5 EC.
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ABSTRAK Saat ini, teknologi industri pertanian sudah sangat berkembang. Sudah ada banyak perusahaan produk pendukung pertanian yang memproduksi, men-suplai and menjual produk pendukung pertanian di pasaran. Di beberapa tahun belakang ini, industri pertanian telah melalui beberapa perubahan dan re-strukturisasi. Pada tahun 1811, Raffles mengumumkan hukum pajak tanah akan dilakukan di Indonesia, yang membebani rajaraja Jawa. Para raja Jawa merespon dengan aggresif, yang pada akhirnya menyebabkan perang Diponegoro atau perang Jawa. Pada tahun 1830 sampai 1870, Gubernur Jenderal Johannes van den Bosch, melakukan cultur stelsel (tanam paksa). Setelah kemerdekaan Indonesia, sektor pertanian melalui beberapa perubahan. Pada tahun 1960, UU No. 5/ 1960 tentang Peraturan Dasar Pokok-pokok Agraria (UUPA) dibentuk, dimana pada dasarnya mempunyai tujuan untuk memberi landasan dasar untuk persiapan undang- undang agraris nasional, untuk mempersatukan dan mempermudah hukum tanah. Pada era reformasi, jaringan distribusi pertanian berubah secara drastis, dengan adanya green revolution dan berakhirnya era Orde Baru, peningkatan produk pertanian mulai dipromosikan oleh perusahaan-perusahaan pertanian. Berbagai produk baru diperkenalkan ke pasar untuk meningkatkan produktivitas tanaman sektor pertanian Indonesia. Penelitian ini berfokus pada PT Hobson Interbuana Indonesia sebagai salah satu produsen produk pendukung pertanian. PT Hobson Interbuana Indonesia memproduksi 3 produk utama yaitu ZPT Hobsanol 5 EC, PMMG Rhizo-Plus, dan PMMG Rhizo-Nut Plus. Produk satu-satunya yang dijual di pasar bebas adalah ZPT Hobsanol 5 EC, yang merupakan produk utama yang digunakan dalam penelitian ini. Penelitian ini dilakukan di Kabupaten Karawang karena PT Hobson Interbuana Indonesia baru saja memulai memasok produknya ke pasar Karawang. Tujuan utama dari penelitian ini adalah untuk mengidentifikasi masalah distribusi produk PT Hobson Interbuana Indonesia, yaitu ZPT Hobsanol 5 EC, di Kabupaten Karawang. Kesimpulan dan rekomendasi yang dihasilkan dari penelitian ini akan diberikan terhadap PT Hobson Interbuana sebagai feedback. Analisis data dalam penelitian ini dilakukan dengan melihat berbagai proses tender proyek dari pemerintah dan analisis distribusi dan promosi PT Hobson Interbuana Indonesia melalui kerangka modifikasi AISAS dari Dentsu Group. Kerangka AISAS yang dimodifikasi telah digunakan untuk menentukan strategi promosi PT Hobson Interbuana Indonesia, serta menentukan distribusi produk yang paling efektifg melalui saluran pemasaran pemerintah. Diharapkan tulisan ini dapat membantu PT Hobson Interbuana Indonesia dalam mengembangkan strategi pemasaran baru dan saluran distribusi yang efektif dalam mendistribusikan ZPT Hobsanol 5 EC.
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VALIDATION PAGE
ANALYZING FERTILIZER DISTRIBUTION SYSTEM USING QUALITATIVE METHODS THE CASE OF PT HOBSON INTERBUANA INDONESIA AT KARAWANG DISTRICT
By: REYNALDI TRI ADYTIA ID No: 19007133
Undergraduate Program School of Business and Management Institut Teknologi Bandung
Validated By
(Ir. Budi Permadi Iskandar, MSP.) iii
FOREWORD First, I wanted to thank the only Allah SWT for His guidance and might. Only because the direction from Him, that I can complete this final project report. Moreover, I also would like to thank: 1. My whole family With all of the help, guidance, and prayer that they gave the author in completing this final project report. 2. Mr. Yarri, Mr. Hasan, and all of the employees of PT Hobson Interbuana Indonesia In guiding me and letting me see and experience a delightful internship program at PT Hobson Interbuana Indonesia, while helping me by giving the necessary information about PT Hobson Interbuana Indonesia to complete this final project report. 3. Mr. Budi Permadi Iskandar In guiding, helping, and supporting me throughout the writing process in finishing this final project report. 4. Ms. Alissa Paramitha With all of the help, prayer, and suggestions that really helped me in completing this final project report. ( Alhamdulillah, we made it! ) 5. Mr. Muhamad Nizar As my best friend and housemate, who kept me company while writing this final project report. 6. The author’s housemates For Muhamad Arfan, Anar Arsyid, and others in increasing the author’s optimism during the completion of this report. 7. The whole 2010 SBM ITB family For their help, encouragement, and believes that the whole SBM ITB 2010 family will graduate and be successful in the future. (See you at the top guys!) 8. School of Business and Management, ITB as whole For letting me experience 3 years of education, and helping me to see the big picture of the world. Furthermore, this report is created to help others who read it to understand the distribution problems that PT Hobson Interbuana face, that are going to be given as feedbacks for PT Hobson Interbuana Indonesia. Eventually, I wanted to apologize for all of the content errors and miss judgments in this report, and thank the readers for reading this report while keeping an optimism that this report will increase the reader’s knowledge in many ways.
