Vol. - No. October 2022 DOI:- ISSN: - EFFECT OF PROMOTION COST ON SALES VALUE CARICA FRUIT BASED PRODUCTS (Case Study at UD. Yuasafood Berkah Makmur Wonosobo) Wijayanto, Khusaini ; Agroindustry Study Program, Faculty of Agricultural Technology, Gadjah Mada University, D.I. Yogyakarta, Indonesia khusainiwijayanto@gmail.com Received: ▪ Review: ▪ Accepted: ▪ Published Abstract A carica fruit processing industry called UD. Yuasafood Berkah Makmur is located on Dieng Street km. 3.5, Krasak Village, Mojotengah District, Wonosobo Regency, Central Java. This study aims to determine if UD. Yuasafood Berkah Makmur's promotion expenses have a real and substantial impact on the sales value of carica fruit goods. The Annual Report statistics for the years 2007 through 2011 were used in this study. Simple linear regression analysis, the t test, coefficient of determination (R2), and the F test were used to examine the data. Promotion cost (X) served as the study's independent variable, and sales value served as the study's dependent variable (Y). The SPSS (Statistical Package for Social Science) software and manual calculations were used to process the two variables. Using a variety of statistical test analyses, including simple linear regression analysis, the t test, analysis of the coefficient of determination (R2), and the F test, the following data processing procedures were used to generate the following statistical test analyses: Y = 38,506,713.51 + 14.90 X the calculated coefficient of determination (R2) is 0.402 as a consequence. From the comparison of tcount on each variable with ttable, it can be seen that H0 is rejected and Ha is accepted since tcountpromotion costs are 6.73 compared to ttable, or 2.00. The presented hypothesis H0 was rejected, and Ha was accepted, based on the calculation results of the F test, which reveal that the values of Fcount= 38.990 and Ftable= 4.01 are greater than each other at the 5% significant level. The statistical analysis shows that the promotion cost variable significantly and positively affects the growth of sales value. Keywords: Carica Fruit Products, Sales Value, and Promotion Cost A. INTRODUCTION Companies operating in the agroindustry are currently facing increased competition. This is brought on by both the development of technology and the expansion of agricultural goods that are useful in daily life. Different strategies have been used to win over the public, including boosting human resources and high-tech infrastructure. Consumers are now in a position to make decisions as a result of competition to give the greatest services. People can choose based on their needs thanks to the growing number of comparable businesses operating with a variety of goods or services. In addition to being impacted by the rise in consumer demand for agroindustrial goods, the agro-industry plays a significant role in Indonesia's economic and industrial growth. One crucial element of a sector is marketing. Because without a marketing strategy, consumers won't be exposed to the goods produced by an industry. Here, marketing cannot be considered in isolation from its enabling variables, such as the existence of marketers, distributors, market research, and several other enabling factors. Additionally, marketing is a social and management process through which people and groups meet their needs and desires by jointly coming up with an offer and trading something of value. Marketing management is also necessary in marketing. The production, pricing, promotion, and distribution of products and services, as well as the circulation of ideas, are all aspects of marketing management. The goal is to generate interactions with target audiences that satisfy their requirements. Promotion is required for successful agro-industrial product marketing. Here, promotion has a significant impact on customer interest. Typically, a product's consumer interest will rise with effective advertising. Promotion is also the best marketing strategy for overcoming competition so that the company's objective of maximizing profit may be accomplished by raising sales value. The conditions of the business, which must take into consideration the amount of money coming in from correctly executed and profitable promotions, must be tailored to these promotional activities. A company called UD. Yuasafood Berkah Makmur transforms carica fruit into carica candied goods. The primary product of the sector at the time of its founding is candied carica in cocktail form, which is produced by UD. Yuasafood Berkah Makmur. Because the fruit drink product was fresh, sweet, natural, and free of preservatives, consumers continued to be in high demand for it even after it was developed. The materials used to create the goods are of the highest quality, and tight quality control is maintained by GMP quality system (Good Manufacturing Practices) and HACCP (Hazard Analysis Critical Control Point). In order to fulfill customer requirements and aspirations and maximize sales value, UD. Yuasafood Berkah Makmur must have a strong marketing