p–ISSN: 2723 – 6609 e-ISSN: 2745-5254
Vol. 5, No. 12, December 2024 http://jist.publikasiindonesia.id/

Indonesian Journal of Social Technology, Vol. 5, No. 12, December 2024 6159

Proposed Marketing Strategy for the Sustainability of
Biomass Producer Companies (PT XYZ Case Study)

Aulia Rizki Utami1*, Bustanul Arifin Noer2

Institut Teknologi Sepuluh Nopember, Indonesia
Email: [email protected]*, [email protected]

*Correspondence

ABSTRACT
Keywords: marketing
strategy, ife matrix efe, ie
matrix, swot matrix.

PT XYZ is a biomass production company established in
2021, dedicated to sustainable biomass solutions,
positioning itself at the forefront of an industry with
significant growth potential given the global urgency for
clean energy solutions. Despite operating in a high-growth
potential sector, PT XYZ experienced stagnation and even a
decline in product sales in 2023. To understand the root
causes and formulate effective solutions, this study employs
various analytical methods, including the Internal Factor
Evaluation (IFE) Matrix and the External Factor Evaluation
(EFE) Matrix to assess the internal and external factors
affecting the company's performance. The Internal-External
(IE) Matrix and SWOT Matrix were then used to match these
factors and develop various strategic alternatives. Finally,
the Quantitative Strategic Planning Matrix (QSPM) was
used to objectively evaluate the strategic alternatives and
generate optimal marketing strategy recommendations for
PT XYZ. Based on the analysis using the IFE and EFE
matrices, PT XYZ is positioned in the grow and build
quadrant with an IFE score of 3.29 and an EFE score of 3.20.
Through SWOT analysis, seven alternative marketing
strategies were identified. Subsequently, QSPM analysis
prioritized these strategies, with obtaining SVLK
certification as the top priority, followed by increasing
awareness and branding, developing innovation and product
diversification, expanding into new markets, enhancing
human resources in sales and marketing, increasing
production capacity, and improving education and
awareness about renewable energy.

Introduction

In the last decade, the energy sector has undergone a significant transition towards
cleaner and more sustainable energy use. The government, based on the national energy
policy (PP number 79 of 2014), has set an ambitious target for the New and Renewable
Energy (NRE) mix to reach 23% of the total national energy by 2025 (MEMR, 2020) and

Proposed Marketing Strategy for the Sustainability of Biomass Producer Companies
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Indonesian Journal of Social Technology, Vol. 5, No. 12, December 2024 6160

reduce emissions by 29% by 2030 by the National Contribution (David, 2011). The
emission reduction target is focused on 5 sectors, of which the 2 largest sectors are forests
at 17.2% and energy at 11% (the energy sector contributes 314 million tons of CO2)
(Alamanda, Anggadwita, Raynaldi, Novani, & Kijima, 2019).

Indonesia has shown a strong commitment to developing renewable energy,
especially through the use of biomass as an alternative energy source. According to the
Presidential Regulation of the Republic of Indonesia No. 5 of 2006 concerning Energy,
biomass is included in the category of renewable energy sources that can be sustainable
if managed properly (Satta, Parola, Vitellaro, & Morchio, 2021). In Indonesia, the
potential of biomass for energy generation includes wood waste (sawdust, scraps, chips,
bark, firewood plantations, forest residues), agricultural waste (rice husks, straw,
plantation crop trimmings, corn cobs), grasses, animal manure, and other materials. Data
from the Directorate General of New, Renewable Energy, and Energy Conservation
(EBTKE) highlights the extraordinary potential of biomass/bioenergy in Indonesia, which
will reach 57 GW in 2023 (Directorate General of EBTKE, 2022) (Kishnani & Sharma,
2024).

PT XYZ is a biomass production company that was established in 2021 and is
dedicated to sustainable biomass solutions so it is at the forefront of the industry with the
potential to grow rapidly given the global urgency for clean energy solutions (Suhartanto,
2024). PT XYZ has its head office in Jakarta and has 2 biomass production facilities
operating in the West Java region, namely in the Subang and Karawang areas. PT XYZ's
expertise lies in the production of biomass pellets through the use of rice husk waste and
wood waste.

