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.


INTRODUCTION
Transportation is the lifeblood of the economy for government agencies in modern life, particularly in the economic field.One of the government's responsibilities is to provide community services (public service), which includes transportation procurement.Public transportation is a form of local travel that allows more people to travel together on defined routes and can provide time, space, and cost efficiencies in various regions.Typical examples of public transportation are trains, buses, taxis, high-speed rails, and airlines.Most public transportation operates according to a set timetable; some transportation systems are in full operation, so the vehicle will not start until it is fully operational.The need for transportation services followed by a higher level of activity in each city will require an increase in the field of transportation services.One of the public transportations that are always used by society and can be used as an alternative to help overcome the problem of public transportation needs is the train.The train is a type of rail transportation that consists of a group of vehicles that are hauled along railroad tracks to transport people.When compared to other types of transportation, the train is one of the most advantageous types of land transportation.Trains has a huge cultural impact on people all over the world since the beginning of railroading.Based on the Indonesia Gross Domestic Product in the second quarter of 2021, the transportation sector has the highest growth rate with 25.10%, this is happened due to an increase in passenger movements in all modes of public transportation as well as loading and unloading movements of exports and imports because of the relaxation of government policies on restrictions on community activities.

a) Company Profile
PT. Kereta Api Indonesia (Persero) is a State-Owned Enterprise of Indonesia or known as BUMN, that delivers, regulates, and maintains Indonesian Railways.As a responsible development agent, PT.Kereta Api Indonesia (Persero) is faced with the obligation

c) Business Issue
Based on the interview result with the PT.KAI Managing Director and other staff members, it is found that the main business issue that is currently being faced by KAI Bandung operational area is the significant decrease in the number of passengers in 2020-2021.
The main factor that causes the declining number of passengers was the Covid-19 pandemic, which require the government to make PSBB & PPKM regulations that oblige all people not to travel and limit all public activities, the purpose of this regulation was to suppress the spread of the virus so that the pandemic can be overcome immediately.

Source: PT. Kereta Api Indonesia
The impact of this pandemic has caused severe distortions in the transportation sector.This condition is exacerbated by the government policy of implementing strict health protocols in public transportation facilities such as swab and antigen tests, with the new policy being implemented many people complain about additional costs for purchasing train tickets with many requirements that must be met before using trains or other modes of public transportation, so they prefer to use private vehicles or simpler modes of transportation such as buses and travel.

II. BUSINESS ISSUE EXPLORATION
This chapter will elaborate more on the business issue that is currently faced by KAI in Bandung operational area.The business issue will be analyzed by using internal and external analysis.The first chapter of the problem-solving process is the identification of business issues that KAI currently facing, and the determination of the research objective that is based on the business issues that have been identified using a qualitative research method by conducting observation and preliminary surveys.The internal analysis was conducted by using STP, 7P, and VRIO analysis in order to identify the company's competitive advantages.For the external analysis, the author uses PESTEL analysis to identify the threats and weaknesses in the political factors & government policies, Porter's five forces to identify the five competitive forces that help determine the industry's strengths and weaknesses, and competitor analysis to identify direct and indirect competitor in the market, and customer analysis by conducting a questionnaire which aims to find out what factors that encourage consumers to use KAI services.a) Internal Analysis Internal analysis is carried out to determine the strengths and weaknesses of KAI.The following are the findings obtained from the analysis that has been carried out: • STP: Segmenting, Targeting, and Positioning or also known as STP is a marketing tool that can help the organization identify the right consumers that match their product/service values and ensure their marketing message is delivered to the right target market.The benefit of conducting STP analysis is that the company can create an effective marketing message that can appeal to the niche of the chosen target segment by broadening the market into a smaller size.The findings obtained in this analysis are that KAI has a large target market because it does not have similar competitors.The ideal target market for KAI is segmentation with age 20-45 years with an income range of Rp. 2,000,000 -Rp.30,000,000, and social classes start from the middle class, upper-middle, and upper class.KAI positions itself in the market as functional and experiential positioning because it has provided a type of train class that has various luxurious facilities that can be obtained by passengers during the trip so that they can build an enjoyable experience good for each customer when using KAI.• 7P: 7P's analysis is a modification of the various elements that give the company or organization more insight into the business service industries and can be used to analyze its internal condition and respond to the needs of its target market.7Ps consist of Product, Price, Place, Promotion, People, Process, and Physical Evidence.The findings obtained from the 7P analysis are that KAI has 5 variations of the type of train class with different prices so that it can reach all people from the lower middle class to the upper class, besides that KAI also has a new membership program called railpoint which can increase loyalty.consumers and attract new consumers.However, the weakness of KAI based on 7P analysis is the lack of variety of marketing mix tools used in its marketing strategy and less varied marketing promotions, causing the current KAI marketing strategy is not effective and optimal in reaching the targeted customers.
• VRIO: The VRIO framework is an internal analysis tool that is used by a company to categorize their resource based on whether they hold certain traits outlined in the framework.The categorization of the VRIO framework allows the company to identify its competitive advantage resources.The findings obtained from the VRIO analysis are the advantages possessed by KAI in competition in the market.The advantages possessed by KAI are that it has resources that are rare and difficult to imitate, such as a large variety of products, sophisticated product innovation and strong financial resources, making KAI have a strong competitive advantage in the market.However, there are some resources that are not uncommon and easily imitated by competitors such as customer relationships, human resources and also corporate culture that create competitive parity in the market.

