GOLDEN RATIO OF MARKETING AND APPLIED PSYCHOLOGY OF BUSINESS
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MARKETING | RESEARCH ARTICLE
The Implementation of Marketing Mix for SME Olfa Ningsi Paundanan1.
Maskuri Sutomo2.
Umar Syarifuddin3.
Asriadi4 Department of Management.
Faculty of Economics and Business.
Universitas Tadulako.
Palu.
Indonesia.
Email: olfaningsi.
paundanan@gmail.
com1, maskuri.
sutomo@yahoo.
com2, umarmanfebuntad@gmail.
masuarang@gmail.
1,2,3,4
ARTICLE HISTORY
Received: January 23, 2025
Revised: May 28, 2025
Accepted: July 01, 2025
DOI
https://doi.
org/10.
52970/grmapb.
ABSTRACT
Small and Medium Industries (SMI.
in the food sector play an important role in Indonesia's economic growth, but still face significant challenges in maintaining competitiveness amid increasingly fierce market competition and changes in consumer behavior.
This study aims to analyze the implementation of the marketing mix .
roduct, price, promotion, and distributio.
at Sekotak Dari Dapur Bu' Sarhan SMI in Palu City, which is known for its innovative fishball products.
The research method used is descriptive qualitative with a case study approach, involving participatory observation, in-depth interviews, and documentation with the primary informants, the owner and employees.
The results show that local fishbased product innovation, cost-based pricing, and promotion through social media are the main factors in building the uniqueness and competitiveness of this SME.
However, digital audience engagement is still low, and product distribution is limited to certain areas, so more creative promotion strategies and logistics partnerships are needed to expand the market.
This research confirms the importance of adaptive and innovative marketing mix management.
It provides practical recommendations for food SMEs to improve competitiveness through product innovation, price optimization, strengthening digital promotion, and expanding distribution networks.
The findings are expected to be a reference for developing sustainable food SME marketing strategies in the digital era.
Keywords: Marketing Mix.
Product Innovation.
Food SMEs.
Digital Promotion.
Distribution.
JEL Code: M31.
L66.
L26.
Introduction Small and Medium Industries (SMI.
play a strategic role in the Indonesian economy, especially in job creation, increasing people's income, and strengthening the competitiveness of the national industry (Iluh et , 2.
One of the SME sectors that has experienced significant growth is the food industry, which continues to grow along with increasing consumer demand for innovative and diverse culinary products (Adena, 2.
One example of a small and medium industry (SME) player in Palu City in the food sector is Sekotak Dari Dapur Bu' Sarhan, which is known for its processed fish-based meatball products, such as ready-to-eat fried meatballs and frozen meatballs.
One example of an SME in the food sector in Palu City is Sekotak Dari Dapur Bu' Sarhan, which is known for its processed fish meatball products, such as ready-to-eat fried meatballs and frozen This SME has implemented a marketing mix that includes product, price, promotion, and distribution to increase competitiveness and meet consumer needs (Zahara et al.
, 2.
Pricing is based on production and promotion costs (Adam et al.
, 2.
, while promotion relies on social media with sales Product distribution is done directly to maintain quality and build relationships with consumers.
The Author.
This open-access article is distributed under a Creative Commons Attribution (CC-BY-SA) 4.
0 license.
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: 2776-6349 The marketing mix .
Ps: Product.
Price.
Place, and Promotio.
is an important element in business strategy, as each component is interrelated and has an impact on marketing eAectiveness and customer satisfaction (Sanna et al.
, 2023.
Rombe & Kristina Parinsi, 2.
However.
Sekotak Dari Dapur Bu' Sarhan faces promotional challenges, especially in managing social media content that lacks creativity, resulting in low audience engagement (Handayani, 2.
This is a significant obstacle in maximizing the potential of digital promotion, which is also a common challenge in the increasingly competitive food industry.
Data from the Ministry of Industry shows that the food and beverage industry grew by 4.
47% in 2023, after being aAected by the COVID-19 pandemic (Waluyo, 2.
This growth emphasizes the importance of innovation and adaptation in marketing for SMEs to remain relevant amid changing consumption trends and market competition (Zahara et al.
, 2.
Innovation includes product production processes and marketing strategies, which determine business sustainability.
People's increasingly dynamic lifestyles and technological advances encourage businesses to continue to develop adaptive and innovative marketing strategies (Nurhaliza et al.
, 2.