Table 1

Previous research
It Title and

Author

Object Method Findings Linkages

1. (Budianto

et al., 2023)

Analysis of

the

Selection of

Marketing

Strategies

Using

SWOT and

QSPM

Methods at

PT. XYZ

PT XYZ

(Industrial

Refrigerat

ion

System)

SWOT -

QSPM

From the research

conducted, an IFE

score of 2.8792 and

an EFE score of

2.739 for PT. XYZ.

By referring to the

IFE and EFE scores,

the position of PT.

XYZ belongs to V

(Hold and

Maintain) cells.

SWOT and QSPM

analysis shows that

It is related to the use of

IFE and EFE matrices

as the initial

identification stage, the

use of IE and SWOT

matrices in the process

of formulating

marketing strategies,

and the use of QSPM in

strategic decision-

making.

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6161

the main strategy

that needs to be

implemented is to

improve the quality

of sales human

resources by

achieving a TAS

value of 1.4177.

2. (Kuc &

Wackowsk,

2021)Apply

ing QSPM

Matrix for

Business

Strategy

Analysis: A

Case of

Hung Hau

Corporatio

Hung Hau

Corporati

(Industrie

s focusing

Agricultur

Education

, and

Distributi

sectors)

SWOT -

QSPM

Based on the total

attractive points of

the strategies that

have been obtained,

by the development

orientation and

long-term goals, the

company is advised

to prioritize the

selection of

strategies as

follows: (1) Market

development

strategy (2) Market

penetration strategy

(3) Company

restructuring, and

(4) Growth through

vertical integration.

The journal is related to

the thesis proposal in

the use of the SWOT

matrix to determine the

SO, ST, WO, and WT

strategies, which are

analyzed through

QSPM to produce

conclusions.

Several previous studies have used the SWOT-QSPM approach and applied it in
various contexts. The difference in the research conducted by the researcher from the
previous research is in the research object where this research specifically focuses on the
formulation of the strategy of PT XYZ, a biomass production company that was newly
established in 2021 (Santoso et al., 2024).
This research was conducted with the following objectives:
1. Identify what are the strengths, weaknesses, opportunities, and threats in PT XYZ
2. Formulate marketing strategies that can be carried out based on PT XYZ's SWOT

analysis

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Method

This study applies a descriptive approach without conducting a hypothesis test,
which is a research method used to explain and illustrate social phenomena through
various variables that are related to each other.
Research Location and Schedule

This research was conducted at PT XYZ, one of the industries engaged in biomass
production, which is located at Jalan RS Fatmawati No.39, South Jakarta, DKI Jakarta.
The research lasted for 4 months from March 2024 to June 2024
Determination of Respondents

In the stage of determining respondents for this study, the researcher will contact
the decision-makers in the relevant companies. This action is intended to increase the
validity of the data as well as ensure its direct implications within the company. The
following is a list of respondents who will be contacted for this study:
1. Respondent 1: Founder and commissioner of PT XYZ
2. Respondent 2: President Director of PT XYZ
3. Respondent 3: Director of Operations of PT XYZ

By involving respondents representing various levels and functions within the
company, this research is expected to produce comprehensive and relevant insights in
formulating marketing strategy proposals for PT XYZ's sustainability.
Data Analysis Techniques

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Figure 1 Flowchart of Research Methodology

Data Collection Stage

This stage is carried out to gain a thorough understanding of the actual situation at
PT XYZ. The data needed is divided into two categories, namely:
1. Primary Data

Primary data is obtained through interviews with related parties in the company. In
addition, the primary data collection process is also by conducting surveys or direct
observations in the field.
2. Secondary Data

Secondary data is obtained from existing sources such as financial reports, market
data, and industry information that have been published. Secondary data helps
complement the information obtained from primary data.
Data Analysis and Processing Stage

This stage is carried out to analyze and process the data that has been compiled
previously. This stage is divided into two parts of the analysis, namely:

Proposed Marketing Strategy for the Sustainability of Biomass Producer Companies
(PT XYZ Case Study)

