MARKETING PRACTICES AND PROBLEMS OF FURNITURE ENTERPRISES IN GREATER JAKARTA AREA

Abstract.This study aimed to determine the marketing practices and problems of the furniture and handicraft industry in Greater Jakarta Area. This study uses descriptive method of research. Data obtained by using questionnaire and followed by interview to obtain further opinions of the respondents. Relevant tables and matrices were generally presented to interpret and analyse the study. The types of products produced were bedroom furnishings, dining room sets, living room sets, chairs, tables, decors and accessories. Methods of introducing the products to the buyers were through trade fairs or trade mission, distribute brochures and catalogue, by website or instragram. The export destinations were the United states of America, United Kingdom & Ireland, France, Germany, Netherlands, Belgium, Italy, Spain, Japan, Canada, Mexico, and United Emirate Arab. The pricing strategy applied, by (full cost) plus mark-up, by (manufacturing cost) plus mark-up, and some others by (prime cost) plus mark-up. The most effective promotion activities were trade fairs (exhibition), through instragram or website, email correspondence and distribution of product catalogue and brochures. Among the most severe problems encountered by furniture and handicraft industry were: competition from local and foreign producers especially who had more advanced production technology, high interest rate imposed by the bank, unfavorable tax rate, increase of manpower wage rates, price setting and unpredictable demand situation. The entrepreneurs expect specific type of assistance from the government such as subsidy to participate in trade fairs, improved support facilities like manpower training, product design.

1.  UEU-Article-19231-5_0704.pdf - 559 KB

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