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ANALYZING OF MARKETING STRATEGY FORMULATION INIMPROVE COMPETITIVE ADVANTAGE OF ECI1GENOVEVA, 2STIVENES TJIN SIAM1School of Management, Faculty of Business, President University, Indonesia2Widya Dharma, STIE, Pontianak, IndonesiaE-mail: 1genoveva.claudia@gmail.com, 2stivenestjin@yahoo.co.idAbstract— The purpose of this study is to formulate a competitive advantage strategy, in order ECI (express ChickenIndonesia) enterprise as a newcomer in fast food franchise business. The method in this research used quantitative method,with in-depth interviews and FGD (Focus Group Discussion) of the respondents were considered to have experiences andknowledge in the field of fast-food restaurant. The result of FGD were tested with the model of triangulation to comparewith observation and interview data. The formulation of competitive advantage is done in three stages: the first stage is anInput Stage; an evaluation of EFE (External Factors Evaluation) matrix, IFE (Internal factors Evaluation) Matrix and CPMMatrix. The second stage is the Matching Stage; researcher using SWOT (Strengths, Weaknesses, Opportunities, Threats)Matrix, SPACE Matrix, BCG (Boston Consulting Group) Matrix, IE (Internal External) matrix and Grand Strategy Matgrix.The last stage is Decision Stage : The Formulated Strategy by QSPM (Quantative Strategic Planning Matrix). The resultsshowed that competitive advantage strategy for ECI is to integrate the strategy of QSPM matrix and SWOT matrix, the 1st ismarket development and the 2nd is market penetration.Keywords— Competitive advantage, Fast Food, Franchise, SWOT, BCG, EFE, IFE, SPACE, Grand Strategy, QSPM.in Indonesia such as MC Donald , Kentucky FriedChicken and Lotteria .I. INTRODUCTIONBased on the report of ministry of RepublicIndonesia, the food industry is one of industry thathas grown from year to year. Food business alsoincludes businesses that were able to survive in crisisconditions. The data in table 1.1 can be concludedthat the growth of the food industry in Indonesia hasincreased from 2009 to 2012. The increase is quitehigh occurred in 2009 to 2010, reaching 39%.Furthermore, from 2010 to 2011 increased 41 % andfrom 2011 to 2012 increased 4.8 % . Similarly, of thetotal investment also increased year by year .As a newcomer, in order to compete with thecompany will need to analyze the strengths andweaknesses by combining the opportunities andthreats that exist so knowing the competitiveadvantage strategy ( Porter , 2010). By knowing thecompetitive advantage , the company can determinestrategies alternative strategies to achieve competitiveadvantage strategy ( Marcos & Mustamu, 2014) .II. LITERATURE REVIEWTable 1.1 : Indonesia Food Industry2.1. Marketing MixMarketing mix is the mixture of controllablemarketing variable that the firm uses to pursue thesought level of sales in the target market (Kotler,2012). The elements of marketing mix have beenclassified under four heads—product, price, place andpromotion. That is why marketing mix is said to be acombi nation of four P’s. Decisions relating to theproduct includes product designing, packaging andlabelling, and varieties of the product. Decision onprice is very important because sales depend to alarge extent on product pricing. The third importantelement is place, which refers to decision regardingthe market where products will be offered for sale.Source : Industrial departement of IndonesiaThe growth of the food industry, in particular therestaurant in Indonesia is supported by the growingnumber of middle class thus increasing purchasingpower. The middle class in Indonesia also increasedvery significantl , in 1999 the number of middle classof 45 million ( 25 % ) , the year 2010 amounted to134 million ( 56 % ) and in 2015 has reached 170million ( 70 % ) (World Bank , 2015 ) .Promotion involves decisions bearing on the waysand means of increasing sales. Different tools ormethods may be adopted for this purpose. Therelative importance to be attached to the variousmethods is decided while concentrating on theelement of promotion in marketing mix.The growth of restaurant and the middle class inIndonesia prompting MVI enterprise embed businessin a fast food restaurant franchise that originated inEngland with ECI flag. As a newly establishedcompany, is not easy for the company to competewith fast food restaurant franchise that already existProceedings of The IRES International Conference, Hong Kong, 05th April 2016, ISBN: 978-93-85973-52-98

Analyzing of Marketing Strategy Formulation in Improve Competitive Advantage of ECIFor service companies , other P variables are people,process and psysical evidance, thus be 7 'S. Peopleare the ones who serve the customer, hospitality andcommunication skills of employees is needed. Whilethe process is the stage in the service, the speed andthe truth will do the process is an important factor inthe field of services. Psysical Evidance is a physicalfacility that supports these services, such as buildings,interior design, comfort of the waiting room, theavailability of toilets and so on.4. Threats are external characteristic which may bepotential sources of failure to the organizationThe following steps after preparing SWOT is the IFEand EFE matrix also SWOT matrix analysis byintegrating Strengths , weaknesses , opportunities andthreats to become some strategies.2.4. BCG MatrixThe BCG Growth-Share Matrix is a portfolioplanning model. It is based on the observation that acompany's business units can be classified into fourcategories based on combinations of market growthand market share relative to the largest competitor,hence the