b) External Analysis
External analysis is carried out to identify the external environment that has the potential to have an impact which can be in the form of opportunities and threats.This analysis is carried out so that KAI can take advantage of existing opportunities and create strategies to overcome potential threats that occur.The following are the results of the external analysis: • PESTEL: PESTEL analysis is a strategic tool that is used to evaluate and analyze the macroenvironment factors that may directly or indirectly influence the companies, which consist of Politics, Economic, Social, Technological, Environmental, and Legal factors.PESTEL analysis provides contextual information about the wider business environment of a company such as its opportunity and threats such as determining the validity of existing products and services as well as defining new product development.The results of the analysis show that the opportunity owned by KAI is the increase in people's purchasing power seen from the increase in the value of Indonesia's GDP in 2022.Another opportunity that KAI has is the advanced technology used in the development of its products, this advanced technology has been used by developed countries in Europe and has been implemented in the construction of the JakartaBandung high-speed train.The threat faced by KAI is the changes in consumer behavior which causes a decrease in the number of KAI passengers.Although there had been an increase due to the The third threat is high rivalry among existing competitors because each company tries to attract consumers with the same segmentation by offering various promotions and offering the best facilities and other advantages possessed by each competitor.• Competitor Analysis: Competitor analysis is an evaluation process of analyzing and identifying the potential competitor in the market.This analysis technique helps the company to gain a better understanding of the current business competition and gain a competitive advantage over its direct or indirect competitors.The objective of conducting a competitor analysis is to identify the company's strengths and weaknesses, understand the market condition, find the industry trends, and set benchmarks for the company's future growth.The findings obtained from competitor analysis are that there is a cheaper price offer than indirect competitors with the same destination, making KAI have to make a strategy to overcome this threat, such as improving service quality and increasing the variety of promotions.• Customer Analysis: Customer analysis is a tool that can assist a company in understanding the specific needs of its customers and identifying an ideal potential customer profile for the company in order to develop the marketing plans and ensure that the product or service provided to the targeted customer has met their needs.The distribution of this questionnaire was carried out to find out what factors affected the decline in passengers in the KAI Bandung operational area, based on the KAI statistical number of passengers data which showed a significant decrease in the year 2020-2021 compared to the previous years.The questionnaires were distributed to respondents who know and have used the KAI transportation services, which are intended to identify the factors that influence the declining number of passengers in the KAI Bandung operational area.The customer analysis of this research is using independent variables and dependent variables.Based on the customer analysis that has been conducted through questionnaires distributed to 100 respondents, it can be concluded that the significant variable that can affect the customer intention to use is the service and convenience variable.KAI needs to focus on improving service quality and convenience because based on the results of customer analysis, it shows that service and convenience have a positive relationship with people's willingness to use KAI so that if service and convenience are good, it will increase consumer interest.Customer analysis on the factors that affect customer willingness to use KAI can be said to be feasible because it has passed the normality test, multicollinearity test, F-Test, and T-Test.

III. BUSINESS SOLUTION a) TOWS Matrix
TOWS matrix is a strategic tool framework that can help assist the companies in formulating their business strategies that be able to adapt to the unpredictable conditions in the industry, such as changes in government regulation, the development of new technology, and tight competition from direct and indirect competitors.The following are the results of the TOWS Matrix based on internal and external analysis of the Bandung operational area KAI.

b) QSPM Analysis
Quantitative Strategic Planning Matrix or also known as QSPM is a strategic management tool for company top-level management to evaluate an alternative strategy recommendation and determine the most effective and attractive strategy that is fit for the company based on the resources and capabilities.In this research, QSPM was used to select the three best alternative strategies from the 12 recommended strategies obtained from the TOWS matrix analysis results.The following is a list of alternative strategies based on the results of TOWS Matrix analysis.3.3 is the result of data processing using QSPM to determine the best alternative strategy that can be implemented by KAI in accordance with its resources and capabilities.The weight value of each key factor is obtained from the results of the IFE (Internal Factor Evaluation) and EFE (External Factors Evaluation) analysis which can be seen in Appendix 2. After analyzing based on expert judgment from the KAI Bandung operating area, the Total Attractive Score for each alternative strategy was obtained, namely for the SO Strategy it had a value of 6.35, and for the WO Strategy it had a value of 5.94, the ST Strategy had a value of 7.27 and for the WT Strategy it had a value of 6.16.The strategy that has the largest Total Attractive Score is the ST Strategy.The chosen strategy is ST Strategy, seen from the TAS value of 7.27, which is the largest compared to the other 3 alternatives.ST strategy has