plan and be able to comprehend consumer behavior in the industrial environment that processes agricultural goods. The sector must thus always keep an eye on promotional costs. One strategy to boost sales value is to engage in aggressive promotional efforts across a variety of advertising media and promotional activities. B. LITERATURE REVIEW Carica Plant The carica plant is thought to have entered Indonesia because it was introduced by the Dutch colonial government around 1900 at the time leading up to World War II, and was successfully developed in the Dieng Plateau. While the origin of this plant comes from South America which spreads in the Andes Highlands from Panama to Bolivia and the mountains in Colombia, Ecuador, and was introduced to Hawaii as an ornamental plant (Neal 1965, referred to in Hidayat 2000). Currently carica plants are widely cultivated in several tropical countries such as the United States, Chile, Sri Lanka, Singapore and Indonesia (Dieng Plateau). The development of carica plants in the Dieng Plateau, Wonosobo Regency was carried out in several villages, namely the villages of Sikunang, Dieng, Sembungan, Siterus, Campursari, Patak Banteng, Kalilembu, Jojogan, Parikesit and Igirmranak. Marketing According to Philip Kotler and A.B. Susanto (1994), marketing is a human activity in relation to the market. Marketing means working with the market to realize transactions that may occur in meeting human needs and human desires. If one party is more actively seeking exchange than the other, then the first party is the marketer and the second party is the potential buyer. Marketers are people who seek resources from others and are willing to offer something of value for it. Promotion Promotion includes all company activities to introduce products and aims to make consumers interested in buying them. If necessary, this is done by persuading consumers to immediately make product purchase transactions. To find out consumer behavior in making purchases, companies need to know that sometimes consumers make purchases influenced both by their emotions and by their common sense. The influence of emotions here, for example, someone makes a purchase just because they want to be called not out of fashion, feel proud or to make them look exclusive. Meanwhile, economic factors or common sense can also be factors that encourage purchases. For example, consumers before making a purchase compare prices, quality, easy service, and others (Rahardja, 1996). Advertising Advertising is a selling tool that every business from the largest to the smallest needs. There's no magic in producing effective ads, just common sense. Every good company manager can learn to use advertising skillfully to maximize the chances of business success. Advertising becomes effective when the other parts of the business fit their function. This is especially so for businesses that have shown an interest in learning, growing and producing (Siegel, 1990). Advertising messages can be developed in styleto this (specifically) without much thought beforehand, or it can be created systematically. advertising planning (advertising plan) provides a framework for the systematic execution of advertising strategy. Companies must compete with opponents who are generally well prepared. This means a company must enter the advertising “game” with a clear plan in mind. A product or brand advertising plan, proposes about what advertising media will be used then must be directed, as well as adjusting the proposed strategy to maintain or improve the brand's competitive situation (Shimp, 2003). C. RESEARCH METHODS This research was conducted at UD. Yuasafood Berkah Makmur which is located on Dieng Street km 3.5, Krasak Village, Mojotengah District, Wonosobo Regency, Central Java. The research was conducted using promotional cost data and sales value from the company. Data processing was carried out using several statistical tests, namely simple linear regression analysis, t test, analysis of the coefficient of determination (R ) and F test. This analysis was carried out using the aidsoftware computer, namely the SPSS program (Statistical Package for Social Science). 2 While the calculated F value of 38.990 is greater than the table F value of 4.01. This means simultaneously the independent variables have a significant effect on the sales value of UD. Yuasafood Berkah Makmur at a confidence level of 63.4%. Thus, the change in sales value is quite influenced by the promotion costs incurred by the company by carrying out several promotional activities. To analyze the significance of the price regression (b) and analyze the effect of the independent variables on sales value at UD. Yuasafood Berkah Makmur can be explained as follows. D. DISCUSSION Promotional activities are carried out by the company with the aim of increasing sales results or at least to maintain the amount of sales that have been achieved. Therefore, the promotional policies taken and implemented by the company must be effective and efficient in order to increase sales value. The promotion