STRATEGY TO INCREASE THE CHERY QQ SALES By Divanti Oenang 011200700006 A thesis presented to the Faculty of Economics President University in partial fulfillment of the requirements for Bachelor Degree in Economics Major in Management August 2010 PANEL OF EXAMINERS APPROVAL SHEET The Panel of Examiners declare that the thesis entitled “Strategy To Increase The Chery QQ Sales” that was submitted by Divanti Oenang majoring in International Business from the faculty of Economy was assessed and approved to have passed the Oral Examinations on 20 September 2010 Andreas Yumarma Chairman Ir. Muhril Ardiansyah, M.Sc., Ph.D. Panel 1 nnnnnn Panel 2 DECLARATION OF ORIGINALITY I declare that this thesis, entitled “Strategy to Increase the Chery QQ Sales” is, to the best of my knowledge and belief, an original piece of work that has not been submitted, either in whole or in part, to another university to obtain a degree. Cikarang, Indonesia, 31 August 2010 Divanti Oenang ABSTRACT The research is conducted to discover the dominant variable of Marketing Mix that makes the sales of Chery QQ decreasing. The research is very important because it will investigate and give clear explanation of what aspects influence the decreasing sales of Chery QQ. Quantitative research is applied so that it can be analyzed through mathematical expression; and then it can used to identify the study in this research. Questionnaire is used to collect all the necessary data. It is made with five answers. There are 20 questions in the questionnaire. As the respondents are the consumer of Chery QQ. 74 people as the sample they were chosen using purposive convenience sampling method. The population, which is selected consumer, in this study is consumer of Chery QQ in North Jakarta. Total consumer is 242 people. The result of the research is the product variables as the dominant factor that cause of the decreasing of Chery QQ. ACKNOWLEDGMENT Thanks god for the blessing and guidance that you have given to me, to finish my thesis entitled “STRATEGY TO INCREASE CHERY QQ SALES”. This thesis is one of requirements to accomplish Bachelor Degree for Faculty of Economics in President University. In addition, the writing of this thesis has been supported by many people who have directly involved both directly and indirectly help the writer to finish this thesis. I would like to give my special thanks to: My Beloved Dad, Mom you are the best parents in this world, thanks for everything that you gave to me, especially for your support and advising me in doing this thesis. My lovely Sisters and brother, thanks for motivation and supporting me in doing this thesis My thesis adviser Mr. Ir. Muhril Ardiansyah, M.Sc., Ph.D. for the guidance and sugesstion along the time doing this thesis from the beginning till the end. Mr. Ir. B.M.A.S Anaconda Bangkara, MT, for his knowledgeable information, advices, suggestion, great discussion for my thesis. My friend, my brother, and my best Tofan Taruna Anindita, for his advices, support, and patient in helping me finish this thesis. Power Ranger (Cheche, Lady, Nindy, Bagas, Hana), thank you very much for the togetherness in last 3 years. Hope this friendship will last forever. All my F1 Dormate: Mba Nana, Friza, Ria, Icha, Anggi, thanks for your support. All student batch 2007: Yopie, Faza, Andi, Vina, Felix, Hakim, Marcel, Haris, and others that I cannot mention it one by one. Thanks for keep supporting each others. Mr. Musetayin, thanks for your great advice and help, you’re my last savior. My senior batch 2005, thanks for all your great advice and motivating me to do this thesis All Lecturer, thank you for your teach and share your knowledge to me. To all people who can not I mentioned on this paper. Thank you for your support CHAPTER I INTRODUCTION 1.1. Background of the study Currently, the entire community has a rival in business. Producers must have a very high creativity in order to survive in a competitive business. As we know that, the economic development in today's business world very quickly. No exception is also effected the growth in transportation vehicles such as motorcycles, cars, trucks, and bus. In this case, the national transportation system has an important role in supporting the national development by facilitating all aspects of people’s activities socially as well as economically. It promotes the population mobility and flow of goods and services from one region to another. Land transportation, as part of national transportation system, has been played the most important role. It can be observed that regions, which have good land transportation facilities generally, have a better economic growth than others. Eventhough the global economics crisis attack almost all the countries in this world, the demand of vehicles still high, especially in Indonesia (Figure 1.1.). The global economics crisis also effect the oil price, in this year the price is reach around $70-80 per barrel (source: mediaindonesia.com). Many automotive manufacture are compete each other to create more affordable vehicles that use less gasoline than other manufactures, this efficient vehicle are expected that can be accepted in the market. 