name "growth-share". Market growthserves as a proxy for industry attractiveness, andrelative market share serves as a proxy forcompetitive advantage. The growth-share matrix thusmaps the business unit positions within these twoimportant determinants of profitability (Henderson,1989)Henderson reasoned that the cash required by rapidlygrowing business units could be obtained from thefirm's other business units that were at a more maturestage and generating significant cash. By investing tobecome the market share leader in a rapidly growingmarket, the business unit could move along theexperience curve and develop a cost advantage. Fromthis reasoning, the BCG Growth-Share Matrix wasborn.2.2.Competitive Advantage StrategyCompetitive advantage is a business conceptdescribing attributes that allow an organization tooutperform its competitors (Porter, 2010). Porterdefined the two types of competitive advantage anorganization can achieve relative to its rivals: lowercost or differentiation. This advantage derives fromattribute(s) that allow an organization to outperformits competition, such as superior market position,skills, or resources. In Porter's view, strategicmanagement should be concerned with building andsustaining competitive advantage.2.5. QSPM MatrixQuantitative Strategic Planning Matrix (QSPM) is ahigh-level strategic management approach forevaluating possible strategies. Quantitative StrategicPlanning Matrix or a QSPM provides an analyticalmethod for comparing feasible alternative actions.The QSPM method falls within so-called stage 3 ofthe strategy formulation analytical framework.Figure 2.1: Competitive Advantage StrategySource : David, 2015In the process of crafting strategy (figure 2.1)company have to decide five basic competitivestrategies such as overall low-cost, entiation and best-cost provider.When company executives think about what to do,and which way to go, they usually have a prioritizedlist of strategies. If they like one strategy over anotherone, they move it up on the list. This process is verymuch intuitive and subjective. The QSPM methodintroduces some numbers into this approach makingit a little more "expert" technique (David, 2015)2.3. SWOT AnalysisSWOT analysis is an analytical tool used for theidentification and categorization of internal andexternal factors. Strengths and weaknesses in SWOTanalysis are termed as internal factors whileopportunities and threats termed as an externalfactors. (David, 2015)The SWOT analysis consist of:1. Strengths refer to internal characteristic which maybe deemed favorable for the organization.2. Weaknesses refer to internal characteristic whichmay be deemed unfavorable for the organization.3. Opportunities are external characteristic whichorganization may use to its advantage.III. METHODOLOGY3.1. Research MethodThe method used in this research is descriptivequalitative. Researchers will be describe thestrengths, weaknesses, opportunities and threats ofECI restaurant it self as a newcomer in the fast foodindustry. The data will be analyzed using SWOTmatrix so that it can be seen that the rightcombination of competitive strategy for ECIenterprise . To determine the ECI position comparedProceedings of The IRES International Conference, Hong Kong, 05th April 2016, ISBN: 978-93-85973-52-99

Analyzing of Marketing Strategy Formulation in Improve Competitive Advantage of ECIof competitors , IFE and EFE matrix used to providefor each indicator.they are consist : product, price, place, promotion,people, process and physical evidance.3.2. Research InstrumenThe researchers used triangulation for indicate two(or more) methods are used in this study in order tocheck the results of same subject (Rothbauer, 2008).The author compares the data obtained from the FGDwith the observation in the restaurant and Interview .3.3. Theoritical FrameworkFigure 4.2 Internal AnalysisSource : Researchers, adaption from Kotler, 20124.1. Input Stage1. EFE MatrixBased on the analysis of external factors ECIobtained a total score is 2.22 while the competitorsMc Donald score is 4.06, KFC (Kentucky FriedChicken) got 3.83 and Lotteria got 2.16. This datashows that the ECI is still not able to compete withincumbents fast food restaurant (MC Donald's andKFC), while with Lotteria as a relatively new inIndonesia has been able to compete better .Figure 3.1 Theoritical frameworkSource : Researchers, adaptation from David, 2015IV. RESULTSBased on the theoritical framework, researchersanalyze the internal and external factors to describethe dimensions to be studied (figure 4.1 and 4.2).2. IFE MatrixBased on the analysis of internal factors, ECI'sstrengths and weaknesses that are consideredimportant, obtained a score is 3,01. Rival Loteriaobtain a lower score is 2.89 . Mc Donald's got 4.05and KFC got 4. Its mean that, ECI internally strongerthan Lotteria, but weaker than MC Donald's andKFC. .External macro environment analysis approach withdimensions : social & culture, political andgoverment policies, economics and technology.While industry analysis using Porter's 5 forces : newentrance , rivalry, subtitute product , bargainingpower of buyers and bargaining power of suppliers.Figure 4.3 EFE and IFE scoreSource :ResearchersFigure 4.1 External AnalysisSource : Researchers, adaption from Porter, 20083. CPM MatrixResearchers comparing the indicators of restaurantsuccess by comparing the marketing mix is applied atthe restaurant, they are consist : product, price, place,Internal macro environment analysis approach withdimensions of marketing mix (7P’s) from Porter,Proceedings of The IRES International Conference, Hong Kong, 05th April 2016, ISBN: 978-93-85973-52-910