Best Regards,
Reynaldi Tri Adytia Bandung, July 2010
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LIST OF CONTENTS ABSTRACT ..............................................................................................................................................
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ABSTRAK .................................................................................................................................................
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VALIDATION PAGE .............................................................................................................................
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FOREWORDS ..........................................................................................................................................
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LIST OF CONTENTS ..............................................................................................................................
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LIST OF FIGURES ...................................................................................................................................
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LIST OF TABLES .....................................................................................................................................
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LIST OF APPENDIXES...........................................................................................................................
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CHAPTER 1 INTRODUCTION ............................................................................................................
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1.1 Background ..........................................................................................................................
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1.2 Problem Statement ..............................................................................................................
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1.3 Research Objective ..............................................................................................................
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1.4 Research Limitations ...........................................................................................................
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CHAPTER 2 THEORETICAL FOUNDATION...................................................................................
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2.1 Value Delivery Network .....................................................................................................
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2.2 Marketing or Distribution Channel ...................................................................................
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2.3 AIDA, AIDMA, and AISAS Marketing Framework .......................................................
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2.4 Indonesia’s Agriculture Network ......................................................................................
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2.5 PT Hobson Interbuana Indonesia’s Distribution Channel .............................................
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CHAPTER 3 METHODOLOGY ............................................................................................................
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3.1 Gabungan Kelompok Tani (Gapoktan) ...................................................................................
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3.2 Agricultural Distributors ....................................................................................................
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3.3 Research Steps ......................................................................................................................
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CHAPTER 4 DATA ANALYSIS ...........................................................................................................
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4.1 Government Agricultural Project Tendering ...................................................................
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4.2 PT Hobson Interbuana’s Performance through the AISAS Framework ......................
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CHAPTER 5 CONCLUSION AND RECOMMENDATION ............................................................
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5.1 Research Conclusion............................................................................................................
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5.2 Recommendation .................................................................................................................
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REFERENCES ..........................................................................................................................................
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APPENDIXES APPENDIX 1 PT Hobson Interbuana Indonesia’s Company Profile APPENDIX 2 Interview Script with 8 Gapoktan Leaders in Karawang APPENDIX 3 Interview Script with Ir. Nachrowi Muhamad Nur as the Head of the Department Agriculture and Forestry of Karawang District APPENDIX 4 Interview Script with Mr. Taufan Gojali as One of the Agriculture Distributors in Karawang
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LIST OF FIGURES
Figure 2.1 Conventional Marketing Channel .............................................................................................
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Figure 2.2 Dentsu’s AISAS Framework ....................................................................................................
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Figure 2.3 Modified AISAS Framework ...................................................................................................
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Figure 4.1 Agriculture Project Bidding Process ........................................................................................
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Figure 4.2 ZPT Hobsanol 5 EC Distribution Channel ...............................................................................
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LIST OF TABLES
Table 2.1 PT Hobson Interbuana Indonesia’s Sales in the Karawang District ..........................................
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Table 4.1 PT Hobson Interbuana’s Performance According to the Modified AISAS Framework............
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LIST OF APPENDIXES
APPENDIX 1 PT Hobson Interbuana Indonesia’s Company Profile APPENDIX 2 Interview Script with 8 Gapoktan Leaders in Karawang APPENDIX 3 Interview Script with Ir. Nachrowi Muhamad Nur as the Head of the Department Agriculture and Forestry of Karawang District APPENDIX 4 Interview Script with Mr. Taufan Gojali as One of the Agriculture Distributors in Karawang
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