Indonesian Journal of Social Technology, Vol. 5, No. 12, December 2024 6164

1. Internal Factor Analysis
Internal factor analysis involves the use of STP (Segmentation, Targeting,

Positioning) and 4P Marketing Mix which consist of Product (product or service offered),
Price (price charged), Place (distribution place), and Promotion (promotion strategy).
2. External Factor Analysis

External factor analysis includes PESTEL and Porter's 5 Forces. PESTEL evaluates
the political, economic, social, technological, environmental, and legal factors that affect
the business. Porter's 5 Forces analyze five forces that affect the competitiveness of the
industry: the level of competition between companies, the power of suppliers in
determining price and quality, the power of consumers in choosing products or services,
the threat of newcomers entering the market, and the threat of substitute products or
services.

Results and Discussion

PT XYZ was established with the aim of contributing to the new and renewable
energy sector by utilizing the potential of waste to produce biomass that has added value
(PUTRA, 2024). As a biomass production company, PT XYZ was established on January
18, 2021, and is a subsidiary of the parent company engaged in providing maintenance
and operation services for the oil and gas industry. With a strong background in the energy
industry, PT XYZ leverages its expertise to support the transition to cleaner and more
sustainable energy.
Internal Review of the Company
1. Segmentation

Based on the results of geographical segmentation, PT XYZ's customers are spread
across several districts and cities such as Karawang, Subang, Bandung, Purwakarta,
Indramayu, Serang, and Tangerang. In addition to these geographical segmentations, PT
XYZ also divides the market based on several types of industries as detailed in Table 4.1
which includes:
1) Energy Generation Industry

This segment consists of large companies such as PT PLN that use biomass for
power generation as part of their co-firing initiatives.

2) Manufacturing Industry
Companies that use biomass in their production processes, such as industries

in the agriculture and livestock sectors, textiles, ceramics, cement, and other
industries that have a heating process in their operations.

3) Food Processing MSMEs
Micro, Small, and Medium Enterprises (MSMEs) in the food processing sector

use biomass as a fuel source for daily operations.
4) Biomass Trader

Customers who act as intermediaries or biomass traders who buy products from
PT XYZ to be able to resell to various industries and other customers.

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Table 2
PT XYZ Customer Segmentation by Industry Type

Industry Type Sum Percentage
Generation Industry 2 12%
Manufacturing Industry 8 47%
Trader 4 23%
MSMEs 3 18%

Targeting
PT XYZ strategically targets the niche market by focusing on customers who have

specific needs for biomass. In an industry that is increasingly aware of the importance of
sustainable energy, PT XYZ targets certain segments that require biomass for different
purposes. PT XYZ's main target is PT PLN and other energy generation companies that
have a large and sustainable need for biomass to support a co-firing program that replaces
part of the use of coal with biomass. In addition, PT XYZ also targets large and medium-
sized manufacturing industries that require biomass in their production processes. In this
regard, PT XYZ offers biomass solutions that are not only efficient but also help these
industries meet increasingly stringent environmental regulations (PRAMONO, 2024).

Not only reaching large companies, but PT XYZ also reaches food processing
MSMEs that use biomass as the main fuel in their operations. This segmentation allows
PT XYZ to expand its market reach and provide more efficient and economical energy
solutions for small and medium-sized businesses. In addition, PT XYZ also targets
biomass traders who act as intermediaries between producers and various end customers.
These traders have an extensive network and the ability to distribute PT XYZ's biomass
products to various industrial sectors and other customers, thereby expanding the market
and increasing sales volumes.

With this targeted targeting strategy, PT XYZ seeks to meet the unique needs of
each different market segment, ensuring that each biomass solution offered is not only
relevant but also provides significant added value for customers.
Positioning

PT XYZ positions itself as a provider of quality and sustainable biomass solutions.
PT XYZ emphasizes the production of quality biomass pellets that can be used for a
variety of applications. This focus on quality appeals to customers looking for reliable
and efficient alternatives to fossil fuels.

