Marketing Mix Analysis of Arenga Palm Sugar in Riau Province

Yeni Kusumawaty, Evy Maharani, Susy Edwina

Abstract


Arenga Palm sugar is one of local products that potentially substitutes cane sugar and has become a source of income for people in Riau Province. Development of arenga palm sugar products in Riau Province faces problems of limited marketing, increased competition, and decreased production of palm sugar because some farmers switch to sell their fresh arenga sap to be processed into traditional alcoholic drink (tuak). Therefore, the purpose of this study is to examine the marketing mix strategy for palm sugar products in Riau Province. This research was conducted from May 2016 until April 2017 at arenga palm sugar production center in Riau Province, Rokan Hulu Regency and Kuantan Singingi Regency by survey method. Data analysis was conducted descriptively quantitative. The results showed that arenga palm sugar produced by small-scale producers/farmers has block-shaped sugar with dark brown colour wrapped with dry banana leaves and no brand label is attached. The determination of palm sugar price was based on existing market prices and distributed through direct and indirect marketing channels. Arenga palm sugar agroindustry uses only direct promotion.


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