Marketing Practices and Problems of Furniture Enterprises in Greater Jakarta Area

Abstract

This study aimed todetermine the marketing practices and problems of the furnitureand handicraft industry in Greater Jakarta Area. Thisstudy usesdescriptive method of research. Data obtained by using questionnaire and followed by interview to obtain further opinions of the respondents. Relevant tables and matrices were generally presented to interpret and analyse the study.The types of products produced were bedroom furnishings, dining room sets, living room sets, chairs, tables, decors and accessories.Methods of introducing the products to the buyers were through trade fairsortrade mission, distributebrochuresandcatalogue, by websiteor instragram.The export destinations were theUnited states of America, UnitedKingdom& Ireland, France, Germany, Netherlands, Belgium, Italy, Spain, Japan, Canada, Mexico, and United Emirate Arab. The pricing strategy applied,by(fullcost)plus mark-up, by (manufacturingcost)plus mark-up, and some others by (prime cost) plus mark-up. The most effective promotion activities weretrade fairs (exhibition),through instragram or website, email correspondence anddistribution of product catalogueand brochures.Among the most severe problems encountered by furniture and handicraft industry were: competition from local and foreign producers especially who had more advanced production technology, high interest rate imposed by the bank, unfavorable tax rate, increase of manpower wage rates, price setting and unpredictable demand situation. The entrepreneurs expect specific type of assistance from the government such as subsidy to participate in trade fairs, improved support facilities like manpower training, product design.