By ensuring that the pellets produced comply with regulations or industry usage
standards, PT XYZ can build a reputation as a provider of quality and reliable energy
solutions. In addition, PT XYZ also utilizes wood waste and rice husk waste as raw
materials, which is in line with the global trend of increasingly prioritizing renewable
energy sources and environmental conservation. This commitment shows that PT XYZ
is not only focused on profitability but also on environmental responsibility.
Marketing Mix
1. Product

Proposed Marketing Strategy for the Sustainability of Biomass Producer Companies
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PT XYZ offers two types of biomass products, namely rice husk pellets and wood
pellets. To ensure product quality and excellence, PT XYZ has conducted a series of
laboratory tests on both types of pellets. Table 4.2 is a comparison of the quality of PT
XYZ rice husk pellets with SNI 9125:2022.

Table 3

Comparison Table of Quality of PT XYZ Rice Husk Pellets with SNI 9125:2022

Parameters SNI 9125:2022
Pellet Quality of

PT XYZ
Gross Calorific Value
(kcal/kg)

> 3,200 3.576

Ash Content (%) < 20 17,07

Moisture Content (%) < 10 6,3
Volatile Substance Content
(%)

> 60 62,29

Fixed Carbon Content (%) > 13 14,34

Chlorine Content (%) < 0.17 0,14

Potassium content (K20) (%) < 3 1,84

Silica (SiO2) Content (%) < 93 90,53

Sodium (Na2O) (%) < 2.6 0,46

Total Sulfur Content (%) < 0.14 0,04
Ash Fusion Temperature
(Degree C)

> 1,300 > 1,500

Hardgroove Grindabillity
Index

> 25
31

The test results show that PT XYZ's rice husk pellet products not only meet the
standards but also exceed the standards set by SNI 9125:2022. The high gross calorific
value, low ash, and moisture content, as well as the content of other substances that meet
the standards, prove that PT XYZ rice husk pellets are quality products.
2. Price

PT XYZ's pricing strategy is competitive, taking into account production costs,
market prices, and product-added value. The company strives to offer attractive prices
without sacrificing quality, in order to attract and retain customers. The price of rice husk
pellets offered by PT XYZ ranges from IDR 1,100,000 – to IDR 1,300,000 while wood
pellets range from IDR 1,500,000 to IDR 1,800,000. The prices offered are competitive
in the market, providing significant value for customers looking for efficient and
environmentally friendly energy solutions.
3. Place

PT XYZ's products are distributed from two main production facilities located in
Subang and Karawang, West Java. The production facility in Subang focuses on biomass
pellets from rice husk waste, while the facility in Karawang processes wood waste into
wood pellets. This strategic location allows PT XYZ to reach various customers in the
industrial sector and MSMEs in the West Java region and its surroundings efficiently.

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4. Promotion
PT XYZ uses a marketing approach that focuses on B2B promotion, targeting

energy generation companies and other industries that need biomass for energy
generation or heating processes. In addition, PT XYZ actively participates in industry
exhibitions and conferences related to clean and sustainable energy to improve its
business network.
External Review of the Company
1. Politics

Government regulations that support renewable energy, such as the New and
Renewable Energy (NRE) mix target of 23% by 2025, are very beneficial for PT XYZ.
This policy encourages the demand for biomass products, which is the main focus of PT
XYZ. Strict environmental regulations also ensure that biomass products meet certain
standards, which can affect production costs but also improve the quality of PT XYZ
products. In addition, the Government of Indonesia has implemented various policies to
support the biomass industry, for example, by launching a coal-fired power plant co-firing
program that encourages the use of biomass along with coal for power generation.

PT XYZ's relationship with government agencies is quite good, especially
considering the importance of the company's role in supporting renewable energy
policies. PT XYZ actively participates in government programs and works closely with
relevant agencies to ensure regulatory compliance. For example, PT XYZ participated as
a draftsman in the preparation of national standards for the use of biomass for power
plants in Indonesia.

2. Economic
Stable economic conditions are likely to increase the demand for biomass products

as the industrial and energy sectors are more likely to invest in renewable energy
solutions. On the contrary, in adverse economic conditions, investment in alternative
energy could decrease, which will negatively impact the sales of PT XYZ.