CONCLUSION & RECOMMENDATION a) Conclusion
Based on the result of this research one of the main factors causing the decline in the number of KAI passengers is the COVID-19 pandemic, but the other factor is that KAI has 3 weaknesses and 4 threats that cause KAI's marketing strategy cannot optimally reach the targeted consumers.There are 12 recommended strategies that can be carried out by KAI, including conducting routine maintenance for the KAI Access App, using various marketing communication tools, adding more attractive membership programs, improving train carriage facilities, etc.Then these 12 strategies were re-evaluated using the QSPM analysis which aims to find out the best alternative strategies that KAI can implement according to the current resources and capabilities.There are 4 alternative strategies, namely ST, WT, SO, and WO, the selection of these strategies is analyzed based on an expert judgment from the KAI.Based on the results of the QSPM analysis, the strategy chosen is ST Strategy which has the largest TAS value and is a strategy that fits the resources and capabilities of KAI in the Bandung operational area.

b) Recommendation
The strategy recommendation that fits the KAI resources and capability is the ST strategy which consist of Implementing Social Marketing that shows the benefits of using KAI for the society & environment, Improve the quality of the services to increase value, and Attractive promotions only available for a new member.In the Implementing Social Marketing strategy, starting in August the first week for all forms of program preparation, then it can only be carried out in November and is scheduled to routinely evaluate the program every 3 months.The Improve the quality of the services to increase value strategy starts in August for all forms of preparation and the new strategy can be implemented in December with a routine evaluation schedule every 2 months.The last strategy, namely Attractive promotions only available for a new member, began to be prepared in September and could only be implemented in January 2023 with a routine evaluation schedule every 2 months.Each of these proposed strategies has an objective that must be achieved, the first strategy has an objective to increase the number of passengers, the second strategy has an objective to increase customer satisfaction and loyalty and the third strategy has an objective to increase the number of KAI membership members.
that prioritizes passenger comfort, safety, and security.Along with the dynamics of the business world and the expanding market needs, KAI is now organizing various supporting business operations using its resources.PT.KAI's vision is to become Indonesia's solution for the best transportation ecosystem, with the mission to provide a safe, efficient, digitalbased, and fast-growing transportation system to meet the customer's needs, develop an integrated mass transportation solution through investments in human resources, infrastructure, and technology, and To fully support national's development through partnerships with stakeholders, including the development of important transportation-related to infrastructure.b)Business UnitPT.KAI business units are organized into numerous business segments, which generate income for the company.The business segments are rail transportation, passenger transportation, cargo transportation, non-transportation revenue, and government subsidy consisting of PSO, IMO, and Pioneers.Passenger transportation by train, comprises long-distance, medium distance, and shortdistance routes.Long-distance passenger transportation services are classified as executive, business, or economic.Train tickets can be purchased by using the KAI Access app, the kai.id website, and other approved ticket purchasing methods.Freight transportation includes coal as well as another mode of transportation such as cement, gasoline, container, bulk and farm, general cargo, and BHP.KAI is continuing to investigate the possibility of a non-transport business unit by maximizing asset value addition.Commercialization of the Company's assets, such as land, buildings, and other assets, is used to raise the company revenue.

Figure 1 . 1
Figure 1. 1 Number of KAI Passengers Daop 2 Bandung regulations during the 2022 Eid al-Fitr holiday, the number of ticket sales was still far from the ticket sales before the Covid-19 pandemic.• Porter's 5 Forces: Porter's five forces analysis is a model that is widely used to define the company strategy by identifying an industry's structure.This framework can be used in any sector of the economy in order to gain a better understanding of the industry's competitiveness and allows the company to position itself in the industry and change its business strategy to anticipate the industry's weaknesses while capitalizing on the company's strengths.The findings obtained from Porter's 5 Forces analysis are that there are 3 potential threats that have the potential to have an impact on KAI.The first threat is the high bargaining power of buyers due to the similarities with the prices offered by KAI with its indirect competitors which is travel and bus.The second threat is the high threat of substitute products or services due to indirect competitors that have substitute transportation services, including air transportation modes, namely airplanes, and other land transportation modes, namely buses & travel.

Figure 2 . 1 ISSN
Figure 2.1 Conceptual Framework of Customer Analysis Source: Researcher Analysis,2022

2
Improve the quality of the services to increase value (S.2, S.3, T.2) ST.3 Attractive promos only available for a new member (S.4,T.3) WT.1 Differentiation strategy that focuses on customer experience (W.1, T.1) WT.2 Maximizing public relations and customer loyalty programs (W.2, T.2, T.4) WT.3 Add variety of sales promotion that have not done by competitors (W.3, T.3) , namely Implementing Social Marketing that shows the benefits of using KAI for the society & environment, Improve the quality of the services to increase value, and Attractive promotions only available for a new member.

Table 3 . 2 .
List of Alternative Strategy

Table 3 . 3 .
The Quantitative Strategic Planning Matrix of KAI