Proposed PT PLN (Persero) Marketing Capability to Realize Induction Stove as A Preferable Option for LPG Substitution and Electrifying Lifestyle Growth

DOI

10.2991/aebmr.k.201222.006How to use a DOI?

Keywords

LPG subsidy burden, marketing capability, induction stove, clean cooking, electricity

Abstract

The Government of Indonesia has been concerned about the Liquid Petroleum Gas (LPG) subsidy burden since the supplies from domestic refineries have become limited in recent years. Meanwhile, it can be freely bought by all segments, instead of only being accessible for the poor. Therefore, the government formulated a program to replace LPG with induction stove, dimethyl ether, and city gas network. The optimistic target is to reach 18% of households using an induction stove in 2050. There are some barriers to achieving this target, such as customers perceived that induction stoves and electricity are expensive. They are also worried about electricity outage, accessibility, compatibility, durability and security of stoves. However, the business potential of induction stoves is quite promising that could reach 6.44% additional revenues in 2050. The aim of this study is to analyze how to strengthen the marketing capability of PT PLN (Persero) in popularizing induction stoves as a preferable option for households to switch their cooking fuel from LPG to electricity. The results of the study show that marketing capabilities need to be strengthened in Customer Relationship Management (value delivery network and complaint handling), New Product Development (features and sales team) and Brand Management (marketing communication). Based on the results, most of the customers are interested in using an induction stove (63,36%), but just a few of them are willing to switch (15,7%). Thus, strengthening marketing capability is needed, as well as focusing on defining the market penetration and customer profiling. Furthermore, a business ecosystem needs to be built through proposing Government regulation, encouraging innovation of induction stoves from the producers, and collaboration promotion programs.

Copyright

© 2020, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Rizda Noverita
AU  - Dr Jacob Silas Mussry
PY  - 2020
DA  - 2020/12/23
TI  - Proposed PT PLN (Persero) Marketing Capability to Realize Induction Stove as A Preferable Option for LPG Substitution and Electrifying Lifestyle Growth
BT  - Proceedings of the International Conference on Business and Management Research (ICBMR 2020)
PB  - Atlantis Press
SP  - 36
EP  - 44
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.201222.006
DO  - 10.2991/aebmr.k.201222.006
ID  - Noverita2020
ER  -