On the other hand, fluctuations in the price of raw materials such as wood waste
and rice husk waste can affect PT XYZ's production costs. If the price of raw materials
rises, production costs will increase, which may force companies to increase the selling
price of their products. Conversely, a decrease in the price of raw materials can help PT
XYZ offer more competitive prices. In addition, inflation may increase PT XYZ's
operating costs, including raw materials, labor, and transportation costs. This can lead to
an increase in selling prices that may reduce consumer purchasing power. On the other
hand, deflation can suppress the selling price of products, which can reduce profit margins
if production costs remain high.
3. Social

Social trends that support sustainability and the use of clean energy are very positive
for PT XYZ. Increasing public awareness of the environmental impact of fossil fuels is
encouraging consumers to switch to more environmentally friendly biomass products.
Demographic changes, such as an increase in the environmentally conscious population,

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as well as lifestyle changes that favor more green products, can help increase the demand
for PT XYZ biomass products. Currently, PT XYZ still feels that many people still do not
know more details about the use of biomass as an energy source. This can be because
biomass energy solutions are still relatively new to some people.
4. Technological

Technological advances can improve the production efficiency and product quality
of PT XYZ. By adopting new and precise technologies, companies can reduce production
costs, increase output, and produce products with more consistent quality. PT XYZ
continues to strive to adopt the latest technology in its operations such as the use of more
efficient and environmentally friendly production equipment. This helps the company to
remain competitive and meet high-quality standards. In addition, PT XYZ also invests in
research and development to create product innovations and efficient production
processes. This focus helps the company stay at the forefront of the biomass industry and
continuously improve the quality and efficiency of its products.
5. Environmental

A strict environmental policy ensures that PT XYZ must adhere to certain standards
in its production process, this can increase costs but also ensure that PT XYZ's products
are environmentally friendly. Compliance with these regulations helps to improve the
company's reputation as a responsible manufacturer.

Bargaining Power of Suppliers

PT XYZ cooperates with several major suppliers who provide raw materials such
as rice husk waste and wood waste and has established cooperation contracts to maintain
supply stability. Although suppliers can increase prices or lower the quality of raw
materials, PT XYZ is not very dependent on a specific supplier due to the existence of
alternative suppliers in the market. Dependence on certain suppliers can be minimized by
looking for alternative suppliers that offer quality and competitive prices. However,
potential obstacles remain, especially those caused by unfavorable natural conditions
such as crop failure for rice husk waste. The supplier's negotiating power against PT XYZ
is not very strong because PT XYZ has several supplier options and can switch to others
if needed.
Bargaining Power of Buyers

PT XYZ's main customers include the energy generation industry such as PT PLN,
the manufacturing industry, MSMEs in the food processing sector, and biomass traders.
Although there are several other suppliers in the market, PT XYZ has built a reputation
for quality and environmentally friendly products, providing greater bargaining power to
its customers. Customers may be sensitive to price changes, but the quality, and
sustainability of the product as well as the supply capacity of PT XYZ are decisive factors.
Threat of Substitutes

There are substitute products or services that can replace PT XYZ's biomass
products such as alternative energy sources such as diesel or wind energy. Customers can
switch to replacement products, but it requires greater initial investment and technology

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adaptation. New technologies that threaten the position of biomass products in the market
may emerge, but PT XYZ can overcome them by continuing to innovate and invest in
research and development.
Rivalry Among Existing Competitors

The biomass industry has several major competitors operating with varying market
shares. Currently, PT XYZ has two main competitors operating around its operating area,
namely PT ACE and PT GEN. However, this competitor only produces one type of
biomass, namely wood pellets, and has a production capacity that is not larger than PT
XYZ. With a focus on the production of two types of biomass (rice husk pellets and wood
pellets), PT XYZ has the advantage of product diversification that its main competitors
do not have.
Strengths
1. Quality Products

PT XYZ's rice husk pellet and wood pellet products have gone through a series
of laboratory tests that prove that they not only meet but exceed the standards set by
SNI (Indonesian National Standard). This provides a competitive advantage as
customers can be assured of better product quality and efficiency compared to products
from competitors.

