The Marketing Mix Strategy of Train Cargo Transportation: Evidence from Indonesia

Abstract

This research aimed to understand the marketing mix implemented by the Cargo Transportation Unit of Kereta Api Indonesia Daop 6 Yogyakarta, Indonesia, and to study and know its position. The main problem was that many cargo transportations used the service handling system of Door-to-Door, which was relatively cheaper than cargo transportation using a train that still implemented the Station-to-Station service. The research method used the Boston Consulting Group matrix to know the market growth, market share, and quadrant position of Kereta Api Indonesia Daop 6 Yogyakarta. The collected data were then analyzed using the calculation of Market Growth Rate, Relative Market Share, and Boston Consulting Group Matrix. From the Market Growth Rate calculation, the result was as much as 8.5%, and from the total Relative Market Share, the result was 0.5 < 1. Furthermore, based on the Boston Consulting Group matrix, Quadrant IV (Dogs) shows alternative strategies to implement: Divestment, Retrenchment, and Liquidation. The main factor causing the low market growth of the Cargo Transportation Unit of Kereta Api Indonesia Daop 6 Yogyakarta is a crucial finding of this research.