A strong business plan and marketing innovation have proven to be the key to business success and competitiveness (Zahara et al.
, 2022.
Sailo et al.
, 2.
Research on the marketing mix in food sector SMEs has been widely conducted.
However, this study oAers a new contribution by focusing on implementing the marketing mix in Sekotak Dari Dapur Bu' Sarhan, an SME in Palu City that prioritizes processed fish products as diAerentiation.
The study also highlights specific challenges in managing digital promotions and oAers practical recommendations relevant to the local This research is important because it provides an in-depth understanding of the marketing strategies of food SMEs in the digital era, particularly in facing promotional challenges and market competition.
The research findings are expected to enrich academic knowledge in SME marketing and provide practical recommendations for business actors, policy makers, and industry stakeholders in designing sustainable and competitive SME development strategies.
II.
Literature Review and Hypothesis Development Marketing Mix Marketing strategy is at the core of business development, especially for Small and Medium Industries (SMI.
that must adapt to changing market dynamics and consumer trends.
The 4P marketing mix of product, price, promotion, and distribution is still the main framework in designing an eAective marketing strategy.
However, implementing each element needs to be adapted to technological developments, consumer behavior, and the current competition in the food industry.
Product Products are the core of the marketing mix, where innovation and quality are key in attracting consumer interest and diAerentiating themselves from competitors (Devi et al.
, 2.
In the context of food SMEs, product development based on local ingredients and innovation in variants and packaging are the main strategies in meeting the increasingly diverse market needs.
Price Price serves not only as a competitive tool but also as a representation of product value in the eyes of consumers.
Cost-based and value-added pricing is a relevant approach, especially for SMEs that must maintain profit margins amidst intense price competition (Firman, 2.
The Author.
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: 2776-6349 Promotion Promotion is now dominated by social media and digital marketing, aligning with 2024 marketing trends emphasizing personalization, dynamic content, and direct consumer interaction.
Short videos, influencers, and interactive marketing have proven eAective in increasing engagement and brand awareness, especially among the younger generation.
Distribution Distribution demands ease of access and speed of service.
Integration between direct sales and digital platforms allows SMEs to expand market reach while maintaining product quality (Geransha & Susilowati, 2.
Most previous studies highlight the importance of the marketing mix in improving the competitiveness of SMEs.
However, there are still few that review in depth how the integration of the latest digital marketing strategies, such as the use of artificial intelligence (AI), social commerce, and interactive content, is implemented by food SMEs in Indonesia.
In addition, not many studies explicitly link the eAectiveness of each marketing mix element with the business growth of food SMEs in the current digital era.
This literature review shows that while the 4P framework .
roduct, price, promotion, and distributio.
remains relevant, a more adaptive and data-driven approach is needed for SMEs to compete in an increasingly dynamic Therefore, this study aims to fill the gap by systematically analyzing the application of the modern marketing mix in food SMEs, specifically in Sekotak Dari Dapur Bu' Sarhan.
Based on the synthesis of the literature and the identification of these gaps, the hypothesis of this study is formulated as follows: The application of marketing mix integrated with the latest digital marketing strategies significantly improves the competitiveness and business growth of food SMEs in Indonesia.
This hypothesis confirms the relationship between adapting the marketing mix, including product, price, promotion, and distribution, with the utilization of digital technology and the business growth of food SMEs amid marketing trends in 2024.
Each claim and concept raised in this review is supported by relevant and up-to-date references, referring to the latest digital marketing trends, and avoiding using outdated references except for basic definitions that have not been replaced.
The references are integrated narratively to strengthen the arguments and establish a logical flow between this study's theories, empirical findings, and hypothesis development.
Research Method This research uses a descriptive qualitative method with a case study approach to understand the marketing mix practices at the Sekotak Dari Dapur Bu' Sarhan SMI.
The qualitative approach was chosen because it can explore social phenomena contextually and in depth.
It allows researchers to capture the subjective meaning given by business actors, which cannot be measured quantitatively (Ikramawati et al.
The case study was chosen so that researchers can intensively explore the implementation of marketing strategies in a real and limited context, using the characteristics of descriptive qualitative research (Sugiyono.
The main reason for choosing qualitative methods is to obtain data that is rich in meaning, in-depth, and relevant to the actual situation, to reveal the dynamics, processes, and experiences of business actors as a whole (Ikramawati et al.
, 2.
Data collection was conducted through participatory observation, in-depth interviews, and documentation.