2. Diversification of Biomass Products
PT XYZ offers two main types of products: rice husk pellets and wood pellets.

This diversification allows companies to meet the needs of various market segments,
from large industries to MSMEs, and reduce business risks that may arise from relying
on just one type of product.

3. Strategic Location of Production Facilities
PT XYZ's production facilities are located in Subang and Karawang, West Java,

which are close to the source of raw materials and major markets. This location
facilitates distribution access and reduces logistics costs, thereby increasing the
company's operational efficiency.

4. Good Relations with Government Agencies
PT XYZ has good relationships with various government agencies, especially

those related to renewable energy regulations. Active participation in government
programs and the preparation of national standards helps companies stay compliant
with regulations and get the necessary support for their operations.

5. Competitive Pricing
PT XYZ implements a competitive pricing strategy by considering production

costs, market prices, and product-added value. The prices offered are attractive to
customers without sacrificing quality, thus helping the company in attracting and
retaining customers.

Weaknesses
1. Limited Human Resources in the Field of Sales & Marketing

PT XYZ is facing a shortage of experts in the field of sales & marketing, which
affects the company's ability to expand its market reach and increase sales volume.

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Indonesian Journal of Social Technology, Vol. 5, No. 12, December 2024 6170

Some employees also concurrently hold positions due to limited human resources,
which can reduce operational efficiency.

2. Haven't Obtained SVLK Permits
The SVLK (Timber Legality Verification System) permit is an important

certification to increase the credibility of the product in the market. Without this
permit, PT XYZ may face difficulties in selling products to customers who are more
concerned about the legality and sustainability of raw materials.

3. Limited Production Capacity
The current production capacity, although it is large enough, is still not enough

to meet the increasing demand. This can be an obstacle to the company's growth if it
is not immediately overcome by increasing production capacity. Some prospective
buyers also often consider PT XYZ's production capacity before making a purchase
decision to ensure supply sustainability.

4. Lack of Education and Promotion Efforts on the Benefits of Biomass
Many people and industry players still do not fully understand the benefits and

use of biomass as an alternative energy source. This shows that the education and
promotion efforts of PT XYZ are still ineffective, causing the market for biomass
products to be limited. PT XYZ needs to improve communication and education
strategies to expand the understanding and acceptance of biomass products in society
and industry.

External Environmental Analysis of PT XYZ
In addition to analyzing the company's internal factors, analysis of external factors

is also needed in the strategy formulation process. This is a step to be able to identify
external opportunities and threats for the company in competition.
Opportunities
1. Government Regulatory Support for Renewable Energy

The Indonesian government has set a target for the New and Renewable Energy
(NRE) mix of 23% by 2025. This policy creates a great opportunity for PT XYZ to
increase sales of its products as part of the clean and renewable energy initiatives
driven by the government.

2. Increasing Awareness of Clean and Environmentally Friendly Energy
The global trend of increasingly prioritizing sustainability and clean energy

opens up opportunities for PT XYZ to attract customers who care about environmental
impact. This increased awareness is driving the demand for biomass products as an
alternative to fossil fuels.

3. New Technologies that Improve Production Efficiency
The adoption of new technologies in the production process can increase

efficiency, reduce costs, and improve product quality. PT XYZ can take advantage of
technological advancements to stay competitive and meet high-quality standards.

4. Increasing Demand from Industry and MSMEs

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The industrial sector and MSMEs that continue to grow need efficient and
environmentally friendly energy sources. PT XYZ can take advantage of the increased
demand from these sectors by offering appropriate biomass solutions.

Threats
1. Raw Material Price Fluctuations

The price of raw materials such as rice husk waste and wood waste can fluctuate
depending on market conditions and seasons. The increase in raw material prices can
increase production costs and affect the profitability of the company.

2. Potential Entry of New Competitors
Despite significant barriers to entry, there is still a possibility of the emergence

of new competitors that could reduce PT XYZ's market share. New competitors can
take advantage of more advanced innovations or technologies that can attract
customers.

3. The Existence of Other Energy Substitutions
Alternative energy sources such as solar and wind power can be a substitute for

biomass products. If these alternative energy technologies become cheaper and more
efficient, the demand for biomass could decline.

