Laksono, Agung Bowo and Yunanto, Agung and Sulwan, Irdjan S. and Soetie, Jong and Isworo, Parno and Kwee, Yoyok Kuslianto (1997) Integrated marketing communication to support PLN's recovery program. Undergraduate thesis, IPMI Business School.

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Abstract

In the middle of 1997, many countries in the Asia Pacific Region suffered from the biggest 'hit' in their economy, Indonesia was among-st them. Its currency depreciated from a relatively stable rate of Rp.2,500 per US Dollar 1 to around Rp. 11,000 per US Dollar 1 when our group started preparing this paper. With the deep depreciation of almost 5 times, many companies faced a difficult time in managing their financial condition, moreover those that have a lot of foreign currencies exposures. PLN was among-st those companies. In chapter III, we will see that until the first half-year of 1997 PLN was still a profitable company. But things changed on the second half. PLN turned out to be unable to service its debts to the government of Indonesia. To be even worse, it could not cover its own operational costs since most of them are denominated in foreign currency. To overcome the above problem, and to maximize the longer-term development potential of the power sector, PLN has to introduce an increase in the electricity tariff will solve the problem. But things are not that simple. As we will discuss in the rest of the paper, it is apparent that the consumers resist to the increase in the tariff. The consumers, moreover the residential ones who happen to be the biggest costumer base of PLN, experience the same as PLN; the economic turmoil has somehow made them 'poorer' than before. The resistance to the tariff increase was initiated in Surakarta and then spreaded to Surabaya and several other towns in central and east java. By June 1998, the resistance had succeeded to postpone the implementation of the tariff increase for small residential and small social tariff categories. From a survey conducted by PLN, it was revealed that there are some misperceptions among the costumers over the main causes of the tariff increase. The consumers perceived PLN to be inefficient in its operation, which explains why it is in a loss position. Learning from experience, the management of PLN believes that the plan to increase the electricity tariff should be socialized first in the form of an integrated marketing communication. The remaining of the paper discusses the communication program which covers the determination of the target audience, the communication strategies, the message, the communication channels and the promotion mixes, the resources and organizational aspects in managing the integrated marketing communication process. Our paper comes up with a recommendation that PLN should build and develop an image as a service provider, and that any tariff increase should be introduced gradually such that this strategy serves as a selling point which shows that PLN cares for the hardships that its customers suffer.

Item Type:	Thesis (Undergraduate)
Subjects:	H Social Sciences > H Social Sciences (General)
Divisions:	Library > GFP (Group Field Project)
Depositing User:	Dede Faujiah
Date Deposited:	10 Oct 2022 07:57
Last Modified:	10 Oct 2022 07:57
URI:	http://repository.ipmi.ac.id/id/eprint/1574

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