Participatory observation focused on marketing behavior, interactions with consumers, and production and distribution processes.
all observations were recorded in field notes and supported by visual documentation in the form of photos or videos (Sugiyono, 2.
In-depth interviews were semi-structured with guidelines containing key topics such as product innovation, pricing, digital promotion strategies, and distribution.
Questions were open-ended: "How do you determine your promotion strategy on social media?" or "What are the main challenges in maintaining product quality during The Author.
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0 license.
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: 2776-6349 distribution?" Interviews were conducted in person, recorded with a voice recorder, and only after obtaining consent from participants.
Ethical aspects were prioritized in this study.
Each informant was given a thorough explanation of the study's purpose, process, benefits, and potential risks before data were collected.
Informed consent was obtained in writing, and participation was voluntary with assurance of confidentiality of identity and personal data (Mei et al.
, 2.
Researchers maintained integrity and transparency at every stage of the research to protect the rights and welfare of participants.
The primary informants were selected using purposive sampling technique based on the criteria: .
business owners, .
employees who are directly involved in marketing and production, .
physically and mentally healthy, .
willing to become informants, and .
have at least one year of experience in the SMI (Sugiyono, 2.
In addition to primary data from interviews and observations, secondary data were collected from internal documents, scientific literature, and other relevant Data collection tools included interview guidelines, a voice recorder, a camera, and qualitative data processing software to assist with data transcription and analysis.
Data analysis followed the Miles and Huberman model, including data reduction, presentation, and conclusion drawing/verification (Mei et al.
To increase relevance, this research also refers to contemporary studies that apply a similar model to the context of food SMEs in Indonesia.
IV.
Results and Discussion Sekotak Dari Dapur Bu' Sarhan is a small and medium-sized industry at Jl.
Banteng Btn Bumi Anggur Blok B1 NO.
Palu City.
This SME focuses on the production of fish balls and has been run by Mrs.
Pusparani for 5 years.
This business has four employees and has received an oEcial halal certificate from the Halal Product Guarantee Agency (BPJPH).
This shows the business's commitment to providing halal quality The first product produced by this SME is a box of fried meatballs.
Then, during the pandemic.
Sekotak from Dapur Bu' Sarhan launched a new product, frozen food fish balls, in response to the lockdown situation in Palu City.
Implementing the social distancing policy has caused changes in consumer behavior, where customers who previously preferred to socialize and eat out are now encouraged to adapt to new conditions by consuming food at home more often (Wahyuningsih et al.
, 2.
This makes people need food that is durable and can be stored.
After that, the business continues to innovate by presenting new products, such as cheesy boxes/fried meatballs with cheese filling and fried dumplings.
All products are made from highquality ingredients and processed hygienically, resulting in a delicious taste.
Product Sekotak Dari Dapur Bu' Sarhan oAers innovative fish-based products that are a key diAerentiator from competitors in Palu City.
This product innovation can be seen in the launch of ready-to-eat fried meatballs with cheese filling, which is the first product in the region, as well as the use of durable pouch packaging that allows distribution over long distances.
The uniqueness of the product is further strengthened by using local raw materials, namely fresh fish caught by Central Sulawesi fishermen, which is processed a maximum of four hours after capture to maintain product quality and freshness.
In addition, all products have obtained halal certification from BPJPH and P-IRT permits, an advantage only owned by around 15% of food SMEs in Palu City (Dinas Perindustrian Kota Palu, 2.
When compared to similar SMEs in East Java that generally still rely on beef meatballs as the main product (Nurhaliza et al.
, 2.
, the fish-based innovation of Sekotak Dari Dapur Bu' Sarhan not only utilizes local potential but also contributes to reducing dependence on imported raw materials such as beef.
Thus, the advantage of this product lies not only in the aspects of innovation and quality, but also in its ability to adapt to market needs and support local economic empowerment.
The Author.
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: 2776-6349 Price Pricing for Sekotak Dari Dapur Bu' Sarhan uses the cost-based pricing method, where the selling price is determined based on the calculation of production costs, digital promotion costs, and the desired profit The main components in this pricing structure consist of 60% production costs, 25% digital promotion costs, and 15% profit margin.
This strategy provides a strong basis for ensuring that all operational costs are covered while maintaining business profitability, as described in the literature on pricing strategies in the food and beverage industry.
However, while this strategy eAectively maintains business sustainability, the price of the products oAered, which ranges from Rp25,000 to Rp50,000, is 20% higher than the average price of food SME products in the Central Sulawesi region.
