Market-Based Strategy to Anticipate Covid-19 Pandemic in Smallholder Rubber Plantations in Riau Province, Indonesia

Abstract

The coronavirus pandemic had disrupted almost all businesses in various sectors, one of which is the plantation sector. Smallholder rubber plantations in Riau Province, Indonesia have faced the very tough challenges of the coronavirus pandemic. Efforts that could be made were marketing rubber products by implementing market-based strategies, namely market strategy, marketing mix strategy, customer value and marketing performance. This study aimed to analyze the effects of market strategy, marketing mix strategy, and customer value on marketing performance in smallholder rubber plantations in Riau Province during the Covid-19 pandemic. Data collection was carried out using 45 respondents as heads of smallholder rubber plantation farmer groups in Riau Province. Data analysis used structural equation modeling-partial least square (SEM-PLS). The results show that market strategy and marketing mix strategy had a significant direct effect on customer value. Customer value had a significant direct effect on the marketing performance of smallholder rubber plantation farmer groups in Riau, while the market and marketing mix strategies had an indirect effect.

Empowerment of Farmer Institutions in Improving Farmer’s Bargaining Position

“…Rubber plantations are the primary source of the rural economy, so increasing the farmers' economy is necessary by increasing commodity prices [31]. Overcoming the weak bargaining position of farmers, Riau implemented a marketing strategy based on the auction market [32]. Farmers' bargaining position is stronger if sales are made directly, not through intermediaries [33].…”

“…In an association, Indonesia's only rubber marketing institution is Kuantan Singingi-Riau Regency. Overcoming the weak bargaining position of farmers, Riau implemented a marketing strategy based on the auction market [32]. As a result, the Kuantan Singingi Rubber Farmers Association conducts joint auction rubber sales centrally in the Regency.…”

Pengaruh Strategi Bauran Pemasaran Terhadap Kinerja Pemasaran Pada Petani Karet Rakyat Di Kecamatan Gunung Toar Kabupaten Kuantan Singingi

“…Lokasi lahan petani yang jauh dari pabrik menimbulkan biaya produksi dan distribusi. Masalah-masalah ini dapat diatasi dengan menerapkan strategi pasar dan strategi bauran pemasaran (Khaswarina et al, 2021).…”

Market Strategy and Its Influence on Sabah Small Farmer’s Economic, Social, and Environmental Sustainability Performance

“…Thus, if the price offered to the buyers cannot cover the cost, small farmers' productions might be affected, leading to difficulty achieving economic, environmental, and social sustainability performance. Khaswarina, Sucherly, Kaltum, and Ariawaty (2021) showed that if the price received by farmers were high, the farmer would be motivated to produce in large quantities. This study indicates that pricing strategy in the marketing mix had a significant relationship with performance.…”