1 12000000 10000000 8000000 6000000 Units 4000000 2000000 0 2004 2005 2006 2007 2008 Year Figure 1.1. Statistic Data of Car Sales in Indonesia Source: Badan Pusat Statistik In Indonesia car market, the strong competitions not only happen in the Multi Purpose Vehicle (MPV) such as Toyota Innova, Isuzu Panther, and Honda CRV. But, it also happens in the city car such as Karimun Estilo, Chery QQ, Hyundai Atoz, and Kia Picanto. To merge in the market competition, every car manufacture must prepare the best for their own product and also how to the market product. Prepare the product can show with defining the marketing concept such as target market, customer needs, intergrated marketing, and profits through the customer satisfaction. Every car manufacture can maintain their market share not only with launching all new products, but they can do a small change with the facility model and adding some new accessories. Chery QQ first launched on September 2006, it is a city car brand by Chery and it segmented in the low end class. During four years production, Chery QQ already sold 2500 unit. PT. Indomobil Tbk through PT. Unicor Prima 2 Motor launch Chery try to give an option to the market in city car segment. Actually, In China, Chery was the first Chinese automobile maker to export its products, and as of 2009 it remains the top exporter among Chinese automakers. Chery has received the fourth position for automotive brands with the highest number of car sales. Besides that, Chery also represents the largest vehicle exported in China (source: wikipedia.com) 1.2. History of Chery QQ Chery was founded in 1997 to prop up the economy of Wuhu, a region of China that has received little industrial development. Its first factory used machines and engine technology purchased from Ford Europe for US$25 million. It began auto production in 1999 using a licenced chassis from SEAT's Toledo. The company was an illegitimate company under Chinese law of the time and had to be registered as a "Car Parts Supplier." Thus, the company was not able to obtain a license to sell their cars in all of China. In 2001, Shanghai Automotive Industry Corporation (SAIC) bought a 20% stake in the company, allowing Chery to use SAIC's national retail sales license. In 2001, Chery began exporting its cars to Syria, becoming China's first car exporter. Chery also received its ISO-9001 certification. In September 2002, Chery received its ISO/TS 16949 certification, the highest quality certification at the time (source: chinacarforums.com).The Chery QQ is a city car produced by the Chinese manufacturer Chery Automobile. It is a Completely Knock down (CKD) car, their engine and materials are impoted from China. In Indonesia, Chery is marketed by PT Unicor Prima Motor (UPM). PT Unicor Prima Motor began marketing the Chery vehicles in Indonesia since September 2006. PT UPM is a subsidiary under the banner of Indomobil Group, one of Indonesia's leading automotive industries. The first Chery product that launched in Indonesia is the Chery QQ, which is a city car vehicle. View to improved market opportunities, the event coincided with Indonesia Motor Show in 2007, PT UPM launched Chery Tiggo, SUV 2000 cc. Today, UPM has marketed two models Chery vehicles in Indonesia. Each year, PT UPM will add 3 a new model of Chery vehicles to be marketed in Indonesia. In addition to serving the sales of Chery vehicles, PT UPM also committed to providing appropriate care service, quick, and satisfying for their customers. Currently, Chery already has 23 outlets located on the island of Java, Bali, Sumatra, Kalimantan, and Sulawesi, where 21 outlets of which have been equipped with workshop facilities and spare parts. In China, Chery occupies the fourth position for automobile brands with the highest number of car sales. Chery Automobile Co. Ltd. as a principal Chery is listed as state-owned enterprises in China. 1.2.1. Exterior The shape of the body is very stylish, soft, and cute. The exterior parts consist of Front & Rear Fog Lamps, Rear Window Wiper, Front & Rear Bumper Sporty, Front & Rear Body Kit, Side Visor, and Chrome Tail Pipe. Chery QQ is suitable for daily use because of the body is very small. It has a smooth shape from front to back, and its picture out the sense of movement. The design of the body is similar to Daewoo Matiz and Chevrolet Spark.