Proposed Marketing Strategy for Pt. Kereta API Indonesia (Persero) to Increase the Number of Passengers

PT. Kereta Api Indonesia (Persero) or known as KAI is a State-Owned Enterprise in Indonesia with the obligation of organizing transportation that prioritizes passenger comfort, safety, and security. KAI is the only train transportation service in Indonesia, so it has a strong advantage over other modes of transportation. However, the Covid 19 pandemic has a great impact on KAI which resulted in a significant decrease in the number of passengers in KAI operating areas in Bandung in 2020-2022.

Therefore, the purpose of this study is to analyze internally and externally what factors influence the decline in passengers on KAI, and what strategies are appropriate for KAI to implement in order to increase the number of passengers in the future. The internal analysis uses 3 tools, namely STP analysis, 7P analysis, and VRIO analysis, which is intended to determine the strengths and weaknesses of KAI. External analysis is carried out using 4 tools, namely PESTEL, Porter’s 5 Forces, competitor analysis, and customer analysis aimed at knowing the external opportunities and threats being faced by KAI. The findings from the internal and external analysis are used to analyze the SWOT. In the SWOT analysis, it was found that KAI has 3 weaknesses and 4 threats being faced. Then the TOWS Matrix is used to formulate the right proposed strategy for KAI in overcoming existing weaknesses and threats. There are 12 alternative strategies from the results of the TOWS analysis which are then grouped into 4 categories, namely ST strategy, WT strategy, SO strategy, and WO strategy. In these 4 categories, QSPM analysis is used to calculate the greatest weight value for each strategy based on the expert judgment from the KAI. The chosen strategy is the ST strategy which has 3 strategies, namely Implementing Social Marketing that shows the benefits of using KAI for the society & environment, Improving the quality of the services to increase value, and Attractive promotions only available for new members. It is hoped that the selected recommendation strategy can be implemented properly by KAI so that it can reach a wider range of consumers in order to increase the number of passengers