4. Increasingly Stringent Regulations
Increasingly stringent government regulations related to the environment and

renewable energy can increase PT XYZ's compliance and operational costs. While
these regulations can also be an opportunity, companies must ensure that they continue
to comply with applicable regulations to avoid potential legal issues.

Strategy Formulation Stage
The formulation of the strategy can be carried out after a thorough analysis of the

company's external and internal factors has been completed. This process involves three
main stages, namely the input stage, matching stage, and decision stage.
Internal Factor Evaluation (IFE) Matrix

The IFE Matrix is an analytical tool used to evaluate a company's internal strengths
and weaknesses that aims to help companies understand which areas need improvement
and which areas can be the basis for a competitive strategy. Based on the results of the
calculation of internal weights (appendix 3) and the determination of ratings against
internal factors (appendix 5), it was found that the weighted score results as seen in Table
4 of PT XYZ show the main strength in product diversification with the highest score of
0.51, which indicates the company's ability to offer a wide variety of biomass products
that are attractive to the market. Product quality (0.47) and competitive price (0.39) are
also significant advantages that support the company's competitiveness. Strategic location
(0.32) and good relations with government agencies (0.25) provide operational benefits
although they still need to be improved. On the weak side, the lack of SVLK permits
(0.43) and the limitation of human resources in the field of sales and marketing (0.35) are
the main concerns that must be addressed immediately. In addition, the lack of education
and promotion efforts on the benefits of biomass (0.32) and limited production capacity
(0.26) indicates the need for market education and improvement of production facilities.

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Table 4

Internal Factor Score Calculation

It Internal Factors Rating Weight Score

Strength
1 Product Quality 3,67 0,13 0,47
2 Product diversification 4,00 0,13 0,51
3 Strategic location 3,33 0,10 0,32

4
Good relations with
government agencies

2,33 0,11 0,25

5 Competitive price 3,67 0,11 0,39
Weakness

1
HR in the field of sales &
marketing limited

3,00 0,12 0,35

2
There is no SVLK permit
yet

3,33 0,13 0,43

3 Limited capacity 3,00 0,09 0,26

Lack of education and
promotion efforts regarding
the benefits of biomass

3,00 0,11 0,32

Total 3,29

External Factor Evaluation (EFE) Matrix
The EFE Matrix is an analytical tool used to evaluate external opportunities and

threats faced by companies that aim to help companies identify and evaluate external
factors that can affect business performance and strategy. Based on Table 5, PT XYZ has
a great opportunity from increasing demand from industry and MSMEs with the highest
score of 0.52 and increased awareness of the use of clean energy with a score of 0.46,
which supports the potential growth of the market. Government regulatory support for
renewable energy (0.42) and new technologies that improve production efficiency (0.38)
also strengthened the company's position in the biomass energy market. However, the
threat of increasingly stringent regulations (0.47) and fluctuations in raw material prices
(0.36) can affect the company's operational stability. The potential entry of new
competitors (0.33) and the existence of other energy substitutions (0.26) require PT XYZ
to continue to innovate and strengthen its marketing strategy to maintain its
competitiveness in this dynamic industry.

Table 5

External Factor Score Calculation

It External Factors Rating Weight Score

Aulia Rizki Utami, Bustanul Arifin Noer

Indonesian Journal of Social Technology, Vol. 5, No. 12, December 2024
6173

Opportunity

1
Government regulatory support for
NRE

3,0 0,14 0,42

2
Increased awareness of the use of
clean energy

3,0 0,15 0,46

3
New technologies that can improve
production efficiency

3,3 0,12 0,38

4
Increased demand from industry and
MSMEs

3,7 0,14 0,52

Threat
1 Fluctuations in raw material prices 2,3 0,15 0,36
2 Potential entry of new competitors 3,7 0,09 0,33