This poses a challenge in attracting consumers from the lowermiddle segment who tend to be more price-sensitive, requiring additional eAorts in product value communication and promotion strategies to maintain competitiveness in the local market (Sailo et al.
, 2.
No.
Table 1.
Price list of products of Sekotak IKM from Mrs.
Sarhan's Kitchen Product Price Box of Fried Meatballs IDR 30.
Box of Fried Meatballs stuAed with cheese IDR 50.
Box of Frozen Meatballs IDR 50.
Box of Fried Dumplings IDR 25.
Promotion The promotional strategy implemented by Sekotak Dari Dapur Bu' Sarhan is dominated by social media, where around 80% of promotional activities are carried out through Instagram Ads and collaboration with five local influencers.
Despite utilizing trending digital channels, the audience engagement rate achieved was only 3.
2%, still below the food industry average of 5.
7% (Fuadah et al.
, 2.
This low engagement rate reflects the common challenges food SMEs face in adapting to interactive content trends, such as short videos on the TikTok platform, which are currently very interesting to young consumers.
This case study reinforces Handayani's .
findings that micro businesses in the food sector need specialized training in creative and relevant digital content creation to increase promotional eAectiveness and optimally expand market reach.
Thus, strengthening the capacity of digital content creation is one of the main recommendations for overcoming promotional barriers that food SMEs face in the current digital marketing era.
Distribution The distribution system implemented by Sekotak Dari Dapur Bu' Sarhan relies on two main channels:
direct-to-consumer distribution, which accounts for around 70% of total sales, and distribution through the Maxime delivery platform, which accounts for the remaining 30%.
This distribution model has been proven to reduce the delivery time .
ead tim.
to 40 minutes so that consumers can receive products in fresh conditions and on time.
However, the distribution coverage is still limited to a radius of 15 km from the production location, so the market potential outside the area has not been fully tapped.
To overcome this limitation and expand market coverage, it is recommended that SMEs establish logistics partnerships with national food delivery services such as GrabFood or GoFood, as suggested in a study on the development of MSME distribution networks (Shobur et al.
, 2.
In addition, adopting environmentally friendly packaging should also be considered, given the trend of consumers becoming increasingly concerned about sustainability and environmental issues (Dangelico & Pujari, 2010.
Disperdagin Tanjungpinang, 2.
The use of biodegradable or recycled-based packaging can not only enhance brand image, but also broaden the product's appeal in the broader market.
Thus, distribution optimization and packaging innovation are strategic steps to improve competitiveness and business sustainability amidst increasingly fierce competition in the food industry.
The Author.
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: 2776-6349 Conclusion This study aims to describe and analyze the application of the marketing mix in the Sekotak Dari Dapur Bu' Sarhan SMI, focusing on fish-based meatball products.
The results showed that implementing the 4P marketing mix strategy of product, price, promotion, and distribution is important in maintaining competitiveness and business sustainability amid increasingly competitive market competition.
The advantages of product innovation, such as the development of ready-to-eat fried meatballs with cheese filling and the use of local fresh fish raw materials, diAerentiate this SME from competitors in other regions that still rely on beef as the main ingredient.
The pricing strategy applied, namely the cost-based pricing method, is also consistent with the practices of food SMEs in other regions and has proven eAective in maintaining profitability.
However, the relatively higher product prices challenge attracting the middle-low consumer segment.
Social media utilization and collaboration with local influencers have been utilized for promotion.
However, the audience engagement level is still low compared to the food industry average.
This indicates the need for digital content innovation and digital marketing training.
Product distribution that relies on direct sales and local platforms has proven eAective in maintaining product quality, but limited distribution coverage is still an obstacle for wider market expansion.
This study confirms that eAective and adaptive marketing mix management is essential for the growth and sustainability of food sector SMEs.
The practical implication of this study is the need for SMEs to continue to innovate products based on local potential, adjust pricing strategies to the purchasing power of the target market, and increase the capacity of digital promotion through creative content training and wider utilization of digital platforms.
For future research, it is recommended that a more in-depth comparative analysis between various marketing mix models in food SMEs from diAerent regions be conducted, as well as the impact of digital technology integration on marketing eAectiveness and sustainable business growth.
Thus, the results of this study are expected to be a strategic reference for SMEs, policymakers, and researchers in developing an innovative and highly competitive food industry sector.
References