cost variable (X) is identified as affecting sales value, as shown in Table below. Percentage of Influence Promotion Cost Against Sales Value Year 2007 2008 Sales Value / Y (Rp) 33.742.583 51.201.750 Promotion Cost / X (Rp) 2.180.500 2.853.917 Percentage Y-X (%) 646 5,57 2009 2010 2011 110.499.083 167.719.417 175.667.233 4.503.417 7.524.333 6.175.000 4,08 4,49 2,95 it can be said that there is a strong influence between the independent variable (promotional costs) and the dependent variable (sales value). Therefore, it can be said that the estimator model used is adequate or fits the data available in this analysis. From data processing carried out using SPSS software (Statistical Production and Service Solution) Version 16.0 and through manual calculations, the Simple Linear Regression equation is obtained as follows: Y = 38.506.713,51 + 14,90 X Coefficient of determination (adjusted R ) from the calculation results is 0.402 which means that the diversity of the dependent variable (dependent variable), in this case sales volume can be explained by the diversity of independent variables (independent variable) namely the company's promotion costs of 40.2%. This value indicates the closeness of the real influence, the remaining 59.8% is the rest by other variables that also determine but are not explained or not included in the model. Thus 2 Regression coefficient b (coefficient of promotion cost variable or X) is 14.90. To test the significance of the regression coefficient seen from the calculated t value, which is equal to 6.25 and then compared with t table at the confidence level of 63.4% (2.00). This means that there is a positive and significant influence of the promotional costs variable on UD's sales value. Yuasafood Berkah Makmur at a confidence level of 63.4%. The elasticity of sales value to promotional costs can be calculated by multiplying the regression coefficient (b) by the average quotient of the independent variable and the dependent variable. The result of the calculation is as follows: Regression coefficient b = 14,90 The average value of X variable = 4.647.422,33 The average value of Y variable = 107.766.013,33 So, that the elasticity value of X variable = 14,90 (4.647.422,33/107.766.013,33) = 0,64 This means that the sales value is elastic to the promotion cost variable and gives a positive response or influence in increasing the company's sales value. Graphically for each month if the promotion costs are increased then the sales value will also increase. E. CONCLUSION The conclusions in this study is: (1) The results of the data analysis stated that promotion costs had a real and significant effect on sales volume with a confidence level of 63.4%. It is known from the data analysis carried out with the SPSS program and manual calculations that it is known that the value of F = 38.990 greater than the value of F = 4.01 at the 5% significance level, then the hypothesis H submitted was rejected and H be accepted. That is, the promotion cost variable has a real and significant influence in increasing sales value at UD. Yuasafood Berkah Makmur Wonosnobo, (2) From the results of simple linear regression analysis through SPSS and manual calculations, the following equation is obtained: count table 0 a Y = 38,506,713.51 + 14.90 X This means that if the variable promotion costs increase every 1 rupiah, the sales value will increase by 14.90 rupiah. It can be concluded that the promotion cost variable has a positive and significant influence in increasing sales value at UD. Yuasafood Berkah Makmur Wonosnobo. REFERENCE Hidayat, S. 2000. Potential and Prospects of Mountain Papaya (Carica pubescens Lanne & K. Koch) from Sikunang, Dieng Plateau, Wonosobo. Botanical Garden Development Center. Bogor. Kotler, P. and A.B. Susanto. 1994. Marketing Management in Indonesia : Analysis, Planning, Implementation and Control. Salemba Empat. Jakarta. Rahardja, P. 1996. Economics for Senior High Scool Class 3. PT Intan Pariwara. Jakarta. Siegel, G.M. 1990. How to Promote Your Business. Dahara Prize. Semarang. Shimp, T.A. 2003. Promotion Advertising Additional Aspects of Integrated Marketing Communications. Erlangga Publisher. Jakarta. COVER LETTER Title of the manuscript Abstract Keywords Type of manuscript (please specify): Research article Review article Brief report Short communication Research note Full name and address of the Corresponding author Telephone# Fax# Email I hereby confirm that the manuscript was prepared in accordance with the instructions for authors of scientific publications, and that the content of this manuscript, or most of it, was not published in the journal indicated, and the manuscript was not submitted for publication elsewhere. I hereby confirm my consent to pay the Article Processing Charges (APC) EUR 400 in the case of the manuscript acceptance for publication. I am aware and hereby confirm that the APC is non-refundable. I hereby confirm my consent to make all payments for English Language Editing Services (EUR 130). 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