3
The existence of other energy
substitutions

3,3 0,08 0,26

4 Increasingly stringent regulations 3,7 0,13 0,47
Total 3,20

Competitive Profile Matrix (CPM)
The Competitive Profile Matrix or known as CPM is a strategy analysis tool used

to compare the relative strengths and weaknesses of a company against its main
competitors in various key factors that determine success in the industry. In this study,
CPM analysis was carried out by observing companies and products from PT XYZ's
competitors. Two main competitors of PT XYZ were chosen, namely PT ACE and PT
GEN, which are also biomass production companies. Based on the focus group discussion
with the three predetermined speakers or respondents, it was agreed that the determinants
of success selected for this CPM analysis include: (1) Product quality, (2) Competitive
product prices, (3) Diversification of product types, (4) Company production capacity and
(5) SVLK Licensing. The CPM analysis of PT XYZ's competitors is carried out by first
finding out the quality of competitors' products by purchasing their products and
conducting laboratory tests to determine the quality level. In addition, PT XYZ also
conducts a deeper investigation of its competitors by collecting information from various
sources related to business practices and the market performance of competitors.

Table 6

Competitive Profile Matrix PT XYZ

It Success Factors
Weigh

PT XYZ PT ACE PT GEN

Rating
Scor

e
Rating

Scor
e

Rating
Scor

e
1 Product Quality 0,3 3,7 0,92 3,3 0,83 3,0 0,75
2 Product Price 0,2 4,0 0,75 3,7 0,69 4,0 0,75

3
Product
Diversification

0,2 3,0 0,56 1,0 0,19 1,0 0,19

4
Production
Capacity

0,1 3,7 0,53 3,7 0,53 2,0 0,29

Proposed Marketing Strategy for the Sustainability of Biomass Producer Companies
(PT XYZ Case Study)

Indonesian Journal of Social Technology, Vol. 5, No. 12, December 2024 6174

5
SVLK
Licensing

0,2 1,0 0,23 4,0 0,92 1,0 0,23

Total Score 2,99 3,16 2,21

Based on the CPM analysis in Table 6, PT ACE has the highest total score of 3.16,
indicating that overall they have a stronger position in the industry than PT XYZ and PT
GEN. PT XYZ has a total score of 2.99, which indicates that they have some significant
strengths, especially in product quality and diversification, but need to improve SVLK
licensing to be more competitive. PT GEN has the lowest overall score of 2.21, indicating
that they have more areas to improve, especially in production capacity and product
diversification.

To increase credibility and market access, PT XYZ received a proposal to obtain an
SVLK permit because the majority of prospective buyers required this. Marketing
campaigns to raise awareness and branding were also approved, with greater allocation
of funds and resources to improve the company's image. The development of innovation
and product diversification is accepted on the condition that in-depth research is carried
out first, considering the offer of cooperation with new biomass raw material suppliers.
The market expansion strategy into new regions was accepted, mainly due to supply
demand in Central Java and East Java, but still required further feasibility studies.
Proposals to increase human resources in the field of sales and marketing were also
accepted with plans to recruit new experts to overcome the heavy workload. The increase
in production capacity will be implemented in Q1 2025 after the product diversification
and market expansion plans are more mature. Finally, an education and public awareness
campaign on renewable energy was also approved, with a plan to study an educational
campaign and coordinate with the parent company to take advantage of new markets.
Overall, PT XYZ's management has shown a commitment to implementing these
strategies to improve business competitiveness and sustainability.

Conclusion

The conclusion of this study shows that the internal factors that are the strengths of
PT XYZ include product quality, product diversification, strategic location, good
relations with government agencies, and competitive prices. On the other hand, PT XYZ's
weaknesses include limited human resources in the field of sales and marketing, the
absence of SVLK permits, limited production capacity, and a lack of education and
promotion efforts regarding the benefits of biomass. External factors that are
opportunities for PT XYZ include government regulatory support for the use of new and
renewable energy (NRE), increasing public awareness of clean energy, the existence of
new technologies to improve production efficiency, and increasing demand from industry
and MSMEs. However, the threats faced include fluctuations in raw material prices, the
potential entry of new competitors, other energy substitutions, and increasingly stringent
regulations.

Proposed Marketing Strategy for the Sustainability of Biomass Producer Companies
(PT XYZ Case Study)

Indonesian Journal of Social Technology, Vol. 5, No. 12, December 2024 6176

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